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23 December 2019

Opportunities and Threats of 2020: What Should Your Business Prepare for?

The start of the new decade throws new challenges at businesses. The economic slowdown, stricter legislation, and cyber-attacks — your business will have to deal with these one way or another. New technologies will help address these and other digital-related issues. Oleg Motovilov, the director of a cloud-based service #CloudMTS has told us about how to find growth potential in newly emerging threats.

The start of the new decade throws new challenges at businesses. The economic slowdown, stricter legislation, and cyber-attacks — your business will have to deal with these one way or another. New technologies will help address these and other digital-related issues. Oleg Motovilov, the director of a cloud-based service #CloudMTS has told us about how to find growth potential in newly emerging threats.

Oleg Motovilov. Director of a cloud-bases service provider #CloudMTS

Threat #1: Income Decline and Growth of Competition

Spending will keep growing in 2020: The Ministry of Economic Development has imposed an initiative to increase taxes by 5% for small businesses. At the beginning of 2019, VAT has increased fr om 18% to 20%. Moreover, according to the Higher School of Economics, real incomes of the population keep declining along with growing social vulnerability. The middle class becomes smaller and smaller, resulting in deterioration of competition. 

In these conditions, businesses are in need of optimization of spending and search for additional growth opportunities. The implementation of new technologies will help cut down the costs. We see that the usage of cloud-based services can help lower expenses for up to 25-30% monthly meaning not only saving of the resources but also saving time. Cloud-based models allow to cut down time-to-market to an average of 3-4 months. There are examples where companies build their whole businesses on cloud-based technologies to quickly access the existing markets. This assists in, for example, the quick opening of the new branches without having to spend time on purchasing of equipment and waiting for its delivery.

Threat #2: Stricter Legislation

Changes in legislation often mean additional problems and costs. At the beginning of December, a new personal data protection law was signed in Russia. It imposed significant penalties for the violation of personal data protection: fines for legal entities can go as high as 6 million Russian Rubles for the first-time incident. These risks are relevant for a wide range of companies: from the financial sector, retailers, and industrial firms to housing and communal services — almost everyone who is related to personal data of users and employees. One of the most affordable methods of assuring compliance with legislation is transferring data to a cloud owned by a Russian-based provider. Usually, large-scale providers offer certified segments of their cloud that would free the business from issues related to state regulations.

By placing their IT-systems in such a cloud, companies automatically check out the need to worry about the legal aspects of personal data protection from their to-do list. “We have a specified cloud segment certified by Federal Service for Technical and Export Control and is in accordance with Federal Law number 152”, notes Oleg Motovilov. This model will help businesses to save time and money on building their own infrastructure in accordance with laws and regulations. The saved resources could be sent into new projects, innovation implementation, or promotion.

Threat #3: Improvement of Cyberattacks

Cyber threats are becoming more and more real and influence various business sectors. For example, in 2019 contact details of over 9 million clients of one major service provider have leaked into the internet along with around 500.000 user information of job-services. According to research, our country is a world leader in the number of cyberattacks. However, not all of the businesses have competence or resources to resist such threats. Oleg Motovilov says that the cloud of a large service provider is a well-functioning mechanism which typically has various systems that help protect data from cyberattacks. They also have personal SOC (Security Operation Centers) wh ere the risks are monitored 24/7.

Providers are capable of becoming a real “factory for security” for companies. “To protect IT-resources in the cloud there are several tools such as anti-virus, and other services that resist giving the information to viruses, fishing services, and other threats”, says Oleg Motovilov, “It’s simple since you don’t have to look for additional providers”.

Threat #4: Growing Spending on Data Storage

As proposed by IDC, the global amount of data will exceed 175 zettabytes by 2025. The boost of the amount of data is justified by the growing digitalization of almost every sector of the economy, especially those that are related to the implementation of “internet of things” technologies, big data, and artificial intelligence. For example, now there are over 22 billion “smart” detectors and chips. Let’s imagine an enterprise that decided to automate monitoring of equipment’s condition: its temperature, degree of wear, and energy consumption. Many of the remote detectors will generate and transfer information that will have to be stored and processed somewhere. To manage the existing load, companies will have to increase computing power. It is not cheap, taking into consideration that the prices of IT-equipment are attached to the currency exchange rates. Cloud-based technologies help to solve the issue of data storage without having to spend money on purchasing servers. In other words, you don’t have to buy an airplane if you want to travel — you just buy a ticket. The same applies to the cloud-based servers. Cloud users also note a decrease in operational spending and the full absence of capital costs. Thus, we solve the problem of finding balance when investing money in terms of lack of planning profitability and estimation of long-term goals.

Threat #5: Rapid Development of Technologies

The ability to use new technologies becomes one of the key factors in winning a competitive race. It is important for companies to keep up with technological development and use its’ capabilities to enhance effectiveness. As one of the latest researches suggests, around 20% of entrepreneurs in Russia don’t have the financial capability to implement digital solutions. The current development level of cloud-based services allows, for example, to create big data technologies or make artificial intelligence accessible to a wide range of companies. In the providers’ cloud, you can assess recourses for the training of neural networks for needed dates and volumes that your project requires. Such cloud-based solutions already exist on the Russian market. With them, companies can reduce their spending on calculations associated with video processing, face recognition, or speech technologies. For any possible challenge, there is a specific technological answer, and 2020 will not become an exception.

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