IBM Smart Cloud

© 2011 IBM Corporation

SmartCloud How New SaaS Changes Will Help You Make Money with Cloud in 2012

April 2012

© 2012 IBM Corporation2

Your Presenter

Brian Donovan

Business Unit Executive - SmartCloud for Social Business Channel Sales

Business Unit Executive – ICS ASL Sales

m. +1 303 596 4900o. +1 303 331 4600

[email protected]


Review Agenda● Momentum / Market Overview

● Flagship Offering, Demo and Portfolio of Services

● New SaaS Parts, Order Processing (PGST) with Demo, Pricing, and eCommerce

● New Product Based API's

● Contracting Type – PA or ASL? A bit about ASL and ASL API's

● Cloud Direction for 2012

● New Compensation Models, “The Rule of 78”

● TCO Consideration

● Tools and Resources

● Q/A


● Momentum / Market Overview









● Q/A

Thank you for a stellar year

● Leading Partners

● 76% YtY increase in active resellers● Triple-digit growth in 3 geographies

(North America, NE Europe, SW Europe)

● More signings in one quarter than any other in history

● Over 200% growth YtY in partner channel revenue

● > $100k deals total >$1M ● Birmingham Met, Brunswick,

Apave, Colgate, Shriram, and more

Revenue VolumeInsight FreshTLLogicalis AcuityASI Informatique RealConnectionsMicro Strategies SilversideIntraVision SilanisWipro ASI InformatiqueVAR Group EdgeGuide


Customer Momentum ● 35 new references in 2011● Find them on Partnerworld http://ibm.co/A4PWgf● Spanning industry, geography, enterprise and SMB

http://ibm.co/A4PWgf


€

$126B by the end of 2012

b

>9% of total IT spend by 2015Cloud

Software as a Service (SaaS)

Corporate and enterprise represent 50% of market

CAGR of 25% through 2015

47% of organisations have adopted SaaS 75% intend to do

so over the next few years

$20B by the end of 2012 CAGR of 25% through 2015

InfrastructureServices

Components

2012

Software as a Service

$20B

BusinessProcesses

$126B

50% of total cloud market

is in corporate

andenterprisesegments

30% of total cloud market

is in collaboration

solutions

2008

$47B

Market Analysis – Cloud Computing and SaaS


Market Analysis – SaaS Collaboration

Collaboration represents the number 1 SaaS solution in 2012 across all segments

Organisations see SaaStools as an integrated ecosystem of solutions

User Base ALL <1000 1000-5000 >5000Collaboration Technologies 1 1 1 1Human Resources / Benefits Admin 2 2 1 2Customer Services and Support 3 3 5 4Payroll 4 4 10 5Finance & Accounting 5 5 4 7BI & CPM 6 8 7 3Time and Labour Mgmt 7 9 3 8Salesforce Automation 8 6 9 10Talent and Performance Mgmt 9 13 6 6E-Commerce 10 7 14 13Procurement & Sourcing 11 15 15 8Supply Chain Mgmt 12 11 13 10Supplier Relationship Mgmt 13 14 8 14Mobility Mgmt 14 10 11 12ERP / Manufacturing 15 11 11 16

Governance, and Risk Mgmt 16 15 15 17Treasury and Cash Mgmt 17 17 17 15Product Lifecycle Mgmt 18 18 18 18

User Base ALL <1000 1000-5000 >5000Collaboration Technologies 1 1 1 1Human Resources / Benefits Admin 2 2 1 2Customer Services and Support 3 3 5 4Payroll 4 4 10 5Finance & Accounting 5 5 4 7BI & CPM 6 8 7 3Time and Labour Mgmt 7 9 3 8Salesforce Automation 8 6 9 10Talent and Performance Mgmt 9 13 6 6E-Commerce 10 7 14 13Procurement & Sourcing 11 15 15 8Supply Chain Mgmt 12 11 13 10Supplier Relationship Mgmt 13 14 8 14Mobility Mgmt 14 10 11 12ERP / Manufacturing 15 11 11 16

Governance, and Risk Mgmt 16 15 15 17Treasury and Cash Mgmt 17 17 17 15Product Lifecycle Mgmt 18 18 18 18Relative rank of top 8 SaaS solutions 2012

Top SaaS solutions through 2012 - Global


Market Analysis – SaaS Collaboration

100-300 300-500 500-1000 2500-5000 OVER 5000Aggregated Total 60.5% 64.9% 60.2% 56.7% 50.9%

100-300 300-500 500-1000 2500-5000 OVER 5000Aggregated Total 60.5% 64.9% 60.2% 56.7% 50.9%

User Base 100-300 300-500 500-1000 2500-5000 OVER 5000Email 71.8% 72.8% 69.3% 59.9% 56.5%Web conferencing 67.6% 69.7% 69.5% 69.0% 63.9%Calendaring 64.3% 72.5% 64.1% 57.3% 48.9%Office Suite 69.0% 67.2% 61.2% 51.5% 58.8%Project Management 66.1% 68.2% 66.8% 59.1% 56.3%Business Collaboration 62.0% 67.0% 64.0% 59.4% 57.9%Forums 56.2% 61.9% 56.3% 54.9% 47.1%Communities 57.7% 62.2% 56.9% 56.4% 48.9%Social Networking 55.9% 58.8% 54.4% 53.0% 43.2%Whiteboards 54.8% 62.9% 58.5% 55.5% 44.8%Blogs 54.6% 60.3% 52.3% 52.1% 44.5%Content Tagging 54.7% 63.2% 57.2% 54.5% 44.4%Wikis 51.6% 56.8% 52.5% 54.2% 45.9%

User Base 100-300 300-500 500-1000 2500-5000 OVER 5000Email 71.8% 72.8% 69.3% 59.9% 56.5%Web conferencing 67.6% 69.7% 69.5% 69.0% 63.9%Calendaring 64.3% 72.5% 64.1% 57.3% 48.9%Office Suite 69.0% 67.2% 61.2% 51.5% 58.8%Project Management 66.1% 68.2% 66.8% 59.1% 56.3%Business Collaboration 62.0% 67.0% 64.0% 59.4% 57.9%Forums 56.2% 61.9% 56.3% 54.9% 47.1%Communities 57.7% 62.2% 56.9% 56.4% 48.9%Social Networking 55.9% 58.8% 54.4% 53.0% 43.2%Whiteboards 54.8% 62.9% 58.5% 55.5% 44.8%Blogs 54.6% 60.3% 52.3% 52.1% 44.5%Content Tagging 54.7% 63.2% 57.2% 54.5% 44.4%Wikis 51.6% 56.8% 52.5% 54.2% 45.9%

Extremely strong purchase intentions in all market segments and across the collaboration portfolio

Market ‘Sweet Spot’ is organisations with 100-1000 user base

Particular strength in 300-500 user base organisations

Collaboration tool purchasing intentions 2011 – heat map

1

Market‘Sweet Spot’


Why Customers Bought SaaS Services in 2011

To Extend their Reach...

Across Geographies ● Regardless of IT footprint

To New Audiences ● Seamlessly, securely connecting to customers,

partners, experts outside your corporate network

Supporting New Demographics ● Meeting expectations of a new workforce generation

To Manage a Mobile Workforce● “We couldn't possibly keep up with the rate of mobile

device and browser changes using our own IT staff. That's one reason for us to move to cloud.”


… While Maintaining Flexibility and Control

● Protect and Monitor Sensitive Assets ● Choose the Rate and Pace of Adoption● Mitigate Impact to End Users

● Bridge Applications to the Cloud

Experience the value of social business, limiting startup time and cost


Cloud is a Priority for Our Customers and IBM

One of 4 key growth plays on IBM's 2015 roadmap/plan

80% of Fortune 500 use IBM Cloud Computing

IBM SmartCloud - Helping our customers rethink IT and reinvent business

Foundations Services Solutions


Announcing IBM SmartCloud for Social Business

● Aligning LotusLive with IBM SmartCloud

● Delivering a portfolio of Social Business Solutions in the cloud


Featuring a New Web Presence

ibmcloud.com/social

■ Simple to Navigate

■ Intuitive

■ Coming Soon

New Service Names

IBM SmartCloud

for Social Business

Category Lead Offering

IBM SmartCloud Engage

Bundles

●Engage Advanced (lead with)

●Engage Standard

●Connections●Meetings●Notes●iNotes

●Additional Storage●Traveler

Ala Carte / Add-ons


What Happens to the URLs

URL Behavior as of 3/3

ibmcloud.com Parent SiteLists all IBM SmartCloud SaaS Solutions

ibmcloud.com/social New site3/3 – Site launch in English only~4/3 – Site available in 22 languages

www.lotuslive.com Current SiteRemains active in parallel with new site.Then, will auto-redirect to new site

apps.lotuslive.com ServicesRemains as is.In future, changes to a generic domain to enable resellers to private label











● Q/A


Flagship Offering: IBM SmartCloud Engage● Enterprise-class, security-rich, integrated social and messaging services ● Flexible client options – mobile, browser, tablet, rich client

Files

Meetings Events

Chat

Survey Forms

eMail

Communities

Activities

People

$19-49/user/month $15/user/month

$49/user/month $13.25/user/month*

*Dropbox for teams, $795/year for 5 users

$19-49/user/month $15/user/month

$49/user/month $13.25/user/month*

*Dropbox for teams, $795/year for 5 users

$8 USD per user/per monthIBM SmartCloud for Social Business

● Collaborate quickly and easily beyond the firewall

● Instantly host online meetings (199 attendees), store and share files and manage projects seamlessly in the cloud

● Invite guests—at no additional charge— to participate in your online projects and create communities to make collaborating even easier

● Help improve productivity, deepen customer relationships, generate new ideas faster, and enable a more effective workforce

| © 2012 IBM Corporation

What you get for $8USD/user/month!


DEMO


Boundless collaboration / social networking

user’s company

supplier community

customer council

development community

client

user x’scompany

user y’scompany

user z’scompany

IBM Smart Cloud Collaboration is a true collaboration tool, without boundaries

For one price users can collaborate with anyone across multiple organizations using a range of rich social networking and business tools

Smart Cloud Collaboration is designed to build communities and networks that drive efficiency, collaboration, innovation and relationships across organization boundaries

Free guest connections

Alternative products restrict collaboration to a users own organization

Despite a similar price, users are only able to fully collaborate with a limited scope of users

To collaborate beyond the organization, users still have to rely on email, or other disconnected platforms – increasing overhead, out of date file versions and use of multiple resources for the same data

client

vendor

$8 / month

$10 / month $10 / month $10 / month

$0

$0

Boundary Boundary Boundary


●Upsell opportunities using IBM SmartCloud platform ●Opportunity to provide users with enhanced Social Collaboration capabilities


SmartCloud Social Mobile?

A integrated set of mobile applications providing email, contacts, calendar, instant messaging, meetings, file sharing, application integration, and documents.

SmartCloud Notes

SmartCloud iNotes

SmartCloud Engage

SmartCloud Meetings

SmartCloud Connections

WindowsMobile Blackberry iPhone Android Nokia

WindowsMobile Blackberry iPhone Android Nokia











● Q/A

28

SaaS Concepts and Terminology

SaaS IPLA-Licensed Software (OTC)

License Right-to-Use service (opex) Perpetual or Term (capex)

Quote “value” TCV (total contract value) displayed, payments vary

Total quote is due

Term of sale 1 to 60 months (typically 3-5 years) often sold monthly

Typically license with 12 months S&S

Revenue Recognition Subscription (term of the agrmt) On-demand items (as billed)Remote service (end of 90 days)

License (upfront)S&S (amortized over 12 months)Term (amortized over 12 months)

Governing Agreements Passport + ToU (Terms of Use) + SLA Terms (if applicable)

Passport + IPLA + LI

Renewal Yes (Service), same price as original sale

Yes (S&S),

Part Structure Part types vary as needed by offering Lic+S&S, Renewal, ReinstateOpt: Tradeup, Init & Subsq Term

Passport Points Not applicable – no points generated Applicable - Sale generates PA points

Passport Band Prices Same price in all Bands (including Gov/Academic)

Generally sloped plus Academic and Government

Tiered Pricing Yes Only via RVU, only by exception

New SmartCloud SaaS Parts

● IBM Business System Enhancements Reduce Part Count by 50% ● More flexible system structures● From 109 parts - down to 59

● Subscription Parts ● Tracked per user, per month ● Overage – billed when subscription level has been exceeded

● Flexible Billing Frequency Options● Up Front, Monthly, Quarterly, Annually ● IBM bills the VAD/VAR who then bills the end customer

● VAD/VAR incentives are paid on billings

● Auto-Renewing● Unless cancelled, contract “auto renews” for another subscription period

● Existing Customers ● Will be converted to the new parts upon renewal – no need to move customers mid-term


Enhancement Definition Example Trade-Up Replacing an existing service with a different service

of equal or greater value, and co-terming the end date to the existing service

Customer subscribes to Connections for 50 employees. After 6 months, customer decides to upgrade 10 of the accounts to Engage.

Add-On Quantity (same tier)

Increasing the quantity on a service. The quantity increase does not push the quantity into a new price tier. The end-date is co-termed to the existing service

Customer subscribes to SmartCloud Engage for 50 employees billed monthly for 3 years, After 1 year customer wishes to add 30 more seats for the remaining 2 years of the contract.

Add-On Quantity (tier change)

Increasing the quantity on a service – where the new quantity pushes the quantity into a new price tier. The end-date is co-termed to the existing service.

Customer subscribes to SmartCloud Engage for 90 employees billed monthly for 3 years, After 1 year customer wishes to add 30 more seats for the remaining 2 years of the contract, which pushes them into the first discount tier (10%).

Add-On Service Adding an optional or complimentary service under the same SaaS offering to an existing subscription, and co-terming the end date to the existing service.

Customer subscribes to SmartCloud Notes for one year and wants to add Traveler for a subset of users 2 months after the contract period.

Co-Term Adding a service to a charge agreement from a different SaaS offering and aligning the end-date with an existing, unrelated service.Now everything coordinates to end of month.

Customer subscribes to SmartCloud Engage. They want to subscribe to Lombardi Blueprint as well, but they want their Lombardi service aligned to the same end date as Engage.

Invoice Alignment Adding a service to a charge agreement from a different portfolio. If the invoice schedule of the service aligns with an existing service, both will appear on the same invoice. The service is not co-termed.

Customer subscribes to SmartCloud iNotes with monthly billing. They want to subscribe to Sterling as well, with monthly billing. They want a consolidated invoice with both services.

Other New SaaS Enhancements

Updated TOU

New namesIBM SmartCloud

New Auto-renew clause

New EU data privacy statement

With New Price Tiers

Example: SmartCloud Engage Advanced

List Pricing by Tier: Engage Advanced (Engage+Notes)

$10.00$9.00 $8.50 $8.00 $7.50

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Tier 1 Price Tier 2 Price Tier 3 Price Tier 4 Price Tier 5 Price

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5Seats 1-100 101-1,000 1001-5,000 5001-10000 10,001+Discount: 0% 10% 15% 20% 25%

Lower-touch seat volume discounting that….• Arms Sales with price points that can win business• Reduces number of bids that unnecessarily route to Field Pricing or Brand Pricing• Promotes profitability• PA Band discounts N/A for SaaS


2011 vs 2012 Pricing Structure – Simpler Discounting Approvals

● With 2012 tiered pricing structure, field sales management can approve price points that could only be approved by pricing in 2011

● Streamlined special bid approval process

*Field Sales BUE 25% discount delegation

LL Notes Plus Engage: 2011

$10.00 $10.00 $10.00 $10.00 $10.00

$7.50 $7.50 $7.50 $7.50 $7.50

(<=100) 101-1000 1001-5000 5001-10,000 10,001+Tier

2011 List 2011 after Discount*

Engage Advanced (Engage+Notes): 2012

$10.00$9.00 $8.50 $8.00 $7.50$7.50

$6.75 $6.38 $6.00 $5.63

(<=100) 101-1000 1001-5000 5001-10,000 10,001+Tier

2012 List 2012 after Discount*

● Guides the business partner through the options associated with a SaaS quote ● Provides a coordinated process for VARs and VADs to work together to build quotes, place special

bids, place orders, track service activation, and manage the customer billing.

Enhanced Order Processing Options For Business Partners – New Partner Guided Selling Tool

Build Quote

Special Bid(if needed)

Place Order

Submit provisioning info

ToU Acceptance

ServiceActivation

Rating and Billing

New SaaS configurator - makes it easy for a reseller to build sales quotes and place orders


Enhanced Order Processing Options For Consumers – New eCommerce Site


Supported Plans / Parts for Ecommerce

● The following parts are supported via eCommerce● IBM SmartCloud Engage Advanced● IBM SmartCloud Engage Standard● IBM SmartCloud Connections● IBM SmartCloud Meetings (enterprise deployment, host +199)● IBM SmartCloud Notes

● All other orders must be placed outside of eCommerce● iNotes● Hybrid mail● BES● Additional storage for Connections● Variants of SmartCloud Engage and Meetings (e.g. non-enterprise deployments, host +14, etc.)











● Q/A

We've Been Busy – New Capabilities from last year

■ New Capabilities ‒ Enterprise governance

‒ Richer mobile support – meetings, messaging

‒ Latest social File sharing from IBM Connections

‒ Robust new Messaging administration tools

‒ Integrated Apps enterprise deployment

■ ISV Partnerships‒ Trilog, Teampoint

■ Social Business Toolkit for LotusLive‒ Available now on IBM DeveloperWorks


New Social Business Toolkit – PRODUCT API's

Available on IBM Developer works https://www.ibm.com/developerworks/social/

A single toolkit for integrating apps with the IBM Social Business offerings● Easy to use Web based tool for integration with LotusLive and IBM Conections

APIs● OpenSocial REST APIs and UI extension points

Standards-based security framework (OAuth)

People APIsUse OpenSocial APIs to get access to Profiles and Contacts data

UI ExtensionsAdd your own custom actions to the LotusLive UI

Files APIsUsing the CMIS APIs you can manipulate the powerful LotusLive files store from applications

Communities APIsCreate and manage communities

Meetings APIsStart and Stop meetings from your application and get custom meeting reports

Navigation APIReuse the LotusLive navigation bar in your application for a consistent look/feel


Public or Private Development

IBM SmartCloud APIs are accessible to User Companies or ISVs for extension to another cloud or on-premises service or application.

There are two types of Developers — Private Developers :

● These type of developers will be building an application or extension for use only by their Organization or Company.

● Development does not require communications with the IBM SmartCloud Partner Program

— Public (or ISV) Developers:● These type of developers will be building an application for sale to the public● Public release coordinated with IBM SmartCloud Partner Program to ensure proper

resellers, security and marketing requirements are met● More details on this process later in presentation

What are the IBM SmartCloud Integrations Capabilities

Inside-Out Integrations – Expand capabilities of IBM SmartCloud to include your own offerings – Extend the IBM SmartCloud interface to include jumping off points to your functions.– IBM SmartCloud Extensions – Example : Skype, eXpresso

Outside-In Integrations : – Expand your offering with IBM SmartCloud functionality– Utilize the functions of IBM SmartCloud as an extension of your offerings.– Embed IBM SmartCloud files functionality natively in your own application– IBM SmartCloud API's– Example : SalesForce, Trilog

Hybrid Integrations – Integrate On-Premise and Cloud Solutions– Domino Integration

IBM SmartCloud social business and external collaboration into applications via APIs

— Richer interactions for streamlined decision-making— Bring more people and resources to the challenge or opportunity— Examples: CRM, procurement

Outside - In Integrations - Business Value

Company

Cloud

APIs

APIs

Inside - Out Integrations : Business Value

Business apps depth into IBM SmartCloud— Online collaboration services can be enhanced for specific business

processes and industry challenges— Examples: collaborative contract creation, review and electronic signatures

Company

Cloud

APIs

UI Extensions


IBM SmartCloud Integrated Applications - Infuse Social Capabilities into Business Processes

B2B Commerce Digital Signing ArchivingSelling

SchedulingMeetings

Talking CollaborativeDoc Editing

tm

®


Examples of API calls

Files● Get a list my files● Get a list my collections● Get file details ● Download a file● Upload a file● Get shares for a file● Share file with someone

Activities● Start activity● Update or Delete activity● Searching activities● Add new entry● Create a new To-do

Meetings● Start a meeting● Get meeting details● Join a meeting

Contacts● Get users contacts● Get collections of users

connected to user

Profiles● Get profile record or contact

record for a user● Get profile record for requestor● Get profile details

Communities● Create a community● Update a community● Delete a community● Create bookmarks on a

community● Create a sub-community● Create invitations to join a

community● Create a community forum topic● Add, Update or delete

community members


Tools to Aid Development

Social Business Toolkit— Set of extensible tools and resources for developers who want to incorporate

social capabilities into their applications and business processes

IBM SmartCloud Wiki— Wiki to provided help and support for using and administering IBM SmartCloud

API Explorer— Utility to learn about and experiment with IBM SmartCloud API's without writing

any code

IDR Workshop — Watch Partnerworld for the next workshop for hands on education (Feb 2012)


Onboarding process for ISV Applications

Register with PartnerWorld at — http://www-2000.ibm.com/partnerworld/pwhome.nsf/weblook/pub_join_allBPs.html

Get a Business Partner Demo Account : — http://www.ibm.com/partnerworld/page/isv/IBM SmartCloud

Begin development using your Business Partner Demo account / company

Once you are ready to deploy publically, contact the IBM SmartCloud Partner Team ([email protected]) for:— Advanced or Premier PartnerWorld Account— Security validation— Usability Testing— Marketing requirements— IBM SmartCloud Catalog listing

http://www-2000.ibm.com/partnerworld/pwhome.nsf/weblook/pub_join_allBPs.html

http://www.ibm.com/partnerworld/page/isv/lotuslive

http://www.ibm.com/partnerworld/page/isv/lotuslive

mailto:[email protected]












● Q/A

What is Passport Advantage?Passport Advantage and Passport Advantage Express are simple, comprehensive IBM offerings that cover software license acquisition including Fixed Term Licenses and Software Subscription and Support product upgrades and technical support under a single, common set of agreements, processes and tools. Passport Advantage is designed for larger enterprises, while Passport Advantage Express, a transaction-based offering, is designed to meet the needs of medium-sized businesses.

Fundamentals of Passport Advantage - ● Includes Software Subscription and Support (technical support and product upgrades) with each new license.● Provides Selected Support for certain Open Source and other non-warranted code.● Provides comprehensive and flexible upgrade coverage.● Streamlines budgeting for software upgrade and migration costs.● Provides secure access to Passport Advantage Online.● Incorporates flexible, easy-to-access, responsive, cross-platform customer support from IBM.● Provides access to IBM software technical support for all of a customer's designated IT staff.● Provides 24x7 access to support resources for business-critical outages.● Provides self help via the Internet.

Partner Types include -● Value Added Resellers● Value Added Distributers● System Integrators● Independent Software Vendors

What is ASL? An IBM contract in which the Business Partner acquires IBM software, bundles it with the BusinessPartner’s own software & services, and sells that bundled solution offering to end customers.

Fundamentals of ASL -● End-customer may / may not know that the IBM middleware is bundled with the solution

● IBM middleware price is not visible to the end-customer ● Solution support and maintenance is provided by the Partner

● The customer calls the Partner for L1/L2 support.● IBM software license/warranty stays with the Partner - It is not transferred to the end user

● Provides end-customer restricted use of IBM middleware, for use with the partner’s application● BP owns the relationship completely – less dependant on IBM sellers

● BP presents single contract for the solution● Worldwide Distribution

● Licenses can be deployed in any geography● ASL Business Partner buys at a discounted rate, generally directly from IBM (geo dependant)

Partner Types include -● SaaS Providers (Public or Private Cloud)● Technology Partners (HW/Device Mfg)● Telecoms● Independent SW Vendors (ISVs)● Application Service Providers (ASPs)● Application Developers

SWG Go-to-Market Models - OEM Application Specific License Resell - Open Distribution

(Passport Advantage)

Description Deep embed product integration of IBM SW in the partner’s solution. Solution cannot be disassembled into component parts.

IBM brand is not visible to the client within the partner’s solution.

Special contract terms beyond ASL to reinforce embedded focus.

Collaboration is between partner and IBM brand labs & bus dev teams.

Deeper license discounting than ASL given more partner responsibility

Integration of IBM SW in partner’s solution model. Degree of integration of IBM SW can vary.

IBM brand is visible to the client within the partner’s solution.

Collaboration is between partner and IBM (or VAD) channel sales teams.

● Controlled distribution, minimum of 3 certifications are required, two sales and one technical.

● IBM brand is primary.

Partner requirements

Value add components L1/L2 support Restricted license to end user via

partner solution license; partner retains IBM license

WW price and sales territory Partner owns S&S renewals

Value add components

L1/L2 support

Restricted license to end user via partner solution license; partner retains IBM license

WW price and sales territory

Partner owns S&S renewals

No criteria for Value add L1/L2 support by IBM Full use license to the

customer Price determined by customer

PPA grid S&S renewals competitive


Application Specific Licensing (ASL) -

An agreement under which partners Integrate and bundle IBM Software with their value-add software and services and sell as a total solution to their end customers anywhere in the world*

ASL partner is responsible for -Solution marketing (OI)

Solution selling (OO)Though the partner may team with IBM sales, the

Partner should not expect assistance with solution marketing or solution selling.

*Certain countries may be excluded based on IBM's exclusive distribution arrangements

OBJECTIVEApplication Specific Licensing aims to create an autonomous solution sales

channel


SOLUTION

Your Products listed in the Transaction

Document that you must include in your solution

Services which add significant new

functionality or combine or integrate our software with one or more other

products

YOUR VALUE ADD COMPONENTS

The offering created when our Software and your Value-Add Components work

together.

+Examples…

An Application* and/or coded software programs. For Tivoli,

software or programs might include coded procedures,

workflows, algorithms, reporting, routines, scripts, and/or metering

software Integrated and interoperating with IBM Software

*Monthly Rental: must include your

application (Rational, WS Commerce

exception).

IBM SOFTWARE

= &

1. Base Agreement2. Transaction Document: Purchase Commit, Earned Discount, Percent of

Revenue, Monthly Rental

Guidelines -


Application Solution Provider (ASP) License Amendment -

If the partner does not use Passport Advantage, then you may offer the partner an OEM/ASL agreement with the associated ASP Amendment

or If the partner has an existing OEM/ASL contract covering a specified solution, and they simply

want to “host” that same solution, then you can offer them an ASP Amendment or Monthly Rental.

ASP Amendment – Added to a Purchase Commit or Earned Discount transaction document when providing access to the Solution from remote data centers to multiple Customers via the Internet or a private network. ASP Services do not include the downloading or copying of Programs by Customers.

Programs listed at the following website are not eligible for use with this Amendment: http://www-06.ibm.com/software/lotus/passportadvantage/xspexcludedprograms.html

Any exceptions must be approved by the Brand.


Purchase Commitment Transaction Document

Purchase Commitment Transaction Document

for Fixed Term Use

Earned Discount Transaction Document

Monthly Rental for Cloud Application

Services Provider TD

Application Specific License Software Agreement - Base AgreementSOLUTION - The offering that is created when our Programs and your Value-Add Components work together.

VALUE ADD COMPONENTS - must add significant new functionality or combine or integrate the Program with one or more other products or services that add significant new functionality.

RETSRICTED USE - use the Programs only in conjunction with the Solution. May not be used for internal use

•Revenue commitment

•License + 12 mo S&S

•Perpetual licenses

•Fixed Term licenses

•Default 1 year term

•Multi yr term possible

•Initial payment

•Fixed discount

•We provide a Program

•Monthly reporting

•Revenue commitment

•Fixed term use



•Initial payment

•Fixed discount

•We provide a Service


Currently only used with Cast Iron Live, Lotus Live

•No revenue commitment

•License + 12 mo S&S

•Perpetual licenses

•Fixed Term licenses



•Cumulative purchases

•Earned discount

•We provide a Program


• For SaaS Providers

• Application required

• Their own SW IP

• Delivered as a service

• Delivered over Internet

• To end customers

• Approved “A” PNs list

• Excluded Programs

• Brand approval (exc.)

• Excludes appliances

• Excludes SaaS offerings

• Min. mo. commitment

• Paid monthly in arrears

Percentage of Revenue TD

ASP Amendment

•Access to solution

•Remote Data Center

•To multiple customers

•Via the Internet

•or Private network

•Excluded Programs

•Brand approval (exc.)

•Reside on your servers

•or servers you manage

•No download/copy

• Non standard

• Not encouraged

• Special bid only

Monthly Rental for Cloud Infrastructure

Provider TD - SBO


• Approval required

• SWG VP Pricing

• For IaaS providers

• For PaaS providers

• Approved “A” PNs list

• Excluded Programs

• Brand approval (exc.)

• Customers limited to

Solution Developers,

Cloud Application

Providers and their end

user customers.

• Remote service access

• Customer cannot

downloaded or copy

• For IaaS providers

• For PaaS providers


• Approval required

• SWG VP Pricing

ASP Amendment

•Access to solution

•Remote Data Center

•To multiple customers

•Via the Internet

•or Private network

•Excluded Programs

•Brand approval (exc.)

•Reside on your servers

•or servers you manage

•No download/copy


Level 1 and 2 Support -

Level 1 Support means taking the first support call from a Customer and fulfilling the following steps:

I. Qualify incoming calls: Determine if the request is for a new or existing case. Assign a priority to a new case (priority one through priority four). For existing cases, obtain case information.

II. Characterize the problem and environment: Gather information about the case and determine if the Program causes the problem. Completely define and describe the problem. Identify ways to understand the problem's behavior. Document the characterization information. Analyze problem symptom(s), attempt to find root cause when appropriate and describe the result of such attempts. Determine if the problem is a known Program problem by accessing IBM online support resources.

III. If it is determined to be a Program problem, contact IBM technical support. For new cases, open a case and select a priority. For existing cases, state the case number. Provide the case information you have gathered to the support engineer.

Level 2 Support means the service provided to analyze or repeat the error, or to determine that the error is not repeatable. This service also includes in-depth technical analysis.


Monthly Rental for Cloud Application Services Provider


Provider

Deliver functionality through the cloud.

They own an application and offer

their solution as a Service.

Operate a cloud for application vendors and companies to develop, test, and

host solutions. Managed service

providers.

CLOUD INFRASTRUCTURE

PROVIDERS

CLOUD APPLICATION PROVIDERS

Approved “A” PNs listExcluded Programs subject to

Brand Approval



Provider






providers.


PROVIDERS



Brand Approval



Provider






providers.


PROVIDERS



Brand Approval

Goals: ● Grow channel participation rate in Cloud deals● Accelerate integration to channel of Cloud-related acquisitions● Continue to leverage 2 routes to market

● SWG Cloud portfolio of products● ASL contracts with special conditions

Traditional Passport Advantage Distribution and ResaleUnder Software Value Plus Program

1Application-Specific LicensingASL Business PartnerASL Value Add Distributor

12

Upside Opportunity – Cloud


ASL Launch and Landing Revenue Credit - Revenue Recognition and Commissions Policy

IBM sellers receive commissionable credit for revenue that is generated by business partners who bundle IBM software with their solutions and sell these solutions to their end user clients under the terms of ASL contracts.

SWG business partner sales teams, SWG direct sales teams, and client teams receive appropriate credit for their contributions both in selling to our partners and in selling with our partners to their end user clients.

Launch commission credit may flow automatically through FMS to rep commission payment and retires quota.

In some cases, Reps are required to complete a manual claim request form and have their First Line Manager (FLM) confirm their involvement and approve the claim. The FLM will send the completed claim form and their approval to the Channel Manager covering the Launch location of the ASL Partner

ASL landing occurs when the ISV sells their application, as well as restricted use of IBM SW products integrated with their application, to an end user customer. The end customer is the ASL landing account. All reps given CREV quota for selling this IBM middleware and responsible for the end customer will be compensated.

All SWG reps and client reps and managers are eligible for ASL landing credit.

Executives who are paid on financial revenue only are excluded from the program.

ASL Landing commission payments are processed on a quarterly basis.

ASL landing commission credit is issued for transactional revenue only and retires quota.


1. Leverage IBM’s significant investment in middleware

2. Integration and bundling of your solution & IBM software

3. Shorter time to market

4. Sale is focused on your Application

5. Shortened sales cycle

6. IBM reps can get paid for assisting in sale

7. Improved margins – upfront license & annual renewal

8. Ongoing account control

9. Lower installation & support costs

10. Improved customer satisfaction

Developing Solution

Sales Cycle

Customer Benefits

10 Reasons to Use ASL -

It’s all about making money


API's for ASL BP's


Overview of Reseller Offering

● Provision LotusLive services via APIs including creating subscriptions and provisioning users.

● Provide partner the ability to deliver custom offerings to their client base by owning the contract, billing and support relationship with customers, rather than the traditional ISV partner transferal of ownership to IBM.

● Direct communication channel to to IBM Level 2 Support – enabling your customer support team with a direct channel to IBM for issue resolution.

● Co-branding : support for UI configuration and support redirection


Phase 1 - Reseller tooling to supportSelf-provisioning API's

Reseller API RequirementsCustomer / Organization Subscription User

Create Customer/Organization Add a subscription Add a user

Suspend Customer/Organization Suspend a subscription Edit a user (all editable portions of the user account)

Un-suspend Customer/Organization Un-suspend a subscription Remove a user

Edit Customer/Organization Cancel a subscription Reset Password

Remove Customer/Organization Return Subscription ID (given customer ID) Suspend a user

Return Customer IDs (given reseller ID) Retrieve Provisioning Status (given subscription ID)

Un-suspend a user

Retrieve Provisioning Status (given customer ID)

Retrieve Subscription Status (given Account ID) Return Account IDs (given customer ID)

Retrieve Customer/Org Status (given customer ID)

Retrieve Provisioning Status (given Account ID)

64

Phase 1 - Co-Branding Capabilities

Elements that can be branded Login / Password reset pages Key System support links Key System eMail messages Default theme

Elements that will maintain IBM Corporate Identity Service URLs Service names Service navigation Engage / Connections Dashboard Rotating Banner


Co-Branding Capabilities

A Provider specific log-in or landing page — A SAML based login page for EACH customer will be supported. T

The URL of the service can be masked as another URL such as serviceprovider.com instead of www.lotuslive.com — This is not currently available

More flexibility in customizing the web UI, such as more Service provider branding, the ability to put ads or promotions in the top or side banners— SmartCloud for Social Business has no plans to support

Ability to create their own customized welcome letter after service provision — First email is for access and authentication. This is an IBM branded email

● No ability to customize but can put the Service provider branding on it— Other emails will be suppressed

● Ones that are generated by the partner using the API's● Notifications from the applications(adding a user to the ACL of a file/activity) will also

be LotusLive generated


Monthly termless part numbers – Phase 1

Pay per usage Billing Monthly Billing Monthly Reporting


Monthly ReportsMonthly Summary ReportThis report should list the parts that the vendor provisioned for that time period (prior month)The data would be limited to those parts that were provisioned in the last month by that partner only.

Monthly Detail ReportThis report is related to the one above, but provides more detail.The data would be limited to those parts that were provisioned in the last month by that partner only.

Total Summary ReportThis is the same as above, but a running total.The data would be limited to those parts that are currently provisioned by that partner only.

Total Detail ReportThis report is related to the one above, but provides more detail.The data would be limited to those parts that are currently provisioned by that partner only.

Monthly Active Users ReportList and data of all users currently provisioned across all of that reseller's customer's orgs.Only contains current data, not total (historical)











● Q/A

69

Cloud Directions for 2012

New services● IBM Docs● eDiscovery Archive

Continued feature evolution● Messaging● Social● Unified Communications

Offerings

■ Alignment with the IBM SmartCloud

■ More flexible buying options

■ Reseller tools and enhancements

■ Controlled Distribution

Go to Market Extensibility

● Open interfaces such as the Social Business Toolkit

● Enterprise grade controls

● Flexible public, dedicated and hybrid deployment options


SmartCloud for Social Business Solutions Meet a Spectrum of Customer Needs

Dedicated CloudIBM SmartCloud Social Collaboration for Government

IBM GTS SmartCloud Enterprise*

● Lotus Notes Domino● Domino Utility Server● Connections● Sametime ● WebSphere Portal● Web Content Manager

Public CloudSmartCloud Engage

SmartCloud Meetings

SmartCloud Connections

SmartCloud Notes and iNotes

Hybrid

On Premises*Customer brings their own license, pays for infrastructure Pay as you Go options available


Introducing Partner-led Migration for LotusLive Notes in 2012

IBM to deliver● Tools for LotusLive Notes onboarding planning and data transfer● Partner education ● Partner certification● Targeted for Q2 – will be announced via email to demo accounts, PartnerWorld

newsletters, Webfront, etc.

Partners can provide services for● Pre-migration environment analysis and planning● Preparation of the on-premises environment● Data migration● Transition of users● Ongoing management of desktop clients, users, and the on-prem environment


What we've learned from ISSL-led migrations

We presumed that:● Customers would understand their existing environments● Customers would be able to partner with us in their task responsibilities to project plan and prepare

their environment and users for moving to the CloudWhat we found is that the customers who are most interested in moving to cloud are the ones who are struggling the most managing their on-premises environment

1. Plan● Hold deployment kickoff meeting● Perform discovery and gather

infrastructure technical data● Select mailbox transition methods and

tools

3. Transition● Synchronize mailbox content, calendars and

contacts● Use third-party tools to migrate from competitive

offerings● Configure mobile device connectivity● Perform service validation and testing

2. Prepare● Configure Hybrid deployment● Configure directory synchronization● Configure client computers and end user

experience

LotusLiveNotes

On-premises environment

LotusLive environment


New Partner Mail Onboarding Tools and Certification Program

● New program to train and certify partners to setup hybrid configurations and onboard SmartCloud Notes users

● Onboarding Planning Tool (OPT)● Used to gather and fix potential problems in mail files at the start of the transfer process● Time spent fixing issues here can save lots of time and aggravation later

● Onboarding Transition Tool (OTT)● Used to manage the transfer of “batches” of mail files to the IBM data center

GatherInformation

OrganizeBatches

Stagebatches Encrypt Move to

DatacenterProvisioninto LLN LLN

on-premises

files

OPT OTT

Coming in Q2

SmartCloud Notes Certification Program Overview

Objective— Deliver tools to enable Partner led LotusLive Notes service provisioning with data transfer— Create a BP Certification Program to establish process competency and a business arrangement

Certification program— Pre-requisites

● LotusLive Notes Business Partner Demo account● IBM Certified System Administrator - Lotus Notes and Domino 8.5 certification

— Education● LotusLive community and activity● Instructor led course with lab exercises (fee based)

● Covers hybrid configuration and data transfer processes● 2x's per month● 3-5 students per class

— Evaluation ● IBM Certification exam (fee based)

— Authorization to perform in the “Data Migrator” role● Access to OPT and OTT


Services Opportunities around SmartCloud Social

Assess and plan• Client collaboration environment • Cost and TCO analysis• Directory Assessment• Security Assessment• Mail Routing Assessment

Design• Design and implementation plan• Rollout plan• Directory architecture• Security design

Integrate/Implement• User Provisioning • Directory Integration• Single Sign-On• Mail Routing Integration & Migration• Data Migration• Integration w/Enterprise apps (Click-to-cloud)*

Operate/ Manage• Run complementary services

Help Implement the solution

Help manage / operate the solution

Help customer decide what to do

Total Services Opportunity: 1 to 5x yearly subscription revenue











● Q/A

Incentives for SaaS – beginning February 20, 2012*

Two incentive models for SaaS:

1. SaaS Rebate: ● Paid on orders fulfilled through a VAD

2. SVI:● Paid on IBM direct fulfilled opportunities● Standard SVI program participation requirements

● BAU: First to register , sales progression, claiming

SaaS incentive fees paid continuously – over life of engagement● Payment: Unique process for SaaS offerings

● Fee paid on initial order and future period billings (including renewals)● Eligible Part Types: Subscription, Daily, On-Demand ● Ineligible Part Types: Set up fees, Overage, SLA, Human Services

● Payment cycle ● Paid when minimum payment threshold reached or a specified amount of time has passed since last

payment

*Subject to change Available for selected offerings and in selected geographies


SaaS Reseller Incentive Introductory Period 2012

● Higher rebate rates for 2012 Up to 28% total margin for deals fulfilled through VAD● Effective until Dec 31, 2012

Fulfilled through VADCustomer Segment (b) GB Non GB

BP base discount (a) 5% 5%

SaaS instant rebate 15% 5%

SaaS “Sweetener” 8% 3%

Total (c) 28% 13%

Fulfilled by IBM Direct - No extra incentive

Customer Segment (d) GB Non GB

Sell Only SVI 10% 5%

Sell and ID SVI 20% 10%

Fine print:(a) 5% is an example. VADs and BPs establish their terms separately for product discount and discounts vary by country(b) SaaS incentives not applicable for ELA customers, as defined(c) Business Partners not eligible for SVI if transaction is fulfilled through VAD(d) SVI Incentives not applicable for Government accounts(e) Business Partners not eligible for SaaS Instant Rebate if fulfilled by IBM


Example Business Model

Incentive

PlanRevenue

Year 1Revenue

Year 2Revenue

Year 3Revenue

Year 4

BP base discount 5% 600 600 600 600

SaaS instant rebate 15% 1800 1800 1800 1800

SaaS “Sweetener” 8% 960 0 0 0

Total 3360 2400 2400 2400

General Business account in the USA fulfilled through a VAD100 Subscriptions sold @ $10/month(Annual contract value = $12000)

Etc ...

IBM SaaS contracts are auto-renewing. Billing continues until the contract is cancelled. Rebates are paid on billings, resulting in an annuity revenue stream for partners


“Rule of 78”

- Example -


J F M A M J J A S O N D

N

N

N

N

N

N

N

N

N

N

N

N

“Rule of 78”

78 blocks of revenue


“Rule of 78” Benefits with SaaS

● Eliminates the Quarterly and Annual large discounting to make plan● The customer can't “go out of maintenance”● If the customer doesn't pay, we can just shut them off● Cash flow is the same in January/February as December● As a small business, can better leverage financing based on

predictable revenue stream● This is how insurance companies have been around for 100's of years

Things to consider -● Cash flow● Billing infrastructure











● Q/A


1

SaaS Sales

With SaaS Services, the questions during the sale can be complex:

What Anti-virus/Anti-Spam services to you use?

Where do I point my MX record/DNS?

How does your single sign on work – do you support SAML?

How do I know my data is secure?

How do my administrators manage the service?

Can I serve the service up through my portal?

...etc.

Many different questions to what you receive when the customer is building their own environment – why?

Because by using cloud, the headache of managing infrastructure goes away from them for a whole range of management and technology problems that they currently have


Hardware Cost- Servers- Storage- Network- Clients (user equipment)- and …

Software Costs- IBM sof tware - Other Server SW- Other Client SW- Other Network SW- Other Application SW- and …

Maintenance Costs- Maintenance for SW - Maintenance for HW - and …

Environmental Costs- Floor space - Power & cabling

- and …Quality of Service needed

- Availability - Security- System Management - Scalability- Response Time- Disaster/ Recovery - and …

Quality of Service needed - Availabil ity - Security- System Management - Scalabil ity- Response Time- Batch Window - Disaster/ Recovery - and …

Other Costs- Deployment costs - Migration costs- Installation costs - Education costs- and …

- etc ? …

High Level TCO elements to be considered


Availabili ty- High availabili ty- Hours of operation

Backup / Restore / Site Recovery- Backup & Restore - Disaster Scenario- Effort for Complete Site

Recovery- SAN effort

Infrastructure Cost- Space, Power, Cooling- Network Infrastructure- Storage Infrastructure

Additional development and implementation

- Investment for one platform –reproduction for others

Controlling and Accounting- Analyzing the systems- Cost

Operations Effort- Monitoring, Operating- Problem Determination- Server Management Tools- Integrated Server Management

–Enterprise Wide

Security- Authentication / Authorization- User Administration- Data Security- Server and OS Security- RACF vs. other solutions

Deployment and Support - System Programming- Keeping consistent OS and SW

Level- Database Effort - Middleware- SW Maintenance- SW Distribution (across firewall)- Application- Technology Upgrade- System Release change without

interrupts Resource Utilization and Performance

- Mixed Workload / Batch- Resource Sharing- shared nothing vs. shared

everything- Parallel Sysplex vs. Other

Concepts- Response Time- Performance Management- Peak handling / scalability

Operating Concept- Development of an operating procedure- Feasibility of the developed procedure - Automation

Integration- Integrated Functionality vs.

Functionality tobe implemented (possibly with 3rd party tools)

- Balanced System- Integration of / into Standards

Further Availability Aspects- Planned & Unplanned outages- Automated Take Over- Uninterrupted Take Over (especially for

DB) - Workload Management across physical

borders- Business continui ty- Availability effects for other

applications / projects

- End User Service, End User Productivi ty- Virtualization

Skills and Resources - Personnel Education- Availability of Resources

TCO Elements to be Considered


1

TCO Example

Too many items to discuss in detail, so combined they become:

Software Costs

Hardware Costs

Datacentre Costs

Staffing Costs

Support Costs

Etc…


Sales Progression Assets

1) Provide a Business Value Assessment ● ROI Tool for LotusLive

● A web-based calculator to assess the costs, benefits and ROI of implementing LotusLive and generates 'client-ready' assessment presentation

● Limited availability Contact [email protected] for access

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2) Leverage Client Advocacy● Connect prospects with LotusLive clients

● Use your no-charge BP demo account to attract client interest● Use your BP Trials URL to generate client leads● Use 35 new references added in 2011● Show client testimonial videos ● Contact your regional BP rep for assistance

https://roianalyst.alinean.com/ibm/cloud/





https://www.lotuslive.com/en/videos/index.php?id=newlyweds_demo

https://www.lotuslive.com/en/videos/index.php?id=newlyweds_demo

https://roianalyst.alinean.com/ibm/cloud











● Q/A


Read about Smart Cloud Social: https://www.lotuslive.com/en/Read about Smart Cloud Social Support: https://www.lotuslive.com/en/support/

Read -


See a Smart Cloud Social recorded demo: https://www.lotuslive.com/en/demosAttend a Live Demonstration: https://www.lotuslive.com/en/trainingAttend an IDR virtual workshop at an IBM Innovation Center: https://www-304.ibm.com/isv/spc/events/description.jsp?event=A5479E64DCD5E5CC8525774C0060C5FFSee partner overview webinar HTTPS://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/PWEVT_lotuslive0810

Watch -


Request a Smart Cloud Social Business Partner demonstration account:

https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/isv/lotuslive

Show it -


For More Information For More Information About See

BP Demo Account http://ibm.co/eT6a97Course enrollment● Future API Workshop ● Future SmartCloud Notes Onboarding

coursePartner Guided Selling (future)

SmartCloud for Social Business Webfront http://www.ibmcloud/social

Sales Kits on Partnerworld http://ibm.co/ytx4kX

LotusLive Wiki http://www-10.lotus.com/ldd/bhwiki.nsf

Customer Trials URL https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/isv_ben_prb_lotuslive_trial

http://ibm.co/eT6a97

http://www.ibmcloud/social

http://ibm.co/ytx4kX

http://www-10.lotus.com/ldd/bhwiki.nsf


Summary

■ Enabling partner led LotusLive Notes eMail Onboarding to Cloud

■ New Social Business Toolkitfor integrating apps withIBM Connectionsand LotusLive

Call to Action■ Get educated

─ Partner Guided Selling Tool─ LotusLive Notes Onboarding

classes/certification─ Social Business Toolkit class

■ Get your LotusLive BP Demo account

■ Use LotusLive BP Trial URLs in your marketing campaigns

■ Sell at 50% off until Feb 27

■ Positioning LotusLive in IBM SmartCloud■ New SaaS Parts and Partner Guided Selling Tool to

ease the sale of IBM SaaS offerings ■ Introducing an incentive model specifically

for SaaS products


QUESTIONS ??


Backup


2012 SmartCloud Tiered PricingTier 1 Tier 2 Tier 3 Tier 4 Tier 5

Seats 1-100 101-1,000 1001-5,000 5001-10000 10,001+Discount: 0% 10% 15% 20% 25%

Part NumberLong Description Tier 1 Tier 2 Tier 3 Tier 4 Tier 5D0NPULL SMARTCLOUD ENGAGE STANDARD ENT DEPLOY AU PER MONTH 8.00$ 7.20$ 6.80$ 6.40$ 6.00$ D0NPWLL SMARTCLOUD ENGAGE STANDARD ENT DEPLOY AU OVERAGE 10.00$ 9.00$ 8.50$ 8.00$ 7.50$ D0NPXLL SMARTCLOUD ENGAGE STANDARD ENT DEPLOY CUST WS&S AU PER MONTH 6.00$ 5.40$ 5.10$ 4.80$ 4.50$ D0NQ3LL SMARTCLOUD ADDITIONAL STORAGE COLLABORATION GB PER MONTH 5.00$ 4.50$ 4.25$ 4.00$ 3.75$ D0NQ8LL SMARTCLOUD ENGAGE ADVANCED STEP-UP AUTH USER PER MONTH 9.00$ 8.10$ 7.65$ 7.20$ 6.75$ D0NQALL SMARTCLOUD ENGAGE ADVANCED STEP-UP AUTH USER OVERAGE 11.25$ 10.13$ 9.56$ 9.00$ 8.44$ D0NQBLL SMARTCLOUD ENGAGE ADVANCED AUTH USER PER MONTH 10.00$ 9.00$ 8.50$ 8.00$ 7.50$ D0NQDLL SMARTCLOUD ENGAGE ADVANCED AUTH USER OVERAGE 12.50$ 11.25$ 10.63$ 10.00$ 9.38$ D0NQILL SMARTCLOUD NOTES BLACKBERRY SERVICE MDS NOTES AU PER MONTH 15.00$ 15.00$ 15.00$ 15.00$ 15.00$ Excluded from TieringD0NQKLL SMARTCLOUD HOSTED BLACKBERRY SERVICE NOTES AU PER MONTH 3.00$ 3.00$ 3.00$ 3.00$ 3.00$ Excluded from TieringD0NQMLL SMARTCLOUD NOTES AUTH USER PER MONTH 5.00$ 4.50$ 4.25$ 4.00$ 3.75$ D0NQPLL SMARTCLOUD NOTES AUTH USER OVERAGE 6.25$ 5.63$ 5.31$ 5.00$ 4.69$ D0NQQLL SMARTCLOUD TRAVELER NOTES AUTH USER PER MONTH 2.00$ 2.00$ 2.00$ 2.00$ 2.00$ Excluded from TieringD0NQSLL SMARTCLOUD TRAVELER NOTES AUTH USER OVERAGE 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ Excluded from TieringD0NQTLL SMARTCLOUD NOTES STEP-UP AUTH USER PER MONTH 4.00$ 3.60$ 3.40$ 3.20$ 3.00$ D0NQVLL SMARTCLOUD NOTES STEP-UP AUTH USER OVERAGE 5.00$ 4.50$ 4.25$ 4.00$ 3.75$ D0NQWLL SMARTCLOUD ARCHIVING RETENTION DATA FEED NOTES AU PER MONTH 4.00$ 3.60$ 3.40$ 3.20$ 3.00$ D0NQZLL SMARTCLOUD INOTES LOTUS CUSTOMERS ACTIVE ON S&S AU PER MONTH 2.00$ 1.80$ 1.70$ 1.60$ 1.50$ D0NR1LL SMARTCLOUD INOTES AUTH USER PER MONTH 3.00$ 2.70$ 2.55$ 2.40$ 2.25$ D0NR3LL SMARTCLOUD INOTES AUTH USER OVERAGE 3.75$ 3.38$ 3.19$ 3.00$ 2.81$ D0NR5LL SMARTCLOUD CONNECTIONS LOTUS CUSTOMERS W S&S AU PER MONTH 5.00$ 4.50$ 4.25$ 4.00$ 3.75$ D0NR7LL SMARTCLOUD CONNECTIONS AUTH USER PER MONTH 6.00$ 5.40$ 5.10$ 4.80$ 4.50$ D0NR9LL SMARTCLOUD CONNECTIONS AUTH USER OVERAGE 7.50$ 6.75$ 6.38$ 6.00$ 5.63$ D0NRCLL SMARTCLOUD MEETINGS UP TO 14 GUESTS AUTH USER PER MONTH 29.00$ 26.10$ 24.65$ 23.20$ 21.75$ D0NRELL SMARTCLOUD MEETINGS UP TO 14 GUESTS AUTH USER OVERAGE 36.25$ 32.63$ 30.81$ 29.00$ 27.19$ D0NRFLL SMARTCLOUD MEETINGS ENTERPRISE DEPLOYMENT AU PER MONTH 5.00$ 4.50$ 4.25$ 4.00$ 3.75$ D0NRHLL SMARTCLOUD MEETINGS ENTERPRISE DEPLOYMENT AU OVERAGE 6.25$ 5.63$ 5.31$ 5.00$ 4.69$ D0NRILL SMARTCLOUD MEETINGS UP TO 199 GUESTS AUTH USER PER MONTH 39.00$ 35.10$ 33.15$ 31.20$ 29.25$ D0NRKLL SMARTCLOUD MEETINGS UP TO 199 GUESTS AUTH USER OVERAGE 48.75$ 43.88$ 41.44$ 39.00$ 36.56$ D0NRLLL SMARTCLOUD MEETINGS CONCURRENT SEATS AUTH USER PER MONTH 50.00$ 45.00$ 42.50$ 40.00$ 37.50$ D0NRNLL SMARTCLOUD MEETINGS UP TO 999 GUESTS AUTH USER PER MONTH 79.00$ 71.10$ 67.15$ 63.20$ 59.25$ D0NRQLL SMARTCLOUD MEETINGS UP TO 999 GUESTS AUTH USER OVERAGE 98.75$ 88.88$ 83.94$ 79.00$ 74.06$ D0NRRLL SMARTCLOUD MEETINGS ENT DEPLOY CUST W S&S AU PER MONTH 4.00$ 3.60$ 3.40$ 3.20$ 3.00$ D0NRULL SMARTCLOUD WITH NOTES STEP-UP AND CONNECTIONS AU PER MONTH 7.00$ 6.30$ 5.95$ 5.60$ 5.25$ D0NRWLL SMARTCLOUD WITH NOTES STEP-UP AND CONNECTIONS AU OVERAGE 8.75$ 7.88$ 7.44$ 7.00$ 6.56$ D0NRYLL SMARTCLOUD WITH INOTES AND CONNECTIONS AUTH USER PER MONTH 7.00$ 6.30$ 5.95$ 5.60$ 5.25$ D0NS0LL SMARTCLOUD WITH INOTES AND CONNECTIONS AUTH USER OVERAGE 8.75$ 7.88$ 7.44$ 7.00$ 6.56$ D0NS1LL SMARTCLOUD WITH NOTES AND CONNECTIONS AUTH USER PER MONTH 8.00$ 7.20$ 6.80$ 6.40$ 6.00$ D0NS3LL SMARTCLOUD WITH NOTES AND CONNECTIONS AUTH USER OVERAGE 10.00$ 9.00$ 8.50$ 8.00$ 7.50$

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Additional SaaS concepts

Add-on – This is a PROCESS, not a separate part– Add-on: increase of subscription level of a currently-entitled part or adding an additional service – You are “adding on” to an existing Services Agreement– Cannot add-on until after 1st SaaS invoice

Ramp ups– Limited to 12 months total, up to 4 separate ramp-up periods

• Ramp up is limited to the FIRST 12 months of the contract• Note: if >1 ramp up, each stands alone so the quantity is the total for that ramp-up period,

NOT cumulative– Enabled only for subscription parts– No add-ons during the ramp up period for a given part number OR prior to the initial invoice

New to SaaS is the concept of a Services Agreement or Charge Agreement– Like a Sales Order for SaaS -- A “repository” for the customer’s agreement, including

subscription details, agreed-to overage, on-demand and pay per use prices

– Initiated automatically by SAP when provisioning has been completed and the FIRST INVOICE has been issued

– Rep may need to reference Charge Agreement number when doing add-on or trade-up

100

GlossaryPart Types: defined by a set of coding attributes, which drive specific systems/tools logic

Subscription tracking period – how often the “counting” for a part is reset (e.g., every month or once a year) for overage determination and “entitled” usage level

Term (Contract duration): length of entitlement set up per purchase of SaaS subscription (up to 5 years)

Provisioning: Actually setting up the service for customer use

Line Item Hold: SAP function resulting in delay in billing until hold is removed (Terms of Use Hold & Provisioning Hold); Driven by Part Coding attribute (SMG4);

Services Agreement: The “repository” for a customer’s subscription level, overage rates, etc.

Overage: part type used to bill when current subscription level has been exceeded

Co-term: Keeping a single contract end date as new parts are added or existing parts modified

Add on: Adding an additional feature (new part number) or changing the quantity for an existing part in a Services Agreement

Trade-up: Replacing one part with another part for the balance of a contract or as part of a renewal or extension

Ramp-up: Where a customer does not use the full amount up front, the ramp up allows for growth during the first 12 months

IBM Smart Cloud

Technology

Transcript of IBM Smart Cloud