Welcome!

@ThingsExpo Authors: Yeshim Deniz, Elizabeth White, Pat Romanski, Liz McMillan, William Schmarzo

Related Topics: @ThingsExpo, @CloudExpo

@ThingsExpo: Article

Russia Lags Badly in ICT Dynamics

As Sochi Olympics Open, We Take a Look at the Bear

With the Sochi Winter Olympics opening, it seems a good time to take a look at how Russia does in our research. There is some good news, although the country could certainly do much better.

No serious discussion of Russia today is possible without mention of country President Vladimir Putin. Indeed, this strongman is clearly on a personal mission to go into the history books alongside Peter the Great and Lenin as his country's most influential leaders.

Putin's influence is such that he's considered to be the most powerful person in the world by Time magazine, among other sources. His control over Russia's politics, media, culture, and business seems to be absolute.

Ironic Reality
Thus it may seem ironic to President Putin that his power is his country's biggest obstacle to progress. A few noteworthy items:

  • His country is perceived as being very corrupt, according to the Perception of Corruption Index, one of the factors we use in our research. Russia's PCI number ranks it 92nd among the 102 nations we survey - worse than Syria and Pakistan, for example.

  • A large income disparity that arose during Boris Yeltsin's time as Russia's leader does not seem to be improving under Putin. Russia finishes 68th in this category in our rankings, lower than China, Senegal, and the Ivory Coast, for example. Its ranking here is in dramatic contrast to neighboring Ukraine and several former Soviet satellite nations.

  • Business leaders who challenge Putin politically can get thrown into prison. This has had a chilling effect on foreign investment. Although Putin touts a recent tripling of foreign direct investment into the country (reaching $55 billion in the first half of 2013), capital outflow has exceeded outside investment in the country for several years. FDI is not one of the factors we measure, a lack of it will show up in the technology factors that we do measure.

In our overall rankings, Russia lags not only globally, but more important, in comparison to many of its neighbors. Russia finishes 80th in our overall rankings, and dead last among the 33 European countries we survey. It badly trails all of the former Soviet satellite states. Within its income tier (countries with per-person incomes between $13,000 and $30,000), Russia finishes 15th among 17 nations we survey, leading only Saudi Arabia and Oman.

Hope Spring Eternal
There is a glimmer of hope in our raw rankings, which de-emphasize the socio-eonomic factors. Here, Russia finishes is actually considered to be one of our "Goldilocks" countries - the dynamics of its ICT infrastructure shows an impact that is neither growing too rapidly (too hot), nor to slowly (too cold), but "just right." Other Goldilocks nations in the region include Latvia, Poland, the Czech Republic and Slovakia, and Slovenia.

Putin has reputedly authorized more than $50 billion to be spent on the Sochi Olympics, an absurd amount that is more than six times the amount spent by Vancouver to hold a perfectly beautiful Olympics in 2010.

The $50 billion is equal to 2.5% of the country's GDP - this is comparable to spending $400 billion in the US. This amount is also enough to build new power plants for about two-thirds of Russia's population, or an entire year's worth of all the new datacenters in the world.

Apolitical Blues
We make no judgements on the form of governments in the nations we survey or on local politics. Our view is that the combination of factors that we integrate into our unique algorithms creates an accurate picture of what a nation's government is doing for its people.

For Russia right now, it's not a pretty picture. Although I stay quite busy, I will take Vladimir Putin's call if he tries to ring me. I doubt he will, as he seems not to listen to many people.

However, I do encourage him to look at his country's resources and people, and ease up a bit on his totalitarian tendencies. Investors would be happy to get excited about Russia again - as they did in 1991 - and work to improve a promising technology infrastructure that will only improve the lives of the country's people if developed more robustly.

Contact Me on Twitter

More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...