Reaching break-even within a year, a growth forecast of around 650 percent, not a single external investor, and all of this in the midst of the highly competitive Microsoft ecosystem. On the Capricorn Connect podcast, Michael Altenberger, CEO of the Swiss tech startup Zation, explains how a decades-long dream of self-employment turned into a global boutique company, and why a partnership with the IT conglomerate Arrow, of all companies, is making all the difference.
Michael Altenberger’s path into the technology industry was not a straight one. His professional career began in international trade in raw materials and export goods, where he earned a good living even at a young age. However, his passion for information technology was evident from the very beginning, until he eventually admitted to himself that money alone was not enough. He then made the switch to IT consulting initially still heavily hardware-driven, but later increasingly focused on the software and consulting business, which continues to inspire him to this day. What fascinates him about the industry is its unique blend of creativity and interconnectedness: abstract, interconnected thinking that gives rise to something new.
Twenty Years Until the Leap
Altenberger had wanted to start his own company ever since his youth, when he and a friend would build and sell personal computers. It was a youthful project with no entrepreneurial ambitions, but it had a profound impact on him. Over the next two decades, the idea of self-employment became increasingly concrete, while at the same time his responsibilities grew: a secure position within an organization, a family, and children. As he himself says, it was above all fears of taking risks and of possible failure that delayed the move for years. A year and a half ago, he finally took the plunge, driven by pure passion and the desire for entrepreneurial freedom, and founded Zation.
David vs. Goliath, with Arrow at his side
As a small player with no strong reputation, no capital reserves, and no established track record, Zation faced the classic challenge faced by young companies in the enterprise sector. Altenberger found the solution in a strategic partnership with Arrow, a global IT conglomerate and major Microsoft distributor. Arrow brings the reputation, financial stability, and credit lines that allow Zation, as a small boutique firm, to compete on a global stage. Altenberger himself describes this model as “a little David who can defeat Goliath.” The partnership is explicitly designed as a win-win: Zation brings proximity to major clients and operational depth, while Arrow provides global infrastructure and trust. Particularly in transactional business, which requires large volumes, this partnership has been the reason why Zation has been able to grow entirely without external investors to date, thereby retaining maximum entrepreneurial freedom.
Focus on large customers with between 1,000 and 30,000 users
Zation’s customer segment is clearly defined yet has a broad international reach: organizations with between 1,000 and 30,000 users represent the “sweet spot,” where Microsoft licensing costs and contracts reach a volume that makes systematic optimization worthwhile. Its core competency lies in optimizing Microsoft spending under the three pillars of Cost Optimization, Unlock Value, and Ensure Sustainability. Although rooted in Switzerland, with clients in India, the U.S., the Czech Republic, and numerous other markets, Zation explicitly sees itself as a global, platform-based service provider without national boundaries.
Artificial intelligence as a tool, not as a black box, within the platform
According to Altenberger, artificial intelligence has a twofold impact on the business model: On the one hand, technologies such as Azure AI Foundry and Copilot continue to drive up customers’ IT and software spending, which further increases the need for optimization and thus reinforces Zation’s relevance. Increasingly, it is CFOs who are taking the initiative to reach out in order to get their AI-related cost structures under control. On the other hand, Zation itself makes extensive use of AI as a tool to build its own platform and continue developing it as a startup with a greenfield approach, free from the burdens of legacy systems. Noteworthy here is a deliberate distinction: AI helps build the platform but is not part of the platform itself. Handling sensitive customer data requires a clear separation of powers, a risk awareness that is becoming increasingly important in a market facing growing regulatory pressure.
Strategy: Focus Over Size
Looking ahead, Altenberger is consistently prioritizing focus over growth for growth’s sake. In a market environment with significantly larger competitors, he sees Zation’s strength precisely in concentrating on its own core competencies rather than expanding broadly. There is explicitly no ambition to become the largest company in the industry, but there is considerable potential for scaling up, stemming from the global volume of Microsoft contracts. Switzerland alone, according to Altenberger, is already “too big” a framework for Zation; the journey is consequently continuing on an international scale.
Fear as a Compass
Looking back, Altenberger describes his own hesitation in recent years with self-criticism: Most of the fears that had kept him from taking the leap into self-employment never actually materialized, he says in hindsight. His conclusion is remarkably unemotional: Fear is no reason to give up, but often an indication that you’re on the right path. The key is to distinguish between fear of the journey itself and fear of failing to meet one’s own expectations.
Empathy Instead of Superintelligence
Toward the end of the conversation, Altenberger also reveals a personal side: When asked what superpower he would choose if he could, he opts not for technological omnipotence, but for more empathy and love in the world. Given his daily work with artificial intelligence and automation, this answer really catches one’s attention. When asked about a person whose life story he’d be particularly interested in, he names Anthropic co-founder Dario Amodei, whose questions about the opportunities and risks of AI development have deeply engaged him. He sums up his personal motto in a few simple words: “No risk, no fun”, a philosophy he lives by not only in business but also on his mountain bike, where he prefers downhill and enduro trails.
Zation’s story exemplifies how Swiss boutique companies can hold their own in the shadow of global technology conglomerates: not through size, but through focus, smart partnerships, and a deliberate approach to technology which itself becomes both the biggest cost driver and the most important tool.
Binci Heeb
See, hear, and read more: The future is not a matter of technology, but of people
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