Rostelecom and YADRO launch a new JV to support digital transformation with integrated PaaS and IaaS

Moscow, Russia – September 16, 2020 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces the launch of a new JV with YADRO to introduce a new portfolio of integrated PaaS and SaaS products. The purpose of this JV is to provide clients with holistic support in digital infrastructure development in the most effective way, from planning and design to implementation.

The JV “Cloud Platform” will significantly expand Rostelecom’s strategic data centre business unit, bringing together Rostelecom’s subsidiary TIONIKS and Digital Energy, the daughter company of YADRO (part of X-Holding). The new JV will be 51% owned by Rostelecom, with YADRO’s 49% participation. The companies have already started to jointly develop a platform that will be designed to meet requirements of large businesses and state organisations (B2B and B2G) that are just starting their digital transformation journey.

Rostelecom is currently a leader among IaaS providers with more than a quarter of the Russian IaaS market of public cloud services, according to IKS Consulting. The new JV under Rostelecom’s management is expected to evolve into a large cloud provider and will make significant contribution to the Company’s market position in cloud by adding the PaaS capability to its well-established range of cloud services. The JV’s solutions are forecasted to cover 40% of the B2C and B2G sectors, and around 15% of the SMB market by 2025.

Moreover, the transition to an integrated product line will enable better efficiency of clients’ computing resources (by 15% to 17%) and will also reduce the operating costs of structure services by 20%. It will also help meet the growing demand for localised IT systems from Russian companies.

Anna Shumeiko, Senior Vice-President, the Chief of Staff of the President of Rostelecom:

“The merger with Digital Energy will significantly enhance our data centre business. This deal is a major step towards expanding our outreach to a much larger client base with companies from various sectors of the economy, coming to us with different needs and requirements. The range of well-advanced PaaS solutions within this JV partnership will make a significant contribution to our digital services ecosystem and will strengthen Rostelecom’s overall leadership in cloud.”

Pavel Kaplunov, Vice President for Cloud Services of Rostelecom:

“The newly launched JV is our opportunity to provide Russian companies with turnkey platform solutions from the design to implementation stage, which are getting increasingly popular on the market. Moreover, we hope the extension of product portfolio driven by proprietary software solutions will sharpen Rostelecom competitive edge as well as may stimulate import substitution.”

Ivan Yermakov, Product Director of Digital Energy:

“The merger of two successful teams will allow us to integrate our experience and competences to work on more sophisticated and large-scale projects. I am confident that this deal not only opens a new chapter for both companies, but it also marks a new stage in evolution of the entire digital market in Russia.”

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Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.