“Svoe.IT”: Refusal of Russian Software — A Matter of National Security

On September 8, 2023, the “Svoe.IT. Ukrainian Software Showroom” conference took place in Kyiv, where over a thousand visitors had the opportunity to test dozens of programs from Ukrainian development companies. Intecracy Group companies gladly supported this event by actively participating — both as speakers and by setting up a demo stand with their own software.

Participants showcased over 30 programs for document management automation, accounting, CRM and ERP systems, solutions for call centers and technical support services, etc. The presence of such a large number of national software products is an eloquent testament to the maturity of Ukrainian companies and their ability to meet the needs of enterprises and organizations. This is especially important in the context of discussions about a complete rejection of Russian software, which poses a threat to national security.

One of the event organizers was the cloud provider GigaCloud, a partner of Intecracy Group companies. Volodymyr Bielov, the CEO of this company, stated directly during the event: “We missed the capture of our market by Russian 1C, Bitrix, and other programs.” According to him, over 70% of Ukrainian businesses use Russian programs. For a long time, the main argument for using such software was the lack of alternatives. As of today, the situation has fundamentally changed.

What Ukrainian Developers Showcased

The event was organized in a showroom format. This means that every visitor had the opportunity to directly see and test dozens of programs from Ukrainian developers on-site, as well as receive consultations regarding their implementation. This approach saves time in searching for the necessary software and demonstrates its advantages.

Specifically, these include:

• In the field of document management, these are programs that allow for quick information and file exchange, digital signatures, and document storage in electronic archives: Megapolis.DocNet, Deals, Centredo, MEDoc, «АСКОД», «Вчасно», «MASTER: Документообіг», E-Docs, as well as the Signy service.

• CRM systems and their implementation services: Creatio, NetHunt, CRMiUM, SuiteCRM, Servio, VoIPTime CRM, MASTER: CRM, KeyCRM.

• Analogues of “1C”: A5 (subsystem “Accounting and Tax Accounting”), «Дебет Плюс», «MASTER: Бухгалтерія», «Вправно», ISPro, «Універсал 9:ERP».

• ERP systems: A5 ERP, ITFin, Self-ERP, BJet ERP, as well as localized software applications for accounting and HR for the international ERP system SAP Business One.

• Programs for call centers and technical support services: IP telephony solutions using artificial intelligence VoIPTime Contact Center, virtual telephony UniTalk, client communication ticket system HelpDeskStar.

• EdTech solutions: the educational information system «Єдина Школа» and the digital platform for education «Навчання і Технології».

• Programs for military personnel, financiers, educators, public catering workers, and social projects: TATL technology, car subscription service Drivovo, unique Uklon cartography to replace Russian Yandex, automation and warehouse accounting program for HoReCa and public catering establishments Poster, trading and procurement service SmartTender.

All visitors also had the opportunity to listen about business automation, trends in software product development, and the danger that hostile software poses to Ukraine. By the way, the presentations by representatives of Intecracy Group companies attracted increased interest from visitors, which is not surprising. After all, the oldest company in the association has been operating on the market since 1995, and the developed software is used in thousands of organizations.

Four products were of particular interest to visitors.

Firstly, Megapolis.DocNet. This is an ECM (Enterprise Content Management) system that allows for organizing electronic document management for organizations of various sizes and types of activity. This universal solution supports the entire document management lifecycle and helps automate processes. 

Link to Megapolis.DocNet

Secondly, the external (online) document management system Deals. This is a simple, fast, and convenient online service for agreeing upon and signing documents with an electronic digital signature with partners, contractors, and clients from anywhere in the world 24/7. The solution simplifies business relations with counterparties in matters of document approval, agreement signing, and document flow management. Documents stored in our online service are legitimate according to Ukrainian legislation and can even serve as evidence in court.

Link to Deals

Thirdly, Scriptum. This is a low-code BPM system for business process management. Thanks to its modularity and flexibility, Scriptum allows businesses to quickly and cost-effectively solve problems: integration of old enterprise systems, process automation, and acceleration of interaction. The platform enables modeling, simulating, monitoring, and analyzing business processes with the ability to dynamically reconfigure process models by analysts and managers without or with minimal involvement of a technical specialist. For example, the software solution helps an organization’s management control where, when, why, how, and what work is performed, as well as who is responsible for its execution.

Link to Scriptum

Fourthly, the flexible and adaptive business process automation system called A5 ERP. This is a packaged solution that includes human resources management and accounting. It allows for the configuration of accounting processes, comprehensive automation of all accounting sections, provides capabilities for analysis and management accounting, and complies with Ukrainian legislation. The system also includes a full cycle of HR management processes, electronic HR document management, and an automatic payroll calculation solution.

Link to A5

Why Russian Software Is Dangerous

Conference participants discussed the non-obvious risks of using Russian software and the need to abandon it. Some companies propose banning hostile software at the state level. For example, the IT Ukraine Association (an event partner) advocates for a complete ban on products from the aggressor country and is launching the “Hostile Software” project to remove them from circulation. A list of approximately 80 programs has already been created, including “1C”, “UA-Budget”, Bitrix24, Advego, and others. They plan to appeal directly to the National Security and Defense Council (NSDC) with a proposal to ban the use of Russian programs.

“Russian software is also an enemy’s weapon, capable of inflicting losses on Ukraine’s economy, social sphere, and security,” noted Kostiantyn Vasyuk, Executive Director of the Association.

Intecracy Group analysts are confident that Russian developers are capable of embedding “backdoors” in software, through which remote access to information and communication networks can be organized, information stolen, and so on. The moral aspect is important — how can one use the services and goods of representatives of a country that kills Ukrainians, illegally exports children, destroys our infrastructure, and seizes territory? And the economic aspect. Russian companies pay taxes, which are used to develop, produce, or purchase weapons for the Russian army. In fact, using Russian software is sponsoring the war.

Intecracy Group Comment:

Mykhailo Vihovskyi, a member of the Supervisory Board and shareholder of Intecracy Group companies, commenting on the event, stated that it is advisable to create a register of permitted software in the public sector, from which Russian software products would be excluded. And also to strengthen control.

“Unfortunately, today some officials are trying to circumvent sanctions. One option is to change the wrapper, for example, the name, and slightly redesign the interface of Russian software. And according to documents, such software is presented as Ukrainian, although the system’s core remains Russian, and updates also come from the enemy country. And with them — new risks.”

Russian software is also being disguised in the private sector. Entrepreneurs shared an interesting case. “Since the beginning of the full-scale invasion, suppliers of Russian restaurant automation systems iiko and r_keeper have actively started to disguise their origins. They change ownership structures, talk about employee relocation, and independence from Russian brands. iiko even announced the creation of an international brand Syrve, which Ukrainian establishments purchase and which is supposedly not connected with Russia. However, this is not true,” noted Rodion Yeroshek, a showroom participant, CEO and co-founder of the restaurant automation company Poster.

Vadym Koziak, co-founder of “Vpravno” LLC, also emphasizes the need to replace Russian software with Ukrainian analogues but notes that the transition cannot be abrupt: “I advocate for a planned and gradual introduction of sanctions against Russian closed-source software. Businesses need to understand that the process is irreversible, but the transition period must be sufficient.”

State Reaction

Oleksandr Bornyakov, Deputy Head of the Ministry of Digital Transformation, spoke about the importance of supporting Ukrainian developers.

“Despite Russia’s bloody war against our country, some organizations in Ukraine continue not only to use Russian software but also to purchase it. In particular, I know about “1C”, which operates in Ukraine under a different brand, Business Automation Framework (BAS). And this is a matter of national security, because the enemy effectively gains access to our information systems. We need to tell users that there are quality alternatives. They already exist in Ukraine, and we see it right here and now. We also need to support Ukrainian developers. And the Ministry of Digital Transformation will continue to help them in their development, participation in international exhibitions, and popularization,” he said.