chairman's address agm 2013, page-21

Nammitt,i'll give my reasons why i believe asg's data centre will have to be sold for less than book value or written down.(probably will be sold next week for more than book value lol).

ASG has said its not a key asset imo because asg does not have a particular competitive advantage in owning one relatively small data centre in WA a bit like DTL.

So look at the competition ,most mega companies with their own competitive advantages eg most have a national network,companies like amazon and rackspace have scale which does count when negotiating power and transit costs,telstra has its own transit network,even amm owns some cable.

The larger players continue to add capacity in all states so sooner or later as the technology becomes established storage prices will drop.Just one example is amazon has recently cut its prices in the US by 20 to 60% to gain customers from google.Imo this is important in australia because last figures i read (around 6 months ago)amazon had 16,000 plus data storage customers in australia and NZ,telstra had 20,000 plus so as rackspace,amazon,telstra even nextdc etc try to maintain or gain market share prices will drop.

So although ASG say they are making good profits now imo they will at some stage be forced to lower their prices in order to compete or worse lose their data centre customers.

Hows that sound?