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Avotus Awarded Patent on ICM E-Procurement Web-Based íReverse Auctioní Technology And Methodology

Tuesday, August 26, 2008

Market-leading results driven by unique sourcing and procurement process-technology combination

Toronto, Canada & Boston, MA -- Avotus Corporation, the leading provider of Telecom Management Services, including Expense Management (TEM), eProcurement, and usage management solutions today announced that it has been issued a U.S. patent for its proprietary ICM eProcurement web-based reverse auction-based technology and procurement process, which revolutionizes how enterprises source and procure voice and data services contracts. Use of the patented system typically produces five times the economic benefit of any other procurement process, significantly reducing the RFP-to-contract formation process and delivering far better contract pricing. The resulting contracts are much more favorable, creating tremendous operational flexibility for the client.

ICM eProcurement replaces the inefficient several month to over a year process for procuring global network services such as voice, data, wireless, Web, and other Internet (IP based) services. The Auction replaces the tedious legacy RFP and negotiation process commonly in use The now obsolete process (which is replaced by the auction) began with the creation and issuance of a request for proposal (RFP), then moved to an extended evaluation, rationalization, and clarification cycle of all submitted vendor responses, then to an equally long contract negotiation cycle, wherein price, contract terms and SLAs were worked through and agreed to manually, or on a commodity auction such as Ariba. For most enterprises this process used hundreds, and sometimes thousands of person-hours, demanded in-person meetings, and required a starting point as much as 1½ years ahead of the current contract expiry date.

By contrast, the Avotus eProcurement Auction replaces the legacy RFP creation and issuance process with an extensive, fine-tuned, customized communications and network-specific question set, reverse auction technology tuned for the complexities of voice and data procurement, the industry’s only proprietary knowledgebase of best-in-class rates, terms, conditions, and SLAs derived from actual carrier bid data carried forward from all previous and extemporaneous auctions, negotiated for the client on-line instead of in-person, and in-house domain expertise. This combination enables the entire RFP-to-contract process to be initiated and completed in as little as six to sixteen weeks from commencement, while providing the greatest possible negotiating leverage for the customer.

"This patent represents over 20 years of continuous research, investment and innovation. It codifies the best consulting practices, translates, and interprets an accumulation of over 5.5 million data points which enables us to achieve superior results. With this unique solution, we have shifted the balance of power and information from the carriers to the users." said Brad Buxton, president and founder of Avotus eProcurement, and primary inventor of the eProcurement patent. "We are pleased to see our research and development activities recognized in the form of registered patents."

Avotus’ eProcurement solution has been used successfully for thousands of bids by national and multinational organizations to obtain dramatically better contracts faster, including rates, service levels and terms than they could have achieved using any other method.

"We were both a fast-growing company with corresponding telecommunications challenges and one which required planning and management of new products from different providers within an environment of contractual chaos" stated Ken Dracus, formerly Global Network Architect for Netscape. "At the time, key inputs to the sourcing and procurement process were managed manually and based on static historical information. The Avotus ICM eProcurement Auction changed all that for the better. It represented the first time that the consumer and the supplier of services operated in an environment of equality. From my perspective, using this technology was the first time that I was not at a disadvantage. I was able to proceed toward an expeditious conclusion confident that I had the leverage I needed for the best possible results. Had this process been available earlier we would have reevaluated service costs at least twice a year and seen benefits each time."

"Sourcing and procurement are a critical component of the Telecom Expense Management (TEM) cycle for the enterprise. Surprisingly, many companies, even after automating other aspects of their TEM process, continue to source and procure their voice and data services using inefficient means," said Eric Goodness, research Vice President, Gartner. "The more holistic the implementation of TEM and the more effective the use of technology-based solutions, the better the results for the enterprise."

"We are delighted to receive the patent award for our eP technology and methodology," stated Richard Garnick, Avotus executive chairman and CEO. "The patent shows Brad Buxton, who architected both the methodology and the technology, to be a true visionary in the area of sourcing and procurement. For Avotus this means that we have a potent negotiating tool to bring to bear on behalf of our customers. For our clients it means the best possible contracts for their voice and data services. This also enhances the value of our global integrated life cycle management for voice/data across all mediums (wire line/wireless) every step of the value chain from procurement to payment."

About Avotus Corporation

Avotus changes the way companies source, procure, and manage their communications services and assets. By combining technology, automation, and domain expertise under the Avotus Adaptive Communications™ model, Avotus is helping Global 2000 companies transform their telecommunications spend. This strategic set of services includes Communications Assessment capabilities, which help identify, diagnose and understand business problems and opportunities; Advisory Services, which provide valuable insight into clients’ telecom challenges and offer both technical and business process-related solutions which bring enhanced value to our clients; Managed Services, which provide specific business process and service support; and Outsourcing Services, which completely transform a company’s operations and provide third party hosting of a company’s communications infrastructure.

Avotus has a 20-year history of empowering companies of all sizes to gain lasting control over their complete worldwide communications environment through the effective management of their voice, mobile and wireless, data and converged communications spend. For more information, visit

Avotus Corporation is a registered trademark and Avotus Intelligent Communications Management and Avotus WebAuction are trademarks of Avotus Corporation. All other trademarks are the property of their respective owners.

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