Microsoft Corporation (MSFT) Dumped After Putin Calls For Self-Sufficiency

Microsoft stock

Microsoft Corporation ’s technology is being ditched by Moscow after Vladimir Putin – President of Russia – urged local companies and state officials to decrease their reliance on foreign tech. As per Bloomberg, the capital of Russia is replacing Microsoft Outlook and Microsoft Exchange with email systems developed by state-run carrier Rostelecom PJSC on 6,000 computers.

Moscow dumps Microsoft

In answer to Putin’s call for Russia’s authorities to decrease dependence on foreign tech amid tensions with EU and the U.S., the capital of Russia will replace the programs of Microsoft Corporation ’s with domestic software on thousands of computers.

Microsoft Corporation (MSFT)

On Tuesday, Artem Yermolaev, head of information technology for Moscow, told reporters that initially, the company will replace Microsoft Outlook and Microsoft’s Exchange Server 6,000 computers with an e-mail system. Also, Russia’s capital may consider replacing Microsoft Office and Windows on around 600,000 devices by installing software developed by Russia’s New Cloud Technologies.

Communications Minister Nikolay Nikiforov told reporters, “We want the money of taxpayers and state-run firms to be primarily spent on local software.” Government entities including General Prosecutor’s Office, Audit Chamber and the Federal Anti-Monopoly Service will be strengthening their grip from 2017 on state institutions that are not switching to domestic alternatives, the minister said.

Around 20 billion rubles ($295m) is spent by Government entities yearly on foreign software. Nikiforov’s ministry has made a list of around 2,000 Russian software products that state-run companies should use in place of products from worldwide vendors.

Yermolaev also said that for local software and city surveillance cameras, the government of Moscow has switched to Cisco Systems technology. In addition, as per Digital Russia, Moscow’s regional government and State media company Rossiya Segodnya switched to open-code PostgreSQL software from Oracle database systems.

Silicon Valley losing – thanks to political tensions

After the United States and the European Union enacted sessions against Russia for its illegal annexation of Crimea, the country started pushing for technological self-sufficiency. Both the countries are big enough to survive without the other, but there is one clear loser here: the Silicon Valley, notes Quartz.

The sanctions by the US and EU compelled many western companies to cut ties with huge corporations in Russia. This restricts companies like Oracle and Microsoft out of the domestic software market, which had a value of $3bn in 2015. Moreover, German Klimenko – Putin’s Internet czar – proposed heavy taxes, including 18% on app store purchases for the U.S. tech firm like Google and Apple, to assist Russian competitors like Mail.ru Group, and Yandex NV.

The United States is just as unwelcoming to Russia. Hillary Clinton – at the US presidential debate on Sept. 26 – held Russia responsible for an increasing number of cyber-attacks on the US, including the hack of the Democratic National Committee. Clinton said they are not going to sit idly and permit state actors to go after their information, notes Quartz.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.


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