Publication date:
Publication from:
Ukraine’s digital transformation is reaching a new level, where software is no longer merely a technical tool. Today, it is about operational resilience, data protection, client trust, and the investment attractiveness of companies.
As part of the Hostile Software project, the IT Ukraine Association, together with students from the Sociology programme at the Ukrainian Catholic University, conducted a study titled “Research into the Experience of Ukrainian Businesses That Have Transitioned — or Are Still Transitioning — Away from Russian Software to Safe, Alternative Solutions.” The methodology included in-depth interviews with representatives of small and medium-sized businesses (accountants, managers, co-founders, and IT specialists). Sample size: 10 interviews.
Notably, this research served not only as a contribution to industry analysis, but also as a practical case study for training future professionals. The findings were also presented at the Tech360 conference.
According to the research, over 70% of Ukrainian companies still use Russian or Belarusian software. Meanwhile, the CERT-UA team of the State Service of Special Communications processed 5,927 cyber incidents in 2025, in which software of Russian origin frequently served as the entry point. The data underscores a clear message: the question of safe software is now an integral component of cyber resilience and business continuity under high-risk conditions.
The study covered business representatives from a range of sectors — from agriculture and finance to retail, energy, and IT. Despite differences in company size, businesses face a shared challenge: legacy digital solutions no longer meet the demands of today’s market.
According to the research, prior to the full-scale invasion, the most widely used systems were 1C, Bitrix24, and BAS Corporation. However, the full-scale war significantly changed companies’ approach to software selection. Whereas decisions were previously often driven by habit, the availability of specialists, or implementation costs, businesses today evaluate their digital infrastructure through the lens of risk, stability, and long-term effectiveness.
One of the primary drivers behind the shift from hostile software to safe alternatives has been cybersecurity. The full-scale war has fundamentally changed how businesses regard their digital infrastructure. Companies are increasingly recognising that software is part of a critical business management system.
The use of hostile software creates risks for financial data, client databases, internal processes, and operational continuity. Large-scale cyberattacks during the war have only heightened this awareness.
Equally significant has been the factor of reputation and trust. Investors, international partners, and clients are paying ever greater attention to the level of digital security, the transparency of management decisions, and a business’s technological independence. For many companies, moving away from Russian software has become part of a broader strategy of resilience and responsible governance.
Businesses also highlight the technical shortcomings of legacy systems. Many products have seen virtually no development for years: companies encounter a lack of updates, frequent errors, integration difficulties, and limited scalability. A further challenge is the separation of management and financial accounting across different systems, which complicates data handling and decision-making.
A growing number of companies are also aware of the ethical dimension. Paying for licences for Russian software effectively means contributing to the budget of the aggressor state. For businesses working with international partners or building a long-term reputation, this factor can no longer be ignored.
To replace Russian and Belarusian solutions, Ukrainian businesses are increasingly adopting international and local ERP systems. According to the research, the most widely used include Microsoft Dynamics 365 Business Central, Odoo, IT-Enterprise, and MASTER Accounting.
The study also found that for analytics and communications, companies are actively migrating to Microsoft Power BI, Microsoft 365, and Microsoft Authenticator.
When selecting a new solution, businesses today evaluate functionality and ease of integration. Companies identified their top five requirements for new software: implementation and customisation costs, interface usability, adaptability to Ukrainian legislation, technical support, and the reliability of the software developer.
Despite the clear advantages, the transition process remains complex. According to the research, the main difficulties are most often linked not to the technologies themselves, but to internal organisational change.
Finance and accounting teams are particularly sensitive to the transition, as process stability is critical for them. Employees are accustomed to legacy interfaces, and changing systems requires retraining and adapting to new workflows.
A shortage of specialists presents an additional challenge. Modern ERP systems require narrowly specialised experts, who are currently in short supply on the market. This drives up implementation costs and extends project timelines. Businesses also encounter hidden costs: international solutions frequently require extensive adaptation to Ukrainian accounting standards and local business processes.
The research shows that a successful transition is a management process, not an IT project. Companies that migrate effectively involve senior management and the chief accountant from the very first stages, invest in staff training, prioritise internal communication, and thoroughly document all technical requirements before work begins.
The key mistake is treating the transition purely as a technical task. In reality, it is a transformation of business processes, the management model, and the company’s entire approach to digital resilience.
A key conclusion: Ukrainian businesses are gradually moving away from the “change only when absolutely necessary” mindset towards an approach where digital infrastructure is regarded as a strategic asset.
The IT Ukraine Association has been systematically working on the Hostile Software project and building a safe digital ecosystem for Ukrainian businesses since 2023.
The market already offers a sufficient range of quality solutions for companies of any scale — from micro-businesses to large enterprises with complex processes. The question today is therefore no longer whether safe software exists, but how quickly companies are ready to integrate it into their own resilience and development strategy.
We extend our gratitude to the students of the Sociology programme at the Ukrainian Catholic University for conducting this research jointly with us and for their contribution to the broader discussion on business digital security. Collaboration between the academic community and the IT industry is essential for developing practical approaches to the digital resilience of Ukrainian companies.
