Tech Connect

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On the Cover :: The International Issue

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Feature

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GOING GLOBAL

Arizona catching on with the world as the place to do tech business.

Contact us :: editor@techconnectmag.com

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Special Section

In Every Issue

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THE TIME IS NOW

State still needs to further its expansion in the international trade arena .

GOVERNOR’S CELEBRATION

Meet this year’s class of innovation winners from around Arizona.

ARIZONA COMMERCE AUTHORITY

Learn about funding that new idea and meet those whose efforts paid off.

The Network

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TEMPO CREATIVE

A whole new world in marketing: pay per performance.

006 Editor’s Letter 010 International Column 028 The University of Arizona 030 Arizona State University 032 Northern Arizona University 033 TGen 034 Capitol Watch


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Publisher’s Letter

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elcome to the final edition of TechConnect for 2011, and welcome to the start of a new chapter for this highly regarded publication. Starting with this issue and on into the quarterly editions we plan to bring to you in 2012, the Phoenix Business Journal will be assuming a larger role in the business and production of the magazine. As a reader, you will continue to enjoy what over the past six years has become the leading technology magazine in Arizona. As a partner, client or supporter, you’ll get a change in leadership as the Business Journal assumes responsibility for ad sales, printing and distribution of the publication. We consider it a privilege to take on those assignments, and we are thankful the Arizona Technology Council has entrusted the future of the magazine into our hands and it will continue to remain an important partner. The Tech Council created the magazine more than six years ago, and during that time the Business Journal has been the main distribution

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outlet for it. It’s been an insert in the paper four times each year since it was created, and it’s one that our readers have looked forward to receiving. Fact is, most readers won’t notice the change at first. Don Rodriguez will continue his excellent work as editor of the publication, bringing you insightful news and trends that are important to the technology sector and to Arizona’s overall economy. But as it moves in to 2012, the Business Journal newsroom will become more involved as we will bring more of our resources to use in the publication, including contributions from our technology reporter, Patrick O’Grady. Editor Ilana Lowery and her team will look for other ways to integrate more of our newsroom resources and will help oversee content, working with Rodriguez. Ad sales for the magazine will become a part of the Business Journal’s responsibility, and our sales team, under the direction of Mike Mall, will look for opportunities to grow the franchise financially and ultimately bring you bigger and better TechConnects into

the years ahead. Advertisers in TechConnect also will have the opportunity to expand their exposure though frequency packages that now will include the full Business Journal menu: our weekly newspaper, our expanding online opportunities and the many events we hold each year. The Tech Council, under Steve Zylstra’s leadership, will be plenty visible in each edition of TechConnect as well, with significant pages allocated to council activities, members and events. And the Arizona Commerce Authority, the third key partner in this trio, will have an important role in each edition. Its leadership, including CEO Don Cardon and COO Sandra Watson, will be part of the team helping to contribute editorial ideas. Both Cardon and Watson recognize the value this magazine has in telling the Arizona technology story and will continue to use it as a tool to help build economic bridges to this state from across the globe. Finally, the Business Journal will be looking to create a significant online component that will feature content from the magazine as well as dig deeper into the vibrant technology industry we have in this state. We’ll be looking for partners and sponsors for that initiative, too. We are bullish on Arizona’s technology industry. It’s clearly gaining momentum and will be one of the key segments that builds the foundation of the knowledge economy we all know is so important to the state’s future. TechConnect as well as the Business Journal will be following it all. I look forward to your ideas and feedback.

DON HENNINGER Publisher


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Editor’s Letter

PUBLISHER Don Henninger

EDITOR Don Rodriguez

ART DIRECTOR

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Jim Nissen, Switch Studio

DESIGNER

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Global Gathering recall seeing not too long ago a television interview with Tom Brokaw asking questions of a trend watcher from Silicon Valley. (Doesn’t he know we have some of them in the Silicon Desert, too?) Brokaw asked the critical question reflecting these critical times: Could the “dot bomb” occur again as the economy struggles to recover? It could, the man responded, but there is a big difference this time: We aren’t just selling to the United States; we’re selling to the world. That conversation echoed in my mind when we were considering topics for this issue of TechConnect. Literally, what in the world is happening in Arizona? The International Issue is intended to give you some answers. We’ve long known Mexico as a key trade partner, and that hasn’t changed. But now you have to consider our neighbor to the north, Canada. Add to that Germany, Spain and other European nations. And coming

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across the Pacific is China, Australia and Taiwan (OK, technically that’s China, too). Companies from those nations recognized the benefits of being in Arizona and have set up shop here. This has given people here a chance to evaluate where we fit into the global picture. We share some food for thought from two people with track records of cluing Arizona’s tech community into the opportunities that await beyond our borders. Attorney Karen Dickinson explains what to consider before becoming an exporter. Doug Bruhnke, who heads several companies with an international focus, offers that we’ve just scratched the surface when it comes to taking part in the global marketplace. Find out which technology companies with overseas roots have a presence here and some of the reasons why. You’ll also learn why some parts of the world can only get what they need from firms that call Arizona home. Our universities also have reached out to the rest of the

CONTRIBUTING WRITERS Doug Bruhnke

world to create partnerships to assist them in research and development. One university in particular has a renowned nanotechnology expert who will lead a campus-wide research program at his school as he furthers a record of success that had its start in India. Also, look inside for a special supplement from the Arizona Commerce Authority. They share some news on funding programs that could help Arizona firms make an impact abroad as well as here. Also, learn about some of the companies that have thrived with the help of the agency. So put away your passport. There’s no need for it during this brief tour we offer. I just hope it gets you thinking about your place in this world. There’s plenty of room for one more.

Karen Dickinson Joe Kullman Natalie Pierce James Robinson Bruce A. Wrignt Steve Yozwiak

ADVERTISING DIRECTOR Mike Mall

E-MAIL editor@techconnectmag.com

For queries or customer service, call 480-620-3759.

Entire contents copyright 2011, Phoenix Business Journal. Reproduction in whole or in part without permission is prohibited. Products named in these pages are trade names or trademarks of their

DON RODRIGUEZ

Editor, TechConnect Magazine

respective companies. All rights reserved.



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WRITING BY :: DOUG BRUHNKE

ears ago I stood on the statehouse lawn with the Governor, who proclaimed cooperation with business and joint initiatives to grow exports. The result was a concerted effort by government and industry to create an export ecosystem that ultimately delivered a doubling of exports in 5 years. Arizona? No, it was Utah. Arizona has made slower progress in international trade compared to most other states, including Utah, California and Texas. Each of those states has made greater per capita investments to encourage local companies to export and foreign companies to invest locally. Arizona is ranked below average in both exports and foreign direct investment (FDI). Greater Phoenix Economic Council (GPEC)

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reported at Arizona International Growth Group (AZIGG) that if Arizona improved to average in both areas, we’d create 84,000 more jobs. President Obama was being polite last month when he spoke about U.S. economic developers being “lazy;” they’ve certainly been complacent and, frankly, often misguided. I remember public meetings 5 years ago in Arizona where respected local leaders advocated keeping foreign companies out. I couldn’t believe my ears! Fortunately, since then organizations like GPEC, Arizona Commerce Authority, Arizona Technology Council, U.S. Commercial Service and Arizona Chamber of Commerce & Industry have been working with business and government to educate and build cooperation toward an improved future.

We are lucky to have many here in Arizona who are blazing the trail to grow exports and encourage investment. Arizona’s primary export markets are Mexico, Canada, China, United Kingdom, Germany, Japan and Singapore as our state holds nearly steady at No. 18 in the nation in exports, slipping down one spot since a year earlier. Most recently, Arizona’s FDI improved slightly, from No. 31 to No. 27. Relative to exporting and FDI hubs like New York, Chicago and Los Angeles, Phoenix area businesses tend to be less experienced in global business, historically relying on local population growth to fuel growth. It’s been easy to grow here—until now. With the severe recession, a new reality has begun to emerge. The desire for survival is overcoming inexperience and fear of failing in foreign markets. More and more, business leaders are looking overseas for growth while the community is doing more to encourage foreign investment. Only 1 out of 20 people in the world lives in the U.S. and 1 in 1,000 people lives in Arizona. Good business people find customers to pay for their products and services, and the opportunity to grow is overcoming local inexperience and fear. We have smart business people and government leaders who “get it,” driving some global growth. A recent visit by Korean companies to Phoenix is an example that the world looks to do business in Arizona. Never before had a trade mission of that size from Korea been available to provide an opportunity to discuss partnership for growth. Although well-attended, some local companies who should have been there were not. International business takes extra time and extra efforts, so I hope enough companies and government officials have the patience and skill to pull it off. I’m cautiously optimistic. Doug Bruhnke is CEO of Growth Nation, president of Arizona International Growth Group (AZIGG) and president of Arizona Council for International Visitors (AZCIV)

+ GET CONNECTED Growth Nation: www.growthnation.com Arizona International Growth Group: www.azigg.com Arizona Council for International Visitors: www.azciv.org


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CREATE CONTENT/DATA

CONSUME CONTENT/DATA

'Snack' Time Virtual desktop infrastructure opens the data buffet

hink of it as a “snack” in the cloud. At least that’s how Hunter Bennett, vice president of the managed hosting division for OneNeck IT Services, sees using a mobile device to access your office computer, thanks to the new virtual desktop infrastructure (VDI) that can store your desktop in the “cloud.” “Get to your data/applications in a pinch via your phone,” Bennett says. “It is good for ‘snacking’ on the data/apps at the desktop level.” More specifically, VDI refers to the process of running a user desktop inside a virtual machine that exists on a server in a

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data center. The desktop workload is being moved away from the PC or laptop and placed in the cloud infrastructure, making it also available to a tablet or smartphone. This is a plus for small businesses. “Small businesses benefit exceptionally because they often have significant IT needs/expectations around the desktop, however don’t have the support infrastructure or staff to properly maintain and manage it,” Bennett says. OneNeck is able to offer enterprise class service at a cost per user per month that small businesses can afford. Bennett suggests at least 10 VDI users to make it the most cost-effective, but OneNeck has the infrastructure in place that can implement

Let's Make a Deal Loop Demand Gen uses marketing automation software that leads to "yes!" ny sales professional will tell you generating leads is difficult enough. Try throwing in keeping track of those leads until they turn into sales. Can you say, “Mission: Impossible”? That’s where the use of the new marketing automation software comes in. The software allows clients to capture contact information from prospects online, score leads, nurture those prospects who aren’t yet ready to buy and integrate seamlessly with a customer relationship management (CRM) system to deliver leads to sales professionals. This gives marketing and sales professionals new tools and analytics that can maximize investments in digital and offline

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strategies, says Jared Bodnar, president of Loop Demand Gen, which provides strategydriven customer interaction management campaigns for business-to-business clients. “Using marketing automation software in concert with a CRM system really allows us to act as an extension of our clients’ sales teams,” Bodnar says of this new addition to his firm’s offerings. For example, Loop Demand Gen may use the software for a client to capture prospects’ contact information online, track them on the client’s Web site, score interactions, deliver contextual e-mails to prospects, and convert them into marketing qualified leads—all automatically. Bodnar says his firm’s business development

“SNACK” ON CONTENT/DATA

Get to your data/ applications in a pinch via your phone. It's good for 'snacking' on the data/apps at the desktop level. VDI across thousands of end users and hundreds of businesses. Bennett says the time is right for VDI to take hold as the technology at last is in place to deliver it. “We expect 2012 to be a breakout year for VDI as the next logical piece of the ‘cloud computing’ messaging in the industry,” he says.

+ GET CONNECTED OneNeck IT Services: www.oneneck.com

specialists access that information through a CRM application then follow up with phone calls to further qualify prospects. If the results are designated as salesqualified leads, appointments are set or the potential new customers are delivered to the client’s sales representative to close the deal. “This all happens seamlessly so our clients just sit back and benefit from more sales leads, meetings with decision makers, and additional pipeline and revenue,” Bodnar says. Although many of Loop Demand Gen’s clients are technology companies, valueadded resellers and systems integrators, the platform can offer results to all types of companies, Bodnar says. “Any business-tobusiness company with a complex sales cycle that relies on sales leads to fill its pipeline should seriously consider marketing automation software,” he says.

+ GET CONNECTED Loop Demand Gen: www.loopdemandgen.com

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IN ITS MOST BASIC FORM, THINK OF VDI THIS WAY:


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WRITING BY :: KAREN DICKINSON

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Exporting offers returns that often go untouched

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t least one of every five U.S. manufacturing jobs exists because of international trade and manufacturing plants that export pay above-average wages. We also export more in services than any country, supporting 2.8 million jobs in 2008. Every year the United States exports about $100 billion in agricultural goods. The day has passed when any nation can rely solely on domestic consumers to support its economy. So, we must reset how we think about the American—and the Arizona—economy and about ourselves.

first three quarters of 2011, with a 21 percent jump in 2010. Arizona can continue to build a new economy in which exports help support good-paying jobs. For companies that already export, the time is now to expand to new markets. For companies that are new to exporting, now is the time to reconfigure business plans to identify exporting opportunities. And, new global patterns are making it easier for you to do so. There will soon be 500 million new middle-class consumers in developing countries, which equals the total consumers in the U.S., Canada and Mexico.

WHY YOU SHOULD BE EXPORTING

WHY AREN’T YOU EXPORTING?

If you are not convinced yet, here is more good news. From 2002 to 2008, the only bright spot in manufacturing employment was export-related—posting an 11 percent increase—while everything else was in negative figures. Understanding exports create jobs, President Obama set a goal in 2010 to double America’s exports over the next five years to support the creation of 2 million U.S. jobs. To reach that goal, he created the National Export Initiative (NEI). Preliminary results look good: U.S. exports are up about 18 percent in just the

This is a question my international business buddies and I discuss all the time. It’s really not that hard, once you get the hang of it. However, even if the CEO of a company is considering exporting, the finance, IT, supply and sales personnel are often leery. If that is the case, spread out the change over a period of time with a business plan, to help everyone in the company adjust. If money seems to be a barrier, go back to prior editions of this column. Or, take a look at the NEI website to see what programs are available to help you. You can even sign up for e-mail updates.

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While there is not enough space in this column to explain all the ins and outs, here is a quick checklist of issues to remember: Intellectual property rights are geographic – A U.S. patent does not mean you have patent protection in China. Develop a global IP protection strategy. Don’t do business on a handshake – Factoid: husband and wife from the same culture, speaking the same language, only understand 10 percent of what they say to each other. Writing your agreement down helps you make sure you really have one. Export regulations – There are restrictions on exporting to certain countries, rules against exporting to individuals or companies that are “denied parties”, and requirements that products not be sold for certain uses, such as use in nuclear or biological weapons. The Arizona District Export Council has a seminar coming up in January on export regulations. The Foreign Corrupt Practices Act prohibits bribery of foreign governmental officials by U.S. companies and those acting for them to influence the official’s decision to direct business to the company. Knowing who you are dealing with is critical, because the U.S. government may hold you responsible if your distributor bribed someone to get that big overseas order. To be successful at international business, you need to understand your goals first, and then get help with the 20 percent from the experts, including international accountants, bankers and lawyers. With just a little bit of education and a good team, international business is within your reach. And, have fun—it brings people together and makes for good business! Karen Dickinson is an international business and intellectual property attorney at Quarles & Brady in Phoenix and chair of the Arizona District Export Council.

+ GET CONNECTED National Export Initiative: export.gov/nei Arizona District Export Council: www.export. org/event/bis2012


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Missing Link Merger is what iLinc needed to compete all it web collaboration squared. ilinc Communications, a leading provider of web collaboration services, has become Broadsoft iLinc Communications to reflect the Phoenix-based company’s acquisition by BroadSoft of Gaithersburg, Md. For the Arizona firm, that means its ability to speed up go-to-market strategies on various product roadmap items will enable it to more effectively compete with other firms in its industry, says Director of Marketing Drew Kaufman. iLinc meets the web collaboration needs across a broad range of industries—whether hosting internal meetings with colleagues in various locations to holding informative customer and sales webinars to conducting large training sessions online with several thousand attendees. Its popular tools will become BroadCloud Web Collaboration,

a software as a service (SaaS)-based web collaboration service that enables organizations to efficiently engage, learn and collaborate. “iLinc customers won’t experience any impact as iLinc continues to operate as it always has,” Kaufman says. “Our ability to enhance the iLinc solution, however, is significantly greater.” In short, more muscle for what it does best. Or web collaboration squared. Even better news for the Arizona economy, Broadsoft iLinc Communications will stay in the Valley, despite the parent being based in the East. That means the staff of approximately 25 employees will remain. No new hires are planned at this time, Kaufman says. “The fact that iLinc will not be relocated underlines Broad Soft’s commitment to maintaining a presence in Arizona, taking advantage of its accessibility to both quality staff and technological resources,”

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—Director of Marketing, Drew Kaufman he says. “iLinc will also be able to gain a greater national footprint due to increased marketing resources.” BroadSoft already provides software that enables mobile, fixed-line and cable service providers to deliver voice and multimedia services over their IP-based networks. Its BroadWorks enables service providers to provide enterprises and consumers with a range of cloud-based IP multimedia communications, such as hosted IP private branch exchanges, video calling, unified communications, and converged mobile and fixed-line services. + GET CONNECTED Broadsoft iLinc Communications: www.ilinc.com

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The Phoenix Business Journal covers the best of the best in Valley technology. At the Business Journal, we deliver headlines to your email daily, update our website hourly and publish in-depth articles in print every Friday. And starting now, we’ll partner with the Technology Council as we oversee publication of Tech Connect, a magazine centered on the state’s technology industries. Turn to the Business Journal and Tech Connect for the most in-depth coverage of Arizona’s technology industry.

phoenix.bizjournals.com

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Our ability to enhance the iLinc solution is significantly greater.


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Senator of the Year Sylvia Allen receives her award from Gregory Ensell (left), manager of government & public affairs at Cox Communications, and Ken Quartermain, Jr., of Public Policy Partners Photo by Mark Goldstein

OTHER WINNERS AND THEIR CATEGORIES

ONENECK IT SERVICES PEOPLE'S CHOICE LIFETIME ACHIEVEMENT AWARD

WILLIAM F. MCWHORTOR COMMUNITY SERVICE LEADER OF THE YEAR James C. Wyant, Dean, College of Optical Sciences, The University of Arizona, Tucson

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Roy Vallee, executive chairman of the board of Avnet Inc., Phoenix

ED DENISON BUSINESS LEADER OF THE YEAR Clate Mask, chief executive officer, Infusionsoft, Gilbert

TEACHER OF THE YEAR AWARD WINNER

Birgit Musheno, Desert Vista High School, Phoenix

Winners honored at annual Governor’s Celebration of Innovation nyone who thinks innovation is the cost of a recession couldn’t be more wrong. Winners in a variety of categories were announced recently at the 2011 Governor’s Celebration of Innovation, an annual gala hosted every year with the Arizona Technology Council, in partnership with the Arizona Commerce Authority. The evening was held at the Phoenix Convention Center.

This year’s event, with the theme of “Arizona Rising,” also featured a Technology Showcase with over 50 booths, providing an opportunity for award finalists and sponsors to discuss and demonstrate their exceptional products and services to the over one thousand attendees. The prizes generating he most buzz by the audience were in the company award categories. The winners this year are:

Yulex Corporation, Chandler This renewable and sustainable enterprise has developed a portfolio of biopolymers derived from the U.S.-grown guayule plant. These technological innovations are designed to replace traditional tropical or petroleum-based rubber for consumer, industrial and medical markets and residual agricultural materials are utilized as a feedstock for bioenergy.

OneNeck IT Services, Scottsdale The award is recognition of its Hosted Desktop Solution, a virtual desktop infrastructure (VDI) that separates a desktop PC environment from a physical machine using a distributed application structure model of computing. VDI moves the desktop workload away from the desktop PC and places it in the cloud infrastructure, creating a hosted virtual desktop.

Phoenix Analysis Design Technologies (PADT), Inc., Tempe The diversity and flexibility of the three business groups at PADT (Simulation, Product Development, and Rapid Prototyping) help deal with market fluctuations while presenting its customers with a single, “one-stop” solution for their engineering needs.

The University of Arizona’s Lunar and Planetary Laboratory (LPL) The lab won hard earned approval from NASA for the OSIRIS-REx mission, an $800 million first-of-a-kind project designed to go to an asteroid, collect a substantial amount of materials from both bulk and finegrained surface form, and return them to Earth. The total mission will span 14 years.

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Plenty of Pride

TEACHER OF THE YEAR AWARD HONORABLE MENTIONS

Paul J. McElligott, Fountain Hills High School, Fountain Hills Sandra Trevino, Buena High School, Sierra Vista

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FUTURE INNOVATORS OF THE YEAR AWARD WINNERS

Aakash Jain, Brophy College Preparatory High School, Phoenix Francisco Orozco, Tucson Magnet High School, Tucson Cory Owan, Catalina Foothills High School, Tucson Rajet Vatsa, Brophy College Preparatory High School, Phoenix

FUTURE INNOVATORS OF THE YEAR AWARD HONORABLE MENTIONS

Colby Howell, Hamilton High School, Chandler Soumya C. Kambhampati, McClintock High School, Tempe


TOP LEGISLATORS The awards were given in recognition of legislative members who have demonstrated outstanding support for promoting and advancing Arizona as a top-tier technology state.

OUTSTANDING TECH SENATOR OF THE YEAR AWARD Sen. Sylvia Allen (R-District 5)

Honeywell Aerospace, Phoenix As one of Honeywell International’s largest business groups, it was responsible for the development and certification of a low-emissions turbofan jet engine. The engine is used to power a business/regional size aircraft that enables a trans-Atlantic flight of more than 3000 nautical miles. The low-emission engine was certified in 2010, achieved a 27 percent reduction in NOx emissions with significant reductions in other pollutants.

OUTSTANDING TECH REPRESENTATIVE OF THE YEAR AWARD Speaker of the House Andy Tobin (R-District 1) Arizona State Senate: Sen. Richard Crandall (R- District 19), Sen. John McComish (R- District 20) and Sen. Kyrsten Sinema (D- District 15) Arizona House of Representatives: Rep. Heather Carter (R- District 7), Rep. Tom Forese (R- District 21), Rep. Eric Meyer (D- District 11), Rep. Amanda Reeve (R- District 6), Rep. Debbie Lesko (R- District 9), Rep. Ted Vogt (R- District 30) and Rep. Kimberly Yee (R- District 10)

VisionGate, Phoenix The firm was incorporated in 2001 to battle the world’s No. 1 cancer killer, lung cancer, for which no standardized test exists. Dr. Alan Nelson, the company’s founder, chairman and CEO, has created the first automated 3D cellular imaging platform, which is the basis for non-invasive lung cancer detection and screening, the CellCT™. Today, VisionGate holds 64 patents in 13 countries.

Justin Williams Founder at StartupTucson.com, CEO at DLJ Group Inc., founder at Selectioneering, and former director, Tucson Regional Office at Arizona Technology Council. Williams, not only opened the Council’s first Tucson office, he achieved a 500% membership growth in southern Arizona.

one million and climbing The HTF7000 engine reaches one million hours in operation. Pardon us as we pause, momentarily, to mark another outstanding HTF7000 turbofan engine, is the proud winner of the “Innovator of the Year” award at the Arizona Technology Council’s 2011 Governor’s Celebration of Innovation. Honeywell was recognized for development of the low emissions engine for business jets—designed, tested and built primarily in Arizona.

For more information, please visit honeywell.com. ©2011 Honeywell International Inc.

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achievement for Honeywell’s technology. Honeywell, maker of the


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8.2% 9.1% Vacancy Rates 9.6% 20 Largest Markets 10.7% 11.0% 12.0% 12.4% 4 13.0% 13.1% 13.4% 13 4% 13.4% 13.7% 13.9% 15.2% 15 3% 15.3% 16.6% 17.0% 17.4% 8 % 18.7% 22.1%

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fter looking at the evidence, we believe it will become obvious that Phoenix and Tucson are very likely at or very near a bottom in terms of rates and concessions offered by landlords. Perhaps more important, we may also be in one of the best times for those considering new space, as there are currently multiple options available in most size ranges. The first reason to believe the office markets may be at or near bottom is to consider the current facts from the supply perspective. One measure of supply in the office market is the vacancy rate: The higher it is, the greater the supply. If it is rising, you would expect to see a reduction in asking rents. If it is falling, there is likely to be a trend for rising rates. The vacancy rates for the Phoenix market overall is 21.1 percent. That is broken down further to a vacancy rate of 24 percent for Class A and 21.7 percent for Class B space. In Tucson, the vacancy rates are 12.4 percent, comprised of 13.5 percent for Class A and 13.4 percent for Class B. Of course, looking at a snapshot of vacancy rates does not give as clear a picture as looking at trends. The vacancy rates in Phoenix had leveled off for roughly the

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last six quarters, and for the first time since 2006, we are starting to see actual net absorption across all building classes. Although one quarter of net absorption does not make a trend, that, coupled with the extended period of basically flat vacancy rates, tends to imply we are through the worst in terms of climbing vacancy rates. In Tucson, the picture is slightly different. To begin with, the vacancy rates are much healthier. Though they have been increasing from mid-2007, they also seem to have leveled out in the past two to three quarters. We believe it is useful to consider office space as little more than a warehouse for white-collar jobs. The aggregate number of square feet per white-collar employee seems to be close to 250 square feet. So for every 1,000 square feet of office space, it is useful to assume we need four white-collar jobs. Assuming this is the case, we should get a sense for how the demand side of the office economy is faring by looking at the creation or destruction of such jobs. If that trend is moving forward, it seems likely we will have a need for more office space.

THE WORST IS OVER At the current rates of growth, it will be years before we have a healthy office

We believe it is safe to assume we are either at or very near the bottom of this market. market. But what the statistics do seem to demonstrate is it is unlikely things will get much worse. In looking at the data, we believe it is safe to assume we are either at or very near the bottom of this market. Vacancy rates have stabilized. There is no new construction of any scale in progress. It seems we may have a breakeven in whitecollar job growth and the trend is looking like we may actually begin to have small amounts of growth in this area. Buildings appear to be working through the issue related to financing, though there is still much to be done on that front. None of this should be mistaken to imply that things are good. We are at the bottom of a very bad economy. Our vacancy rate is the worst in the United States, as can be seen in the figures. As you would expect in this kind of economy, rental rates are at their lowest point in years, and concessions are at their highest. We believe the market will continue in this vein for at least 12 to 18 months before there are significant signs of improvement. So, is it the best of times or the worst of times? That depends on whether you are a landlord or a tenant. James Robinson is founder and president of Phoenix Realty Advisors (www.phoenixrealtyadvisors.com), a commercial real estate brokerage that focuses on tenant representation and buyer brokerage of office properties.

+ GET CONNECTED Phoenix Realty Advisors: www.phoenixrealtyadvisors.com


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There it goes again.


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Consulates and advisors help international firms walk the line when considering Arizona for new tech sites

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WRITING BY :: DON RODRIGUEZ

nd you thought our international visitors were just coming here to golf. Granted, these tourists do that. And they go to the Grand Canyon. And they get their ties cut off at steakhouses. And they swim outside in January. But there are three things they do in particular that are as important: watch, ask and learn. “What’s it like to live here?” “What’s it like to work here?” Eventually, some of the visitors return— along with their businesses. This is especially true when it comes to science and technology firms. For many, our state is the springboard for connecting with the entire United States. This all goes beyond our long-time relationship with Mexico, not dismissing the partnerships that have been created. Instead, look to the north, east and west.

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That would include nations such as Canada, the United Kingdom and now China. The draw for technology companies? “An open and collaborative business environment with access to Mexico and California markets,” says Dawn Nagle, trade commissioner with the Consulate of Canada in Phoenix. Nagle is in a unique position to help Canadian companies considering the move to Arizona, whether they are entering the state for the first time or expanding operations. Similar assistance is provided for U.K. companies by Matthew Whiteley, vice consul, Tech City Investment Organisation at the British Consulate-General Los Angeles. And for China, the person to know in Arizona is Jon J. Wang, managing director for China Direct Group in Scottsdale. While Nagle and Whiteley are official representatives of their respective


While they are not limited to working exclusively with technology firms, this is

partnerships, we can help you make the most of your market strategy,” Nagle says, even if that means referrals to local firms for additional market research. And talk about connections. The list includes potential buyers and partners, professionals in financial and legal institutions, technology sources, and even foreign investment promotion agencies. The road goes both ways. Besides getting U.K. companies to understand how to compete here, Whiteley says, “much of our work in Arizona involves helping Arizona-based companies exploit business opportunities in the U.K., so ultimately we’re trying to connect Britain with Arizona no matter in which direction inward investment takes place.”

COMPANY NAME

SOURCE COUNTRY

ARIZONA LOCATION

SECTOR

BUSINESS ACTIVITY

Electro Optic Systems EnviroMission Bombardier Western Wind Energy Linamar AirTest Technologies Suntech Power Holdings Suntech Power Holdings Saint-Gobain Solon Schletter Solon Degerenergie Lufthansa Miele Automatic Netware (Bookassist) NTR Mitsubishi Corporation NanoTechology - Modular Devices & Tools Iberdrola Albiasa Gestion Industrial SA Roche Group Pan Jit (Panjit)

Australia Australia Canada Canada Canada Canada China China France Germany Germany Germany Germany Germany Germany Ireland Ireland Japan Russia Spain Spain Switzerland Taiwan

Tucson Phoenix Tucson Not Specified Glendale Not Specified Goodyear Goodyear Goodyear Kingman Tucson Phoenix Not Specified Scottsdale Scottsdale Phoenix Maricopa Not Specified Tempe Not Specified Kingman Oro Valley Tempe

Space & Defense Alternative / Renewable Energy Aerospace Alternative / Renewable Energy Electronic Components Electronic Components Electronic Components Electronic Components Ceramics & Glass Alternative / Renewable Energy Industrial Machinery, Equipment & Tools Electronic Components Communications Aerospace Consumer Electronics Software & IT Services Alternative / Renewable Energy Chemicals Electronic Components Alternative / Renewable Energy Alternative / Renewable Energy Medical Devices Electronic Components

Manufacturing Headquarters Maintenance & Servicing Electricity Manufacturing Sales, Marketing & Support Manufacturing Manufacturing Manufacturing Electricity Manufacturing Sales, Marketing & Support Manufacturing Customer Contact Center Retail Sales, Marketing & Support Electricity Manufacturing Research & Development Electricity Electricity Manufacturing Headquarters

BOMBARDIER

ENVIROMISSION

LUFTHANSA

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TECH TALK

the sector that has generated quite a lot of buzz, especially as the economy gets back on its feet. All three work behind the scenes so the businesses that do make the Arizona connection stay in the forefront. For Canadians, Nagle can provide up-todate market intelligence, including potential barriers and regulations associated with entering a specific region as well as share knowledge about upcoming opportunities. “We are able to provide you with an inside look at what’s going on in your area of business,” she says. The consulate can advise and resolve problems such as customs clearance and shipping, and unfair business treatment. Also, “whether you’re looking to export, invest abroad or seek technology and R&D

SOURCE: THE FINANCIAL TIMES LTD 2011

governments, Wang runs an independent firm. Still all have the resources and contacts that enable businesses in their respective regions of the world to set up shop in Arizona. “One of the key services we provide to Canadian companies in Arizona is connecting to resources within the state,” Nagle says. Whiteley notes,” We’re very keen to highlight and ‘sell’ the benefits of doing business in Arizona.” And Wang says, “We bridge the gap between Arizona and China for companies that are doing or interested in doing business across the Pacific in China or the U.S.”


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WE’RE VERY KEEN TO HIGHLIGHT AND ‘SELL’ THE BENEFITS OF DOING BUSINESS IN ARIZONA. That’s very similar to what Wang does as his firm connects U.S. companies with Chinese governments and potential partners in China in addition to mediating and facilitating business negotiations in what can be a new culture for those involved. “We help set up operations in China as well as assist companies implement a right strategy in China,” he says. When it comes to setting up operations in Arizona, it’s more than just putting up a building here. “For many business owners and top managers, to move their families to the U.S. for a better life and for their children to receive high quality education” are drivers for making the move, Wang adds.

ALL IN THE NUMBERS

Something must be working. There are more than 130 Canadian companies in Arizona representing more than 13,500 jobs in the

state, Nagle says. Noteworthy in the tech sectors, Bombardier won the $255 million contract for the people mover project at Phoenix Sky Harbor International Airport. And recently, Canada-based Linamar Corp announced plans to establish a manufacturing facility in Glendale to supply power conversion units to the new Stirling Energy’s SunCatcher concentrated solar power installation. British businesses account for 12,500 jobs in Arizona—16% of the 76,000 jobs created by foreign-owned affiliates in the state, Whiteley says. He adds that total puts the U.K. ahead of Germany and France, and just behind Canada when it comes to international firms operating in Arizona. In technology sectors, the photonics expertise in Tucson as well as the technology cluster in Scottsdale are attractive to U.K. companies, Whiteley says. Also, SkySong in Scottsdale

+ GET CONNECTED China Direct Group: jwang@chinadirectgroup.com Consulate of Canada in Phoenix: www.phoenix.gc.ca UK Trade & Investment: www.techworld.uk.com

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—MATTHEW WHITELEY, VICE CONSUL

hosts Alaris, the U.S. licensee of Rolls-Royce’s Sign Hear signature verification technology, which is a joint venture between Rolls-Royce and Arizona State University, he says. As for China’s presence in Arizona, it really is just starting. Wang cites the major player now is SunTech, the world’s largest manufacturer of solar panels, which opened its only U.S. facility in Goodyear. Following a trade mission to China led by Gov. Jan Brewer, who was accompanied by representatives from the Arizona Technology Council and the Arizona Commerce Authority, some major announcements are expected that could boost that nation’s presence. All of this activity does more than just help the companies prosper. The trickle-down effect is the state benefits because of the new money that enters the Arizona economy. Not a bad way to be rewarded for cutting off someone’s tie.

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Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2010 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Contact: John E. Cummerford in Phoenix at 602.445.8000. These numbers are subject to fluctuation. §Greenberg Traurig was selected by Chambers and Partners as USA Law Firm of the Year, 2007. 10187


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ith the creation of the Arizona Commerce Authority, Arizona’s resolve to engage in global competition is no longer an objective or hope, but a reality. The newly formed Arizona Commerce Authority (ACA) became officially operational on July 1 with an entirely new outlook on economic development. First, establish and couple the most business friendly environment in the nation with Arizona’s superior quality of life. Second, change how Arizona competes by relying less on traditional approaches and focusing more on vision, entrepreneurial solutions, and an absolute passion to turn our objectives into realities.

Arizona’s resolve to engage in global competition is no long an objective or hope, but a reality. The ACA has hit the ground running. With Gov. Jan Brewer’s visionary leadership, and support from the Legislature, the ACA inspired the most significant economic advancement policies in the state’s history: the Arizona Competitiveness Package. The creation of the ACA facilitated the transfer of the state’s economic vision from a bureaucratic agency to private sector governance. This helped instill the confidence of business to commit more than $10 billion dollars in capital investment, resulting in the creation of more than ten thousand jobs. In addition, the ACA continues to aggressively pursue opportunities to secure funding to help local businesses already

established in the state grow. The ACA is using a three-pronged approach to bring new, high-quality jobs to Arizona. The ACA has assembled a talented business development and attraction team aimed at growing and maintaining businesses already established in Arizona, attracting new businesses to relocate or expand to the area, and reaching out internationally to further diversify the Arizona market. A key area of focus is developing Arizona’s innovation ecosysem, which thrives on talent and capital. From pre-venture to start-up, to corporate expansion, the ACA is helping start and grow companies in globally recognized industries like aerospace and defense and semiconductors, and nascent industries like life sciences, software and clean-tech. Entrepreneurs need mentoring, management talent and risk capital to commercialize their ideas. Established businesses need a high-quality workforce and investment capital to expand and capitalize on market opportunities. The ACA collaborates on training and finance programs across the state to address this continuum of needs for technology, manufacturing and export companies that are the organic growth engine for Arizona job creation. In the end, this is about Arizonans coming together. No gimmicks, no hype. Just the resolve to seriously engage in global competition with focus, resources and passion. This is the ACA.

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$18.2 Million for Loan Participation Program he Arizona Innovation Accelerator Fund (AIAF) Program is a new $18.2 million loan participation program managed by the Arizona Commerce Authority (ACA) with the goal of spurring financing to small businesses. Loans will be made in collaboration with private finance partners to foster business expansion, capital investment and job creation in Arizona. The funding originated from a Federal program called the State Small Business Credit Initiative. The AIAF is a five-year program, ending December 2016, and provides financing for

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up to 50 percent of a new credit facility. The program’s loan participation may range from $50,000 to $2 million on any one facility and may not be used to support loans greater than $20 million. Loan proceeds are to be used for business purposes such as working capital, inventory, equipment purchase, and real property improvements but cannot be used for refinancing of existing debt or outstanding debt payments. The debt offered will be in the form of lowinterest loans with favorable payback terms. These loans may be subordinated to existing or new debt and should aid borrowers in raising debt capital from private sources for the majority (>50%) of their loan.

Eligible companies will typically have commercialized their technology/products, are generating revenue and can show job creation as a result of the AIAF loan participation. The ACA is currently developing program guidelines for its Arizona Innovation Accelerator Fund Program with the goal of implementation in late Q4 2011 to early Q1 2012. Applications will be received at that time.

+ GET CONNECTED www.azcommerce.com and click on “Incentives”

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Arizona Innovation Accelerator Fund to help state’s small businesses and manufacturers


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In STEP with Needs of Small Business

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Distribution of grant funds to bolster international export activity

he Arizona Commerce Authority (ACA) has been awarded $656,000 from the U.S. Small Business Administration State Trade and Export Promotion Grant Program (STEP) in an effort to advance the state’s international position by increasing small business export activities. The ACA is the sole state entity that specializes in small business export promotion, therefore the ACA’s STEP Grant, named the E4 Initiative, aims to: (1) engage small businesses by marketing prospective

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export opportunities; (2) enable small businesses to commence or advance export activities by offering educational and economic tools and (3) evaluate the results once the proposed activities are implemented in order to (4) elevate the level of export activity. The goal is to develop and provide high-impact educational services through a state-wide system of specialized export trade professionals to meet the complex needs of small business exporters. The ACA coordinates and integrates the efforts of key partners such as the statewide

network of SBA, US Commercial Service, Small Business Development Centers (SBDCs), state universities, community colleges, local and regional economic development groups, state and regional trade associations, workforce development groups and other community and business leaders.

+ GET CONNECTED For more information on the E4 Initiative and how your business may apply for grant funding, contact Karla Teixeira at (602) 845-1256 or karlat@azcommerce.com.


Profile

On the Road to Success Post.Bid.Ship. selected as one of technology start-ups to receive Innovation Challenge funds

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with half of that capital coming from members of the Desert Angels, a Tucsonbased network of individuals who invest in technology start-ups. After four months of development, Post.Bid.Ship. debuted the first release of its product (www.postbidship.com) at the Food Marketing Institute Supply Chain Conference in January. According to Thompson, “At the Food Marketing Institute trade show, we learned how hungry commercial shippers are for an online tool to bid out their transportation needs. The positive reaction by food shippers to Post.Bid.Ship. led us to focus our sales efforts on the food industry.” Just as Post.Bid.Ship. began to ramp up its sales activities, the company received a grant from the Arizona Commerce Authority (ACA). The ACA selected Post.Bid.Ship. as one of eight Arizona technology start-ups to receive funds under its Innovation Challenge program designed to spur job creation in Arizona. “The ACA grant couldn’t have come at a better time for our company. The grant enabled us to accelerate our growth and hire sales and customer service staff sooner than we anticipated. We are grateful to Governor Brewer and the ACA for recognizing the potential in Post.Bid.

The ACA grant couldn’t have come at a better time for our company. —CEO Jarret Hamstreet

Ship.,” stated Jarret Hamstreet, Post.Bid. Ship.’s Chief Operations Officer. Today, nearly 500 companies have registered with Post.Bid.Ship., including 300 trucking firms that collectively operate more than 82,000 trucks. Post.Bid.Ship. continues to target customers from the food industry and plans to expand into other market segments in 2012.

+ GET CONNECTED www.postbidship.com

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ost.Bid.Ship., a Tucsonbased start-up company, aims to make commercial freight transportation more efficient and affordable by using the Internet to match trucking companies with firms who need their goods transported. “We compare our business model to Priceline.com. Just like Priceline helps hotels sell empty rooms, Post.Bid.Ship. helps trucking companies sell unused space on their trailers,” said Micky Thompson, Post.Bid.Ship.’s chief executive officer. Thompson and Post.Bid.Ship. co-founder Jarret Hamstreet developed the concept for their company while working toward their MBAs at The University of Arizona’s Eller College of Management. For nearly a year, Thompson and Hamstreet researched the commercial freight transportation industry as participants in the McGuire Center for Entrepreneurship. Post.Bid.Ship. earned McGuire’s award for Best Venture Grand Prize in 2010. With the encouragement and financial backing of private investors in Tucson, Thompson and Hamstreet launched Post. Bid.Ship. during the summer of 2010. The company raised $500,000 in seed capital,


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Motor Excellence adds 41 jobs, 13,000-sq.-ft. manufacturing facility, thanks to grant

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otor Excellence (ME), an innovative clean technology company based in Flagstaff, Arizona, develops a new class of high efficiency, transverse flux electric motors and generators for use in a vast range of applications. Unique in its design, the ME technology revolutionizes conventional standards and offers an unprecedented 21st century answer to a world tied to inefficient 19th century motor technologies. Motor Excellence’s new class of electric motor and generator technologies depart from longstanding industry practices and electrical engineering assumptions. ME’s products, unique in their architecture, utilize an innovative new approach, which brings significantly improved power and efficiency. In 2010, Motor Excellence received a grant from the 21st Century Grant Program coordinated by the Arizona Commerce Authority (ACA). The grant program utilized federal stimulus funds to invest in and promote energy efficient and renewable energy products manufactured in Arizona. Motor Excellence planned to leverage the grant funding to grow from its then

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5,000-square-foot facility into an additional 13,000-square-foot manufacturing facility by 2011, and from 19 to 70 total employees by the end of 2013. During the third quarter of 2011, Motor Excellence’s leading technology, the 5-inch motor, moved from research and design to pilot production. The Company builds its high efficiency motor in the new 13,000-square-foot facility made possible by the ACA grant. “The 21st Century Grant allowed Motor Excellence to expand their facilities, purchase the manufacturing equipment and hire the team needed to turn their designs into real products,” said Arizona Commerce Authority CEO, Don Cardon. Motor Excellence president and Flagstaff resident, Jon Mrkonich is dedicated to creating jobs for Arizona and revolutionizing motor technology. “ME is committed to empowering a better future,” said Mrkonich. “Our team focuses on bringing this revolutionary technology to market and reducing dependence on fossil fuels. The 21st Century Grant funds acted as a catalyst for Motor Excellence’s growth and allowed us to significantly advance our business plan.”

ME is committed to empowering a better future. —ME President Jon Mrkonich The Arizona Commerce Authority recently awarded Motor Excellence with Arizona Job Training Grants to fund training programs for existing and new employees. “We leveraged past grant funds to build a world-class team,” said Mrkonich. “The Arizona Job Training Grants provide our team with the resources and skills necessary to solidify Motor Excellence as the cutting-edge leader in revolutionary motor technology.”

+ GET CONNECTED www.motorexcelence.com


Profile

Winning Ways Work for the World ince its founding in October 2009, company representatives have visited Korea, Europe, China and Southeast Asia with one goal in mind: to create the most advanced film thickness measurement and control technology in the world. And Colnatec is well on its way to doing just that. With 10 employees and some help from state and national grants, Colnatec has been able to identify, design, and now create novel sensors for processes that will enable its customers—equipment builders, research institutions and enduser manufacturers—to control what they’ve previously been unable to control: atom-by-atom construction of cutting edge microelectronic devices. Colnatec designs, develops and manufactures state-of-the-art sensors and electronic instrumentation used in the production of thin film solar cells, OLED displays (cameras, cell phones, monitors), optics, high-speed electrical devices and semiconductor wafers. Through the use of patented and patent-pending technologies, Colnatec customers are able to increase the conversion efficiency of photovoltaic films, increase production run times, lower costs, improve overall performance, and

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They provided us with the boost we needed when we needed it. —Colnatec CEO Wendy Jameson ultimately increase yield. Colnatec is the holder of numerous patents, the recipient of Department of Energy Phase I and Phase II SBIR (Small Business Innovation Research) Awards for a revolutionary sensor to be used in manufacturing CIGS solar cells, and one of eight winners of the Arizona Commerce Authority (ACA) Innovation Challenge Grant. “Arizona has been particularly helpful in getting Colnatec’s technology off and running,” said CEO Wendy Jameson. “The Town of Gilbert helped us attract and retain quality employees, and the funding we’ve received from the ACA helped pay R&D expenses and buy expensive new equipment at a time when

getting financing was especially difficult. They provided us with the boost we needed when we needed it, and we’ve delivered on every promise made. We now have 10 test beds for novel sensor systems in four countries.” More recently, Colnatec has been participating at a national level in advising the Department of Commerce on small business through the White House Business Council Roundtable. Subsequently, Jameson was featured on the official White House website as a Champion of Change, and she and chief technology officer, Scott Grimshaw, participated in a forum on jobs and competitiveness at the White House in November. “Talking to manufacturers of multiple systems around the world has given us a unique perspective on innovation, small business, and job growth. But this is the first time my government has reached out to me, the individual entrepreneur, for my opinion on what would help America’s small businesses,” said Scott. “I welcome the challenge.” + GET CONNECTED www.colnatec.com www.facebook.com/colnatec www.blogspot.colnatec.com www.twitter.com/colnatec

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After getting Innovation Challenge grant, Colnatec making international impact


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Grant provides critical source of capital to produce MSDx’s first Research Use Only product

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n 2008, MSDx Inc. discovered a novel source of biomarkers that reflects the disease activity in patients with multiple sclerosis. The company is commercializing blood test products for neurological and autoimmune disorders. MS is the first disease of focus. MSDx is pioneering technology that can be utilized in other neurological diseases for growth opportunities in the future. This technology fills an unmet need in MS research. Currently there are no blood-based biomarkers available for monitoring therapeutic response. Today, a patient is monitored utilizing magnetic resonance imaging techniques (MRI). This is costly and lacks the sensitivity needed to measure subclinical activity in the patient. This biomarker panel will provide physicians with critical information that aids in monitoring disease progression and tracks response to drug therapy. MSDx is developing this patent pending technology into simple blood test products that will be sold to research and clinical laboratories around the world. The lack of meaningful data creates a challenge in patient management. Ultimately healthcare costs can be reduced if disease progression is slowed by getting MS patients aligned with the optimal medication. After four years of R&D and over $1 million of investment, the company is

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launching its first product. The Arizona Commerce Authority’s grant was a critical source of capital used to produce MSDx’s first Research Use Only product called NK Cytolytic Competency Kit. This grant also helped MSDx fund its website shopping cart, the alpha studies, marketing materials, and many more important costs. The grant came at an important time to the company. The additional four products will release over the next twelve months. The company successfully completed two clinical studies that provided meaningful information on the use of the MSDx biomarker panel in more than 400 patient samples from eleven sites across the country. The first site was Barrows Neurological Institute in Phoenix. MSDx is an example of a company that has utilized many of the resources available in Arizona. Originally MSDx formed as a student company in the University of Arizona Eller Business College and the McGuire Center for Entrepreneurship. The company moved immediately to the Arizona Center for Innovation, the high-tech business incubator at the UA Tech Park. In addition, MSDx utilizes the University of Arizona ARL Core laboratory for important analytical testing. The Tucson Desert Angel group has been important from both an investment perspective as well as mentoring. This fall the company

was selected to participating in three investor conferences: Invest Southwest in Phoenix; MidAmerica Healthcare Venture Forum in Louisville Kentucky; and The Life Science Summit 2011 in New York City. Being a part of the entrepreneurial ecosystem has been fundamental to both surviving and thriving. Not only does a company like MSDx need great people with the right kind of expertise, but they need to have the flexibility, commitment and passion needed to navigate the challenges of an early stage company. The company was founded by Stephen Bassett, Allan Conger, Rick Gibson, Simran Nirh, and Marie Wesselhoft. Today the company’s operating team consist of Marie Wesselhoft, President; Dr. Ramesh Nayak, Director of Research, Ray Jacolik, Manager of Development and Operations, Melita Ball, Director of RAQA, Betty Weaver, Controller, and Thomas Prentice, Associate Product Manager. Conrad Plimpton and Mike Sember are important board members bringing market and investment expertise. The company works closely with important local legal and regulatory partners as well. It truly takes a community to raise a company.

+ GET CONNECTED MSDx Inc.: www.msdx.com


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{ UPDATE::UofA }

The University of Arizona promotes global business development W RITING BY :: BRUCE A. W RIGHT

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Reaching Out

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he University of Arizona’s main campus sits on 391 palm-lined acres in central Tucson, but its reach is truly global. A big part of the international flavor comes from its vibrant student body. This year the university is home to nearly 2,600 international students, representing 99 countries. Their diverse cultures and perspectives enrich both the university and the Tucson community. In addition to welcoming incoming international students, the university also reaches outward beyond our borders. “The University of Arizona is engaged in academic programs, service, and research projects in regions across the globe,” says Dale LaFleur, assistant director, UA Office of Global Initiatives. “We have initiatives involving UA faculty, students, and their global partners currently underway in Africa, Asia, Australia and Oceania, Europe, Latin America, North America, and the Middle East.” Given this commitment to global engagement, it’s not surprising the university is also a leader in supporting international business development.

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As part of its mission to enhance the economic well being of Tucson and the state, the university plays an active role in the recruitment and support of international companies interested in entering the local market. The Office of University Research Parks (OURP) has spearheaded much of this activity. The office manages the UA Tech Park, home to 50 companies and organizations— many of which have strong international connections through sales, research partnerships, or other collaborative efforts. In some cases, international companies have made their U.S. base at the Park specifically to engage in collaborative research with The University of Arizona. Canon USA, for example, is the U.S. branch of a Japanese firm that has a strong research relationship with the UA College of Optical Science.

GLOBAL ADVANTAGE While OURP works with companies involved in all aspects of technology, much of its recent effort has focused on the fields of renewable energy and border security technologies. Many of these companies are attracted by the Office’s Global Advantage program. “Through our Global Advantage

Cross-border technology development is important for Arizona because it creates highpaying jobs. -Margie Emmermann, executive director of the Arizona-Mexico Commission

program, we provide a ‘soft landing’ for international companies working to establish a presence in the U.S.,” says John D. Grabo, director of business development. “This is invaluable to the companies, and it benefits us, too, by encouraging companies to choose Tucson as their US base of operations.” Located at the UA Tech Park, Global Advantage provides office space, labs, and support services for international companies as they enter the market. Equally important, companies find a wealth of expertise and resources— including introductions to key


RIGHT PLACE, RIGHT TIME The UA Tech Park’s location— just an hour from the U.S.-Mexico border—has also helped it to become a focal point for crossborder technology development efforts. The Park is actively involved with companies working to develop technologies to make the U.S.-Mexico border safer, while facilitating the free flow of trade. Many of the Park’s cross-border initiatives have been in partnership with the ArizonaMexico Commission, a nonprofit organization aimed at improving the well-being of Arizona residents by promoting strong relationships with Mexico and Latin America. “Crossborder technology development is important for Arizona because it creates high-paying jobs,” says Margie Emmermann, executive director of the Arizona-Mexico Commission. “It also provides the opportunity to create new technologies that will benefit the border region. Facilitating the flow of trade and people between Mexico and Arizona translates into greater economic vitality for the state.” To stimulate growth of Arizona’s border technology sector, UA Tech Park

is developing the Border Testing and Evaluation Center (BTec). BTec will enable companies to test, evaluate, demonstrate, and certify border security technologies, deployed in conditions that closely match those in which they will be used. OURP’s emphasis on border technology and sustainable energy helps to ensure the Arizona stays economically competitive, Emmermann believes. “Border technology and sustainable energy are hot topics,” she says, “and they are the leading industries that U.S.-Mexico border states are championing. The UATechPark has been key in advancing these sectors and making Arizona an essential player in the industry.”

Bruce A. Wright is associate vice president for University Research Parks at the University of Arizona. + GET CONNECTED UA Office of Research Parks: www.ourparks.arizona.edu UA Global Engagement: www.arizona.edu/global-engagement Eternegy: www.eternegy.com Arizona-Mexico Commission: www.azmc.org

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TECHCONNECTMAG.COM THE RENEWABLE ENERGY ISSUE

players in their field, access to University of Arizona researchers, and connections to potential partners and customers. The program made a significant difference for Eternegy, an Israeli renewable energy company that has developed innovative solar-tracking technology. The company connected with UA Tech Park personnel on a recent business development trip to Israel. According to Amit Dror, founder and CEO, “The most important factors for companies entering the US market are relationships and partnerships that help you establish credibility. A young company can introduce an innovative product, but it would be practically impossible to sell it in the U.S. market without partners.” He credits the UA Tech Park team with helping him address that challenge by connecting with a potential customer as well as with solar industry experts at the University of Arizona. In addition, he believes, “Basing our business in the UA Tech Park’s Solar Zone is an invaluable way for us to build credibility and recognition in the U.S. solar market.”


Electrical engineering professors Trevor Thornton (left) and Andreas Spanias stand inside the Anechoic Chamber, a non-echoing space designed to prevent reflections of sound waves. The facility is used to conduct research for ASU’s Sensor, Signal and Information Processing center. Photo by Jessica Slater/ASU

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rizona State University’s Sensor, Signal and Information Processing research center (SenSIP) is extending its global reach, joining forces with leading research universities in Europe. The center’s research encompasses development of a broad array of digital signal processing, imaging and communications algorithms for sensor technologies, including those used in chemical sensors, cell phones, and radar and sonar systems. This year SenSIP has begun developing a multi-university collaboration with the University of Cyprus, Polytechnic Milano in Italy, ETH Zurich (the Swiss Federal Institute of Technology) and Boston University. The partnership is undertaking a farranging project based at the University of Cyprus KIOS Research Center for Intelligent Systems and Networks to accelerate technological advancements for use in sensor networks, “smart” power grids, and telecommunications systems. The endeavor is being supported by the European Union through funding from the Cyprus Research Promotion Foundation.

NEW UK CONNECTION Most recently Imperial College London, one of the leading science and engineering universities in Europe, has become a SenSIP partner. Imperial College is the home of the University Defence Research Centre (UDRC) funded by the United Kingdom’s Ministry of Defence to pursue advances in signal processing technology for use in national defense systems. A joint project involving Imperial College’s UDRC and ASU’s SenSIP has been granted support from the prestigious British Council UK Prime Minister Fund. It was one of fewer than 30 research projects selected for funding from among 230 recent proposals to the British Council. SenSIP is directed by Andreas Spanias, a professor in the School of Electrical, Computing and Energy Engineering, one of ASU’s Ira A. Fulton Schools of Engineering. He has led efforts to establish the new partnership, along with fellow ASU electrical engineering professor Trevor Thornton, director of ASU’s Center for Sold State Electronics Research. Spanias and Thornton recently joined Imperial College professors Eric Yeatman, Athanassios Manikas and Tony Konstantinides in London to present

information on their research project on nanopore sensors and give British Ministry of Defense officials an overview of SenSIP’s research. “The collaboration brings together two world-class signal-processing research centers,” says Manikas, chair of the communications technology research group in Imperial College’s Department of Electrical and Electronic Engineering. In addition, Manikas notes, SenSIP’s partnership with Imperial College’s UDRC will enable the ASU center to share resources with 12 United Kingdom universities and six multinational companies. “This provides a global forum enabling the signal-processing research community to share experiences and encourage cross-fertilization of ideas and strategies,” Manikas says.

BENEFITS FOR INDUSTRY “This collaboration will help accelerate the advance of sensor-array technology for the benefit of both countries,” says Cynthia Jaskie, president of BRE Systems, a Scottsdale-based information technology and computer consulting company and associate member-at-large of the SenSIP consortium. The wireless sensor array with integrated data fusion that SenSIP will develop with its


EXTENSIVE COLLABORATIONS More than a dozen ASU electrical and computer engineering faculty contribute to SenSIP’s work. Established in 2007 the center is part of an industry-university consortium that has attracted support from numerous companies in signal processing and communications technology industries and established collaborations with leading research institutions such as Johns Hopkins, Princeton and Purdue universities, among others. SenSIP’s industry partners include Intel, LG Electronics, Lockheed Martin, National Instruments, Raytheon Missile Systems, Sprint Communications, Brainstorm Technology, IQ Engines, and Acoustic Technologies. In 2010 SenSIP earned designation as a National Science Foundation Industry/ University Collaborative Research Center and became a partner with a similar consortium led by researchers at four Texas universities. The consortium, called Net-Centric, includes major industry

members such as Hewlett-Packard, Texas Instruments and Boeing. SenSIP also collaborates closely with ASU’s School of Arts, Media and Engineering on research in sensor systems and algorithms for video and audio scene analysis for dual-use applications in security systems and computer gaming. In addition, SenSIP research partnerships involve work on chemical sensors with ASU’s Biodesign Institute, and research on signal processing algorithms for threat detection for the Security and Defense Systems Initiative in the Ira A. Fulton Schools of Engineering.

Joe Kullman is senior media relations officer and Natalie Pierce is a student intern in the Communications office at ASU’s Ira A. Fulton Schools of Engineering.

+ GET CONNECTED SenSIP : http://enpub.fulton.asu.edu/sensip/

TECHCONNECTMAG.COM THE RENEWABLE ENERGY ISSUE

news partner “is an important technology with immediate military and security applications,” Jaskie says. The partnership’s research focus aligns with the goals of the U.S. Department of Defense Small Business Innovation Research Program, says Joseph Marvin, president of Prime Solutions Group, an Arizona aerospace industry consulting firm and SenSIP consortium member. “The work will add tremendous value to the emerging portfolio of aerospace and defense initiatives in Arizona targeted at a global community,” Marvin says. Sprint, the global voice, data and Internet services provider, will support the partnership with donation of a state-of-the-art 4G network for use in research on interfacing sensor networks with smart phone systems for time-critical applications. “This research is important to Sprint/ Nextel,” says Debbie Vogel, a Sprint account manager in Phoenix. “It will provide test data on the throughput and capacity of our network.”


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s Northern Arizona University moves ahead to double the size of its research enterprise by 2020, a new associate vice president of research considered a nanotechnology expert has joined the Office of the Vice President for Research In this capacity, Nanda Gudderra will provide leadership for the development, implementation and monitoring of a comprehensive campus-wide research program that integrates the effective delivery of compliance resources with adherence to federal, state and university policies and regulations regarding the conduct and administration of research. The Offices Of Regulatory Compliance, Grant and Contract Services, Human Subjects Protection/IRB, Animal Care/IACUC, and Biosafety will report directly to Gudderra. He also will serve as the institutional research integrity officer responsible for assessing allegations of research misconduct and overseeing inquiries and investigations. Gudderra was drawn to the small school setting that NAU offers. “It’s an up and coming university with a lot of promise in science research,” he says. “There’s lots of synergy and expertise I bring to NAU.” In carrying out these responsibilities, Gudderra will work closely with NAU senior administrative and academic leadership—especially Laura Huenneke , vice president for research—as well as campus legal

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There is lots of synergy and expertise I bring to NAU. -Nanda Gudderra, associate vice president of research counsel and, when appropriate, government agencies and outside counsel. “I expect to build programs in research, and create visibility and partnerships on campus,” he says. Gudderra received his undergraduate (arts and sciences, genetics and breeding, invertebrate microbiology) and master’s training (plant stress physiology) from University of Agricultural Sciences in India. He initially came to the United States, “because there was cutting edge research going on.” In India he had been working on plant hormones and there was a group in Missouri doing the same, too. After moving to the United States, he pursued additional master’s training in agriculture and plant biotechnology from Northwest Missouri State University. He then obtained his doctoral degree, specializing in medical entomology/ protein biochemistry and biotechnology, from North Carolina State University. At the National Institute of Allergy and

Infectious Diseases, Gudderra worked on the elucidation of structure-function activities of novel anticoagulants and host-parasite interactions. In transitioning to a compliance career in biodefense, he obtained formal training and national certification in biosafety, biocontainment and biosecurity at the National Institutes of Health Division of Occupational Health, where he was the first scientist to be trained formally both in basic research and applied biosafety. While there, Gudderra also conducted research on nanoparticle characterization and safety. He is a nationally-recognized expert in nanotechnology. Gudderra has extensive experience in BSL2/BSL3/BSL4 laboratory design, construction, program development and management and was instrumental in the development of the Regional Biocontainment Laboratory at George Mason University. Most recently, Gudderra worked as a peer review scientist for Department of Defense sponsored biomedical research programs in cancer and other metabolic diseases. He has presented a variety of topics at national and international scientific meetings and served on various professional societies, working groups, task forces, panels, and committees. + GET CONNECTED NAU Office of Research: www.research.nau.edu/vpr


Sequencing of tumors in adrenal gland provides new data WRITING BY :: BY STEVE YOZWIAK

or too many years, patients diagnosed with adrenocortical carcinoma (ACC) had few treatment options and, sadly, even fewer physicians with experience treating the disease, a cancer that forms in the outer layer of tissue of the adrenal gland. ACC is rare: less than two individuals in 1 million are diagnosed. When the numbers are that low, few federal or philanthropic dollars f low toward studying the causes or finding a cure. That means fewer advances in diagnoses or therapeutic treatments. At the Translational Genomics Research Institute (TGen), Drs. Kimberly Bussey and Michael Demeure hope to change that. The latest advances at TGen began the day Demeure met Gary Pasquinelli, a Yuma, Arizona, businessman and father of Kirsten Sandstrom, a young woman recently diagnosed with ACC. Demeure had already worked closely with ACC survivor, Troy Richards, who was instrumental in establishing TGen’s ACC program. Richards has actively raised dollars for ACC research through the Advancing Treatment for Adrenal Cancer (ATAC) fund. This program helped bring ACC research out of the dark ages and into the 21st century.

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Shortly after Kirsten lost her battle with ACC, Pasquinelli donated $1.5 million and joined forces with ATAC’s founder to further TGen’s ACC research program. Pasquinelli’s donation is allowing TGen scientists and clinicians to conduct the first whole-genome sequencing ACC patients. This offers new insight into the possible causes of this extremely rare and aggressive form of cancer by identifying all 3 billion chemical DNA bases of ACC tumors. Researchers compare the cancer DNA to a patient’s normal DNA to discover what’s different; what mutations might cause the disease.

FIRST STEPS Bussey and Demeure lead a team of scientists and clinicians who, for the first time, have already completed the first whole genome sequencing of two ACC tumors. ACC grows rapidly and yet often goes undetected inside the abdominal cavity until its advanced stages. The adrenal glands produce hormones needed to deal with stress, fight infection and maintain normal body functions, such as blood sugar and blood pressure. The letter-by-letter analysis provided by whole genome sequencing will allow

researchers to identify genetic differences, and then leverage that information toward targeted and improved therapies. “The rarity of ACC has limited therapeutic development for decades,” said Bussey, co-director of TGen’s ACC Research Program. “Our hope is that the information we obtain from whole-genome sequencing will enable us to pinpoint the abnormalities of this tumor, see what it tells us about its biology, and in turn, use that information against the disease in a clinical setting.” Currently, the primary drug used for ACC patients is mitotane, a chemical relative of DDT, which the U.S. banned as an insecticide in 1972. Mitotane chemotherapy, while effective on about 1 in 4 tumors, also causes DNA damage. “Whole-genome sequencing is the only way you can begin to understand how the tumor is repairing its DNA,” Bussey said. Today, with two of six planned sequences complete and a third underway, Demeure, an endocrine surgeon at Scottsdale Healthcare and Director of TGen’s Rare Cancer Program, views this accomplishment as a major step toward understanding ACC. “It’s a great start,” said Demeure. “The information we glean from this effort will, without doubt, prove valuable.” Steve Yozwiak is senior science writer at the Translational Genomics Research Institute.

+ GET CONNECTED TGen: www.tgen.org

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New Hope


Global Game Plan

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WRITING BY :: GOV. JAN BREWER

hen it comes to the economy, this is no time for Arizona to think small. Now more than ever, our focus must be global. As state leaders and I concentrate on strengthening the job market and growing the local economy, we are focused on opportunities in the global marketplace where more Arizona goods can be exported and we can attract significant foreign investment. In September, at the invitation of the Chinese Council for the Promotion of International Trade (CCPIT), I led a business delegation of more than 20 Arizonans to China. This esteemed group included members of the Arizona

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Technology Council, Arizona Chamber of Commerce and Industry, and Arizona Commerce Authority. The trade mission spanned the country, taking us to the major business epicenters of Shanghai, Chengdu and Beijing. The purpose of this visit was straightforward: to strengthen existing relationships and build new ones with Chinese government and corporate leaders. Arizona has everything to gain. At present, China is Arizona’s third-largest trading partner. Exports from some of the more than 5,400 Arizona businesses that trade with China increased by 26 percent in 2010 alone, totaling more than $1 billion. Significant additional growth is possible, as

illustrated by the eye-popping $8 trillion in goods from other nations that China will import in the coming year alone. My delegation and I set out on a mission to strengthen Arizona’s trade relations with China, secure export opportunities and promote business investment in our state. I am encouraged by the positive discussions we had—particularly with solar and high-tech companies—and I see definite opportunity for the expansion of these businesses into our state. This trip has helped solidify Arizona’s position as a global leader in solar energy, and I’m optimistic the result will be the addition of quality, high-paying jobs for the residents of our state. This trade mission helped open important doors that will lead to future investment in Arizona. Some of these discussions with Chinese firms are ongoing and can’t yet be disclosed, but I’m confident that good news is on the horizon. One such example is Clear Energy, a China-based manufacturer of portable electric generation systems. The company just recently announced the expansion of its Arizona operations in order to launch its new Genesis 1000 power generation system. The move is expected to create hundreds of new jobs, boost Arizona’s global exports and result in $10 million worth of additional investment in the local economy. The trade mission enabled the Arizona delegation to meet with multiple critical leaders in China’s government and industry, which customarily is a key first step in Chinese business relations. Representatives from existing Arizona firms like Intel, Suntech and Honeywell also made the trip to further their company’s ties both here and abroad. When I first proposed Arizona’s Economic Competitiveness Package in early 2011, I didn’t just mean competitiveness regionally or nationally. Arizona must compete with the world. With our low corporate tax rate and lean regulations, plus the aggressive efforts of the Arizona Commerce Authority, I know that Arizona is up to the task. + GET CONNECTED www.azgovernor.gov


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magine getting hired to do a project, putting hours into it and getting paid only when the client gets results? Can anything be riskier than that? Welcome to the world of pay per performance search engine optimization, a new model for Internet marketing. In layman’s terms, it means the marketing company creates a campaign for a client and only gets paid when there are results. As you can imagine, this isn’t for the faint of heart. At Tempo Creative, they pursued this new way of doing business as a response to what they were hearing from clients. “We’ve had dozens of clients complain about SEO results and unethical practices from their previous vendors,” says Josh Dolin, founder of the firm. With that in mind, Tempo Creative began beta testing the service with select clients since the first quarter of the year and recently began offering it to a wider audience. “We’ve always been white hat and have had tremendous success without ever risking our reputation,” Dolin says. “Because we’re 100 percent confident of our capabilities, we’re willing to essentially

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do all the upfront legwork to prove we’ll deliver the results—all on our dime.” There are a dozen employees on Tempo Creative’s SEO team and as it grows, Dolin says, “We’ll be able to offer the service to potentially hundreds of clients. So far the results have been absolutely spectacular and we believe this is going to be a major part of Tempo’s 2012 business.” Actually, there will be more changes as the new year approaches, because Tempo Creative recently merged with Miss Details Design. Many Tempo Creative clients were searching for the branding and design needs that Miss Details Design has provided while many Miss Details Design clients were searching for the digital offerings that Tempo Creative provides. “The decision ultimately resulted from client demand,” Dolin says. “Both companies offer what the other lacks a specialty in.”

SHARED INTEREST The decision to merge was also influenced by the firms’ shared verticals, such as technology. “The tech industry has been very important for both companies and

we will continue to focus on developing more relationships in the industry,” Dolin says. “Because Tempo is technically a tech company, it’s a natural fit to work with likeminded tech firms.” Both sides credit that interest leading to the merger. The Arizona Technology Council played a role in the growth of the relationship, because as teams from both firms participated in Council events, their relationships grew to the point they decided to merge. In the merger, Dolin will also carry the title of principal, focusing on oversight of company growth and “the big picture.” Tanya Gagnon of Miss Details Design will also be a principal in addition to serving as creative director, focusing company operations as well as creative direction. With a decade of service and strong brand equity, the company will keep operate under the name Tempo Creative. The main office for the 40 employees will be at the headquarters in the Scottsdale Air Park. The results? The combined firm will provide complete brand strategy for clients then enable them to take their brands to the next level by providing complete digital solutions, branded print collateral and marketing materials.

+ GET CONNECTED Tempo Creative: www.tempocreative.com



we provide a faculty of industry leaders who work in the fields they teach. for over 30 years, we’ve been dedicated to helping our students succeed in America’s most in-demand careers. for example, we provide students with instructors who are professionals working in the fields in which they teach. it’s an education designed for today from a university that holds the same level of institutional accreditation as America’s top schools. © 2011 University of Phoenix, Inc. All rights reserved.

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