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Industry to Try IoT

Source: Commersant

DFVT invests into Visitech.

The Sakhalin-based Visitech that develops solutions in the industrial IoT and industrial safety software will receive RUB 100 million from the Far Eastern High Technology Foundation (DFVT). Enterprises have demand for such solutions but they are hard to implement, and Visitech technologies do not look promising for the large industry, the experts note.

DFVT founded by Rusnano, the Far East and Baikal Region Development Foundation and the Russian Venture Company, will invest RUB 100 million into Visitech, the Sakhalin developer in industrial Internet of Things (IoT) and the industrial security SW developer. The transaction will be closed during a month, told Ruslan Sarkisov, Head of the Foundation, to the Kommersant. DFVT will get a stake of not disclosed amount in the company. It is the second investment for the foundation created in August 2018 (about the first one, read the Kommersant issue of May 31).

Founded in Yuzhno Sakhalinsk in 2015, Visitech is a Skolkovo resident. Among its co-owners is Eldar Razroev, former Euroset head (2% in Visitech LLC). The Company develops software to monitor production processes in terms of security, predictive analysis of accidents and their investigation. Revenues came to RUB 123 million in 2018. Among its customers are Rosneft, Gazprom neft, T Plus and MMC (that confirmed using Visitech solutions). The Company will channel the received foundations to R&D and opening a rep office in the Russky Island.

«It is a competitive solution demanded for by the market that is currently estimated at RUB 10 billion and is to double in three years», noted Ruslan Sarkisov.

The Foundation representatives specified it concerned the whole market for Environmental, HealthandSafety (EHS) that includes occupational health, environment conservation and industrial safety. Russia has a large market for corporate security digitalization solutions, Alexander Chachava, partner of LetaCapital, agrees. However, he specifies that startups “work rather well” here at the pilot stage and many problems are identified during industrial operation: high cost during scaling up, difficult labor conditions that result in breakdowns or growing costs.

Sergey Negodyaev, Head of Portfolio Companies Relations Division, Internet Initiatives Development Foundation, points to the «not always obvious relations between new technologies and the economic effect” as to one of the obstacles in the segment development. Besides, he adds, production companies «remain conservative customers», and startups’ cases are not always well-proven and successful.

The entire Russian market of industrial IoT may grow to RUB 270 billion by 2020, says Andrey Filatov, General Manager of SAP CIS:

«It is important for industrial IoT development that a sufficient number of equipment manufacturers, relatively cheap and diverse probes in terms of safe data transmission and storage methods, providers’ high speed and reliable software will emerge in Russia.»

In his opinion, solutions in this field may trigger a 10%-30% leap in productivity. But it will be increasingly difficult to deal with solutions for industrial IoT only: customers want to have holistic or almost seamlessly integrated systems, the representatives of Redmadrobot analytical center add.

Market players call the RUB 100 million investment as «sufficient». But a «mature solution» takes six to ten times greater investments, specifies Alexander Chachava. The Kommersant source on the market is even more pessimistic:

«The Company’s current products resemble BusinessIntelligence to a greater extent. But to create the full-fledged solutions for industrial enterprises, it takes another class and level of developments».

Author: Dmitry Shestoperov

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