Is Russia ready for a future without Microsoft?
Introduction:
Is Russia ready for a future without Microsoft? The dominance of Microsoft’s software and technology solutions in Russia has been a longstanding reality. However, recent geopolitical tensions and concerns over data security have prompted discussions about the country’s readiness for a future without Microsoft.
In this blog post, we will explore Russia’s current landscape, its efforts to reduce dependence on foreign technology, and the challenges and opportunities it faces in transitioning away from Microsoft.
Following Russia’s invasion of Ukraine in February 2022, a set of sanctions were imposed that prompted many major companies to consider their future in the country.
As one of the world’s richest countries in terms of natural resources and a population of more than 140 million, Russia has long been considered attractive to global companies from most sectors.
Yale University School of Management.
But the ethical questions now are about staying in Russia and the skyrocketing costs of doing business there, prompting more than 1,000 companies to exit the country, according to the CEO Leadership Institute at Yale University School of Management.
On March 4, 2022, Microsoft announced that it would suspend new sales in Russia, and “we are coordinating with the governments of the United States, the European Union, and the United Kingdom, and are discontinuing many aspects of our business in Russia in compliance with sanctions decisions,” and added: “Since the start of the war,
“We are acting in the face of vulgar, disruptive, or disruptive Russian actions targeting more than 20 government, IT, and financial sector institutions in Ukraine. We have also acted in the face of cyberattacks targeting numerous additional civilian sites.
” The announcement was later updated to add that Microsoft had already committed $35 million in March 2022 to support humanitarian aid and relief efforts in Ukraine.
Kommersant reported
After this decision, the Russian newspaper Kommersant reported that demand for pirated Windows products was on the rise.
In the period from May to June 2022, the various formulas for how to activate or download Microsoft products increased by 80 percent to 250 percent compared to the numbers before the company’s decision to stop sales.
The number of searches for pirated versions of Excel rose by 650 percent and people continued to download Windows using virtual private network solutions (VPNs), according to Kommersant.
Microsoft has admitted that two hacker groups called Midnight Blizzard or Warm Bear are using Teams chats in phishing attacks against governments, NGOs, and companies.
Microsoft was questioning its business
Microsoft was questioning its business in Russia even before the invasion of Ukraine. In 2021, there were reports that Microsoft Russia had gone through several stages of downsizing and restructuring, associated with a decline in revenue.
The Berlin-based media network, BNE IntelliNews, said that the number of the company’s local employees had been reduced by two-thirds during this process, from a thousand in 2014 to about 300 in 2021. One of the reasons for the decline in Microsoft’s fortunes was Government regulations mandated the purchase of local software solutions instead of “importing” foreign technology.
According to the BNE IntelliNews report, Microsoft’s revenues decreased from $137 million in 2016 to $90 million in 2020.
Russian sanctions and cyber threats
In fact, Microsoft’s problems related to Russian sanctions predate the events of February 2022. The Office of Foreign Assets Control (“OFAC”) in the US Treasury Department announced earlier this year that the company had agreed to pay a fine of about three million dollars, related to… sold “software licenses, activated software licenses, and/or provided related services from servers, systems, and quality in the United States and Ireland to Specially Designated Nationals, Prohibited Persons, and other end users” and that “most apparent violations involved prohibited Russian entities or persons Banned Russians are in the Ukrainian Crimean region.
”Causing more headaches for the company, Microsoft admitted that two hacker groups called Midnight Blizzard or Cozy Bear were using Teams chats in phishing attacks. Against governments, non-governmental organizations and companies.
National Technological Sovereignty:
Development of Domestic Alternatives:
Challenges in Transition:
Collaboration and International Cooperation:
FOR MORE TRENDING NEWS AND ARTICLES JOIN OUR WHATSAPP COMMUNITY
SCAN THE QR CODE OR CLICK ON THE LINK FOR JOINING
Follow this link to join OUR WhatsApp community:
https://chat.whatsapp.com/C3ZvEyVkLFQ5wNdciGixOs
Microsoft Threat
Microsoft Threat Intelligence reported the following: “In this latest activity, the threat actor is using previously compromised Microsoft 356 forks owned by small companies to create new domains that appear as technical support entities.
Using these domains From the compromised code, Midnight Blizzard leverages TIM messages to send scams that attempt to steal credentials from a targeted organization by engaging a user and obtaining approval for multifactor authentication (MFA) prompts.
YOU MAY ALSO LIKE
Mayor London: The UK is the Number 1 “hub” for asset management in the world
Russia remains defiant
Russia’s “import substitution” laws boost the bottom lines for domestic technology companies and recent sanctions provide a major boost in this regard. Rospetek-Astra, which produces a Linux-based operating system called Astra, nearly tripled its revenues, from 2.4 billion rubles in 2021 to 6.5 billion rubles in 2022, and fluctuates.
The price of the dollar against the ruble has increased significantly since February 2022, but at the time of writing this article, the amount of 6.5 billion rubles was equivalent to about 67.5 million dollars.
REUTERSIn August 2023, news circulated that customers received a letter from Microsoft Online Services indicating that current services would not be extended in Russia after September 30 (as of today), Forbes Russia reported.
Microsoft confirmed this information, although it was not clear that the decision was limited to Microsoft 365 licenses only. Currently, the general market’s preference for Microsoft products remains very strong in August 2023. According to Dmitry Miroshnik, an expert in the sector, there are local alternatives, such as Astra, RedOS, and BaseAlt. (BaseAlt), but Microsoft’s share in the operating systems market remained dominant at about 80 percent. When it came to office products, this share recorded about 50 percent to 60 percent.
The operating system “Alt 8 SP” can handle any tasks and can completely replace “Windows”, and it does this practically in the public sector, and in large industries.”
MAXIM ORLOV, HEAD OF PROJECT DEVELOPMENT AT IVK
Igor Mikhailov, a legal expert in the cyber field at the F.A.C.T. (FACT) noted that this is a particularly worrying development for companies in Russia, as it has left their networks vulnerable to attacks.
“Given the very high levels of activity of pro-government groups and politically motivated hackers attacking Russian companies, this situation may accelerate the decision to adopt software to replace Microsoft solutions,” he said.
Is Russia ready for a future without Microsoft?
But the Russian government is showing no signs of concern. The Minister of Digital Transformation, Communications and Media claimed that companies should have planned for this and that Russia “certainly” has solutions that could work for companies.
Minister Maksut Chaadaev said: “Everyone had 18 months to prepare. “Everyone realized that things would get to where they were, and many started switching to Russian Linux-based operating systems.”
Shutterstock
The full implications of this latest move by Microsoft are not yet clear, but many are hopeful that alternative solutions will be available. When sales were first suspended last year, using VPNs was a very simple way to continue using the global giant’s products. Is Russia ready f
or a future without Microsoft?
In an interview with IT News, Roman Militsyn from Astra, a local software producer, said that Microsoft is simply adapting to the situation without intending to take a political stance, and “I think this is just a way to comply with the demands of export restrictions related to US sanctions.” Is Russia ready for a future without Microsoft?
Maxim Orlov, head of the project development department at IVK, a computer manufacturer that supplies the Russian government, said that the Alt 8 SP software installed on the company’s machines can work with the same quality as foreign solutions, and “when We say foreign solutions, the first name that comes to everyone’s mind is probably “Windows”. The operating system “Alt 8 SP” can handle any tasks and can completely replace “Windows”, and it practically does so in the public sector, in industries “The big one.”
Conclusion: Is Russia ready for a future without Microsoft?
FAQ’S
Does Microsoft still work in Russia?
In March of last year, Microsoft halted the sale of its goods and services in Russia and announced that it would “slowly reduce its presence in the country until it is completely gone.” Up to 90% of corporate clients in the nation, according to Forbes Russia, still utilise Microsoft products.
What is the Russian alternative to Microsoft Office?
MyOffice, a productivity programme created by a Russian corporation, will assist African countries in keeping their data within national boundaries. A productivity programme called MyOffice was created to rival Microsoft’s Office 365.
What does Russia use instead of Facebook?
Russian speakers are the ones who most frequently use VK (short for its original name VKontakte; Russian: онтактe, meaning InContact), a Saint Petersburg-based Russian social media and networking website, although it is available in many languages.
I’m Hassan Saeed, a Clinical Psychology graduate deeply engaged in the realms of WordPress, blogging, and technology. I enjoy merging my psychological background with the digital landscape. Let’s connect and explore these exciting intersections!
