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June 15, 2008

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Georg Loos

Hello Chris,
There is a major aspect not sufficiently covered which are the consequent changes in CAPEX and OPEX for the solution. Initially, as a separte solution it caused 2 time OPEX running a current and new system in parallel. In the 2nd step, launching the solution as an enhancement to the existing system, the increase in OPEX was significantly reduced. A wider deployment also required a significant reduction in CAPEX.

Chris Bohrson

George; thanks for the comments. Your observations are spot on. One of the points the case study makes is we had originally banked on our ability to sell a product focused only at DSL pre-qualification. But we found this approach was not working due to the complexity of the sale. That is, for this type of product required we had to “make the sale” to three different groups in different ways: 1) the operational sale to those responsible for generating DSL revenue, 2) the financial sale to senior management and 3) the deployment sale to the groups responsible for managing the extensive phone network. As you note, that by enhancing the product and positioning for both DSL and voice we reduced the effort in all three areas including being able to make a much more effective financial pitch focused on OPEX and CAPEX.

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