The finance debate

The finance debate

One of the key debates, at least as far as the platform was concerned was the debate on whether to freeze the subscriptions again. The CEC had made their task harder by deciding to reduce the branch capitation payments. Until earlier this year, branches by rule, retained 10% of the membership fees paid by their members. The CEC implemented a 25% cut to these payments. They proposed a special report confirming their actions and amending the rule to permit this to occur. The initial agenda had 19 motions critical either of the adjustment, or of the way it had been done and one in favour; it had seven motions calling for alternative subscription fee structures. By the time of the debate, the only survivors were the motion supporting the CEC, one removing regional committee discretion, one postponing it to later in the year and one criticising the way in which the CEC had behaved.

The article overleaf is quite long; the conclusions are that the CEC got their way but to my mind didn't tell the whole story, which they may come to regret.

New problems, new architectures

I originally wrote a piece on my sun/oracle blog called “Are “Quants” suitable for grid infrastructure?” I used a finance dictionary to create a dichotomy between Quants & Chartists and suggested that new IT architectures were needed to deal with trends and forecasting, especially if applied to portfolios and baskets. I reproduce the words here, as I was clearly struggling towards a forecast about big data and new application’s and implementation architectures. The original is not tagged “big data” as it wasn’t a current term at that time. …

Real Options & Flexible Planning

Kieron Bradley, one of my colleagues at Sun, during a piece of client consulting recently had reason to use financial option theory & language to justify why CPU’s in Sun’s large systems are more expensive to buy than those in the smaller ones. He and the customer had examined all the TCOO factors they thought were relevant and the fact remained that if one wanted to take a utility view of CPU supply, it was cheaper to buy and run smaller systems rather than larger ones. (This particular analysis did not perform a variable utilisation analysis. It was assumed, (or defined as policy) that all CPUs would run at a given % utilisation. Contradicting this assumption, it is a fact that large (and flexibly partitioned) systems are easier to keep busy.) …