1. IBM Power Breakfast May 2017
Iva Salamunovic
SEE SW Renewals Team Leader 1

2. Software Subscription and Support (S&S) Agenda
IBM S&S benefits
S&S Timeline
Renewal Value Incentive
Pricing Objections
Partial renewals 2 2

3. IBM Software Subscription and Support
Features and benefits at a glance
IBM Software Subscription
Access new technology via software enhancements
Gain the flexibility to update or upgrade on your schedule
Get rapid access to new releases, fixes and updates
Receive electronic notifications
IBM Technical Support
Take advantage of rapid response for severity 1 issue resolution
Access live person support in 140 languages to help with deployments, migrations and code questions
Access global coverage and 24x7 software technical support
Leverage online support and tools
While the software subscription gives a download access to a newer version, our customers can leverage IBM support to understand how to upgrade.
It gives customers the ability to get the new releases of our products, take their current applications, make sure that they are secure in today's environment and get the innovation that IBM is putting in the product, which provides them benefits like better performance, better security, better ease of use, lower cost to maintain and run their applications.
ibm.com/software/subscriptionandsupport 3 3 3 3

4. >4,000 #1 USD6B+ USD3B+ IBM invests in your success
Help maximize your software investments with IBM Software Subscription and Support
USD6B+ #1
in R&D investments annually
in patents each of the past 22 years
>4,000
USD3B+
IBM invests an incredible amount in research and development. On an annual basis, it's over $6 billion.
20 years of patent leadership…..led the way …..continue to do this in CAMS Space – Cloud, Analytics, Mobile, Security …..see this in Acquisitions
Continue to lead in Patent awards
of IBM support experts worldwide
invested annually in software development through >35,000 developers
That investment is rolled right back into your software in the form of:
Updates, enhancements and fixes
Improving current technologies – in anticipation of new ways of computing
Addressing rapidly changing IT needs in solution areas as diverse as Cloud computing, social, mobile, data management, storage, security and analytics 4 4 4

5. Software Subscription & Support
A BOLD way to protect and grow your install revenue
S&S Renewal is a reason to revisit your client
Strengthen customer loyalty
Provides up-sell and cross-sell opportunity
Uncover services opportunities
It allows you to grow your installed base
Understand your client’s technology plans
On time renewal = better earnings (RVI)

6. Start the renewal process early
Channel renewal timeline
180 days 6 mths before renewal
Contact your top priority clients
Confirm budgets, projects, license requirements and issues
Sometimes more 180 days
115 days before renewal
Log on to Passport Advantage Online, and download your renewal quote
Forecast with IBM S&S Rep
days before renewal
Reminder s from IBM, 45 and 60 days before renewal
Forecast with IBM S&S Rep
30 days before renewal
IBM VAD & BP send reminder s
Forecast with IBM S&S Rep
*** Discuss higher pricing Re-instatement ***
4–5 days before renewal
Inform clients less than a week to renew
Grace period extension approval will be an exception
*****Cancellation letter ****
15 days before renewal
IBM sends another reminder
VAD and BP working with client
Forecast with IBM S&S
Regions following this process have the best renewal rates.
Stage days out
We ask that you start contacting your TOP customers early to uncover
Any issues in renewing and to confirm your customers intend to
Renew on time. At this stage discuss with your customers the
Possible reinstatement of old licenses and offer your services
For upgrades, updates etc and ask if there are other opptys you
Could be working on with your customers.
Stage days out – FORECASTING STARTS (with your VAD)
Ask your VADs for renewal quotes or go to Passport Advantage
On-line and download your customers who have renewals due
Stage 3 – days out – FORECAST (with your VAD)
IBM Starts sending reminder to customers in order to renew.
Stage days out – FORECAST (with your VAD)
REMIND your customers of the renewal that’s due and again check
And confirm there are no issues with renewing on time (send a letter
I’ve attached later in preso the details of what IBM sends out)
Stage days out – FORECAST (with your VAD)
2nd Reminder goes out from IBM and the BP should do the same
Last stage 5 – 4-5 days out - FORECAST (with your VAD) *
Let IBM rep and VAD know if you are going to need a support extension letter or
A GPE, start this process early and give your IBM rep & VAD a clear message
On where the oppty is at. Please note that grace period extension will be granted only on exception basis.
If this is NOT done Auto Renewal will take place.
** ideal world is to get to a point where almost all of your S&S deals are done on
Time and you have less work to do and the costs are less if you’re not doing GPE’s
And support extension letters. 6 6 6 6 6

7. Visit the Software Subscription and Support resource center
Find ready-to-use presentations to share with prospects and clients
Access Replays of S&S Conference Calls on Key Topics
ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_isss 7 7

8. IBM Business Partners – not for external use
S&S Pricing Model
- Price of the Renewal is List Price
- Clients new license discount carried to S&S
- Small yty uplift V discounting so clients can deploy, recoup initial license cost
- Standard uplift so client can budget yty (10%)
IBM Business Partners – not for external use

9. What is Renewal Value Incentive?
A rebate-based incentive offering for Business Partners (BPs) to reward for reselling IBM Passport Advantage Software Subscription & Support (S&S) where the new license was originally sold with value ( since January 2008)
Benefits of RVI:
Nurture ongoing customer relationships
Increase profit opportunities
Increase and win S&S (renewals) sales
Criteria for program approval:
Be a member of PartnerWorld
Be an authorized Value Added Reseller in Software Value Plus (SVP) for the Product Group(s) of the S&S products in the order
Participate in one or more IBM value programs:
IBM Software Value Incentive (SVI), and/or
Value Advantage Plus (standard or Government), and/or
Capability / Industry Solutions Incåentive
Received a value add incentive for the New License associated with the renewal through one or more of the above IBM value programs
Demonstrate ongoing customer engagement and sales value add associated with the renewal
Place the renewal order before the anniversary date
To keep the rebate:
Meet the RVI program compliance criteria 9

10. Partial renewals
Helps clients meet software compliance regulations and demonstrates good business practices
Provides baseline inventory for better asset management
Helps identify deployments
Enables more effective procurement and contract negotiations
Provides future S&S savings on unused licenses
Enhances your clients’ understanding of IBM’s software licensing terms and conditions
It’s the right thing to do
We’re responsible for protecting IBM’s intellectual property
Returning shareholder value enables future investments in research
and development 10 10 10

11. Partial renewals PA Terms - Recap
Focus currently only on Passport Advantage non ELA and Passport Express
Based on the New PA 9 contact terms : .
“If Client requests to renew expiring IBM Software Subscription and Support at a lesser quantity of IBM Program uses and installations than the expiring quantity, Client must provide a report that verifies current IBM Program usage and installation, and may be required to provide other compliance verification information.”
A ‘partial renewal’ is understood to be a request by the customer to renew a lesser quantity on a line item on a renewal that is due. As opposed to not renewing an item fully. For example 100 quantity is due but customer requests to renew only 50. 11 11 11

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