Another area on the budget request is the landlines phone expense, totaling $7,500 per month for 1 20 lines, voice mail and other related services through the current carrier, totaling a yearly charge of $90,000. Changing over to Poi telephone system, can reduce the number of lines from 1 20 to 24 lines to handle fax machines, alarm system or any other analogy POTS line the company may need, in addition to EYE 1 seems. Some POTS line will not move over to Poi service at this time and taking into account additional bandwidth requirement.Removing 96 lines will result in a monthly saving 6,000 per month or $72,000 yearly. The monthly cost for the 24 lines will be $1 ,500 or $1 8,000 yearly.

The Poi telephone system unified communication systems will handle vocalic service locally and not through the telephone provider. In addition, the vendor will train all employees as part of the implementation of the Poi, but IT staff will require 8 hours of training at $1 25 per hour costing $1 ,OHO to learn how to administer setup and make changes to the Poi telephone systems.Additional training for IT staff will be budget for two years to ensure the IT staff has a good understanding and irking knowledge of the IP PIX system and any unresolved question after completing the first year training. The biggest cost of moving to Poi telephone system is the hardware cost associated with the changeover.

The hardware cost is $40,000, which will cover all the cost of the hardware, cabling, servers, phones and routers the business will require to move over to the Poi telephone system.In additional too hardware cost, the maintain cost from year 2-5 will run $2,800 per year to support maintain technical support and product updates. The current data circuit would require an upgrade to handle the additional traffic. Upgrading the circuit would be $800 for the first year, then it will add an additional $600 per year to the current cost or additional $50 per month. Lastly, the Poi software licensing for the unlimited license for a single server cost $1 ,200 per year.This includes the Poi PIX software, unlimited licensing for one seer. ‘err, unlimited users voice mailbox, one-year support and maintenance, free upgrades.

The reduction in the number of phone lines pays for the Poi telephone systems implementation and all the associated cost to move forward with this request and decrease the budget by 4. 01% over last year budget. Cost-Benefit Analysis The cost benefit analysis allow the company to make better educated decision when determine if they are going to move forward with a project.The direct cost associated with the Poi telephone system implementation give the expected cost of the project by determining the known cost that are closely related to the project. The current direct cost includes the necessary hardware, software, consulting service fee and training for IT staff and users.

A possible hidden cost associated with this project is increasing bandwidth. The indirect costs are cost that are unintended that can occur from other action in the project. An indirect cost with the Poi implementation could be overtime for either the IT staff, employee’s training on days off or providing lunch during training days.The financial benefits of Poi implementation is through the saving on the number of landlines require. Currently there are 120 landlines being used, which can be reduce to 24 landlines to handle items like fax, modem or IEEE that may not initial be used with the Poi system. The reduction in landlines can save $72,000 dollars in the first year along with hardware depreciation of the equipment of $8000 per year and using the out-attendant system could eliminate the operator position which can also be a saving of $28,000 per year if the individual makes that much.A non- quantifiable benefit through Poi implementation is improved employees morale, which can increase in employee productivity and a reduction in over- time directly associates the savings in labor costs.

Another non-quantifiable benefit is improving quality of service delivery to customers, which can lead to new sales for the business. Moving to a Poi telephone system the company can expect ROI on this investment in 6 months and ten days.