The Italian company active in corporate networking will reap the first fruits of the investments made in South America and in the implementation of custom projects for large accounts with an international scope.Exploration activities in China, Japan and the United States get underway.
Tiesse, in its 18 years of existence, has built an offer in the corporate networking sector able to excel compared to that of the big players in the sector, all American and Chinese multinationals, as demonstrated in the recent Enel tender for the 'Puglia Active Network’ project. The international activity of the Italian company has for years been managed based on specific opportunities indicated by customers, while since the beginning of 2014, Tiesse has decided to launch a programme for the development of foreign activities in an organic manner, albeit gradual, focusing on two axes: geographic and custom projects. From 2016, this more strategic international vision will begin to bear the first significant fruits. We talk about all this with Fabrizia Montefiori, Chief Executive Officer of Tiesse.
What do the two programmes that give substance to your international strategy consist of?
Geographical development, once having identified the target country, entails looking for a local partner expert in the field to assign the assessment of compliance of our products with the needs of the local market and then verifying the interest of the major players, the most important telecom operators, in evaluating a new and competitive offer compared to the traditional one. Custom projects, on the other hand, are addressed to large international corporations, which prefer to find the necessary networking skills in qualified industry partners, such as Tiesse, which can ensure the continuity of developments and subsequent certifications of network systems to be applied and integrated into more complex devices, so as to support their remote control and management, according to the IoT model.
What is the status regarding implementation of geographical development?
Two years ago we approached the Latin American market, opening a business office in Sao Paulo, followed by one of our expert consultants who was assigned the task of exploring the interest of the major telecom operators in adopting our technologies. Having obtained a positive feedback, it became essential to select as partner a distributor already present with a widespread sales and support organisation. Thus we recently came to sign an agreement with CLM Computing, a large company based in Sao Paulo with branches in the main South American countries.
And as regards custom projects?
That's a different story, since Tiesse has always found concrete demand from custom project customers aimed at providing complex devices deployed on an international scale with the networking functionalities required for their monitoring and management.
The propensity to assign activities of this type to companies such as Tiesse stems from the objective difficulty of customers to implement in house projects on such rapidly and significantly evolving technologies that also require constant and complex certification at the laboratories of the leading telecom operators.
What can you tell us about the programmes for 2016 and for subsequent years?
On the geographic development front, thanks to the experience acquired in Latin America, we have launched new exploratory activities in China, Japan and the United States.
Larger, more interesting and, of course, more difficult markets, where potentially our products can be successful. The example of Imola Smart Grid, that recently won the important tender for the automation of the Enel network in Puglia, shows that our offer is absolutely competitive compared to that of the main global leaders. A product with innovative characteristics, internationally applicable in a sector of great potential for the coming years. As for custom projects, it is reasonable to believe that, in general, these will increasingly enjoy significant growth worldwide. Also in this case, therefore, the potential for Tiesse is very interesting: we are in fact able to provide highly complete and innovative technologies, in terms of hardware, protocols and network functionality.
Actual and expected results?
In 2015, our export turnover reached 9% of the total, while in 2016 we expect it to exceed 20%, thanks to the orders already in the backlog and without considering the exploratory activities. If, as we believe, also these initiatives will be successful, the foreign turnover of Tiesse could reach 50% of the total in 2017/2018. But I would prefer to talk about this at the end of 2016.