Does Russia need the support of national software developers? Once upon a time in Russia

Yours or someone else's?

For the 15th year, my company is developing software . We sit in St. Petersburg, specialize in corporate content management systems (ECM), the flagship product is STOR-M, on the basis of which electronic archives, electronic libraries and corporate databases of normative and technical documents are built. We, like many Russian companies whose main market is Russia, are selfishly interested in supporting their products at the state level. Today they talk a lot and write about import substitution, support of Russian developers, perhaps at their own expense (tithe from software sales). I want to share my vision of the situation, discuss the issues that have arisen.

How is this done with them?

• Government procurement software. US Experience "Buy American Act and Trade Agreements Act"
• Support for national software developers: China's experience
• Brazilian experience supporting national software developers

But before you protect your own people, you need to define them and install Friend or Foe recognition system.

Curious case

Deciding to take advantage of a convenient moment and curb the wave of increased attention to Russian software, we wrote another press release on the topic of import substitution and, as usual, sent it out and hung it out on all industry sites.
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Some time later, a letter came from a PR specialist from the ELAR company demanding that the product of the German company Saperion AG be removed from the text. The message was duplicated in some forums where our news was posted. In order not to violate the confidentiality of correspondence, here is a copy of the message from the forum of the Federal Archival Agency:


Any misconception is based on lack of or false information. In order not to be mistaken ourselves and not to confuse people, we decided to look into the situation, since the history of the issue is long-standing and the information loop on this product (s) is quite long. It did not take long to find a particularly long time - this is the information from the Government Procurement Portal on procurement from Gazprom Inform Limited Liability Company

We read the title of the purchase: “Provision of services for standard technical support for the SAPERION software of the Electronic Gazprom OAO for the needs of Gazprom Inform LLC” (681 / GInform / 14-2.1-3235 / 26.06.14 / ZEPGOS). The tender documentation expressly states that the Bidder should have the right to distribute and provide technical support from the manufacturer of the basic software SAPERION Saperion AG, show documents confirming the right of the Participant to distribute and provide technical support from the manufacturer of the basic software SAPERION Saperion AG , show Certificates of the Participant’s employees, issued by the manufacturer of the SAPERION software, for the right to perform work on its installation, configuration and technical support.

Comments, as they say, are superfluous. It is clear that the German SAPERION on the Russian market takes place, and the Electronic Archive Corporation, anticipating the current market situation, tried to react in advance by registering the appropriate “domestic” software.

Domestic software, what kind of beast is this?

Before arguing with market partners and defending one’s position, it was necessary to determine the subject area. As it turned out, there are many white spots and unresolved problems and incidents.
The task of supporting a domestic software product, at least during public procurement, was set by the country's leadership to the relevant ministries in early 2012. Now, in connection with the sanctions, some kind of movement has gone. So, in a hurry, professional associations (Russoft, NAIRIT, Otechestvenniy Soft software and others) are proposing to the State Duma various definitions and criteria for “the domestic manufacturer and its software”.

Let's consider the basic concepts proposed for adoption at the legislative level:

1. Russian manufacturer.

but. Russian legal entity - tax resident of the Russian Federation, in which not less than 51 (fifty one) percent of shares in the authorized capital or shares, derivatives and other corporate control instruments belong to:
- to Russian citizens or to a Russian citizen permanently residing in the territory of the Russian Federation and not having dual citizenship,
- Russian Federation,
- to the subject of the Russian Federation,
- Russian municipality,
- Russian public law company (state corporation, state company, etc.),
- Russian state or municipal unitary enterprise and institution; and / or
b. a Russian legal entity, which is a Russian state or municipal unitary enterprise and institution, a Russian public law company (state corporation, state company, and so on); and / or
at. Russian Federation, subject of the Russian Federation, Russian municipality; and / or
a natural person - a citizen and tax resident of the Russian Federation permanently residing in the territory of the Russian Federation and not having dual citizenship; and / or
e. an individual is a citizen and tax resident of the Russian Federation and an individual entrepreneur who permanently resides in the territory of the Russian Federation and does not have dual citizenship ”;

2. Russian IT product

Exclusive rights worldwide and for the whole period belong to the Russian manufacturer (see above). The product does not contain components that require licensing fees to foreign companies or their subsidiaries registered in the territory of the Russian Federation.
Source - Russoft Association website www.russoft.ru/letter.pdf

My opinion

- Total import substitution is bad , competition must take place. The consumer must have a wide selection. Someone loves AvtoVAZ products, and someone prefers and has the opportunity to buy a “German” as it should be with software.
- The lack of strong competitors weakens the developer and slows the development of the market. There is no need to run, no one to catch up and overtake. I am grateful to my foreign and Russian competitors. Some of us are taught: so, with EMC Documentum, we have a joint academic program: a course in “Corporate Content Management (ECM)”, which I read to bachelors and masters in the department of automation and management processes at LETI SPbETU. I have not yet met more than one Russian ECM solutions provider for a more comprehensive training course. I told about this in my article “ How an electronic document flow is taught in a technical university ”. Other competitors show where to dig and where the fish are.
- Support for public procurement of national development is needed . I am sure that the product of my company is not worse than better-promoted foreign ones, and we confirm this not only with press releases, but also with realized projects.

Sailors have questions

How do you think:

1. Will domestic companies be considered that, in order to protect their business, have moved their assets abroad?
2. Will a registry of domestic software products be created in the sectoral departments? How would this happen?
3. How will companies prove the “domesticity” of the delivered decision and who will make the appropriate decision?
4. How will companies prove the “non-domesticity” of competitive solutions, as in our case with Saperion? Is it possible to appeal to the substantial processing of the original foreign software to determine the country of origin, as is the case with goods?
5. What if the company used a small paid foreign library or a proprietary DBMS in developing its software?
6. Will the introduction of appropriate amendments to laws that reinforce the support of domestic IT manufacturers in the procurement of goods, works, or services (without a revision that has already taken place) become a driver for the development of domestic software?
7. And the last thing I wanted to hear, colleagues. What product do you release? Are you ready to replace them with any foreign analogue and do you need support for this (state, business, someone else)?

Like all the past 15 years, I’m used to relying on myself, colleagues, partners and clients and not really hoping for state help, but if she comes, she would like it to be real, effective and timely.