Increasing oil prices have contributed majorly to the growth of the IT market in Russia

The IT market in Russia is projected to grow at a CAGR of 16.21% over 2012 to 2016. One of the key factors contributing to the growth of this market centers on the increase in oil prices. The IT market in Russia has also witnessed increased usage of cloud computing. However, the lack of a proper legal framework to control piracy could pose a challenge to the future growth of this market.

Cloud computing is an Internet-based computing service where all the data of end users are stored on a vendor's data center. Cloud-based resources are not only shared by multiple users but are also dynamically re-allocated as per their demand. End users of cloud computing services do not need to invest in infrastructure and other resources. They only need to pay for the services they use, based on a pay-per-subscription model that helps them save on the cost and time of implementation. This also helps end users to focus on their core competencies.

Cloud computing can be divided into IaaS, SaaS, and PaaS. Until recently, people in Russia were not fully aware of the benefits of cloud computing. However, of late, they have started investing in IaaS, which has in turn, led to increased demand for this segment, followed by the demand for SaaS-based solutions. In addition, the investment in public clouds is expected to increase over time depending on the growing awareness among consumers.

Several advantages associated with cost and time has led to cloud computing becoming highly popular among SMEs worldwide. However, SMEs of Russia have not invested much in cloud-based solutions; such companies have started investing into SaaS instead. Therefore, SMEs in Russia are expected to be the major end users for this technology during the forecasted period.

The growth of the IT market in Russia is driven by several factors, one of which is the increase in oil prices. The rise in oil prices is responsible for the stable economy of Russia. Increment in oil prices strengthens the Russian Ruble (RUB), which will further drive the IT spending from various end user segments, contributing to the growth of the market.

However, a major challenge faced by the Russian IT market and one that is curtailing its growth involves the lack of a proper legal framework to control piracy within the country. With most of the IT based software being available in the form of pirated versions, enterprises as well as individuals refrain from purchasing the original software, thereby inhibiting the overall growth of the market.

For further insights, visit IT Market in Russia 2012-2016

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