Cybernetica's CEO Oliver Väärtnõu reflects on the year's biggest projects, key lessons learned, and why 2026 could be the most opportunity-rich year in the company's history.
Which projects made the biggest impact on Cybernetica this year?
Several projects made a significant impact on Cybernetica this year. Here are some important milestones for us.
At the beginning of the year, we signed an extensive maritime rescue and GMDSS project in Europe, which we have been working on intensively for the past ten months. Today, the system is gradually going into operation. This project is important to us for two main reasons. First, it is the largest maritime rescue system Cybernetica has ever delivered. Second, through this project, we essentially rewrote the value proposition of our maritime surveillance product.
The result is one of the most technologically advanced nationwide maritime rescue solutions in the world. What makes it different is that the entire system is built on web technologies. Both VTS and radio communications can now be controlled through a web browser. In the past, these functions relied on multiple separate desktop applications; today, they are unified within a single web-based platform. In addition, the solution is designed as an open platform and is integrated with more than a dozen external systems that are essential for mission execution. We are truly grateful to the client for placing their trust in us and very proud of our team for delivering such a complex solution.
The second project worth highlighting is our collaboration with one of the world’s largest international financial services providers, which signed a long-term contract with Cybernetica for the adoption of our SplitKey technology. To Cybernetica it is one of the first of these kinds of references. The provider integrated our core technology into its application to enable universal authentication. In the coming year, this solution will be rolled out globally, marking a major step forward in the adoption of Cybernetica’s cryptographic technology.
Third, I would like to highlight the completion of the European Defence Fund-sponsored Secure Digital Military Mobility (SDMMS) project. This was a three-year effort coordinated by Cybernetica and involved 11 EU member states and 12 organisations. Now that the project has concluded, we are seeing strong interest from member states in adopting the solution for coordinating troop movement across Europe. 2026 will be a pivotal year for the platform, as our focus shifts from development to deployment.
How would you describe 2025 for Cybernetica? Does this align with trends for the IT sector in general?
Despite Estonia's challenging economic situation, 2025 has been a positive year for Cybernetica. We have continued to grow, and when viewed in the context of broader sector trends, our performance has been strong.
That said, there are also concerning developments. Inflationary pressure remains high, with Estonia currently experiencing the highest inflation rate in Europe. Combined with a struggling economy, this has significantly intensified competition within the IT sector, particularly in public procurement. As a result, hourly rates in Estonia have dropped to abnormally low levels, creating a situation that probably is not sustainable for the industry in the long term.
At the same time, the AI hype continues. Even when a product is not directly related to artificial intelligence, there is an expectation that it should incorporate AI in some form, or at least present a narrative for it. This reflects both the opportunities, but at the same time causes unnecessary strain on companies and products.
Finally, there is a growing awareness that IT systems inherently come with (information) security risks. As a result, organizations are increasingly investing in cybersecurity. In this area, Cybernetica is well positioned, the trend aligns strongly with our core competencies.
What are your biggest takeaways from this year?
Looking back on the year, the most important takeaway for me is the value of a trustworthy and committed team. Our projects and long-term success are only possible when you can truly rely on the people around you. This year has reinforced how essential trust, competence, is when tackling complex challenges.
Another key lesson for me is the importance of making bolder decisions. There were moments when we hesitated or waited longer than we should have. In hindsight, it is clear that we need to act more decisively – both when it comes to internal restructuring and when launching, sustaining, or ending strategic initiatives. Momentum matters, and leadership sometimes means choosing clarity over comfort.
Finally, this year confirmed the value of our long-term strategic focus on defence and security (particularly in cybersecurity, but not only). Cybernetica made a deliberate decision to enter this domain more than six years ago, and today we are seeing the results of this decision. We now have a strong and growing portfolio of defence-related projects, and we are convinced that this was the right strategic choice.
What was the most exciting opportunity for Cybernetica in 2025?
Brazil continues to be a very significant opportunity for us. Over the past two years, we have been working there in close cooperation with Valid, initially in the areas of secure data exchange and national interoperability, and more recently also in the domain of cybersecurity. This is very much a long-term investment, but I believe the groundwork we have laid will begin to produce tangible results in 2026 and 2027. We see strong potential in the market and are prepared to invest even more in Brazil and in Valid going forward.
Another important opportunity that we managed to close was Malaysia signing a long-term UXP contract. This new three-year agreement confirms Malaysia’s confidence in Cybernetica’s UXP technology but also represents a stable long term business opportunity for us.
On a more personal note, several international engagements stood out this year. The World Government Summit in Dubai was particularly exciting, where we participated together with the Tony Blair Institute for Global Change. Furthermore in 2025, in cooperation with TBI, we developed a methodology and began conducting cybersecurity assessments for countries. Moldova became the first country to use these services.
Finally, the VVKI (Crisis-proof Government Information System; fka VIIS, Government Meetings Information System) project deserves special mention. Estonia’s digital state is well known for its flagship solutions like X-Road and digital identity, but VIIS is another powerful calling card. It is the number one system showcased to foreign delegations, demonstrating how the Estonian government benefits from digitalisation. Internally, the renewed concept of VVKI is also especially meaningful for us: it is a system we have wanted to redesign for some time, and we are excited that we will finally have the opportunity to do so.
What do you expect of 2026?
Looking ahead to 2026, I expect Estonia’s economic situation to remain largely unchanged. We are unlikely to see meaningful growth in the domestic market—except in the defence domain—and competition, particularly in our sector, will become even tougher. What I find disappointing is that Estonia’s digital government is unlikely to undergo the kind of bold, strategically driven acceleration it should.
That said, I strongly believe in our team and in the potential ahead of us. Projects such as SDMMS, the digital identity wallet, VIIS, and our maritime surveillance initiatives globally all represent significant opportunities. We are making some really interesting and quite big bets on our cybersecurity value proposition, especially on the product side – more to come about this during 2026! To fully realise this potential, however, we need to place a stronger internal focus on efficiency - doing things even better and more effectively so that the value we deliver continues to grow.
I am also very encouraged by the progress on Cybernetica’s R&D side. We are steadily improving our ability to secure grants and participate in research programmes. What is particularly positive is that the R&D unit in Cybernetica is increasingly working hand in hand with our business lines – for example, driving the adoption of new key new technological capabilities such as post-quantum cryptography into our products. This close collaboration across the organisation is one of Cybernetica’s key strategic strengths and will be even more critical going forward.
Overall, I remain optimistic about the year ahead, even though the broader economic environment and global situation will continue to pose challenges. From Cybernetica’s perspective, we are facing an exceptional range of opportunities. In fact, I believe Cybernetica has never had as many promising opportunities for growth as we do now.