A New Investor in TNE, page-29

These companies have not provided BAU support for that length of time, and if they did it was not at that scale. They are not providing BAU support, they are competing and replacing the relationship TNE has. They have adversarial relationships.

I may be down on TNE, but that is because I have taken a deep look into their relationship with their customers. I am sure they will stay around, but a lot of their decision making and lack of transparency worries me. They still have a court case with the ex Victorian Manager and a complaint from a project manager with the human rights commission. These things are not being disclosed.

Their cloud is proving to be troublesome to their customers, and they are talking about a move to “C4” or true cloud in around 7 years or so. Another massive investment and change for customers who only recently moved to their cloud hosted “CI Anywhere” software, which is not completed for all customers yet. This investment will potentially be much larger as it will be a complete rewrite, rather than just the front end, which is mostly what they did with “CI Anywhere”. From my understanding they did change some backend, but only to ensure it would work with AWS cloud.

They are still winning sales, as they have a great sales operation, but this will not stay the way it is if they cannot fix other parts of the business. I think they can really forge ahead if they address some of their problem areas. They have been great in the past and made me a lot of money, but they need to become transparent, fix their relationship with third parties, and fix their HR issues. The reason I am hard on them is I see massive upside, but only if they fix their issues. The reason I looked so deeply into their operations is because of the issues I saw coming out of the Brisbane City Council debacle and the lack of any information. I will reinvest if they fix their management and transparency issues.