The following information is confidential and should not be copied or distributed without explicit written authorization from Citcom Group LLC. All cost and projections are based on the data provided by the client. In an event of limited hard data from the client standard industry accepted costs were used as guidelines. Please refer to the informative introduction at the beginning of your package for better understanding of each category and its implications.

Citcom Group proposes to replace a number of your existing vendors with more capable and more cost effective alternatives. Along with this Citcom Group proposes to introduce a number of new technologies that will bring additional features and reduced costs. Technology alone will not maximize the ROI of such an upgrade. That is why Citcom Group proposes extensive additional training in various topics. Such training will allow the employees to increase proficiency ultimately delivering higher productivity. The end result is to provide better services with more features all at reduced recurring cost.

Citcom Group has spent a number of days on site in the Miami office. We took quick inventory of the equipment on site and reviewed current services providers. Potential Client is a group of related companies that share almost all infrastructure resources. The said companies are spread out globally through a network of small branch offices located in various countries. There are additional legal concerns that mandate that mission critical data servers must be outside of the United States. Due to the nature of the business client data security and redundancy is paramount.

Future expansion plans include a possible franchise opportunity. Where by remote offices can be setup very quickly with minimal infrastructure cost. This future need to expand was accounted for during the evaluation phase. The proposed changes are heavily influenced by these needs.

	Potential Client: Requirements • Mission Critical Off-Site Servers • Considerable Long Distance Capabilities • Multi-Office Collaboration Integration • Maximizing Existing Technology Utilization • On-Site Support Critical • Operating Expense Reduction
	Potential Clients: Trouble Areas • Inflated Long Distance Charges • Unsatisfactory On-Site Support Service • No Employee Training • Underutilization of Infrastructure Investment • Unfinished Infrastructure

The following are various vendors that Potential Client relies on to provide various infrastructure related services and products. Each vendor was examined in detail for services tendered and associated cost analysis. While there are other smaller vendors these are the main suppliers of the key services. These comprise the bulk of the monthly operating costs for Potential Client.

•	Vendor A: This company provides you will complete on-site support in the Miami office. They also take care of your two off-site servers located in Caracas. One server is the main remote access box that a number of people use. Second server is a separate CRM project that's nearing completion. Vendor A has recently changed their billing platform from per incident to flat monthly fee.
•	Vendor B: This company provides you with long distance service as well as rents you the main pbx system for your Miami office.
•	Vendor C: Provides your company with additional long distance service. They also provide calling cards that allow employees to make long distance calls from their cell phones. ( There seems to be some employee abuse of this feature)
•	Vendor D: Local telecom carrier that provides your company with local phone services as well as a data circuit. All the companies above utilize Bell South’s infrastructure to provide their own services.

When Citcom Group takes over the maintenance duties a detailed company wide inventory check is performed. All hardware and software assets are cataloged and entered into a maintenance database. From this point on Citcom will be responsible for storage, retrieval and maintenance of all such equipment. To avoid any discrepancies with quantities of equipment we highly recommend a secure storage area with restricted access.

Malfunctioning, obsolete or broken assets will be carefully examined and a detailed report will be generated. At the end of each month this report will be presented to the controller to make a decision on each item. Items can either be discarded, shelved or repair at additional cost. Citcom will note their recommendations for each item, but the final decision is with the controller.

Currently Potential Client spend just under $12,000 on monthly basis. Some of the monthly costs are averaged out over a number of months. All the information here is based on the records provided by Potential Client accounting department.

Company	Services	Monthly	Costs
Vendor A	On Site Support & Server Management	Flat Fee	$3900
Vendor B	Pbx Rental & Long Distance	Average	$2700
Vendor C	Long Distance Services, Cell LD Access	Average	$3250
Vendor D	Data T1 Line & Local Telephone Service	Average	$2050
		Total	$11,900

Here are the monthly average costs after the proposed changes have been completed. Citcom will take over the on-site support and server maintenance. The current BellSouth data line will be dedicated to office internet use only. One Peatec data circuit will be installed just to handle the VOIP traffic between all the offices as well as any additional long distance. Another Paetec PRI circuit will be installed to handle all the local telco traffic.

Company	Services	Monthly	Costs
Citcom Group	On Site Support Management & Training	Flat Fee	$2700
Paetec	Local Tel PRI - Long Distance Data T1	Average	$2000
BellSouth	Data T1 Line – Office Internet	Average	$800
		Total	$5500

In order to fully utilize the changes and expand the infrastructure features two Fonality PBX systems will be installed. One in Miami and the other in the Caracas office. The remaining offices will continue to use ip based telephones that will directly interface with the new PBX systems. All the current Cisco ip phones will remain and be integrated with the new systems. The only investment costs are the two pbx systems with associated hardware.

Company	Services	One Time	Costs
Fonality	Miami PBX System (Main System)	Flat Fee	$6,725
Fonality	Caracas PBX System	Flat Fee	$6,000
		Total	$12,725

As you can clearly see below the proposed changes will provide substantial immediate savings. Citcom Group can start saving Potential Client nearly half its typical cost every month. The following cost analysis is for the Miami office only. Other offices will see similar savings when they are upgraded to similar systems.

Here are the annual savings as well as a three year cost reduction estimates. All the estimates are based on current numbers and may change depending on utilization. It is important to note that if there is more usage the saving Citcom Group provides would also scale appropriately.

The first year includes a one time initial investment of $12,750 that’s part of the proposed changes. Even including this the first year alone will generate a considerable $64,050 savings. Increasing to over $140,000 the second year.

The bottom line is that Potential Client will see return on investment almost immediately. As early as November the proposed changes will pay for themselves. Moving forward the gap only grows highlighting the potential savings. This is an excellent opportunity to save cost with minimal effort and investment. Depending on Potential Client credit and business standing there may be additional charges from required telecom security deposits. If there is a credit issues in most cases the vendors simply require an extra month deposit. In which case Potential Client would have to pay approximately an additional $1200 the first month. This will not significantly change the ROI date but this is something Potential Client should be aware of.

Because of the rather large scale of the proposed changes it is imperative that a well planned rollout strategy is in place. Number of factors must all be aligned properly for a smooth execution. Below is a quick overview of the planning behind the scenes.

1.	Line up vendors and plan out installation schedule to speed up the rollout. Settle on final infrastructure layout as the end goal. We simply need to make a final decision on what, where and when everything will be done. A simple time line to plan and track progress.
2.	Acquire initial equipment required for the change over. Line up equipment purchases with the budget and create acquisition schedule. Depending on the final plan we may need to purchase all the equipment immediately for volume discount.
3.	Convert Miami office to new system and reconfigure the remote offices according. When Miami office undergoes the change all the other offices will need minor changes to properly interface with the new PBX.
4.	Office personnel training courses, with the new system in place the office employees will be given a detailed training course on how to utilize the new system to the fullest.
5.	Convert each remote office to directly interface with the main Miami office. Each office will have its own needs and this step of the rollout will have to be coordinated with the remote offices directly.
6.	Last step is to identify any problems or unforeseen issues with the new system. Once identified they will be corrected to everyone’s satisfaction. There are always some unforeseen issues that only come up when the system goes live. Citcom Group will make sure that any such bugs are quickly fixed.

Below you will find a revised time line showing the step by step rollout stages. Additional details will be added as they become available. The initial date may change but the overall spacing between each stage will remain the same. The time line is somewhat relaxed to allow for any unforeseen delays that always come up when dealing with giant telco providers. In most cases the changes are done ahead of schedule on non time sensitive stages.

Payments are made monthly on advanced schedule, meaning to receive services in November the invoice must be paid in late October or early November at the latest. Any additional charges for previous month will be added to next months bill. All charges will be clearly explained and tracked. Additional charges would result from additional upgrades or services rendered outside of the existing contract.

As you can see the entire upgrade can be accomplished by late November. Potential Client will see return on investment in late November 2006. We will continue to update and revise this proposal as more information comes in or new features are added. We always welcome questions and suggestions.

Thank your for you time we hope to work with you soon.

For your convenience we have setup a pdf repository of this and past revision. This way there is a catalog of revision changes for everyone to review. Please download the pdf revision of your choice from the list below. As we add and update the proposal we will update this section as well. The latest revision available is considered the final at that point in time. Our partners are immediately notified of any changes in the proposal along with an explanation.

Revision Number	Date Posted
Proposal Revision 1.6	October 12th - 2005
Proposal Revision 1.5	October 11th - 2005
Proposal Revision 1.4	September 22nd - 2005