US-Russia Business Council Webcast: Demystifying Russia Online
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Original Air Date: Wednesday, August 14, 2013 http://w.on24.com/r.htm?e=653807&s=1&k=B5137FB799639001138723624E33BD2D Contact CDNetworks at info@cdnetworks.com With the largest online population in Europe, escalating attention from international investors, and an increasing number of online users, Russia continues to attract global online businesses. But, significant internet performance issues can pose a challenge to reaching online users in Russia. During the webinar, CDNetworks and the U.S. Russia Business Council reviewed the challenges affecting online performance in Russia and the latest technology used by global businesses headquartered outside of Russia to overcome challenges and achieve top ecommerce, website, and cloud application performance in Russia. Key Points - Russia Business Overview - Opportunity in Russia - Unique challenges associated with Russia online performance - Using Russia Acceleration to optimize website and cloud application delivery in Russia - Case study review and key learning's If learning about the latest business and performance strategies to improve your online business in Russia is a priority, this webinar is a must see!
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US-Russia Business Council Webcast: Demystifying Russia Online
- 1. CDNetworks, Inc. | All Rights Reserved. 1 Demystifying Russia Online Overcoming Challenges & Achieving Top Performance Featuring the U.S. – Russia Business Council & CDNetworks Live Air Date August 14, 2013
- 2. CDNetworks, Inc. | All Rights Reserved. 2 Randi Levinas Executive Vice President Jeff Kim Chief Operating Officer, Americas & EMEA Meet Your Presenters
- 3. CDNetworks, Inc. | All Rights Reserved. 3 Agenda • Russia Global Business Overview • Russia Online Overview • Russia Online Performance Challenges • Russia Acceleration, Case Study Review & Key Learnings • Q & A
- 4. CDNetworks, Inc. | All Rights Reserved. 4 Russia Global Business Overview
- 5. CDNetworks, Inc. | All Rights Reserved. 5 • Membership trade association • Headquartered in Washington, DC with an office in Moscow • Provide advocacy, networking, information services & more • Mission is to expand & enhance U.S.- Russian commercial relationship The U.S.- Russia Business Council
- 6. CDNetworks, Inc. | All Rights Reserved. 6 Russia Business - Attraction • Abundance of natural resources • Geographic position linking EU with Asian market • Positive macroeconomic fundamentals • 140M consumers • Growing middle class • Established consumer preference for Western goods & services • Almost unlimited infrastructure needs • WTO membership
- 7. CDNetworks, Inc. | All Rights Reserved. 7 Russia Business Overview Largest labor force in the world 8th Largest economy in the world (at market exchange) Services = Biggest economy sector & account for 58% of GDP In Europe for job creation, up from 6th place in 2011 7th #2 Sources: http://export.gov/russia/doingbusinessinrussia/index.asp , Rt.com, EY Russia Business Overview Per capita GDP of all BRIC markets HIGHEST
- 8. CDNetworks, Inc. | All Rights Reserved. 8© 2012 Forrester Research, Inc. Reproduction Prohibited $14,300 $12,000 $6,000 $1,500 Russia Brazil China India GDP Per Capita – Russia Leads the BRICs Source: International Monetary Fund Russia Business Overview
- 9. CDNetworks, Inc. | All Rights Reserved. 9 Russia Business Overview: The Regions Bashkortostan • Population: 4 million • Major Industries: Oil & gas, refined products, petrochemicals, metals Kaluga • Population: 1 million • Major Industries: Automotive components, construction materials, pharmaceuticals Rostov • Population: 4 million • Major Industries: Agriculture, food processing, transportation Stavropol • Population: 2.3 million • Major Industries: Energy, food processing, petrochemicals, tourism SEZ Tatarstan • Population: 3.8 million • Major Industries: Oil, machine building, petrochemicals, Alabuga SEZ Ulyanovsk • Population: 1.3 million • Major Industries: Manufacturing, food processing, Special Economic Port Zone
- 10. CDNetworks, Inc. | All Rights Reserved. 10 Skolkovo • Located on outskirts of Moscow • Special legal, regulatory, tax & customs regime • Created to encourage development of innovative industries • Major U.S. companies involved in the project include Boeing, Cisco, Dow, GE, J&J & Microsoft • Skolkovo will receive $4 billion in federal funding from 2013-2020 Technoparks • Russia has 5 federal Technology Special Economic Zones & a multiple regional technoparks • Include business incubators & like Skolkovo, have special tax, customs & regulatory regimes Concerns • Viability of a top-down, government driven innovation approach • Russia must also deal with structural issues that stifle innovation, like IPR protection (though this is improving), access to venture capital, etc. Russia Business – Innovation
- 11. CDNetworks, Inc. | All Rights Reserved. 11 Russia’s Import Profile: 1H13 Sources: TradeStats Express, RF Federal Customs Agency Import Partners EU China Ukraine Belarus U.S. All Others Russia’s Top Imports • Machinery • Vehicles • Pharmaceuticals • Plastics • Semi-finished metals • Agricultural products • Science and medical instruments • Iron and steel
- 12. CDNetworks, Inc. | All Rights Reserved. 12 0 2 4 6 8 10 12 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H12 1H13 U.S. Exports to Russia ($bln) U.S. exports to Russia in 2012, totaled a record $10.7 billion, a 29% increase over 2011 levels Russia Business – U.S. Exports to Russia Source: http://export.gov/russia/doingbusinessinrussia/index.asp Main U.S. Exports to Russia • Transportation Equipment • Machinery • Chemicals • Computers/Electronics
- 13. CDNetworks, Inc. | All Rights Reserved. 13 Russia Business – Financial Markets 0 50 100 150 200 250 2007 2012 Debit Credit Credit & Debit Card Growth, 2007-2012 Sources: VISA, FT.com
- 14. CDNetworks, Inc. | All Rights Reserved. 14© 2012 Forrester Research, Inc. Reproduction Prohibited Russia Business - Spending 60% Of 2013 Pre-Tax Income Spent on Shopping Highest % in Europe 00% 10% 20% 30% 40% 50% 60% 70% 2004 2005 2006 2007 2008 2009 2010 2011A $500 $500 PPP % of Population with Monthly Disposable Income Over $500 Source: Citi
- 15. CDNetworks, Inc. | All Rights Reserved. 15© 2012 Forrester Research, Inc. Reproduction Prohibited “Russia’s top priority is to create the conditions for sustained economic growth” -President Vladimir Putin
- 16. CDNetworks, Inc. | All Rights Reserved. 16 Russia Business Overview – Key Takeaways • Russia has great potential for growth • After a lackluster first half of 2013, there is optimism for an acceleration in second half of year • Infrastructure development could unlock regional markets • Russia’s potential in innovation sphere is a clear advantage over many of its emerging market peers
- 17. CDNetworks, Inc. | All Rights Reserved. 17 Russia Online
- 18. CDNetworks, Inc. | All Rights Reserved. 18 About CDNetworks • Global Cloud Acceleration Network • Transforming the Internet into a secure high performing application delivery network • Trusted partners in local markets • Experts on extending into global markets
- 19. CDNetworks, Inc. | All Rights Reserved. 19 CDNetworks Global Cloud Acceleration • 140+ Points of Presence in 80+ Cities - 13 PoPs in Russia • Global partnerships with Megafon, KDDI & SAP Russia PoPs • Pskov • Petrozavodsk • Moscow • Rostov • Krasnodar • Samara • Perm • Chelyabinsk • Tomsk • Novosibirsk • Khabarovsk • Kazan • Yekaterinburg
- 20. CDNetworks, Inc. | All Rights Reserved. 20 Russia Online – Interesting Facts ONLY HALF Of the adult population is connected 7M 67M+ Facebook Users3 & 7M Twitter Users2 Internet users3 FREE WIFI In almost every café, bar & hotel 69% Of all online purchases are paid by COD ~80% Of 1st online purchases are made on couponing websites4 70% Of online travel bookings are still accompanied by phone calls or letters to customer service Russian officials refer to the Russian Language Internet as: RuNet 14M+ ISPs ranking 10th in the world 5 2012Became the biggest online market in Europe 6 2nd Russian is the Most used language on the web7
- 21. CDNetworks, Inc. | All Rights Reserved. 21 Russia Online Opportunity Source: New Media Trendwatch
- 22. CDNetworks, Inc. | All Rights Reserved. 22 Russia Online Performance Challenges
- 23. CDNetworks, Inc. | All Rights Reserved. 23 Russia Online Challenges - Cash Payments
- 24. CDNetworks, Inc. | All Rights Reserved. 24 Russia Online Challenges - Firewall • Anti-piracy law • Blacklisting Bill 89417-6 • Illegal Content (gambling)
- 25. CDNetworks, Inc. | All Rights Reserved. 25 • Outside of big cities internet access troublesome • Satellite internet connection too expensive • Lack of system monitoring tools • Packet loss Russia Online Challenges - Availability
- 26. CDNetworks, Inc. | All Rights Reserved. 26 Internet RTT Latency • Distance • Speed of light 50 ms 150 ms San Jose London New York 500 ms Moscow Origin Datacenter 1 Network Problems • Network-of-networks bottlenecks • Packet Loss • Congestion • Retransmission 2 Inefficient Protocols / RTT Multiplier • Chatty protocol: build, tear down, negotiate connections • TCP Slow start • Tens of back-&-forth round trips • 30-50 RTTs common for 1 page • Connection Load at Origin 3 Many RTT for connection negotiation Few RTT for actual data/payload transmission Russia Online Challenges
- 27. CDNetworks, Inc. | All Rights Reserved. 27 0 0.2 0.4 0.6 0.8 1 1.2 Russia Online Challenges – Speed (Latency) Site performance degrades as distance increases More distance Higher latency Longer RTT Slower download Slower page load Source: Compuware Gomez backbone agents Time to Download 24kB Object from Origin in Washington, DC USA 3x Slower 5x Slower 9x Slower 12x Slower!
- 28. CDNetworks, Inc. | All Rights Reserved. 28 Russia Online Challenges - Speed Matters “…faster sites don’t just improve user experience, recent data shows that improving site speed also reduces operating costs. Like us, our users place a lot of value in speed — that’s why we’ve decided to take site speed into account in our search rankings” - Matt Cutts, Google S/W Engineer on Google’s Webmaster Central Blog
- 29. CDNetworks, Inc. | All Rights Reserved. 29 Found that a reduction in page load of 400ms caused a 5-9% drop in traffic Found that a 1 second delay in load time led to 2.8% drop in revenue - A 2 second delay saw revenue fall by 4.3% Published a study that showed when a slight delay was added to web searches – as little as 1/10th of a second – searchers used Google up to 0.6% less Also found increasing load time of the page from 400ms to 900ms – led to 25% reduction in traffic “…Instead of wasting time on keyword meta tags, you can focus on some very easy, straightforward, small steps that can really improve how users perceive your site” - Matt Cutts, Google S/W Engineer on Google’s Webmaster Central Blog Found a 100ms of delay reduced revenue by 1% Found that speeding up their website by 5 seconds increased their conversion rates by 7-12% and doubled # of visitors from search engine traffic Russia Online Challenges - Speed Matters
- 30. CDNetworks, Inc. | All Rights Reserved. 30 Russia Online Challenges – Security Attacks Attacks cause direct financial losses to businesses of all sizes. ARE YOU PREPARED?
- 31. CDNetworks, Inc. | All Rights Reserved. 31 Russia Online Challenges – Security Attacks March: 100's of millions of people in Europe affected by series of "bazooka" attacks . The attack broke record at 300 Gbps 1 April: Attack capacities increase to 10 Gb/s & above 4 April: Attackers for 3 days attacked the website of "Novaya Gazeta“. The attacks were so powerful that they briefly locked channels for some large providers 3 July : Russia suffers world's largest DDos attack to date Q2, 2013 compared to Q2, 2012 •DDos attacks up 33% compared to Q2, 2012 •23% increase from Q2, 2012 in total # of infrastructure (Layer 3 & 4) attacks •79% increase in total # of application (Layer 7) attacks •123% increase in DDos attack duration (38 hrs vs 17 hrs) 2 DDos Attack Activity Timeline 2013 $649k Average cost of a cyber attack to a large business DID YOU KNOW? $50k Average cost of a cyber attack to a small to medium sized company The majority of global companies underestimate the scope of new Cyber threats appearing daily Sources: 1. Dawn.com 2. http://www.valleytalk.org/wp- content/uploads/2013/07/Prolexic_Quarterly_Global_DDoS_Attack_Report_Q213_071313.pdf 3. India Times 4. Pcworld.com 5. 2013 Global Corporate IT Security Risks Survey
- 32. CDNetworks, Inc. | All Rights Reserved. 32 Russia Acceleration
- 33. CDNetworks, Inc. | All Rights Reserved. 33 Add more Datacenters • Attempt to get close to end-users • Expensive • Complex • Sync problem • Doesn’t solve performance issue 1 HW Appliances • Expensive • Need IT team • No support for remote end users 2 Traditional CDN • Only focused on caching • Doesn’t support client-server apps 3 ADCWOC WOC Cache Online Performance Improvement Options Cacheable Non-cacheable
- 34. CDNetworks, Inc. | All Rights Reserved. 34 Creates a ‘Fast Secure Tunnel’ over the Internet Reaches every corner of the world No CAPEX for HW/SW Fully Managed Service Routes around issues Russia Acceleration – How It Works
- 35. CDNetworks, Inc. | All Rights Reserved. 35 40kB static object before & after adjustment (CNAME change) Gain = (old time – new time) / (new time) = (490 – 68) / 68 = 621% 490ms 68ms Russia Acceleration – How It Works
- 36. CDNetworks, Inc. | All Rights Reserved. 36CDNetworks Confidential 36 Russia Acceleration – How It Works
- 37. CDNetworks, Inc. | All Rights Reserved. 37CDNetworks Confidential 37 Russia Acceleration – How It Works 0 500 1000 1500 2000 2500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 HTTP Performance (From Russian cities) Akamai CDNetworks San Jose Origin
- 38. CDNetworks, Inc. | All Rights Reserved. 38 Russia Acceleration - Online Security Without Russia Acceleration Security With Russia Acceleration Security attacks are absorbed, detected & defended against UDP Flood, ICMP Flood, SYN Flood, Application Layer Attacks, Ping of Death, Slowloris, Zero-day DDoS
- 39. CDNetworks, Inc. | All Rights Reserved. 39 Case Study – Archer Daniels Midland (ADM) Secure Sign In Search Features Media Rich Content (Images & Flash)
- 40. CDNetworks, Inc. | All Rights Reserved. 40 Case Study - Archer Daniels Midland (ADM) 24.5KB SOT 115% Reduction with CDNetworks With CDNetworks
- 41. CDNetworks, Inc. | All Rights Reserved. 41 Case Study – Behr Paints Secure Sign In Search Features Media Rich Content (Images & Video) eCommerce Rank in US 14,901 Sites Linking In 1319
- 42. CDNetworks, Inc. | All Rights Reserved. 42CDNetworks Confidential 42 Customer Case Study – Behr Paints 24.5KB SOT 118% Reduction with CDNetworks With CDNetworks
- 43. CDNetworks, Inc. | All Rights Reserved. 43 Russia Online – Do’s & Don’ts • DO partner w/ a trusted organization (U.S. Russia Business Council ), for strategic business planning • DO partner w/ a global CDN specializing in emerging markets (CDNetworks ), to ensure accelerated & secure website delivery & DDos attack mitigation • DO invest in a professional translation of your website & marketing materials • DON’T forget - SPEED MATTERS! • DO adapt online advertising & SEM campaigns to popular Russian platforms • DO establish a specific Russian customer service function • DON'T assume e-commerce conversion rates will be on par w/ developed markets • DO offer multiple payment options Source: Petukhova, Svetlana; Strepetova, Margarita (2012) : Broadb& internet access availability in Russia: Regional aspects, 23rd European Regional Conference of the International Telecommunication Society, Vienna, Austria, 1-4 July 2012
- 44. CDNetworks, Inc. | All Rights Reserved. 44 End of Presentation U.S. Russia Business Council Washington D.C. www.usrbc.org Moscow www.usrbc.org/ru Cdnetworks.com
Hinweis der Redaktion
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- Russia is attractive to businesses & investors across the spectrum of industry sectors for a number of reasonsAn abundance of natural resourcesWorld’s largest natural gas reserves & eighth-largest proven oil reservesAbundant steel, platinum-group metals, iron, coal, gold, uranium, etc.A geographic position linking the EU with China & East AsiaImportant transit corridorCould become an important link in a global manufacturing supply chain now that Russia’s in the WTOGood macroeconomic fundamentalsA decade of fiscal & monetary discipline has mitigated some of the risks for investors & created a significant cushion to future shocksStabilization Fund createdWorld’s 3rd-largest Foreign Exchange Reserves3.5-4% GDP growth expected over the near term after a slowdonLow sovereign debt: 10% of GDPHigh oil prices have driven growth across the economyA strong tradition in the applied sciences & mathematicsMany Western technology firms continue to locate R&D facilities in Russia for this reason140 million consumers with a growing, highly-educated middle class that has developed a preference for Western goods & servicesRussia’s middle class is also not highly leveragedRussia joined the WTO in August 2012
- Russia is the eighth largest economy in the world, measured by market exchange ratesRussia is a geographically vast market, spanning nine time zones & encompassing over 17 million square miles. In Russia, services are the biggest sector of the economy & account for 58% of GDP, yet it’s an area in which Russia is not particularly competitive. Russia employs 65% of its labor force in services (primarily in wholesale & retail trade followed closely by public administration, health & education). 27% of Russian workers are employed in industry & 8% in agriculture.Russia’s unemployment rate is currently at 5.4% Russia’s labor productivity is currently only 36% of that in the U.S., so there are significant gains to be made from improvements in productivity (source: OECD)Jobs created by FDI projects increased by 60% in 2012. This gave Russia the second position in job creation in Europe last year, up from sixth place in 2011. Moscow & St. Petersburg became the hot spots for technology investment. Source – Ernest & Young 2013
- As the main markets in Moscow & St. Petersburg have become saturated, more & more companies are looking to the regions to find new markets. Several of Russia’s regions have taken a proactive approach & are successfully marketing themselves to foreign investors. At the same time, they are undertaking legislative & tax initiatives to make their regions more attractive to investors. We provide here a sample of those regions that have been most active in courting foreign investment. Stavropol, Tatarstan & Ulyanovsk all host Special Economic Zones, where special tax & other incentives are provided to attract investors to those regions. USRBC member Ford Motor Company is a resident of the Alabuga SEZ in Tatarstan, where it has a manufacturing joint venture with Russian car company Sollers.
- The Russian government has focused a great deal of attention on modernizing the economy & diversifying away from a reliance on oil & gas.Right now, about 65% of export earnings, 50% of budget revenue & 25% of GDP come from oil & gas.The flagship project of the innovation efforts is the Skolkovo Innovation City, or innograd. Skolkovo was the brainchild of Prime Minister Dmitry Medvedev during his time as president. As such, one of the criticisms of Skolkovo is that it is too closely associated with Medvedev &, if he falls out of favor politically, the project could be jeopardized.There has been some controversy surrounding Skolkovo, from how the site was picked & the l& purchased to the transparency of its contracts with adjunct lecturers.However, President Putin recently approved an extension of Skolkovo’s funding & the project has not seen any decrease in support from the federal government since Putin’s return to the Kremlin.
- The European Union accounted for 41.6% of Russia’s imports in 1H13. China took the #2 slot, accounting for 16.3% of Russia’s import market. Ukraine trailed in 3rd place with 5.2%, Belarus had 5%, & the United States accounted for 3.5% of Russia’s imports in 1H13. Important to underst& Russia’s import profile – WHAT GOODS ARE THEY BUYING? Transportation Equipment (33.6% of the total)Machinery (23.5%)Chemicals (11.3%)Computers/Electronics (7.3%)GIVEN THEIR PREDILECTION FOR HIGH-QUALITY GOODS, THERE IS PLENTY OF ROOM FOR THE UNITED STATES TO GROW ITS PROFILE IN THE RUSSIAN MARKET
- Russia was the U.S.’s 31st largest export market in 2012.Russia accounted for 1.1% of total U.S. trade, making it our 20th largest trading partner overall in 2012.We expect to see even greater export growth over the coming years as a result of Russia’s accession to the WTO. The Peterson Institute estimates that U.S. exports to Russia could double over the next five years with Russia’s WTO membership.
- Russians are about half as active in financial markets as Europeans. Many reasons often given ranging from consumers’ lack of trust in the Russian financial system to low average income leaving little room for investment. However, Russian household debt is only around 10% of GDP, compared to 30% for many of its emerging market peers (according to Citibank), so there is room for consumer loan & credit card growth.There were 137 million debit cards & 54 million credit cards in use in Russia at the end of 2012, up from 91 million debit cards & 12 million credit cards in 2007.So, even though the number of credit cards in usage has grown by 350% since 2007, only about 40% of Russians hold credit cards today.
- Earlier this year, the NYT reported that Russians nowspend 60% of their pre-tax income shopping. This is he highest percentage in Europe. This is possible because many Russians pay no rent or house payments, owning their own home after privatization of state-owned Soviet housing. Russians have also had steadily growing real wages & real disposable incomes. According to a study by EY (formerly Ernst & Young), the average Muscovite has more monthly disposable income than the average Houston resident. Article Link: http://www.nytimes.com/2013/01/02/business/global/with-a-mall-boom-in-russia-property-investors-go-shopping.html?_r=0
- Russia is a high-risk, high-reward place to do business.Our members report double-digit growth in the market & are committed for the long-term.Despite the slowdown in the first half of this year, there is consensus that the economy will pick up in the second half & we will see 3.5-4% growth in 2014 & beyond. We are seeing some signs of this already.Given its wealth of talent in science, engineering & mathematics as well as the fast-growing consumer class & abundance of natural resources, Russia is well-positioned to become a leader in global economic development.It will be important for Russia’s leaders to tackle some of the systemic challenges facing the economy – such as corruption & red tape – in order for Russia to reach its full potential.
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- Talk about how we are the leading CDN in Russia & partnership with MegafonThis portion of the presentation will cover the status & challenges associated with Russia for global websites & the ways to improve access & performance in this growing market. CDNetworks is recognized as the industry resource for Global Cloud Acceleration, especially in Russia & other emerging markets. Our experience, in-country presence as well as a strategic partnership with MegaFon provide us with the credibility to speak on this subject.
- 1 - eMarketer2 - Y&ex3 – Internet world stats4 - East West Digital News (EWDN)5 - CIA world facts6 - http://www.russiansearchtips.com/2013/06/closer-look-at-russian-online-payment-jungle/7 - Internet world stats
- With a large %of internet users outside of major cities there is a lot of opportunity to reach these Russians with offerings online. This pie chart shows that almost 3/4s of all Russian Internet users live in the European part of Russia.The two capitals together (Moscow/St Petersburg) still account for a little more than a half of the market turnover, but the situation is changing little by little. In 2011, for the first time, several nationwide online retailers recorded regional sales exceeding 50%, having deployed or leveraged their own logistics & delivery capacities on a national scale. According to the Y&ex internet company & the Public Opinion fund, in 2011, the number of Internet users in the regions grew by 20% with rural areas accounting for 1/3 of the increase. Nevertheless the regional expansion of the Internet could be impressive if the quality of connection was better, experts note.Moscow & St. Petersburg still have the best internet in Russia in terms of speed & quality. But these cities have no room for further growth of internet usage because everyone who wanted to switch to the Internet has already done it. While the internet connectivity in Russia’s two capitals is close to the European level, the regional market is far from being saturated, Igor Didenko, a media expert & a member of the Youth Public Chamber, says. The fact that 93% of new internet users according to Y&ex’ report, live outside Moscow & St Petersburg is easy to explain, he says."Regions are usually behind the two capitals & other large cities in terms of internet access. However in some regions the number of internet users is growing faster than in the capital. They had worse starting conditions - a small number of users & as mobile connection & internet are getting more accessible in the regions, the services are getting cheaper.“47.7 % Penetration(% Population)http://english.ruvr.ru/2012_04In contrast to Europe, in Russia internet usage may grow thanks to the regionsIn contrast to Europe, in Russia internet usage may grow thanks to the regions.
- Source e-Commerce in Russia Report by AtalanARE PAYMENTS REALLY AN ISSUE?Payment methods can be a serious, while underestimated, obstacle for foreign retailers trying to enter so lucratively-looking Russian market. Integration with local payment providers in Russia should be planned at an early stage, as implementation itself as well as connected to it administration work are usually more time-consuming than it might seem. Y&ex.Money / Skrill probably is the easiest alternative today, & WebMoney should also be on the road map for any soon-to-be-launched e-commerce site targeting Russia.
- According to the Moscow times there are two new laws affecting Russian websites & users. 1. Russia Anti-Piracy Law: The legislation will come into force on August 1. It will allow copyright holders to ask courts to block access to allegedly pirated content as well as hyperlinks to such content. Whole websites can be blacklisted under the lawAnti-piracy law may even cause the biggest online encyclopedia, Wikipedia, to be blocked in the country2. Black Listing:Last November, a new law came into effect allowing government agencies to blacklist websites deemed to be promoting suicide, illegal drugs or child pornography.About 150 websites were on the blacklist as of July 1
- Internet availability in Russia Young people who own Smartphones & tablets use mobile Internet more frequently. But in contrast to Europe in Russia even in big cities the quality & speed of mobile internet often leave much to be desiredIn Europe you can have a fast internet connection for 1-2 euros a day if you use a local SIM-card. This solves many problems with the quality of the Internet. In Russia once you go outside a big city you get problems with internet access. Satellite internet connection is too expensive because of traffic.At CDNetworks we talk to many corporations that are unaware that their site is performing poorly in Russia due to the lack of reliable performance monitoring tools in Russia. Packet Loss measures the reliability of a connection. A known chunk of data is sent to the router & then the router is supposed to send the same data back unaltered (echo). In the case of something like ping, several packets are sent out over the course of a couple seconds. So, if 10 packets were sent out, but only 8 made it back, then that would be 20% packet loss; so the more packets that are sent, the more accurate the picture of what the actual packet loss is. In a perfect world 0% packet loss is what we all want - every packet we send out makes it to where it's supposed to go. In reality, some packet loss is probably going to happen, but as long as it is under 5% or so you shouldn't even notice. So just remember that the higher the packet loss percentage, the slower the connection will work because in most instances it has to send the same piece of information several times. With Russia internet connectivity & reliability problems 10% packet Loss is possible
- The speed of a website may be one of the most overlooked factors which could drive additional leads, revenues and search engine rankings for your organization.source: http://searchenginewatch.com/article/2085970/Why-Marketers-Must-Care-About-Site-Speed
- The speed of a website may be one of the most overlooked factors which could drive additional leads, revenues and search engine rankings for your organization.source: http://searchenginewatch.com/article/2085970/Why-Marketers-Must-Care-About-Site-SpeedAmazon found that every 100ms of delay reduced revenue by 1%. For a company as large as Amazon that can represent billions of dollars of lost revenue. Bing found that a 1 second delay in load time led to 2.8% drop in revenue. A 2 second delay saw revenue fall by 4.3%.Yahoo found that a reduction in page load of 400ms caused a 5-9% drop in traffic.Google published a study that showed when a slight delay was added to web searches – as little as just a tenth of a second – searchers used Google up to 0.6% less, and this behaviour continued for as long as 6 weeks after the delay itself was removed. This shows that users not only noticed the difference and altered their behaviour, but also that they continued to avoid the site for many weeks later. More dramatically, Google found in another experiment that increasing the number of search results on a page from 10 to 30 – and consequently increasing the load time of the page from 400ms to 900ms – led to 25% reduction in traffic. Source: http://www.seoandy.com/optimisation/website-performance-seo-5-easy-tips-and-hacks-to-speed-up-your-site/
- 4 - 2013 Global Corporate IT Security Risks surveyRussia DDos Attack Activity Timeline 2013 Q1 March: 100's of millions of people in Europe affected by series of "bazooka" attacks Presenter Notes: The web firm Cyberbunker, in cooperation with other web firms & “criminal gangs” from Eastern Europe & Russia attack network providers CloudFlare uses for b&width affecting 100's of millions of people in Europe
- Just an fyi - This is the Marussia B2. Russian sportscar.
- Faster site = more revenueThis proven technology reduces the number of data round-trips necessary to complete an internet-based trade request, thus accelerating performance & virtually eliminating a bad user experience due to latency.
- Archer Daniels Midland Company was founded in 1902 and is one of the largest agricultural processors in the worldThey are headquartered in Decatur, Illinois They operate processing and manufacturing facilities across the United States and through extensive global distribution facilities
- Founded in 1947, Behr Process Corporation is one of the largest suppliers of architectural paint and exterior wood care products to the United States and Canadian do-it-yourself channelBehr manufactures paints, decorative finishes, primers, stains and surface preparation productsBehr is a subsidiary of Masco Corporation and is headquartered in Santa Ana, CA
- DO Partner with a trusted organization (U.S. Russia Business Council ), for strategic ongoing business planning info DO partner with a global CDN specializing in emerging markets (CDNetworks ),to ensure safe, accelerated & secure website delivery DO invest in a professional translation of your website & other marketing materials, both upon entry & with ongoing updates. A Russian-language website is a necessity 10% of Russians speak a foreign language, & even fewer would consider making transactions on a non-Russian website. , as less than DO adjust your social media strategy to the unique features of the Russian market. Russians are the most avid users of social networks in the world, but they use Russia-specific networks like VKontakte & Odnoklassniki, which have different nuances DO adapt your online advertising & SEM campaigns to the popular Russian platforms. Y&ex has twice the market share of Google in Russia DON’T forget- SPEED MATTERS! DO establish a specific Russian customer service function. Russian consumers expect to be able to connect to a real person either by telephone or online chat, & in the Russian language. DON'T assume e-commerce conversion rates will be on par with developed markets. Russian consumers are wary of new companies & br&s, & require multiple reinforcement of the br& messages before becoming comfortable enough to buy. Testimonials from Russian customers, Russian blogger reviews, Russian PR placements & other Russian-specific marketing efforts will encourage such confidence. DO offer multiple payment options. There are dozens of payment methods in Russia, with the most popular being cash on delivery. Russian consumers are wary to part with cash before physically inspecting the goods. DO have patience. While it's true that Russia has a larger online population than Germany, it's also true that only a small fraction of Russian users are active e-commerce consumers. However, retail in Russia is certainly more lucrative than in many other markets, & the expected growth in e-commerce is several times higher than can be expected in the developed markets of Europe & North America. Come to Russia for the future, not the present.