Guadalajara, home to 1.5 million people and the largest city in the state of Jalisco, is increasingly gaining a reputation as "Mexico's Silicon Valley," local and international business publications said. 

The historic city "has a record in tech and is home to big names such as IBM, Oracle, Intel and Solectron, attracted by its young, qualified workforce," the Financial Times wrote.

Beyond the employment opportunities, tech workers and entrepreneurs are attracted to "La Perla de Occidente" because of its educational options -- the respected Tecnológico de Monterrey maintains a campus there -- and because of the traditional vibe and culture of the centuries-old locale. Guadalajara, founded in 1542, is known as the birthplace of both mariachis and tequila.

Belsasar Lepe, the co-founder and vice president of the video-streaming startup Ooyala, told Forbes México that the Jalisco City is where his company "can find talent."

"In Guadalajara, both universities and businesses are focused on moving technology forward," Lepe explained. In California's original Silicon Valley, "the growth was very organic, and it took a long time to develop; but here, the backing has allowed that development to be much faster," he added.

Ooyala counts Bloomberg, ESPN, Fox Sports and Rolling Stone among its clients and operates offices on four continents; its headquarters is based in Mountain View, California. But the firm's Guadalajara location has shown some extraordinary growth: In less than three years, the office has expanded to more than six times its original size, Forbes México detailed.

"What makes Guadalajara really stand out are its entrepreneur networks," the Financial Times explained. "Meetings hosted by groups such as iTuesdays and Hackers & Founders regularly bring innovative ideas into contact with potential investors."

But that does not mean that newcomers are not faced with a number of challenges, as well, the business publication warned: Finding seed capital can be difficult in the Jalisco hotspot, and its conservative vibe make family ties crucial and companies "highly risk averse," the paper added.

Lepe, though, feels highly optimistic about the city's future: "We have to ... show that we can offer a different lifestyle," the entrepreneur told Forbes México, "and if we give that example ... we will be able to create a Silicon Valley in Guadalajara."