In a strategic leap, AZLOGICA®, a pioneer in IoT and AI technologies, announces its expansion into the North American market. This ambitious step aims to capitalize on opportunities in one of the world’s most advanced and competitive technological landscapes. It not only signifies business growth but also a readiness to meet the sophisticated demands of a developed market. Here, we uncover the ideas behind this significant expansion, its motivations, strategic objectives, and the unique value propositions that AZLOGICA® will bring to the United States with this operation
With 16 years of experience, presence in ten countries across Europe and America, and recognition as one of the leading Latin American companies in the development and implementation of Internet of Things and Artificial Intelligence solutions, AZLOGICA® announces the commencement of operations in the United States. This expansion is driven by market demand, strategic growth opportunities, and the company’s inherent international focus.
From day one, AZLOGICA® was born as an international company with the ambition to expand easily into any market. Now, North America, a region renowned for its advanced technological infrastructure and openness to innovative solutions, presents itself as fertile ground for AZLOGICA®‘s services.
Edgar Salas, the company’s CEO, considers that while the specific needs of the U.S. market, the company’s accumulated experience, and its high technological capabilities have converged to make this the right time for expansion, the partners and allies have also played a crucial role. They have consolidated the idea of aggressively and decisively addressing the needs of this region.
However, this strategic move is not just about meeting demand. The United States represents positive growth, greater visibility, and the opportunity to position the company at a quality standard level in line with this market. Optimizing the company’s work structure is based on a solid integrated management system that complies with the regulatory framework of each country. Success in the U.S. will also mean positioning AZLOGICA® for further expansion into other territories.
Market Opportunity, Technological Equity, and Growth
Although these North American operations will focus on Colorado, a state chosen for its strategic advantages, including strong ties with academic institutions and some strategic allies, AZLOGICA®‘s coverage aims to be federal, encompassing the entire country. These allied entities or partners provide substantial support for a clear and aggressive vision with this central location, allowing easy expansion to other states, including Virginia, Washington, New York, and Florida.
Despite its presence in other international markets, AZLOGICA® sees unique opportunities in the IoT and AI sectors in North America. One of the company’s three strategic pillars, technological equity, now plays a crucial role in identifying and addressing these opportunities. “We have seen that using the highest technology available globally,” says the CEO, “has helped us discover many needs in the North American market, allowing us to offer customized solutions to meet specific client needs with a significant differentiator in a market that often favors unique solutions.”
Edgar Salas emphasizes the importance of flexibility and adaptability in AZLOGICA®‘s offerings. Every client has a particular solution, and in a Building Blocks model, the company has the appropriate technology to make it fast and adaptable. This is something not so easy to find in the North American market, which tends to favor vertical, fast, and replicable solutions, but not necessarily adapted to each market.
AZLOGICA®‘s goals are ambitious in terms of revenue growth and market share in the United States over the next few years. In an initial phase, covering the second half of 2024 and the first half of 2025, operations will focus on establishing and consolidating relationships with key partners like Amazon AWS from Seattle and Washington or Tecniplex in Virginia, alongside other clients and established markets in Colorado. Strategic academic alliances will serve to expand and strengthen IoT and AI technologies with quantum technologies, thus exploring and accelerating new development trends.
Competitive Positioning with Major Advantages
This period is considered crucial for laying the foundations for significant growth, projecting a substantial percentage increase between 2025 and 2027, with expansion expected to exceed approximately $10 million in revenue. This represents a compound annual growth rate of roughly 50 to 70 percent during those first four years of operation. A key strategic objective for this expansion is to establish a strong presence in these developed territories and capture significant market shares, primarily in the manufacturing, automotive, agricultural, and utilities sectors.
AZLOGICA®’s approach to the North American market, with its capacity to offer highly adaptable and customized technological solutions, allows the company to address diverse and complex client needs that are often unmet by larger, more rigid competitors. Salas notes that the A-Z of AZLOGICA® involves adapting the highest technologies based on each client’s needs, something rare in companies from developed countries.
“This approach,” he says, “has already attracted the interest of established companies and global brands like Rockwell, Siemens, and Schneider, who seek our expertise to adapt their technological base and address needs in the manufacturing industry when there is a diversity of multi-brand components.” This translates into AZLOGICA®‘s ability to take components from different brands within a system, integrate them, and meet a company’s needs, overcoming this barrier of heterogeneity.
Other significant advantages lie in the cost structure, which benefits from the company’s native operations. This means lower costs as both labor and a very good level of development come from Colombia. AZLOGICA®‘s platforms are already built, so the company can quickly integrate its technological solutions under the Building Blocks model, making it easy to compose a new solution, ensuring speed of implementation, cost savings for clients, and maximizing return on investment.
This move is expected to significantly boost AZLOGICA®’s research and development efforts. Leveraging the aforementioned relationships with academic institutions and exploring new technological trends, the company seeks to remain at the forefront of innovation. According to the CEO, “We already have quite serious and promising approaches with recognized academic entities, and there, with some programs that allow us to link them to explore real and high-impact solutions for the benefit of communities.”
Strategic Alliances and Collaborations
This expansion of operations, based on the mentioned academic and business partnerships, also aims to boost innovation and market penetration. This will allow AZLOGICA® to strengthen and interpret its value proposition using local resources that adapt to the development structure of a solution. In this regard, companies like AWS are already collaborating with AZLOGICA® in a plan to jointly sell and integrate solutions, improving the value proposition for clients.
Another dynamic at play is fully leveraging the North American technological ecosystem to enhance AZLOGICA®‘s digital solutions. The company has a history of using advanced technologies from around the world to optimize and create its solutions. Its partners are global and world-class, which, combined with the proximity to these leading academic institutions and innovation projects, will further strengthen its research and development capabilities.
Establishing and managing operations in the United States involves a set of challenges, especially in terms of aligning marketing strategies with local cultures and ensuring compliance with regulatory standards. These operational challenges are the same ones AZLOGICA® has already faced in its internationalization efforts, centered on two key elements: One is commercial, where for each country, it is important to have marketing that aligns with the local culture. The other is in terms of implementation, where labor, for example, must be locally available.
The shortage of operational labor in developed countries, however, allows AZLOGICA® to consider exporting the service as such, with resources and talent from Latin America. Additionally, a solid integrated management system, along with the company’s CRM (Customer Relationship Management) tools and compliance with international quality of service and information security standards—fundamental in these types of actions—will facilitate cross-border operations without any issues.
Ensuring this integration of operations in the United States is based on the “Developments Without Borders” principle, which means that all of AZLOGICA®‘s developments and strategic information are hosted in the cloud, and in terms of hardware, everything is done directly or with highly recognized international partners. The location of their manufacturing plants avoids the overuse of resources in terms of logistics for those physical elements.
Cultural and Operational Synergy
At this point, it is worth mentioning the AZ Academy tool, created some years ago, whose purpose is to transfer knowledge and document everything AZLOGICA® standardizes in its integrated management system processes. The tool allows the dissemination of this information to streamline the incorporation, strengthening, and acceleration of the learning curve for team members.
Building a team of exceptional talent to serve the North American market is a top priority for AZLOGICA®. The company plans to leverage local experience and academic partnerships to find the best talent. Its new COO, Peter Meek, with his extensive experience, will be key in refining the company’s approach in terms of language and market knowledge. This strategy ensures that AZLOGICA®‘s operations are well-aligned with the local market dynamics and cultural nuances.
In this sense, if cultural and operational differences arise, they will be seen as strengths that enhance the value proposition. The company’s approach is to adapt and integrate resources to meet local market needs. These socio-cultural challenges can be exemplified simply: if an expert in one of the sub-areas of operation does not know the language well or cannot develop it, they will immediately have the support of other team members who have the skills to carry it out. Technological tools and a strong focus on cultural adaptation will ensure that AZLOGICA® has perfect integration and operation.
Finally, it is worth noting that the knowledge and experience acquired in the North American market will be reinvested in AZLOGICA®‘s global operations, including Colombia. The company’s internationalization philosophy ensures that all knowledge and developments strengthen the organization as a whole. Its CEO, Edgar Salas, concludes by saying that “everything strengthens the same source and the same machine. There is nothing contemplated that allows us to think that what is done in any territory is not reinvested in the organization’s objectives. It is almost a-territorial, it has no limits, no borders. It is designed to be international and overcome those barriers by adapting to local territories whenever required”.
The expansion of operations into the North American market marks an important milestone in AZLOGICA®‘s growth path. Taking advantage of its technological capital, strategic partnerships and adaptable solutions, the company is well positioned to achieve a substantial impact in the IoT and AI sectors. With ambitious growth targets and a clear strategic vision, there is no doubt that it is poised to redefine how these technologies are integrated and used in the United States, paving the way for further global expansion.
