Softline Summarizes its Operations in 2018 and Discloses Strategic Plans

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Softline Summarizes its Operations in 2018 and Discloses Strategic Plans

In 2018 Softline turnover has grown by 19% in USD and by 32% in RUB.

On February 15, 2019, Softline group of companies held a press conference to summarize the annual balance and to disclose the strategic business development vectors. The turnover of Softline Group in 2018 reached $1.36 bln, which is 19% more than in 2017 ($1.14 bln). The turnover in roubles was 94.82 bln, or 32% more than in the previous year.

In the calendar year 2018* the share of Softline business in Russia accounts for 68%, in Latin America for 17%, in the APAC region for 7% and in the countries of Eastern Europe and Central Asia for 8%.

“Continuously, for several years we have demonstrated a consistent growth, and in Russia we grow 2.5-3 times faster than the market. Softline is the Russia’s only company focused on global presence, operating now in more than 50 countries. Enhancing our international positions remains a part of our long-term strategy. Softline offers a unique business platform with expertise abroad that enables Russian technology vendors to enter the BRICS+ markets. Alongside its geographic expansion, our company seeks to take leading positions in digital transformation and cybersecurity,” stressed Igor Borovikov, Chairman of the Board of Directors, Softline Group.

Cloud technologies have shown growth by 83% compared to 2017 being the fastest growing line of business followed by proprietary services, 25%, and hardware, 44%. Softline solution portfolio currently features products and technologies from more than 3,000 foreign and Russian vendors.

“Our partners invest in Softline demonstrating a high confidence level. Over 25 of our partners make direct investments in our expertise development. In turn, we access the world’s best technologies. We offer such sophisticated innovative solutions as Internet of Things, Artificial Intelligence, Machine Learning, Security Operation Centres, solutions for digital schools and universities and many more. We are proud of being able to offer best-in-class solutions, advanced experience and expertise of our specialists implementing some of the very sophisticated projects all over the world”, underlined Sergei Chernovolenko, Global CEO, Softline.

The Softline group of companies employs over 4,500 people throughout the world. The company operates in all the Federal Districts of Russia and is listed among major employers: some 3,000 specialists work in the cities and towns of Russian Federation. Softline is engaged in a pro-active collaboration with the Russian universities all over the country and contributes to teaching some cutting-edge technologies to the next generation of professionals. Annually the company launches its internship programmes and based on results tends to engage with the best interns to make them remain on its payroll.

“All of our key partners develop entire ecosystems based on their proprietary solutions: today nobody thinks in categories of individual products. Ten years ago, we began developing our proprietary products and services, and this decision has proved to be the relevant and right one. Today our customers tend to expect from us the knowledge of business processes organization and skills of designing an efficient technological solution that meets in full the business needs, rather than merely the knowledge of a specific equipment unit features,” said Irina Krivenkova, Service Department Director, Softline.

In 2018 Softline has developed its own industrial Internet of Things platform based on open-source software. The platform was designed to solve a broad range of problems and covers anything from asset management systems intended for large geographically distributed enterprises up to digital multi-service platforms for government authorities. The Connected Worker concept has been selected as a ‘flagship’ solution. This platform enables an enterprise to control if its workers follow the safety regulations, to identify potential threats and to alert any deviations from established standards in real time. The platform capacity enables storage of large amounts of data fed from various types of individual protective equipment, portable devices and manufacturing machinery. New types of connected device and new functionality may be added in very short terms.

“Recently, Softline and Rostelecom have announced an implementation of the Smart Helmet positioning system for Hiagda Joint-Stock Company (one of the management structures of the ARMZ Uranium Holding / Mining Subdivision of the Rosatom State Corporation). We have developed the Smart Helmet solution in compliance with the customer’s requirements. It enables a remote monitoring over how the production-related occupational safety regulations are adhered to, as well as control over the employees’ movements and current status. The IoT demand from the Industry 4.0 companies will remain on the rise and to respond to the customer’s needs, we have some plans underway to develop new solutions based on the Connected Worker,” explained Irina Krivenkova.

To meet the needs of governmental customers for import replacement, Softline extends its portfolio with new products from Russian developers. The domestic products provide a basis for the Regions of the Future concept elaborated by Softline; it includes IT solutions and services that automate almost all functions of modern urban areas. At the present time many regional authorities in Russia adopt components of this concept and use them to improve the transport infrastructure, housing and utility services, and energy efficiency.

Being a digital business transformation provider, Softline at the same time assists its customers in building a robust protection against cyberthreats. In 2018 Softline has enhanced its market position in cybersecurity, in particular through the acquisition of Infosecurity company. Now Softline has at its disposal one of the best Security Operation Centres and an experience in monitoring security at the major Russian companies. Besides, Softline has successfully undergone a certification audit proving compliance with the international cybersecurity standard ISO 27001. Softline portfolio lists more than 200 cybersecurity projects implemented in 2018. Last year the company launched to market two new offerings: SOC–as–a–service and packaged solutions for protection against external penetrations.

“Security concerns remain among the priority tasks for any company. Our customers put in our hands protection of their data, which demonstrates their confidence in our competences,” commented Irina Krivenkova.

Softline has been developing the cloud line of business since 2007 and offers its customers proprietary and vendor cloud solutions based on the subscription, rental or leasing conditions. Softline’s IaaS and SaaS cloud platform enables customers to access public, private or hybrid solutions. The company operates 5 own datacentres in Russia. Since 2012 Softline has been listed among the top 5 Russian SaaS providers, and since 2016 – among the top 5 IaaS providers (in CNews and Comnews rankings). Using cloud technologies and services enables companies to build a solid foundation for digital business transformation.

Softline customers can make use of various financing schemes for their projects including a long-term IT equipment lease option supported by the purchase right and the Hardware-as-a-Service (HaaS) opportunity. The two schemes help customers to convert their capital expenditures to operational ones without pulling the floating assets from their budgets.

In 2018 the Softline portfolio was enriched with new lines of business including Robotic Process Automation, Artificial Intelligence and Machine Learning solutions. Today the company is running several pilot and commercial projects related to routine operations robotization in the fields of treasury, accounting, HR or economic security. Obvious RPA advantages like implementation speed and fast economic effect combined with the Softline expertise create pre-requisites to expect in 2019 the sales growth well ahead of the market growth.

“In 2019 Softline is to continue its M&A programme implementation as a part of international expansion. We will enhance our practices in cybersecurity and invest in the development of proprietary cloud platform and proprietary digital transformation solutions based on the IoT, Artificial Intelligence and RPA solutions. Yet another strategic objective for the next three years will be developing and launching a Softline digital marketplace. Within the coming 5 years Softline is to become a global IT company present at all the key IT markets and will be one of the top 5 major world players,” concluded Igor Borovikov.

(*) The Softline Group’s financial year begins on the 1st of April and ends on the 31st of March.