Russian billionaire says replacement of SAP software is costly but essential
MOSCOW (Reuters) -Russian steel billionaire Alexey Mordashov said that developing a homegrown alternative to the widely-used business software made by Germany's SAP will require more time and money than anticipated but is a matter of survival.
SAP, which became Europe's largest company by market capitalization this year, makes software that helps businesses manage functions from marketing and human resources to logistics and procurement.
SAP provided software to Russia's largest companies, including airline carrier Aeroflot and Russian Railways, but gradually curtailed its business in response to Moscow dispatching troops to Ukraine in 2022 and stopped operations in March 2024.
Steelmaker Severstal, owned by Mordashov, and petrochemicals firm Sibur have jointly sought to develop an alternative to SAP software.
"We have done a lot to study this issue over the past year, but it turned out that everything is much more expensive and complicated, requiring more meticulous refinement," he said at a technology conference.
"We understand the importance of this task... because we need to survive," he added.
SAP held up to 60% of the Russian market for business software before the Ukraine conflict, with the rest mostly divided between Microsoft and Oracle.
Currently, many Russian companies are still using pre-installed SAP software but lack access to updates and support from the German company, making their systems vulnerable to failures.
Mordashov's statement highlighted the difficulties experienced by Russian companies as they try to develop alternatives to Western software amid Western sanctions.
Severstal and Sibur initially teamed up with domestic software maker Consist but have since exited the partnership. Severstal is now looking into solutions provided by developer Business Technologies.
Other Russian companies like Russian Railways and oil firm Gazpromneft have chosen to cooperate with developer 1C, and are planning to launch a domestic alternative to SAP software in 2027.
登入存取你的投資組合
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
37 minutes ago
- Yahoo
Germany's Merz set to press for lower tariffs in Trump meeting
German Chancellor Friedrich Merz will today push for reduced American tariffs in his first meeting with US President Donald Trump in Washington, DC. Merz will also highlight his country's increased defense spending and press for stronger American support for Ukraine, hoping to leverage what has so far been a positive, if distant, relationship: The two former businessmen text each other and are on a first-name basis, Handelsblatt noted. The visit is crucial for Merz — Germany's huge manufacturing and carmaking sectors are particularly vulnerable to Trump's steel and auto tariffs — but he also has cards to play, The Wall Street Journal said, and is expected to argue that Washington needs Europe in order to present a unified front against China.
Yahoo
37 minutes ago
- Yahoo
Government moves to dismantle decade-long stance for major energy production: 'This will be a sea-change policy shift'
Germany has let go of its long-standing resistance to nuclear power in what's seen as one of the country's biggest steps toward unlocking more clean energy sources. As the Financial Times reported, officials from both Germany and France say that Berlin will no longer stand in the way when it comes to treating nuclear power the same as renewable energy resources in European Union legislation. This move puts an end to a major disagreement between France and Germany, which had been stalling many key energy decisions in the EU. Germany began to phase out nuclear energy in 2011 after years of discussions and shut down its last three nuclear power stations in 2023. The news comes in the wake of Chancellor Friedrich Merz's election in early May. In the past, Merz has publicly criticized Germany's decision to phase out nuclear power, arguing that it had prevented the country from accessing a reliable and affordable energy source. "This will be a sea-change policy shift," a German official said. Though Merz has not made plans to reopen any nuclear power stations, he has signaled an interest in investing in alternative energy resources. This has gone a long way in soothing any troubled waters with France in regards to nuclear energy programs. "The Germans are telling us: We will be very pragmatic on the issue of nuclear power," a senior French diplomat told the Financial Times. Nuclear energy does not produce direct carbon emissions but can have several environmental impacts. This includes radioactive waste generation, water consumption, and the potential for accidents. However, nuclear power plants have the highest capacity factor compared to other energy sources. Nuclear power can be a very energy-dense source, with a small amount of nuclear fuel needed to generate a large amount of electricity. This can ultimately lead to lower electricity bills for consumers. Guntram Wolff, senior fellow at Bruegel, applauded the move from Germany. "It's a welcome rapprochement that will make the topic of energy easier in the EU," Wolff said. "Politically, Merz is also thinking about the nuclear umbrella." Which of these factors would most effectively convince you to support nuclear energy projects in your area? Lower energy bills Safety and reliability More local jobs Environmental benefits Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
37 minutes ago
- Yahoo
Germany to buy advanced cruise missiles for fighter jets from Norway
Germany plans to procure air-launched cruise missiles from Norway, the Norwegian Defence Ministry said on Thursday. Berlin is seeking to acquire Joint Strike Missiles (JSM), with a contract expected to be signed by the end of June. The German parliament approved the project on Wednesday, according to the Norwegian manufacturer Kongsberg. The contract between the two NATO allies is valued at approximately 6.5 billion Norwegian kroner ($639 million). The plan involves Norway procuring the missiles from Kongsberg on behalf of Germany. The missiles are intended for use on the 35 F-35 fighter jets that Germany is acquiring from the United States. Norwegian Defence Minister Tore Sandvik stated that the already close missile cooperation between Norway and Germany would become even more significant when F-35 jets from both countries are equipped with the cruise missiles. According to Norwegian sources, Germany will become the fifth country, alongside Norway, Japan, Australia and the United States, to acquire the Joint Strike Missiles. The new missiles are specifically developed for the F-35, capable of targeting and destroying well-defended sea and land targets over long distances with high precision.
