Large Russian data center providers are subject to US restrictions
[ad_1]
The US Treasury included in the new sanctions list the largest Russian providers of data processing centers (DPCs), including Rostelecom-DPC, 3data, Oxygen, Miran, the contractor for the construction of the Sbera data center and others. Previously, large-scale sanctions against this segment of the Russian IT market were not introduced. Experts admit that the list was compiled based on contracts between commercial data centers and some sanctioned military-industrial complex enterprises. For market participants themselves, inclusion in the sanctions lists came as a surprise. Many of them purchased Western server equipment and software licenses, but now they may lose this.
The US blocking sanctions imposed on February 23 also affected a number of Russian technology companies; in a press release, the US Treasury Department classified them as “military-industrial IT and software sectors.” The restrictions included commercial data center operators 3data (1.5 thousand racks, according to iKS-Consulting), Oxygen (750 racks), Miran (403 racks), SafeData (13.6 thousand racks; since 2017 belongs to Rostelecom, now its legal entity operates under the brand Rostelecom-DPC), TrustInfo (1.2 thousand racks; Aiteko Group), regional data processing center LLC InfoTech Balakovo (contractor for the construction of data center “Sbera”), “Stack Telecom” (1.4 thousand racks).
In addition to TrustInfo, sanctions were imposed on another asset of Aiteko Group of Companies – Aiteko Engineering, as well as on a number of other integrators and computer vendors: ICL, T1, Inferit (part of Softline Group of Companies). Among the software developers in respect of whom restrictions have been announced are NPO RusBITech and Red Soft (producing the Astra Linux and Red OS operating systems), the developer of information security tools “Security Code”, as well as developers of CAD and engineering systems analysis of Fidesis, InterCAD and Top Systems. The Security Code company told Kommersant that they “prepared in advance” for the sanctions: “Most of the components for hardware are produced in the Russian Federation, and supply chains were worked out and built in advance for the necessary imports.” ICL and Softline declined to comment; T1, 3data, Oxygen, and Miran did not respond. Kommersant sent a request to Rostelecom.
Previously, large-scale sanctions against the Russian data center market were not introduced.
They, like any other US restrictions, will certainly affect the business of companies whose work is dependent on technological equipment from Western countries, Kira Vinokurova, partner at Pen & Paper, is sure: “Its purchase will be complicated, including due to the ban on making payments in dollars. Or data center operators will have to look for more expensive supply methods or alternatives that are not comparable in terms of characteristics.”
In addition, the lawyer admits, a number of foreign partners who use the services of hosting providers in Russia that are subject to sanctions may refuse to cooperate: “If a company operates in many markets, including Western ones, it may have corporate policies according to which she is prohibited from working with sanctioned companies.” In mid-2023, the demand of clients “with Russian roots” for the services of hosting providers in the Russian Federation was growing, while in Europe it was falling (see “Kommersant” dated August 14, 2023). Market participants attributed this to inflated prices for hosting in the European Union and the decline in business activity in the EU.
If we assume that the entire relevant business of Rostelecom-DPC fell under the restrictions, then, according to the leading consultant of iKS-Consulting Stanislav Mirin, “we can talk about 29% of the Russian cloud market in terms of revenue and 46% of the colocation market (rental -places and placement of equipment) by the number of racks.” The expert admits that the sanctions list was compiled on the basis of contracts between these commercial data centers and some sanctioned military-industrial complex enterprises. “The main clients of Russian data centers and cloud providers are Russian companies. It is unlikely that all these connections will be destroyed overnight. But the consequence of the introduction of sanctions will be increasing market closure. Probably, the procedure for holding tenders may change,” he noted.
Kommersant’s interlocutor in the data center market was surprised by the inclusion in the sanctions lists of private data center providers not associated with the state: “All of the listed companies, except RTK-Data Center, were focused on commercial customers, and not on the public sector, especially the defense sector, while some, for example Oxygen, were able to supply advanced Western equipment, and also offered their customers licenses for the services of departed companies. For example, SAP – for them getting on the sanctions list would be a serious blow.” He believes that either the inclusion of companies in the sanctions list was a “carpet”, or contracts for hosting the state or defense sector of the Russian Federation were traced. The Russian data center market at the end of 2023 amounted to about 70 thousand racks and 114 billion rubles, according to preliminary estimates from iKS-Consulting.
[ad_2]
Source link
