This is a possibly rambling post of my recent thoughts about the...

This is a possibly rambling post of my recent thoughts about the future direction of GSW - opinion only. I was initially disappointed to read that they are seeking potential bids for the company. However on reflection I think taking it private again is the way to go. If it stays publicly listed, it's going to be news-driven until a solid increasing income stream is proven, and that usually takes years, not quarters to convince investors.

Volatility will result. Investors will be unsettled. Generally a lot of investors don't understand the trend to a PAYG model. I've read many arguments against it - what's to stop the users developing their own? If there is no contract, revenue is uncertain and unpredictable. Etc.

We are transitioning away from fixed contract models in many industries, for instance a lot of online newspapers that initially signed people to contracts are now offering a read-per-article option. It's what the end user wants. It opens an SAAS provider to users of all sizes, because even small companies with unpredictable or fluctuating deliveries can suspend. Big companies will be less resistant to trialling it because the long term risk of breaking a contract is negated.

Even the media (supposedly knowledgeable financial writers) appear to only see the downside to having a no-lock-in contract. The explanation that GSW gave - that an unauthorised person at Fantastic signed up, and GSW was obliging in suspending once asked - rings true to me in spite of the opinions offered in certain newspapers. Because GSW is also wooing and winning customers by being easy to deal with in this regard.

So my personal view - and it's only an opinion - is that they should be taken over back to a private company so that they can step away from the noise and ongoing media attention and concentrate on developing their products.