Making money with IBM-hosted SaaS: How to work your SaaS Referral & SSP Deals

Making money with IBM-hosted SaaS: How to work your SaaS Referral & SSP Deals December 3, 2014 North America Industry Solutions Business Partner Activation 1 IIBM Internal Use Only

Objective of this Training To equip you with important tips and best practices for working your SaaS Incentive and SaaS Solution Provider deals How to register your leads and engage with IBM for success IBM s role and Partner's role throughout the sales cycle Understanding the Quoting and Ordering process How you get paid 2 IIBM Internal Use Only

SaaS Referral Incentive 3 IIBM Internal Use Only

What is the SaaS Referral Incentive? It s our referral and influence program Transactions are direct to IBM, BP does not close on their paper BP uncovers the lead and Recommends IBM solution to your customer Registers the lead with IBM Pairs up with the IBM seller to close the opportunity IBM seller submits it as a Direct deal Incentive fees for Qualifying Claims: 15% on new SaaS Subscription (paid annually); 5% when your value-add influences the customer renewals 15% on Upselling new subscription parts 4 IIBM Internal Use Only

SaaS Referral Exceptions to be aware of: 1. As always, we aren t able to use an incentive program for selling to Public Sector customers Government accounts (country, state, local, etc) Corporation, educational institution or other entity that is owned or controlled by, or subject to the procurement regulations of Government Any prime contractor who holds a contract with an entity of the above If you are selling to one of the above, use SSP! FYI, the following entities are not considered Public Sector End Users! privately-owned and controlled Utility companies, hospitals and Research Institutes that operate using non-government funds. 2. The maximum payout per claim is $150K 5 IIBM Internal Use Only

SaaS Referral Incentive Process: 1. Your company must first be an approved SaaS Referral Partner before you can register an opportunity. Click here to apply or to access the Referral Incentive Portal. 2. Opportunity must be registered in the Referral Incentive Portal at least 15 days prior to deal closing Notify your Business Partner Rep/Channel Sales Leader (aka: BPR ). They will locate and introduce you to the correct IBM sales rep If your company uses GPP, also enter the opportunity into GPP. The reason to do so is that it will generate a new SalesConnect record. In the GPP Notes Field, please mention the referral registration ID # that was assigned to you. 3. The IBM rep will create the quote and process the end customer s order 4. Be sure to demonstrate and document your value-add throughout the sales process. It is key that you influence the sale, not simply pass the lead. 5. Return to the SaaS Incentive Portal to submit your claim for payment after the sale, but no later than 60 days after the deal closes (www.saasincentive.com) 6 IIBM Internal Use Only

The Referral Incentive Portal 7 IIBM Internal Use Only

Providing the right supporting documentation for your SaaS Referral Claims As part of the Claim Process, you will be asked to submit your eligible sales documentation. Eligible sales documentation must clearly show your involvement in the sales cycle and your actions that convinced the end user customer to acquire the IBM SaaS solution. The documentation must have enough specificity to show that the BP addressed the end-users unique environment and situation. Please take a moment to carefully review the Speakers Notes below, as well as the Operations Guide to ensure your understanding of what is/isn t acceptable documentation. Ask questions during the sales cycle if you are in doubt.we want you to be a huge success! 8 IIBM Internal Use Only

Tips to avoid denial of SaaS Referral Incentive payment The client either needs to be a new IBM SaaS client OR be an existing client who is renewing and/or acquiring more capacity where your BP company referred the original business (and your initial claim being approved) Submit your lead at least 15 calendar days before the IBM Sales Order Date. Submit your claim no more than 60-days after the IBM Sales Order Date. Opportunity registrations will expire after 180 calendar days. You can request extension. Claims for SaaS renewals or upsells require evidence of value-add activity within the 1 st six months of the original provision date of the SaaS service. Claim will be rejected if BP fails to provide satisfactory sales documentation within 60 days of the additional documentation being requested. Be sure to ensure that your required Sales Mastery Certifications are revalidated every year! 9 IIBM Internal Use Only

For additional information. Click here: SaaS Referral Operations Guide https://www.ibm.com/partnerworld /wps/servlet/redirectservlet?cmsid= swg_ast_sfw_referral-incentive-saassoftware&attachmentname=ibm_ref erral_incentive_for_saas_and_softw are_business_operations_guide_v_2. 5_august_2014_post.doc Ask your BPR Ask IBM Channel Management 10 IIBM Internal Use Only

SaaS Solution Provider (SSP) 11 IIBM Internal Use Only

What is unique about SaaS Solution Provider (SSP)? SSP is IBM s program for becoming a solution provider of IBM-Hosted SaaS products. Companies who wish to remarket/resell IBM-hosted SaaS offerings should enroll in this program. SSP is a direct tier-1 relationship between the BP and IBM. (Note: There is no VAD involved in this model, and therefore, VADs cannot quote SSP deals). Only an IBM Rep can quote SSP deals for the BP. Business Partners become SSP Authorized for the specific product that they wish to sell (ie: there is no such thing as an EMM Authorization for SSP or Commerce Authorization for SSP ) IBM rewards you for your Solution Providing efforts. The best revenue opportunity for your company as your client s investment continues and grows! 12 IIBM Internal Use Only

Important Role of your BPR on SSP Deals Your BPR is your main contact at IBM for SSP deals. He/she will be your key point of contact and liaison into quoting and into the IBM sales team throughout the entire sales cycle. Your BPR will engage the appropriate IBM Brand Rep as needed, since the brand rep will assist on the opportunity, and very invested/interested in making you a success! For single end-customer transactions, we will locate the Landing Rep for your endcustomer For multicustomer deals, we will locate the Launch Rep, who is the Rep covering your company as an IBM customer 13 IIBM Internal Use Only

How to I make IBM aware of my lead for SSP deals? While we don t have a deal registration portal specifically designed for SSP, we recommend the following steps for ensuring IBM s awareness of your opportunity identification and deal in play: 1. Register your opportunity in the SaaS Incentive portal (doesn t hurt to cover your bases!) 2. If you have GPP access, please register the opportunity in GPP (because it will autogenerate a SalesConnect record for IBM to follow) 3. Immediately notify your BPR of the opportunity so that they can begin to support you. 14 IIBM Internal Use Only

How to request an SSP quote for your deal: Your BPR will need the following information to get a quote started for you: 1. Confirmation that this is a Single Customer Deal (and that you don t intend to use capacity from your existing Multicustomer Agreement) 2. BP s End Customer Info: Company name, Contact Name and full mailing address of their headquarters. Or provide their IBM Site or Customer Number if they are already an IBM client. 3. Desired products/parts/quantity 4. Billing frequency desired: BP s can choose to be billed monthly, quarterly or annually/upfront. 5. Desired Service Start Date or Start By Date (can be up to 180 days from date of order) 6. Detailed written business justification for any additional discount being requested. Include information on: Why is a discount needed If reason is competitive, who is the competition and what are they offering the customer Important Expectation Regarding Time Frame for Quote Approval: All SSP quotes require Special Bid approval. Please allow several business days for quote approval. 15 IIBM Internal Use Only

Understanding the IBM Quoting Process for SSP Your BPR or the IBM Rep will log into our internal SQO tool and click on Create a sales quote CRITICAL STEP: they must start the quote by selecting Software as a Service Solution Provider quote type. If you have already started a quote using any other quote type (ie: PA, FCT, etc), they will need to start over from scratch, and select SSP. 16 IIBM Internal Use Only

Select Multiple end user or Single end user If they are creating this quote for a single end customer, choose Single end user If they are creating this quote for a BP who is purchasing their FIRST Multicustomer agreement, choose Multiple end user. 17 IIBM Internal Use Only

SSP Quotes: Customer information: On an SSP quote, Customer = the SSP Authorized Business Partner On an SSP quote, End customer = the BP s end customer (also determines which IBM sales team gets paid, so it s important to use the correct address) 18 IIBM Internal Use Only

Which part numbers are discounted There are certain line items on a SSP quote that are eligible for BP discounting BP s can always expect to get a discount (so you can earn margins) on subscription parts Type of Part ExperienceOne B2B and TMS Emptoris BP discount on Subscription parts, add in the BP discount, add in the BP discount, add in the BP discount BP discount on Overage parts No BP discount is given, add in the BP discount Check with the brand BP discount on Set-up fees and other Human-based services No BP discount is given, except for some Mobile Customer Engagement onboarding parts No BP discount is given No BP discount is given 19 IIBM Internal Use Only

Once you have an Approved Quote from IBM your BPR will email you the approved quote: The dollar amount that you see on the quote is YOUR DISCOUNTED COST from IBM. You can now prepare your proposal to your customer. Be sure to mark up your pricing accordingly! That is how you make your margins! Also, within your proposal paperwork, be sure to pass along the TOU verbiage for them to acknowledge and sign off on. Your BPR can provide you with the TOU in word document format so the verbiage can be easily cut and pasted into your own document. You should NOT have your customer sign IBM s TOU. Ordering is easy! The only thing IBM will need back from you to process your order is your PO or Firm Order Letter! Bill To and Ship To must appear on the ordering document. For Single Customer transactions, Bill to is the BP and Ship to is the End Customer If you are not PO driven, your BPR will provide you with our Firm Order Letter Template that you can use in lieu of a PO Your BPR or the IBM rep will submit the order! Please let us know who at your company we should work with to Provision your customer 20 IIBM Internal Use Only

A word about Multicustomer agreements and adding capacity Certain brands/products offer Multicustomer agreements. Much of the ordering process that we have already discussed is the same for Multicustomer. When the time comes where your multicustomer agreement is close to reaching/exceeding your capacity, you will want to request a tradeup quote for the new capacity needed In order to initiate a tradeup quote, your BPR or IBM rep will access the original Services Order in SQO to access the original agreement and initiate the trade up quote process. 21 IIBM Internal Use Only

Are you on the fence about which program to use for a specific deal? Don t stress about deciding now! Prepare for both models, so that you can decide which as it gets closer to close Recommended steps: 1. Notify your BPR of the new opportunity and register it at the SaaS Incentive portal as well 2. Be clear with the IBM rep and your BPR that your intent/preference is to resell it. 3. Keep a paper trail of all of your value-add activity 4. In the event that the customer buys from IBM direct, you have your documentation ready for submitting your claim for the SaaS incentive. 22 IIBM Internal Use Only

In conclusion 23 IIBM Internal Use Only

In this training, you learned about: SaaS Referral Incentive Program Program Recap How to register your leads engage with IBM for success Referral quoting process Partner's role throughout the sales cycle How to make a claim and payment process Saas Solution Provider (SSP) Reseller Program Program Recap How to let IBM know about your deal and engage with IBM for success Your IBM Business Partner Manager's key role throughout the sales cycle Understanding how you get paid on SSP deals Learning the unique SSP quoting process (VAD is not involved!) What to include in your proposal to your customer How to place an SSP order Partner's role throughout the sales cycle 24 IIBM Internal Use Only

Questions? 25 IIBM Internal Use Only

Appendix: SaaS Resources 26 IIBM Internal Use Only

Transformation of computing business models Systems of Record spend shifting to Systems of Engagement 27 IIBM Internal Use Only

IBM is ramping Cloud / SaaS Recent Acquisitions Growth Initiatives Recent Acquisitions (since 2010) Cloud Network automation 2010 Automated data migration 2012 Cloud integration 2010 Cloud computing infrastructure 2013 Database As A Service 2013 Analytics Governance, compliance, risk management 2010 Financial governance 2010 Data warehouse appliances 2010 Financial risk management 2011 Automated BI 2013 Master data management 2010 Data navigation & exploration 2012 Customer & network analytics 2013 Compensation & sales performance mgt 2012 extreme File Transfer 2014 Mobility Mobile computing platform 2012 Mobile mgt 2010 Web fraud detection 2013 Mobile customer experience management 2012 Mobile Customer Engagement 2013 FIBERLINK Mobile Device Mgt Social Small business server solutions 2008 Hosted, multilingual e-mail service 2009 Talent Management 2012 Security Security Intelligence 2011 Fraud protection and advanced security 2013 Smarter Commerce B2B integration 2010 Customer experience mgt 2012 Enterprise marketing mgt 2010 Procurement & contract mgt 2011 Web analytics 2010 Pricing, promotion and product mix optimization 2012 Mobile Customer Engagement 2013 Web fraud detection 2013 Email Marketing & Marketing Automation 2014 extreme File Transfer 2014 28 IIBM Internal Use Only

The SaaS market will triple in size between 2012-2018 Composition of Cloud Application Services (SaaS) by segments, 2012 2018 ($B) $53 $45 $39 $33 $18 $22 $27 CAGR (2012 2018) 23.3% 34.5% 13.9% 17.3% 18% CAGR (2012 2018) 20.7% 15.9% 29.3% 24.6% 9.5% 12/3/2014 Source: Forecast Analysis: Public Cloud Services, Worldwide, 1Q14 Update, Gartner, May 2014 29 IIBM Internal Use Only

Ride the Transformation Think Hybrid 30 IIBM Internal Use Only

Are you Ready to build an Annuity Stream? 31 IIBM Internal Use Only

Cloud/SaaS is Transforming - Buyers are about Systems of Engagement Line of Business Buyers IT Buyers Marketing B2B Integration Procurement Social Business Supply Chain Merchandising Commerce Customer Service Human Resources Operations 2013 IBM Corporation 32 IIBM Internal Use Only

Shared IT/LOB strategy encourages a collaborative SaaS buying agenda Prevent Shadow IT. Create a Collaborative IT environment with a shared cloud strategy, vision, and execution plan. 33 IIBM Internal Use Only

Cloud/SaaS is Transformational Fundamental Business Partner Questions including What will my Business look like in the future? What is my value add? Who will I be selling to? What will I be selling? How will I price and contract? How do I manage operations? How do I manage delivery? What is impact on: Cash flow? Profit? Risk? People / Skills? How do I manage this transformation? 34 IIBM Internal Use Only

Cloud /SaaS and Business Partners a business model evolution Traditional resale - On Premise IBM Hardware IBM Software Business and SW Configuration Consulting Technical Services End User Education Technical Support Up front incentive $ Up front incentive $ Up front incentive $ 35 IIBM Internal Use Only

Cloud /SaaS and Business Partners a business model evolution Traditional resale - On Premise IBM Hardware IBM Software Business and SW Configuration Consulting Technical Services End User Education Technical Support Up front incentive $ Up front incentive $ Cloud-based resale - SaaS Up front incentive $ Subscription Business, App Dev and SW Configuration Consulting Cloud / On Premise Integration Services End User Education Managed Services / Other Over time incentive $ 36 IIBM Internal Use Only

Engaging with IBM Engaging with IBM s offerings and the money! 37 IIBM Internal Use Only

Your SaaS Choices Business Processing Application Platform Infrastructure 38 IIBM Internal Use Only

Your SaaS Choices BPaaS eg Loyalty Management SaaS eg Emptoris, Kenexa PaaS eg Cast Iron IaaS eg Softlayer 39 IIBM Internal Use Only

Your SaaS Choices BPaaS SaaS 1. Build your Own SaaS PaaS IaaS 40 IIBM Internal Use Only

Building Your Own SaaS Offerings with IBM Licence I build SaaS applications and sell independently I deliver SaaS style deployments based on IBM licence Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 41 IIBM Internal Use Only

Building Your Own SaaS Offerings with IBM Licence I build ISV SaaS solutions and sell independently I deliver SaaS services Based on IBM licence Deployment and work with IBM sellers Application Specific Licencing (ASL) SVP PSP Primary Support Provider Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 42 IIBM Internal Use Only

SVP Primary Support Provider Product Groups All of the Products Listed Below are available for PSP Sub-Licensing Option and BP Hosted SaaS Options Business Analytics Industry Solutions Information Management IBM Cognos IBM Cognos Analytic Apps IBM Cognos Business Intelligence (Includes Series 7) IBM Cognos Business Viewpoint IBM Cognos Controller IBM Cognos Planning (Includes Series 7) IBM Cognos Express IBM Cognos FSR IBM Cognos Now! IBM Cognos TM1 IBM Cognos Disclosure Management IBM SPSS Enterprise IBM SPSS Collaboration & Deployment Services IBM SPSS Data Collection IBM SPSS Decision Management IBM SPSS Modeler IBM SPSS Statistics IBM SPSS Statistics IBM FileNet IBM Content Collector IBM Datacap TaskMaster Capture IBM Enterprise Records IBM FileNet Business Process Manager IBM Case Manager IBM Content Analytics IBM FileNet Content Manager IBM FileNet Image Manager (IS) IBM Production Imaging Edition IBM ContentManager OnDemand (New 7/2013) IBM Connections Enterprise Content Edition (New 7/2013) IBM ediscovery (New 11/2013) IBM Enterprise Marketing Mgmt IBM Unica Campaign IBM Unica Marketing Operations IBM B2B Integration IBM B2B IBM WebSphere Transformation Extender (new 9/2014) IBM Smarter Cities IBM i2 Analyst s Notebook IBM i2 Intelligence Analysis Platform IBM i2fraud Intelligence Analysis IBM i2 ibase IBM i2 Text Chart IBM Curam Social Program Management (new 7/2014) IBM WebSphere Commerce (March 2013) IBM WebSphere Commerce Enterprise IBM Gift Center for WebSphere Commerce IBM WebSphere Commerce Professional IBM WebSphere Commerce Developer Professional IBM Sales Center for WebSphere Commerce IBM Order Management IBM Configure, Price, Quote IBM Sterling Warehouse Management System (New 4/2014) IBM InfoSphere IBM InfoSphere Master Data Management Server IBM InfoSphere Information Server IBM InfoSphere Data Replication IBM InfoSphere Data Management Server for Product Information Management IBM Initiate Master Data Service IBM Cognos Data Manager (1/2014) IBM Optim IBM Optim 43 IIBM Internal Use Only

Your SaaS Choices 2. Use IBM SaaS BPaaS eg Loyalty Management SaaS eg Emptoris, Kenexa PaaS eg Cast Iron IaaS eg Softlayer 44 IIBM Internal Use Only

100+ best-in-class SaaS/BPaaS offerings deliver key business capabilities to clients BPM Order to Cash Procurement Supply Chain ecommerce Digital Marketing Marketing Operations Cross-channel Marketing Merchandising City Operations Transportation Management Water Management Collaboration Talent Management Learning Assessments By our estimates, IBM is already realizing more than $1B in annual revenues from this portfolio, and we expect Big Blue to at least double their current SaaS revenues within the next 18 months as this portfolio continues to grow (by acquisition and internal development) reach 150-200 by YE2015. Charlie Burns, Saugatuck Technologies, September 23, 2014 http://blog.saugatucktechnology.com 45 IIBM Internal Use Only

Earn more with IBM SaaS offerings I Influence / co-sell SaaS Sales with clients I sell solutions, manage accounts & provide support I resell software and/or hardware Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 46 IIBM Internal Use Only

Earn more with IBM SaaS offerings I Influence / Co-sell SaaS sales with clients and want IBM to close the sale and deliver SaaS I sell solutions, manage accounts & provide support I resell software and/or hardware IBM Referral Incentive for SaaS EARN 15% IBM Software Value Incentive EARN 5% to 20% Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 47 IIBM Internal Use Only

What you need to participate I Influence / Co-sell SaaS sales with clients IBM Referral Incentive for SaaS EARN 15% and want IBM to close the sale and deliver SaaS IBM Software Value Incentive EARN 5% to 20% Referral SVI Fees 15%* all accounts 5%-20%* based on account Member of Partnerworld Sales Mastery 1x 1x Technical Masteres / Certs - 2x Support Masteries - - Support Plan - - Who Transacts SaaS IBM IBM Quote from IBM VAD / IBM Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 48 IIBM Internal Use Only

Earn more with IBM SaaS offerings I sell solutions, manage accounts & provide support and want to sell IBM hosted SaaS with my solutions IBM Solution Provider for SaaS EARN 25%+ SaaS Solution Provider Upfront Margin 25% 35% Member of PartnerWorld Sales Mastery 1x Technical Masteries / Certs 2x Support Masteries 2x Support Plan Who Transacts SaaS Business Partner BP places order on IBM Multi-customer options Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 49 IIBM Internal Use Only

Earn more with IBM SaaS offerings I influence SaaS sales with clients I sell solutions, manage accounts & provide support and want IBM to close the sale and deliver SaaS and want to sell IBM hosted SaaS with my solutions I resell software and/or hardware IBM Referral Incentive for SaaS EARN 5% to 15% IBM Software Value Incentive EARN 5% to 20% IBM Solution Provider for SaaS EARN 25%+ Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 50 IIBM Internal Use Only

Earn more with IBM SaaS offerings I resell software and/or hardware and want to resell IBM SaaS IBM Software Value Plus Reseller EARN 10% to 20% SVP Upfront Margin/Rebate 10% 20% Member of PartnerWorld Sales Mastery Technical Masteries / Certs Support Masteries Support Plan Who Transacts SaaS BP places order on Multi-customer options 1x 2x Not required Not required Business Partner VAD No https://www-304.ibm.com/partnerworld/wps/servlet/contenthandler/swg_com_sfw_ibm-software-as-a-service-options-business-partners Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 51 IIBM Internal Use Only

SaaS Solution Provider Growing List of Product Availability IBM ExperienceOne IBM Digital Analytics (Coremetrics) IBM Pricing and Merchandising IBM emessage IBM Mobile Customer Engagement SilverPop IBM B2B/Commerce IBM B2B Services IBM Emptoris as a Service IBM Supplier Portal IBM SmartCloud for Social Business IBM Smarter Workforce IBM Maximo Asset Management IBM Cast Iron Live IBM BPM on Cloud IBM Algo IBM Cognos IBM WebForms IBM Workload Automation IBM SPSS Data Collection on Cloud IBM SmartCloud Control Desk IBM Performance Management Note: Please check with your BP rep for product/program availability in certain countries/geos Additional brands/products continue to be added based on availability/fit within business model and associated BP demand. 52 IIBM Internal Use Only

Earn more with IBM SaaS offerings I influence SaaS sales with clients I sell solutions, manage accounts & provide support I resell software and/or hardware and want IBM to close the sale and deliver SaaS and want to sell IBM SaaS with my solutions and want to resell IBM SaaS IBM Referral Incentive for SaaS IBM Software Value Incentive IBM Solution Provider for SaaS IBM Software Value Plus Reseller EARN 5% to 15% EARN 5% to 10% EARN 25%+ EARN 10% to 20% https://www-304.ibm.com/partnerworld/wps/servlet/contenthandler/swg_com_sfw_ibm-software-as-a-service-options-business-partners Additional terms and conditions may apply. Offerings subject to change, extension or withdrawal without notice. Percentages shown are potential earnings and not a guarantee. 53 IIBM Internal Use Only

Is this Right for You? 54 IIBM Internal Use Only

Are you a good candidate for IBM SaaS Solution Provider Solutions? Take the 6 Question Test Key Questions Do you have 1. Sellers with solution sales expertise? 2. process domain expertise in e-commerce, marketing, supply chain, ERP, procurement etc? 3. Are you developing/have bias towards Business Consulting and Value Add Business services? 4. An end user business Support Desk or are you willing to commit to run one? 5. Existing applications (or developing new ones) and or business solutions to integrate? 6. Hosting environment / work with hosting providers and do you offer SaaS solutions today? YES to questions 1-3 above, you re a good fit for SaaS Referral / SVI / SVP to 1-4 you are a great match for SaaS Solution Provider If YES to all 6 questions, you re a perfect match SVP PSP BP Hosted SaaS and SaaS Solution Provider 55 55 IIBM Internal Use Only

Exploiting Hybrid Opportunity - Cloud / SaaS Examples On Premise / private cloud Dynamic Hybrid WebSphere Commerce Unica Campaign Sterling Connect Direct Public Cloud with IBM built SaaS Digital Analytics SilverPop B2B Networks Best of both worlds. Better outcomes. Smarter Commerce solution Marketing Automation solution Supply Chain Management solution + Hybrid Cloud 56 SaaS Pure Play Example: Marketing Agency uses IBM Digital Marketing Optimization SaaS (Coremetrics) and Silverpop together with agency services to provide a rich annuity stream to maximize end customers marketing activity Hybrid Example: Commerce solution is built using licenses: WebSphere Commerce, Tealeaf, & IBM s Digital Marketing Optimization Saas based solution 56 IIBM Internal Use Only

Further Reading - Visit the SaaS Options Pages on PartnerWorld 57 Click Here to go to page 57 IIBM Internal Use Only

More Reading IS SaaS Offerings - The flipbook http://www.bp-oppty.com/industrysolutions-saas/ 58 IIBM Internal Use Only

Client Manages Industry Solutions Cloud Delivery Models - Where Can Business Partners Play? Low skill No service Low Support Low skill Little Service No Support? Medium to High skill High Service Med to High support High skill High Service High support Traditional I/T On Prem Infrastructure as a Service IaaS Platform as a Service PaaS Software as a Service SaaS Business Process as a Service BPaaS IBM / BP Cloud Managed Service Process Process Process Process Process & People Process & People Single Tennant Applications Middleware Infrastructure Multi- Tennant Applications Middleware Infrastructure Control - Unlimited Physical Access and Customization: Requires on going Availability & Capacity Planning support Requires Up front Capital Expense Longer Implementation times Multi- Tennant Applications Middleware Infrastructure PLUS Multi- Tennant Applications Middleware Infrastructure Multi- Tennant Applications Middleware Infrastructure Speed & Flexibility: Speed to Value Revenues align to Operating Expense Access to highly specialized skills & applications not readily available or affordable Customized Single/Multi Tenant Applications Middleware Infrastructure Speed & Flexibility + Customization, Process, & Expertise Provider Manages 59 IIBM Internal Use Only

Client Manages Industry Solutions Cloud Delivery Models - Where Can Business Partners Play? Low skill No service Low Support Low skill Little Service No Support? Medium to High skill High Service Med to High support High skill High Service High support Traditional I/T On Prem Infrastructure as a Service IaaS Platform as a Service PaaS Software as a Service SaaS Business Process as a Service BPaaS IBM / BP Cloud Managed Service Process Process Process Process Process & People Process & People Single Tennant Applications Middleware Infrastructure Multi- Tennant Applications Middleware Infrastructure Control - Unlimited Physical Access and Customization: Requires on going Availability & Capacity Planning support Requires Up front Capital Expense Longer Implementation times Multi- Tennant Applications Middleware Infrastructure PLUS Multi- Tennant Applications Middleware Infrastructure Multi- Tennant Applications Middleware Infrastructure Speed & Flexibility: Speed to Value Revenues align to Operating Expense Access to highly specialized skills & applications not readily available or affordable Customized Single/Multi Tenant Applications Middleware Infrastructure Speed & Flexibility + Customization, Process, & Expertise Provider Manages 60 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral Enterprise Marketing Management (EMM): IBM Digital Analytics (Coremetrics) IBM Digital Analytics Impression Attribution (Coremetrics) IBM Digital Analytics Lifecycle (Coremetrics) IBM Digital Analytics for Social Media (Coremetrics) IBM Digital Analytics Multichannel (Coremetrics) IBM Ad Target (Coremetrics) IBM Product Recommendations (Coremetrics) IBM LIVEmail (Coremetrics) IBM Search Marketing (Coremetrics) 61 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral Experience One (aka EMM) Marketing: SilverPop * IBM emessage (Unica) IBM Email Optimization (Unica) IBM MailboxIQ (Unica) IBM Marketing Operations On Demand (Unica) 62 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral Enterprise Marketing Management (EMM): IBM DemandTec for Retail on Cloud IBM DemandTec Lifecycle Pricing IBM DemandTec End-to-End Promotion Management IBM DemandTec Assortment Optimization IBM DemandTec Shopper Insights IBM DemandTec Strategic Marketing Planning IBM DemandTec Strategic Trade Planning IBM DemandTec Customer Trade Planning IBM DemandTec Advanced Deal Management 63 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral B2B Integration: IBM Sterling B2B Services - Collaboration Network (Sterling info broker) IBM Sterling B2B Services - Integration Basic - Transformation Services Surcharge IBM Sterling B2B Services - File Transfer Service IBM Sterling Data Synchronization 64 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral Commerce: IBM Sterling Transportation Management System IBM Sterling Configure, Price, Quote on Cloud IBM Sterling Supply Chain Visibility IBM Emptoris Telecom Expense Management IBM Emptoris Strategic Supply Management IBM Emptoris Services Procurement Commerce on Cloud IBM Smarter Cities: IBM Intelligent Operations Center on SmartCloud IBM Traffic Information Hub on IBM SmartCloud IBM Work Optimization for Water Utilities on IBM SmartCloud IBM Intelligent Water on IBM SmartCloud IBM Smarter Workforce - KENEXA: IBM Smarter Workforce Talent Acquisition IBM Smarter Workforce Talent Optimization IBM Smarter Workforce Engagement and Rewards 65 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral IBM Collaboration Solutions SmartCloud for Social Business Application Integration: IBM WebSphere Cast Iron Express IBM WebSphere Cast Iron Live Enterprise Edition IBM WebSphere Cast Iron Live Standard Edition IBM BPM on Cloud IBM Blueworks Live Cloud & Smarter Infrastructure (Tivoli) SmartCloud Control Desk SaaS 66 IIBM Internal Use Only

IBM SaaS Offerings Channel Options Channel Options SSP SVP SVI Referral Information Management Business Analytics Algo Pension Monitoring on Cloud IBM Algo One Managed Data Services on Cloud IBM Algo Risk Content on Cloud IBM Algo Risk Reports on Cloud IBM Algo Risk Service on Cloud Cognos IBM Cognos Disclosure Management on Cloud IBM Cognos TM1 on Cloud IBM Concert on Cloud SPSS IBM Analytic Answers (SPSS) IBM SPSS Data Collection on Cloud (SPSS) IBM Analytical Decision Management (SaaS) IBM Social Media Analytics SaaS (SPSS) Varicent IBM Cognos Incentive Compensation Mgmt on Cloud IBM Cognos Sales Performance Mgmt on Cloud 67 IIBM Internal Use Only

Cloud: Cloud computing is a model for enabling convenient, ondemand network access is a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interactions. Multi-tenancy: refers to SaaS environments where a single instance of the software runs on a server and serves multiple client-organizations. Multiple companies all use a single physical database and infrastructure which is hosted remotely. CapEx: Capital expenditure is money invested by a company to acquire or upgrade fixed, physical non-consumable assets, such as buildings and equipment. Capital expenditures are used to create future benefit. CapEx typically is a more arduous process to get approval based on financial strategy of the company. OpEx: Operational expense is the money a company spends on an ongoing, day-to-day basis in order to run a business. Operational expenses are wages, rent, maintenance, and repair. Opex approval is typically easier across the board and, in some areas such as Marketing, the LOB owner actually owns the budget that can pay for SaaS vs. having to go to IT and through a CapEX approval process. Platform as a Service: PaaS provides a turn-key computing platform through the cloud that is elastically scalable platform for new & existing applications. Glossary of Key Terms Business Process as a Service: BPaaS is a combination of people, tools, and methodologies layered on top of a SaaS solution. It can be a horizontal or vertical business process that s delivered based on the cloud services model. Software as a Service (SaaS): software delivery model in which software and associated data are centrally hosted in the cloud and accessed through a web browser. The SaaS vendor provides the hardware and software to run the application and the client subscribes to the solution based on usage. Managed Cloud Delivery: Clients purchase a perpetual software license and a service provider such as IBM hosts and runs that software on behalf of that client. Infrastructure as a service (IaaS): a provisioning model in which an organization outsources the equipment used to support operations, including storage, hardware, servers and networking components. Hybrid cloud: combination of public & private cloud capabilities. Public cloud could include SaaS, IaaS (such as Softlayer) and PaaS. Annual Contract Value (ACV): Annual Contract Value is the 12- month value of a contract. For contracts with a term of 12 month or less, their total contract value is equal to their annual contract value. 68 IIBM Internal Use Only