Russian software reseller Softline, which has recently opened an office on the Romanian market, expects a USD 0.5 million turnover from the local subsidiary in the first year of activity, with most of the revenues coming from the re-sale of Microsoft products. “Around 35 to 50 percent of the sales will come from Microsoft products, followed by the security software, with around 30 percent, and then by virtualisation and business applications,” said Ivan Klimov, business development director with Softline Group (in picture).

The company will focus on the small and medium companies market, as well as on the upper middle market, offering them software from more than 15 producers. Softline is planing to gradually add services to the package.It sees several drivers on the local software market, among which the use of EU funds, as well as the public sector IT projects. However, the 65 percent piracy rate in Romania and the slowness of the public acquisitions in the country are seen as inhibitors for the software market. Softline also puts hope in partnering software vendors not yet present in Romania, as well as in distributing local software to the other markets where the group is present.

The Romanian IT&C market was of around EUR 8.2 billion in value last year, down 12 percent on the previous year. Software and services exports amounted to EUR 640 million in 2009.

The Romanian office is the firm's first subsidiary in the European Union, with most of its activity grouped in the Commonwealth of Independent States (CIS).  Last year, the company posted revenues of USD 290 million across the 19 countries where it runs businesses and hopes to increase this turnover to above USD 1.1 billion by 2014.

The Romanian subsidiary is headed by Radu Crahmaliuc, regional director for Softline Romania. Crahmaliuc has previously worked as editor in chief with ComputerWorld Romania.

Corina Saceanu (corina@romania-insider.com)