ISDEF: Russian Software Market to Reach $7 Billion in 2009
ISDEF 2008, the seventh annual Independent Software Developers Forum conference, took place September 26-29 at the Holiday Inn Vinogradovo.
Oct 13, 2008
ISDEF 2008, the seventh annual Independent Software Developers Forum conference, took place September 26-29 at the Holiday Inn Vinogradovo. The conference served as a forum for discussing growth strategies in the software businesses, the challenges of marketing and public relations in the IT sector, and the legal and managerial aspects of operating an IT company. Also, for the first time in ISDEF history, an investment section was held to attract investors to Russian IT projects.
Over 350 managers and owners of software and IT companies from Russia, Ukraine, the Baltic States, the U.S., Germany and France attended the conference. Companies from 20 Russian cities, including Moscow, Saint-Petersburg, Novosibirsk, Perm and Kaliningrad, represented their country.
During the conference, participants discussed questions related to the development of the software market, including startups and strategies for entering established markets, business development tactics and the problems fast-growing companies experience, the managing of human resources and staffing needs in the IT industry, software sales and marketing techniques, and the legal aspects of operating a software company in Russia and abroad. Several leading Russian IT companies presented reports, including 1S, Kaspersky Lab, Ashmanov and Partners, InfoWatch, Famatech, 1S-Bitrix, Alawar Entertainment, Softkey, PROMT, Parallels and others.
The participation of representatives from federal agencies in the section covering government regulation shows the state considers the IT industry one of the key segments of the innovation-based economy of the 21st Century. Specifically, the top managers of four major Russia IT associations (ISDEF, RUSSOFT, NPSS and ICTIA), along with government representatives, attended a roundtable session during the conference. The latter reaffirmed their willingness to cooperate with Russian software developers. Professional IT associations that are in a position to share the opinions of other market participants will play a fundamental role in this process.
The pivotal point of the conference was an investment session attended by over 10 investment funds, including ABRT, AddVenture, Almaz Capital, Apaxys, Intel, Delta Capital, Oradell, ValueTech Advisers, ROSNO Alliance, VTB and Finam, as well as private investors. Unlike traditional theoretical roundtable meetings, this section was focused on reaching practical goals. Investment fund representatives conducted one-on-one negotiations with the top managers of 20 software companies seeking external financing. The companies presented 15 software projects, three Internet ventures and two games.
ISDEF chairman and Alawar CEO Alexander Lyskovsky said investors found the event format compelling. "In the past, we watched a large number of presentations one at a time and then discussed them behind closed doors. This time, banks and investment fund reps were able to talk with presenters and ask questions about revenue projections and general costs -- things not commonly discussed in public. We're sure the new format will help software businesses and investors find each other and reach a point of cooperation more efficiently." Since it can take up to 18 months to close a deal from the initial point of contact between an investor and a prospective partner, ISDEF is unable to report the results of the session at this time.
"Investments in the Russian IT industry last year reached about $1 billion dollars," said Lubov Simonova-Emelyanova, head of IT strategy and business development at FINAM. "The IT market is currently very lucrative in terms of revenue and growth potential. Moving forward, separate sessions at large events will provide the most effective format for interaction and enable investors to review projects, discuss them and make the right decision within a short period of time."
Another highlight of ISDEF 2008 was the presentation of independent research focused on the Russian retail software market. According to experts, the market produced $3.7 billion in
Over 350 managers and owners of software and IT companies from Russia, Ukraine, the Baltic States, the U.S., Germany and France attended the conference. Companies from 20 Russian cities, including Moscow, Saint-Petersburg, Novosibirsk, Perm and Kaliningrad, represented their country.
During the conference, participants discussed questions related to the development of the software market, including startups and strategies for entering established markets, business development tactics and the problems fast-growing companies experience, the managing of human resources and staffing needs in the IT industry, software sales and marketing techniques, and the legal aspects of operating a software company in Russia and abroad. Several leading Russian IT companies presented reports, including 1S, Kaspersky Lab, Ashmanov and Partners, InfoWatch, Famatech, 1S-Bitrix, Alawar Entertainment, Softkey, PROMT, Parallels and others.
The participation of representatives from federal agencies in the section covering government regulation shows the state considers the IT industry one of the key segments of the innovation-based economy of the 21st Century. Specifically, the top managers of four major Russia IT associations (ISDEF, RUSSOFT, NPSS and ICTIA), along with government representatives, attended a roundtable session during the conference. The latter reaffirmed their willingness to cooperate with Russian software developers. Professional IT associations that are in a position to share the opinions of other market participants will play a fundamental role in this process.
The pivotal point of the conference was an investment session attended by over 10 investment funds, including ABRT, AddVenture, Almaz Capital, Apaxys, Intel, Delta Capital, Oradell, ValueTech Advisers, ROSNO Alliance, VTB and Finam, as well as private investors. Unlike traditional theoretical roundtable meetings, this section was focused on reaching practical goals. Investment fund representatives conducted one-on-one negotiations with the top managers of 20 software companies seeking external financing. The companies presented 15 software projects, three Internet ventures and two games.
ISDEF chairman and Alawar CEO Alexander Lyskovsky said investors found the event format compelling. "In the past, we watched a large number of presentations one at a time and then discussed them behind closed doors. This time, banks and investment fund reps were able to talk with presenters and ask questions about revenue projections and general costs -- things not commonly discussed in public. We're sure the new format will help software businesses and investors find each other and reach a point of cooperation more efficiently." Since it can take up to 18 months to close a deal from the initial point of contact between an investor and a prospective partner, ISDEF is unable to report the results of the session at this time.
"Investments in the Russian IT industry last year reached about $1 billion dollars," said Lubov Simonova-Emelyanova, head of IT strategy and business development at FINAM. "The IT market is currently very lucrative in terms of revenue and growth potential. Moving forward, separate sessions at large events will provide the most effective format for interaction and enable investors to review projects, discuss them and make the right decision within a short period of time."
Another highlight of ISDEF 2008 was the presentation of independent research focused on the Russian retail software market. According to experts, the market produced $3.7 billion in