Macquarie Telecom, 50%, 20% discussed on Nightlife


Of course, is you do pay it back over time by raising Texas. On. So it's some point will get a change of government whether it's in the next election or the one after that, or the one after that, I don't know. But at that point we might see Texas rise. We saw Biden, for example, just last week. Announced the prospect of a doubling of capital gains tax or almost doubling going from about 20%. This is federal capital gains tax going from 20% to 39.8%. On said the same thing could happen here in the strata that we rise text to play those debts off. The other option is debt forgiveness that countries eventually sit around going. You know what You're not gonna pay me back. I'm not going to pay you back. Well, why don't we just met the difference on bats? That's an option too. Now that sounds crazy right now, But we just don't know what kind of economic predicament we're going to be in. In 10 or 15 years time and whether or not we all have the ability to pay it back. Yes, exactly. All right now in weight in the business, Look for opportunities given that equities markets do you think of going Well, Yeah. Look, you mention cloud computing. Yeah. Look, I thought Clark, I think cloud computing is is an opportunity because Lot of investors bought cloud computing and data centers in it's in the on the Australian stock market during lockdown, and the reason they did that was because the thesis was people are at home. They're shopping online. This streaming movies. They're streaming music. And of course, you need a lot of cloud computing for that, And you also need a lot of data center megawatt hours for that. And so these companies would do well. The interesting thing is, though, when the vaccine appeared to be successful, and when it started, it looks like it's going to roll out. There's a little while ago. Then what actually happened was investors sold those stocks because I thought that story's over, and that presents an opportunity because this is a structural shift. You might remember years and years ago. Well, I remember many years ago working in Australia Square on, also in Grove Ner Grover, the place in Sydney's CBD. And I can remember there was a floor in each of those offices where I worked in the banks that I worked at. There was a floor dedicated to I t yet racks and racks of service. On. You have not a team And if anything broke, you know somebody had come up to your desk and fix it for you. But everything was stored on servers that we shared. We shared all the information within the office. That's all outsourced. Now it's all gone on Duarte done. It's democratized the the power of the Internet for companies, so small businesses have the same access to that kind of facility where previously they were locked out because it was so expensive And so it's a very real Opportunity. It provides the infrastructure of the picks and shovels for small businesses to disrupt much larger businesses. I think I have it right, but it's like thinking your photos on your computer or actually On a server in Slovakia. Probably or probably, probably, Yeah, and you know that's actually where they are. Yeah, that's well, They're actually in the night on your computer at all. And they're actually they're probably on their not in once. They're not on one data center there in multiple data centers, because if one fails, they need to have redundancies. So it's you know, it's somewhere else. Said. The cloud is you know, the cloud is really just an outsourced bank of service where all the information is stored. The Netflix is of the world and the Spotify is of the world. They have to have. That the music stored in multiple centers around the world, because if it was all in one place than people who were the furthest away from it would get the worst experience s so it needs to be in multiple jurisdictions so that we're all close to it. And then I So I think this is a long term structural change. This is not something that short term it's not related to Cove it today. For example, enterprise level penetration of cloud services. Is it about 22% or 23%? That's where smart finds were about a decade ago. Well, they're about it's where laptops were 18 years ago, says a lot of growth to come and there are companies on the Australian Stock Exchange There's next day. See there's Macquarie Telecom. You know, there's business is like that. But I believe are going to be much more valuable in the future than they are today. I don't know It always struck me. I love you comment on this that cloud computing is one of those things we could see. You could see the whole business tending to monopoly really quickly because it's only capital listeners. This will is a big outlay out front. That's the only barrier to entry is capital. Yeah, there's a look, I think I think these businesses of the future infrastructure companies, you know, once a data center is fully tenanted, let's say you're Macquarie Telecom. For example, Adama, Corey Corey Corey Park. Repping in Sydney. You've got you've got really high end clients. You've got government and semi government departments and they renting space in highly secure. Really important server racks. And then once that's fully tenanted You've got a really boring long term income stream coming off that now that that sounds to me a lot like infrastructure, and I know there are buyers out there for those types of assets, for example, lunch of Canadian teacher's pension fund exactly. Yeah, they love those boring types of assets. And so I see a story where, as the centers of developed Valuing crisis, And then once they fully tended, you'll see a lot of analysts scratching their heads saying, Well, what happens next? Well, what happens next is the Canadian teacher's pension fund says Thanks very much. That's prostate 4% year. That's president of 4% Yield. We're happy to give our members a 2% yield, or 2.5% here because they're getting zero everywhere else. On. So will pay 50% more for that on. Do you get you get it taken over at even higher premium. So I see that playing at not only for Data centers, but also for a couple of companies that are now building a challenger to the NBN as well in a lot of the brownfield sites in western Sydney, for example, So you've got a developer out there. Who's building his football 100 acres of about 1000 acres, and they're putting in streets and they're putting in all the infrastructure required one of the infrastructures that they have to be able to offer when someone buys a house and land package. Is the Internet. I need to be a bit off the fast Internet. And so they approach a company like Unity Wireless, for example, and I should confess a lot of these companies The companies were and so please don't rush out and buy them because if you do you're helping. May you know you haven't done enough work on it to begin with. And and we already on some of these things, so it's really important. You don't just go out and buy them. So keep that in mind. But But what happens is unity actually gets paid by the developer buy the property developer to install this infrastructure. And then when customers who came to it and I subscribe to a service saved through Telstra or optics or whomever they've got a bundle of package on they connect to the Internet. Then they paying a company like unity. While it's the same as they might be paying the NBN s. Oh, so there's a lot of growth out there, and that's that's one sector that I take communications cloud computing sector where I think there's a lot of opportunity opportunity is also in the search for income. Yes s Oh, there. It's pretty boring at the moment. It's not as exciting as e commerce. It's not as exciting as what we just talked about. But there are REITs or real estate investment trust that listen on the Australian market..

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