New Computer System

MEMORANDUM

DATE: November 10, 2003

TO: Mr. Bauer, Acme Industries Manager

FROM:

SUBJECT: New Computer System Proposal

Issue:

In light of rapid technological advances on the computer systems as well as our competitors trying to gain an edge in the business world, should we replace the CPU ("Central Processing Unit") 486 computer system with the one that is already in line with the most sophisticated computers being used by businesses nowadays?

Background and Analysis:

Currently, the only computer we have is the CPU 486 computer system that primarily runs on DOS ("Disk Operating System"). It does not have an e-mail system or have access to the internet service. It does however have a word processor, which we use it for creating letters, memos, labels, etc. This type of computer is considered obsolete by today's standards. In order for us to remain competitive and stay profitable, we must replace it with the one that meets our needs. We need to have updated version of word processor that is commonly used by businesses personnel and customers alike. We also need to have spreadsheets, database, presentation materials, as well. And, the last but not the least importance to have are the e-mail system and the internet service. Most successful businesses have already begun using advanced e-mail system and high speed internet access. We cannot afford to stay behind in technology, watch our competitors take away our clients and let our profitability shrink.

Not only do we have to keep up with the most current computer technology but we have to look ahead to maximize our growth. It is imperative that, in the near future, we must establish a network of computers in our business. In that case, we anticipate that, with projected growth in revenue, several more workers will be needed to ease our workload and maintain a better sense of productivity. That being said, we will need to operate a multi-tasking e-mail system running through a main server. In addition, we will have to obtain and utilize a T-1 internet service, which is costly but has a faster download and upload speed than any one of the internet service used by home consumers: dial-up phone internet server, cable internet server, satellite internet service and DSL ("Digital Subscriber Line") service.

Hardware and Software Requirements:

Realizing that most businesses are performing at a very high rate by utilizing the top-of-the-line computer system, we need to have the following minimum hardware and software requirements to stay abreast of the competition:

Ð'* Processor: 2.4 Gigahertz ("GHz") or better

Ð'* Operating System: MicrosoftÐ'® WindowsÐ'® Professional Edition or better

Ð'* Application Software: MicrosoftÐ'® Word Processor, MicrosoftÐ'® Excel Spreadsheets, MicrosoftÐ'® Internet Explorer, Universal E-mail system

Ð'* AntiVirus Software: Norton AntivirusÐ'® or McAfee internet security or McAfee Virus Scan

Ð'* Memory: 256 Megabytes ("MB") or higher

Ð'* Hard (Storage) Drive: 40 Gigabytes ("GB") or higher

Ð'* Drive Bay Options: CD-ROM drive, DVD-ROM drive or CD-RW/DVD combo drive

Ð'* Video Graphics Card: 64 Megabytes dynamic video graphics memory card or better

Ð'* External Ports: USB ports, parallel port, serial port, PS/2-style keyboard port, PS/2-compatible mouse port, headphone jack, telephone/fax jack, external modem jack

Ð'* Monitor: 17" Color Monitor (15.9" viewable area or better)

Ð'* Keyboard: Standard 104+ keyboard or multi-media keyboard or wireless keyboard

Ð'* Mouse: Optical Wheel Mouse, 2-button scroll mouse or wireless optical mouse

Ð'* Sound System: Integrated enhanced audio or optimal audio system

Ð'* Speaker System: 2-piece speaker solution

Ð'* Modem: 56K PCI data/fax modem

Ð'* Network Adapter Card: Integrated IntelÐ'® 10/100 Ethernet Adapter or better

Ð'* High Speed Internet Service: DSL or T-1 Server

Ð'* Printer: All-in-one laser printer or better

Product Comparisons:

Given the fact that Dell and Gateway Country Store are the two leading corporations selling computers, they are distinct as far as marketing them as well as customizing them in order to meet the consumers' needs. Following is the product information that we may be purchasing:

GATEWAYÐ'® Desktop 310XL

DELLÐ'™ Desktop DimensionÐ'® 4600

Technical Specifications

Operating System

MicrosoftÐ'® WindowsÐ'® XP Home Edition

Processor

IntelÐ'® PentiumÐ'® 4 Processor 2.6GHz

Memory

256MB DDR SDRAM

Storage5

40GB Ultra ATA100 5400rpm hard drive

Media Drives

16x/48x DVD-ROM drive and 48x/24x/48x CD-RW

Graphics & Monitor

17" Color Monitor (15.9" viewable area)

Integrated IntelÐ'® Extreme Graphics with up to 64MB dynamic video memory

Audio & Speakers

Integrated Enhanced Audio

2-piece speaker solution

Modem

56K