To: Board of Directors From: Jim Burnham, CEO, Montague Software LLC cc: Janita Adams, Chief Procurement Officer, Montag

[answerhappygod]

To:
Board of Directors
From:
Jim Burnham, CEO, Montague Software LLC
cc:
Janita Adams, Chief Procurement Officer, Montague Software
LLC
Date:
April 28th, 2022
Re:
Telephone Service Savings
A.
SUBJECT
Potential cost savings and synergies with regard to
telecommunication services.
B.
BACKGROUND
2
Montague Software LLC has 50,000 office land lines in service
through Tellecom Co., with the majority of them assigned to staff
and the remainder in place in meeting rooms and other locations
throughout the organization. These lines cost $50.00 per month and
the devices, when purchased new, cost under $500 each. However, we
have a surplus of these devices in storage and we do not foresee a
requirement to purchase any new phone devices in 2022 or 2023. Our
CFO, Darren Clark is concerned over these idle phones and the
storage costs.
Since Covid, we have opted for staff to remain working from home
and anticipate few staff to return regularly to our offices.
Montague Software LLC has 35,000 mobile devices in service through
PhoneRTel Ltd. The majority of these devices are owned outright by
Montague Software and we pay $25.00 per month per device to operate
over the PhoneRTel network. There are additional monthly charges
per device for any data usage over 1000MB as well as for any U.S.
long-distance calls. The rest of the devices are more recent
implementations and we pay an upfront cost of approximately $1000
per device. Usage costs for these devices include $25.00 per month
for network charges for the first 24 months and $25.00 per month
after that, as well as additional charges for data consumption over
500MB and U.S. long distance usage. Our current practice is to
replace mobile devices any time after 12 months usage upon request
by the individual staff user. Staff view their cell phones as an
employee benefit.
Historically, all employees were assigned a land line phone number
and a cell phone number which Montague Software LLC paid those
charges. In addition to this, an employee could be provisioned with
a mobile device upon request without manager approval. Our records
indicate that we have 20,000 staff users who have been assigned
both a Montague Software LLC mobile device and a land line device.
There is an opportunity for annual savings by removing land line
access for those users are also assigned a mobile device. (Please
note that our practice has evolved over the past two years in that
most new employees are now being assigned only one telephone
option, either land line or mobile, but not both).
Implementation of the corporate telecommunications strategy over
the next two years will eliminate the need for land line telephone
service and reduce the need for mobile telephone services. Internal
and external communications will be able to be conducted through
our proprietary integrated application and telecommunications
Montague Software. We want our own staff to utilize this and test
it for market readiness and future sales.
3
I have tasked Janita Adams to provide a comprehensive supply chain
case analysis of this “Phoney” situation to present to you all at
our next Board Meeting on Thursday, May 5th, via D2L submission for
prior review.
QUESTION
1. WHAT ARE THE IMMEDIATE ISSUE(s) or PROBLEM(s)
2. WHAT ARE THE BASIC ISSUE(S) or ASSOCIATED
ISSUE(S)
3. ANALYSIS or INFORMATION SUMMARY OF THE
ISSUES
4. WHAT ARE THE ALTERNATIVES or OPTIONS
AVAILABLE
5. RECOMMENDATION(S) and IMPLEMENTATION PLANS
SECTION VI - MONITOR and CONTROL