IBM Integrated Multivendor Support (IMS)

Customer spend on operations and management has shifted from 20% in 1996 to 50% in IMS Target Market Opportunity in the US $1.5 Billion HP and Dell x86 IMS models cover greater than 60% of the x86 server install base of all vendors (units). EMC, HDS and HP storage IMS models cover greater than 50% of the storage install base of all vendors (units). IMS price quote to win rate is 67% IBM’s goal is to be the largest TPM service provider IMS Opportunity

What is in it you you? Grow sales annuities and earn gross profit margins in a high growth $1.5B 2015 opportunity. Earn your way to a greater share of a customer’s shrinking IT budget by establishing yourself as a trusted advisor helping to reduce costs, with better service and getting your client a better return on their IT investment. Implement an easy strategy to acquire, land and expand in a new customer account to fuel future growth opportunities. With the knowledge of a customer’s entire inventory you will solidify and increase account control for tactical replace opportunities and refresh strategies. 3 copyright IBM 2015

IBM Integrated Multivendor Support offers a portfolio of hardware maintenance solutions for non-IBM products for storage, servers and networking. Integrated Multivendor Support (IMS) can help you: 1.Benefit from IBM’s use of analytic tools and IBM infrastructure to determine when it is most cost effective for a product to be moved from original equipment manufacturer (OEM) maintenance to third-party maintenance, or replaced. 2.Extend the life of products by providing maintenance for them at the end of their lifecycle. IBM offers around-the-clock level 1 and 2 hardware support for select multivendor storage, networking and server hardware.

IMS is a true IBM offering: With IMS, IBM is the offering owner IBM plugs SME suppliers in our set offerings and infrastructure Each IMS offering uses IBM SME’s to support the parts, training and technical support (call home) IMS leverages the IBM infrastructure and best praticesfor everything else EntitlementsDispatchEscalationSales Sales support teamsSmart eyes and hands (SSR’s)ContractsMarketing Pricing – T’s & C’s: No Special Bid required to get pricing Standard ISAT-CHIS BP discounting Pre-priced and available for quoting via ISAT Single, competitive price point per serial number Ordering & Delivery: IBM SSR provides the labor Does not require machine configuration detail to price SOWs are complete and in CHIS. Early removal from contract when removed from use

What is in it for your customer? Facilitate reduced costs via pre-priced, budget friendly services Help extend the life of your customers equipment and boost uptime with around-the-clock level 1 and 2 hardware Optimize your customers ROI by extending the life of their server, storage, and networking hardware Help simplify technical support with a single point of contact Leverage IBM’s world class services organization, resources, logistics and best practices 6 copyright IBM 2015

Questions to ask Are you faced with rising IT maintenance costs? Is your IT budget growing or shrinking? Are your costs to maintain your IT environment increasing? Do you have older servers, storage and networking hardware that should be on maintenance Are you seeking around-the-clock service and support for your equipment at a fixed price?? Do you want to extend the life of your existing IT equipment to help you get the best value? Are you seeking a more cost effective alternative to original equipment manufacturer support? Is your current infrastructure more complex to maintain and manage? Do you want to optimize your return on your investment in technology? Are you seeking around-the-clock service and support for your equipment at a fixed price? Do you want to reduce the number of vendors that are supporting your IT environment? 7 copyright IBM 2015

8 Why IBM?  As an industry leader in quality maintenance, IBM has years of experience, a global reach and advanced analytics.   Drawing on our expertise, we can serve as a trusted advisor and share our knowledge of maintenance lifecycle management with you.  We have over three decades of experience supporting multivendor equipment and partnerships with leading vendors. IBM has also studied the lifecycle of hundreds of products, model by model.  IBM delivers multivendor services using the same systems, methods, resources and contact center that are used for IBM products. This means that the service is: –Delivered to the same high standard as other IBM services –Not a subcontracted service

IMS Successes Telco win with EMC IMS offering Background: Installed EMC customer with EMC (NSX) Celerra and EMC CX-240s IBM proposal: In preparing for both sales campaigns, we identified the owners and completed technical meetings with Telco’s operational staff and system administrators. After positioning our capabilities, Telco’s operational owners gave Telco’s Vendor Management team a green light to move forward with IBM support. The final barrier to entry was delivering a competitive pricing to Telco’s Vendor Management team and was achieved using our IMS offering. After gaining both Telco’s operational staff's approval on our capabilities and financial approvals, Telco awarded IBM the business. Result: Win Both wins are entry points into Telco’s EMC environment with growth potential after a period of successful hardware maintenance support IBM won because we approached the sales process correctly and satisfied both Telco teams with vested interests in support Land and Expand!

IMS Successes Bank win with EMC IMS offering Background: Installed EMC customer with EMC Arrays IBM winning proposal: We had to hold a customer meeting with their storage platform team and answer very detailed questions. I t was important to have the right team on that call and in that meeting. If we failed at that meeting then we were not going to win. We had Mike Callaway the CSE and the CDS team on that call. The questions were such that we were required to comeback with the answers to their questions, Which we did and likely satisfactory Single aggressive price point per serial number, not per Terabyte Result: Win This was the first EMC and MVS deal at State outside of the our networking support that we currently do for Cisco, F5 and Juniper. Won on pricing and our response to their questions with the right and appropriate answers. Automotive win with Brocade IMS offering Background: This lead came in from the field SSR, Greg Lovato, as a result of a conversation he had with the client IBM proposal: This was an IMS deal for 9 Brocade switches. Result: Win We added them to their current maintenance contract. Target Revenue win.

IMS Successes Retail win with EMC IMS offering Background: Installed EMC customer with EMC CX, DMX and VMAX EMC offered to give away 1.5 M USD in 2014 Maintenance if customer upgraded installed EMC to new EMC storage IBM winning proposal: IBM team saved the customer > 50% over the EMC maintenance offering Included IBM Multi-Vendor (MVS) support for existing EMC equipment during the transition and migration to IBM VSC and XIV storage IBM EMC MVS offering was Single aggressive price point per serial number, not per Terabyte No special SOW or contract needed for CX and DMX equipment TIP credits were used to cover the support costs Included drive retention and unit disposal Result: Win IBM team won an all-IBM storage solution and responded to the EMC proposal with a competitively priced, easy-to-sell, easy-to-bid solution that supports the EMC storage during the migration Started as Contain and Replace, with STG working Life Cycle Management Evolved into Land and Expand! Still growing!