Software runs my life

Author: Scott Savage Page 40 of 68

Pipe goes International

I have mentioned Pipe Networks before, more specifically their “Project Runway” surviving a near death credit crunch experience. There have been two interesting developments since that time.

Guam Beach Cable Hole

Guam Beach Cable Hole

The first is that Pipe have put up a blog tracking the progress of the cable installation. You can view it at pipeinternational.com. As with their DC3 data centre blog they have uploaded a ton of photos and commentary on a very regular basis. I am sure customers, creditors and other participants in the Australian networking industry appreciate the transparency of information delivered through these blogs. It is fascinating to see that, in the end, the data is flowing through a rather unglamorous combination of copper, concrete, seawater and sand. It is also great to see a company recognise the power of blogs as PR delivery mechanisms. I am sure they raise the public profile of the company significantly.

Also on the PR front the Pipe Networks CEO, Bevan Slattery, participated in an interview with Business Spectator’s Isabelle Oderberg. This interesting interview starts off with a glimpse at how close the project came to collapsing, and concludes with some comments regarding the NBN process and goals. I do agree that the Government is tackling the problem from the wrong end, they should be starting at the core and moving outwards. I guess it is easier to present end solutions to the common voter, you can’t deliver bit size statistics like 50% more bandwidth will mean 50% wholesale price cuts which will mean 50% consumer broadband saving.

Maybe the same is also true for the NBN tenderers? If the tender was only for backhaul, could they be guaranteed enough customers to viably support duplicating the infrastructure? Do they need retail customers and the bundling of products to put together a firm business case and profit margin? Again the big question is, if this rollout is viable then why has no-one done it already? At the end of the day the problem always lies with Telstra, they simply own everything that matters. Scarily, this monopoly is now extending into the wireless spectrum. Backhaul competition is a great first stage, and perhaps with the current financial state the tender process should be limited to that for now. But there should always be a second stage planned, one that makes the whole end to end process competitive. Until that happens we will be facing different versions of the current monopoly.

Personally I believe that Telstra should be seperated and that the core infrastructure (backhaul, exchange buildings and ducts) should never have left the public’s hands. There is enough infrastructure around, it is just being crippled to maximise profit and prevent competition. Now we are either going to have to buy them back or build around it, either way this is not an efficient or cheap process.

Live Mesh now Windows 7 Compatible

Live Mesh Beta LogoLive Mesh is getting a getting the Service Update that was promised before the holiday release blackout period today. The key bug fix that everyone is hanging out for is that it will now not kick Windows 7 into it’s non-Aero interface. This will soon include me, because I have a freshly burned copy of Windows 7 sitting on my desk ready to be installed tonight. I guess I will be completing the Windows Connect install survey tomorrow, fingers crossed they give out valid licence keys at the end of the beta program like they did for Vista.

One interesting point I noted was that the Live Mesh Blog no longer appears to be labelled “Beta” or “Tech Preview”. The version update appears to only be a minor one (0.9.3424.5 to 0.9.3424.14), however it looks as though some subtle steps towards a debut are occurring. Perhaps one of these will be matching Skydrive‘s 25 GB storage limit? I live in hope.

Outsourcing cost effectiveness

Satyam Headquarters

The Satyam outsourcing fraud was a story that I found interesting this week. I think outsourcing can be cost effective from a companies perspective, but it appears that it isn’t always cost effective from an outsourcers perspective. From the ZDNet article is was revealed that:

And during the September quarter, the company also reported inflated revenue of 27 billion rupees, vs. actual revenue generation of 21.1 billion rupees. That resulted in artificial operating margins of 24 per cent of revenue, compared with its actual 3 percent margin.

Three percent margins are nothing to be proud of, even in a competitive market. I wonder if the 12%+ annual wage growth is finally catching up to the outsourcers, or whether it is simply an overly competitive market and the weaker players are being squeezed out? I would guess that the market is being squeezed from all directions. I wonder if the global economic problems will help or harm outsourcers. I guess companies will weigh up the risks versus cost benefits as always, I just wonder whether the balance has tipped in the favour of the conservatives wanting to keep their core advantages in-house. I guess frauds like the Satyam one don’t boost confidence much either.

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