Russia’s Energy Giant Ditches Reliable SAP for Inferior Local Software, Sparking Concerns

Rosseti Tyumen has allocated $148.2 million to replace SAP with the Russian 1C system in its asset management operations. The project, expected to take 10 months, highlights the growing shift away from international technology—a move that raises concerns about efficiency and transparency.

A Risky Replacement

Rosseti’s decision to abandon SAP, a globally trusted software system, in favor of 1C stems from government mandates pushing for local alternatives. However, the choice to rely on domestic software raises questions about the reliability and effectiveness of the replacement.

SAP, a well-established software solution used by global companies for decades, was ousted from the Russian market in 2022. The decision to replace it with 1C may not provide the same level of performance, given the complexity and scale of Rosseti’s operations.

Potential Impact on Efficiency

The project aims to automate critical processes and improve system efficiency, but the switch to 1C might have unintended consequences. The domestic software’s ability to handle the scale and sophistication of Rosseti’s operations is untested at this level, leading to potential disruptions in service or unforeseen costs in the long run.

Cost and Time Concerns

The $148.2 million budget for this replacement is significant, but whether it will be enough to cover the long-term challenges of switching to less-proven software remains uncertain. The timeline of 10 months is also tight, and any delays could further escalate costs or impact operational stability.

While Rosseti continues to phase out SAP, the broader shift raises serious concerns about the future reliability and effectiveness of such systems in critical infrastructure. The push for domestic alternatives, while politically motivated, may come at a cost to overall performance and service delivery.