CEO TALKS – 2024 IT MARKET TRENDS: WHAT DO LOCAL CLIENTS WANT?

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We are halfway through 2024, and we are analyzing to what extent the year’s trends are confirmed or changing. Bogdan Florea, founder and co-CEO of Connections Consult, discusses the construction of the IT business this year and what local clients desire. 

“While on international markets, the trend we observe is the localization of services, in the domestic market, we notice an accelerated trend of concern, investment, and development in the area of technologies that define the cloud/cloud computing, both at the infrastructure level (Infrastructure as a Service) and at the Platform as a Service level, as well as the entire technological stack that defines the cloud. 

When we talk about the cloud, we are referring to a generic term that actually provides the possibility of accessing services economically and efficiently from anywhere, offered by a service provider, not just infrastructure and applications. 

As I mentioned, we observe a marked trend of companies investing and developing and accumulating new capabilities in the cloud computing area. We have seen this trend starting from 2023, and, in my opinion, we will continue to see it in the coming years.“ 

Connections follows this trend, just like many other players in the market. Although our main specialization is in application development and, more recently, in technology integration, the vast majority of client requirements focus on cloud-ready applications, prepared to operate in the cloud in various forms—whether we’re talking about Microsoft, Amazon, Google Cloud, or OpenStack. Consequently, the push from technological advancements compels us to take steps towards developing cloud-ready applications. 

At this moment, we consider ourselves one of the leading providers of complex enterprise applications that are ready to be used in the cloud. 

Meet our Connectors: Ionuț Stănescu, The Listener

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In every team there is a person who prefers to keep quiet, to listen, to extract information and then put it into practice, without too much discussion. In our case, that’s Ionuț Stănescu, who, in the almost two decades he’s been part of the team, has listened, evolved, helped train new IT talent, delivered complex solutions and put brick upon brick to Connections’ growth. Now, he holds the role of AI Expert & Data Scientist.

Ionuț is curious, so he’s always exploring new technologies and solutions, adapting, and in doing so, he manages to keep up with the changes in the industry and shows perseverance. This perseverance “keeps me going, even when I face challenges,” he says. Both in IT and in sporting events – we say – because Ionuț is a dedicated sportsman, taking part in competitions and triathlons. Deeply enthralled and engaged in the fast-paced development of Big Data and Artificial Intelligence, Ionuț is doing his best to keep up.

“This emerging sector, with its potential to revolutionize different industries and aspects of our lives, has managed to arouse intense interest and deep passion on my part. I’m excited to delve deeper into this field and contribute to the innovation that is happening now.”

From 2007, when he was still in college, to the present, Ionut has been part of the Connections team. Throughout these years he has been involved in numerous projects and has been the one to listen, assimilate information and then put it into practice.

“I became part of the Connections team in 2007, during my university studies.  Since then, I have been constantly evolving, working on innovative projects and learning a lot from colleagues, professionals, clients and various projects. I’ve always taken responsibility for technical decisions, set the direction and acted proactively or reactively – depending on the situation – to remove possible obstacles. With this way of working, I participated in the development and delivery of complex solutions, contributed to the training of new IT talent, and I hope I played an important role in Connections’ rise.”

About digitization and physics

After 17 years of extracting valuable lessons from every action, of always approaching every project and every situation from a forward-looking perspective, Ionuț has fully understood what digitization means and sees it as… an element of physics, more precisely, light.

“Like light, digitization can reach the farthest corners of the world, bringing clarity, removing information barriers and bringing knowledge. Light has a dual behavior, behaving both as electromagnetic waves and as packets of energy (photons). Similarly, digitization also has a dual behavior. It can be a tool for development and learning as well as a medium for entertainment and relaxation. Light is also composed of many colors, each with its own wavelength. Similarly, digitization is composed of many different elements – data, software, hardware, networks, people, knowledge – all working together to create a complex system. Digitization, like light, is essentially good, but it can also be used maliciously. For example, in the case of light, ultraviolet radiation can cause sunburn and other health problems), and digitization, in its essence, is a good thing. Digitization on the other hand can be used in the case of cyber-attacks or invasion of privacy. Both are highly adaptable: while one adapts to its environment, the other adjusts to new technologies and trends, overcoming obstacles and always moving forward, and both transmit information extremely fast! And last but not least, they are both so necessary! Just as the physical world needs light to function, the modern world needs digitalization. Without it, many of our daily activities, such as communicating, working, learning and entertaining, would be much more difficult, if not impossible.”

Message for a beginner programmer

Learn to listen and evaluate opinions through your own filter, be curious and don’t be afraid to make decisions. Failures are part of the process, but recognizing them will point you in the right direction.

2024, THE YEAR TO SHOW HOW GOOD WE ARE

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Today, we are launching a series of analyses on Connections, a digital transformation company listed on the Bucharest Stock Exchange (BVB) under the symbol CC. This initiative aims to offer a clear and detailed overview of our rapidly expanding business. 

Our goal is to consistently highlight the essential aspects of our operations, providing maximum clarity and an overall picture of the journey we are building day by day. For financial details, you can find us on BVB (CC), where we offer transparent and updated financial reports, or visit our website at https://connectionsconsult.ro/investitori-v2/ 

As part of our #ConnectionsCEOTalks series, we start with an intervii featuring Bogdan Florea, Co-CEO and founder of Connections. He provides insights into the developments of 2023 and our plans for the current year, exploring revenue growth in our business divisions, the strategic decisions impacting company growth, and the balance between local and international markets. We will also discuss ambitious profitability goals for the year ahead. 

Let’s proceed to the interview with Bogdan to delve deeper into the company’s activities and future perspectives. 

REVENUE DISTRIBUTION: 

IT vs. non-IT, local vs. global 

HOW DID 2023 LOOK FOR CONNECTIONS CONSULT? HOW DID THE COMPANY’S REVENUES EVOLVE BY BUSINESS DIVISIONS? 

In 2023, we observed a shift in the balance between our business lines, driven primarily by accelerated revenue growth in the software development and digital transformation team, making this division the primary contributor to the group’s revenues. By the end of 2023, the revenue breakdown by business lines was as follows: the BPO division accounted for 15% of the group’s total revenues, IT outsourcing/IT support contributed 5%, combined private and public software accounted for over 70%, RPA (Robotic Process Automation) represented 2%, and technology outsourcing or consulting accounted for 5%. 

Compared to 2022, we notice a difference, an increase, as mentioned, in the software development and digital transformation area, at the expense of the BPO division, which decreased from contributing 48% to total revenues to 15%. However, this decrease was only in terms of percentage of total revenues, as the absolute value of the BPO department’s figures remained the same as in 2022. This is due to the evident growth in the group’s revenues, a rapid increase in 2023, as we would say. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The revenues of all business lines, except for the digital transformation business unit, remained stable in 2023 compared to 2022, and we are pleased to observe a rapid growth in the digital transformation team from 2022 to 2023. So, we have stability across all lines and a very — I would say an impressive growth in the digital transformation area. 

WAS THE GROWTH OF THE SOFTWARE DIVISION A STRATEGIC DECISION OR RATHER MARKET EVOLUTION? 

The shift in revenue distribution within the group’s total revenues is the result of a strategy formulated around 2021, coinciding with our entry into the capital market (listing on the BVB). Its essence lies in our strong desire to migrate almost exclusively towards the technology sector. 

Looking back to 2021, when we made the decision to list the company or group of companies, we also had a non-IT sector that was closely tied to technology, historically providing significant cash flow and opening doors to potential technology projects through cross-selling effects. Our goal was not only to maintain but also to significantly increase the group’s revenues, shifting predominantly towards technology and especially new technologies in the service portfolio offered to clients. 

We achieved this by adding clients from the governmental and public sectors to the group’s portfolio, heavily relying on European funds. We all hope these funds will contribute to the digitalization of both central and local public administrations, along with the National Recovery and Resilience Plans (PNNR) obtained by all EU member states following the Covid pandemic. Through this blend of strategy and opportunities emerging in the public sector domain, we successfully shifted the revenue distribution, placing much more focus on the tech IT area. 

FROM A GEOGRAPHICAL PERSPECTIVE – LOCAL VERSUS INTERNATIONAL MARKETS? 

Historically, Connections has typically derived between 20% to 30% of its revenues from international markets, with some fluctuations up until 2022. However, starting in 2023, this percentage has seen a significant decline in terms of its share within the total revenue mix. 

In absolute terms, our revenues from international markets have remained relatively stable or have shown slight growth. Yet, due to the rapid expansion of local revenues, the proportion of international revenues has diminished in the overall revenue composition of the group. 

We remain dedicated to identifying new clients in international markets, actively pursuing relationships with foreign companies to enhance our overall revenue streams. At the same time, we are committed to nurturing our presence in the domestic market. 

In economic theory and practical corporate management, there is a straightforward principle suggesting that international expansion becomes feasible when a company establishes a solid foundation in its domestic market. Expansion here entails not only establishing subsidiaries abroad but also effectively penetrating foreign markets. 

Considering ourselves a medium-sized company, with potential aspirations to grow into a larger entity in the near future, we are encouraged by our robust stability in the domestic market. Strengthening our foothold in the domestic market presents promising opportunities for expanding exports in the near to medium term. 

This perspective is compounded by current global economic indicators, unfortunately forecasting a downturn in the months or years ahead, alongside a prevailing trend towards localization of services. 

We observe a nuanced philosophical underpinning derived from global political and geopolitical dynamics: companies are increasingly sourcing suppliers closer to delivery locations, which introduces certain barriers in engaging with foreign markets. However, technology remains a unifying factor in the global economy, where common language transcends cultural or national barriers. We maintain our interest in international revenues while concurrently focusing on serving our domestic market clients. 

INCREASING PROFIT MARGIN: CONNECTIONS’ FOCUS FOR 2024 

Regarding the profit margin, in 2023 we saw a slight increase in percentage terms as well as in absolute value. Due to revenue growth, we achieved significantly higher gross and net profit figures, but the percentage terms remain within the same range, around 8%. One of the major goals of the group is to achieve a double-digit gross profit margin, including EBITDA, and sustain it for the next 5 years, aiming for a gross profit margin of approximately 11-12%, certainly above 10%. For us, it’s important not only to quickly achieve this margin in a single year but also to sustain it reliably over the long term. 

HOW WILL WE MOVE FROM A SINGLE-DIGIT PROFIT LEVEL TO DOUBLE DIGITS? 

Unfortunately, there’s no magic solution; it requires a lot of hard work and a clear plan that the entire strategy and team must follow. 

We can increase operational margin, but this is more challenging considering we are operating in an already stable market. 

The main opportunity lies in optimizing expenses, focusing on delivering services much more efficiently. A project that previously took 3 months to achieve a certain result can be revised to be delivered in a shorter time frame while maintaining the same quality standards — this represents a significant internal improvement and enhances the professionalism we offer to our clients. 

Additionally, we need to manage fixed expenses, where Connections is already performing well — fixed costs represent less than 10% of total revenues, which is considerably positive in my opinion. However, we will continue to monitor and control fixed costs to increase our operational margin and achieve our profitability goals for the entire group. 

This is the major challenge for this year, and we must demonstrate how capable we are in managing these aspects. 

 

Discover the free technologies and products from Oracle

Posted on by andreea.pislariu

A presentation delivered by Ciprian Onofreiciuc, at Dev Talks 2024

The Big Data & Cloud stage at Dev Talks, an event where Connections served as the Tech Area Partner, hosted a compelling presentation by our colleague, Ciprian Onofreiciuc, Oracle Architect, on a topic of interest to all involved in software development and IT architecture: “What’s free in Oracle? – Top 7 free technologies and products from Oracle”.

During his presentation, Ciprian highlighted seven free technologies and products offered by Oracle that are revolutionizing how developers and companies approach the technological landscape.

HERE ARE THE TOP 7 FREE TECHNOLOGIES AND PRODUCTS FROM ORACLE:

  1. Oracle VM VirtualBox

A versatile tool, free and open-source software that allows users to run multiple operating systems on a single computer, a great option for both personal and professional use.

It can be used for:

  • Software development and testing: Developers can test their applications on different operating systems.
  • System administration: IT professionals can simulate network environments for configuration testing.
  • Education and training: Students can learn and practice using different operating systems.
  • Support for legacy applications: Run older software that may not be compatible with newer.

Oracle VM is a virtualization solution that meets the needs of data centers seeking a high-performance, scalable, and reliable solution.

ADVANTAGES:

High performance and scalability:

  • Supports up to 384 physical CPUs and 6TB of memory
  • Supports a wide range of host operating systems

High reliability and availability:

  • Secure live VM migration.
  • Live storage migration of VMs.
  • High availability.

Management:

  • Faster software deployment with Oracle VM templates.
  • Support for virtual appliances: OVF format, OVA format.

6. Oracle Linux: Optimized OS for Oracle Products

An excellent choice for companies relying on Oracle products and seeking a secure and reliable operating system.

Key benefits:

  • Optimized performance: Smooth operation of Oracle software, including databases and enterprise applications.
  • Stability and reliability: Built on a solid foundation (Red Hat Enterprise Linux) and rigorously tested to ensure a stable and reliable system.
  • Security: Includes integrated security features and receives regular updates to keep your system protected.
  • Cost-efficient: Free to download and use, with optional support subscriptions available.

  1. Database Management Systems – Oracle Database 23ai Free vs. Oracle MySQL 8.4

Two popular Database Management Systems, each with its own strengths and occasional limitations. Choosing the most suitable one depends on the specific needs of your project.

  • Oracle Database 23ai Free: A free version of Oracle Database, offering a perpetual license with certain resource limitations. Ideal for personal projects, learning, testing, and prototyping.
  • Oracle MySQL 8.4: A popular open-source database known for its scalability, performance, and reliability. An excellent choice for production environments requiring efficient large-scale data management.

4. Oracle SQL Developer vs. MySQL Workbench: choosing the right tool for Database Development and Administration

Both Oracle SQL Developer and MySQL Workbench are powerful tools for database development and administration, but each has different strengths. Here’s a quick comparison to help you choose the right tool:

  • Oracle SQL Developer: Optimized for Oracle databases but can also work with other relational databases (requires additional connectors).
  • MySQL Workbench: Designed specifically for MySQL, but can also manage other relational databases with limited support.

3. Oracle Integration Tools: ORDS vs. GoldenGate Free

Both Oracle ORDS and Oracle GoldenGate Free are free tools provided by Oracle for integration, but they serve different purposes.

  • Choose ORDS if:
    • You need to quickly expose data as RESTful web services for your applications.
    • Your database size is under 20 GB.
  • Choose GoldenGate Free if:
    • You need to replicate data in real-time between Oracle or MySQL databases.
    • You want error tolerance and continuous data synchronization.

  1. Oracle APEX

A low-code development platform that allows building web applications with minimal programming. It’s free with an Oracle Database license and offers advantages such as:

  • Easy to learn and use, even with limited programming experience.
  • Rapid application development for time and resource savings.
  • Scalable to adapt to your business needs.
  • Secure to protect data.
  • Accessible from mobile devices.
  • Extensible through custom code.
  • Active developer community for support.

  1. Oracle Cloud Free Tier Service

The Oracle Cloud Free Tier offers users free access to a variety of essential cloud services, including AMD and Arm-based virtual machines, block and object storage solutions, and autonomous databases. These free services are available for an unlimited period, allowing users to experiment with and use Oracle technologies without initial costs.

Thus, the free technologies and products from Oracle are not just a collection of tools, but rather a source of opportunities for those passionate about innovation in the technology field. From virtualization and database management solutions to low-code development platforms and cloud services, Oracle puts accessibility and performance at the forefront. To further explore this universe of possibilities, we invite you to access the links above and venture into the world of Oracle technologies.

Virtualization

Operating Systems

Database Management System

TOOLS FOR DATABASE DEVELOPMENT AND ADMINISTRATION

TOOLS FOR INTEGRATION

Application Framework

Cloud

Free, but with significant benefits

These free solutions come with numerous essential advantages:

  • Savings: using these free products can bring significant savings by eliminating expenses related to licenses or other associated costs.
  • Flexibility: free products allow for flexible adoption and usage, giving companies the ability to test and implement solutions without major financial constraints.
  • Community: many of these free solutions are supported by large communities, providing support, updates, and continuous innovation.
  • Transparency and security: most free products, especially open source ones, offer full code transparency, allowing for security audits and customizations.
  • Avoidance of vendor lock-in: using these free solutions can prevent being locked into a specific vendor’s ecosystem, offering the freedom to switch solutions as needed.
  • Support: while varying, free products generally benefit from community or vendor support, providing a minimum level of assistance and guidance.

Ciprian also highlighted the essential differences between terms such as “free,” “zero license cost,” and “freeware” in the software industry, emphasizing that understanding these is crucial for making informed decisions.

  • Free (Free of Cost): software labeled as “free” does not require payment for use, which can significantly reduce expenses.
  • Zero License Cost: software with zero license cost does not require a license fee, but there may be other costs, such as support or premium features.
  • Freeware: software distributed for free but with proprietary licensing. Usage is free, but there may be restrictions on modification, redistribution, or commercial use.
  • Open Source vs. Freeware: open-source software can be free but offers different freedoms compared to freeware, including modification and redistribution.

CIPRIAN ONOFREICIUC: AN EXPERT IN ORACLE TECHNOLOGIES

Ciprian Onofreiciuc, Oracle Architect, has built an impressive career in the technology field, accumulating twenty years of experience in software development, project management, IT architecture, and service operations. With his vast expertise and passion for innovation, Ciprian has become a reference point in the industry, making significant contributions to technological advancement and the development of the professional community.

More on the subject? We’re glad the above information has been helpful and has helped you discover new opportunities for use in your work. If you need support to explore any of the resources in depth, to give consistency to the ideas you have, we invite you to complete the form below, and one of Ciprian’s team specialists will help you turn intention into concrete action.

    A specialist from our team will contact you as soon as possible to arrange a detailed discussion and provide you with the necessary assistance.

    Thank you!

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    The digital evolution of Romania: Artificial Intelligence, a key piece in the puzzle of economic success

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    Artificial intelligence (AI) has become a transformative force in the global economy, with the potential to revolutionize a wide range of industries. However, its adoption in Romania still lags behind other European Union member states.

    According to the “Digitalization in Europe – 2024 Edition” report published by EUROSTAT, only 8% of firms in the EU were using AI technologies.

    Romania recorded the lowest adoption rate, with only 1.5% of companies using AI. Geographically, Denmark and Finland are leading (15%), followed by Luxembourg and Belgium (14%), while Romania ranks last (>2%) alongside Bulgaria, Poland, Hungary, and Greece (all 4%). Source: Eurostat – access to dataset

    This gap is significant, considering that AI has the potential to increase productivity, improve operational efficiency, and create new business models. The low adoption of AI in Romania is likely due to a number of factors, including a lack of awareness of the benefits of this technology, limited access to resources and expertise, as well as an uncertain regulatory framework.

    Recognizing the importance of AI for economic competitiveness, the European Union recently enacted the “Artificial Intelligence Act” (AI ACT). This law establishes a regulatory framework for the development and use of AI in the EU, aiming to promote innovation, protect fundamental rights, and ensure public safety.

    Implementation trends of AI in several pioneering fields:

    • Cybersecurity: AI is used to detect and prevent cyber-attacks. Algorithms can analyze data to identify suspicious patterns and take swift remedial action.
    • Healthcare: AI is used for the analysis of medical images (X-rays, CT scans) to detect diseases such as cancer and to personalize treatments for patients, taking into account medical history and genetic factors.
    • Finance: AI is used to detect financial fraud through the analysis of transactions.
    • Manufacturing: AI optimizes production processes to increase efficiency and quality, performs automated quality inspections of products, and conducts predictive maintenance of equipment.

    Current Trends in the AI Market

    The global artificial intelligence market is experiencing rapid expansion. According to Forbes, the size of the AI market is projected to reach $407 billion by 2027. This rapid growth is driven by several factors, including:

    • Increasing adoption of AI by companies: More and more companies are realizing the potential of this technology to improve operations, increase productivity, and create new business opportunities.
    • Large investments in AI research and development: Governments and private companies are investing significantly in AI research and development, leading to the creation of new technologies and applications in this field.
    • Increased availability of data: The amount of data generated globally is continuously growing. This data serves as fuel for AI, allowing algorithms to learn and improve.

    The Forbes study shows that over half of business owners are already using AI for cybersecurity and fraud management, while 53% of companies are using AI to improve production processes, and 51% are using it for task automation.

    The significant gap between Romania and other European Union member states regarding AI adoption reflects not only a lack of infrastructure and expertise but also a complex set of structural and cultural issues. While the EU is adopting legislation and investing in AI research and development, Romania faces challenges related to education, regulation, and digital infrastructure.

    As our country aims to close the gap, it is essential to address these challenges in an integrated and strategically planned manner. Investments in education and professional training, creating a business environment conducive to innovation, developing digital infrastructure, and promoting collaboration between the public and private sectors are just a few of the key elements needed to stimulate AI adoption and harness its transformative potential.

    The European Union is betting on the positive impact of artificial intelligence and will invest in AI research and development, providing companies with opportunities to obtain funding for innovative projects. It will also support professional training programs in the field, thereby encouraging them to develop the necessary resources to adopt artificial intelligence.

    It’s a train that can make several stops in Romania if there are passengers willing to board.

    For job opportunities, news and connecting 2.0: visit us on Undelucram.ro

    Posted on by andreea.pislariu

    Over the past year and a half, the IT market around the world has been going through a turbulent period. The industry’s spectacular growth has slowed significantly, giving way to a series of restructurings that began in the United States but cascaded to Romania.

    Many IT professionals have been forced to look for new job opportunities because of the drop in the number of projects by companies in the sector. As a result, the possibility of finding a top job quickly has been greatly reduced. It’s no coincidence that Connections’ development strategy keeps us out of this global trend of slowing growth: we continue to maintain our commitment to the people we work with, we have continued to make hires, and we are consistent in our efforts to retain talent.

    So, at the end of last year, we decided to take on the full pressure on employees caused by the new tax legislation and assumed the additional costs for our colleagues directly affected by the tax change. We also relocated the team to a new, larger, and more streamlined office, including developing internal incentive and motivation programs for employees.

    We value talented people who are determined to build for the long term, so our plans to keep them on board are built around valuing and making transparent individual performance, coupled with public recognition and tangible benefits, such as granting shareholder status in the company through the Stock Options Plan (SOP).

    We are in an open dialogue with our colleagues at Connections, because we want to be a true hub where the best IT professionals find their place.

    From June, we are expanding this dialogue with all candidates and professionals in the industry, and kick-starting the communication by inviting them to visit us and leave feedback on the #ConnectionsConsult account on the Undelucram.ro platform.

    If you are just starting out in your profession, between jobs, or looking for a career shift, we also keep you updated on job opportunities and internship possibilities on this platform, including inside stories and concrete stories about what the working atmosphere is like, the chances of a long-term collaboration or changing your role from intern to permanent employee.

    For us, being on Undelucram.ro means increasing the level of transparency, and, along with this, we want to create a safe space where our former, current, and future employees and collaborators can open a dialogue that will give them answers where they don’t have them and the possibility, based on the candidates’ experiences, to improve the way we run our internal processes.

    So please visit us HERE and stay up to date with Connections news.

    Meet our Connectors: Cătălin Pârcioagă aka The Glue Guy

    Posted on by andreea.pislariu

    In every locker room of NBA (National Basketball Association) teams, one of the most important sports leagues in the world, there is a proactive person who connects the team members: The Glue Guy. Ours is Cătălin Pârcioagă, and over the course of his 8 years here, he has been an intern, junior developer, full stack developer, team lead, and, more recently, holds the role of Technical Delivery Manager.

    He is a very energetic and lively person, passionate about various fields, but primarily sports (more watching them than practicing – as he courageously admits). He doesn’t consider himself a tech geek, which is quite atypical: not necessarily being a technology enthusiast while working as a programmer in the IT industry 😊. At Connections, he is the person “responsible” for good vibes, the organizer or initiator of many outings with colleagues outside working hours, and the “instigator” in team-building activities.

    His history with the team begins in the spring of 2016, when he first heard about Connections, being a second-year student at the Faculty of Automatic Control and Computers within the POLITEHNICA University of Bucharest. Every year, job fairs were organized in the faculty hall, and various IT companies were looking for new people to train in the field.

    “At our university, it was very common for most students to work during the summer between their second and third year, so I followed the same path. I sent my CV to numerous companies, including Connections. I took a test with several programming problems, after which I was invited for a technical interview, which I took during the exam session, ironically, the day after I failed an exam. I was a bit upset because of the exam, so I went to the interview somewhat indifferent, but everything went excellently, including the human connection with those who would become my future colleagues. Yes, back then, interviews were face to face 😊,” Cătălin recounts.

    Long story short, his journey started as an intern in July 2016, after an interview that went well. “Of course, it also helped that I found out they play football weekly and go out for beers – and they weren’t lying, we still keep some of those habits today,” Cătălin recalls.

    He continued to work part-time during his third and fourth years of university, then moved to a full-time schedule. The entire experience laid the foundation for a beautiful story of growth and performance in IT. “Connections is a place where I’ve grown tremendously and, in many cases, grown together with the team, which we will continue to do,” he says enthusiastically.

    After 8 years in IT, Cătălin fully appreciates the impact of technology, including what it brings to him personally.

    “Certainly, one of the things that makes my life better is the ability to remotely control various devices in my home. Even though I don’t own an Alexa or a Google Nest, I can control my cleaning robot or air conditioner remotely. Life is clearly better when you come back from vacation to a freshly vacuumed floor and a perfectly regulated home temperature.

    The second strong point is communication with close people and those I speak to less frequently; being able to do that anytime and anywhere will always have a significant impact, even if we’ve gotten so used to it that we take it for granted.

    Technology has given me everything I have today and everything I will achieve in the future. It provided the platform for me to put my skills and all the things I’ve learned to work. I entered this field because I thought I wouldn’t be good at anything else, and here I saw that it’s such a vast domain with so many facets that it’s not just about the technical side or just about programming but much more. Some skills you acquire, and others you already had but didn’t know you had or didn’t know you would need in a technical field where the human side didn’t seem so important and where programmers were often seen as

    ABOUT DIGITALIZATION AND IT FEARS: A WHOLE HOLLYWOOD. LET’S SIT COMFORTABLY AND ENJOY WHAT IT OFFERS US

    After 8 years in the industry and a steady professional evolution, Cătălin looks at the challenges in IT from multiple perspectives.

    “You realize a topic is really hot when your grandparents ask you if you’re afraid you’ll lose your job soon because of Chat GPT. Yes, that’s the hottest topic: to what extent and how quickly programmers will be replaced by AI.

    I would say it will happen sooner than we realize, but obviously not entirely. The number of programmers will shrink, but at the same time, I assume new positions will also emerge. On the other hand, there are many large companies where changes happen very slowly. Many of them are just transitioning from Excel to front-end/back-end platforms that allow simultaneous access by multiple users, let alone implementing projects with Chat GPT. AI is coming after the basic programmers who only know their piece and don’t understand the entire mechanism of a project, both from a technical standpoint and in terms of client relationships, management, and so on.”

    Regarding digitalization, a constant topic on the global agenda, Cătălin sees it as “more than a character; it’s the whole of Hollywood: always in a broad dynamic that’s hard to keep up with, with new faces and trends constantly changing. But you have the certainty that it always proposes innovations and every time it’s increasingly scandalous with the new things it reveals to the market. We can only sit comfortably, let ourselves be surprised, and enjoy what it offers.”

    MESSAGE FOR A BEGINNER IN IT

    “Try to enter the field as quickly as possible without neglecting your studies. I know this might sound ignorant or hard to accept, but in the beginning, you shouldn’t worry too much about the salary. In 2016, I was willing to work pro bono just to get into the work mechanism and gather as much information as possible, trusting that the money would come with the right attitude towards growth and personal development in the career.

    I started at Connections as a full-time intern on a salary that today might seem derisory, but it didn’t matter at that time and was irrelevant to my career growth. I believed then, and it was confirmed, and I still believe today that the most important thing is to find a place where you can develop both professionally and personally. I’m glad I found it.

    The important thing is to find a place where you feel you can develop both personally and professionally.“

    Connections decides to distribute dividends for 2023 and announces financial projections for 2024

    Posted on by andreea.pislariu

    Connections (CC), a digital transformation company listed on the AeRO market of the Bucharest Stock Exchange, recently published the budget for the year 2024 and the priorities for the current year. The company has decided to allocate dividends for the fiscal year ended and has initiated internal preparations for transitioning to the regulated market of the exchange.

    For 2024, Connections estimates total revenues of 122 million lei, representing an accelerated growth of 49% compared to the budgeted amount for 2023, and a net profit of 8.8 million lei (a 57% increase compared to the budgeted amount for 2023), with a focus on EBITDA growth.

    “2023 was the best year in the company’s history, with significant surpassing of all initially estimated results. Triple-digit growth has brought us large-scale projects, which we currently have in progress, and have confirmed Connections’ capabilities and relevance in the public sector digitization category in Romania. We continue to grow at a sustainable pace to ensure healthy and balanced development, with a focus in 2024 on the development of our software development and technology integration line. The main contributors to this year’s revenue are the Service Delivery and Software Development & Outsourcing divisions, with estimated revenues of 35 million lei and 87 million lei, respectively,” says Bogdan Florea, Founder & Co-CEO of Connections.

    The organization is banking on revenue growth in the Software Development division, driven both by the development of substantial projects in the public sector and by expanding its portfolio of specialized solutions. The division is expected to achieve an estimated average compound growth of 60%, while the Service Delivery line is projected to see a 3% growth, remaining a significant source of revenue and a strategic pillar for Connections.

    The primary target for the current year is private sector companies, aiming to ensure a balanced portfolio of clients and profitability growth that generates increased value for investors.

    “Our plans for 2024 focus on four essential pillars: strategic technological partnerships, digital marketing to increase visibility, consultative sales to understand customer needs, and the development of innovative solutions for the public sector. We are confident that this year’s results will strengthen our market position and allow us, as planned, to distribute dividends each year, correlated with the financial realities of the moment,” mentions Radu Marcu, Co-CEO of Connections.

    In addition to development initiatives, the company aims to internally focus on consolidating the corporate governance structure and kick-start preparations for transitioning to the primary market. The first planned step is to expand the Board of Directors by two seats, a measure that will bring diversified expertise to the board and improve decision-making processes within the company.

    “Today, we have a corporate governance that is vastly superior to the time of listing, with processes and procedures maturing and requiring a much more rigorous business conduct over the next 3-5 years. In order to access the main market of the Bucharest Stock Exchange and prepare for the transition to IFRS reporting, we are determined to align ourselves with the highest standards and develop a transparent financial image. Our focus will be on long-term sustainability and constant value generation, both for shareholders through business results and for clients through the high quality of projects we deliver,” adds Bogdan Florea, Founder & Co-CEO of Connections.

    Based on previous financial performances, Connections recently decided to distribute dividends totaling 3,300,000 lei from the net profit of the company for the financial years 2022 and 2023, to be benefited by shareholders registered in the shareholders’ register on the date of 26.04.2024, proportionally to their shareholding in the paid-up share capital. The gross dividend value is 0.2522 lei per share, and the dividend payment date through the Central Depository is 21.05.2024.

    Connections’ dividend policy aims at consistent distribution of benefits to shareholders, based on the availability and cash needs of each year, correlated with profit growth.

    The year 2023 marked exceptional growth, with the company standing out through impressive financial results and solidifying its position as a market leader in complex digitization projects. Key financial achievements include a 203% increase in turnover, reaching 177 million lei, and a 162% increase in net profit, reaching 11 million lei.

    The complete report on audited financial results for 2023 and the budget for 2024 can be consulted here.

    Spring of Artificial Intelligence

    Posted on by andreea.pislariu

    Known as the AI BOOM or the Spring of Artificial Intelligence, last year was marked by the explosion of AI, as the technological and commercial advancements of the past decade were compressed into a truly remarkable single year.

    Throughout it, both hopes and fears regarding AI’s transformative capacity became widely publicized, as did global questions concerning the management of this new technology.

    At Connections, we closely monitor the dynamics of leading technologies as we actively develop products based on them. In 2023, we integrated AI for the first time into one of our products, ID Scanner, and participated in the development of AI-based projects for top external partners in international teams.

    Just like any significant force with the power to reshape the world, AI has inevitably become the subject of formal regulation.

    The European Union’s Artificial Intelligence Act reached provisional status in December 2023, while the United States is still evaluating its own approach, stemming from a series of hearings in Congress, both public and closed-door, featuring detailed testimonies from AI industry CEOs and experts.

    The AI Act, also known as the European Union’s Artificial Intelligence Act, adopted recently (March 2024), is now the world’s first regulation specifically targeting AI and pursues several key objectives:

    • Ensuring safety and upholding fundamental rights in the realm of AI utilization.
    • Fostering responsible innovation within the AI domain.
    • Establishing a transparent legal framework for stakeholders in the AI sector.

    Additionally, the AI Act categorizes AI systems based on risk as follows:

    • Prohibited: systems posing unacceptable risks (e.g., electoral manipulation, invasive surveillance, social scoring).
    • High risk: stringent requirements (e.g., facial recognition).
    • Limited risk: minimal obligations (e.g., chatbots, automatic translation).

    To safeguard citizens, the document also includes:

    • Transparency requirements: clear information about AI systems, the data used, and how they operate.
    • Prohibition of “social scoring” and emotional manipulation.
    • Promotion of responsible AI development.

    We believe that the AI Act is a document that should be consulted by all professionals in the industry and with which all business leaders should be equally familiar. This ensures that the AI solutions that will become part of our lives in the coming years are responsible and ethical.

    Connections obtains authorization to use 5G infrastructure equipment

    Posted on by andreea.pislariu

    Connections (AeRO Premium, symbol CC) has recently obtained authorization to use 5G infrastructure equipment. This authorization not only opens new opportunities for us, but also facilitates our customers’ access to the most advanced connectivity solutions.

    In 2021, Romania adopted legislation aimed at implementing “measures relating to information and communication infrastructures of national interest and conditions for the implementation of 5G networks”, a law enacted following a recommendation from the European Commission.

    Under Romanian law, Law 163 of 11 June 2021 states that ‘the use of technologies, equipment and software in information and communication infrastructures of national interest and in 5G networks’ is allowed only with authorization from the Romanian state. Thus, the obtained authorization validates our commitment to provide high quality services, respecting the highest technological standards.

    With this authorization, Connections becomes one of approximately 40 companies in Romania that hold this authorization, which gives us the right to compete for complex projects both nationally and internationally.

    This key step allows us to offer our customers the most advanced 5G solutions, paving the way for a new phase of connectivity. We are committed to bringing the most advanced technologies while meeting the standards required by the relevant authorities. As Romania moves towards the adoption of advanced telecommunications infrastructure, Connections is emerging as a leading player in shaping the country’s digital landscape.

    With a broad portfolio of solutions and services, we are once again demonstrating our expertise and ability to adapt to the demands of the ever-evolving market, contributing to innovation and development in the field of connectivity. Obtaining authorization to use the 5G infrastructure equipment is an important moment for us, strengthening our position in the market and opening new horizons for innovation and development in connectivity.