• Free CIO-level whitepapers



    [ad] Check out these whitepapers published by IDC and HP to help you make tough decisions about your IT environment.

    Leveraging the Always On support experience for IT transformation: This IDC whitepaper outlines the importance of support services in IT environments. IT organisations are now required to support everything from legacy systems and storage to virtualised configurations and cloud-based computing in complex, heterogeneous environments. The increasingly critical role of vendor-supplied external support services is discussed and highlighted in addressing these emerging IT environments going forward.

    Conquering the challenges of data center complexity: Virtualisation and cloud are two popular IT trends that lower costs and make computing more secure and efficient. However, they also add complexity. Read this thought leadership paper and learn new ways to conquer your data center complexity challenges.

  • Great articles on other sites
  • RSS Delicious/delimiterau


  • Save $200 on HP ProLiant Servers


    [ad] The HP ProLiant ML110 G7 is the ideal server for a growing business. These servers are preinstalled with Microsoft SBS 2011 Standard Edition so you can hit the ground running. Grab this coupon and save $200 each on each server, up to a value of $1,000 per company.

  • 5 months FREE on phone system rental



    [ad] Rent a new phone system and connect your phone lines with Commander to receive 5 months rent free. Why rent with Commander?

    -Tailored complete solutions
    -Great offers from leading phone system brands
    -Rental & communication on a single bill
    -Renting systems conserves cash flow

    Hurry – act before 30 June!

  • HTC One X launch special


    [ad] Vodafone has launched HTC's new flagship One X phone in Australia with a launch special of up to two months' free access fees -- a total saving of up to $118 off. The One X is available starting at zero dollars upfront on a $59 a month plan. Click here to check out the details.
  • Featured, News - Written by on Monday, March 29, 2010 18:58 - 0 Comments

    Netspace founders to leave post-iiNet deal

    Netspace co-founders and sole investors Stuart Marburg and Richard Preen plan to leave the internet service provider before its $40 million acquisition by rival iiNet is completed by the end of April, iiNet chief Michael Malone revealed this afternoon.

    However, iiNet plans to maintain the Netspace business as a stand-alone brand, he said, similar to how iiNet has managed its previous Westnet acquisition, with the company’s 180 staff and management team led by chief operating officer Peter Eley to remain and back-end technical integration work going on behind the scenes.

    Netspace was founded in 1992 by its current managing director Stuart Marburg, and technical director Richard Preen. The company was today directing enquiries to iiNet’s spokesperson.

    In a teleconference to detail the acquisition to journalists this afternoon, Malone said iiNet had been talking to Netspace off and on for “probably over a decade” about bringing the two companies together.

    There wasn’t any special precipitating event that had finally brought the acquisition this year, he said — instead, it came down to the personal situation of Netspace’s founders, who were “at a point in their life where it made sense”, he said, noting iiNet and Netspace had been in formal talks for around the past six months.

    “We’ve come close on a few occasions, but nothing down to agreed price or anything like that, more down to principles. There was always a gap in price — it would have been a good fit otherwise.”

    “iiNet’s investment criteria hasn’t changed during that time,” Malone added. However he noted Netspace had invested in its business in that time, making the business more attractive — for example rolling out its own ADSL infrastructure in telephone exchanges.

    The Netspace acquisition will add DSL multiplexer (DSLAM) infrastructure in 17 telephone exchanges — including about 12 in Tasmania — where iiNet does not currently have its own hardware, although there is some overlap between the pair. The addition will mean iiNet will have its own ADSL infrastructure in some 345 exchanges nationwide.

    In general, iiNet will attempt to migrate its own customers onto Netspace’s network in Tasmania, and Netspace’s customers onto its own network in other areas. Malone said if there are existing ADSL ports available at exchanges, customers could be moved over within a few months, but typically it would take much longer due to the need to build back-end infrastructure.

    Netspace currently has about 20,000 of its 70,000 customers on its own network — with the remainder on resale services from wholesale provider such as Telstra.
    iiNet will also give Netspace customers access to the internet television (IPTV) services it plans to launch in trial form by the end of this month, however less customers on the Melbourne-based ISP’s network will be technically able to receive a solid service.

    Malone said the IPTV service only delivered a good experience for customers who were on iiNet’s own network, had a line speed of over 6Mbps and had their telephone exchange connected via fibre. “We need to control quality of service all the way from the set-top box back to the CBD,” he said.

    “In iiNet’s case, it would be 53 percent of the total customer base, in Netspace’s case it would be even less — a lot less.”

    Malone said one of the factors that had given iiNet confidence that the culture of the two companies would be a match was the fact that both Netspace founders had been operating “almost like directors” of the business for the past few years, with a professional management team in place.

    He also noted the heads of Netspace’s development team and call centre were ex-iiNet staff. “They’re actually double agents for iiNet that have been operating for some time now,” he joked.

    Ultimately iiNet is still in a position to look for other acquisitions, Malone said, but he didn’t expect that would happen by the end of 2010. He noted that iiNet’s view was that eventually Australia’s ISP market would be dominated by up to five large players, who had the capability to offer the next generation of online access.

    “It’ll be very difficult to operate as a small player then,” he said.

    Image credit: iiNet

    Related posts:

    1. iiNet buys Netspace for $40m
    2. iiNet to buy Netspace for $60-75m?
    3. iiNet confirms Netspace talks
    4. iiNet and Netspace? Hell, it’s about time
    5. Acquisition sends iiNet into trading halt
    submit to reddit Print Friendly and PDF

    Leave a Comment

    Comment

    Get our daily newsletter

    Get our new articles every day by signing up to our daily newsletter.

    Email address:



  • Anonymous tips

    Got some inside information on something that should be made public? Use our anonymous tips form. Even Delimiter won't have a clue as to your real identity.

  • Most Popular Content


  • Three lessons ING's private cloud teaches us
    sponsored post ING Direct recently implemented a private cloud solution to virtualise its entire banking platform, allowing it to provision a new copy of itself -- a so-called 'bank in a box' -- within minutes. Here's three things other organisations can learn from this interesting deployment.
  • Enterprise IT news & views

    • SAP’s SuccessFactors deploys Aussie datacentre successfactors

      SAP subsidiary SuccessFactors has opened a datacentre located in Australia from which it will sell its software as a service-based human resource management and business execution software to local customers, in one of the first known deployments of such dedicated Australian infrastructure by a global SaaS vendor.

    • Govt pushes ahead with cloud-sharing approach clouds1

      The Federal Government today revealed a standardised approach to sharing computing workloads between agencies, in a so-called ‘community cloud’ strategy that will attempt to leverage existing infrastructure operated by major departments such as the Department of Human Services to provide services to smaller agencies.

    • The ABC didn’t sack Bitcoin miner dollar-coin

      The Australian Broadcasting Corporation didn’t fire an un-named IT worker who attempted to use the broadcaster’s vast server infrastructure to make himself a fortune through the Bitcoin virtual currency system, it has emerged, with the employee merely being disciplined and having their access to certain IT systems restricted.

    • Victoria dumps HealthSMART e-health project pills-2

      The Victorian State Government has reportedly decided to walk away from its troubled central electronic health project HealthSMART, which has reached only a limited number of its goals over the past decade since it was initiated, despite soaking up several hundred million dollars worth of government funding.

    • HP completes giant new NSW datacentre 1

      Global technology giant HP has finished building its colossal $119 million new datacentre in Western Sydney and will launch the “world-class” facility next month, with a speech slated to be given by Communications Minister Stephen Conroy.

    • Microsoft beats Salesforce to utility CRM deal microsoft1

      Energy retailer Australian Power & Gas has picked Microsoft’s Dynamics CRM system over rivals Salesforce.com and Right CRM as the base platform for a customer relationship management overhaul to tackle incoming email complaints.

    • NSW finalises colossal datacentre consolidation cableguy

      The New South Wales State Government this week announced the Leighton subsidiary Metronode as the winner of its long-running and wide-ranging datacentre overhaul project, with the company to construct two new substantial facilities which will allow the state to consolidate its IT operations drastically.

    • Two good Australian CIO interviews IT-manager-cio

      There have been a couple of good interviews with Australian chief information officers done by various media outlets over the past couple of days — good enough that we thought them worth highlighting to readers on Delimiter.

  • Enterprise IT, Featured, News - May 23, 2012 12:54 - 0 Comments

    SAP’s SuccessFactors deploys Aussie datacentre

    More In Enterprise IT


    Analysis, Telecommunications - May 23, 2012 11:08 - 5 Comments

    The NBN, service providers and you … what could go wrong?

    More In Telecommunications


    Gadgets, News - May 21, 2012 12:32 - 5 Comments

    Galaxy S III listed for Telstra, Optus and Vodafone

    More In Gadgets


    Reviews - May 7, 2012 18:16 - 2 Comments

    Telstra Mobile Wi-Fi 4G: Review

    More In Reviews