Ann: NET subsidiary iLinkAll VSN implementation & supply agreemen, page-42

As is typical with these NET announcements, we get to play the game of working out exactly what it means, because they never actually make anything clear. Is it software sales? Is it licences? Is it recurring revenue? jcallaway says it is an IOT deal although I am not sure why he/she thinks that.

The announcement's second paragraph appears to be the most informative:

"iLinkAll will provide development and technical services in conjunction with its software to the Project. The VSN software will provide secure remote connectivity of the automation control system and informationmanagement system integration platform for the Project."

Then a bit later:

"The VSN software will continue to be used to securely connect nodes for the ongoing monitoring of water supply and sanitation services."

I like the way they always try to throw a big number into their press releases. The population of Sichuan Province is 81m, apparently. But that does not seem relevant to anything.

My guess is that iSoftStone, as a massive services supplier, has landed the contract to provide the infrastructure for this project. Since they own a bit of iLinkAll it is in their interests to throw their subsidiary a bone occasionally. I think that is what they did last time with the $285,000 which got labelled as licences, and subsequently confused everyone when it failed to recur. This time they have played it a little straighter, calling the payment "development and technical services," although still not actually saying what that might mean.

The VSN software appears to be in the plan for connecting the nodes which monitor the service. That ties in with JT's claim in his interview of "a secure network of several devices." Not 81 million, then.

So my take is that it is a one off consultancy deal thrown NET's subsidiary's way by iSoftStone.