the developer of the Russian analogue of MS Office became unprofitable in 2023 – Kommersant

The revenue of the New Cloud Technologies (NOT) company, which developed the MyOffice software, in 2023 amounted to about 1.9 billion rubles, which is 43.8% lower than in 2022, reports RBC with reference to the financial statements of NOT.

According to the publication, the company last year suffered a loss of 5.2 billion rubles. instead of 386.5 million rubles. revenue the year before last. A representative of NOT, in a conversation with RBC, linked the decrease in the company’s income with a slowdown in the pace of import substitution of software in 2023. According to him, in 2022 there was a significant increase in transitions to Russian software, but in 2023 this figure decreased by 18.1%.

In addition, according to the publication’s interlocutor, the company’s unprofitability was affected by the lack of funding for the purchase of software from many government and semi-government organizations. The NOT expects that this year budgets for import substitution of software will be allocated. A representative of NOT noted that in the first quarter of 2024 the company recorded an improvement in performance compared to the same period last year. He reported that during the reporting period, sales of MyOffice licenses increased by 126% year-on-year.

According to RBC’s interlocutor, another factor in the company’s large losses is Microsoft’s decision to keep Russian users access to Office. “We hope that Microsoft’s recent notification about the cessation of cloud services will be a good reminder of the need for speedy import substitution,” said a company representative.

On March 15, Softline reported that Microsoft, Amazon and Google would suspend access to cloud products for organizations in Russia from March 20. This decision was made in connection with sanctions that limit the supply of software and other products to Russia. From March 20, Russian companies will not be able to use these products or access the data they contain. On March 18, Softline Vice President Andrey Blagorazumov told Kommersant that the company “through its own channels” received information from Microsoft representatives about a possible postponement of the blocking date to the end of the month.

Read more in the Kommersant FM article. “Microsoft is closing the cloud”.

Erdni Kagaltynov