IBM Power & Storage Promotions PGI & Specialty Partners, Q3 2016

2 Pack amendments summary: From Q V1 to Q V1 Please run this presentation in slide show mode to activate the hyperlinks ! NEW Storwize Flash Drive “3 for 2” incentive (which includes V7000 and V5030) EXTENDED “Storwize and LTO7 Trade In” program (ending 30/09/2016) – now includes LTO7 tape. EXTENDED Q3 Brocade and CISCO SAN incentives UPDATED VersaStack incentive program – now includes V50x0 models UPDATED Storage “Energyzer” program (ending 31/12/2016) UPDATED IBM Storage product category list (new categories) and removal of WDFM products UPDATED DDE program – extension of discount on FlashSystems + change to SWMA discount

3 Programmes & Initiatives Type of InitiativeNameDescriptionFor more informationExpiry Date Transactional Programs Value Seller PLUS program Entitled and earned discounts off list price requiring little or no IBM approval. Up to 86% discount available to Distributor assuming deal registration adder is approved and applied. Value Seller Plus pricing requests will be processed exclusively through the PSAT tool. There are new and revised pricing categories, eg Cat.”R” and “S”, which are shown in the latest Storage Product table / list. ValueSeller PLUS Storage product table Ongoing Pay for Value program It is IBM's intent to provide predictable, attractive margins on eligible Special Bid storage transactions. The ‘Pay for Value’ margin policy will apply to special bid requests for which the IBM Business Partner has an approved and maintained IBM Storage ‘Deal Registration’.New [2016] program extended to CEE countries T2 Resellers (ZWEP5194I) Ongoing [CHW] Deal Registration Mandatory approval required for any access to Special Bid pricing or to earn the Registration Adder within Value Seller. Submit the DR requests via the PSAT tool for approval/registration. Deal Registration document Ongoing Investment Initiatives Demonstration Development and Evaluation Program The IBM Systems & Storage Demonstration, Development and Evaluation (DDE) programme is designed to enable IBM Business Partners to invest in IBM hardware systems for the purposes of demonstration and evaluation to potential users. The program has been updated with newly announced products and use of ePricer. DDE discount on SWMA now restricted to 1, 2 or 3 years upfront. PartnerWorld ExhibitOngoing BGF programThe BGF program is available to distributors to support their marketing/demand generation activities for IBM h/w products. BGF Program description

4 PromotionDescriptionFor more infoExpiry Date IBM Storage “Energyzer“ program For selected Storwize and Flash transactions, visible as “stretch” in IBM Sales Connect, the IBM Storage BUE can nominate these deals for additional discount to assist with their closure. The Business Partner will be informed when their transactions have been selected for the “Energyzer” program. The program has been extended and now includes the new V5000 products. ZWEP5723K Storage "Energyzer" (for T2) VersaStack IncentiveIBM Business Partner Tier 2 Resellers will receive an additional discount of 5% off list price if they purchase eligible IBM Storwize V7000/V5000 or IBM FlashSystem V9000 from an authorized IBM Distributor under Value Seller terms and sell it as a VersaStack Solution into/with a CISCO UCS server. ZWEP5678E VersaStack Incentive Storwize and LTO7 Trade IN program This program rewards IBM Business Partners for the sale of Storwize machines/LTO7 machines when they replace an “old” IBM storage system, a non-IBM storage system or if the storage creates a VersaStack solution. Please see PLET for details of the current rebate and reward incentives. [Q3 2016] Storwize and LTO7 Trade IN program Specialty (and Specialty ELITE) program This program enables Business Partners to build strong sales and technical skills to deliver the IBM [Storage] solutions required by our mutual customers, and earn investment benefits from IBM. Includes funding for business development, marketing, education and reference(s). Specialty Program ZWEP6031A Specialty Website Partner Growth Incentive [PGI] program The PGI initiative rewards BPs who develop their IBM business. Resellers who meet their quarterly Sales-Out Revenue Target for Storage (and Power) products [and associated MES upgrades] will receive rebates (see program document). If you have already registered for PGI, you will receive your new Q target. T2 Solution Providers who are already Specialty or Specialty ELITE Partners are not eligible for this incentive program. PGI Program ZWEP6004B (2016) PGI Program description Other Promotions and Programs

5 PromotionDescriptionFor more infoExpiry Date IBM Storage “FLAPE“ program IBM Storage Systems Business Partners who purchase an eligible IBM FlashSystem product together with an eligible IBM Tape Library under ValueSeller terms may qualify for an additional discount of up to 5% off list price for both the Tape Library and FlashSystem products. ZWEP6142D - IBM "FLAPE" incentive (for T2) Storwize “3 for 2“ SSD incentive program IBM Storage Systems Business Partners who purchase an eligible IBM Storwize product with 3 of the same capacity Flash/SSD drives will be eligible to receive one of those SSD drives ‘free of charge’ - up to 4 free drives can be awarded per eligible machine This program includes all SSD drive types for both the Storwize V5030 and V7000. ZWEP6118B - IBM Storwize Flash/SSD "3 for 2" drives promotion Flash Sales Expansion Program for Specialty Partners IBM Storage Specialty partners will receive an additional 5% discount (up-front) when they sell an IBM FlashSystem machine into a storage “First in Enterprise” customer. If the Specialty partner has NOT sold FlashSystems before,the additional discount when selling into an FIE customer will be 10%. Flash Sales Expansion Program for Specialty Partners IBM Storwize Software Bundle promotion When you sell the full Storwize SW bundle with both V7000 Gen 2 and V5000, instead of selling 4 individual SW features, you will receive a price advantage. For V7000 this is equivalent to a 31% saving – the discount is not as deep for V5000. Handled via PSATOngoing Solutions Accelerator Program 5% storage hardware rebate and 15% software rebate paid when sold together. Minimum deal value $20k and software must make up 30% of the total revenue. Has been extended to all IBM ‘organic‘ storage products, including the new Flashsystems machines. For software products purchased through PPA, this program provides the incentive to include S/W in H/W sales Solution Accelerator WebsiteSolution Accelerator Website, and ZW Ongoing Know Your IBM – The KYI program Earn points for education on eligible storage products – convert points into cash prizes.KYI Program descriptionOngoing Other Promotions and Programs

6 Deal Registration An approved Deal Registration is needed to earn the Registration Adder in Value Seller PLUS Special Bids (P4V) may not be requested without an approved Deal Registration in place for the opportunity – there is a minimum list price value of $200,000 required for Special Bids The new “Pay for Value” Channel margin program can pay up to 28% NRM on Special Bids All Registrations to be requested & approved via PSAT (GPP registration to be removed) Registrations are awarded using the industry standard basis of “First BP to apply”. The default registration period is 6 months - two 3 month extensions may be requested During the registration period only the BP(s) awarded the registration will qualify for the Registration Adder in Value Seller, or be eligible for Special Bid pricing Exceptionally, multiple BPs may be awarded registration on the same opportunity if evidence of similar influence or added value is proven or if the opportunity is subject to a formal Public Sector tender process (Government). Situations will be handled as an “Investment Review” if challenged by a second BP

7 New Estimate-Free Compression Guarantee! Collecting data and generating reports is not required anymore with the new Estimate-Free Compression Guarantee, available now for Storwize V7000 and V5030. Learn how to guarantee 50% savings of raw capacity without using the Comprestimator utility at: Guarantee Administration Guide Guarantee Administration Guide Compression Guarantee continues

Compression Guarantees – Existing & New  Existing “Flexible” Compression Guarantee (started 2/2015)  Guarantees capacity savings up to 80% (5x) based on Comprestimator reports Analysis  Guarantees performance based on Disk Magic reports  Generating & analyzing the reports can become challenging and resource consuming in large environments  Can elongate the sales cycle  Choose this when the extra savings is required for competitive and cost positioning  Available for Storwize V5030, V7000, SVC, and FlashSystem V9000  New “Estimate-Free” (aka Blanket) Compression Guarantee (starts this week)  Guarantees 50% (2x) capacity savings  Collecting data and generating reports is not required  Instant & effortless compression guarantee  Deal-closing acceleration tool  Currently available for Storwize V7000 only Both Guarantees are available for Storwize V5030 and V7000, work with the client to select which one works best for the deal

Storwize V7000 Compression Guarantees Compared NEW Estimate-Free GuaranteeExisting Flexible Guarantee Offered withNew Storwize V7000 systems (with all RtC HW installed), at time of purchase %Savings GuaranteedFixed 50% Compression & Thin-Provisioning system-level savings Set Based on Comprestimator reports Up to 80% system-level Compression savings Performance GuaranteeNoYes Based on Disk Magic report Data Analysis RequiredNo Seller can provide the guarantee instantly Yes By AskRtC alias (3 business days) Qualification RequirementsFollow compression best-practices (Redbooks) – compress only volumes with 25% savings or higher Guarantee CoverageGuarantee covers only volumes with 25% savings or higher (best-practice) Only internal V7000 storage is covered, externally virtualized capacity is not covered All workloads are covered All Compressed volumes in the system are covered Guarantee Period60 days post system install (ends maximum 90 days after system delivery to client) Capacity RemedyV7000 Expansion Enclosures, Disks, and Software, as required to make up for the lower savings Up to the maximum stated in the contract Remedy warranty/support terms same as original system configuration Performance RemedyN/AStorwize V7000 Control Enclosure

Finalize contract based on analysis results New Estimate-Free Guarantee – Registration Workflow Simplified Offer the client 2 guarantee options Collect Comprestimator data Collect Disk Magic data Collect Disk Magic data Send data for analysis Sign contract by client & IBM Accounting revenue carveout Document Remedy in contract (fixed 15% of raw capacity) Start Notify IOT Leader Flexible Guarantee Estimate-Free Guarantee Admin guides with detailed step-by-step instructions will be available for both Guarantees by 8/1.

Compression Guarantees – Resources  Obtaining country contract template –Country leaders need to watch for the availability of the new version in their country contract databases. –Those looking for the country forms for Asia should be in touch with their local legal to check on availability of localized country forms –All other non-US countries can be in touch with the Dublin Legal Resource Center (Ciaran Dunne/Ireland/IBM, Donal Scully/Ireland/IBM) to check on availability of localized country forms  Existing “Flexible” Compression Guarantee (since 2/2015)  Contract template ID: Z XX (XX=country)  Administrator’s guide – SSISSI  New “Estimate-Free” (aka Blanket) Compression Guarantee (starts this week)  Contract template ID: Z XX (XX=country)  Administrator’s guide – will be posted on SSI & PW by 8/1

12 Tools IBM PLETS on PartnerWorld Open the following PW web page and insert PLET or program number:- PartnerWorld or PLET Search This will require a PartnerWorld ID PartnerWorld Helpline: +44 (0) How to get a new Business Partner registered with IBM Open the following PW web page and follow the documented process:- How to access the IBM Kaon Product 3D animation service Open the following web page and select your chosen product:- (specifically for Versastack) Business Partner PSAT Tool:- Business Partner Locator Tool:-

13 Useful Contacts ContactRoleTel Dominic Cole Storage IOT Channel Manager Neil Mitchell Storage SPR (Specialty BPs) Peter Clarke Storage SPR (Specialty BPs) David Scott Storage SPR (Distributors) Andrew Reakes Business Partner Technical Manager Andrew Gill Systems Channel Director Martin Bruce Flash/SDI Sales Leader Matt Fordham Storwize/SDS Sales Manager Justin SheriffBrocade (SAN products) Manager07775

14 Back Up Slides

Systems Storage Education links IBM Systems Storage Sales Education: BP: Internal: IBM Systems Storage Technical Sales Education: BP: Internal: Know Your IBM – The KYI program Earn points for completion of education on eligible storage products – convert points into cash prizes.KYI Program descriptionOngoing

Link:- Overview Storage Enablement Offerings

We've made it simple and powerful for you, EMEA Storage Competence Center (ESCC), located in IBM Frankfurt (airport) / Germany, and the IBM Client Center - Storage Benchmark & Demo Center, located in IBM Montpellier / France, joined their forces to integrate in a single renewed offering - the 2016 Business Partner Storage Enablement catalogue. This catalogue (link) contains all IBM System Storage enablement offerings of both units and is available for IBMer and Business Partner since the catalogue is stored in IBM communities. For BP registration please send following BP information to or  Business Partner company  Name of Business Partner colleague  Mail address of Business Partner colleague You - as you are subscribed to the Storage Technical Enablement Newsflashes - are already added to the community as a member. All offerings contain a request link and may be booked by IBMer and / or Business Partner representatives. Additional information like content, audience and cost are included as well. Education is key to making our Partners more successful in Don't hesitate to join us. Link:- Overview Storage Enablement Offerings

Smart ZONE resources on Spectrum Family SDS/IBM Spectrum Storage Family Enablement TrainingIBM Link SDS Overview Training (May Minutes)ltu46711http://lt.be.ibm.com/stg/ltu46711 IBM Software-Defined Storage Announcement (Feb Minutes)ltu48368http://lt.be.ibm.com/stg/ltu48368 IBM SDS vs EMC ViPR SDS Strategy (Nov Minutes)ltu47758http://lt.be.ibm.com/stg/ltu47758 IBM Spectrum Storage Product Family Deep Dive (Mar Minutes)ltu48751http://lt.be.ibm.com/stg/ltu48751 Understanding IBM's Spectrum Storage Announcmentltu49285http://lt.be.ibm.com/stg/ltu49285 IBM Spectrum Storage - Changing the economics of storage (March Minutes)ltu49287http://lt.be.ibm.com/stg/ltu49287 IBM Spectrum Accelerate IBM Spectrum Accelerate, XIV as Software, the new Enterprise-ready Software Defined Storage Solution Sales (Europe/Latin America) (Feb Minutes)ltu48424http://lt.be.ibm.com/stg/ltu48424 IBM Spectrum Accelerate, XIV as Software, the new Enterprise-ready Software Defined Storage Solution Technical (Europe/Latin America) (Feb Minutes)ltu48425http://lt.be.ibm.com/stg/ltu48425 IBM Spectrum Control Base Edition - VMware Integration Capabilitiesltu48892http://lt.be.ibm.com/stg/ltu48892 IBM Spectrum Accelerate - XIV Software Defined Storage - Exec Overview (Mar Minutes)ltu48980http://lt.be.ibm.com/stg/ltu48980 Engage for Success - IBM Spectrum Accelerate (Feb Minutes)ltu48426http://lt.be.ibm.com/stg/ltu48426 IBM Spectrum Control Storage Software Basics - VSCltu48746http://lt.be.ibm.com/stg/ltu8746 IBM Spectrum Virtualize IBM Spectrum Virtualize 101 (Mar Minutes)ltu48450http://lt.be.ibm.com/stg/ltu48450 IBM Spectrum Scale What is Elastic Storage and What's Newltu46265http://lt.be.ibm.com/stg/ltu46265 IBM Elastic Storage Technical Overview - Capabilities and Positioningltu46959http://lt.be.ibm.com/stg/ltu46959 IBM Elastic Storage - Technical Use Cases & Product Demonstrationltu46960http://lt.be.ibm.com/stg/ltu46960 IBM Spectrum Scale Large Deal Hunting Guide (Mar Minutes)ltu48756http://lt.be.ibm.com/stg/ltu48756 IBM Spectrum Archive Linear Tape File System Enterprise Edition (LTFS EE) Technical Update ltu46109http://lt.be.ibm.com/stg/ltu46109 Elastic Storage Enterprise Archive Use Cases Part 2 (Dec Minutes)ltu47963http://lt.be.ibm.com/stg/ltu47963

IBM Software Defined Storage Top Gun (SDSTG) April DACH Germany / Mainz Yes May MEA Egypt / Cairo Yes May Italy Italy / Segrate Yes June BeNeLux tbd pending July SPGI Spain/Madrid Yes September Nordic Finland / Helsinki pending October MEA UAE / Dubai ( Abu Dhabi ?) Yes

ValueSeller (pricing) model – from July 2016 :- 20

‘Pay for Value’ Program for Solution Providers selling Storage 21 Bid CodeMargin CategoryBP Discount off End User Price All products Standard Margin 18%12% Base Margin16%10%

IBM SAN programs (please use hyperlinks) Brocade SAN Incentives for Q CISCO IBM Incentives for Q Please use the following links to access the SAN programs for Q3 16 :- The SAN programs have been extended to the end of Q3 2016

23 Issued: October 18th, 2013 IBM Global Financing - delivering Business Partner value 1.Get Paid Faster - IGF pays BPs within 5-7 days of the deal closing, and collects payments directly from the client, improving your cash flow. 2.One-Stop Solution - IBM Global Financing can include IBM Hardware, Software, Services AND BP Services plus any other OEM components subject to approval. 3.Helps differentiate proposals with the ability to create compelling business cases, unlocking budgets and delivering value to clients. 4.Potential to earn additional fees from IGF IBM Global Financing helps Business Partners grow profitably… by meeting clients’ evolving needs more effectively

24 Available from April 2013, IBM Rapid Financing App helps you submit financial proposals, run credit checks, receive quotes within minutes and while ‘on-the-go’. Provide your clients with price proposals and generate credit approvals within minutes using an iPad, iPhone or Android mobile device. Easy-to-use interface and can provide planning rates, and contracts worth up to $500K, to authorized users within minutes, Download it at See and test it for yourself, for a test deal use IBM Credit Corp as the client name, keeping the deal size below $20K Easier to do business with