Russian hosting providers are set to raise prices for their services starting from the beginning of 2025. The price hike could range from 5% to 10%, with some providers even considering a 15% increase. The main reasons behind this decision are the costs associated with implementing systems of operational-search measures (SORM), the rise in equipment costs, and changes in tax legislation.
Nikita Tsaplin, the General Director of RUVDS, explained that the introduction of SORM software alone costs companies between 5 to 10 million rubles. If hardware systems need to be installed, the costs increase due to the purchase of certified equipment, with some components costing from 300 thousand to 1 million rubles. RUVDS plans to implement these price increases for the first time in three years, with most virtual servers seeing a maximum increase of 12.6%.
Sergey Ryzhkov, the head of the Department of Hosting and Professional Services at Reg.ru, mentioned that technical support and system modernization can contribute up to 30% of the costs associated with implementing SORM, thereby affecting pricing.
In 2023, amendments to the federal laws “On Information” and “On Communication” were enacted, requiring hosting providers to meet certain criteria such as registration with Roskomnadzor, server localization in Russia, and implementation of security measures to counter threats. Failure to comply with these regulations can result in a ban on providing services in the country. As of December 18, 2024, 479 entities were included in the register.
The Ministry of Digital Development stated that they do not regulate prices for SORM in the hosting sector and have not received complaints from operators or providers regarding equipment price hikes. The Ministry, in collaboration with the Federal Antimonopoly Service (FAS), ensures price monitoring and investigates any suspected violations.
However, Sergei Ovchinnikov, the general director of Norsi-Trans, opposes linking hosting providers’ tariffs to the installation of SORM, stating that the impact of the new requirements on price increases is minimal at this stage. Other companies attribute the tariff hikes to changes in tax legislation, such as the introduction of a five-speed personal income tax scale, an increase in income tax rates from 20% to 25%, and other measures that place a heavier burden on businesses from 2025 onwards.