News Release IBM Global Services Teams with Silent Partner to Deliver Cost/Benefit Analysis Tool for its Business Computing Utility Lincroft, New Jersey, October 27, 1998 - IBM Global Services has introduced a new program targeted to small business enterprises, Business Computing Utility (BCU). Initially launched and tested in Hungary, the Czech Republic and Mexico City, the service is designed for clients seeking best value alternatives to building their own computing infrastructure. IBM Global Services anticipates similar launches during 1998 in Asia and Latin America (as well as other regions). More importantly, the service will enable these small businesses to rationally plan their strategic business management requirements to ensure future growth. BCU is a networked application processing service (a reincarnation the old service bureau notion) that provides service customers with remote access to a portfolio of business management software applications including financial accounting, accounts payable and receivable, fixed asset management, controls, investments, cost accounting, human resources, inventory control, billing, sales analysis, distribution, customer management, and logistics. The company plans on adding electronic data interchange (EDI), Lotus Notes, and industry-specific applications such as manufacturing resource and requirement planning software (MRP). In addition to business systems software applications, clients will also link to the Internet via the IBM Global Network to connect to their respective partners and customers through applications such as electronic commerce, networking banking, and government support programs. When engaging the service from their local offices, BCU customers initially pay a one-time start up fee and then pay a monthly per seat fee, which includes access to the application software and services, line (carrier) support, the processing platform and equipment, user training, and maintenance services. While the real draw for clients is the access to business management functions that they might otherwise not have automated or have outgrown their existing systems, BCU also includes ongoing system maintenance, data archiving, network management, security, and around-the-clock data center support. IBM's BCU team works closely with the client to determine what business applications are most appropriate for the client's requirements. Selected business applications licensed by IBM Global Services are installed on servers hosted at IBM data centers. Each BCU client, through designated multiple users within their organizations, can simultaneously access the various business software applications (and their secured data) 24 hours a day. The BCU support staff in turn provisions the line to connect the user with IBM's Data Center, installation and migration support and training to assist customers in the optimal use of the business applications access they've purchased. In order to most appropriately position the value of BCU, IBM Global Services has provided a sales tool, developed by Silent Partner Software, to essentially create a business justification for BCU. The justification tool looks at the following four factors: Company information such as industry, size, projected growth rate, total numbers of employees, number of IT employees, amount of inventory, and existing technology infrastructure. All aspects of existing and planned business management system. This would include basic practices like General Ledger, Asset Accounting, AR/AP, etc. as well as advanced practices including high end analysis and reporting capabilities. Also, current and planned application integration and support elements. Computing infrastructure costs such as system set up, maintenance, network management and security, data backup and archiving systems, and even the cost of idle time. Local country "soft" costs such as currency conversion, set-up charges, and typical employee salaries. The sales tool incorporates all the above data into an accurate cost/benefit model. The text prompts within the tool are designed to facilitate a dialogue, which enables IBM BCU sales consultants to educate a potential BCU customer while resolving their key decision making issues. The potential BCU customer also shares in formulating the input values that go into the cost/benefit model, and subsequently produces output based on the customer's own unique requirements. The tool is also flexible in a number of other ways. First, data can be viewed as text or graphically. Additionally, the analysis period can be changed on the fly from one to four years. Finally, the tool produces a professionally formatted, customer-specific report that details both the near and long term costs and benefits associated in-house implementation of a new business management system versus that of using the BCU service. Perhaps just as important as allowing potential customers to see the cost analysis and benefits of utility computing services is the tool's educational capability. As the consultants walk the customer through the justification process, full text bubbles appear that provide instruction, information and formulas (where applicable) about each particular issue, for instance, the business benefit of managing cash flow or accounts receivable. This information is tailored specifically to the local laws and business cultures, and communicated to the customer in either business English or the local language. DataQuest analysts noted "The leap from entrepreneurial start-up to an enduring and successful business enterprise probably represents one of the biggest challenges for businesses around the world. Hot companies in fast-paced industries are faced with the conundrum of whether to take the time to implement the business systems required to not only sustain the growing company, but to take them to the next step. Unfortunately, many organizations don't address this critical issue and are unable to control and sustain their growth, and consequently remain stagnant or wither away. IBM's BCU service offloads the critical, but time-consuming and expensive, business systems, and allows enterprises to focus on what they do best--their "core competencies". While BCU is being made initially available in the emerging economic boom countries of the former Soviet Eastern block countries the fact that it's customizable to the individual requirements of the enterprises it services means that businesses get just what they need at that moment in time. Add to that the service's usage-based pricing model, and BCU truly has universal business appeal." "But perhaps more interesting is the role that Silent Partner Software (http://www.silentp.com) plays in the BCU service. As the quantification of benefits becomes more complicated as business and computing systems increase in complexity, the ability to articulate value can no longer be dependent on the sophistication of the sales force. By developing a tool that can communicate customer value in a meaningful way and reduce the cost of the often difficult "intangible" service sale, Silent Partner not only has responded to the needs of their trophy customer, IBM Global Services, but has a very repeatable core that it can apply to the needs of new customers and new industries. Where Silent Partner will tread next is anybody's guess, but clearly web-based tools seem more than likely. Like electronic commerce phenom Calico Technology with their work in the configuration of complex systems, Silent Partner Software will be a company to watch." About Silent Partner Software Silent Partner Software develops interactive sales and marketing tools that use Return-On-Investment (ROI) analyses to help high tech sales organizations explain their value propositions - and justify their price points - to their prospects. Silent Partner tools allow sales organizations to easily and clearly show their prospects how they can save money, time, and/or increase revenue using their products and services. We pride ourselves in transforming financial analyses into coherent, concise, value propositions and sales stories, and delivering the interactive tools sales organizations need to communicate them. Silent Partner's clients include IBM, HP, Network Associates, Intermec and Informix. For more information, please contact us at (908) 876-8700 or visit us on the web at www.phormion.com.