Cloud providers should find lucrative opportunities among Russian enterprises, says Frost

Security concerns and lack of broadband outside cities are deterring cloud adoption

Russian enterprises are starving for cloud computing services, offering a lucrative market for cloud providers, judged market research firm Frost & Sullivan.

While the use of cloud computing in the Russian public sector is already widespread, the enterprise market is underserved. Yet the prospects of flexible, scalable and cost-effective cloud services is an attractive alternative to investing in expensive data centers.

While enterprise demand is strong, there are constraints to cloud computing adoption in Russia.

"Information security and privacy are the major concerns for businesses considering investment in cloud-based solutions. Major Russian companies are not yet ready to store critical information in the cloud, because the responsibility for loss or leakage of commercial information has still not been regulated by law," said Frost & Sullivan consultant Andrey Vyatskikh.

In addition, broadband access is not widely available outside the main Russian cities, which could hamper cloud deployment. And enterprises have concerns about integration of cloud computing with their existing IT infrastructure.

Despite the constraints, Russian cloud vendors have begun offering cloud-based services, such as infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) products through public, private and hybrid clouds.  Russian enterprises are actively using SaaS application such as document creation and interchange; customer relationship management; and content, communication and collaboration systems.

"The continuing adoption of cloud services will have a significant impact on both the public and private sectors in Russia," commented Vyatskikh. "As for the private sector, Russian business is cautiously waiting for more empirical evidence of successful cloud system implementation. As soon as such proof points emerge, demand for cloud services in Russia is likely to increase significantly."

For more:
- see Frost & Sullivan's release

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