1. What’s new??? Brian Kielty bkielty@us.ibm.com Programs & Promotions Summary October 12 th, 2011

2. © 2011 IBM Corporation Building a smarter planet 2 BladeCenter Foundation for Cloud (BCF10) 511-409 511-409  New BladeCenter Foundation Incentive – 10% Incentive“BCF10” – 10% incentive on key BladeCenter Foundation solution elements – Back-end – based on EDI reporting – Requires minimum set of eligible parts on same invoice date – Incentive pays on Blades, Chassis and Select BCF solution options – Incentive rewards up-selling to 10Gb and virtual fabric solutions 2 Must have minimum quantities of these… Qty 1 BladeCenter H Chassis (8852xxx) Qty 4 Blades HS22, HS22V, HX5 (7870xxx,7871xxx,7872xxx, 7873xxx) Qty 1x3550 M3 Management Node (7944DDU) *Via EDI Reporting – same invoice and/or same invoice date To earn rebate on these… Chassis, Blades, Management Node… plus Core Chassis Options (10Gb Ethernet and 8Gb FC switches) Core Blade Options (10Gb and 8Gb I/O cards) Open Fabric Manager software Dynamic Racks (for ship-load capability through distributors) All quantities to same end-user on same invoice date. Sell the minimum configuration and earn 10% net rev rebate Enhance the solution with eligible adapters, switches, software utilities, and a rack Get paid 10% net rev rebate on everything

3. © 2011 IBM Corporation Building a smarter planet 3 BCF10 - Full Options Listing 3 Starter Kit for Cloud x86 edition Per Managed Server with 1 Year Software 00D4658 Subscription and Support Per Managed Server with 3 Year Software 00D4658 Subscription and Support Racks IBM S2 42U Dynamic Racks 9956-xxx IBM 42U Enterprise Racks 9308-xxx IBM 42U 1200mm Deep Dynamic Rack 9360-xxx IBM 25U Racks 9307-25U IBM 11U Office Enablement Kit 2018-86X 10Gb Ethernet Adapters Broadcom 10Gb Gen2 4-port Ethernet (CFFh) 46M6164 Broadcom 10Gb Gen2 2-port Ethernet (CFFh) 46M6168 Broadcom 2 port 10Gb Virtual Fabric 2 (CFFh) 81Y3133 Brocade 2 port 10GbE Converged Network Card 81Y1650 Emulex Virtual Fabric Adapter (CFFh) 49Y4235 Emulex 10GbE Virtual Fabric Adapter 2 90Y3550 Emulex 10GbE Virtual Fabric Adapter 2 Adv. 90Y3566 Intel 10Gb 2-port Ethernet Expansion (CFFh) 42C1810 Mellanox 2-port 10Gb Ethernet (CFFh) 90Y3570 QLogic 2-port 10Gb Converged Network (CFFh) 42C1830 10Gb Ethernet Switches BNT Virtual Fabric 10Gb Switch Module 46C7191 Brocade Converged 10GbE Switch Module 69Y1909 Cisco Nexus 4001i Switch Module 46M6071 S/W Upgrade License for Cisco Nexus 4001i 49Y9983 Fibre Channel Adapters Emulex 8Gb FC Expansion Card (CIOv) 46M6140 Emulex iSCSI/FCoE Virtual Fabric Upgrade 49Y4265 Emulex iSCSI/FCoE Virtual Fabric Adapter 49Y4275 QLogic Ethernet and 8Gb FC Card (CFFh) 44X1940 QLogic 8Gb Fibre FC Card (CIOv) 44X1945 QLogic Virtual Fabric Extension Module 46M6172 Fibre Channel Switches Brocade 20-port 8Gb SAN Switch Module 44X1920 Brocade Enterprise 20-port 8Gb SAN Switch 42C1828 Brocade 10-port 8Gb SAN Switch Module 44X1921 QLogic 20-port 4/8 Gb SAN Switch Module 88Y6406 BladeCenter Software Utilities IBM BladeCenter Open Fabric Manager 46C3552 - Advanced Upgrade for IBM Director IBM BladeCenter Open Fabric Manager 46C3551 - Advanced Upgrade IBM BladeCenter Open Fabric Manager 44W3981 IBM BladeCenter Open Fabric Manager 2019B1X IBM BladeCenter Open Fabric Manager 4812S3X 3.0 - Advanced Upgrade IBM BladeCenter Open Fabric Manager 4812S3D 3.0 - Advanced Upgrade for IBM Director Must have minimum quantities of these… Qty 1BladeCenter H Chassis Qty 4Blades (HS22, HS22V, HX5) Qty 1x3550 M3 Management Node *Via EDI Reporting – same invoice and/or same invoice date To earn rebate on these… Chassis, Blades, Management Node… plus Core Chassis Options (10Gb Ethernet and 8Gb FC switches) Core Blade Options (10Gb and 8Gb I/O cards) Open Fabric Manager software Dynamic Racks (for ship-load capability through distributors) All quantities to same end-user on same invoice date.

4. © 2011 IBM Corporation 4 The Evolution of NCB  January 2011 –Added additional 2% back end net revenue rebate to the existing 4% Bid Code PTW discount  April 2011 –Increased backend net revenue rebate to 4% –Increased backend net revenue rebate for Blade servers to 6%  June 2011 –Increased backend net revenue rebate for BNT switches to 6%  August 2011 !!! –Provide flexibility to “opt in”, if desired, for an enhanced front end Bid Code process in exchange for NCB back end rebates

5. © 2011 IBM Corporation 5 If the BP Takes No actionIf the BP does “opt in” NCB 4Q Game Plan  4% PTW Bid Code On Grid Pricing  0% if Off Grid transaction Bid Code Discount Back End Rebate  If the BP “opts in” for enhanced Bid Codes, they will not receive NCB net revenue back end rebates  4% System x net revenue back end rebate  6% Blade chassis & server net revenue back end rebate  6% BNT switch net revenue back end rebate  BP must “opt in” by submitting form to Trade One  No action needs to be taken if BP wants to remain with the current mix of NCB front end Bid Codes plus NCB net revenue back end rebates Option for Enhanced Bid Code Bid Code Discount  7% PTW Bid Code On Grid Pricing for all products (System x and Storage)  10% PTW Bid Code for selected Blade Servers and Chassis Back End Rebate Option for Enhanced Bid Code  BPs can opt in once per calendar quarter  After a BP opts in, their election will not change unless they opt out (at least one calendar quarter in the future).  To opt in, BPs must submit a form (in announcement letter) to Trade One. Trade One will reply/activate the BP within 2 business days. The decision to opt in is an enterprise decision; therefore, ALL LocIDs for the BP will be activated at once  New NCB customer approval numbers for existing approvals will be assigned. Trade One will send an email with a link to the reassigned customer approval numbers. Business As Usual with…

6. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 6 New Customer Bonus (NCB) Price To Win upfront discount and additional net revenue backend rebate for BPs who do not “opt in” for enhanced Bid Codes) BPs that do not “opt in” Price To Win upfront discount and additional net revenue backend rebate  6% net revenue back end rebate for eligible Blade servers, chassis, and IBM BNT Switches  4% net revenue back end rebate or all other System x products  2% net revenue back end rebate for Storage based on end user sales reporting  Plus additional 4% upfront Price To Win Bid Code discount (when the transaction is a PTW On Grid transaction) Bid Code ProductDiscount NCBX0711A System x 4% NCBS0711AStorage4% BPs that “opt in” Price To Win upfront discounts but no additional net revenue backend rebate  10% Bid Code discount for eligible Blade servers and chassis  7% Bid Code discount for all other eligible System x products and IBM BNT Switches  7% Bid Code discount for eligible Storage Bid Code ProductDiscount NCBEB0811A Blade Servers and Chassis 10% NCBEX0811ASystem x and BNT Switches 7% NCBES0811AStorage 7%

7. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 7 New Customer Bonus (NCB) 511-353511-353 NCB Frequently Asked Questions for BPs that “Opt in”  How do I “Opt in”? –Send the form from the announcement letter to Trade One  How soon will I be activated to begin using the enhanced Bid Codes once I “Opt in”? –Trade One will activate requests within 2 Business Days once they receive the request form. The BP will be assigned new approval numbers for their previously approved nominations. Trade One will send an email to the BP with a link to the approval numbers to use with the enhanced Bid Codes  Once activated for enhanced Bid Codes will I still receive NCB net revenue Back End Rebates? –Once Trade One sends the link with the BPs new customer approval numbers, Trade One will no longer pay NCB back end rebates to the BPs that “Opt in”  How often can I “Opt in” or “Opt out” if I had previously chosen to “Opt in”? –One time only total per calendar quarter. Once opted in, the BP stays opted in unless they decide to opt out. (must wait until at least the next calendar quarter if the BP decides to opt back out).  If my company has several different LOCIDs, can I pick and choose which LocIDs to “Opt in”? –Once the BP makes an election to “Opt in”, it is an enterprise decision and all of their LocIDs will be activated for enhanced Bid Codes and will no longer receive net revenue rebates in NCB from Trade One

8. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 8 New Customer Bonus (NCB) 511-353511-353 NCB Frequently Asked Questions for BPs that do not “Opt in”  How are the net revenue backend rebates paid for BPs who do not “opt in”? –The backend rebates are calculated using end user sales reporting data. The BP merely does their EDI or web based end user sales reporting and rebate checks are issued monthly from TradeOne Marketing on behalf of IBM  How do I also receive the 4% Price To Win Bid Code discount off list price for purchases of eligible products for approved new customers if I choose not to “opt in”? –When ordering from your Distributor, submit the New Customer incentive Bid Code NCBX0710A and your customer approval number (for System x approved new customer purchases of eligible System x products) and/or –When ordering from your Distributor, submit the New Customer incentive Bid Code NCBS0710A and your customer approval number (for System Storage approved new customer purchases of eligible System Storage products)  Who’s a new customer? –Customer revenue of less than $25K in System x products from any source for the System x incentive and/or HV Storage products for the System Storage incentive in the last 12 months to qualify. –Approved customers are eligible for 12 months from date of approval and can be re-nominated after 12 months if they still meet the qualification criteria of customer revenue of less than $25K in the last 12 months. –Registration and approved nomination required www.ncbprogram.com (an approval email response is sent from Trade One with the customer approval number and approval date)www.ncbprogram.com  When can the back end net revenue rebate be combined with the front end PTW Bid Code upfront discount? –Back end rebates based on end user sales reporting are always paid even when Special Bid pricing exists. The front end PTW Bid Code upfront 4% discount is available on PTW Grid 1,2,3 pricing but is not available with “off grid” Special Bid pricing.  Does the BP have to hit a certain sales revenue bar with the new customer before they earn a payment? –For approved NCB customers, BPs earn net revenue backend rebates based on their end user sales reporting and are eligible for NCB Price To Win Bid Code upfront discounts from dollar one! –No NCB incentive earnings caps exist during the 12 month period that the customer is approved –The customer must be nominated prior to the sale in order for the sale to be eligible for payments –Announcement modifications are effective on the day of the announcement

9. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 9 No Charge BladeCenter Chassis First In Location Promotion 511-290511-290 July 5 th, 2011 through January 4 th, 2012 (nominations must be submitted by December 23 rd ) Nominate FIL customers no later than December 23 rd, 2011 (no 8677xxx, 8852xxx, or 8886xxx purchases in previous 12 months to qualify as an approved end user)Nominate Sell an eligible BladeCenter chassis to your approved BladeCenter chassis FIL customer Document the eligible FIL BladeCenter chassis sale to the approved FIL customer via normal EDI or Web based End User sales reporting tools Receive Net Revenue Back End Rebate for the chassis Limit of 5 rebates per customer enterprise All eligible sales to a single location must occur at the same time on a single End User invoice New for 2011 - Electronic nomination form via web link http://www.filnominations.com http://www.filnominations.com New for 2011 - BPs will not be required to provide “paper” rebate request form Customer enterprise = 5 total spread out (allocated) through all locations owned by the customer Targeted products SEO Description number  BladeCenter E Chassis 86773TU  BladeCenter E Chassis 86774TU  BladeCenter H Chassis 88524TU  BladeCenter S Chassis 88861TU The competition is running for cover!

10. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 10 BladeCenter Chassis FIL promo 511-290511-290 Frequently Asked Questions How do I request approval for my end user location? –We made it simple. No emails to send and no claim forms to submit after the sale! Go to the following web site and submit the simple on line form: http://www.filnominations.com BPs can also call 800-477-6756 Trade One (IBM Promotional Marketing Center) if they need assistance.http://www.filnominations.com  What is the deadline for submitting requests? December 23 rd !!! –All requests for approval must be submitted no later than December 23 rd !!!  What is the deadline for invoicing an approved end user for the sale of an eligible chassis? –All approved end users must be invoiced for eligible product by January4th 2012!!!  How many FIL end users can a BP request approval for? –BPs should request approval for all their chassis opportunities.  How many promotional rebates can a BP receive? –Provided the Ts&Cs of the promo are met, the BP can receive an unlimited number of rebates! The only restriction is 5 chassis per end user enterprise and if more than 1 of the 5 chassis is sold to a single location, they must be sold together, on the same invoice, at the same time, in the same simultaneous transaction.

11. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 11 System x and High Volume Storage BP Led incentive 511-292511-292 Offer System x and High Volume Storage Business Partners can receive a Bid Code discount of 2% of the IBM List Price of eligible products from their Distributor when they acquire eligible products for approved BP Led end users System x and High Volume System Storage BP Led Approvals -BPs can request approval for end users by utilizing the “approval request” web link that is published in the announcement letter http://www.bpledapprovalrequests.comhttp://www.bpledapprovalrequests.com -Approved IBM System x and/or High Volume System Storage BP Led End Users are valid from the BP Led End User’s approval date, or until IBM provides at least 30 days notice that the approval is no longer valid  2% System x Bid Code: BPLX0711A  2% High Volume System Storage Bid Code:BPLS0711A * Provide the applicable Bid Code and System x and/or High Volume System Storage BP Led End User approval number when ordering from your Distributor  How do I access my end user approval numbers? –Business Partners can go to their Trade One Portal sign in, click on the “Reports” drop down menu at the top of the page and select BP Led. BPs can also call 800-477-6756 Trade One (IBM Promotional Marketing Center) if they need assistance.Trade One Portal  Who’s a BP Led end user? –End Users are classified as Business Partner Led End Users if they do not appear on the IBM-led list.  How long are my approved BP Led end user approval numbers valid? –Business Partner Led approval numbers will not expire, unless an End User is reclassified by IBM. Business Partners will receive 30 days notice that previously issued Business Partner Led approval numbers will expire.

12. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 12 Express + Options Promo 511-222511-222  Option Up – Get rewarded !  Sell an eligible System x Express server with eligible System x options and receive a back-end rebate for 10% of the web price of the options Fine print Sell as many eligible options with eligible System x Express servers as possible The Express server and Options must be sold/EDI reported at the same time on the same end user invoice Eligible Systems Tower Express servers x3200M3, x3400M3, x3500M3 Rack Express servers 3250M3, x3550M3, x3620 M3, x3630M3, x3650M3 High End Express servers x3690 X5, x3850X5 Blades and Chassis HX5, HS22V, HS22, BC-S Chassis Options Rebate All 10% of List

13. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 13 IBM Brocade Host Bus Adapter Promotion 511-276 511-276 Targeted products Backend Description SEO Part Rebate IBM Brocade 8Gb single port FC HBA 46M6049 $75 IBM Brocade 8Gb dual port FC HBA 46M6050 $75 IBM Brocade 10Gb FCoCEE dual port CNA 42C1820 $75 Sell it, report it, get a rebate! Ends 12/31

14. © 2011 IBM Corporation Smarter systems for a Smarter Planet 14 System x Rack UPS promotion 511-194511-194 System x Rack UPS –In today's high availability server environments, unplanned power outages or line quality irregularities can have a considerable financial impact on small, medium, and large enterprise businesses. Selecting the right uninterruptible power supply (UPS) can efficiently, reliably, and affordably help protect against these potentially costly incidents. Features: –System x 5395 Rack UPS offerings come in space-efficient designs. These models are equipped to meet the requirements of your highest availability systems with geography-specific high- voltage and low-voltage solutions available. 14 Will your servers be protected when the power goes off???

15. © 2011 IBM Corporation System x – BladeCenter - iDataPlex System x Rack UPS Promotion 511-194 511-194 15 Will your servers be protected when the power goes off??? May 10 th through Oct 31st 10% Bid Code in addition to Price to Win Discounts Bid Code UPS0511 ~35% off with PTW discounts Stacks with other discounts! New Customer Bonus Express Options Discount Trade-One rebates Eligible Rack UPSs 53951AXIBM 1500VA LCD 2U Rack UPS (100V/120V) 53952AXIBM 2200VA LCD 2U Rack UPS (100V/120V) 53953AXIBM 3000VA LCD 3U Rack UPS (100V/120V) 53953JXIBM 3000VA LCD 3U Rack UPS (200V/208V) 53956AXIBM 6000VA LCD 4U Rack UPS (200V/208V) 53959KXIBM 11000VA LCD 5U Rack UPS (200V/208V/230V) (Price To Win Bid Code incentive discounts are valid for PTW grid transactions only and are not eligible for products that have Special Bid or off grid pricing)

16. © 2011 IBM Corporation 16 42% off Fusion-io 320GB ioMemory module 511-180 511-180 Fusion-io ioDrive DUO 320GB promo Off the chart database performance on eX5 at an attractive price IBM’s highest performance storage solution for applications demanding greater IOPs or bandwidth – e.g. database, data warehouse, analytics "Seldom have I seen technology advances that win in almost every way at the same time, in terms of speed, capacity, reliability, endurance, power usage and simplicity. The products from Fusion-io are extremely useful to so many different applications, not to mention most of the world’s servers.“ Steve Wozniak, Chief Scientist, Fusion-io Based on solid state Flash technologyStandard PCIe form factor supports a broad set of IBM servers 238,000 Mixed IOPs and 1.5GB/sec throughput per adapter with microsecond latency Can deploy multiple cards per serverNonvolatile – maintains data when there is a power cut Delivers the performance of thousands of disk drives in a single server Integrates with servers at the system bus and kernel level, creating a new Flash memory tier Not an SSD (Solid State Disk) - easily outperforms dozens of SSDs and a single server Accelerates applications, improves response times, and boosts efficiency Currently for 64bit Linux and Windows VMware ESX 4.0/4.1/ESXi 4.1 supported by Fusion-io

17. © 2011 IBM Corporation 17 42% off Fusion-io 320GB ioMemory module 511-180 Fusion-io ioDrive DUO 320GB promo Go Green and Save in more ways than one with a 320GB ioMemory module The Challenge - Poorly performing databases cause many problems including: Slow applications, resulting in customer and staff complaints or even lost sales. Slow reporting and business intelligence queries, resulting in lost productivity, poor market awareness, or slow time-to-market DBA frustration rerunning overnight maintenance tasks that didn’t complete on time or that stopped during the night. The Solution - Benefits of ioMemory products include: Highest IOPS and bandwidth with the lowest latency from a single device. Customer can easily expect: Performance that scales linearly with more devices 3-10x faster query processing 3-10x faster replication The Green Solution X3850 X5 X3690 X5 46M0878 List Price Promo Price with rebate $18,359 $10,650

18. © 2011 IBM Corporation 18 42% off Fusion-io 320GB ioMemory module 511-180  42% off list price with back end rebate on the Fusion-io ioDrive DUO 320GB DUO module –Limited Time Back End Rebate Promotion – May 3 rd thru October 31 th SEO Eligible Product part ListPromotional Description number priceprice with rebate IBM 320GB High IOPS SD Class SSD PCIe Adapter46M0878$18,359$10,650 For a limited time only, eligible IBM Business Partners can receive rebates for EDI or Web-Based reported sales, to End Users, on the IBM 320GB High IOPS SD Class module. The amount of a rebate will be equal to the difference between the price the IBM Business Partner paid for an eligible switch, and its promotional price, which represents a 42% discount off the IBM Web price.  Leverage this High IOPS promo to greatly increase performance of databases & data warehousing applications on eX5 Enterprise Servers  No Limits on Quantities sold!!  Can deploy multiple cards per server!! Fusion-io ioDrive DUO 320GB promo

19. System x – BladeCenter – iDataPlex – High Volume Storage © 2011 IBM Corporation 19 Blade Center Foundation for Cloud (BCF10) 511-409 (back-end rebate) 10% net revenue back end rebate for selling solutions that include: 1 H chassis, 4 Blades HS22,HS22V, or HX5, 1 x3550. Eligible Starter Kit for Cloud software, Racks, Ethernet and Fibre switches and adapters, and Blade software utilities part numbers are also eligible. Public Sector customers are not eligible BP Led incentive 511-292 (Price To Win upfront discount) Price to Win Bid Code promo for 2% off List Price when ordering eligible System x and High Volume System Storage product with Price To Win grid pricing. Present the 2% Bid Code for System x BPLX0711A and/or BPLS0711A for High Volume Storage and the BP Led end user approval number to your Distributor when ordering eligible parts. Requests for Public Sector end user approval are approved when eligible. Requests for BP Led end user approvals: http://www.bpledapprovalrequests.com http://www.bpledapprovalrequests.com System x & Storage New Customer Bonus 511-353 (Price To Win upfront discount and additional net revenue back-end rebate) Earn upfront 4% discount off List Price via Bid Code NCBX0710A (System x Bid Code) and/or NCBS0710A (System Storage Bid Code) for on PTW grid pricing purchases on eligible products for approved new customers. Earn additional 6% backend rebate based on net revenue for eligible Blade servers and BNT switches. 4% on all other System x product. Earn 2% back end net revenue rebate for eligible Storage products… or, “opt in” to receive enhanced Bid Codes of 10% with Bid Code NCBEW0811A, 7% on System x and BNT switches NCBEX0811A, and 7% on Storage NCBES0811A. BPs who “opt in” for enhanced Bid Codes will not receive net revenue rebates in NCB. Customers must have less than $25K in purchases in the previous 12 months to qualify. Must nominate customer before purchase is made. New customers are eligible for 12 months from their approval date. Public Sector customers are not eligiblenominate customer System x and HV Storage Growth incentive 511-307 (net revenue back-end rebate) System x and HV Storage products net revenue rebate: To qualify: $25K in System x 12 months previous revenue to participate and receive a target..7% rebate on all eligible sales. Linear progression payment from 71% of target to 125% of target. Earn a total of 1.8% on all eligible sales for achieving 125% of target. System x targets based on 12.9% uplift over same quarter previous year revenue or $250K whichever is greater. HV Storage targets are based on 38.5% uplift over same quarter previous year revenue or $250K whichever is greater. Public Sector customers are not eligible eX5 Business Partner Investment Program 511-399 (Price To Win upfront discount and additional net revenue back-end rebate) Earn a 2% upfront discount off List Price via Bid Code eX50710A for on PTW grid pricing purchases on eligible products from any Distributor. Earn an additional 2% backend rebate based on net revenue for all eligible product purchases from Primary Distributor. eX5 BP requirements: purchases of $500K in 2010 for all eligible products combined or $250K in eligible Blades to qualify for 2011. On site demos, sales and product knowledge certification, and selection of a primary Distributor also required to qualify. Receive an upfront discount of 2% off list price with Bid Code eX50710A for eligible products purchased with PTW grid pricing from any Distributor. Additional 2% net revenue rebate for purchases from Primary Distributor. Public Sector customers are not eligible for net revenue rebates Channel Evaluation Program for Business Partners 511-394 (Price To Win upfront discount) Earn a 20% upfront discount off List Price via Bid Code EVAL0710A for on PTW grid pricing purchases on eligible products for approved evaluations. Evaluation systems must be pre-approved. Approved iDataPlex configurations are available for evaluation but not eligible for Bid Code payments. The BP can offer their end user customer the opportunity to evaluate the system for up to 90 days. Returns have a 5% return fee except selected eligible products that are approved for a 45 days no fee evaluation. Express Seller product is excluded. Evaluations may be requested at the program Web site http://www.evalone.comhttp://www.evalone.com

20. System x – BladeCenter – iDataPlex – High Volume Storage © 2011 IBM Corporation 20 Incentives and Short Term PROMOTIONS Technology Access Program 511-252 Obtain discounted products from IBM for internal use and demonstration or development purposes. Eligible products include selected System x, BladeCenter, and HV Storage products. Available to IBM Resellers, Solution Providers and Distributors. Back end rebates of 20% - 45% depending on the product. Selected IBM BNT Switches 80% (limit 2). Software, ServicePacs, Cell Blades, and iDataPlex are excluded. Public Sector customers are not eligible Public Sector Fee incentive 511-423 Eligible Business Partners will receive a fee payment when eligible Public Sector End Users purchase eligible IBM System x, BladeCenter, iDataPlex, and HV System Storage products directly from IBM. A customer notification form must be communicated by the BP to the customer notifying the customer that the BP might receive a fee. The notifications must be renewed every twelve months. Fees range from 2% to 6.5% depending on product. Refer to announcement letter for eligible government contracts. Eligible BP name, System x LocID, and government contract number must be included on every PO submitted. Express server with options promo 511-222 (Back-end rebate) 10% off the List Price back end rebate based on eligible options parts that are sold at the same time on the same invoice with an eligible Express server. Public Sector customers are not eligible BladeCenter Chassis FIL promo 511-290 (back-end rebate) ENDS 01/04/12 Back end net revenue rebate for eligible chassis for approved FIL end users. Approved end users must be nominated prior to the sale. Limit of 5 chassis per customer enterprise. Nominate by 12/23/11 and invoice by 01/04/12. Publ ic Sector customers are not eligible IBM Brocade HBA promo 511-276 (back-end rebate) ENDS 12/31/11 $75 back end rebate each eligible Brocade HBA sold. Public Sector customers are not eligible System x Rack UPS promo 511-194 (Price To Win upfront discount) ENDS 10/31/11 Price to Win Bid Code promo for 10% off List Price when ordering eligible System x Rack Ups with Price To Win grid pricing. Present 10% Bid Code UPS0511 to Distributor when ordering eligible parts. Public Sector customers are not eligible Fusion IO Adapter promotion 511-180 (net revenue back-end rebate) ENDS 10/31/11 Back end rebate equal to the difference between the price the IBM Business Partner paid for an eligible adapter, and its promotional price, which represents a 42% discount off the list price. 46M0878. Public Sector customers are not eligible

21. © 2011 IBM Corporation Building a smarter planet 21 2011 Incentives and Limited Time Promotions Landscape 21 JanFebMarchAprilMayJuneJulyAugSeptOctNovDec New Customer Bonus New Customer Bonus – Opt-in for All-Up-Front 7%x &10% Blade Express + Options New Customer BonusNew Customer BonusJuly EnhancedAugust Enhanced IBM Brocade HBA promo Blade Focus Reseller Growth Incentive On-Going Offers Rack & Power UPS Focus Option Focus BladeCenter First-in-Location Free Chassis Channel EvalChannel Eval, TAP, Public Sector Fee, Specialty, Pre-Sales ServicesTAPPublic Sector FeeSpecialtyPre-Sales Services eX5 BP Program Fusion IO Adapter BP Led incentive BladeCenter BladeCenter Foundation – 10% incentive

22. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 22 eX5 BP 511-399 (Price To Win upfront discount and additional net revenue backend rebate)511-399 Incentive payment process:  Earn an upfront Price To Win 2% discount off List Price via Price To Win Bid Code eX50710A for on PTW grid pricing purchases on eligible products from any Distributor  Business Partners must present their eX5 Bid Code number (eX50710A) and their eX5 Business Partner authorization number (BP enterprise number) to their Distributor when placing an order for eligible product in order to receive the 2% upfront discount off List Price for the PTW eX5 Bid Code.  Price To Win Bid Code incentive discounts are not eligible for products that have Special Bid pricing (off Price To Win Grid pricing)  Also earn an additional 2% net revenue backend rebate for purchases of eligible products from Primary Distributor Requirements  $500K revenue in 2010 for all eligible products combined or $250K in Blades to meet revenue requirement to participate in 2011  Meet and maintain defined sales and technical support competency commitments  Select a primary IBM Distributor for back end rebate eligible product acquisition and have qualifying demonstration systems on site Primary IBM Distributor selection  Must select primary IBM Distributor during the application process Incentive Bid Codes are not combinable with off PTW grid Special Bid pricing

23. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 23 Achieve $25K or more in 2010 or the previous qtr to qualify for the incentive 70% or less attainment =.7% incentive eX5 BPs are also eligible to participate System x and HV Storage Growth Incentive 511-307 (net revenue back end rebate)511-307 .7% net revenue back end rebate on all eligible System x and HV Storage end user sales  See the table below for payouts for 71% to 125% of the quarterly 2011 System x and HV Storage sales revenue targets  System x target is based on 12.9% uplift of pervious year same qtr revenue and HV Storage is based on a 38.5% uplift of the same qtr previous year revenue or $250K whichever is greater  BPs w/o targets who achieve at least $250K eligible revenue in the current qtr will be paid as if assigned a $250K min target

24. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 24 Channel Evaluation Program 511-394 (Price To Win)511-394 Program Overview BPs offer their End Users a pre-approved on-site evaluation of System x, BladeCenter, iDataPlex and HV System Storage products (excluding Express server models) Maximum evaluation period of up to 90 days from the date the evaluation is approved by IBM. Business Partners can receive an upfront Price To Win Bid Code incentive discount off list price when ordering approved Channel Evaluation product from your Distributor. iDataPlex evaluations can be requested but iDataPlex is not eligible for the Channel Evaluation Bid Code discount. iDataPlex receives special pricing through Cluster Pricing Order Management (CPOM) Channel Evaluation Price To Win Bid Code incentive discount process: Nominate your evaluation configuration for approval http://www.evalone.comhttp://www.evalone.com When ordering an evaluation configuration from your Distributor, Business Partners must submit: The Channel Evaluation incentive Bid Code number EVAL0710A The evaluation job number (assigned when the evaluation is approved) The approval email (sent when the evaluation is approved) Incentive Structure Evaluations per Business Partner Enterprise are governed by a quarterly ticket release system. Each evaluation ticket will be active for a predetermined number of evaluations based upon the quarter in which it is released. Tickets expire when channel evaluation products are returned to IBM, or when the predetermined number of evaluations is reached. If the pre-approved Channel Evaluation product is returned, there is a Return Fee of 5% except for selected eligible products that are approved for 45 days no return fee. Two sales rewards tickets will be released per BP at the close of the first, second and third quarters if at least 75% of their year-to-date evaluations have resulted in a sale. 45 days “no return fee” x3400 M3 7379xxx x3500 M3 7380xxx x3550 M3 7944xxx x3620 M3 7376xxx x3630 M3 7377xxx x3650 M3 7945xxx Product Max Options Product Max options 1 socket servers 122 socket servers 12 4+socket rack servers 48 2 socket Blade servers12 2+socket HX5 Blade servers 20BladeCenter chassis 14 iDataPlex N/A System Storage products 8

25. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 25 Technology Access Program (TAP) 511-252511-252  TAP rebate plus Bid Index allowance equals eligible percentage off List discount. Discounts are as follows: System x Product Groups QTY Discount Selected IBM BNT Network Switches 1-2 80% System x Servers & Blades 1-240% (Any standard model) 3-12 20% System x Racks 1-240% System x Racks 2-1220% Options 1-1640% Options 17-9620% HV System Storage Description Part # Qty Discount DS3400 1726xxx 1-2 40% 3-12 20% EXP3000 1727xxx1-2 20% 3-12 15% DS3500, EXP3500, EXP25001746xxx, 1747xxx 1-2 45% 3-12 35% DS4000 EXP810 181281H 1-2 45% 3-12 38% TS2900 Tape Library 3572xxx 1-2 45% 3-12 38% TS3100, TS3200 Tape Library3573xxx 1-2 45% 3-12 38% TS2230 Tape Library 3580xxx 1-2 38% 3-12 33% TS2240, TS2340Tape Library 3580xxx 1-2 45% TS2250, TS2350 Tape Library 3-12 38% Options1-1645% Options17-9638% The Technology Access Program (TAP) offers selected PartnerWorld members the ability to buy System x servers, BladeCenter products, selected HV System Storage products, and options at discounts off the IBM Web price minus bid index % for internal use, demonstration or development purposes. Rebate claims must be submitted within 45 days of invoice to receive a payment. TAP claim form Discount Example Blade / High-End Server List Price $1,000 Bid Index Discount $ 140 14% TAP Rebate $ 260 26% Total Discount $ 400 40% OFF LIST

26. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 26 Public Sector Fee incentive 511-423511-423  Business Partners must notify the customer that the BP might receive a fee from IBM and the BP must provide IBM with a copy of the customer notification. Customer notifications must be renewed once every twelve months and IBM provided with a copy of the renewal notification.  The Business Partner’s name, valid System x LocID, and eligible contract number must be included on every end user PO  Apply for Public Sector sales eligibility www.pc.ibm.com/partner/us/ibmbpapplic/public_feeoffer.htmlwww.pc.ibm.com/partner/us/ibmbpapplic/public_feeoffer.html ProductRate System x and BladeCenter Options Third party software purchased from IBM: VMware, Altiris, Red Hat Linux, SUSE Linux, Remote Deployment Manager (RDM) 6.5% High-Performance Systems System x3690 X5, x3755 M3, x3850 X5, x3690 X5 Servers 5% BladeCenter and Chassis BladeCenter S, E, H, T, HT Chassis, HS22, HS22V, HX5, HC10 6.5% High Volume Server Systems System x3250 M4, x3400 M3, x3500 M3, 3550 M3, 3620 M3, 3630 M3, 3650 M3, Smart Cube Servers 3.5% Entry High Volume Servers System x3100 M4 Servers 3.0% System x and BladeCenter Express Models 2.0% iDataPlex 3.0% HV System Storage DS3000, DS3200, DS3300, DS3400, DS3500, DS4000TM, DS4200, DS4700, DS4000TM EXP810, LTO, SAN 3.0% HV System Storage Express DS4000, LTO, SAN 2.0% bkielty@us.ibm.com

27. © 2011 IBM Corporation IBM System x - BladeCenter – iDataPlex 27 System x Specialty – North America 511-073511-073  System x Specialty – available since May 2010  System x Specialty – accreditation benefits… 1.Specialty Mark 2.Additional education and certification vouchers 3.Additional Business Partner Technical Vitality (BPTV) points will be awarded to the Business Partner’s company score 4.Access to Pre-sales Support Deal Hub without Clip Levels 5.Systems Connect eXpert Benefits for an identified System x Champion For complete information on System x Specialty enrollment, benefits, and details, please refer to the PartnerWorld specialty website: https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/isv_com_spe_sysx_resel_start Each IOT/geography has its own System x Specialty Benefits