How to replace Russian software and why it is important for Ukrainian entrepreneurs to do it

In an article for the Diya.Business portal, founder and CEO of Innoware, Dmytro Popinako, told why it is so important for Ukrainian entrepreneurs to replace Russian software as soon as possible and how to do it.

A large number of Ukrainian enterprises still use Russian software for business management, moreover, some do not see a threat in this and the sense of changing it. Let's figure out whether it is really necessary for Ukrainian businesses to abandon the use of software developed by the aggressor country.

Why is Russian software dangerous?

In 2023 By order of the President of Ukraine No. 227/2023 a law on a complete ban on the use of Russian accounting systems in state organizations and institutions was enacted. However, this ban currently does not apply to private enterprises. But what should private companies take into account, think about and weigh about the government's recommendation for public institutions?

Information security enterprises are an integral part of the economic independence of our country. Cyberspace has become a place of economic struggle.

Ukrainian enterprises are constantly attacked by hacker groups, which aim to stop the activities of companies and inflict the maximum possible economic losses. Thus, in 2016, Ukrainian enterprises became the object of a massive attack: the Petya virus was introduced into corporate networks, which destroyed a large amount of data and paralyzed the activities of many businesses. Some companies that were attacked and lost data were unable to resume operations and were closed.

A similar attack was repeated in 2017 due to the NotPetya virus. And, unfortunately, a lot of enterprises were affected a second time! The way the virus was spread was highlighted in the press — it was introduced through the kernel of a distributed reporting software product, which was most likely accessed by enemy intelligence agencies. After these attacks, Ukraine introduced a ban on anti-virus products originating from the country from which the cyber-aggression was carried out. Businesses that still use Russian software to manage their business are vulnerable because these software products can be used as a "Trojan horse" to harm companies: spying, changing and deleting data.

In addition, there is also an ethical argument: we must not forget that by buying and using the products of the aggressor country, Ukrainian enterprises support the Russian economy.

The funds that Ukrainian companies spend on the purchase of licenses are indirectly a source of income for the aggressor country, that is, we stimulate the income of companies that pay taxes to the budget of the country that launched a full-scale invasion and thus help finance the manufacture of weapons directed against us.

In addition to moral damage, the risks posed by the use of Russian software for Ukrainian companies can be conditionally divided into two groups:

Information risks:

• Risk of unauthorized access to the system
• Data loss
• Distribution of commercial confidential information

Organizational risks

• Problems with updating systems and the impossibility of purchasing additional licenses
• Risk of prohibition of use at the state level
• Restrictions on further use of the system by the software manufacturer

It is also necessary to take into account the fact that despite the introduction of sanctions against Russian software products, the Russians continue to look for ways to circumvent the bans by changing the nominal owners and the names of companies and products. Thus, the product of the aggressor country still remains on our market, which is presented as the successor to 1C under the new name BAS.

Why do Ukrainian businesses still use Russian software? 

The implementation of any new solution requires a certain investment of time and funding, and for many Ukrainian entrepreneurs this is a sufficient reason to continue to stay with operational processes built on a Russian software product.

Underestimating the risks of using the software of the aggressor country can play a bad joke with such companies.

In order to secure their business, managers of Ukrainian enterprises should start as soon as possible transition from Russian software on other, safe-to-use accounting systems, of which there are actually quite a few in Ukraine. That is, there are actually a lot of possibilities. So, for example, world-famous software developers offer enterprises solutions for small and medium-sized companies, which are positioned as analogues of Russian software, which have the support of Ukrainian legislation and successful experience of implementing systems in Ukrainian enterprises for decades.

How to choose a solution and what to focus on?

The most important requirements for the system are three points:

1. The software solution should give management the tools to plan and manage resources and processes, as well as control the entire business. If the new system will be of international production, it will provide an opportunity to compare with companies operating in developed markets in terms of production and management, and therefore to approach them in terms of the efficiency of these processes.
2. The decision must meet the requirements of the tax legislation of Ukraine and regulations of Ukraine and be regularly updated with the release of new laws.
3. The solution should allow management, accounting, tax records, as well as personnel records and payroll.

Yes, our Ukrainian accounting is still not perfect, but still, albeit little by little, it is being transformed to international standards. With the end of the war, we will all expect liberalization and changes in accounting rules as part of the country's economic development. Changes will also be due to the active integration of Ukrainian business into international markets.

Therefore, my recommendation to the Ukrainian business community is not to delay.

There will be no Russian software in Ukraine. Do not wait for an official ban on the use of Russian systems or new hacker attacks, choose the solution that will suit your business and start the transition to secure software now.

The original article is on Action. Business.