Rostelecom leads in the IKS Consulting rating of commercial data centres in Russia

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Moscow, Russia – October 15, 2019 Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that it has been ranked first among data centre providers in Russia by the number of its racks in September 2019 and revenue for 2018, according to IKS Consulting.

‘Rostelecom Data Centers’ has become the absolute leader by the number of racks, with an anticipated combined capacity of 6,686 racks as at the end of 2019. According to the analysis by IKS Consulting, Rostelecom has the largest revenue from its data processing business stream as of the end of 2018, mainly thanks to the sharp growth in the cloud services sector in Russia.

The rating agency highlights that the increase in demand for cloud services is the key driver of growth for data processing centres in Russia, which explains the anticipated reduction in the share of revenue of traditional services among operators to 55% in 2019.

IKS Consulting also notes that orientation on a service model is becoming an emerging trend, both among data centres and customers. Rostelecoms experience shows that this model remains the most attractive route to data processing for clients, as opposed to investing in the development of owned infrastructure and server capacity.

The report also notes a growing regional imbalance in the location of data centres, with the Moscow share having increased to 73.4% in 2019, from 64.6% in 2017. Rostelecoms strategy seeks to address this imbalance by making quality infrastructure accessible across all federal regions in Russia. The Company is currently building data centres in Yekaterinburg, Saint-Petersburg, Novosibirsk, while looking at adding two more in Rostov-on-Don and Nizhniy Novgorod.

IKS Consulting notes that operators priority efforts are aimed at ensuring that communication is seamless and secure. Data centres are often connected to networks of dozens or even more backbone operators. The Moscow centres ping time to connect with the MSK-IX communications facility is no more than 2 milliseconds, and the carrying capacity of their external backbone channels is measured in dozens and hundreds of gigabytes per second. MSK-IX, the operator of the largest traffic exchange network and part of the Rostelecom Group of companies, today secures a 100% share of data centres connected to it, giving it an absolute leading position in Russia.

Pavel Kaplunov, Vice President for Cloud Services at Rostelecom and director general of Rostelecom Data Centers, commented:
“With cloud services gradually replacing the traditional colocation model, following the global trend, we are seeing increased demand from our clients for this new offering, which is supported by enhanced trust in cloud infrastructure. Against this rapidly changing backdrop, Rostelecom is determined to secure the trust of its clients by proving its capabilities as a reliable technology partner. By expanding and strengthening its network across the country, which is essential for a resilient cloud infrastructure, Rostelecom intends to develop an ecosystem with best quality services and seamless connectivity for all of our objects”.