Friday, 29 February 2008

Farewell 77


Last photo taken of friends meeting last summer outside the 77

I first visited the '77' Wine Bar in West Hampstead in 1988. It was difficult to miss. I had just bought the flat at '83' next door. We were to be neighbours until I left for New Zealand in 2003.

Getting to know your neighbours well is admirable and I lost few opportunities to do so with the inhabitants of No 77. I celebrated many birthdays, anniversaries, New Year celebrations there. In 1990, I met a girl called Jacqui. 18 years on and we are a married item. It was that type of neighbourhood bar.

So it was with much sorrow that I learnt today, last night was to be the '77' finale. It has closed to become, wait for it, an estate agent's office!

When I travel to London, one of the bright spots has always been the thought of catching up with the 77 regulars who still go there. Something that has been important in my life will be missing when I visit the UK in two weeks time.

London Ahoy


Heathrow - Next Stop

Yesterday's NZTE Beachhead Conference in Auckland allowed me to catch-up with any number of contacts in NZTE, UKT&I, and beyond. As a networking event, it surpassed any other I have attended in New Zealand. And as per my posting yesterday, the atmosphere was optimistic and uplifting. In terms of global engagement and export achievement, there are some great NZ success stories to be told.

Much of my talk with others was focused on Pingar's immediate plans in the UK. It was a discussion that continued when I met Julien at JML Communications later in the afternoon.

My next trip to London is only two weeks away. The UK Technology Innovation and Growth Forum is set for March 18th - 19th and thereafter a raft of meetings are scheduled until my departure mid-April. I still have some GBP left on my Oyster Card and cash remains from the last trip. Sitting here this morning, replying to a slew of emails that arrived overnight from London, the UK and my upcoming visit does not seem that far away.

Wednesday, 27 February 2008

Beachhead Conference - Auckland


I am traveling to Auckland first thing tomorrow to attend the NZTE Beachhead Conference.

Erica Crawford from Kim Crawford Wines and Mark Taylor from Metal forming Technologies will join Beachheads Chairs Bridget Liddell (Americas) and Eric Tracey (United Kingdom), Mahmoud Haidar (Middle East), Chuan Seng Lee (South East Asia) and Pradip Madhavji (India) to debate the individual challenges for New Zealand companies in their respective regions.

Greg Cross, Chair of the New Zealand Beachheads advisory board will act as MC for the proceedings and Economic Development Minister Pete Hodgson is expected to close the debate.

The panels will discuss how New Zealand companies have successfully increased their market shares offshore, are perceived by global competitors as key players, are going head to head with their competition on their own turf, and how they are increasingly taking over their competitors’ market share.

Given Pingar's own imminent UK market entry plans, the timing of the conference could not be better. I will catch up with members of the UK Beachhead Advisory Board who we presented to back in January in London. I blogged about that presentation here.

These events, by their nature, are usually uplifting and optimistic. It will therefore be interesting to see what impact current exchange rates have on the attendees perception of offshore expansion and engagement. Yesterday, the NZ$ climbed to its highest level in over 20 years against the US$. The NZ$ / GBP cross rate is now touching 41c. This is hurting, but does open up the possibility of more offshoring as companies seek to cut costs and get closer to their overseas markets. It is an interesting take and I expect, an interesting day ahead.

Tuesday, 26 February 2008

Pingar - The Product


I have cut and paste the Pingar introduction to next month's UK Technology, Innovation & Growth Forum brochure. I think it sums up a lot in a very few words.

The Internet! Every bit of information you could want and it’s all there for free!

Well, maybe not: the most valuable research data isn’t on websites …. it’s locked away in books, magazines, research reports and journals; in filing cabinets and hard drives in universities and companies.

And if it is online the really good stuff (like analyst reports, business data and so on) usually requires a subscription to view.

At Pingar, we believe passionately that valuable research content should be freely and widely available.

So we aggregate this data, providing customised reports to users and sharing advertising revenue with content owners.

Pingar’s technology platform:
• aggregates data from a wide range of information sources
• provides powerful search tools
• provides rights management and reporting for rights holders
• automatically generates custom reports, collating data from multiple sources and presenting it in one, downloadable report
• provides a user profiling and advertising platform - giving content owners commercial incentives to make their information available at no cost to the end user

Pingar has already made great progress – its beta portal called Smart Analytics is embedded into Microsoft Office 2007 and IE 7. Pingar works closely with Microsoft, along with strategic partners FAST and Global Graphics, to develop custom solutions for corporate clients.

And that just about sums Pingar up. A revolutionary new technology platform that will change the way that Internet users will view Search and and Online Research.

Pingar - The new CEO


The Institute of Directors - London

Pingar has appointed Timothy Burgess, as Chief Executive Officer.

Timothy is an entrepreneur with significant international experience. He has founded a number of start-up operations and has built new divisions for major corporations. Based for the last two years in Berlin, he has worked extensively across Europe. He previously lived and worked throughout Asia, managing businesses in Japan, China, Australia and SE Asia. His work focuses at the intersection of technology, media and business operations and includes several successful exits.

Though Timothy will be based in Pingar's new offices in London, he has plenty of experience of life and business in the Asia Pacific. And that's not surprising really given his Australian roots.

Timothy was Asia-Pacific CEO of the search engine Excite. He oversaw the portal’s most successful international launch, measured in terms of reach, page views and registered users. The focused marketing campaigns developed to promote Excite saw it reach nearly 70% of the reach of its deeply entrenched competitor, Yahoo, within weeks of launch. Ad sales were consistently at, or close to, 100% of inventory.

In the middle nineties, Timothy gained Omnicom investment for a new, digitally-focused agency in Asia. Called BBDO/ZIVO, it rapidly became one of the leading Internet Integrators in the Asian market, with offices in seven Asian countries and a headcount of engineers and consultants numbering 350. Previously Timothy had founded a nation-wide Australian operation for leading advertising agency Leo Burnett, focused on Digital Media.

So Timothy (and I will hereinafter refer in my blogs to our new CEO as 'Tim') brings a wealth of global experience across a number of Pingar's key target sectors. Understand that, and a number of previous postings in this blog might now become more clear.

Pingar – Coming Out!


It's Mardi Gras and time to party...

For almost nine months now, I have regularly blogged about Pingar.

For reasons of confidentiality, I have always avoided telling the whole story. There have been solid reasons for this. Today though, all that changes.

The publication of a public profile of Pingar by Library House has opened the cupboard doors. Everyone, including you, can now look inside.

A Library House company profile provides a dynamic, essential view of a fast growth, venture-backed private company. The profile contains information that can assist Library House clients to evaluate competitors, opportunities, partnerships and customers.

So after nine months of hints, it is finally time for Pingar to come out......

NZ - China FTA


Reduction in NZ agricultural export tariffs on the cards

News on Stuff this morning that Helen Clark is preparing to travel to China in April to sign the long awaited NZ - China Free Trade Agreement (FTA) is welcome news.

The Government has been pursuing a trade deal with China since 2004 but has refused to give progress reports because of sensitivity on both sides about the nature and scale of any concessions they might give. It is China's first free trade agreement with any developed nation.

The two main plays in this, I guess, are agriculture (good) and manufacturing (not so good). There might be one effective trade off against the other (pardon the pun). However, as previous posts of mine will point out, outsourcing manufacturing to be closer to your global markets is not always in my view, 'not so good'.

How will a China FTA benefit ICT and emerging technologies such as Pingar? I need to see the detail of the Agreement. But from a relatively agnostic perspective, I suspect that the very existence of the Agreement will provide NZ companies with the commercial 'high ground' when it comes to market entry. That is not to diminish the challenges that any market entry into China brings. Given though the strong influence that Government still has on Chinese business, this Agreement is likely to open doors that might otherwise be difficult to prize open.

On my last trip to the UK, I stopped over in Hong Kong to discuss Pingar's market entry into the HK / China market with David Wishart, NZ Trade Commissioner to Hong Kong. David has since left - no coincidence I hope. I will be visiting NZTE's offices in the region again to further pursue that discussion. I, for one, think that this Agreement can only help NZ businesses bold enough to take the necessary steps to engage with this market.

Monday, 25 February 2008

Windows Live SkyDrive


Password-protected online file storage.

Traveling a lot makes me very conscious of what I have to carry. So an introduction to Windows Live SkyDrive over the weekend has meant a bit of research this morning. It looks like you get:

* 5 GB of free online storage, available from any computer with Internet access.
* You can create personal, shared, and public folders -- you decide who has access to each folder.
* Windows Live SkyDrive works on any Windows or Macintosh computer with Firefox 1.5 or higher, or Internet Explorer 6 or higher.

This sounds like it may be a useful alternative to Flash drives and the like. Particularly if others can access and share certain folders.

Some more research needed.

Sunday, 24 February 2008

Sunday Sport


The Seasiders - Barmy Army, barmy army........

Sport on Saturday is all about expectation. Sport on Sunday is all about reflection. So how do I feel today?

Blackpool FC did the business. This is the first UK sports result I check out everytime I logon to the Internet on a Sunday morning. Yesterday, Blackpool won 5 - 3 at home to Charlton. I actually attended the Charlton away game just before Xmas when I was in London. It was the Seasiders worst result of the season. Eight weeks on and home advantage can make such a difference.

England took the honours in the rugby in the Six Nations game against France in Paris. What is 13-24 in French? Nous were stuffed par les Anglais? Not linguistically correct maybe, but you get the message. And it was a similar message in St. Helens. Fylde RUFC came away with a 18-26 victory over West Park St. Helens. More Pork, more pork.

And then there is Billy Bowden. Proving once again, what a great Kiwi cricket umpire he is. Howzat Daniel? Er, je ne rien pas. Les anglais lose. And that is another weekend's sport in New Zealand. At least for another seven days.

Saturday, 23 February 2008

Saturday Sport


Sport is a fairly important part of my Saturday schedule. Apart from the odd round of golf or fishing trip though, today it is mainly of the 'couch-potato' variety.

When I was living in the UK, soccer and rugby took up most of my time. Watching Blackpool Football Club and Fylde Rugby Club were my favourite two 'live match' experiences. And then there was always Jeff Spelling on Sky Sports if I could not get to a live game.

In New Zealand, the focus is slightly different. Rugby here dominates the domestic sports schedule, although cricket does briefly show its face in the summer. Being based in Tauranga, my local rugby side is the Bay of Plenty Steamers and I do enjoy my trips to their home games at Baypark. Other than that, on TV, it is wall to wall Super 14, Tri-Nations and lots of repeats.

In New Zealand, virtual rugby is becoming a hugely popular past-time. I was introduced and then challenged to it by my young nephew Henry. Hosted by Telecom, Telecom Virtual Rugby currently has 140,000 registered players. Sad that we collectively are, we predict each week, the outcome of that week's Super 14 games. I expect that by tonight, my eight year old nephew will be well ahead of me points wise, because of my own rather erratic and basically stuffed up predictions.

And that's Saturday sport in New Zealand.

Friday, 22 February 2008

Tauranga Leadership


Time to doff the cap and acknowledge two great Tauranga business icons.

Jon Mayson, the former Port of Tauranga Chief Executive, is stepping down as President of Export New Zealand. He is taking on a new role as Chairman of New Zealand Trade & Industry.

Rob Jeffrey, Managing Director of Jeffco International, another Tauranga based business is taking over from Jon as President of Export New Zealand.

It says a lot about Tauranga that two of the most senior positions in New Zealand's trade organisations are held by these successful Western Bay of Plenty businessmen. The cap is suitably doffed in recognition of their joint achievements.

The Night Shift


For the past four nights, I have been working the Night Shift. Even for me, this is a little heavy. Particularly since the normal 9 - 5 routine has been maintained.

With so much focus now on Pingar's UK market entry, every call I make seems to have a +44 prefix. Being Friday, I was looking forward to a good sleep tonight. My email had different ideas. It delivered an email at 4.20am this morning with a request for a 1.00am Saturday call. It's an important call. It has a +44 prefix. I cannot say 'no'. Maybe tomorrow night then.

Wednesday, 20 February 2008

Crossing the Chasm


In his book 'Crossing the Chasm', Geoffrey Moore makes the case that high-tech products require marketing strategies that differ from those in other industries. His chasm theory describes how high-tech products initially sell well, mainly to a technically literate customer base, but then hit a lull as marketing professionals try to cross the chasm to mainstream buyers. This pattern, says Moore, is unique to the high-tech industry.

It is a 'must read' for NZ ICT businesses wanting to engage with the global market.

I write about it now, because I have just extended my London trip next month for the UK Technology, Innovation and Growth Forum by a further 10 days. This has nothing to do with the UK weather.

I am going to be blunt. Being successful in the NZ market means little in London. That is down partly to business culture, but mainly to scale. The chasm is huge and so is the depth of competition, the need for resourcing and the availability of networks. Even though I only left the UK for NZ four years ago, I really am beginning to understand that chasm myself. So the need to extend my trip is real to assist consolidate our UK market entry strategy.

Developments in the past week will assist this process. More about this when I can.

BA5 - TrustPower


Tonight is the first Business After 5 of 2008. Organised by Tauranga Chamber of Commerce, it is being hosted by TrustPower.

TrustPower are introducing their new telco subsidiary, Kinect. They plan to outline the development of the business over the past 12 months, paint a picture of what is coming in the months ahead and seek to find out more about what local businesses do and look for synergy's or opportunities. So far so good.

I have one question. It is all about fibre. If Kinect's delivery is the usual combination of copper and a simple 'power and phone' billing exercise, then there is not a lot of value-add to the present market. If Kinect plans to develop or work towards developing a fibre optic network in the Bay however, then I for one, am all ears.

Monday, 18 February 2008

PriorityOne CEO Announced


PriorityOne, the Western Bay of Plenty's Economic Development Agency today announced their new CEO. He is Andrew Coker, formerly P1's Business Development Manager. Congratulations Andrew!

The WH Consultancy developed the Stay in the Bay portal with Priority One two years ago, and this continues to attract regular Business 2 Business traffic in the Bay. Working closely with P1 is a good way to stay in touch with econmic development in the region.

Today's announcement is a happy coincidence. I have a meeting planned with Andrew tomorrow to discuss regional economic development, focusing particularly on the engagement between Western Bay business and University input. Even a greater coincidence then that following that meeting, I travel to Waikatolink at the Waikato Innovation Park in Hamilton, to do as I preach.

Strong coffee will be the order of the day. Tonight's line up of calls overseas mean no early bed for me. White then, but no sugar please.

Sunday, 17 February 2008

FASTForward 08


I had expected to depart Auckland today for FASTForward 08. It is being held in Orlando, Florida over the next three days.

Pingar's nomination to present at the UK Technology, Innovation and Growth Forum in London next month has changed all that. John Beer, my UK Pingar partner, is traveling to Florida instead.

It is a fact that few truly international technology conferences are held in New Zealand. It does mean that NZ ICT businesses need to go that 'extra mile' when compared to competitors in countries such as the UK or the US. Global engagement demands an NZ presence at such conferences. This is one significant aspect Pingar's planned entry and expansion into the UK market will address.

Friday, 15 February 2008

Tracking the NZX


On cue, the NZX reported its results moments after I published this post! It reported a 34 per cent increase in annual net profit after tax to $8.7 million.

Key contributions came from the data and listings areas, with a particularly strong showing by secondary capital raisings. The NZX market information business generated 72 per cent more revenue to $10.54m with strong demand for NZX data. Growth also came from its acquired news and information businesses - Company Research Centre (formerly IRG Data), NZX Agrifax, FundSource and NZX NewsRoom.


Every day, I check out the NZX website.

The NZX's three securities markets form a diverse offering for companies wishing to raise capital and investors looking for secure and liquid & investment products. These markets feature many of the nation's most established and proven companies and offer new opportunites for emerging new companies and listed issuers.

I pay particular attention to the NZAX, one of the three securities markets the NZX offers, which is tailor-made for fast-growing, developing companies. In 2007, the NZX set up NZX SciTec. This is sector based listing of companies in the technology space. It is interesting for me to see how they are performing in this financial market.

One issue I have not got my head around yet is how the market sets the prices? A single trade of say NZ$5,000 can move a share price several ticks, adding or knocking off, an overall company valuation of many multiples of that. Perhaps it is the relatively small number of trades that take place and the value of them. I do not see that massive price fluctuation when I look at similar trades on markets such as AIM or the NASDAQ.

This volatility does not make the NZX a particularly attractive proposition and I do not know if it is just a temporary thing. When I left for the UK in December, the capitalisation of the NZX market was just over $NZ72 billion. Today, it is just NZ$61.5 billion. Globally, all markets have fallen in this period, so the NZX is not alone in this. However it's relative size, or lack of, compared to competing global exchanges must now be troubling the NZX, its constituent companies and the market makers who work in it.

NZ Limited Liability Partnerships


An excellent article in this morning's New Zealand Herald about the new limited partnership regime, due to come into force on April 1st.

Limited partnerships are the most popular structural vehicles for private equity and venture capital investment. Already available in the US, the UK, Australia and Canada, the new regime will enable New Zealand to compete for international capital on a more equal footing.

Internationally, New Zealand is already a great place to do business. The 2008 Heritage Foundation / Wall Street Journal Index of Economic Freedom ranks New Zealand's economy as the world's sixth most free. Throw in the fact that New Zealand does not impose capital gains tax on the sale of shares, the new limited liability regime could improve NZ's global ranking even further.

The architects of the new regime are to be congratulated. As one who understands the challenge of securing offshore capital for NZ companies, the opportunity to offer a limited partnership to VCs and private equity players can only help. Roll on April 1st.

Thursday, 14 February 2008

NZ Fush & Chips - Valentine Style


The perfect Valentine Venue

Bobby's Fish Market in Tauranga is an institution befitting Valentine's Day.

Fresh fish caught from their own trawler is served in light batter. The chips come in scoops. And the whole enchalada comes wrapped in local newspaper.

Wash down with a bottle of local Chardonnay on the Quayside tables and catch the sun setting over the Kaimais. Total bill about $NZ 15 for two. Experience? Priceless.

Burnt Chips


Blue Chip Stadium, Baypark, Tauranga

(Postscript - Following the publication of this post, the Bay of Plenty Times has reported that the Bay of Plenty Rugby Union and Baypark Stadium management are waiting for more than $200,000 worth of sponsorship money from troubled property investment company, Blue Chip).

My final words on investment property. Honest!

The news that a large number of companies associated with Blue Chip have been put into liquidation is no surprise. It has been on the cards for some time. It reflects in some ways the 'bubble end' of the investment property market. Guaranteed rents, guaranteed sale to Blue Chip associates after 3 - 4 years, guaranteed capital gains. Great brochure-ware, but a little light on reality.

I guess my interest is slightly raised because Blue Chip have offices in Tauranga and are the named sponsor of our local sports stadium at Baypark. It is where I watch the Bay of Plenty Steamers in the NPC rugby tournament.

My last posting talked about the malaise in the housing market. The Blue Chip debacle will only exagerrate that. The landing is going to be harder than many investors are expecting. And that really is the final word.

Wednesday, 13 February 2008

Property Blues


Today's figures from the Real Estate Institute provide further evidence that the New Zealand residential housing market has turned. Median prices are leveling off and in some regions are actually declining.

Yet it is the significantly reduced sales levels of residential property that foreshadow the market downturn to come. I think it might be more severe than a number of economists have forecast. I have seen this happen before. Business investment will be contained, consumer spending will decline, the economy will slow down.

As it does at this stage of every economic cycle. The question facing NZ, is how quick the decline and how deep the downturn. Come November's general election, the answer to that question will be critical.

What impact on Pingar? With our sales focus being very much offshore, the revenue impact is unlikely to be that significant. The key effect will be felt by any change in the Reserve Bank's interest rate policy. Any reduction in base rates to offset the decline in the domestic economy would almost certainly lead to a lower $NZ exchange rate. That in turn would increase offshore returns.

So new sensitivities are being built into the numbers to analyse the different possible scenarios. And I thought I worked in online publishing.

Tuesday, 12 February 2008

Applying for NZ Citizenship - Clarification

To family members in the United Kingdom, to the brewers at Boddingtons, to the North Stand at Bloomfield Road and to the herring fishermen in Peel, Isle of Man.

I do of course intent to retain my British citizenship. So no fears there then.

Applying for NZ Citizenship



These are some of things I like:

Manx Kippers, mushy peas, Blackpool Football Club, centuries old pubs, the Barmy Army, warm beer, real pork scratchings, weetabix (not weetbix), Ryanair and Paris in under 3 hours.

So why would I want to download some forms from the Department of Internal Affairs website? Will my blood turn black? Will I forsake Twickenham for the shed called Eden Park? I think not. As the saying goes, 'you can take the boy out of England, but you cannot take England out of the boy'.

I have though now lived in New Zealand since 2003. Despite frequent business trips away and more to come, it is my intention to stay. So formalising that relationship seems to make perfect sense.

Apparently, it will usually take between five to eight months from the time I send in my form and documents to the time I will become an NZ citizen. (Subject of course to successful vetting and due process). This timeframe accounts for application processing, approval from the Minister and attending a ceremony. I like the last bit a lot. The warm beers will be on me.

The New Year Resolution - Delayed


I know I should...

Each year, I make the same New Year resolution. And each year it fails. 2008 has been no exception. So it is time to re-visit.

The mirror does not lie and I know I need to start exercising more. So the prospect of gym membership raises its ugly head once again. It is not a prospect that particularly appeals. However an Underground advertising campaign I clocked back in London last month, might just change all that.

PruHealth, a leading UK medical insurance provider were offering to pay your gym membership if you signed up for a medical insurance policy costing between GBP20 - 40 per month. The basic concept is that fit customers cost less in insurance payouts. So it is a win-win for both customer, insurance company and of course the gym. I liked the concept.

The western world generally is getting fatter and the long term consequences for public health systems are potentially fairly dire. This PruHealth private medical insurance initiative seems to address a number of issues. Could it work in New Zealand?

I guess the answer lies in the depth of competition for private medical health dollars. There do not appear to be the range of providers here that one sees in the UK. But it is an initiative that could be encouraged by DHBs and other stakeholders in the health sector. Even for a marginally overweight and disinclined gym user such as myself, such an arrangement could tip the balance and a fitter and healthier lifestyle could be just about to start. I wonder whether Southern Cross are listening?

Monday, 11 February 2008

The Week Ahead


Mount Egmont in Taranaki

It is 12.15pm on Monday and I have just returned from Hamilton. 200 kilometres for a 15 minute meeting. And I talked in the last post about time management!

For the first time in over two months though, I really am based in Tauranga for most of the week. It will make a change. And so will the opportunity to get on top of the 'in' and the 'pending' trays. There are a lot of lists to be ticked off.

I guess it is also going to be a busy week on Skype. The UK Technology, Innovation & Growth Forum event in London is actually only five weeks away. There's a stack to pack in before then to prepare for that in-market visit.

The week ends with a trip to Taranaki and a close friend's wedding. And that's probably it for a holiday this year. There's always 2009 though.

Sunday, 10 February 2008

The Week in Review


Auckland - Host to Thursday and Friday's meetings

As week's go, last week was a belter.

The news from London published in the previous posting only partially covers off Pingar's market entry moves in the UK. That has become a huge priority right now and a number of simultaneous activities are underway to consolidate this process.

Back in New Zealand, meetings in Auckland on Thursday and Friday set up two very specific NZ-focused opportunities. I would expect these to become more 'public' next month.

And in Tauranga, a meeting with Jodie Tipping of Cucumber Software means I will be playing a more active role in the Bay of Plenty ICT Cluster. I hope to be able to contribute.

Commercialising a start-up from New Zealand means that a whole host of variables need to be managed. Development, recruitment, funding, marketing and partnering. Throw into the mix, the fact that perhaps 30% of the next twelve months will be spent offshore and even the most effective time planning comes under some pressure.

Today provides some respite and an opportunity to plan. Monday and it starts all over again.

Thursday, 7 February 2008

UK Technology, Innovation & Growth Forum 2008


It's Official!

Pingar has been nominated by the UK Trade & Investment Global Entrepreneur Programme to present next month at the UK Technology, Innovation & Growth Forum 2008 in the Company Showcase section.

I received the email overnight from London. This represents a major milestone in Pingar's UK market entry strategy. What makes it especially significant is that only four global companies were selected to present in the Company Showcase section.

So it is off to my trusted travel agent once again and time to dust down the tuxedo. I will be traveling to London to take part in the Forum and will use the opportunity to follow up face-to-face, many of the opportunities that the Pingar team identified only a few weeks ago.

Taking part in the Forum will enable Pingar to engage directly with the leading technology, analyst and investor communities in the UK. To have been invited by UK T&I GEP to participate is great not just for Pingar, but a reflection on the role that NZ ICT companies can play on the global stage. It might mean building up the air miles, but it proves that global engagement is possible despite our location.

Tuesday, 5 February 2008

Waitangi Day


Tomorrow is a public holiday in New Zealand. It is a time to celebrate the signing of the Treaty of Waitangi. Last year, Jacqui and I joined hundreds of others by walking to the top of Mauao, Mount Maunganui, for the dawn service.

This year, for the second time, work will once again get in the way of a public holiday. It has been that kind of year to-date. The extended UK visit meant we missed the summer holiday season in NZ. And Anniversary weekend was spent flying to LAX.

Thursday and Friday will see us both in Auckland for more head-to-head stuff. When on a roll, go with it. That's the conventional wisdom, but it's a little difficult when everyone else is on the beach. But the next few weeks are a really significant period for Pingar. The rewards will surely come!

The Rising Kiwi - The Perfect Storm


Almost unnoticed, the NZ dollar has risen above 40p in the NZ$ / GBP cross rate. And it is still climbing.

In simple terms, it means that NZ companies exporting to the UK are getting fewer dollars back in NZ when they bank their GBP receipts. The screw is being tightened on exporters once more.

And it is not just GBP. In this morning's New Zealand Herald, an economist predicted that the NZ$ / US$ cross rate could increase to NZ89c to US$1 by the 2008 year end. That would decimate NZ exporters earnings to North America. Looking at the medium term, NZ exporters are facing the 'Perfect Storm'.

Interest rates in the US and the UK are declining whilst rates in NZ look on hold at best. The interest rate differential is becoming such that the US$ - NZ$ could become the new 'Carry Trade' of choice. There is little the Reserve Bank of NZ can do about this. With domestic inflationary pressures strengthening and the labour market remaining tight, there is little headroom for interest rate cuts. For NZ exporters, the currency climate for 2008 looks challenging indeed.

Saturday, 2 February 2008

Tauranga ICT Innovation Centre


What a Tauranga ICT Innovation Centre could look like...

Since I returned to New Zealand three days ago, I have heard from more than one person about the prospects of an ICT Innovation Centre in Tauranga. Members of the BOP ICT Cluster are being surveyed on their views and a number of local agencies appear to have bought into the potential. So here is my quick take.

If the idea is to build a modern facility with a large pipe and pack it with a spectrum of local IT related businesses, it probably will not work. That is not what ICT Innovation Centres do. To understand this, you could do better than to visit the Waikato Innovation Park in Hamilton. I am actually there on Monday. Now that in my view is what an Innovation Centre is all about.

Waikato Innovation Park is New Zealand’s growth hub for Ag-Biotech businesses. This is where leading primary sector science, technology and research meets the catalyst of entrepreneurship in the form of the Park's 50 resident companies. Its proximity to the University of Waikato campus provides the scientific and academic input into the Park's available research pool.

It is a model that the architects behind the Tauranga ICT Innovation Centre should consider. They need to identify vertical sectors within the ICT space and map those against available academic research partners. By providing a research hub of this type, a Tauranga ICT Innovation Centre could become a Centre of Excellence attracting companies, researchers and investment from outside the region.

That's my quick take. No doubt, more detail later.

Yahoo 2 - U - 2!


So Microsoft offers to buy Yahoo for $44.6bn in cash and shares.

Let's forget the fact that the offer is 62% above Thursday's closing price and the fact that Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.

I really do not see how this deal will work. If it goes through (and that is a big if), I cannot quite work out how the two business models map. One could be cynical and say the move is motivated by Microsoft's desire to confront Google 'head to head' in the online search and advertising space. I am not convinced this is the best vehicle to do that.

The word on the Street is that whilst competition watchdogs might analyse the bid, they will probably not prevent it, given Google's dominance in this space.

I blogged a couple of weeks ago about Microsoft's proposed acquisition of enterprise search engine FAST. I understand those synergies well. That was a smart move by Microsoft.

Not so today's announcement regarding Yahoo. At this point, I do not really get it. It's a lot of money for a company who has struggled in recent years to compete with Google. It will be interesting to watch how this one pans out.

Friday, 1 February 2008

HBI Software - Bangalore Outsourcing


Bangalore - IT City

HBI Software is looking to expand its outsourcing operations in Bangalore.

Formed in 2001, the company focuses on .Net and other Microsoft development technologies. The company also offers high quality design services including Flash.

I know the company well! HBI has been responsible for the development of both the Smart Analytics and the Pingar platforms. Outsourced clients include Canon Europe, BT and The United Nations.

Skill shortages in both the UK and NZ mean that many projects are either being delayed or abandoned. Outsourcing projects to an experienced team of IT professionals can manage that issue. For further details of the Outsourcing Services available at HBI Software, you can email me by clicking here. Alternatively, you can email Santosh Betageri, the company's Technical Manager in Bangalore directly by clicking here.