Terrence DeFranco, CEO and Chairman Arkados Group talking to Anand Gijare, Business Head CXOguide, revealed recent performance of Arkados and future plans of expanding their M & V platform with new applications that optimize not just for energy savings, but also to add air quality, water quality, predictive maintenance and asset performance and ultimately enable buildings to integrate into larger systems, such as smart city and smart campus applications.
Terrence DeFranco is Chief Executive Officer and Chairman of Arkados Group, Inc. Mr. DeFranco is also the Managing Member of Gary Lee Company, a corporate consulting firm focused on providing strategic advisory services to boards of directors of public companies. Previously, Mr. DeFranco was Chairman and founder of Edentify, Inc., an identity management software company and Chairman and CEO of Titan International Partners, a merchant banking and research firm focused on providing corporate and strategic advisory services and equity and debt financing to small-cap and middle market companies.
Q. Tell me about recent performance of Arkados.
Ans: Arkados has been growing its business through a corporate strategy of leveraging the relationships with customers for our energy services to buy into the value of our technology solutions. We perform services, such as LED lighting retrofits, solar panel installations and oil-to-natural gas boiler conversions, for commercial and industrial facilities owners. These services can save up to 60% on energy costs. In connection with these activities, we introduce the value of an Internet of Things set of applications that can drive up to an additional 25% savings. This model is beginning to resonate very well with our customers and we see it as a great way to penetrate a market where there is still a learning curve for buyers and where there is a need to validate savings. We also believe that this model somewhat insulates us from competition as a flexible, multi-faceted company that focuses primarily on what is most important to the customer. As a result of this model, we have seen our sales quickly ramp up YOY and believe that we will continue to experience more growth as we introduce more value-added, cutting-edge IoT application to our suite of offerings.
Q.How do you see Arkados differentiate from competition?
Ans: We believe that there is a differentiation in our business model. We are multi-faceted and multi-dimensional, meaning that we can perform various services for the customer based on their needs in contrast to the approach of other smaller companies. We also have a very important strategic relationship with Tatung Company, which allows us to leverage their exceptional hardware design and manufacturing services, which lowers overall cost and enables us to deliver world-class offerings built with a very reputable partner. We also believe we can compete with larger companies through our innovation and focus on adding value to large, legacy systems with an attractive return on investment for the customer. I cannot stress enough how much our focus on our customers’ needs and dedication to delivering superior service is key to our current and future success. Lastly, our open, scalable and interoperable software platform provides customers with a low-cost and flexible solution that works very well with existing and future applications.
Q. What customers of IoT Solutions will expect from Arkados in coming years?
Ans: We are building our smart building solutions with a focus on lowering energy consumption and enabling sustainability. We are beginning at the foundation of data gathering and analysis through our measurement and verification solution. This intelligence that we gather is crucial in determining optimization levels for the primary systems within a commercial building (i.e. lighting, HVAC, etc.). Customers can expect to see us expand from our M&V platform to add new applications that optimize not just for energy savings, but also to add air quality, water quality, predictive maintenance and asset performance and ultimately enable buildings to integrate into larger systems, such as smart city and smart campus applications.
Q. What will you advice IoT solution buyers?
Ans: My advice to buyers is to focus on your current and anticipated needs and be sure that the system you adopt does not carry with it the downside of proprietary systems, which are closed, monolithic and expense to buy and to operate. IoT is a new paradigm that enables more robust solutions through scale and interoperability and these features should be leveraged to the buyers’ advantage. Also, security concerns with IoT are not unwarranted and we believe there are no features so valuable in an IoT system that they justify any compromise in the level of security provided in other systems.
Brief about Arkados Group, Inc
Arkados Group, Inc., through its subsidiaries, is a global provider of scalable and interoperable IoT solutions focused on industrial automation and energy management. Our business focuses on software development and system integration, and developing unique, cutting-edge solutions on our Arktic software platform that enable machine to machine communications with specific applications for energy efficiency, predictive maintenance and other solutions that reduce costs and improve returns on investment for our customers.
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