IBM Integrated Multivendor Support Sales Strategies May 2014 IBM Integrated Multivendor Support Sales Strategies

Agenda Management Perspective Dave Messina Why IMS? Prepare to make client calls when this SITE call is done. IMS covers these products. Call to Action and Available Assets John Lavo Q&A

Products have life-spans Product launch and ramp up Productivity and value growth Optimize Trade-offs 3

Products have life-spans Existing product New product Product launch and ramp up Productivity and value growth Optimize Trade-offs 4

Products have life-spans Existing product Product launch and ramp up Productivity and value growth Optimize Trade-offs In order to figure out when the best time to replace the existing product, we’d need to consider: Cost of Maintenance Cost & Availability of Parts Ability of the product to get the job done 5

Products have life-spans Existing product Product launch and ramp up Productivity and value growth Optimize Trade-offs IBM has studied the lifecycle of hundreds and hundreds of products, model by model so IBM and IBM’s Business Partners may advise customers on the best time to replace products (servers, storage and networking). 6

Multi Vendor Support (MVS) vs Integrated Multivendor Support (IMS) MVS (Multi Vendor Support) - any equipment maintained by IBM without the support of the manufacturer. No Intellectual property included. IMS (Integrated Multivendor Support) - An MVS offering from IBM that covers selected non IBM equipment and is characterized by: Standard ISAT-CHIS BP discounting Pre-priced and available for quoting via ISAT No Special Bid required to get pricing Single, competitive price point per serial number IBM SSR provides the labor Does not require machine configuration detail to price No special SOW. Can be added to existing CHIS contract Early removal from contract when removed from use Standard ServiceElite margins Additional Performance Rewards Currently includes selected Models of EMC, HP, and Dell (more to come) 7 7

Why IMS for our clients? Why IMS for a Partner? Immediate price quotes Delivery is ready to go SSR provides continuity and the IBM face to IMS for the client Competitive price Single point of contact Speed – IMS mimics IBM logo service offerings Simplicity Terms are straight-forward, SOW is standard SMA, fulfillment via ISAT-CHIS Create Profitable new annuity streams Land and Expand Contain and Replace IBM engaged with client when it’s time to upgrade

Do you have any older non-IBM storage installed? Starting the conversation… When IBM equipment is up for renewal, or when the non-IBM equipment is up for renewal Can you address my concerns over: EMC Software (IP) EMC storage apps Diagnostics Quality parts Do you have any older non-IBM storage installed? YES Is any of it EMC? No YES Is any of it HP or HDS? YES We have a new service offering for CX, DMX and Celerra that could save you money. Are you interested? We have this covered. Would you like to see a proposal?

Starting the conversation… prior to a competitive take out of EMC Is EMC charging you for maintenance during the migration to IBM storage? Can you address my concerns over: EMC Software (IP) EMC storage apps Diagnostics Quality parts YES IBM can provide the maintenance on the EMC storage during migration at a good price. Are you interested? YES We have this covered. Would you like to see a proposal?

Intellectual Property Logistics (including parts) Objection handling HP x86 IMS EMC IMS Intellectual Property Machine code or micro-code. Experience has proven in most cases, micro-code updates are not required for equipment under IBM MVS agreements. Most IMS offerings target out of warranty non-IBM equipment which has few micro-code updates. Under standard practices, IBM does not perform micro-code updates on non-IBM equipment. It is the responsibility of the client to contract and update non-IBM equipment micro-code. Apps Not applicable. Storage application software from EMC is available to clients independent of where client buys maintenance. Call Home x86 servers do not inherently have call home. Available as option. Provided in supplier’s diagnostic and monitoring tool. Diagnostics IBM uses the diagnostics provided by HP with the server. Logistics (including parts) IBM leverages it’s logistic infrastructure to support our MVS parts management. We currently have a large inventory of non-IBM parts in our system. All parts are of OEM quality and were manufactured by the OEM. We use OEM new, used and reconditioned parts. Objection handling and Customer Facing documents available on: Integrated Multivendor Support community: https://w3-connections.ibm.com/communities/service/html/communityview?communityUuid=ca0f118f-976f-420c-a9cc-f1c358826863

EMC CLARiiON supported: EMC models available as IBM Integrated Multivendor Support offerings Available today EMC DMX supported: DMX 800, DMX1000, DMX2000, DMX3000 End of Service Life (EOSL) No new updates are available from EMC One price No configuration required This price includes two expansion cabinets Additional expansion cabinets low charge Solid State Disk are priced separately DMX 3, DMX 4 (DMX3 EOSL) (DMX4 2016)  EMC CLARiiON supported: CX200, CX300, CX400, CX500, CX600, CX700 EOSL No new updates are available from EMC One price No configuration required CX3 EOSL 2013 One price CX3-10, CX3-20 One price CX3-40, CX3-80 CX4 EOSL 2014 One price CX4-120 CX4-240 One price CX4-480 CX4-960 This program does not require IBM Special Bids: Single competitive price point per serial number, not per Terabyte Does not require client configuration data Single supplier partner IBM SSR used as labor IMS Machine type 0126, Model types E00-E20 in ISAT No special SOW or contract needed if IMS 0126 is used. Section 9 of the MSA covers the support Hard drive retention at no additional charge Unit disposal service at end of contract Early removal from the contract when a box has been removed from productive use by the client after an IBM upgrade These models are supported under the program, all others are special bid full sub to our supplier partner: EMC CLARiiON supported: § CX200, CX300, CX400, CX500, CX600, CX700 § EOSL § No new updates are available from EMC § One price No configuration required § CX3 § EOSL 2013 § No new updates are available from EMC § One price CX3-10, CX3-20 § One price CX3-40, CX3-80 § CX4 § EOSL 2014 § No new updates are available from EMC § One price CX4-120 CX4-240 § One price CX4-480 CX4-960 EMC DMX supported: § DMX 800, DMX1000, DMX2000, DMX3000 § EOSL § No new updates are available from EMC § One price No configuration required § This price includes two expansion cabinets § Additional expansion cabinets low charge § Solid State Disk are priced separately § DMX 3, DMX 4 § (DMX3 EOSL) (DMX4 2016) § No new updates are available from EMC § pricing § One price No configuration required § This price includes two expansion cabinets § Additional expansion cabinets low charge § Solid State Disk are priced separately   12 12

EMC CLARiiON supported: EMC models available as IBM Integrated Multivendor Support offerings Available today EMC DMX supported: DMX 800, DMX1000, DMX2000, DMX3000 EOSL No new updates are available from EMC One price No configuration required This price includes two expansion cabinets Additional expansion cabinets low charge Solid State Disk are priced separately DMX 3, DMX 4 (DMX3 EOSL) (DMX4 2016) No new updates are available from EMC pricing  EMC CLARiiON supported: CX200, CX300, CX400, CX500, CX600, CX700 EOSL No new updates are available from EMC One price No configuration required CX3 EOSL 2013 One price CX3-10, CX3-20 One price CX3-40, CX3-80 CX4 EOSL 2014 One price CX4-120 CX4-240 One price CX4-480 CX4-960 This program does not require IBM Special Bids: Single competitive price point per serial number, not per Terabyte Does not require client configuration data Single supplier partner IBM SSR used as labor IMS Machine type 0126, Model types E00-E20 in ISAT No special SOW or contract needed if IMS 0126 is used. Section 9 of the MSA covers the support Hard drive retention at no additional charge Unit disposal service at end of contract Early removal from the contract when a box has been removed from productive use by the client after an IBM upgrade These models are supported under the program, all others are special bid full sub to our supplier partner: EMC CLARiiON supported: § CX200, CX300, CX400, CX500, CX600, CX700 § EOSL § No new updates are available from EMC § One price No configuration required § CX3 § EOSL 2013 § No new updates are available from EMC § One price CX3-10, CX3-20 § One price CX3-40, CX3-80 § CX4 § EOSL 2014 § No new updates are available from EMC § One price CX4-120 CX4-240 § One price CX4-480 CX4-960 EMC DMX supported: § DMX 800, DMX1000, DMX2000, DMX3000 § EOSL § No new updates are available from EMC § One price No configuration required § This price includes two expansion cabinets § Additional expansion cabinets low charge § Solid State Disk are priced separately § DMX 3, DMX 4 § (DMX3 EOSL) (DMX4 2016) § No new updates are available from EMC § pricing § One price No configuration required § This price includes two expansion cabinets § Additional expansion cabinets low charge § Solid State Disk are priced separately   13 13

IBM Integrated Multivendor Support offerings: HP x86 blade servers Models added to IBM Integrated Multivendor Support Offerings: Available today (on May 2014 BP Exhibit) HP has an estimated 15 million x86 servers installed in the USA today* IBM can help customers sort through HP’s install base to optimize cost for customers. This program does not require IBM Special Bids. Key Offering Detail: Single competitive price point per serial number, not per Terabyte Does not require client configuration data Single supplier partner IBM SSR used as labor IMS Machine type 1629, Model shown at right are in ISAT No special SOW or contract needed if IMS model is used. Section 9 of the MSA covers the support Early removal from the contract when a box has been removed from productive use by the client after an IBM upgrade These are our new IMS models. B15; Coming soon https://h20565.www2.hp.com/portal/site/hpsc/public/wc/home/  A currently available HP web site where you may check warranty status by serial number. This is not an IBM web site. https://h20565.www2.hp.com/portal/site/hpsc/public/wc/home/  *Source: IDC 3Q13 Server Tracker IMS #’s updated 4/10/14 14

HP IMS models available prior to 3/31/14

IMS Call to Action & Available assets BP Coverage Reps Ask clients if they have EMC storage hardware or HP x86 blades installed. If yes, ask if the client would be interested in a proposal to lower maintenance costs. Contact: Shannon Tucker stucker1@us.ibm.com 1-404-238-5901 Eric Nelson etnelson@us.ibm.com 1-312-529-1547 John Lavo jlavo@us.ibm.com 720-395-4265 Material available: Customer Facing MVS strategy highlight: Narrated, self running “Elevator Pitch”, Runs less than 2 minutes Full MVS strategy presentation Sales Facing Objection handling for Storage Objection handling for HP x86 Sample call script Sales Training presentation Materials available on request Brief Word documents, worth reading!

IMS Take - Away’s Opportunity is LARGE EMC Total Addressable Market for 2014 - $836M Dell / HP Total Addressable Market for 2014 - $384M IMS is NOT MVS as usual Standard ISAT-CHIS BP discounting IBM Service Delivery Quick to price No special contracts No configuration detail needed Full margins / Enhanced Performance Rewards Embraces the Land and Expand Strategy Earn our way in Demonstrate performance Grow to other platforms especially keeping an eye on the new IMS products Easy to Sell, Easy to Order, Ready to Deliver at a good price Supporting HP & Dell x86 and EMC Today More vendors and models rolling out 2Q, 3Q and 4Q – this is a strategic investment 17

Backup

What products does it include? HP server background Project Odyssey Project Moonshot What is it? HP’s convergence of datacenter servers to Blades A special purpose server that is green – dense and low power. It is not a general purpose server suitable for ERP or transaction processing What products does it include? Unix and Wintel servers Itanium and future x86 based servers. What is the end game? Converge to Linux on x86. Key take-away While HP has converged hundreds of separate servers to a few scalable blades, there have been some practical challenges including operating system support and confusion between software defined datacenter and mature data center peripherals such as LeftHand Networks, IBRIX and 3Par storage. Hyperscale server products Initial offering is “Gemini”, based on Intel Atom “Centerton” processors Project Odyssey - http://h18004.www1.hp.com/products/solutions/mcci/index.html Project Moonshot - http://h17007.www1.hp.com/us/en/iss/110111.aspx Project Voyager - http://www.serverwatch.com/server-news/hp-project-voyager-expands-server-control-.html Odyssey – HP began referencing mission critical x86 as part of BCS results in 4Q12 (“mission critical x86 was up 25% YTY”) Project Odyssey is defined as a roadmap to “unify UNIX and x86 server architectures”. It includes plan for two systems. The first one is called “DragonHawk”, these are Xeon-based blades for the Superdome 2 enclosure. The second one is called “HydraLynx” and comprises scalable Xeon-based c-Class blades. HP believes the low energy, density optimized segment will grow significantly Density and energy savings translate to data center cost reduction Targeted at cloud, dedicated hosting, Big Data, DVI, Web front end HP needs a transition plan for customers running HP-UX and NonStop OS on Integrity servers Wrap HP intellectual property around Linux to extract value from SW 19 19

Other MVS Peripherals that require Special Bid EMC Other Equipment VMAX CDS planned support 2014 Other EMC Equipment Centera Celerra Greenplum Isilon Data Domain Clariion (VNX) Avamar VPLEX ATMOS XtremIO Connetrix Other Storage Hitachi HP STK NetApp 20

Suggested questions to ask clients to get an IMS conversation started Competitive take-out – Storage: I understand you’re finalizing preparations to replace your EMC storage with IBM storage. Have you considered IBM to provide maintenance for the IBM storage during the migration period? At the time of IBM MA Contract Renewal: Do you have any HP or Dell x86 installed? Or EMC storage installed? If you do, our IMS offering provides pre-priced maintenance for select server and storage products from these vendors. If the Pricing on the IBM maintenance is attractive, would you consider IBM maintenance for those server and storage devices? If you would prefer to wait until your maintenance contract with HP, Dell or EMC expires, when does that contract end? Client has non-IBM equipment, but no imminent renewals (non-IBM or IBM): Have you seen the IBM announcements describing where IBM can directly support HP and Dell x86, including Blades, and EMC storage? The prices are competitive and in many cases, lower than the equipment manufacturer. Third Party Maintenance provide Win-Back Engagement: While engaging the customer to gain the opportunity to quote on the IBM inventory maintained by a TPM… Do you have any HP or Dell x86 servers or EMC storage installed? Yes? Who is providing maintenance for those devices? Have you seen the IBM announcements describing where IBM can directly support HP and Dell x86, including Blades, and EMC storage? The prices are competitive and in many cases, lower than the equipment manufacturer.

IBM US TSS position on HPQ IP availability HP’s recent firmware update announcement has no change to how IBM performs support on HP devices. For HP’s Unix servers, there is an option to purchase just the access to firmware from HP. As of March 2014, we have not seen a similar announcement for HP x86 servers. Please note, when an HP server is under warranty, HP will provide IP updates at no charge. When the warranty expires HP will provide safety and security updates but not bug fixes to the firmware. Once a warranty expires, the client must either keep the device at that level of firmware or contract with HP for maintenance that includes IP updates. MVS firmware: IBM’s MVS offering for hardware includes all parts and labor needed to repair any hardware issues that occur as a result of a component failure. This support does not include any firmware, which is considered to be Original Equipment Manufacturer (OEM) intellectual property. Select OEMs make firmware available over the internet at no charge. In these cases, IBM will support the equipment with client downloaded code. Other OEM’s require a support contract directly with them in order to access firmware. In these cases IBM requires clients to either “freeze” their code levels or make Time & Material arrangements with the OEM if upgrades are required. Firmware does not normally affect older models or EOSL devices. OEMs normally make few or no changes to old firmware. For parts, there are three possibilities for firmware delivery models. Each is determined by machine type. 1) Part replaced and machine forces a download of machine level code. 2) Part replaced and Engineer has to force a down load to the part of the current machine level code. 3) Complete firmware is replaced with the part A) The part comes in with the correct code level B) The machine needs to be upgraded to previous code level

IBM Intellectual Property on an IMS engagement RAYTRIX ESS for EMC CDS developed and patented SW tool Monitoring - Monitors and Calls Home in case of failures Diagnostics Configuration Troubleshooting Error Notification & Interpretation Testing EMC Symmetrix Disk Arrays….. RAYTRIX RSRS Connectivity CDS offers a Secured IP Connection for Remote Connection of Raytrix Products 23

What about storage software? There are two different types of software we need to understand and where they fit in the stack Operating system (OS) Application software All EMC hardware equipment is considered a peripheral As such, there is no need for OS support The OS resides on the system they are attached to EMC sells their application software as being heterogeneous EMC states that it will work with other manufactures hardware EMC will sell software support as stand alone Local EMC sales teams may try to use software as a scare tactic, but EMC corporate does not support. IBM has an EMC application software support offering that can bridge any gaps the client may have. 24