The development of cloud technologies in Russia. New reality: vectors of development and major problems

We are continuing a series of articles about the Cloud Technology Forum in Russia , where on June 23, 2016, leading industry experts, business representatives, relevant ministries and departments with different points of view, but who came together to discuss the most relevant, met. industry problems and ways to solve them.

Today's article will tell about what was discussed during the first plenary session - “The development of cloud technologies in Russia. New reality: vectors of development and major problems. Cloud Storage for Business: Risks and Opportunities ”, the conclusions reached by its participants and how they see the future of cloud services. We hope you will be interested.
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Participants:

Discussion moderator, Nikita Tsaplin , RUVDS Managing Partner
Tony Yan , Head of Corporate Clients HUAWEI
Andrey Listopad , Head of Cloud Projects Development Department, Karavan Company
Alexey Khoroshilov , CEO, UltraVDS
Ilya Shkatulov , founder, Transstromservice
Roman Fedorov , CEO, Coworking, 14
Dmitry Krasnov , Head of the Information Technology Department of JSCIB Education
Lada Kobkina , Broker Business Project Manager, BCS Company




Briefly introducing the speakers, the moderator Nikita Tsaplin, RUVDS Managing Partner, opened the discussion:

- Dear colleagues, I would like to open the first plenary session “Development of cloud technologies in Russia. New reality, vector of development and major problems. ” As I said at the introductory remarks, the main trend of changes in the policy of companies with respect to information technology is the refusal to maintain the company's traditional corporate infrastructure. In March, the largest US bank JP Morgan announced its readiness to transfer part of its services to public cloud. In April, the same bank published a fairly large-scale report in which it reported that large companies are increasingly transferring corporate load data to public clouds. Accelerated transition to the clouds and the growing demand for cloud services signals a change in the information policy paradigm at enterprises, representing a serious threat to traditional suppliers of IT solutions. The findings of the report are based on the results of a survey of more than two hundred IT directors of companies with an annual budget of $ 600 million per year. Thus, the cumulative budget of the companies participating in the report is over $ 120 billion. Based on the findings of the report, the bank states that the increase in costs for IT budgets in these companies has decreased from 2-x to 4-x times, and for companies whose IT budget is over $ 2 billion per year, this growth has decreased even more. Thus, one can observe a very rapid transition of large corporate workloads to cloud solutions. According to the forecasts of this report, in the next 5 years from 40% to 50% of corporate loads will be concentrated in cloud projects, while now this figure is at 15%. Russia also does not lag behind world trends. During the working visit of German Gref to Silicon Valley, it was announced that Sberbank was ready to transfer part of corporate workloads to public cloud due to data center overload in Skolkovo. In Russia, this trend has long embraced the global transition from CAPEX to OPEX, this trend has been actively developing as cloud technologies evolve, because they were the main driver of this process. Until recently, this trend was relevant only for customers considering for themselves the possibility of using IT as a service, while other companies sought to create their own structure, they continued to do this, but modern financial realities have slightly corrected this process. The created structure turned out to be very difficult for the budgets of companies of different scale, and the more the budget was, the more the actual result of the current economic situation affected the state of IT infrastructure. In fact, companies are faced with the inability to maintain the current structure and rapidly aging equipment. Companies, even those with a traditional approach, have once again turned to the use of cloud technologies. We wanted to discuss this process with the participants of the round table. Is the IAAS services sector in Russia and structural services ready to take on board all those who are actually in distress due to the fact that they are unable to support structures, and these budgets are now drastically reduced? Are there any mechanisms for settling the market for these services, are the risks manageable under current legislation when moving to the cloud. I would like to discuss all these and many other issues with the participants of our plenary session.

- So, we will start with the first question, which will be addressed to Tony. What do you think is the reasonability of processing and storing data in Public Cloud in the first place?



Tony Yan, head of corporate clients department at HUAWEI:

- In fact, I specifically asked the IT people of our company, because we have a very large team around the world, what services, how are we now moving, public or private? We have the opportunity to help other organizations to build their own seemingly the same, but I was told the following: We even as organizations that have these opportunities still need us for comfortable and convenient work, we still transfer certain data, for example, our data between us with Our outsourcing partners who serve us, this part of the data on the public cloud. To a massive amount of data exchange and happening. Or we transfer, among other things, we have a b2c business, respectively, almost all of the information concerns a b2c business, we also transferred it to a public cloud. We also transferred certain similar office services. Because in this case it gives a certain economic fact and convenience. We still have our own resource for this service, in parallel, of course, today business information is kept in our hands in a private cloud and in fact it is a fact in the world market, not only public or private, mixed, and most likely with the current situation in Russia it’s one of the best options, in fact. I would also like to hear your opinion, because everyone has their own kitchen, their own characteristics.

Nikita Tsaplin (Moderator): - It’s a kind of a combined solution, because not all the data can be transferred to the cloud now, which may be contrary to the security policies of various companies and banks. I would like to ask Dmitriy how far is transfer to public cloud acceptable for banking institutions like yours?



Dmitry Krasnov, Head of the Information Technology Department of JSCB “Education” JSC:

- Regarding the transfer to the cloud, the law allows it to do. Here is the question of trust in the partner, how he protects this data. There are no problems from the point of view of legislation in our sphere, the weight is solved by contractual relations, and then the question arises how to interact with the one to whom we give our data. When I have the data, I understand everything, what to do, I have experts, and all methods of solving problems are known. When the data goes to third parties, there are really small costs in relation to customers, the fact that we transmit this data, and the fact that if suddenly some kind of inaccessibility needs to be dialed to the supplier and find out the problem. Another problem that exists is that we, as a financial institution, are not engaged in software development, and what Tony says about the ready infrastructure, software developers who provide us with various solutions, they do not really want to take responsibility for the work of their software in some kind of third data center. I have a problem of interaction of three firms. When some say one thing, others say another, and I suffer because of this, respectively. Therefore, I need a turnkey solution from the vendor. That is, your infrastructure is beautiful, on the slides it seems to me that it works well. Those services that we develop independently, they deserve to be published in the cloud and I do not see any problems with this. Even more I want to say that the cloud we built 5 years ago is now working on the verge, for some time we will survive, but we will naturally transfer to some third-party data centers, because the maintenance of our own data center is very expensive . Here there is a problem with the provision of power, redundancy, to build a fault-tolerant, experts are the same. It is much more profitable to place it all in the cloud.

Nikita Tsaplin (Moderator): - But you say that when choosing a provider it is rather difficult to trust him, and what factors would you first of all pay attention to when choosing a provider? Are there any possible criteria?

Dmitry Krasnov: - Yes, of course. The first is compliance with the laws. If personal data is being processed, we will discuss this at the next session, it requires certain licenses and requirements. The second, on account of the quality of the service. Accordingly, the first we will not go to the cloud to a company that is just starting. Naturally need some experience. Let it be not big, let it be from other smaller ones, because unlike our databases and other databases, it has the risk that our data will be stolen, but that they will be changed. Because it is financial information and here we are responsible to our customers with our wallet. That is, it’s not so scary for me if my data is gone, it’s certainly not important, but it’s much worse if they are changed and I don’t know about it. The data that is stored in the bank have such a role that their change quickly turns into money. Therefore, reliability and safety is the most important.

Nikita Tsaplin (Moderator): - There is probably some problem in this area that there is no regulation, that is, in fact, apart from some basic licenses of Roskomnadzor and some additional ones for personal data transactions, market regulation in fact absent. That is, you have to find out about the quality of services upon their provision.

Dmitry Krasnov: - Yes, of course. Of course, I don’t know your business sphere, but maybe you also have some audit checks, some conclusions that you meet certain standards.

Nikita Tsaplin (Moderator): - Well, in fact, there are no such things that regulators give an objective assessment of the quality of services in this area, unfortunately, no, and I think the representatives of hosting companies that are sitting here they know the famous example CloudMouse provider disappeared along with the data. That is, in fact, choosing a provider, the user is faced with the problem that he chooses a cat in a bear, because apart from the site and the license of Roskomnadzor, which in principle is basic for everyone, there are no criteria by which it would be possible to distinguish a good provider from a bad one. . In principle, it’s probably true that market participants may think about creating a kind of self-regulating organization that would control some quality of services, because in fact anyone can open a website on the Internet and either resell the services of other providers, or have to the extent that he has one computer in the house, to distribute these cloud solutions.

Nikita Tsaplin (Moderator): - Dmitry, what is the reason for the transfer of their services by banks to public depositories? This is how it became known that Sberbank began to think about such a process, following the example of the American bank JPMorgan. How do you think? Here the question is primarily cost optimization or a tribute to the technological fashion.

Dmitry Krasnov: - Of course, the issue of cost optimization is always the main one, and all these costs, they are very large for buying licenses, are very expensive to buy, and most importantly, they are specialists in servicing such server companies, they are hard to find. Having only one specialist, we will not be able to cover all the risks, because the specialist needs to go on vacation, you need two already and it is expensive enough to contain everything. I think about manufacturability is not in question now, we are still looking from the point of view of economy.

Nikita Tsaplin (Moderator): - As far as I know, your bank has started transferring data to a public cloud. What problems did you encounter on this path, what can you advise to representatives of other banks, perhaps?

Dmitry Krasnov: - The main problem is the skepticism of the leadership that we transfer our data to some third parties. That is, banks are quite conservative and if the IT director presents it as “we give our data to some third parties,” then of course it will be “No”. And if it is presented from the point of view of reliability and the fact that this is much better than this data is somewhere in our server room, than it goes to someone, to third parties. That is, third parties, your company, it must ensure the security of this data. Here is the issue of encryption and quality. If you can prove that we get a much better service, then yes, there will be agreement. If, of course, to present it as a third party, and our data will lie openly, it certainly will be “No.” As for those who store data in the clear, this of course is also a risk.

Nikita Tsaplin (Moderator): - Do you mean the open view is public cloud?

Dmitry Krasnov: - Yes, a file system that is accessible to everyone else. Now encryption algorithms are quite simple and almost all server platforms support them and do not include them just lazy.

Nikita Tsaplin (Moderator): - Have you encountered any problems during the transfer process that you could not overcome? That is, you would like to move some service, but it did not work out for some number of reasons.

Dmitry Krasnov: - Yes, as I said before, we are bound by contractual obligations to vendors. That is, their software should work on our equipment. As soon as you come to them and ask them to ensure that they work on other equipment, they do not willingly conclude contracts and generally make contact. That is, here I have a certain Wender-lok arises.

Nikita Tsaplin (Moderator): - And now we will forward this question to the representative of the vendor who is here. Andrew, how do you offer your clients to solve such problems?



Andrey Listopad, Head of Cloud Projects Development Department, Karavan Company:

- In fact, it is worth starting here with the fact that if we compare our services that are available in Russia with services that are available throughout the world, with the same Amazon, rexspace, and so on, I am afraid that we do not have a similar analogue in Russia. The closest analogues are probably Yandex and Mailru, but mostly they provide slightly different services. It is very difficult for me to assume that any of the players on the Russian market could withstand at least part of the load of Sberbank, precisely because we in Russia do not have such an infrastructure that would instantly scale to the tasks that can be set. If we talk specifically about our company and about the tasks that we solve, the situation is definitely changing, companies that were skeptical about the clouds 5-7 years ago are now treated more adequately, more understandingly. They know what procedures to pursue, what they want to get, so now it’s easier to work. We notice that even state-owned companies are starting to look more and more at cloud services. We receive requests from Min Communications, from the Moscow government for cloud solutions. But it concerns requests. If we touch upon the realities, then, as a rule, customers solve the problems of transferring themselves, to be honest, because to some extent we lack the competence to transfer databases, work with databases, set up databases. But we are building relationships with partners who specialize in working with similar services. We work with companies that, respectively, we have a trilateral agreement between the customer, the outsourcing company and we as infrastructure providers and it solves the problem, it solves the problem of interaction, it solves the problem of customer expectations and ultimately plays on the quality of service. I can give an example, if we assume 5 years ago it seemed insane, now we are working on a project to transfer the infrastructure of the online store of a telecom operator from the top 4 Russian mobile service providers. We are negotiating to transfer the billing of the operator of the top 4 namely fixed line. Everything flows, everything changes, and we grow, and the maturity of the company as providers and vendors as well as customers grows, everything changes.

Nikita Tsaplin (Moderator): - Alexey, how could you answer this question? How do you propose to clients to solve such problems, which Dmitry outlined, in terms of integration directly? The problem is that, for example, a bank or an organization comes to the vendor and says that our software works on our equipment, and the issue of integrating it into some other equipment is unclear.



Alexey Khoroshilov, CEO, UltraVDS:

“The recommendations of the vendors, of course, have not been canceled, and the most important thing here is not afraid to try, because the service that the vendor will deliver is no different from what any flexible provider can offer. That is, a virtual system or a physical one, for most software, does not matter and the recommendations on paper are informational and most software is easy to carry around anyway. You can only face some specific problems, as Tony noted in his report that with virtualization there is still a change and the speed of access to data, both to RAM, and to processors and disks, and not all databases are very few, but not all, can easily be exported.

Nikita Tsaplin (Moderator): - Alexey, but as far as providers are flexible when working with such customers, it's no secret that this is not a convenient task for a retail provider. Easier to provide some typical service. Such clients may not be needed by many providers, it is easier to collect more standard ones than to integrate some companies for quite a long time, while their volumes will not exceed, for example, retail flow.

Alexey Khoroshilov: - Yes, I agree. You can try to negotiate for a whole year, try to integrate, and eventually get a refusal and a penny from this client, but most of it, the smaller the company, the more flexible it is, the easier it will be to adapt to a certain client. Amazon, OVH - , . - , . , , , . « » , , RUVDS .

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