Softline Group, a major IT solutions provider, has confirmed the suspension of access to cloud products offered by Microsoft, Amazon, and Google for Russian customers.

Microsoft Corporation has recently announced the suspension of new sales in Russia.

This disruption is effective March 20, 2024, and applies to a wide range of cloud-based software, including:

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• Power BI (business intelligence)
• Dynamics CRM (customer relationship management)
• (and potentially others)

The Cause:

These restrictions stem from the European Union’s “12th package of sanctions” implemented in December 2023.

These sanctions limit the supply of specific software categories, including business intelligence and customer relationship management (CRM) tools, to Russia.

The list of products to be banned includes a wide range of corporate applications, such as those for business process management, corporate accounting, automation, business analysis, project management, IT environment management, collaboration, and applications for small and medium-sized enterprises (SMEs). Notably, the ban will also affect software development tools, including the popular Visual Studio development environment, and applications connected with databases like Access DBMS and SQL Server, Russian media Outlet reports.

The Impact:

As of March 20th, Russian companies will no longer be able to:

• Use the affected cloud products.
• Access data stored within these products.

The specific regulation cited (EU Regulation 833/2014) restricts the supply of various software types to Russia.

This will likely cause significant disruption to Russian businesses and organizations that rely on these Microsoft products for their daily operations.

The ban extends to applications that are integral to various business functions, from accounting and resource planning to data analysis and software development.

Softline Group emphasizes that the suspension could potentially encompass all cloud products from Microsoft, Amazon, and Google that fall under these restrictions.

Softline has been advising Russian companies to back up their data and transition to domestically made alternatives.

The Russian government has also been promoting local alternatives to ensure the continued operations of private companies and organizations.

Microsoft’s ban on its cloud products in Russia is a clear indication of the tech industry’s alignment with international sanctions policies.

The move underscores the challenges that Russian businesses face as they navigate an increasingly isolated technological landscape.

As the situation develops, it will be crucial for affected organizations to find viable alternatives to maintain their operations.

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