OS country integrator – Kommersant

OS country integrator - Kommersant

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Softline is developing its own operating system (OS) for PCs and laptops based on the Linux-based technology of the National Support and Development Center acquired in 2021. According to Kommersant, the company expects to supply its solution to both the consumer sector and the public sector. However, market participants note that there are already enough Russian operating systems on the market, and updating the necessary functionality will require significant investments from Softline, which will be difficult to recoup.

Sources of “Kommersant” in the IT market said that the system integrator Softline is working on creating its own OS for computers and laptops. According to Kommersant, Softline plans to develop an OS based on technology acquired in 2021 from the National Center for Support and Development (NTsPR), which developed the MSVSfera family of software products (Mobile System of the Armed Forces) based on Linux. The volume of the transaction amounted to $10 million, CNews reported. The company itself did not comment on the project.

The head of the board of directors of Basalt SPO, Alexei Smirnov, knows about Softline’s plans to bring its operating system to the market. According to him, the company “recently actively began to move away from the status of an integrator and distributor and invests in software development, so the OS will not be the only product of Softline.”

Until 2022, Softline was one of the largest distributors of Microsoft, but with the departure of Western vendors from the Russian Federation, it refocused on domestic technologies. In June, Softline announced plans to divide the business into Russian and international, the procedure was completed in October (see Kommersant dated October 20, 2022).

In Russia, the Softline Group of Companies remained, which passed 100% under the control of closed-end mutual funds under the control of Tethys Capital Management Company. The founder of the company, Igor Borovikov, ceased to be its beneficiary this spring (see Kommersant dated April 6). Softline’s international business changed its name to Noventiq and in February announced a merger with the American Corner Growth Acquisition Corp.

According to the financial statements of Softline Group of Companies published on April 12, in 2022 the company’s turnover exceeded 70.6 billion rubles, net profit reached 6.5 billion rubles. At the same time, the company noted that the turnover on Softline’s own solutions doubled to 6.6 billion rubles.

The development of the Softline OS may be caused by a desire to increase the supply of software and computer equipment to government agencies, says the interlocutor of Kommersant, who is familiar with the project: “The company will use it as a platform for its hardware.” But the previously acquired MSVSfera is an old product without regular updates, which “definitely will require serious improvement and maintenance by the new owners,” warns Kommersant’s interlocutor.

“MSVSfera is based on the WSVS, which, in turn, is based on the American Red Hat,” Alexey Smirnov specified. In his opinion, Softline will need several years to finalize the OS, while already now there are more than sixty OS with advanced functionality in the register of the Ministry of Digital Development. Therefore, the expert believes, “even if Softline has its own hardware, it will take a lot of effort to achieve a significant role in the Russian market.” The cost of bringing such a product to the market can be comparable to the cost of a deal in 2021, according to a Kommersant source in the industry.

The market is highly competitive, mainly Astra Linux and ALT Linux products are in demand, says T1 Holding CEO Igor Kalganov: “Given the high cost and duration of OS development, it will be difficult to compensate for the project costs.” It can be assumed, he adds, that the company plans to attract customers who previously purchased Microsoft solutions through it.

At the same time, the head of NP Russoft, Valentin Makarov, believes that “due to the large base of vendors whose products are sold by Softline, as well as taking into account the wide presence of sales centers around the world, the company can take a significant market share, including friendly countries.”

Tatyana Isakova, Timofey Kornev

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