Accelerate Your Client Solutions with IBM's Shared Revenue and Rental Software Propositions

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1 Accelerate Your Client Solutions with IBM's Shared Revenue and Rental Software Propositions Bob Sewell - Service Provider Sales Manager Chris Clancy - ASL Sales Specialist

2 The opportunity continues to grow exponentially Social Cloud Mobile Big Data Forrester expects the market for Social Business software to reach $6.4B by 2016 Forrester expects the cloud market to grow to $241B by % use a personal smartphone in their job today IDC expects the Big Data and Analytics to grow by 29% CAGR by IT shift

3 consumption

4 Marketplace of Change Consumption is Key. Finance are deciding early in the Clients thinking C levels considering Only as a Service On Prem to Off Prem.. Business Choice or Skills? Client s Client a new medium for Vendors Example - Department of Health New opportunities

5 New Business Opportunities in Cloud. Requires New Thinking ISVs want to offer their application as Managed Services; Software as a Service MSPs want to provide Platform as a Service to ISVs and Customers Application Managed Services: Provide Infrastructure/Platform as a service for applications Middleware Managed Services: Middleware solutions as a managed service to end customers Next decade will see cognitive computing join Data, Analytics and Insight together with Watson Watson has entered the market place as SaaS How is IBM adapting

6 Software Commercial Offerings How is IBM Adapting Programme Purpose Commercial Model Passport Advantage PA Channels Mission XSP Sis Mission PPA - Volume Distributed Licenses, Product based. Client owns license. Within Owners Enterprise. IBM Provides L1/2 Support PA Based Offering.. Whitelabel Products. Client owns license Within Owners Enterprise. IBM Provides L1/2 Support PPA - Volume Distributed Licenses, Product based. Client owns license. Perpetual Within Owners Rental Enterprise. (new) IBM Provides L1/2 Suppport Perpetual Application Specific Licence (Solutions) MSPs Mission Solution based, MSP Own licence. Outside of Owners Enterprise. MSP Provides L1/2 Support Perpetual Rental Profit Share (new) ASl

7 What Is ASL? An agreement under which partners: - Bundle IBM Software with their value-add products and services - Sell as a total solution to their end customers anywhere in the world* Primary target partner: Solution Partners Level 1 & 2 Support provided by the partner Restricted-Use License held by partner Known WW IBM SW price to the partner for the duration of contract The IBM SW components must be sold as part of total solution Contract types

8 ASL Contract Models Purchase Commit Standard Perpetual Offer or Partner makes revenue commitment. Provides highest discounts and most flexibility with Ts & Cs and overall pricing. Prices fixed for contract term. Benefits Fixed Cost, Price Advantage Monthly Rental SaaS / Cloud For partners seeking to build SaaS / Cloud offerings for their clients, and requiring monthly fixed term license ordering. Benefits Monthly in Arrears, Scale Up/Down, ASL Distributor Contract Agreement between IBM & Distributor. The distributor recruits ISVs, extends reach to smaller partners. Distributor offers Tier 2 ASL partners. Benefits - flexible credit, simple contracting, administration, education and support. % of Revenue Agree % of solution sale for the IBM software component. Remove licensing complexities. Benefits Minimum Start Up Costs ASL value

9 ASL value for both partners and end-customers Partner/MSP Value Improves profitability Known cost of the IBM SW for the duration of the contract Price to the partner is the same, no matter who the customer is, or where they are located in the world Accelerates sales cycle one seller, total solution Joint sales activities with IBM Target specific accounts to sell partners solution. Strengthens account control avoids involvement of competing middleware providers Speeds time to market and reduces development costs IBM developed middleware; partner can focus on their value-add End Customer Value Preference to buy total solution One contract. One solution One contact for sales, service, support Low cost of ownership, high performance and reliability out of the box

10 Steps to becoming an ASL Partner Join Partner World : 10

11 Questions?

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14 Questions for a potential partner to consider Do you want the middleware that supports your application to become an integral part of your application? Do you want to be able to present a single, bundled, price to your customers? Do you want a consistent price and know that price for at least one year or longer? Do you want to leverage the IBM brand for higher end clients? Do you want to generate revenue and profit on each sale for the middleware that your application drives? Do you want a single sales force talking to the customer rather than your reps and middleware reps from multiple companies? Do you want to provide a single point of contact for exceptional customer support after you sell your application to the client? Do you want to be invited and participate in IBM events with clients? Do you want to continue to buy from companies that compete with you or would you rather work with a company that supports you?

15 What It is: ASL vs Resell Distinctions Resell - PPA Application, Hardware or Services SOLUTION IBM Software ASL Application and Services SOLUTION IBM Software No pre-integration Separate buying decisions for partner solution and IBM SW Separate pricing to the client for the solution components No requirement IBM SW be sold as part of a solution Full use license License held by client Pricing varies by client s PPA level L1/L2 Support provided by IBM SWG Channels mission Integrated Bundle of partner s application (services) and IBM SW IBM Software may be visible One price to client for total solution IBM SW must be sold as part of solution License restricted to use within solution License held by partner Pricing to partner for contract duration L1/L2 Support provided by partner SWG Channels mission

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17 Application Specific Licensing PA Agreement Attachment for Service Providers (xsp) Software Value Plus Primary Support Provider IBM SaaS Solution Provider IBM Software Value Plus Part Numbers Used All FCT or PA products across all SWG Brands are eligible unless otherwise identified in OEM & ASL WW Pricing Guidelines. Includes Rational Services Revenue for Cloud Pay as you go and ICS Smart Cloud for Social Business. Monthly Rental uses "A" Part Numbers. Excludes System I, AAS, MLC. All PA products across all SWG Brands are eligible unless identified on the Excluded Products Exhibit or is a CEO Product Category. Specific product groups eligible for IBM SVP Support Provider Program: currently BA (Cognos, SPSS Enterprise and Statistics), IS (Filenet, EMM, B2B Integration, Smarter Cities, Websphere Commerce), IM (InfoSphere MDM Server, Information Server, Data Replication, Data Mgmt Server, Master Data Service, Optim, InfoSphere Gaurdium) Specific products: for example EMM (Digital Marketing Optimization (aka Coremetrics), IBM emessage, IBM Marketing Center, IBM B2B Service, IBM Transportation Management System, IBM Emptoris Specific products: for example Smart Cloud Social Business, Cast Iron, Blueworks Live, IBM Marketing Operations OnDemand, IBM Analytic Answers, IBM Algo Risk) How offerings differ Software Application Required (ASP) BM approved service (MSP) Term Agreement Fixed Discount for Term Monthly Rental with commit BP provides Level 1, 2 support No Software Application Required IBM approved solution (xsp) Perpetual Agreement RSVP based discount No Monthly Rental model BP provides Level 1, 2 support No Software Application Required IBM approved support capability Perpetual/Term Lic (where avail) RSVP based discount + PSP Adder No Monthly Rental model BP provides support to end users (e/u s) BP cannot aggregate across e/u s, nor reuse or move an entitlement from one e/u to another. If an existing PPA customer, the entitled e/u price is based on their PPA band. No Software Application Required IBM approved support capability Subscription Term Agreement Channel margin: Discount End User price: based on Tier Volume BP provides support to end users No Software Application Required IBM Software Value Plus Program Subscription Term Agreement Channel margin: Discount + Instant Rebate + VAD back end Rebate End User price: based on Tier Volume IBM provides support to end users Contact Robert Getchell/Waltham/IBM Ray Sutherland/Somers/IBM jpana@us.ibm.com Chuck Linton/Austin/IBM & Michael Doris/Ottawa/IBM Mark Holmes/UK/IBM & Steve Cutignola/White Plains/IBM Steve Cutignola/White Plains/IBM & Barbara Klotz/Fort Wayne/IBM

18 Business Partner Type & Objective Application Specific Licensing Application Service Provider (ASP) or Managed Service Provider (MSP); Bundle IBM software with approved Solution. Provide access to the Solution via Internet, cloud or private network. PA Agreement Attachment for Service Providers (xsp) Service Provider (xsp); Use IBM software to provide commercial hosting or other IT services to third parties. Provide access to the Solution via Internet, cloud or private network. Software Value Plus Primary Support Provider Primary Support Provider; Use IBM license software to build custom client solutions. Provide access to the Solution via Internet, cloud or private network. IBM SaaS Solution Provider Solution Provider for IBM SaaS; Offer IBM SaaS offering as part of portfolio. Provide access to the Solution via IBM hosted Smart Cloud or Smart Cloud Enterprise. IBM Software Value Plus VAR or Solution Provider; Remarket IBM SaaS Offerings. Provide access to the Solution via IBM hosted Smart Cloud or Smart Cloud Enterprise. Hosted By Business Partner By Business Partner By Business Partner By IBM By IBM Co-Sell No. Autonomous sale. Yes or autonomous. Yes or autonomous. Yes or autonomous. Yes or autonomous. Contract Model ASL Base Agreement with Purchase Commit or Monthly Rental Transaction Document Passport Advantage Agreement with Attachment for Service Providers (xsp) Software Value Plus BPA with Primary Support Provider attachment / BP hosted SaaS IBM Solution Provider for IBM SaaS BPA Software Value Plus BPA Sold by ASL Rep, Cross Brand BPM BP SPR, Cross Brand BPM BP SPR, Cross Brand BPM BP SPR, Cross Brand BPM BP SPR, Cross Brand BPM Channel Code K J ( when VAD) & M (when direct) G G J (when VAD) & H (when Direct) Rev Type Transactional Transactional Transactional Services Services How Paid Perpetual & MR 330/0100; SaaS/Fixed Term License 332 paid via manual 2x ACV adj Perpetual 330/0100; SaaS/Fixed Term License 332 paid via manual 2x ACV adj Perpetual 330/0100; Fixed Term License 332 paid via manual 2x ACV adj SaaS 362 paid via manual 2x ACV adj SaaS 362 paid via manual 2x ACV adj For new and extension signings, all manual 2x ACV Adjustments are processed as Commissionable revenue two months following signing; Contacts listed on slide 4 FREV Paid Launch Launch Landing BP entitlement is linked to the end user. ICN is manually entered into SAP at the time of order. Multi customer: Launch Single customer: Launch & Landing Landing Sellers Paid For SaaS /FTL: Software Client Leader (SCL), Brand/Specialty sellers, S&D Client Teams and S&D Telecoverage teams; SaaS is considered services and the SW GB BP Uplift and Blue revenue credit do not apply

19 Service Provider Discussion points 2014 IBM Software Capabilities Need Capabilities Need Capabilities Turn information into insights Deepen engagement with customers, partners and employees Business Analytics Data Management Big Data Data Warehousing Enterprise Content Management Information Integration and Governance Social Collaboration Unified Communications Web Experience Talent and Workforce Management Commerce Procurement Enterprise Marketing Management Smarter City Operations Deliver enterprise mobility Accelerate product and service innovation Optimize IT and business infrastructure Mobile Development and Connectivity Mobile Insights and Analytics Mobile Management and Security Application Lifecycle Management Complex and Embedded Systems Enterprise Modernization Cloud and IT Optimization Asset and Facilities Management Enterprise Endpoint Management Expert Integrated Systems Enable the agile business Business Process Management Connectivity, Integration and Service-Oriented Architecture Application Infrastructure Manage risk, security and compliance Identity and Access Management Data Protection Application Security Infrastructure Protection Security Intelligence and Compliance Analytics