Siberia - The Next Silicon Valley?

eldavojohn writes "CNN Money is running a story about Siberia's rising tech industry.The movement towards tech is centered in Akademgorodok (Academy Town), with a 15 percent annual increase in the number of firms. Even though the area industry's worth is still fledgling compared to other areas, the growth cannot be ignored. 'President Vladimir Putin has also taken note, backing the construction of a $650 million technology business district with $100 million in state funding for infrastructure. "We simply mustn't waste this chance," Putin declared in Akademgorodok following a 2005 trip to tech-savvy India, "especially as other countries have achieved success without such a strong starting position." High tech is the sort of thing that the Kremlin, realizing that Russia's natural resources can't last forever, would like to develop.'"

Comments

Server Farm

[jshriverWVU]

I've always wondered why someone hasn't put up a huge server farm in places like Alaska or Russia. From my underestanding a big "cost" is in the cooling. If you can recycle outside air to keep the place cooler that's a free resource.

Re:Server Farm

[zlogic]

Actually it may become too cold. -40C (which is a common winter temperature in a lot of regions) makes diesel fuel freeze and materials shrink, which is bad since every material shinks differently and things like heatsinks may break. And low temperature causes water to condense, which is just the same as dropping the server in a bucket. The result? Servers would need to be heated, replacing a cooling bill with a heating one.
Not to mention that 3000+ km of fiber is extremely expensive.

Re:Good Essay on the Matter

[SerpentMage]

I read the article and have to disagree. I would have agreed to the article pre-9-11-2001, but not anymore.

Here is why:

1) Sabarnes Oxly is making it harder for corporations to do business. You can argue about its merits or lack of, but it makes life more complicated.
2) Immigration is becoming truly difficult in the US.
3) Travel within the US is becoming downright ugly due to the overdone security constraints (eg SSSS on your ticket is the kiss of guaranteed delays and pains.)
4) IP and patents are getting in the way of doing business. Lawyers are trigger happy to sue and it is taking its toll.

So while the US has many good attributes it is becoming more and more difficult for people who want to build technology. Just last week I was talking to other speakers at a conference and they were becoming concerned on the over-regulation and over-complication of the technology industry.

The climate is tough there

[roman_mir]

I was born in Ukraine in the former USSR and lived in Yakutia (North East of Siberia) above the Arctic Circle for 6 years. I can tell you this: it's freaking cold in the winters. Of-course it can be a plus for development of more indoor activities, like computer programming.
--

By the way, here is something from the article that I think can work both ways:
The low cost of rent, services and salaries - roughly one-fifth of Western prices - appeals, but so does a system that builds on the foundations of science to produce programmers. "None of our programmers in Novosibirsk are programmers by education," Intel's Chase says. "They are physicists, chemists, biologists, mathematicians. They are, first of all, scientists. Secondly, they learn how to program as an afterthought." - I am sure there are brilliant scientists among those people, but I cringe every time when I hear about the scientists turned programmers as an afterthought. They will not produce modular easy to maintain and understand code. They just can't. They will solve problems with their code though, I am sure, and probably this fact will substitute for a lot of problems in the code structure itself, but I had to maintain/fix code designed by people like that (HydroOne and Avema contracts are some of the examples,) the code will suck. But so what, the bad code and the cold weather are not the worst problems in Russia. The worst problems are these: the government that is unwilling and incapable to prevent crime against business-people, the government that actually feeds on the crime against business-people.

Do not expect Russia to become a place where the next Silicon Valley will be born within the next three decades at least. The main problem is that there are no investors in their right minds who can expect reasonable return on investment, because their money can disappear in a flash and not even due to a bad business plan or bad coding, but simply because the local mayor's office will tell the owners that the building, where the people are working is not fire safe or water proof or bird shit proof or whatever the story is this week, and the business will be closed until large amounts of money exchange hands. Then the same story will repeat itself the next week. Oh, and the competition or whoever decides that they are competition will not bother trying to build a better product, they will just hurt/kill the business owners one by one if their demands for lots of money are not met, etc.