Real price dynamics for Russian software: facts and prospects


12/29/2023 23:08

Recently, the media have been actively discussing the allegedly rapid rise in prices for Russian software. Experts argue that price dynamics are explained by objective reasons, such as an increase in demand for developers and the emergence of tasks that require the rapid creation of replacements for outdated products. This led to an increase in developer salaries, which, in turn, caused an increase in the cost of software.

However, allegations of a catastrophic increase in prices for Russian software are excessive. According to market analysis, prices rise moderately – from 5% to 15% per year. In this context, it is worth noting that the real development costs are justified by the high margins of software products. This is reported by News.

There is competition between vendors, and even “overvalued” specialists force companies to invest additionally in more capable colleagues, creating a snowball effect. However, attention to product quality remains a priority despite rising costs.

The emphasis is on competition in the field of software products, where there are few dominant Russian companies. Top players try to keep prices stable, attracting buyers with discounts on wholesale license packages, long-term contracts and support.

The low base effect is explained by the lack of Russian software in some market segments, and comparing the cost with Western analogues is not always correct, given the differences in functionality and class of products.

Speculation about a “mad price increase” contradicts the logic of market development. In 2024, it is expected that rising costs will be compensated by expanding sales volumes and reducing company margins. Vendors will actively use marketing strategies such as discounts and personalized offers for large companies.

However, for long-term market growth, it is necessary to focus on scaling products and occupying foreign markets. It is noted that the IT business is already forming export potential and will be ready to enter foreign markets if there are appropriate agreements at the geopolitical level.

Author Daniil Polonikov

Daniil Sergeevich Polonikov (December 19, 2003, Ivanovo) – student at the Higher School of Economics, freelance correspondent for Pravda.Ru.

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