Public Cloud - Russia

Russia

Revenue in the Public Cloud market is projected to reach US$4,431.00m in 2024.
Software as a Service dominates the market with a projected market volume of US$1,719.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 14.94%, resulting in a market volume of US$8,889.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$60.26 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

Currency

Analyst Opinion

The public cloud market in Russia is experiencing mild growth due to factors such as increasing demand for digital services, rising awareness of cloud technology, and convenience of online solutions. This growth is driven by the sub-markets of Infrastructure, Platform, Software, Business Process, and Desktop as a Service, as they cater to different needs of businesses and individuals. However, challenges such as data privacy concerns and government regulations may impact the market's growth rate in the future.

Customer preferences: As more businesses and organizations in Russia adopt cloud computing, there is a growing demand for public cloud services that can provide secure and reliable data storage and management. This trend is driven by the need for efficient and cost-effective solutions, especially in the face of increasing cyber threats and data privacy concerns. Additionally, the shift towards remote work and virtual collaboration has also accelerated the adoption of public cloud services in the country.

Trends in the market: In Russia, the Public Cloud Market is experiencing a surge in demand for hybrid cloud solutions, as companies seek to balance cost efficiency and security. This trend is expected to continue, with a projected growth of 20% by 2025. Furthermore, there is a growing emphasis on data protection and compliance, leading to the adoption of cloud encryption and security services. These trends signify a shift towards a more comprehensive and secure approach to cloud computing, with potential implications for stakeholders such as cloud service providers and data security companies. As the market evolves, it is crucial for industry players to keep pace with these trends and offer innovative solutions to meet the evolving needs of businesses in Russia.

Local special circumstances: In Russia, the Public Cloud Market is experiencing rapid growth due to the country's increasing adoption of digital technologies and the government's push for digitalization. The market is also influenced by the unique regulatory environment, with strict data protection laws and government control over internet infrastructure. These factors have led to the emergence of local cloud providers and the use of hybrid cloud solutions by businesses. Additionally, cultural factors, such as a preference for locally-based companies, have also influenced market dynamics.

Underlying macroeconomic factors: The Public Cloud Market in Russia is heavily influenced by macroeconomic factors such as government policies and economic stability. The country's strong IT infrastructure and supportive government initiatives have created a conducive environment for the growth of the public cloud market. Moreover, the increasing adoption of cloud-based solutions by businesses, especially in the wake of the COVID-19 pandemic, has further accelerated the market growth. Additionally, the growing demand for data storage and management solutions, along with the rising popularity of Software-as-a-Service (SaaS) models, are also contributing to the growth of the public cloud market in Russia.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.