In today's world, where global events and geopolitical changes have a significant impact on all areas of business, the hosting industry is not left behind. In this interview, ATLEX CEO Michael Holopov and Anna Nikulina discuss how sanctions and the quest for digital sovereignty have changed the demand for hosting services in Russia and Europe. They look at how companies are adapting to new challenges, what strategies help them remain resilient, and what customers are demanding in a changing market.
Anna Nikulina: Good afternoon Michael, thank you for taking the time for this conversation. Today we are going to discuss how global events affect the hosting industry. Let's start with the main thing: how do you think sanctions and the course towards digital sovereignty have changed the demand for hosting services in Russia and Europe?
Michael Holopov: Good afternoon Anna, thank you for your question. The last few years have indeed been a turning point. On the one hand, the demand for local IT solutions has grown dramatically in Russia. Many companies, especially in the public sector and large businesses, have become more active in moving data to Russian data centers due to regulatory requirements and the desire to secure the infrastructure. In Europe, on the contrary, we see caution: some clients are afraid to work with Russian providers, despite the fact that our European servers are physically located in the Czech Republic and are fully GDPR-compliant.
So geopolitics has split the market into two streams?
To some extent, yes. But there is also a general trend — a demand for flexibility. For example, Russian startups that enter the international market often choose hybrid solutions: they store the database in Russia, and use European servers to speed up the work of a foreign audience. This allows them to comply with regulatory norms and optimize costs at the same time.
How are companies adapting to these changes? What strategies help to remain sustainable?
The first is diversification. You can expand the pool of partners in Asia and the CIS to reduce dependence on Western technologies. For example, test equipment with Russian Elbrus processors for part of the servers. The second thing is investment in security. Obtaining the FSTEC certificate, in particular, is important for working with government customers. And the third is strengthening customer support. As a concrete example, we can allocate and launch a service that helps businesses to quickly migrate from foreign platforms to our infrastructure. For comparison, in 2023 there were about 40% more such requests than in the previous year.
What is the situation with the European direction? Do sanctions prevent you from competing with local players?
Of course, competition is fierce. But here we can bet on two advantages: price and transparency. If everything is clear with price wars, it is possible to guarantee European clients that their data in European data centers are not subject to the jurisdiction of Russian authorities under the terms of the contract. By the way, after the tightening of sanctions in 2022, it makes sense for many people to consider the option of managing European assets through subsidiaries, for example, in Turkey, in order to minimize risks.
Digital sovereignty is not just about data localization. What other requirements do customers have?
That's right. Clients now ask more often about the supply chain: who the manufacturer of the equipment is, what software is used, where the owner of the servers is registered. For example, one of our key clients asked us to completely exclude equipment from American brands. We had to build solutions based solely on Chinese and Russian equipment. There is also a growing demand for system administration services with deep customization for specific standards, for example, for the Federal Law 152 on personal data.
Lastly: what advice would you give to a business choosing a hosting provider in the current climate?
Look not only at the price tag, but also at the adaptability of the company. It is important that the provider has a clear plan of action when the regulatory environment changes, offers backup capacity, and openly shares information about its infrastructure. And, of course, check the reputation: for example, we have cases where we migrated clients' projects from blocked foreign platforms within 72 hours, keeping their business online.
Thank you for the conversation, Michael! I'm sure these insights will help our clients and partners better navigate the changing landscape.
Thank you! Always happy to share my experience.
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