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The Roscongress Foundation – a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and sporting, public, and cultural events.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

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Infrastructure for the Data Economy: New Opportunities for Cooperation between the Far East and APR
4 September 2019
17:15—18:45
KEY CONCLUSIONS
Both government and business are interested in digitalization

The digital economy, or the data economy, today claims to be an alternative to the commodity orientation of our country's economy. <...> Digital technologies are now widely used and have a very strong impact on various processes, increasing the efficiency of the economy. New markets, new business models are being created — Alexey Galyuzhin, Deputy Director, Digital Economy Projects Department, Ministry of Digital Development, Communications and Mass Media of the Russian Federation.

Private businesses do not need to be pushed into digitalization. Russian business is part of this fairly obvious and irreversible process. All companies, large and small, are interested in digitalization, data arrays, data storage and processing, as well as working with it — Sergey Mytenkov, Vice President, Russian Union of Industrialists and Entrepreneurs (RSPP).

This year, we are 100% switching to BIM design – Building Information Model – up to the very last employee. The Government responds accordingly: on behalf of the President, starting from 1 June this year Glavgosexpertiza accepts project documentation completed under BIM standard — Mikhail Grudinin, President, Giprogor Project City Planning Institute of Spatial Modelling and Development .

The government stimulates data economy development

Government policy is now built around this market and aims to reduce as many administrative or technological barriers as possible, encourage hardware and software import substitution, ensure information security and ultimately increase the companies' competitiveness in the international market. The Ministry of Communications is currently working with the Russian data centre market to develop a number of measures that, in our opinion, could stimulate the development of this market in Russia and lead to the growth of data centres and everything related to it — Alexey Galyuzhin, Deputy Director, Digital Economy Projects Department, Ministry of Digital Development, Communications and Mass Media of the Russian Federation.

With the implementation of the Digital Economy national programme about 80 thousand social facilities in 85 regions of the Russian Federation now will get connected, which will also give an impetus to the development of data processing centres and services associated with it. Secondly, the Digital Economy national programme has clear mechanisms that will stimulate demand from the real economy, i.e. specific enterprises, for the introduction of technologies in their production and business processes, and the government will help with resources and money to implement these projects — Alexey Galyuzhin, Deputy Director, Digital Economy Projects Department, Ministry of Digital Development, Communications and Mass Media of the Russian Federation.

A global trend of localizing personal data

The obvious trend <...> is the localization of data, personal data in the first place. Everybody closes down, everybody tries to save it. It is a trend that cannot be avoided. It is a political trend that the whole world is moving towards — Alexey Galyuzhin, Deputy Director, Digital Economy Projects Department, Ministry of Digital Development, Communications and Mass Media of the Russian Federation.

When we launched the difficult solutions, we had a dream - which was not only ours in fact - that together with Huawei who is our partner we will build four huge hyperclouds in the world and everyone will be happy. And then it all started, and not just in Russia, in fact. Everyone realized that the preservation of personal data is very important. <...> Many countries require that the personal data of their citizens are stored locally on their territory. This has destroyed the model of hyperclouds — Richard Van Vageningen, Senior Vice President of Middle East, Africa and Russia (IMEAR), Orange Business Services.

ISSUES
Companies are reluctant to switch to commercial data processing centres

The model of consumption is developed by companies and corporations fairly well, i.e. they build their own corporate data centres [data processing centres, – Ed.] and do not want to use the commercial infrastructure of data storage and processing centres. <...> We believe that now there is an obvious tendency that says that it is necessary to buy services in the commercial market and use an infrastructure or a platform based on this infrastructure in the form of cloud services — Tatiana Tolmacheva, Managing Partner, iKS-Consulting.

The biggest problem we see today <…> is a large number of corporate data processing centres and their advantages in comparison to commercial ones — Yevgeny Virtser, General Director, INSYSTEMS.

Insufficient investment in building data centres

We are now facing a situation where there is a certain lack of data processing and storage infrastructure in certain regions. The main reason is business: a private investor is not willing to invest in building data centres. This is very long money; this is a long return on investment, and a fairly low margin of investment projects — Tatiana Tolmacheva, Managing Partner, iKS-Consulting.

Accumulating and using the growing amounts of data is difficult

There is a forecast that by 2024 the amount of Russian data will make up 5% of the global volume. What is 5% of the global volume? Everyone has an understanding of what 1 megabyte, or 1 gigabyte is. Not everyone knows what 1 zigabyte is. Russia, which will take 5% of the global volume in 5 years, will reach 9.3 zigabytes according to our forecast. <...> So, we are facing the following questions: where will we store this data? How will we monetize it for the digital economy in Russia? — Zhao Lei, President, Carrier Network Business Group, Huawei Eurasia.

SOLUTIONS
Increased public and private investment in the digital economy

Yakutia is one of these super-commodity regions. We produce a huge number of different commodities, and most of our economy lies the mining segment. At the same time, our strategy is to use these opportunities correctly, to invest the benefits of mining industry in the right way and in 10–15 years to build the second pillar of the non-commodity economy — Afanasiy Savvin, General Director, Sakha Republic Development Corporation.

According to our estimates, about RUB 20 billion will be allocated annually for the development of various information and service systems, platforms for providing or storing public information systems. <...> And we believe that part of the funds that will be invested under digital economy programmes need to be redirected towards the commercial market. So, we are not saying that spending needs to be reduced, but we are saying say that we need an efficient and smart approach to spending — Tatiana Tolmacheva, Managing Partner, iKS-Consulting.

Stimulation companies’ digitalization

If we take a look at Russia, our estimates show there are very few truly digitalized companies, while the growth potential is huge. That is why we as the Ministry will now also stimulate the digital transformation of companies, explain the reasons, and set the performance factor, etc. — Alexey Galyuzhin, Deputy Director, Digital Economy Projects Department, Ministry of Digital Development, Communications and Mass Media of the Russian Federation.

Naturally, the market is maturing at a fast pace, but it is still behind the Western market. <...> And here a wise support from the government, a wise regulation, and creating new market segments will make up for this lag — Valery Shorzhin, Member of the Management Board, Vice President for Cloud and Digital Solutions, MTS.

Attractive conditions for foreign investors

The regulator and the Ministry need to think what else can be done in order to encourage such companies that are ready to invest in Russia. This is not only about them promoting their products, because a lot of companies are ready to promote Russian solutions that are based on their platforms or simply come in conjunction with their solutions. This is very important, because it is a good start <...> and the opportunity not only to be present in the Russian market, but also to enter Western ones — Sergey Mytenkov, Vice President, Russian Union of Industrialists and Entrepreneurs (RSPP).

The material was prepared by the Russian news agency TASS