Russia’s Sberbank developing domestic cloud infrastructure following sanctions

In a significant development, Russia’s top lender Sberbank said, it is developing an entirely domestic cloud infrastructure following Western sanctions which have caused issues with its foreign cloud partner.

Western countries have imposed sanctions on Russian banks. Sberbank has started developing technology and cloud services in an attempt to combat not only Western sanctions but also the industry-wide trend of shrinking margins.

Despite its public assurances that Western sanctions were having a limited impact on its operations, Sberbank has begun reporting issues in the functionality of smart home devices, such as lamps and sockets, from mid-April.

Other gadgets, including its TV streaming device and advanced smart speaker, are continuing to working normally.

Last week, SberDevices blamed the problems on the cloud infrastructure provided by its Chinese partner Tuya.

“We created a hybrid solution based on Tuya’s own cloud platform and infrastructure,” said a representative of SberDevices. “At the same time we have been developing an autonomous solution and now we are continuing active work on infrastructure that is completely independent from foreign services, based on our own cloud.”

Tuya did not immediately respond to requests for comments.

Last week, the Russian Foreign Ministry had acknowledged the risks of secondary action on Chinese companies if they help Russia circumvent sanctions, but said, it expects cooperation between the two countries to increase despite these threats.

Sberbank said, it has also upgraded its servers located in different regions across Russia.

With increased restrictions across its strained global supply chains, Russia has increased efforts to develop its domestic technology industry, to better shield itself from any hardware or software issues.

While it continues to resolve problems SberDevices said, it has advised retailers to suspend sales of its smart home devices, for now.

Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

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