Material or not, this feed has been full of comments asking...

Material or not, this feed has been full of comments asking about NNG's post-restructure strategy and the addition of enterprise asset optimisation capability in conjunction with IBM is significant in that context. To execute effectively we have to make an investment in people and time which is important to investors when they look at the 4C and the annual report. Heading down this path but saying nothing doesnt make a lot of sense.

Yes AI is a trend just like Bit Torrent and Crypto and Cyber Security before it but the desire for almost every enterprise scale customer to have an AI strategy is driving demand for our services. NNG not having an AI strategy would be like McDonalds not offering coffee.

My view of AI, especially LLM's is that they do have a lot of utility for most organisations. The businesses I'm involved in are working on AI projects large and small in many parts of the world. Some of them are a bit crazy but a lot of them are revolutionary for customer service, staff training, skill augmentation and alike. These are real applications that drive productivity and tangible savings so unlike many previous IT trends, AI will probably have a lasting impact.

On the metrics, a typical enterprise software project can deliver $1M+ of revenue at gross margins above 50%. Compare that to traditional hardware and network projects that deliver maybe $150K of revenue and 20% gross margins and you can get a feel for the impact this strategy could have on the top line and bottom line of NNG if, as you point out, we execute well.

Lets see how that goes.