The ROI Case for Hosted Contact Center Services as an Alternative to Premise-Based Systems

1. The ROI Case for Hosted Contact Center Services as an Alternative to Premise-Based Systems Erik J. Laurence VP Product Management & Business Development CosmoCom, Inc. October 7, 2004

2. Business Case Review • Two Perspectives • Two Business Cases • End User • Why Will They Subscribe? • Service Provider • How Does the SP Profit?

3. What’s In It for End Users? • Capital Expenditure Avoidance • Pay As You Go “Utility” Pricing • Focus on Core Business • Not Managing Technology • Capacity Management • Pay for Actual, not Peak Usage • Virtualization • CCOD is Inherently Location Independent • No Extra Costs For Multi-site or Home Workers • Cost Effective Access for All to “Large Enterprise Technology”

4. End User Survey • Why Did You Subscribe to Contact Center On-Demand?

5. Approach for End User Business Case • Total Cost of Ownership Approach • Comparison • Owning & Operating vs. • Subscribing • Key Points • Telco Manages The Technology so You Don’t Have To • Actual Usage, Not Peak

6. Service Provider Manages Technology Customization, Integration & Training Customization & Integration Hardware IT Personnel Maintenance Training Contact CenterOn-Demand Premises-BasedContact Center System & Licenses Subscription Fees Save Money By Letting the Pros Manage the Technology!

7. Basic Apps Only Basic + Advanced End User 3-Year TCO

8. Inputs to Model

9. ACD Inbound Phone

10. ACD Inbound Phone: Multi-Site

11. Integration to CRM

12. IVR – Integrated to ACD

13. TCO Summary – Basic Apps

14. Predictive Dialing

15. E-mail Management

16. Live Internet

17. TCO Summary – Basic + Advanced

18. Sensitivity Analysis • What Happens If The Analysis Period Is Longer? • 5 Years TCO • 10 Years TCO • What If It’s Shorter? • 2 Years TCO • What Happens If IT People Are Paid Less? • $30,000 • $10,000 • Paid More? • $90,000

19. Baseline – 3 Year 5 Year Sensitivity – 5 Year TCO

20. Baseline – 3 Year 10 Year Sensitivity – 10 Year TCO

21. Baseline – 3 Year 2 Year Sensitivity – 2 Year TCO

22. Baseline – $60K $30K Sensitivity – $30K IT

23. Baseline – $60K $10K Sensitivity – $10K IT

24. Baseline – $60K $90K Sensitivity – $90K IT

25. Why Are Telcos Offering It? • Telcos Must Transform Core Business • From Providers of Commodity Transport • To Providers of Sophisticated Telecom Services • Telcos Already Generate Significant Revenue from Contact Centers • Mostly Basic Transport – Vulnerable to Price Competition • Advanced Capabilities Left to Providers of Premises Equipment • Migrates Advanced Capabilities Back to Network • More Network Usage

26. Telco Bottom Line • Results of Operations (Direct only) • Breakeven EBITDA Early in Year 2 • $89M EBITDA Year 5 • NPV of $170M • ROI of 200% • Indirect Revenue • $1M in Year 1 grows to $52M in Year 5 • $1 of Indirect Revenue for Every $2.5 - $3 Direct Revenue

27. The Bright Future of a New Service Delivery Model The Future Starts Now!