12 Jul '21
The cloud services market in Russia is likely to more than double over the next five years, reaching $3.2bn in 2025. The prediction came from TMT Consulting based on the key findings of the consultancy’s recent study.
TMT also believes that Russia’s market for IT cloud services may increase by 25% yoy to $1.5bn this year after expanding by 24% in 2020.
Growth drivers reportedly include employees’ transition to remote work and increased demand for online services during the pandemic. Additionally, substituting less expensive cloud services for enterprise solutions helps companies reduce their spending on IT.
While the use of cloud solutions has increased most rapidly among private companies in the financial and telecommunication sectors, the trend has also been observed among state enterprises, the TMT Consulting report noted.
Software-as-a-service (SaaS) solutions currently comprise about 60% of Russia’s cloud services market and infrastructure-as-a-service (IaaS) has been found to account for about 30%. Although SaaS solutions are expected to dominate the market over the forecast period, the IaaS segment is expected to expand more rapidly and exceed $1.1bn in 2025.