1. © 2009 IBM Corporation The Subscription & Support : (S&S) What's in it for our Business Partners Michelle Lyness

2. © 2009 IBM Corporation 2 Agenda ► Why is S&S important to Business Partners ► What does IBM offer compared to the competition ► What happens if I don’t renew? ► On Time Renewals (Best Practice) ► Significant enhancements from July 18 ► Passport Advantage Express – Why Migrate ? ► Why cant I access my renewal information ► Why is my customer not renewing ► What can I do about this ► Acquisitions How Is IBM Investing in more products for your to sell. ► Recourses and Tools available for Business Partners & VADs PartnerWorld VAD Portal Business Partner Locator Grow your own Business Business Partner Profitability Tool IBM Global Finance ► IBM Internal Tools that help you – Channel Dashboard ► IBM Channel Forecasting ► Passport Advantage On-line 2

3. © 2009 IBM Corporation 3 http://www.youtube.com/watch?v=yQfps3x9ts8www.youtube.com/watch?v=yQfps3x9ts8 IBM Software Subscription and Support: Relax, Renew, Recharge!

4. © 2009 IBM Corporation 4 What does a sale cost a Business Partner ? 1.Business Partners will gain the greatest RIO when they sell products they have skill in to customers they know. 2.Even though there’s less margin paid on renewals the cost of sale is significantly less offering the BP a good return overall. 3.Selling S&S, additional licenses or other products the BP has skill in to customers they know is by the far the most cost effective and profitable model 4.Based on the profit v’s cost model in the Diagram, S&S is a key to a BP’s over all ability to grow and remain profitable 5.Making sure S&S is paid on time also ensures a steady predicable cash flow. Cash flow is vital to a BP’s success. What fits here ? 1.S&S 2.Additional licenses 3.Reinstatements 4.Services (upgrades, product development or enhancements) What fits here ? Complementary products (eg. Selling Rational Development tools to WebSphere App Server customers ) Cross-Sell (eg.DB2 to Lotus Portal customers) Black HoleNo Profit

5. © 2009 IBM Corporation Main Differences between IBM and Competitors when it comes to S&S ► IBM (standard Passport Advantage Program Complete Support and Subscription solution 24x7 for severity one’s Unlimited callers Unlimited calls (phone support) Discounts on S&S are allowed ► Microsoft (within their Ent. Agreement/Software Assurance Subscription (access to new versions) and support not included (web support only) 24x7 support extra cost Phone support cost extra Microsoft, Oracle, CA, among others do not discount S&S Some do not allow partners to earn margin on S&S YouTube Video on how to download upgrades http://www.youtube.com/watch?v=HuatqV8jpu4 YouTube Video on the Value of Software & Subscription for your customers http://www.youtube.com/watch?v=32lpEl-65R8 & http://www.youtube.com/watch?v=tKZAx_vtbRohttp://www.youtube.com/watch?v=32lpEl-65R8http://www.youtube.com/watch?v=tKZAx_vtbRo

6. © 2009 IBM Corporation 6 Why should customers renew on time….. - Re-instatement cost will be around 3x the amount of their yearly renewal cost Loss of New Software Features & Functionalities Loss of Technical Resources Software Compliance Concerns Software Obsolescence (withdrawn products) Risk & Cost involved when a production environment fails with no support contract in place. Employee Satisfaction & Productivity (eg.running old versions) Revenue loss

7. © 2009 IBM Corporation 7 Expiration Renewal Notice Confirmation Letter Support Extension Letter Reinstatement Quotation +90 days Client Call -90 days-30 days-10 days GPE (Grace Period Extension) BPs should start calling Customers 6 months in advance Check with Software Renewal Rep on whether end user has raised any PMRs Are there any orders that are “With Sales for Review”? Ensure you’re across all renewals for the qtr. Schedule a BOM review with top accounts & IBM Renewal Rep -180 Days Is there a large deal in play? Is the client committed to renew? Confirm with Renewal Rep we have send to CEO and/or CIO? Have we asked SWG Exec to call on the client? Client no longer entitled to support. Resend confirmation letter if necessary. Reinstatement pricing should client want to renew at a later date. Confirm if your customers is a part of the WW Strategic Account List? 75 days Access to Renewal Quote +6days Auto Invoice @ 6 days after the renewal is due IBM will auto invoice the customer at RRP /IBM pricing. Channel Renewal Cycle – Best Practice Collection +10-15 days Contact customers for collection. Let renewal team know to turn off Auto renewal.

8. © 2009 IBM Corporation 8 ► “all or nothing” S&S requirement Per product per site For licenses that are “in service” = “being used in any way for any purpose whatsoever” Trust, as today, but subject to audit ► Removal of 500 point entry requirement (PA only) Provides customer choice (PA or PA Express) regardless of initial order size Accommodates smaller customers who want a single renewal per year Addresses the discounting needs of customers who will start small but expect to grow ► Coverage for upcoming enhancements to support delivery models Development of more, and more sophisticated, self help and self diagnosis tools Shift toward more electronic support models – efficiencies for both customers and IBM  IBM’s Support Portal, how to on YouTube http://www.youtube.com/watch?v=0VzVfdKA8zo&NR=1 Significant enhancements from July 18 2011

9. © 2009 IBM Corporation 9 Passport Advantage - Why Migrate? Passport Advantage (PPA) What you get if you migrate….to Passport Advantage Express (PAE) NO MIN Points to Join (exception Government, Education & Additional Sites to an existing PPA Site & XSP Hosting sites) No points to Join All PPA License Parts will have a point value attached to them which is listed under “item points” in your price book and they accumulate over a 12 month period Under PAE customers DO NOT accumulate points. Single Anniversary Date (software will align automatically) Note the Anniversary date is determined by the first sale and anniversary dates can ONLY be changed once at a customers request. Less confusion PAE customers have a different renewal date for every purchase which occurs 12 months from date of the original purchase date. PAE customers are unable to align or change renewal/anniversary dates) SAP ID for PPA looks like this 55555-7777777 55555 (Contract Number ) - 7777777 (Site Number) 7777777 Site number ONLY no ability to have different departments or locations attached to 1 account Cognos - Government and RRP ONLYRRP Pricing ONLY and that never changes Passport Advantage On-Line Tutorial http://download.boulder.ibm.com/ibmdl/pub/software/passportadv antage/demos/English_Tutorial/english_pa.html http://download.boulder.ibm.com/ibmdl/pub/software/passportadv antage/demos/English_Tutorial/english_pa.html PPA Enrollment Form required URL - http://www- 01.ibm.com/software/lotus/passportadvantage/howtoenroll.html Suitable for Large Corporate, Education & Government customers Passport Advantage Agreements & Forms http://www- 01.ibm.com/software/lotus/passportadvantage/agreementsandforms.html URL Quick Reference Guide to PPA http://www- 01.ibm.com/software/lotus/passportadvantage/brochures_faqs_qui ckguides.html Sale Mastery Test – Please complete this if you have not done so already. PartnerWorld www.ibm.com/certify/mastery_tests/index.shtml. The test number is M231.

10. © 2009 IBM Corporation 10 SP Partners & FCT What are the Differences ? FCT (Flexible Contract Terms)Support Provider No points to Join Under FCT customers will not accumulate points.Under SP customers will not accumulate points. FCT customers will have a different renewal date for every purchase which occurs 12 months from date of the original purchase date. (PAE customers are unable to align or change renewal/anniversary dates) SP customers will have a different renewal date for every purchase which occurs 12 months from date of the original purchase date. (SP customers are unable to align or change renewal/anniversary dates) 7777777 Site number ONLY FCT PricingSP Pricing No Enrollment Form required Separate Program to PA Different Contract + different Ts & Cs Support Provider Model Overview: Separate Program to PA Different Contract + different Ts & Cs Reseller purchases software and holds entitlement IBM have no relationship with enduser No outputs are sent to enduser Reseller provides support to enduser IBM provides level 3 support to reseller [Reseller's contract states they provide level 1 and 2 support to their end users. Reseller would contact ibm on behalf of their end user customers for any level 3 issues] Reseller downloads software – no downloads visible to enduser

11. © 2009 IBM Corporation 11 RSVP Program Point Levels Note. You can only slip to BL level if you’re already in the PPA program. There is no option to join Passport Advantage without a 500 point purchase.

12. © 2009 IBM Corporation 12 Why is Software missing from my renewal quote 1.Part renewal from the year before. (customer ordered less than they own) 2.Pro-rate licenses missed the year before 3.FCT/PPA Migration Licenses process has not bee completed 4.Customer has a multiple SAP IDs 5.Name change 6.Merger with another company What can I do about this 1.Work with your IBM rep to get details of license missed licenses (BOM Team and look at the Reinstatement Oppty) 2.Sell renewals to the Anniversary Date. 3.Work with FCT rep to confirm Acquisition products are all there 4.Confirm name changes if any ? 5.Confirm all SAP ID’s when requesting information on customers

13. © 2009 IBM Corporation 13 Why is my customer not renewing? 1.Migrating to another vendor’s product 2.No budget ?? 3.Software doesn't do what IBM says it can 4.Company no longer in business 5.Company reducing in size (Part Renewals) 6.See’s no value in Subscription & Support 7.Client has a project that has been delayed and has yet to implement the software

14. © 2009 IBM Corporation 14 How do I handle some of these objections to renewing 1. Migrating to another product – ALWAYS confirm reason the customer moved to another platform and confirm 100% that migration has taken place. (make sure customer has support during transition process, to rip and replace can take 6-12 months) 2. No budget – Explain the costs of no support/subscription and reinstatement and understand the cost to the business if the there’s a support or patch requirement. Sometimes considering the cost of not renewing can establish a need and uncover budget 3. Software doesn't do what IBM says it can or not implemented? - Work with the IBM technical team to get the software working for the customer and make sure they see value in IBM software. 4. Company no longer in business - Find out if the company has been sold to someone else as they’re entitled to still pay for S&S and use the software 5. Company reducing in size (Part Renewals) - Oppty for compliance, increase price if they buy less 6. See’s no value in Subscription & Support - show the PMR report and Product Road Map)

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16. © 2009 IBM Corporation 16 Getting Started Guide for New Business Partners Your feedback?

17. © 2009 IBM Corporation 17 VAD Portal: Acquisitions Corner www.ibm.com/partnerworld/vadwww.ibm.com/partnerworld/vad - Selling tab Resources for VADs to facilitate integration and Business Partner readiness for new IBM Software acquisitions Includes: New! Quick Reference Sheets or “VAD Blueprints” for BP readiness Key dates Reseller Authorization Group Certifications required …and more VAD 101 Guide Acquisitions summaries VAD Briefing presentations Acquisitions PartnerWorld page link

18. © 2009 IBM Corporation 18 Business Partner Locator 18 http:// www-304.ibm.com/partnerworld/wps/bplocator/search.jsp?search_cc=au

19. © 2009 IBM Corporation A Business Partner with expertise in Will be presented with this list of potential cross-sell products Up-sell/Cross-sell: Use the “Grow Your Business” tool www.ibm.com/partnerworld/growyourbusiness Highlights 275+ products / all brands 650+ cross-sell scenarios Software-to-software and hardware-to-software pairings Suggested pairings based on existing skills, return on investment, market demand, education Midmarket and Large Enterprise segmentation 9 languages available: Chinese, English, French, German, Italian, Japanese, Korean, Spanish, Portuguese

20. © 2009 IBM Corporation 20 Business Partner Profitability Tool Objective: To help Business Partners evaluate IBM Software product offerings and how those offerings can increase ROI / business growth Audience: VADs, Business Partners, and IBM VAD/Business Partner Reps Web-based Modeling Tool to understand investments and ROI Includes 90 Mid-Market focused offerings and growing Base assumptions built-in (i.e. skill level, avg. deal size, etc.) Customizable / compare multiple scenarios - What will it cost to ramp up on this product? - How long will it take? - When will I see a return? - When does the positive case flow start? - Is this product a fit for our skills and offering portfolio? Solutions Summary Enablement Summary Investment Summary Detail View Customized Assumptions https://www.ibm.com/partnerworld/sw/profitabilitytool Click here to view the training demo and to access the Business Partner Profitability Tool To request a more in-depth demo, email kestin@us.ibm.com

21. © 2009 IBM Corporation 21 Remind BPs to Close Deals with IGF Financing - Countries where the Rapid Online Financing tool is available:Rapid Online Financing Italy Japan Korea Luxembourg Malaysia Mexico Netherlands New Zealand Norway Peru Portugal Singapore Spain Sweden United Kingdom United States Austria Australia Belgium Brazil Canada Chile Columbia Denmark Finland France Germany Hong Kong India Ireland Israel If Rapid Online Financing tool is not available in your country, contact IBM Global Financing for a quote.contact IBM Global Financing The Widget A Quote Calculator Instant Financing Quotes Contract Returned by email – minutes later Distributor website placement IGF financing for Software BPs: As low as 0% for 12 months IBM Global Financing's new podcast series around how they can accelerate their growth with financing

22. © 2009 IBM Corporation 22 ======> Go to Folder: SSD Operations Utilities \ Subscription and Support \ ChannelsGo to Folder: SSD Operations Utilities \ Subscription and Support \ Channels The Channel/S&S Team uses this tool to produce the report Bharath gives you showing S&S coming up for you to close. Ideally VADs should be getting this report a quarter in advance CHANNEL DASHBOARD

23. © 2009 IBM Corporation 23 Forecasting why it’s important & What we need… 23 1.IBM is a Public company as some of you maybe and reporting accurate revenue numbers will be important to IBM and your stock holders. 2.Enables the IBM Team to help close an opportunity if they know what’s needed 3.Allows you to manage cash flow, when you understand when your opportunities are going to close (S&S as well as New License sales) 4.You’re going and have better understanding of when you’re going to get paid commission. Help ! % Description of the stages of the S&S Sale * 20% IDENTIFIED (NOT CONTACTED) 40% IDENTIFIED & CONTACTED 50% STRETCH (Customer has been contacted and looking to renew) * 60% FORECAST - High Risk (chances of not closing is High) * 70% FORECAST - Medium Risk (chances of not closing is Medium) 80% FORECAST - Low Risk (chances of not closing is Low) 90% FORECAST - Solid (NO RISK) 100% SALE COMPLETE & INVOICED What we need… 1. Accurate forecasting every two weeks (weekly toward end of Quarter) to your Distributor on the progress of the renewal opportunity. 2. Just a simple spread sheet using the stages above and comments where required. The Channel and Software Subscription & Support

24. © 2009 IBM Corporation Passport Advantage on-line (Overview) Michelle Lyness

25. © 2009 IBM Corporation 25 Agenda ► Support Provider Software Download option ► Reporting (All BP’s Support Provider BP’s and VADs) ► Accessing Renewal Quotes for your customers DO NOT PASS ONTO YOUR END USERS YouTube Video on how to use Passport Advantage On-Line for End Users http://www.youtube.com/watch?v=ryV5Bk3XBYU

26. © 2009 IBM Corporation 26 Instructions on how a Support Provider BP can download Software, Software Updates, Fixes & patches. (Note this is the same process for end users if a BP would like to help them through the process)

27. © 2009 IBM Corporation 27 Software Downloads for Resellers [Support Provider Model] ► A new partner support provider model outside of the existing Passport Advantage/Passport Advantage Express programs was created as part of Aspen ► Support Provider Model Overview: Separate Program to PA Different Contract + different Ts & Cs Reseller purchases software and holds entitlement IBM have no relationship with enduser No outputs are sent to enduser Reseller provides support to enduser IBM provides level 3 support to reseller [Reseller's contract states they provide level 1 and 2 support to their end users. Reseller would contact ibm on behalf of their end user customers for any level 3 issues] Reseller downloads software – no downloads visible to enduser

28. © 2009 IBM Corporation Passport Advantage On-Line for Business Partners Log on Page: - Customers & VADs & Business Partners (VARs) http://www- 01.ibm.com/software/lotus/passportadvantag e/ Step 1. Request log on id and password Step 2. Sign on and you will access to the following Price Book & Quoting Tool Reporting -- allows you to view agreement information and generate reports of customer activity. Account management -- enables your primary and secondary contacts to grant access to additional users of Passport Advantage Online for resellers. Reference -- keeps you updated on the Passport Advantage program with the latest enhancements, presentations and overviews. Need Assistance -- includes worldwide contact information for our eCustomer For your IBM registration user ID and password for Passport Advantage Online for resellers, please contact eCustomer Care.eCustomer Care BP Sign On http://www-01.ibm.com/software/howtobuy/passportadvantage/pao_biz_partners.htm

29. © 2009 IBM Corporation 29 PAO for Resellers (Home page)

30. © 2009 IBM Corporation 30 Software download will only appear in the left navigation for software value net Partners

31. © 2009 IBM Corporation 31 Overview page defaults, similar to the customer experience Download finder and set my preferences are also available

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35. © 2009 IBM Corporation 35 Reporting

36. © 2009 IBM Corporation 36 Reseller Reporting overview ► Reporting allows you to view agreement information and generate reports of customer activity ► There are three Reporting selections available Passport Advantage Customers Passport Advantage Express Customers Active Renewal quotes ► It is possible to select one or multiple customers and for those that there is an existing relationship, generate reports of order history. It is also possible to generate reports for active renewal quotes in which you are participating

37. © 2009 IBM Corporation 37 Reseller reporting determines who is logged in, the Partner type, if partner is named on the quote, if Partner access flag is Yes, if Partner is prior year reseller

38. © 2009 IBM Corporation 38 Select Reporting from left navigator

39. © 2009 IBM Corporation 39 Generating Reports of PA/PAE customer activity 1. Select Customer Type

40. © 2009 IBM Corporation 40 Generating Reports of PA/PAE customer activity 2. Agreement/Site number search - provide Customer Information

41. © 2009 IBM Corporation 41 Generating Reports of PA/PAE customer activity 2. Or Customer attribute search – provide customer name etc. You can enter partial or complete name to find customer information. Please note that you can only search by entering customer name if you are the designated Partner or you have sales relationship with this customer. Otherwise you have to enter the Agreement and Site Number

42. © 2009 IBM Corporation 42 Generating Reports of PA/PAE customer activity 3. Review Results

43. © 2009 IBM Corporation 43 Generating Reports of PA/PAE customer activity 4. View Customer Details

44. © 2009 IBM Corporation 44 Generating Reports of PA/PAE customer activity 4. View Customer Details View following contacts: Primary Proof of Entitlement SW Subscription and Support Media Shipping SW Subscription and Support Renewal Billing Site Technical Please note that it is not possible to view the contact information if you are not the designated Partner or you do not have a sales relationship with the customer

45. © 2009 IBM Corporation 45 Generating Reports of PA/PAE customer activity 4. View Customer Details Possible to view the basic customer enrollment details on the customer tab

46. © 2009 IBM Corporation 46 Generating Reports of PA/PAE customer activity 5. To view customer Order History, check the SELECT box, and hit Generate Report Please note: You can only generate reports for customers with which you have a relationship. The link to generate a report will not appear if there is no relationship

47. © 2009 IBM Corporation 47 Generating Reports of PA/PAE customer activity 5. To view customer Order History, check the SELECT box, and hit Generate Report

48. © 2009 IBM Corporation 48 Generating Reports of PA/PAE customer activity 6. Specify reporting criteria - You can save your selection as default

49. © 2009 IBM Corporation 49 Generating Reports of PA/PAE customer activity 7. Submit Summary Report

50. © 2009 IBM Corporation 50 Generating Reports of PA/PAE customer activity 8. Submit Detail Report

51. © 2009 IBM Corporation 51 Generating Reports of PA/PAE customer activity 8. Download Report

52. © 2009 IBM Corporation 52 View Active Renewal Quotes Provide Renewal Criteria – date range for searching by Renewal due date must be within a 5 month period

53. © 2009 IBM Corporation 53 View Active Renewal Quotes 2. Review Results – Summary report

54. © 2009 IBM Corporation 54 View Active Renewal Quotes 2. Review Results – Detail report

55. © 2009 IBM Corporation 55 Summary…. How you add value to IBM Services/Implementation (Most likely cheaper than IBM) Credit On-Site Support (Where IBM charges unless it’s a Severity 1) Access to different people within a business where IBM may not have a relationship BPs & VADs need to Contact customers EARLY!!!!. Engage with your renewal representatives or the Channel Rep to get what help you need. Use Passport Advantage On-Line to access your renewal quotes (BPs & VADs) The Channel and the Renewals Team need to help you engage with IBM Brand Reps when needed. (to make sure customers are getting the most out of their IBM software investment) S&S opportunities are “Warm Leads” that help grow your business in all areas not just software. 70%+ of the “Top 50” revenue deals in 2011 included S&S at the same time. (Direct & Channel) OFFER IBM Finance as often as possible. IBM S&S = steady constant cash flow for your business and IBMs. incentives for VAD’s and BP’s for S&S coming in 2012 for ON TIME RENEWALS (details will be made available as soon as program is approved)

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57. © 2009 IBM Corporation 57 Thank You Merci Grazie Gracias Obrigado Danke English French Russian German Italian Spanish Brazilian Portuguese Arabic Hindi धन्यवाद спасибо شكرا لك Romanian Multumesc

58. © 2009 IBM Corporation 58 Helpful Links ! Passport Advantage Agreements New http://www-01.ibm.com/software/lotus/passportadvantage/pa_agreements.html Passport Advantage Enrollment Forms New http://www-01.ibm.com/software/lotus/passportadvantage/agreementsandforms.htmlhttp://www-01.ibm.com/software/lotus/passportadvantage/agreementsandforms.html Passport Advantage & Passport Advantage Express New: ftp://ftp.software.ibm.com/.../passportadvantage/.../PA_and_PAE_Customer...ftp://ftp.software.ibm.com/.../passportadvantage/.../PA_and_PAE_Customer Passport Advantage - Tutorial http://download.boulder.ibm.com/ibmdl/pub/software/passportadvantage/demos/English_Tutorial/english_pa.html Support Portal http://www-947.ibm.com/support/entry/portal/Overview/Software/Software_support_%28general%29 S&S Sales Links Introducing our series of subscription and support education modules on PartnerWorld designed to help you articulate the overall value of our software and to give you the facts you need to support pricing conversations. https://www-304.ibm.com/partnerworld/wps/servlet/mem/ContentHandler/swg_com_sfw_subscriptionandsupport Our S&S education modules are now in IBM PartnerWorld. http://www.ibm.com/partnerworld/page/swg_com_sfw_subscriptionandsupport http://www.ibm.com/partnerworld/page/swg_com_sfw_subscriptionandsupport