Ban on russian software and online services.

Recently, I commented to the Ukrainian Forbes regarding draft law 11492, which aims to ban the use of software products and access to electronic information resources. It proposes prohibiting Ukrainian companies from distributing and using russian software and online services.

I spoke with Liuba Balashova for 25 minutes, and only two sentences from the entire conversation made it into the article, which can be read in just a few seconds (link in the comments). No, this isn’t bad — it’s just the format. You say a lot about the topic, and the reporter creates an article based on select thoughts. But I still have something to say on this matter.

Is it the right time to work on this draft law?

More than ever. Ideally, this should have been done at the beginning of the full-scale invasion, but this is one of those cases where better late than never.

Why is this necessary?

First, no information from Ukraine should be in the hands of companies from the aggressor country. Sometimes, there are claims that intelligence services from the territory north of us could access Ukrainian data through software loopholes. I find it amusing every time I read this because Ukrainians are voluntarily giving away their data by continuing to use this software!

Secondly, not a single penny of ours should end up in the hands of anyone associated with russia.

I remember two months ago, I was driving through the Balkan countries (don’t ask). The most common gas station there is LUKOIL. So, I was munching on Snickers bars from the glove compartment and was driving on diesel fumes just to avoid giving even a euro to someone who might eventually turn my money into a rivet for a missile that would then fly over my house and kill someone. It’s a bit inconvenient, but it’s worth it.

But for me, the most important argument is the third one — because it’s just wrong!

How will this be implemented?

This is the most interesting question because the draft law says nothing about it. And while it’s possible to control the distribution of sanctioned software, monitoring its use is practically impossible. In my opinion, this is the weakest point of this draft law.

What effect can be expected in the short term?

Ukrainians will no longer be able to pay for russian software in Ukraine. This is quite conditional because, for maximum effect, regular card payments on foreign websites also need to be controlled. Here, banks will need to join in enforcing the law’s spirit.

Firstly, new software won’t be available for purchase, and secondly, subscriptions and updates won’t be payable.

The second part might be even more painful than losing the ability to make an initial purchase. Imagine you’ve paid for a CRM for a year, but you can’t renew it for the next one, or you lose updates for your accounting system. This is truly painful because all the company’s processes are already built on these products.

Will Ukrainians massively abandon russian-origin products?

Probably not yet.

One of the strategic hypotheses of my new business was that once we launched our product, almost all users of a similar russian product would become our customers. But something went wrong.

Only a small percentage of users stopped using it. Some migrated to us, others chose a mix of different products. However, the majority stayed with the old online service. Why? In short, it was due to existing investments, the cost of transition, implementation, and support, the reluctance to change a solution that is set up and working, and the lack of a full equivalent among Ukrainian or foreign products. "Yes, it’s russian, but…"

Is there really no equivalent in Ukraine?

If customers expect a total equivalent of some russian product, I have bad news for them today.

Even with all our flexibility, we never aimed to create a replacement or equivalent to Bitrix24. Our product is similar in concept and initial set of some functions, but we would never want to see more than half of what’s there in Uspacy.

The situation is even worse for equivalents to 1C because there is no replacement (full equivalent). It’s deplorable, but we have to look at the situation realistically. A determined switch to something Ukrainian for accounting will hurt you.

My personal recommendation is to stop looking for the exact same product and constantly compare it to what was before. Just accept that it’s something different.

What’s next?

In my view, in the short term, this draft law will almost wholly stop Ukrainians from spending money on russian software. And that means indirectly financing the war.

We will finally move away from this software in the medium and long term.

Because new users will choose among Ukrainian or foreign products — preferably Ukrainian, of course.

Because it will become so problematic for current users to continue using sanctioned software that it will be easier to decide to invest in migration.

Because the readiness of Ukrainian clients to choose local products will push developers to create worthy products that can compete for the consumer.

Glory to Ukraine!