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18June 2024

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ICL Group: We are steadily moving towards technological independence

Russian IT companies are actively pursuing import substitution, exploring new areas and aiding the transition of various economic sectors to Russian-made equipment and software. At the conclusion of SPIEF, Evgeny Stepanov, CEO of ICL Group, and Ruslan Vagizov, CEO of ICL Services, shared insights with RIA Novosti about new Russian laptops, operating systems, and software-hardware complexes (SHCs).

- In November, ICL Techno opened a factory in SEZ Innopolis. What have you managed to achieve in the past six months? What are the prospects for the company's development?

- Evgeny Stepanov: Production is running at full speed. The facility has expanded its area, significantly increased the number of conveyor lines, and added new testing zones and test stands. The factory has already produced over a hundred thousand devices. Regarding new production processes, these include surface mounting and selective mounting of electronic boards. Technology adoption is actively underway. We've already manufactured several tens of thousands of boards, but these are still small batches. We are intentionally not rushing to scale up production as the team gains experience with various types of boards, circuit designs, and products, mastering smart automated lines. However, we are now starting to receive significant orders. I believe that by the end of the year we will achieve our projected output capacity, after which we will start expanding production. Our objective is to capture 10% of the Russian computer hardware market. For instance, by the end of the year, we had mastered monitor production. Currently, our monitors, listed in the Ministry of Industry and Trade's registry of domestic equipment, are utilized at customer workstations. We have developed our own memory module and power supply unit for our computers and are now preparing the paperwork to include them in the registry of domestic electronic products. Our personal computers, laptops, and servers were previously registered. In other words, we are continuously moving towards technological independence.

- How extensive is the OSiO laptop retail line?

- We offer about 30 models for retail, in addition to those for our corporate and government clients. These include 14-, 15-, and 16-inch models, ranging from budget options to gaming laptops, with some featuring professional graphics cards and various designs. When it comes to pricing, our laptops in the mass market segment may not be the most budget-friendly, but they are reliable and durable. We also offer more advanced professional models, such as lightweight laptops designed for travel and rugged laptops that can withstand minor falls or spills. These models are highly competitive. We intend to compete in the budget model segment as well, though surpassing Chinese manufacturers will be quite challenging. Nonetheless, we focus heavily on quality, which can give us an advantage against them. We spend significantly less than 1% of the cost of manufactured goods per year on warranty services. We see this as an excellent result and are continually working to improve it. Our testing laboratory is exceptionally robust, with every product undergoing 100% testing. Moreover, we perform initial tests on new product types slated for mass production, which include drop tests, vibration tests, touchpad surface abrasion tests, and USB port durability tests.

- In which economic sectors are ICL's solutions implemented? Also, what are your plans for future development?

- We cater to almost all economic sectors. These include banks and major retailers; historically, we have maintained a strong presence in the education and healthcare sectors. We hold contracts with nearly all of Russia's leading oil and gas companies. Moreover, we focus on developing and producing higher value-added solutions like software and hardware complexes tailored for different industries, aimed at automating specific workplace tasks. Moving forward, we aim to expand our operations, focusing on servers and data storage systems, and developing models with enhanced functionalities. We've also been investing in developing our own network switches for over a year.

- Could you tell us about ICL's healthcare solutions? How and where are they used?

-Many years ago, we developed software that interfaces with a range of diagnostic medical devices, including blood pressure monitors, cardiographs, spirometers, blood analyzers, urine analyzers, ultrasound machines, and X-ray machines. A patient record is generated to compile all diagnostic results; these are packaged and sent to any major hospital, where doctors review them and provide recommendations for patient care. We market these "telemedicine suitcases" to remote regions with sparse medical coverage and large territories, as well as to feldsher-midwife stations. Our largest clients today include regions like the Far North, Nenets Autonomous District, Krasnoyarsk Territory, and Sakhalin Region. These systems have evolved; we have now developed telemedicine carts used in larger medical facilities. They are also used for training students or practicing doctors remotely. This year, we introduced a new telemedicine system for pre-trip or pre-shift health assessments of drivers and workers in hazardous industries where it is dangerous to go to work under influence or, for example, with high blood pressure or fever. The device measures all relevant parameters and sends them to a doctor who determines work eligibility remotely.

- Could you tell us about ICL's partner program? What advantages do your partners gain?

- Currently, our partner network spans over 500 companies nationwide that promote our solutions to their clients. Our partner program is a comprehensive document featuring various partner status levels and corresponding discount scales. It includes bonuses for partners who meet or exceed their sales targets. Additionally, we reimburse partners for their marketing efforts and host annual partner conferences.

- How does your company train young specialists? What career opportunities are open to them?

- Today, the issue of staffing concerns everyone. There is a shortage not only of highly educated specialists with specific competencies but also of skilled laborers. As a result, companies are compelled to train their own workforce. We have long been engaged in this process through collaborations with key universities in Kazan. This involves setting up classrooms and laboratories within university premises and offering internships to students. Our facility includes a training center with permanent instructors who are our employees with a knack and affinity for teaching.

- So people can join your company in one role and then receive support to advance further.

- Yes, they can advance both horizontally by gaining new skills in related areas and vertically up to top management positions. We have instances where individuals started with us straight out of college and reached top management positions within just a few years.

- What software and hardware complexes did you showcase at SPIEF?

- Ruslan Vagizov: We brought our two main SHCs. The first is Astra Infrastructure Starter SHC. It was developed by experts from our joint venture with Astra Group, ICL Astra Services, based on a secure platform for creating a private cloud Astra Infrastructure Cloud, which leverages software products from Astra Group and equipment from ICL Techno. This off-the-shelf product also comes with service support—we arrive on-site to install and configure everything. This ensures an effortless and seamless transition for clients moving to private clouds.

The second SHC is a turnkey managed workplace solution, an off-the-shelf product that addresses all basic business needs. Its core feature is the Colibri-ARM system, which we developed for centralized workplace infrastructure management. It should be noted that users can independently choose the operating system when working with this software and hardware suite.

The main role of SHCs is to simplify the use of Russian software, which currently faces integration challenges. We are dedicated to resolving this issue. We also make integrating software with hardware easier and guarantee its functionality, which is crucial for business-critical applications. This allows our clients to save time on training their staff in these new technologies. We provide a ready-made solution that client specialists use for training and mastering the SHC while we provide ongoing support and guarantee resolution of any incidents that arise.

- Is complete import substitution possible in the SHC sector?

- Developing SHCs is difficult, but our experience proves that it can be done. After extensive market research and identifying the needs of our current clients and other companies, we developed an all-encompassing product. It comprises various client devices made in Russia and Russian software products that are truly essential for users.

In terms of software, we have successfully transitioned entirely to domestic solutions listed in the national software registry. Regarding hardware, the market offers numerous options for domestic equipment. For example, last year our colleagues at ICL Techno opened a manufacturing plant for equipment. We collaborate closely with them to supply equipment for SHCs.

- You mentioned a Russian operating system. How much interest is there in Russian operating systems?

- Client demands vary between government agencies and commercial entities. Government agencies are mandated to switch to Russian software by January 1, 2025. Outside the public sector, the approach is more conservative.

Initially, investments were made in foreign software, which businesses naturally seek to recoup. There is a significant gray area in the licensing market. Some licenses are acquired through parallel imports. Therefore, companies can temporarily maintain operations using foreign software. However, I believe such organizations will become increasingly rare. Many large companies are already well aware of the risks involved, including those related to information security. Currently, the main market players are three domestic operating systems: Astra Linux, RED OS, and Alt OS. It's crucial that the government supports the paradigm where all primary software from the domestic software registry is compatible with these operating systems.

- Government entities in Tatarstan are actively transitioning to the new domestic OS, Astra Linux. Are there any challenges in this process, and how are they being addressed?

- We are quite successfully managing this project together with Tatarstan's Ministry of Digital Development, Communications, and Mass Media. Currently, over 90% of all central government bodies have switched to the Russian OS. However, it has been a challenging journey. There are technical issues, like the absence of certain software equivalents or compatibility with specific hardware types, and not all federal domestic software used in government structures is fully adapted for Astra Linux. Another issue is the absence of drivers for certain devices like printers and scanners.

Nevertheless, these problems are gradually being resolved, and the rate of incompatibility is quickly decreasing. A more significant issue is psychological resistance—many have been using Windows since the 1990s and are unfamiliar with other operating systems. This creates a reluctance towards the new system, despite Astra Linux having a user interface and operational logic very similar to Windows. The workload for system administrators in government agencies overseeing this transition has increased significantly, making it difficult to promptly address all user inquiries.

We are actively working to resolve these issues. Together with IT professionals from government institutions, we provide training, explanations, remote support, and help them adapt to working with Linux and transition users to the new system. We conduct training seminars and organize monthly video conferences with all government institutions to discuss ongoing issues. Additionally, we collaborate with software developers to adapt their products for Astra Linux.

A key factor in our success has been automating many processes using our Colibri-ARM user workstation management system. This product enables centralized control over all automated workstations and device classes within an organization of any scale. Our solution provides visibility into the software installed on any networked computer and facilitates automatic migration from Windows to a domestic OS. Most importantly, our product ensures enhanced security levels. The product packages all applications, ensuring their security is verified by the Ministry of Digital Development, and then securely delivers them to end-users through an application catalog. It's like the AppStore on your phone, only for corporate use. Users only have access to applications permitted based on their role and business function.

- How is the transition to domestic operating systems progressing for Russian government and commercial entities? Who is more proactive—government agencies or businesses?

- At the forum, I spoke with representatives from nine different regions and saw genuine interest on their part. I anticipate that migration to domestic operating systems will be smooth and stable within the public sector, with significant growth expected in the commercial sector as well. Currently, the government and business sectors account for about 70% of the infrastructure software market. While penetration of domestic solutions remains low in business, the absence of reliable alternatives is stimulating growth in this segment. Moreover, due to strategic import substitution of software and OS in the public sector, over 50% of the market now consists of Russian vendor solutions. It's worth noting an initiative by the Ministry of Digital Development to potentially introduce an additional charge for using foreign software. This could encourage more active migration of the commercial sector to Russian operating systems.

Overall, transitioning to a new paradigm and mindset is challenging, but I already see confidence and optimism among our clients and customers. The robust growth of Russian companies allows them to actively invest in software development. Compared to eighteen months ago, there have been substantial improvements in performance, reliability, and quality across several products.

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