logovaike3.jpg (14889 bytes)

 

 

 

 

Bytelogics Inc
 
 
 
Business Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The date of this Memorandum is September 15, 2001

 
 

 

This Information Memorandum contains confidential, protected and proprietary information belonging exclusively to Bytelogics, Inc.


CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM

BYTELOGICS, INC.

A Private Placement Offering Of [$2,000,000]

 

 

This Confidential Private Placement Memorandum (this "Memorandum") relates to the offering (this "Offering") of shares (the "Shares") of Bytelogics, Inc., a Delaware corporation (the “Company”). There is no public market for the Shares, and no such market will develop as a result of this Offering. The Shares offered hereby have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities act and, unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable state securities laws. Accordingly, the Shares offered hereby are being offered and sold only to a limited number of Accredited Investors (as defined in Rule 501 (a) under the Securities Act). Each purchaser of the Shares offered hereby will be required to execute a Subscription Agreement (as defined herein), the form of which is available upon request to Accredited Investors.  The minimum investment by an investor is $25,000, unless the investor receives the prior written consent of the Company.  Subscriptions for fractional Shares will not be accepted. See "Plan of Distribution and Terms of the Offering."  The Company anticipates incurring fees or expenses in connection with the Offering of approximately $50,000.

 

 

 

AN INVESTMENT IN THE SHARES INVOLVES A HIGH DEGREE OF RISK.  ONLY PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT SHOULD PURCHASE THE SHARES.  EACH PROSPECTIVE INVESTOR SHOULD CAREFULLY CONSIDER THE RISKS AND SPECULATIVE FACTORS AFFECTING THE BUSINESS OF THE COMPANY PRIOR TO MAKING ANY INVESTMENT IN THE SHARES.

 

SEE "RISK FACTORS" FOR A DISCUSSION OF CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED IN EVALUATING AN INVESTMENT IN THE SHARES.

 

 

 

 

 

 

 

 

 

 

 

 

 


 

THIS MEMORANDUM SUPERSEDES IN ALL RESPECTS ANY AND ALL INFORMATION (WHETHER WRITTEN OR ORAL) WHICH MAY HAVE BEEN PREVIOUSLY PROVIDED TO AN OFFEREE OR AN OFFEREE'S PURCHASER REPRESENTATIVE OR ANY OTHER PERSON. THE COMPANY AND ITS AFFILIATES EXPRESSLY DISCLAIM ANY RESPONSIBILITY FOR ANY SUCH PREVIOUSLY PROVIDED INFORMATION AND SUCH INFORMATION SHOULD NOT BE RELIED UPON. OFFEREES SHOULD ONLY RELY UPON INFORMATION PROVIDED HEREIN.

 

THE OFFERING WILL NOT BE CONSUMMATED IF ALL OF THE CONDITIONS PRECEDENT TO THE OFFERING SET FORTH IN THE SUBSCRIPTION AGREEMENT, A FORM OF WHICH IS AVAILABLE UPON REQUEST TO ACCREDITED INVESTORS, ARE NOT SATISFIED OR WAIVED. For a more detailed discussion of the conditions precedent to the Offering, see "Plan of Distribution and Terms of Offering."

 

A subscription for the Shares offered hereby will be subject to the provisions of a subscription agreement

(the “Subscription Agreement”) to be entered into by the Company and the purchasers of the Shares, which contains certain representations, warranties, terms and conditions. Any decision with respect to an investment in the Shares should be made only after a careful review of the Subscription Agreement.

 

THE SHARES OFFERED HEREBY ARE BEING OFFERED TO A LIMITED NUMBER OF ACCREDITED INVESTORS. THE SHARES ARE OFFERED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER SECTION 4(2) OF THE SECURITIES ACT AND IN COMPLIANCE WITH RULES 502 AND 506 PROMULGATED THEREUNDER. THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR APPROVED, DISAPPROVED, RECOMMENDED OR ENDORSED BY THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”), THE OFFICE OF THE COMPTROLLER OF THE CURRENCY (THE "OCC"), THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE "FDIC"), ANY STATE SECURITIES COMMISSION, OR ANY OTHER REGULATORY AGENCY, NOR HAVE THE COMMISSION, THE OCC, THE FDIC, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AGENCY PASSED UPON THE ACCURACY, COMPLETENESS OR ADEQUACY OF THIS MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL AND A CRIMINAL OFFENSE. THE SHARES ARE NOT SAVINGS ACCOUNTS OR DEPOSITS AND ARE NOT INSURED BY THE FDIC, ANY OTHER GOVERNMENTAL AGENCY OR OTHERWISE AND ARE NOT SECURED BY ANY COLLATERAL.

 

AS A PURCHASER OF SHARES IN A PRIVATE PLACEMENT NOT REGISTERED UNDER THE SECURITIES ACT, THE PURCHASER OF THE SHARES OFFERED HEREBY MAY NOT SELL, TRANSFER OR OTHERWISE DISPOSE OF SUCH SHARES UNLESS SUCH SHARES ARE REGISTERED OR UNLESS SUCH TRANSFER OR DISPOSITION IS PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT. IN ADDITION, ANY SALE, TRANSFER OR OTHER DISPOSITION MUST COMPLY WITH ALL RELEVANT STATE SECURITIES LAWS.

 

THERE IS NO MARKET FOR THE SHARES OFFERED HEREBY AND THERE IS NO ASSURANCE THAT ANY MARKET WILL DEVELOP. THEREFORE, AN OFFEREE SHOULD BE ABLE TO BEAR THE ECONOMIC RISK OF AN INVESTMENT IN THE SHARES INDEFINITELY. IN MAKING AN INVESTMENT DECISION, OFFEREES MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED.

 

THIS MEMORANDUM CONSTITUTES AN OFFER ONLY IF IT IS DELIVERED TO AN OFFEREE BY THE COMPANY. THE OFFEREE, BY ACCEPTING DELIVERY OF THIS MEMORANDUM, AGREES TO RETURN THE MEMORANDUM AND ALL ENCLOSED DOCUMENTS TO THE COMPANY IF (1) SUCH OFFEREE DECIDES NOT TO PURCHASE ANY OF THE SHARES OFFERED HEREBY, (2) THE COMPANY REJECTS SUCH OFFEREE'S SUBSCRIPTION IN WHOLE, OR (3) THE OFFERING IS TERMI­NATED OR ABANDONED. THE OFFEREE FURTHER AGREES TO KEEP INFORMATION RELATING TO THE SHARES OFFERED HEREBY AND THE COMPANY CONFIDENTIAL. IN CONNECTION THEREWITH, THE OFFEREE SHALL NOT, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY, PHOTOCOPY OR REPRODUCE THIS MEMORANDUM, IN WHOLE OR IN PART, OR USE THIS MEMORANDUM FOR ANY PURPOSE OTHER THAN IN CONNECTION WITH CONSIDERATION OF A PURCHASE OF THE SHARES OR DISTRIBUTE THIS MEMORANDUM TO OR DISCUSS THIS MEMORANDUM WITH PERSONS OTHER THAN THE AUTHORIZED AGENTS OR AFFILIATES OF THE OFFEREE.

 

THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF

AN OFFER TO PURCHASE THE SHARES IN ANY STATE OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION TO ANY MEMBER OF THE GENERAL PUBLIC. ANY REPRODUCTION OR DISTRIBUTION OF THIS MEMORANDUM IN WHOLE, OR IN PART, OR THE DIVULGENCE OF ANY OF ITS CONTENTS OTHER THAN TO THE OFFEREE'S PURCHASER REPRESENTATIVE, IF ANY, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY, IS PROHIBITED.

 

THE SHARES ARE OFFERED BY THE COMPANY SUBJECT TO RECEIPT AND ACCEPTANCE OF SUBSCRIPTIONS. THE COMPANY HAS THE SOLE AND ABSOLUTE RIGHT TO REJECT ANY SUBSCRIPTION IN WHOLE OR IN PART OR TO WITHDRAW, CANCEL OR MODIFY THE OFFERING. NO SUBSCRIPTION IS BINDING UNTIL ACCEPTED BY THE COMPANY.

 

DURING THE COURSE OF THE OFFERING AND PRIOR TO INVESTMENT, EACH OFFEREE AND HIS PURCHASER REPRESENTATIVE(S), IF ANY, ARE INVITED TO ASK QUESTIONS OF AND OBTAIN ADDITIONAL INFORMATION FROM THE COMPANY CONCERNING THE TERMS AND CONDITIONS OF THE OFFERING, THE COMPANY AND ANY OTHER RELEVANT MATTERS, INCLUDING, BUT NOT LIMITED TO, ADDITIONAL INFORMATION TO VERIFY THE ACCURACY OF THE INFORMATION SET FORTH IN THIS MEMORANDUM. ANY SUCH QUESTIONS OR REQUESTS FOR ADDITIONAL INFORMATION SHOULD BE DIRECTED TO THE COMPANY. THE COMPANY WILL PROVIDE SUCH INFORMATION TO THE EXTENT IT POSSESSES OR CAN ACQUIRE SUCH INFORMATION WITHOUT UNREASONABLE EFFORT OR EXPENSE. ONLY THE COMPANY MAY GIVE ANSWERS TO QUESTIONS AND ADDITIONAL INFORMATION. INFORMATION, REPRESENTATIONS OR WARRANTIES RECEIVED FROM ANY OTHER PERSON, OR IN ANY OTHER MANNER, MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY. IN ADDITION, NOTHING CONTAINED IN THIS MEMORANDUM IS, OR SHALL BE RELIED UPON AS, A PROMISE OR REPRESENTATION BY THE COMPANY AS TO THE FUTURE RESULTS OF THE COMPANY.

 

NO OFFERING LITERATURE OR ADVERTISEMENT IN WHATEVER FORM SHALL BE EMPLOYED IN THE OFFERING OF THE SHARES OTHER THAN THIS MEMORANDUM AND SUCH OTHER MATERIALS AS THE COMPANY MAY PROVIDE AS CONTEMPLATED HEREIN.

 

PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS OFFERING MEMORANDUM AS INVESTMENT, LEGAL OR TAX ADVICE. EACH INVESTOR SHOULD CONSULT ITS OWN COUNSEL, ACCOUNTANT AND OTHER ADVISORS AS TO THE LEGAL, TAX, BUSINESS AND FINANCIAL ASPECTS OF A PURCHASE OF THE SHARES. THE COMPANY IS NOT MAKING ANY REPRESENTATION TO ANY OFFEREE OR PURCHASER OF THE SHARES REGARDING THE LEGALITY OF AN INVESTMENT THEREIN BY SUCH OFFEREE OR PURCHASER. IN MAKING AN INVESTMENT DECISION REGARDING THE SHARES OFFERED HEREBY, PROSPECTIVE INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE OFFERING IS BEING MADE ON THE BASIS OF THIS OFFERING MEMORANDUM. ANY DECISION TO INVEST IN THE OFFERING MUST BE BASED ON THE INFORMATION CONTAINED HEREIN. EACH PROSPECTIVE PURCHASER OF THE SHARES MUST COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN FORCE IN ANY JURISDICTION IN WHICH IT PURCHASES, OFFERS OR SELLS THE SHARES OR POSSESSES OR DISTRIBUTES THIS OFFERING MEMORANDUM AND MUST OBTAIN ANY CONSENT, APPROVAL OR PERMISSION REQUIRED BY IT FOR THE PURCHASE, OFFER OR SALE BY IT OF THE SHARES UNDER THE LAWS AND REGULATIONS IN FORCE IN ANY JURISDICTION TO WHICH IT IS SUBJECT OR IN WHICH IT MAKES SUCH PURCHASES, OFFERS OR SALES.

 

 

 

Reports to Investors

 

The Company intends to provide to investors unaudited quarterly reports and an annual report containing financial information that has been examined and reported upon, with an opinion expressed by an independent, certified public accountant.

 

Forward-Looking Statements

 

Information contained or incorporated by reference in this Memorandum may contain “forward‑looking statements,” which can be identified by the use of forward‑looking terminology such as "may," "will," "expect," "intend," “believe,” "anticipate," "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology. The matters described in "Risk Factors" and certain other factors noted throughout this Memorandum and in any exhibits to this Memorandum constitute cautionary statements identifying important factors with respect to any such forward‑looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from those in such forward‑looking statements.  Such forward‑looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward‑looking statements. Such risks, uncertainties and other important factors include, among others: regional and national economic and business conditions; industry trends; competition; changes in levels of market interest rates; credit risks of lending activities; changes in business strategy or development plans; availability, terms and deployment of capital; availability of qualified personnel; changes in, or the failure or inability to comply with, government regulations; and other factors referenced in this Memorandum. These forward-­looking statements speak only as of the date of this Memorandum. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward‑looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. These and other factors could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from those anticipated or projected.

 

 

 


PRIVATE PLACEMENT MEMORANDUM

 

This Memorandum supersedes in all respects any and all information (whether written or oral) which may have been previously provided to a prospective investor or an investor's purchaser representative or any other person. Prospective investors should rely only upon the information provided herein. Unless the context otherwise requires, reference herein to the "Company" is Bytelogics, Inc. a Delaware corporation.

 

Information contained or incorporated by reference in this Memorandum may contain “forward‑looking statements,” which can be identified by the use of forward‑looking terminology such as "may," "will," "expect," "intend," “believe,” "anticipate," "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology. The matters described in "Risk Factors" and certain other factors noted throughout this Memorandum and in any exhibits to this Memorandum constitute cautionary statements identifying important factors with respect to any such forward‑looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from those in such forward‑looking statements.

 

 


Executive Summary

 

Enterprises know their markets, strategies and business processes. Bytelogics, Inc. (“Bytelogics” or the “Company”) knows how to architect the web around that.

 

Bytelogics is a leading provider of e-commerce \services. The Company designs, develop, integrate and implement high quality, flexible information technology applications and eBusiness strategies for large enterprises. 

 

The company’s main product is Portfolix (www.portfolix.com) a unique high performance fixed income portfolio management system developed as a multidimensional cube on OLAP servers. This technology allows the cube to create any report and to drill into reports in real-time for portfolios exceeding $10bn, 1000 account and 100 000 different securities. It manages municipal bonds, taxable bonds, mortgages, treasuries, emerging market debt and any other custom security. It does so by leveraging the existing SQL relational databases in the Enterprise and builds proprietary cubes on top of that. The cubes utilize proprietary multidimensional calculation algorithms, including duration, rating distribution, portfolio tracking error, duration weighted yield and convexity. Portfolix can also allocate and create trades based on weight or duration input in a given sector. Trades are then automatically calculated based on a given criteria (proportional existing weight in a sector for example).

 

In addition Bytelogics provides consulting services at the best possible values. By using very qualified American and East-European programmers in the New York area, Bytelogics is able to better sell its software and keep a consistent revenue base. Our consultants utilize proven proprietary technologies from companies like Oracle, IBM and Sun, cutting edge enterprise technology from Microsoft and reliable open source solutions customized from GNU, Linux and Java communities. By using standard third party components, East European offshore development centers and extremely experienced local architects the Company is able to provide Fortune 500 companies with leading edge open and maintainable enterprise e-commerce systems with a fraction of the cost.

 

Finally Bytelogics has an OLAP based eCommerce module SQLSite that allows websites to be created from normalized database schemas. We believe that the SQLSite is the most flexible database based module available. Its OLAP based module is the only off-the-shelf component available today that allows “people who bought this also bought this” type of web pages in IFRAME-s, meaning that any existing webpage can incorporate it without changing any of their server architecture, either as an ASP service from Bytelogics or as a separate server in-house. This provides extreme reliability and security, as the main servers are shielded from the SQLSite database if necessary.

 

The Company has so far sold its products and performed professional services to over 20 clients, including Goldman Sachs, Morgan Stanley, S & P, Alliance Capital and several other financial, spot market and wireless communication companies.

 

The market opportunity for Bytelogics is enormous, revenues generated from Internet commerce in 2002 will exceed $400 billion according to International Data Corporation, and at the same time there is an extreme shortage of e-commerce providers for the existing brick and mortar businesses. Bytelogics has been growing rapidly to fill that vacuum. Competitors for the Bytelogics Portfolix product, like Blackrock, charge 1bp of assets value for a service that duplicates the functionality that normally exists already in a large money manager, without providing the advanced risk management services.

 

Bytelogics has built a comprehensive diversified revenue structure and experienced management team with over 60 years of combined development experience. Its revenue sources range from standard parts and labor services to application service provider (ASP) arrangements. This business model will allow maximum flexibility allowing us to target the broadest audience possible.

 

 

Company History

 

Keith Siilats and Jurgen Kaljuvee, Andri Kruus and David Montoya, who having spent years working in the software industries, realized the benefits that an integrated full service development firm can offer, restructured Bytelogics to its current form in May 2000 to be a full-service enterprise development solution. Bytelogics started out as an outsourcing company for consultants in 1995 and it still has a significant number of consultants outsourced. More importantly, Bytelogics realized the common problems that both buy side and sell side financial institutions were having and developed powerful off-the-shelf products to cater for the common problems. In its current stage Bytelogics has finished the development for a buy-side firm solution (www.portfolix.com) and needs to expand its sales and support force to sell the system to at least 30% of the large money managers.

              

 

Keith Siilats has worked in Goldman Sachs and Alliance Capital among others, is lecturing in Courant Institute of Mathematics, NYU on multidimensional databases and is completing a PhD in Finance on Market Microstructures from Stern Business School, NYU. He is the author of Portfolix and brings the software and financial experience to the company.

 

Andri and Jurgen have been providing software development and outsourcing to leading .com and financial institutions with an offshore development center services in East Europe. Andri leads the SQLSite development effort, having created credit-card processing and wireless modules. Jurgen is in charge of the sales and marketing, and having a math degree from Harvard, focuses on larger system architecture, Java, XML and open source technologies.

 

David Montoya brings in Venture Capital expertise.

 

 

 

 

Milestones Achieved to Date

 

  1. Successful completion of initial e-commerce ventures for Standard and Poors, Goldman Sachs, rightfreight.com and others.
  2. Completion of Portfolix – the fixed income portfolio management software and sale to two clients.
  3. Integration of offshore development center in Estonia to Bytelogics providing growth for up to 40 extra programmers and a source for consultants who fly over to work in New York.
  4. Recruiting of experienced management board, including CTO, CFO, Director of Offshore development, Director of wireless services and Director of Sales and Marketing.
  5. Hiring of Venture Capital Firm to represent Bytelogics in financing negotiations

 

 

Software Services Market

 

The emergence and acceptance of the Internet has Company mentally changed the way that consumers and businesses communicate, obtain information, purchase goods and services and transact business. International Data Corporation, or IDC, estimates that the number of Internet users worldwide will grow from approximately 70 million in 1997 to 320 million in 2002 and that revenues generated from Internet commerce in 2002 will exceed $400 billion. The Internet has emerged as a Company mentality opportunity to transform the way business is conducted, joining the telephone, paper-based communication and face-to-face interaction as one of the primary means of doing business.

 

Initially, companies used the Internet as a means of advertising or promoting their businesses. Typically they published websites with “read only,” brochure-like information that was intended to enhance internal and external communications. Companies either used their own internal design and information technology resources or hired online advertising agencies and web design firms to develop and deploy their initial websites.

 

Businesses quickly recognized the Internet’s potential, beyond “brochure-ware,” to enhance their ability to attract and serve clients. The next stage in the adoption of the Internet as a business medium typically involved the construction of systems that enabled limited types of transactions to be conducted over the Internet or that focused on improvements in procurement and distribution. At this stage, companies generally viewed the Internet primarily as another channel or adjunct to their core business. In order to build these sorts of electronic business systems, companies were required to shift their focus from simple web design to the integration of client/server applications with those systems. As internal information technology, or IT, departments often lacked the resources or capabilities to build these systems, firms increasingly began to hire traditional IT services firms focused on the integration of client/server systems to complement the services of web design firms.

 

Pressure from competition, deregulation and technological innovation is accelerating the rate of change in business. Large organizations must adapt to these changes as well as improve service, lower costs, reduce cycle times, and increase value to customers. A key to achieving these objectives is improving the processes and the underlying business information systems by which organizations operate and deliver their products and services.

 

Today, many companies are recognizing that the Internet offers even greater potential for enhancing or defending competitive positions. These companies understand that the Internet is not simply going to play an ancillary role in business, but is going to redefine the key determinants of business success and the way business is conducted.

 

This understanding has led to the emergence of a new business model, known as eBusiness. eBusiness combines the reach and efficiency of the Internet with both emerging and existing technologies to enable companies to strengthen relationships with customers and business partners, create new revenue opportunities, reduce costs, improve operating efficiencies, shorten cycle times and improve communications. In short, eBusiness extends beyond the Internet and represents a means to improve a company’s competitive position through the development of innovative business strategies enabled by the integration of emerging and existing technologies.

 

The emergence of eBusiness is significant for virtually all companies regardless of industry or location. In many industries, physical or capital assets are becoming less important as barriers to entry. The increasingly interconnected world, in which the Internet and other technologies create the potential to link any communication device to any other, is reducing the effect of geographic barriers, providing access to the best prices worldwide and challenging the way many businesses have historically competed.

 

Competition can come from new, unexpected sources, in addition to traditional ones. The ability to differentiate products or services and to price advantageously is greatly reduced as the consumer is given more information, choice and power. In light of all of these factors, many new and established companies are rethinking, expanding or creating their businesses to integrate eBusiness capabilities. They are doing so with the recognition that establishing and maintaining customer relationships are increasingly important to success. In addition, as the advantage of being a first mover becomes increasingly clear, new and existing businesses are eager to establish eBusinesses in rapid timeframes, with cost being a secondary consideration. Thus, a continued focus on rapid innovation will be critical as more eBusinesses emerge and the nature of competition continues to evolve.

In order to develop and implement a successful eBusiness capability in the required timeframe, companies are increasingly hiring outside service providers to augment internal resources.

 

However, many companies find that existing service providers, such as web design firms and traditional IT service firms, are not well suited to address the broad range of challenges posed by eBusiness. Web design firms typically focus on user interfaces and front-end design and do not offer a broad scope of expertise for rapid development and deployment of innovative eBusiness systems and capabilities. Traditional IT service firms typically have been focused primarily on legacy systems enhancements, Year 2000 compliance and the implementation of traditional business applications. Their methodology for delivery is focused on client/server application development, which is not conducive to short development cycles and methods required for eBusiness. Hence, they have not cultivated the skills necessary to design and implement eBusiness systems in a timeframe consistent with market requirements.

 

Companies that are seeking to build or enhance their eBusiness capabilities require a professional service provider that has developed a broad range of integrated capabilities. Such a service provider must provide strategic industry insights combined with extensive technological skills to design and create infrastructure, applications and business systems that are reliable, robust, secure, scalable and extensible. Moreover, it must have a structured approach and the skills necessary to achieve the rapid innovation and deployment of eBusinesses. Such a services firm must be able to understand and integrate a wide spectrum of emerging technologies and existing systems.

 

However, the existing e-business integrators have relied too much on internal, homegrown approach methods and software components. These have often tied the clients to the particular solution and have over time proven to be prohibitively expensive. However, companies like Sun Microsystems, IBM, Oracle and Microsoft have each created extremely powerful enterprise software which can be applied to almost any business to “e-enable” them.

 

 In short, Bytelogics believes that there is a growing need for a new category of e-commerce integration services targeted for assembling the existing knowledge into more effective and modern forms, creating new solutions from the existing knowledge and empowering strong businesses with viable, proven business models to strive in the Internet era.

 

 

Portfolio management software Market

 

Most large portfolio managers today rely on a solution consisting of a SQL database (Access, Oracle, Sybase, IBM DB2, Informix or Microsoft SQL server) with data feeds coming in over night and reports being run daily and printed out on paper.

Companies like Alliance Capital are spending in excess of $100m dollars per year on MIS department salaries. Most of this money goes to maintaining the existing reports for portfolio managers and creating new ones. As the report generation in OLTP (SQL server based) systems is slow and one report can only be used for one purpose, more and more hardware is constantly needed.

 

In addition, portfolio managers will have to explain their coding requirements to MIS as the systems are too hard to program by portfolio managers themselves. This creates turnover times for 3 months on average for larger risk reports on the enterprise.

 

OLAP technology, a fast read only system meant for flexible report generation was introduced in 1995. However, it is immensely complicated to visualize the multidimensional nature inherent in OLAP cubes, and thus the MIS departments have been incabable of implementing OLAP servers.

 

Once implemented, however, portfolio managers can create their own reports, combining the dimensions they like into any report. As portfolio managers typically have more business knowledge, operating an OLAP based report poses no problem.

 

Bytelogics believes that what is needed is an intermediary with excellent specific business knowledge to help MIS departments implement an OLAP server with the standard calculations. As the case study on Alliance Capital highlights, MIS departments are very capable in maintaining and extending an OLAP based system once implemented. Also the senior portfolio managers are very able to generate custom reports in Excel Pivot tables themselves.

 

In short, Bytelogics believes that OLAP based systems can cut MIS costs in half and provide portfolio managers with instant real-time info on their portfolios.

 

Bytelogics Solution

 

Our Methodology

Because eBusiness requires knowledge that extends beyond the Internet, a broad range of integrated capabilities is required. Bytelogics believes that it has a set of integrated skills that enable its clients to create or enhance competitive eBusinesses in rapid timeframes. This skill set includes:

·         A broad range of integrated strategy and technology capabilities;

·         Strategic industry insight;

·         Extensive skill with both emerging and existing technologies;

·         Customer experience design expertise;

·         Back-end integration skills;

·         Networking and security expertise;

·         Remote systems management, release management, customer intelligence management and customer experience management;

·         A structured and integrated approach to client engagements;

·         Rapid deployment and execution capabilities; and

·         Knowledge management expertise.

 

Our Product

Our products Portfolix and SQLSite are unique in a sense that they are first enterprise scale products built and tested on Microsoft.NET framework on OLAP server. This allows:

 

 

What is different?

The Company believes that Internet and e-commerce will be essential for the survival of every corporation in the next decade. However, the Company is confident in the clients’ abilities to do business. There is nothing new in the new economy other than the process. Viable business ideas will remain viable. Thus the Company utilizes a standard set of proven e-commerce approaches and apply them to the knowledge base of our clients, maximizing the returns from both approaches. Our unique vendor independence approach allows us to use all of the clients existing resources making their use through Internet far more efficient and widespread.

 

The Company is not here to invent new business models; the Company is here to transform the existing ones to the web.

 

Additional business lines

Outsourcing services

Bytelogics is able to leverage its existing systems architecture expertise and provide enterprise customers with fully outsourced services. While there is often a highly specialized technical labor force available at clients site, most of the time they have not yet had the experience of designing Internet enabled systems. Bytelogics uses an industry standard approach to designing the systems and conveys the knowledge to the client in the implementation stage.

 

Offshore development services

Our expertise allows us to create modular design processes using UML modeling tools, design patterns and rapid application development. This allows us to move the more time intensive processes outside of US where the development costs are on average 70% cheaper.

 

IT Consulting services

The Company has a large pool of consultants available to assist clients after the deployment with additional features in New York and San Francisco area.

 

Strategic consulting services

The Company is able to provide strategic consulting services to specific segments of telecommunications and financial industries due to our extensive experience. In particular the Company often consults clients regarding wireless e-commerce strategies and real time exchange creation.

 

Staffing services

The Company use strong cross selling to leverage the existing COR Jobs staffing business. This allows us to earn revenue on the job placement and provide clients with extra staff they might require to maintain the new web-enabled systems.

 

 

Technology and architecture

 

Java with Enterprise API (JSP/Servlets/EJBs)

 

SQL Databases

 

XML/XSL

 

UML/Rational Rose/Design Patterns

 

C/C++

 

ASP/ActiveX/Visual Basic and other Microsoft technologies

 

HTML/DHTML/JavaScript website design

 

 

Revenue model

 

Fixed-Price and Fixed-Timeframe. 

Bytelogics often performs its services on a fixed-price, fixed-timeframe basis, which the Company believes aligns its objectives with those of its clients. It is often, however, prohibitively expensive for the clients. Enterprise license for Portfolix costs $100 000 with training, installation, and customization.

SQLSite licenses range from $5000-$25 000 depending on the amounts of consultant time used (the more consultant time, the cheaper).

 

Parts and labor.

Large part of our work is billed per hour. This allows maximum flexibility to incorporate additional features when the design cannot be finalized until first release. It also often results in far longer and profitable relationships for both parties than could have been envisioned in a Fixed Term contract.

Typical Portfolix support contracts are $100 000 - $150 0000 per year which includes custom development.

 

Application Service Provider

With the emergence of XML and distributed network systems the Company have increasingly been able to leverage our server farms and infrastructure support services to provide outsourcing to our clients. This often results in smaller initial costs to the client and more stable and long-term revenues for Bytelogics. The cost for an additional application client is normally marginal.           

 

 

 

Operations

 

Location in New York

 

Location in Palo Alto

 

Location in Estonia, East Europe:

 

 

Client List

 

Goldman Sachs

Sanford C. Bernstein & Co

Morgan Stanley Dean Witter

www.trademine.com

Standard & Poor's

www.rightfreight.com

www.mindspring.com

www.javu.com

www.trademine.com

www.therecruitingwizard.com

JP Morgan

www.estonia.gov.uk

www.stern.nyu.edu

 

 
 
 

Personnel Overview

 

 

Skills

Estonia

Palo Alto

New York

Java

4

2

13

EJB

2

1

8

JSP/JDBC

3

1

8

XML/XSL

3

1

7

SQL/OLAP

3

1

5

C/C++

2

1

6

Visual Basic

1

0

9

ASP

1

0

11

HTML/DHTML/JavaScript

7

1

7

 

 

Keith Siilats, Chief Technology Officer.  Keith earned his masters degrees at the age of 20 from Trinity College, Cambridge University, England and is currently enrolled in Stern Business School PhD program in Finance. He also teaches computer science courses in Courant institute of mathematics and has over ten years of programming experience in eight different programming languages.  Keith’s areas of expertise include object-oriented engineering, security, systems administration, OLAP and database administration. He has worked both as an employee and consultant for Goldman Sachs, Sanford Bernstein and Alliance Capital. Keith is a Sun Certified Java Programmer and Microsoft Certified Software Developer. 

 

  

 
 

Contact Info

 

Keith Siilats

Bytelogics Inc

366 W 52 St Suite 5b

New York, NY 10019

(646) 345 3758

keith@siilats.com

 

David S. Montoya

1010 Northern Blvd.

Suite 310

Great Neck, NY 11021

516-773-6200 (work)

516-773-6228 (fax)

 

 


About Estonia