The exit of major foreign software vendors such as Oracle, SAP and Microsoft from Russia in response to the February 2022 invasion of Ukraine left many local companies in a tricky situation. They could either continue using unsupported foreign software or find alternative solutions to sustain their IT infrastructure.

One seemingly viable option was open-source software. Unlike proprietary programmes, open-source code lacks formal ownership, which makes it impossible to restrict its usage based on geopolitical tensions. Additionally, open-source code promised cost savings by eliminating high licensing fees charged by traditional vendors.

In the two and a half years since these developments, open-source adoption has gained momentum in Russia. According to a recent study conducted by the Russian research group B1, 83% of companies in the country are either already using or planning to implement open-source solutions. This figure includes nearly all the firms listed in the RBC 500 ranking of Russia's biggest companies from the business daily RBC. Moreover, almost half of these companies claimed that they successfully transitioned to open-source software without losing key functionalities.

However, while open-source seemed like a promising solution, the reality has proven far more complex and costly than initially expected.

 

The hidden costs of open-source solutions

One of the biggest misconceptions about open-source software is that it's "free." While the code itself doesn't carry a price tag, the process of transitioning to and maintaining open-source solutions requires significant resources, as many Russian companies learned the hard way.

Firstly, companies need qualified personnel capable of working with open-source programs. This includes developers and IT staff with expertise in customizing and maintaining the software. For businesses that rely on tailored IT solutions, additional investments in software development are often necessary to adapt open-source systems to their unique needs.

Secondly, while the initial cost of switching to open-source may appear insignificant, companies often find themselves needing to overhaul their IT infrastructure. This can result in substantial expenses. Moreover, while open-source support is technically available for free, it is typically community-driven and not guaranteed. To secure reliable and consistent support, organisations often have to pay for specialised assistance or invest in building in-house expertise.

Another cost factor is related to licensing. Contrary to popular belief, not all open-source software is free for corporate use. Some solutions require licencing fees, particularly for enterprise-grade functionalities. Certification expenses may also apply, further increasing the price tag.

Finally, open-source solutions may lead to significant security challenges. Many open-source projects are developed with limited resources and undergo less serious testing, compared to software from major vendors. As a result, they can introduce vulnerabilities into an organisation’s systems. Companies adopting open-source tools often need to invest heavily in testing, auditing and cybersecurity measures to mitigate these risks, especially when handling sensitive data or meeting compliance standards.

 

Risks of open-source dependencies

In addition to financial costs, reliance on open-source solutions involves strategic risks. Many open-source projects are supported by global organisations or corporations, which may influence how and where the software is used. In some cases, these organisations could restrict access to users in certain countries, including Russia.

The consequences of such actions could be severe, particularly if a company has already integrated a solution into its operations. In a worst-case scenario, businesses could face abrupt bans or newly introduced fees for continued use. For Russian companies, this is a real problem, given the geopolitical tensions that have already disrupted access to foreign proprietary software.

The complexity of licensing also creates challenges. Open-source software is governed by various license types, each with specific terms and conditions. If a project's developers decide to change the licensing model, it could lead to unexpected costs or even legal complications for businesses using the software.

 

Challenges in implementation

The transition to open-source software has not been smooth for many Russian companies. According to the B1 study, 39% of surveyed organisations reported difficulties integrating open-source solutions with their existing IT infrastructure. Additionally, 30% encountered problems with configuration and administration, while 29% found the functionality of open-source tools to be insufficient for their needs.

These challenges are compounded by the urgency with which companies are being pushed to replace foreign software. The Russian government's "import substitution" policy aims to reduce dependence on Western technology. However, rushed implementation efforts often overlook critical factors such as cybersecurity, maintenance, and compatibility with existing systems.

As a result, approximately 25% of companies surveyed by B1 abandoned their open-source initiatives altogether. Common reasons included security vulnerabilities, inadequate functionality and high integration costs. Meanwhile, 14% of businesses delegated the deployment and maintenance of open-source software to third-party providers, while 34% opted to manage the process internally, often with mixed results.

 

The role of domestic solutions

One potential way of addressing these challenges is the development of local software based on open-source code. Several Russian IT companies are working to create domestic alternatives to the foreign software that was previously available. These efforts aim to replicate the functionalities of proprietary programs while ensuring compatibility with Russian regulatory and security requirements.

However, progress in this area has been slow. Developing robust, enterprise-grade software is a complex and resource-intensive process. It could take years for Russian-developed open-source solutions to reach the level of sophistication and reliability required to compete with their Western counterparts.

In addition, the Russian IT sector has faced significant brain drain over the past two and a half years. Many experienced professionals have left the country, creating a talent gap that further hinders the development of local solutions. Without substantial investment in education, training and workforce retention, achieving a breakthrough in this area will remain a daunting challenge.

 

Looking into the future

The departure of foreign software vendors has fundamentally reshaped the Russian IT landscape. While open-source solutions offer a potential path forward, they are not a panacea. Transitioning to open-source software requires careful planning, significant investment, and a willingness to address complex technical and strategic challenges.

For Russian companies, the path to IT independence will likely involve a combination of open-source adoption and the development of domestic alternatives. However, success in these efforts will depend on overcoming current obstacles, including security vulnerabilities, licensing complexities and the shortage of skilled professionals.

In the meantime, businesses must weigh the costs and risks of open-source adoption against the benefits, recognising that there is no one-size-fits-all solution. The journey toward sustainable, independent IT infrastructure will be a long and difficult one – but for many, it is a necessary step in navigating the new realities of the global technology landscape.