C'mon Chris, it's you who taught me that Moscow isn't Russia. Different
living standards, different access to technology, etc.

Joanna

Chris Doss wrote:

1) I don't know how the hell Tahoo is going to compete with Yandex.ru and Rambler.ru, which are entrenched in the Russian market and giant.

2) I don't get how computers are a "luxury" in Russia. Most everybody I know has one. Hell, you can use one in an Internet cafe in Moscow for $1 an hour, like I'm doing right now. It is true that Russia has a mobile-phone mania; one in four Russians owns a mobile phone, as opposed in one in 20 in 1998.

RIA Novosti
March 26, 2004
RUSSIA: THE RETURN OF THE PRODIGAL PROGRAMMER

MOSCOW. (RIA Novosti analyst Vladimir Simonov).

In a few weeks, the US Internet giant Yahoo! will open an e-mail portal in
the Russian language, the company has announced.

At the first sight the decision seem strange. Yahoo! is well aware of the
fact that although access to the Internet in Russia is growing, it is still
confined to 10 million people. Computers here are still a luxury, so the
average Russian prefers to pay $0.20 for a minute on his or her mobile to
$0.75 for an hour on the net.

Yahoo!, however, is not concealing its motives. In opening the
Russian-language portal, the concern recognises the powerful potential of
the Russian-speaking web market, which also embraces 35 million
Russian-speaking people abroad. Russia's international reputation as a
country of computer talents may have played a role as well.

Unfortunately, for a long time the West considered them to be the devil
incarnates. The television and press were full of stories about St
Petersburg hacker Vladimir Levin, who defrauded Citibank, and Oleg Zverev,
who hacked through Bloomberg's firewall and then politely offered the
agency's owner, New York Mayor Michael Bloomberg to restore it for $200,000.

There is no arguing that Russia still remains a Klondike for computer
hackers and spammers. There are rumours that even this year's most
aggressive and destructive virus, Mydoom, which has paralysed hundreds of
thousands of computers and inflicted worldwide losses of $30 billion, was
invented somewhere in Russia. The country has fallen behind in drafting
laws against cyber crimes. The West knows better than Russia how much it
costs to establish at least the basics of law, order and morals on the
national Internet. Of course, Moscow does not have money to spare for that.

However, even in the mid-1990s, Russia's computer talents shifted from
destruction to creation. Unfortunately, at that stage they did it mostly
for foreign companies.

The army of first-class computer specialists, groomed at secret Soviet
defence enterprises, received the opportunity to go abroad. Russian brains
started to quickly fill foreign, mainly American, companies.

California's Silicon Valley began speaking Russian. Today, one in three
Microsoft programmers was born in the USSR.

Times change, however. Russia's rapid economic growth and the stability
acquired in recent years have shown Russian computer specialists that they
do not have to try their luck abroad. Overcoming the lack of investment and
bureaucratic obstacles, they are confidently entering the offshore
programming market, i.e., the market of creating computer programs
commissioned from abroad.

This enticing market is worth an estimated $30 billion a year. China,
Taiwan, Israel and India are the strongest players on it today, but in 2003
Russia earned $500 million, double the previous year's figure. The surging
demand for Russian software suggests that Russia will soon be able to
eclipse the traditional figures in the niche.

The achievements of Russian programmers are becoming increasingly
impressive. Here are some landmarks: in 1991, the Russian company ParaGraph
sold Apple Computers the licence for original software to read manuscripts.
Later, Russia's Stipler managed to attract the attention of the Corel
corporation to its system for electronic tables. Finally, in April 2003,
Russia's Spirit Corp and the large US equipment producer Texas Instruments
signed the largest licence deal in Russia for Internet-telephony software.

The result was that prodigal programmers started coming back to their home
country. Although their salaries are still lower, qualified Russian
"brains" are returning to Russia, because they believe there are more
opportunities here. Another reason is that modern technologies allow people
to co-operate even though they are in different countries. For example,
programmer Andrei Terekhov works miracles for the California-based company
Start Up from the comfort of his St Petersburg apartment. The company's
head Wivik Vathva is so pleased with his Russian employee that he calls him
the second Einstein.

Even the Moscow-based producer of popular anti-virus software, Kaspersky
Labs, is quickly gaining international influence. The pony-tailed former
Soviet Defence Ministry programmer Yevgeny Kapsersky is now managing a
company with 300 employees together with his wife Natalya. Kaspersky Labs
supply software to 35-50% of Russia's corporate clients, while it recently
opened branches in Britain and Germany. Kaspersky believes that cyber
terrorists are dividing spheres of influence on the web. "The fight is not
only between good and evil, but also between evil and evil, like the USSR
and the USA used to fight," he says. Happily, Russian computer talents now
side with good more often than not.




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