Novell Single Base SKU

2 Price Lists Today Three separate price lists (VLA/CLA/MLA) for same product offering 11 different part numbers required for each product item VLA & CLA contain 5 part numbers each - one for each level; MLA publishes only one part number

3 Issues Today Confusing for customers, sales people, and front- line channel partner –Creates a more complex price list –Errors can occur from resellers submitting correct part number to distributor according to level –Some resellers don’t understand a part number means a discount level Multiple price lists to download into partner systems each month Each new product offering requires unique part number generation across numerous levels Requires multiple published price list for programs with the same discounting structure

4 Single Base SKU Goal Reduce customer and channel sku complexity Details All product offerings have one base SKU across all programs, regardless of level Partners and their sales forces can quote one single part number from a single simplified price list All Novell requires to receive on orders is the single base part number Discounts attached to agreement, rather than just part number –Agreement details available to partners Optional, two-digit customer discount suffix included on electronic price list to download into order systems

5 Price List Format Today (See next slide for rest of price list)

6 Price List Format Today (Continued) Separate part number listed for each Membership Level.

7 New Price List Format Single base part number used for all Membership Levels.

8 Optional Electronic Format Part numbers contain customer discount suffix attached to the end of base part #.

9 Process Reseller / Customer Distributor / CAR Novell Distributor or CAR submits order to Novell w/single SKU Part #: ABC Distributor or CAR quotes using single SKU or SKU with discount suffix Part #: ABC or ABC-25 Reseller or customer request quote using single SKU Part #: ABC