Shifting Gears: Russian Servers on the Rise
For each foreign server sold, approximately three Russian servers are bought instead. (It implies a trend or pattern of preferred server choices, suggesting a high demand for Russian servers.)
In 2024, electronics manufacturer Fplus reported a staggering 25% increase in the sales of Russian servers compared to the previous year, outpacing foreign sales three to one. This trend is expected to continue, according to Fplus' predictions, with a slight gradual uptick in the use of Russian equipment.
The Russian server market is valuated at around 100-110 billion rubles, accounting for approximately 75% of the total market, which is worth an estimated 151 billion rubles. Approximately 130,000 to 150,000 servers were purchased, with Yadro, "Aquarius", Depo Computers, Kraftway, and Fplus being the top five vendors.
Companies with significant critical infrastructure, such as state-owned corporations, the financial sector, transport, oil and gas sector, and the public sector, are the primary customers for servers. Traditional markets also remain strong for service providers, telecom operators, and data center operators. About 80% of requests are for general-purpose servers, and the demand for alternatives to x86 architecture is insignificant, a representative of the IT holding reported.
Domestic Triumph in Mass Servers
"Marvel-Distribution" attests to the mass market's embrace of import substitution in the realm of mass servers. Lower prices, local service, warranty, and technical support from domestic manufacturers have made domestic solutions more attractive, according to the company. Approximately 25% of the market still prefers Western brands, primarily commercial companies with well-established IT infrastructure based on specific vendors' solutions.
Persistence of Foreign Luxuries
Despite many commercial organizations preferring Russian servers when purchasing new equipment, a lack of understanding about the absence of foreign vendors could deter substantial investments, as indicated by our website's founder of investment company The12 Capital, Dmitry Kozlov. Western brands continue to dominate the AI sector due to their advanced GPU solutions, with domestic producers playing a minor role, acknowledges Fplus. The share of domestic products at the entry level is only 20%, according to OCS.
Wager on Russia
Both Fplus and OCS corroborate that, indeed, up to 75% of sales in 2024 were on Russian servers. However, high-performance and fault-tolerant industries still rely heavily on foreign vendors. The x86 architecture dominates Russian customer preferences, with ARM in a distant second place.
In 2024, the market experienced stable financial growth of around 15%, but a decrease in the quantity of goods sold. Businesses mainly purchased high-performance, costly systems, either for banks, telecom providers, large-scale industries, or state-owned companies. Russian vendors seized this opportunity and aggressively explored the segment of more complex systems in 2024.
The rise in demand and market share of Russian server manufacturers is influenced by several key factors: global supply chain challenges, adaptation to market conditions, expansion of the domestic market, and diversification of supply chains. These factors provide an advantageous environment for Russian server manufacturers to capitalize on the growth of the domestic market.
- In 2024, Russian server manufacturers, including Fplus, are predicted to continue their significant growth, with a slight increase in the use of Russian equipment, according to Fplus' predictions.
- The average Russian server market is valued at around 100-110 billion rubles, with domestic manufacturers such as Yadro, Aquarius, Depo Computers, Kraftway, and Fplus being the top five vendors.
- Interestingly, despite the rising popularity of Russian servers, the share of domestic products at the entry level is only 20%, and Western brands continue to dominate the AI sector due to their advanced GPU solutions.
- As a result of factors like global supply chain challenges, adapting to market conditions, expanding the domestic market, and diversifying supply chains, Russian server manufacturers experienced a significant rise in demand and market share in 2024, capitalizing on the growth of the domestic market.
