1. Q2 2016 Tier 2 Storage Programmes & Initiatives Pack Version 1 Completed by: Dominic Cole Europe IOT Storage Channel Manager Mobile: (+44) 07711 058716 Email: dominic_cole@uk.ibm.com

2. 2 Pack amendments summary: From Q1 2016 V2 to Q2 2016 V1 Please run this presentation in slide show mode to activate the hyperlinks ! –NEW Storwize Flash Drive and “Full Feature Software Bundle” incentive (now includes V5030) –EXTENDED Storwize “Trade In” program (ending 30/06/2016) – now includes ‘old’ V5000 and V3700 –EXTENDED Brocade and CISCO SAN incentives –UPDATED Storage “FLAPE”program (ending 31/12/2016) – now includes all [LTO] tape libraries –UPDATED Storage “Energyzer” program (ending 31/12/2016) – now includes new V50x0 models –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. 3 Programmes & Initiatives Type of Initiative NameDescriptionFor more information Expiry Date Transaction al Programs 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 CEEcountries T2 Resellers (ZWEP5194H) Ongoing Value Seller PLUS program Entitled and earned discounts off list price requiring little or no IBM approval. Up to 78% 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.”P”, which are shown in the latest Storage Product table / list ValueSeller PLUS Storage product table Ongoing T2 2016 Performance Program(s) Eligible T2 partners can earn rebates for achieving sales targets and service level objectives. The program is designed around the principle of "pay for value" to deliver higher earnings potential for T2 partners who focus on growing revenue in key areas such as Storwize and Flash Systems products and sales into Enterprise, Mid-Market and new [FIE] customers. 2016 T2 Incentive Pack 31.12.16 [CHW] Deal Registration Mandatory approval required for any access to special bids or to earn the Registration Adder within Value Seller. Submit the DR requests via the PSAT tool. Deal Registration document Ongoing Investment Programs 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 Exhibit Ongoing

4. 4 Name of ProgramDescriptionFor more information: Expiry Date 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 Storwize Trade IN program This program rewards IBM Business Partners for the sale of Storwize machines when it replaces an “old” IBM storage system, a non-IBM storage system or if the V7000 is connected to a CISCO UCS server environment. Please see PLET for details of the current rebate and reward incentives. [Q2 2016] Storwize Trade IN program 30.06.16 VersaStack Incentive IBM Business Partner Tier 2 Resellers will receive an additional discount of 10% 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. ZWEP5678D VersaStack Incentive 30.06.16 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) 31.12.16 Solutions Accelerator Program 5% storage hardware rebate and 15% software rebate 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 new products being added. Solution Accelerator IncentiveSolution Accelerator Incentive and ZW13-0363 Ongoing Promotions - CHW

5. 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) 31.12.16 Storwize SSD and Compression program IBM Storage Systems Business Partners who purchase an eligible IBM Storwize product, together with a minimum of 6 Flash (SSD) drives,will be eligible to receive one ‘free of charge’ copy of the full bundle Storwize S/W license. This program has now been extended to V5030, in addition to V7000. ZWEP6118B - IBM Storwize Flash/SSD drive and Full software Bundle promotion 31.12.16 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 Q1 2016 target. T2 Solution Providers who are already Specialty or Specialty ELITE Partners are not eligible for this incentive program. PGI Program 2016 - ZWEP6004B (2016) PGI Program description 31.12.16 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 2016 - ZWEP6031A Specialty Website 31.12.16 Business Growth Fund (BGF) The BGF program is available to some eligible T2 partners to support their marketing and demand generation activities for IBM hardware products. BGF Program description 31.12.16 Know Your IBM – The KYI program Earn points for education on eligible storage products – convert points into cash prizes. KYI Program description Ongoing Other Promotions and Programs

6. 6 Deal Registration – An approved Deal Registration is needed to earn the Registration Adder in Value Seller PLUS – Special Bids 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” program can pay up to 24% NRM on eligible 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. 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 GuideGuarantee Administration Guide Compression Guarantee continues

8. 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

9. Storwize V7000 Compression Guarantees Compared NEW Estimate-Free Guarantee Existing Flexible Guarantee Offered withNew Storwize V7000 systems (with all RtC HW installed), at time of purchase %Savings Guaranteed Fixed 50% Compression & Thin- Provisioning system-level savings Set Based on Comprestimator reports Up to 80% system-level Compression savings Performance Guarantee NoYes Based on Disk Magic report Data Analysis Required No Seller can provide the guarantee instantly Yes By AskRtC email alias (3 business days) Qualification Requirements Follow 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

10. 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.

11. 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: Z126-5857-XX-3 07-2015 (XX=country)  Administrator’s guide – SSISSI  New “Estimate-Free” (aka Blanket) Compression Guarantee (starts this week)  Contract template ID: Z126-6973-XX-1 07-2015 (XX=country)  Administrator’s guide – will be posted on SSI & PW by 8/1

12. 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)1256 344 500 How to get a new Business Partner registered with IBM Open the following PW web page and follow the documented process:- https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/pw_av_res_index How to access the IBM Kaon Product 3D animation service Open the following web page and select your chosen product:- https://apps.kaonadn.net/4882011/index.html#C181 http://m.kaon.com/c/ib/aCDwBQhttp://m.kaon.com/c/ib/aCDwBQ (specifically for Versastack) Business Partner PSAT Tool:- http://powerstorage.presalesadvisor.com/Login Business Partner Locator Tool:- https://www-304.ibm.com/partnerworld/wps/bplocator/landing

13. 13 Back Up Slides

14. Systems Storage Education links –IBM Systems Storage Sales Education: –BP: http://www.ibm.com/services/weblectures/dlv/smartzone/storagesaleshttp://www.ibm.com/services/weblectures/dlv/smartzone/storagesales –Internal: http://lt.be.ibm.com/smartzone/storagesaleshttp://lt.be.ibm.com/smartzone/storagesales –IBM Systems Storage Technical Sales Education: –BP: http://www.ibm.com/services/weblectures/dlv/smartzone/storagetech –Internal: http://lt.be.ibm.com/smartzone/storagetechhttp://lt.be.ibm.com/smartzone/storagetech Know Your IBM – The KYI program Earn points for completion of education on eligible storage products – convert points into cash prizes. KYI Program description Ongoing

15. Link:- Overview Storage Enablement Offerings

16. 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 ESCCCOMM@de.ibm.com or IBMCCMPL@fr.ibm.com:  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 2016. Don't hesitate to join us. Link:- Overview Storage Enablement Offerings

17. Smart ZONE resources on Spectrum Family SDS/IBM Spectrum Storage Family Enablement TrainingIBM Link SDS Overview Training (May 2014 - 30 Minutes)ltu46711http://lt.be.ibm.com/stg/ltu46711 IBM Software-Defined Storage Announcement (Feb 2015 - 60 Minutes)ltu48368http://lt.be.ibm.com/stg/ltu48368 IBM SDS vs EMC ViPR SDS Strategy (Nov 2014 - 60 Minutes)ltu47758http://lt.be.ibm.com/stg/ltu47758 IBM Spectrum Storage Product Family Deep Dive (Mar 2015 - 60 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 2015 - 60 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 2015 - 60 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 2015 - 60 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 2015 - 60 Minutes)ltu48980http://lt.be.ibm.com/stg/ltu48980 Engage for Success - IBM Spectrum Accelerate (Feb 2015 - 90 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 2015 - 60 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 2015 - 65 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 2014 - 45 Minutes)ltu47963http://lt.be.ibm.com/stg/ltu47963

18. IBM Software Defined Storage Top Gun (SDSTG) - 2016 18 April 11.04.2016 - 15.04.2016 DACH Germany / Mainz Yes May 09.05.2016 - 13.05.2016 MEA Egypt / Cairo Yes May 23.05.2016 - 27.05.2016 Italy Italy / Segrate Yes June 06.06.2016 - 10.06.2016 BeNeLux tbd pending July 04.07.2016 - 08.07.2016 SPGI Spain/Madrid Yes September 05.09.2016 - 09.09.2016 Nordic Finland / Helsinki pending October 24.10.2016 - 28.10.2016 MEA UAE / Dubai ( Abu Dhabi ?) Yes

19. ValueSeller (pricing) model – from April 2016 :- 19

20. PLEASE NOTE:- The “FIE" and “Solution Margin” adders cannot be combined within the same transaction. FIE adder only applies to BP-Led sales. * First In Enterprise / Versastack Adder, the “FIE" adder is applicable to sales of IBM storage products into new / competitive accounts, OR when the sale is into, or with, CISCO UCS Integrated Infrastructure to create a Versastack (denoted by specific feature code in a Storwize configuration). ** Software Adder, the "Software Adder" is applicable to all deals containing >35% software. Exceptions are DS8K Microcode software and Stand- alone software deals. PLEASE NOTE:- The “FIE" and “Solution Margin” adders cannot be combined within the same transaction. FIE adder only applies to BP-Led sales. * First In Enterprise / Versastack Adder, the “FIE" adder is applicable to sales of IBM storage products into new / competitive accounts, OR when the sale is into, or with, CISCO UCS Integrated Infrastructure to create a Versastack (denoted by specific feature code in a Storwize configuration). ** Software Adder, the "Software Adder" is applicable to all deals containing >35% software. Exceptions are DS8K Microcode software and Stand- alone software deals. ‘Pay for Value’ Program for Solution Providers selling Storage T2 View 20 Solution Margin Adder (SW) ** 6% Bid CodeMargin CategoryBP Discount off End User Price All products Standard Margin 18%12% Base Margin16%10% First in Enterprise (FIE) OR VersaStack adder * 6%

21. IBM SAN programs (please use hyperlinks) Brocade SAN Incentives for Q2 2016 CISCO IBM Incentives for Q2 2016 Please use the following links to access the SAN programs for Q2 16 :- The SAN programs have been extended to the end of Q2 2016