Microsoft Could Soon Lose Its Grip on Russian Market

Microsoft is set for a huge showdown with Russian technology providers. Russian president has already urged officials of the state and corporations to cut down their consumption of foreign technology. As a result, Moscow is contemplating replacing some products from Microsoft with ones produced locally.

For instance, Microsoft Outlook’s email platform could soon be interchanged with a new system developed by the country’s Rostelecom PJSC. The program, which is set to commence soon, will see more than 6,000 computers redeveloped with the new system. If the new software comes to life, then it means Microsoft‘s Exchange Server will have to shut down.

In an article published by Bloomberg, Moscow’s Head of Information Technology Artem Yermolaev told reporters that more than 600,000 computers and servers would be updated with local software developed by New Cloud Technologies. According to Artem, the software will be tested to determine whether it can be used as a replacement for Windows.

Vladimir Putin has been advocating for increased dependence on local technology citing security threats. Putin is also worried about the reliability of foreign technology, especially in handling crucial national programs and databases. This poses a lot of threat to Microsoft because it controls the largest portion of the country’s $3 billion market. The country is also considering increasing taxes on US products following the US shut down of some Russian companies due to their invasion in 2014. Russian authorities have already put in place plans to ensure government agencies comply with the new directives before the end of 2017.

Cisco Systems Inc. will also feel the heat as a result of the switch. The government in Moscow has already replaced their system used in surveillance cameras with a local competitor. Oracle lost its market share when the government decided to switch from its popular database to an open-code system run by PostgreSQL software produced by local developers. If things go this way, Microsoft will soon find itself sidelined in the Russian market.