Whoever started a business in the 90s and survived it is resilient to all crises

While much was still in its infancy in information and communication technology (ICT) at the end of the 80s and the beginning of the 90s, Storm Computers recognized what the future holds. They quickly turned from assemblers and sellers of computers to application development of software solutions and the development of network technologies, at a time when computer networks were just beginning, recalls co-founder Tomislav Kraljik, now a member of the Management Board and CEO of Storm Computers. Accurately assessing the upcoming trends, from a garage workshop in a family home in Zagreb’s Borongaj, Storm Computers has grown over 30 years into one of the leading system integrators in Croatia and the region.

Enthusiasm of the 90s

Kraljik says that in the early days of their business, a major obstacle was the lack of initial capital and financial credibility, without which it was difficult to enter any serious business or project. They built business development through natural growth based on their own inflow, while Kraljik does not forget the liquidity and receivables collection problems, which were the everyday reality of business in Croatia at the time.

– We started in 1988 as a workshop for assembling and selling computers and selling software support and services. Our story is similar to many others in Croatia from the 90s when companies were born out of the enthusiasm of young people with entrepreneurial ideas. At that time, I was still a student, and my partner Vladimir Olujić, as the initial founder, along with his wife Mirela, started Storm Computers with their own savings and earnings from the workshop. At that time, entrepreneurial ideas did not receive a good response from banks, there were no entrepreneurial incubators or other means of obtaining financial assistance. Over time, we recognized trends and movements in the ICT industry and the market in general, as well as the needs and demands of users. Immediately after founding, we realized the necessity of expanding the range of solutions and services we were dealing with. Today, in partnership with leading global companies, we are able to offer users network, infrastructure, and security solutions, solutions for digitalization and business transformation with a vertical of cloud computing and customer support – recalls Kraljik.

Expansion to the region

In Kosovo and Macedonia, they have sister companies, they cover the Serbian market through a partner company within Storm Group, and Slovenia from Croatia, with the entry into the European Union significantly facilitating communication and operations. Kraljik explains that Storm Computers is part of Storm Group, which was founded 11 years ago to round out the offering of solutions and technologies from the ICT field, but also from energy, construction of computer and communication networks, as well as solutions and services from data centers and the development of cloud services. The extent to which the Group believes in the quality of the solutions from its portfolio is evidenced by the fact that all Group members mutually use their own solutions, so, for example, all infrastructure equipment provided for the Group by Storm Computers is located in the DataBox data center. As a member of the Group, DataBox provides internet access and telecommunications services, while Supra Net is responsible for electrical and EKMI solutions. Additionally, all member companies use the business system Odoo, which was developed and localized for the Group by the member company Notus IT, describes Kraljik.

– Our advantage is the breadth of the portfolio of ICT market solutions, as well as the separation of individual ICT verticals into differentiated legal entities. This indirectly achieves better market agility. The companies that emerged in this way today form Storm Group. For complex technologies that we cannot develop independently in a sufficient time frame, we connect through partnerships and acquisitions. Our future lies in further technological investments, especially in cloud computing or cloud services. The future also involves rejuvenation, considering that we, as founders and operational managers, have been in management for 30 years or more, as well as expanding into the Western European market – expects Kraljik.

Demanding European project

He sees particularly important projects as those related to cloud computing services, i.e., the development of infrastructure, platform, and application services from the data center and the development of their own competencies. One of the more demanding projects he highlights is the one they did for a foreign client in the European Union, which they won in competition with foreign ICT companies.

– We executed a complete solution for the consolidation of ICT systems, from the reconstruction of electrical and communication infrastructure, the infrastructure of the client’s data center, to advanced system, application, and security solutions. We successfully completed the entire project with our own employees and the necessary technical resources. This opened a new perspective on our own capabilities, showing that we can successfully handle even the most complex demands of users outside Croatia and its surroundings. The business environment in Croatia before the crisis caused by the coronavirus began to develop in recent years after a long global recession. This is largely because the awareness of the necessity of digitalizing all segments of business has matured proportionally. On the other hand, the technological trend is such that no segment of everyday life and work can be imagined without the presence of ICT. In the last few years, we have significantly expanded services and their scope – assesses Kraljik.

Brilliant 2019

With a revenue of 128.5 million kuna and a profit of seven million kuna, the business year 2019 was the most successful in the company’s history, and other members of Storm Group performed similarly. The entire Group, with a total of 300 employees, achieved revenues of 300 million kuna. The result of that year was also better than the business plan, so the plans for 2020 were ambitious, but the coronavirus crisis somewhat halted the trends. However, given how circumstances looked last March, Kraljik is still satisfied with the business results of 2020, as the revenues of Storm Computers and the Group will be about 10 percent lower.

– Since the beginning of the coronavirus crisis, the revenues of our 70 employees have not been touched. We expected a quick market recovery during this year, and the first months show good results and a positive trend. Throughout the crisis, we continued to hire and introduced some additional benefits for employees. However, the labor market in Croatia is in deficit, especially in the ICT sector. We believe that this will change, that the inevitable future growth and increase in ICT service prices will contribute to this, which will increase revenues and the quality of life of professionals in the homeland – hopes Kraljik.

The ICT sector, unlike most other industries, has remained in a certain way ‘privileged’ during the coronavirus crisis. Quality customer support, dedication to customers and users, and quick adaptation to the new way of doing business across the market, primarily remote access and working from home, according to Kraljik, were a winning combination despite the fact that some project implementations were interrupted and postponed.

New opportunities in the crisis

New demands and business opportunities have opened up. In the aforementioned DataBox, they invested heavily precisely during the lockdown. This doubled the data center’s capacity with the corresponding computing and security infrastructure and significantly improved the construction blocks of the facility, energy infrastructure, cooling systems, fire detection, and firefighting.

– They are necessary for the strictest criteria of availability and security of data centers. But some new opportunities have also opened up, such as innovative solutions for cloud services and ICT security. This, along with the increasingly present work from home, remote access, and various forms of video conferencing, is becoming increasingly important and sought after. However, in the new circumstances of the last year, the entire market, including ICT itself, is experiencing significant shifts in delivery. In Croatia, there is an increasing number of successful companies not only in ICT but also in new technologies, with an increasing number of innovation centers, development agencies, and development companies. The coronavirus crisis has largely halted this, but that too will come to an end, and life will continue – thinks Kraljik. 

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