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Cloud & Smarter Infrastructure Saa. S 201 - for Partners © 2014 IBM Corporation Cloud & Smarter Infrastructure Saa. S 201 - for Partners © 2014 IBM Corporation

Agenda • Saa. S Refresher • What is Saa. S • How does Saa. Agenda • Saa. S Refresher • What is Saa. S • How does Saa. S help? • Saa. S Sales Process • Partner Programs • Compensation & Measurements • Legal, Data Privacy, and Security • Where to Start • Tools and other resources 2 © 2014 IBM Corporation

What is Software as a Service (Saa. S)? • Software as a Service (Saa. What is Software as a Service (Saa. S)? • Software as a Service (Saa. S) is a software delivery model in which software and associated data are centrally hosted in the cloud. Saa. S is typically accessed via a web browser. Payment for the service is through a subscription model. • You are using Saa. S today if you access applications like Facebook, Twitter, or gmail. See the last page in this deck for additional resources on Saa. S, Cloud, and utility-based computing 3 © 2014 IBM Corporation

How can Saa. S help? ü Improved TCO due to lower infrastructure cost ü How can Saa. S help? ü Improved TCO due to lower infrastructure cost ü Flexible subscription pricing ü Minimal upfront investment ü Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes ü Lower risk with try & buy approach ü Accelerates evaluations and decision making 4 © 2014 IBM Corporation

Agenda • Saa. S Refresher • Saa. S Sales Process – see the Channel Agenda • Saa. S Refresher • Saa. S Sales Process – see the Channel Saa. S Program Tool guide on the Saa. S Co. C • Partner Programs • Compensation & Measurements • Legal, Data Privacy, and Security • Where to Start • Tools and other resources 5 © 2014 IBM Corporation

Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Software Value Plus - SVP • Saa. S Referral • Saa. S Service Provider – SSP • Generate a partner URL to track leads • Using credit cards with Service Engage • Compensation & Measurements • Legal, Data Privacy, and Security • Where to Start • Tools and other resources 6 © 2014 IBM Corporation

Solutions for different types of Saa. S Business Models I resell hardware or software Solutions for different types of Saa. S Business Models I resell hardware or software I want to resell access to IBM hosted Saa. S. I sell solutions, manage accounts & provide support I want to sell access to IBM hosted Saa. S with my solutions and own the customer relationship I consult, refer, and resell software I want to refer IBM hosted Saa. S IBM Software Value Plus (SVP) Saa. S IBM Software as a Service Solution Provider IBM Referral Incentive for Saa. S and Software Note: General guidelines. One size does not fit all. Could be a blended use. 7 © 2014 IBM Corporation

Business Partner role in Saa. S Business Model - SVP MSP ASP VAD VAR Business Partner role in Saa. S Business Model - SVP MSP ASP VAD VAR GSI delivered Saa. S Partner Resellers sell Saa. S § Business Relationship: − IBM hosts, supports (L 1, L 2) Saa. S solution, bill VAD − VAD takes the order and bills BP − VAR takes order from customer, takes invoice, and resells customer − Customer is end user of solution § Demand Gen: Co-marketing, Web Content Syndication, VAD/ VAR campaign & events, Ready-to-Execute materials, PW Plays & collaterals, IBM demand gen § Sales Tool: VAD uses Partner Guided Selling Tool to quote and sell § Financial Incentive: − Standard VAD/ VAR model -> VAR is interface to client − Channel and Direct IBM reps are incented Config Contract IBM Help. Desk Data 8 VAD IBM VAR Client End Users IBM Software Value Plus (SVP) Resell Leverage standard two tier distribution channel VADs sell an product in the IBM price book Criteria for VARs: 1. Join PW program 2. Create partner plan 3. Enroll in VAP or SVI (product and sales certifications in SVI) 4. Apply for IBM reseller authorization and © 2014 IBM Corporation select a VAD

Operational Model on Engage: IBM Software Value Plus Program IT Practitioner Accesses Live Demo Operational Model on Engage: IBM Software Value Plus Program IT Practitioner Accesses Live Demo Trial Environment Partner Specific URL to Trial Access Request to purchase through Business Partner Paid Standard VAD/ VAR model Lead$ Business Partner Requests support through Engage IBM’s Partner Guided Selling Tool Forum, L 1, L 2, L 3 IBM Hosted Trial Environment Sandbox Leads APM WA SCCD MAM Unica 9 © 2014 IBM Corporation

Business Partner role in Saa. S Business Model – Saa. S Referral MSP ASP Business Partner role in Saa. S Business Model – Saa. S Referral MSP ASP VAD VAR IBM GSI delivered Partners Referring Saa. S § Business Relationship: −IBM provides support, invoice, billing, hosted solution −BP identifies opportunity, Co-Sell with IBM −Customer is end user of the solution § Demand Gen: Co-marketing, Web Content Syndication, VAD/ VAR campaign & events, Ready-to-Execute materials, PW Plays & collaterals, IBM demand gen § Sales Tool: Partner uses Saa. S Referral Incentive Portal § Financial Incentive: −BP earn 15% fees on Annual Contract Value −Multi-year contracts are payable each year of service −With active BP engagement, BP earns 5% fee for renewals; 15% on any extended cost of contract Config Contract IBM 10 Data Help Desk Client End Users Saa. S IBM Saa. S Referral Incentive Leverage IBM Saa. S Offerings to enhance solutions Get Started: § Partner has sales mastery in Product Group § Complete Referral Incentive BP Profile § Accept Saa. S Referral agreement § www. saasincentive. com § Register opportunities § Claim when sale is done © 2014 IBM Corporation

Operational Model on Engage: IBM Saa. S Referral Incentive Program IT Practitioner Accesses Live Operational Model on Engage: IBM Saa. S Referral Incentive Program IT Practitioner Accesses Live Demo Trial Environment Partner Specific URL to Trial Access Request to purchase through Engage Paid 15% of Annual Contract Value Lead$ Business Partner Requests support through Engage Forum, L 1, L 2, L 3 Deliver IBM Hosted Trial Environment Sandbox Leads APM WA SCCD MAM Unica 11 © 2014 IBM Corporation

Business Partner role in Saa. S Business Model - SSP MSP ASP VAD VAR Business Partner role in Saa. S Business Model - SSP MSP ASP VAD VAR GSI Partners as a Saa. S Service Provider § Business Relationship: − IBM hosts, provides partner L 2 and L 3, invoice and deliver solution to partner − SSP sells, invoice, delivers solution, L 1 support to customer, single interface to the customer, provides value add services or code § Demand Gen: Co-marketing, Web Content Syndication, VAD/ VAR campaign & events, Readyto-Execute materials, PW Plays & collaterals, IBM demand gen § Sales Tool: IBM Rep uses SQO to get quote and sell to SSP − SSP prices solution independently Earn 25% on subscription parts, for life of contract (singlecustomer) − Earn up to 35% off tier price point for life of contract (multi-customer) Contract IBM 12 delivered Saa. S Multi-User SSP BP Storefront Client SP Data Help Desk End Users User IBM Saa. S Solution Provider (SSP) Customer BP’s expertise with IBM Saa. S § Financial Incentives: Config IBM C&SI is doing Single customer as 1 st phase Customer Single-Customer Criteria: § Demonstrate required Sales, Technical, and Support Criteria § Complete Support Plan Template § Accept Reseller Agreement § Provide Support Desk © 2014 IBM Corporation § Demonstrated Saa. S Value

Operational Model on Engage: IBM Saa. S Solution Provider Program IT Practitioner Accesses Live Operational Model on Engage: IBM Saa. S Solution Provider Program IT Practitioner Accesses Live Demo Trial Environment Request to Requests support purchase through partner portal Partner Specific URL to Trial Access Lead$ Business Partner Portal Earn 25% on subscription IBM’s Software Quote and Order Tool Deliver Partner Value add Code IBM Hosted Trial Environment Sandbox Leads Unica 13 APM WA SCCD MAM © 2014 IBM Corporation

How do I maintain my leads? 5 4 Trial list BP Saa. S DSR How do I maintain my leads? 5 4 Trial list BP Saa. S DSR qualifies the client & informs BP that client has started trial Client Saa. S DSR Saa. S Direct Sales Rep receives client response associated with BP and matches to trial list 1 BP provides their unique IBM Service Engage url to client Client receives free trial Client registers 3 2 Learn 14 Explore Try Use / Buy Extend Support © 2014 IBM Corporation

Country DSW e. Commerce Default e-Commerce Support in 26 countries & Passport Advantage Code Country DSW e. Commerce Default e-Commerce Support in 26 countries & Passport Advantage Code T&C Languages Currency AUS English AUD AUT Austria German EUR BEL Belgium French, Dutch, English EUR BRN Brunei English USD CAN Canada English, Fr Canadian CAD DNK Denmark Danish DKK FIN Finland Finnish EUR FRA France French EUR DEU DE Germany EUR HKG Hong Kong English USD IRL Ireland English EUR LUX Luxembourg French, English EUR MYS Malaysia English USD NLD Netherlands Dutch EUR NZL New Zealand English NZD NOR Norway Norwegian NOK PAK Pakistan English USD PHL Philippines English USD PRT Portugal Portuguese EUR ZAF South Africa English ZAR ESP Spain Spanish EUR SWE Sweden Swedish SEK CHE Switzerland French, German, English, Italian CHF GBR United Kingdom English GBP USA 15 Australia United States English USD VIR Virgin Island English © 2014 IBM Corporation USD

Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Compensation & Measurements • Legal, Data Privacy, and Security • Where to Start • Tools and other resources 16 © 2014 IBM Corporation

How is Revenue realized with Saa. S? • ACV – Annual Contract Value of How is Revenue realized with Saa. S? • ACV – Annual Contract Value of the Subscription Agreement • TCV – Total Contract Value of a Multi-year Subscription Agreement • Bookings – The Total dollar value of all new contracts signed. Usually Billings are an annualized number even for different contract durations. Billings are not always helpful in understanding the state of Saa. S business. • Margin – the total discount off list price Business Partner can expect to receive 17 © 2014 IBM Corporation

Saa. S Subscription Examples Margins Scenario Term Quantity Metric (months) Scenario 1: Subscription signed Saa. S Subscription Examples Margins Scenario Term Quantity Metric (months) Scenario 1: Subscription signed for 1 year covering 40 VMs Scenario 2: Subscription signed for 3 years covering 100 users Scenario 3: 50 new users added to scenario 2 in Year 2 18 12 36 36 24 Monthly TCV ACV SVP 1 Subscription 40 100 Yr 1: 100 Yr 2: 150 Yr 3: 150 Virtual servers Auth users $25 each $12, 000 $99 each $12, 000 $118, 800 $356, 400 All 3 yrs All 3 years $99 each Contract 1: $356, 400 Contract 1: $118, 800 All 3 years Contract 2: $118, 800 Contract 2: $59, 400 Saa. S Referral $1200 - $2400/yr --$120$240/mo $11880 - $23760/yr --$990$1980/mo All 3 yrs $1800/ yr $17820/yr Claimed All 3 yrs $11880 - $23760/yr $990$1980/mo All 3 yrs --plus-$5940 – $11800/yr $594 - $990/mo Yrs 2 & 3 Note that for Scenario 3, the total TCV and ACV would be the sum of Contracts 1 & 2 $17820/yr Claimed All 3 yrs --plus— $8910/yr Yrs 2 & 3 SSP $3000/ yr --$300/mon $29700/yr --$2475/mo All 3 yrs --plus— $14850/yr $1237/mo Yrs 2 & 3 © 2014 IBM Corporation

On-premise to Saa. S Conversion Selling Scenarios § Client has decided to move to On-premise to Saa. S Conversion Selling Scenarios § Client has decided to move to Saa. S and is seriously considering a competitor who offers Saa. S § Client has decided that Saa. S is a strategic direction but wants IBM to preserve their current on-prem investment. IBM wants to avoid getting into the RFP process Details for On-premise to Saa. S Conversion § Continue to pay S&S on their current licenses § Pay a discounted per monthly step-up subscription fee (same on-premise metric) § Initiate a paid Services Engagement to migrate from on-premise to Saa. S (if required) Client Benefits: § Discount on Saa. S offering § Easier migration process to the same UI and data model § No end user re-training required IBM Benefits § Maintain the S&S Revenue stream § Add a monthly Saa. S Subscription § Retain client base 19 © 2014 IBM Corporation

On-premise to Saa. S Conversion Example – SCCD Acme Co. has 100 Smart. Cloud On-premise to Saa. S Conversion Example – SCCD Acme Co. has 100 Smart. Cloud Control Desk on-premise 100 authorized user licenses. Acme wants to move 40 users to Saa. S so they subscribe to 40 Smart. Cloud Control Desk (Saa. S) authorized users. Acme wants to protect their investment and reserve the option to move back to on-premise if needed. The chart below shows the Acme current yearly costs for on-premise licenses/S&S and then compares the cost between using the Conversion program versus No conversion (Saa. S at list). 6% annual savings when comparing Step-up to no Step-up *Savings does not reflect infrastructure and labor costs transferred to IBM More examples can be found in the Pricing deck in the Center of Competency 20 © 2014 IBM Corporation

Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Compensation & Measurements • Legal, Data Privacy, and Security • Where to Start • What C&SI Saa. S offerings can you sell now? • Land & Expand • Tools and other resources 21 © 2014 IBM Corporation

What Saa. S Offerings can you sell NOW? IBM Monitoring (Saa. S) $25/month per What Saa. S Offerings can you sell NOW? IBM Monitoring (Saa. S) $25/month per Average Managed Virtual Server (a. MVS) IBM Application Diagnostics (Saa. S) $120/month per Average Managed Virtual Server (a. MVS) IBM Smart. Cloud Control Desk (Saa. S) $99/month per Authorized User $297/month per Concurrent User IBM Workload Automation (Saa. S) Starts at $70 per 1000 executed jobs per month Maximo Asset Management (Saa. S) $159/month per Authorized User $477/month per Concurrent User >1000 k jobs, each 1 K job pack is priced at $21 per month From 251 k to 1, 000 k, each pack of 1 k is priced at $35/month From 26 k to 250 k, each pack of 1 k is priced at $56/month From 1 k to 25 k monthly executed jobs, each pack of 1 k is priced at $70/month h Maximo Asset Management (Saa. S) Scheduler (prereq Maximo AM (Saa. S) $40/month per Authorized User 22 © 2014 IBM Corporation

Tremendous opportunities to up-sell and cross-sell It is a huge differentiator that other vendors Tremendous opportunities to up-sell and cross-sell It is a huge differentiator that other vendors cannot match! If your customer has this (Land) Sell them this (Expand) Scenario Smart. Cloud Control Desk (Saa. S) IBM Monitoring (Saa. S) Detect an issue, automatically open a ticket Netcool OMNIbus Generate alerts when monitored KPI exceeded Business Service Management Improve MTTR for monitored business processes Smart. Cloud Analytics Predict and prevent problems with insight into patterns and trends present in log files Workload Automation Quickly and easily identify system and application problems that are impacting your workload Cognos, Datastage, Informatica, Netezza, Web. Sphere MQ, Platform LSF, Sterling Connect Direct Workload Automation (Saa. S) Integrate scheduling needs of business applications like Cognos, Datastage, Netezza, etc. Netcool OMNIbus Create alerts for workload problems Smart. Cloud Control Desk (Saa. S) Open incidents for workload failures IBM Endpoint Manager Smart. Cloud Control Desk Trigger automatic provisioning of a desktop (Saa. S) Generate tickets based on selected events Netcool Omnibus Tivoli Application Dependency Discovery Manager (TADDM) Use Configuration Information (CI) and relationship data to manage unplanned change Note that all of the offerings in the middle column have on-premise versions Choice is something only IBM can offer. 23 © 2014 IBM Corporation

Tremendous opportunities to up-sell and cross-sell – part 2 If your customer has this Tremendous opportunities to up-sell and cross-sell – part 2 If your customer has this (Land) Sell them this (Expand) Scenario Netcool Omnibus Maximo Asset Management (Saa. S) Generate tickets based on selected events Maximo Inventory Insights Smarter Cities Optimized inventory levels through analytics Link assets to municipal operations Maximo Asset Management Maximo Inventory Insights (Saa. S) Leverage Pre-configured inventory decision support system to generate optimal reorder management and obtain insight on “stagnant” inventory Smart. Cloud Control Desk Business Service Manager Workload Automation IBM Endpoint Manager Tivoli Application Dependency Discovery Manager (TADDM) Mobile Device Management (Maa. S 360) Manage and Secure Devices, Applications and Content 24 Manage Mobile Devices and Provision mobile security policy, restrictions, and actions © 2014 IBM Corporation

Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Compensation & Measurements • Legal, Data Privacy, and Security • Legal – Compliance Overview, Key Terms • Data Privacy – What you need to know, EU Safe Harbor, Solution Hosting • Security – Security Practices • Where to Start • Tools and other resources 25 © 2014 IBM Corporation

Legal - Compliance Overview Compliance = Softlayer Compliance + C&SI Saa. S Compliance Unless Legal - Compliance Overview Compliance = Softlayer Compliance + C&SI Saa. S Compliance Unless both are compliant we can’t claim compliance. • Payment Card Industry Data Security Standard (PCI DSS) - Compliant • Set of requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. • C&SI processes credit card information through IBM Payment Systems which is PCI compliant • Federal Risk and Authorization Management Program (Fed. RAMP) - Not Compliant (in progress) • Government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. • One of the key requirements is Federal Information Security Management Act of 2002 (FISMA) • EU Safe Harbor (See EU Safe Harbor section) – Certification in process 26 © 2014 IBM Corporation

Legal - C&SI Saa. S Contract Options • IBM International Passport Advantage Agreement (IPAA) Legal - C&SI Saa. S Contract Options • IBM International Passport Advantage Agreement (IPAA) – includes Saa. S terms regarding ownership, customer’s right to use, subscription to Saa. S, Saa. S technical support, content and termination of Saa. S • Passport Advantage customers using direct or e-Commerce to purchase • Terms of Use (TOU) B – standard terms of use for IBM Saa. S offerings. This is in addition to IBM or IBM IPPA Express Agreement • TOU A – terms of use specific to a Saa. S offering (e. g charge metrics, renewal) • Service Level Agreement (SLA) – specific to a Saa. S offering Note: A Saa. S Solution Provider may require additional agreements for approval 27 © 2014 IBM Corporation

Legal - Key Terms • Automatic renewal – contract is automatically renewed unless customer Legal - Key Terms • Automatic renewal – contract is automatically renewed unless customer cancels. • Example: Customer purchases a 12 month term with monthly billing and on month 15 decides they no longer need the service they DO NOT have the option to terminate and will be responsible for the remaining 9 months of coverage (the full 12 month term). • Indemnity - Customer agrees to hold IBM harmless against any third party claim arising out of or relating to: 1) violation of the IBM Acceptable Use Policy by Customer or any of Customer’s IBM Saa. S Users; or 2) Content made available to the IBM Saa. S. • Non-disclosure of Customer Content – TOU B indicates that IBM will not use client data for any reason but to operate Saa. S and will be kept confidential Applies to IBM Software Value Plus 28 © 2014 IBM Corporation

Legal - Service Level Agreements One per CSI Saa. S Offering (no charge) Availability Legal - Service Level Agreements One per CSI Saa. S Offering (no charge) Availability during a Contracted Month Availability Credit (% of Monthly Subscription Fee for Contracted Month which is the subject of a Claim) Less than 99. 8% 2% Less than 98. 8% 5% Less than 95. 0% Terms found in TOU A or Cloud Services Agreement Services Description 10% § “Availability” percentage is calculated as: (a) the total number of minutes in a Contracted Month, minus (b) the total number of minutes of Downtime in a Contracted Month, divided by (c) the total number of minutes in a Contracted Month, with the resulting fraction expressed as a percentage. § Example: 432 minutes total Downtime during Contracted Month 43, 200 total minutes in a 30 day Contracted Month - 432 minutes Downtime = 42, 768 minutes ____________ = 2% Availability Credit for 99. 0% availability during the Contracted Month 43, 200 total minutes in a 30 day Contracted Month 29 © 2014 IBM Corporation

 Data Privacy - What you need to know Personal data generally includes information Data Privacy - What you need to know Personal data generally includes information relating to an individual -think business card (e. g. names, email addresses, home address) In some countries, also includes information about identified partnerships, associations, or corporations. IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be the client responsible for entering the data. In most cases, Passport Advantage agreement covers data privacy for personal data. EU and Switzerland have additional data privacy regulations but have established the ability to create a framework with the U. S for accessing personal data. C&SI Saa. S is in the process of obtaining EU Safe Harbor certification. This requires a risk assessment after we Go Live. In the meantime, we have security measures in place to restrict access to EU client data and for IBM non-U. S. employee access to Amsterdam hosting center in order to comply. IBM has an Online Privacy Statement which is another EU Safe Harbor requirement 30 © 2014 IBM Corporation

 Data Privacy - EU Safe Harbor Certification EU and Switzerland have specific data Data Privacy - EU Safe Harbor Certification EU and Switzerland have specific data privacy regulations and have established the ability to create a framework with the U. S for accessing personal data called EU Safe Harbor. to prevent accidental information disclosure or loss C&SI Saa. S is in the process of obtaining EU Safe Harbor certification Benefits: § Ability to assert Safe Harbor to clients and prospects. § Facilitates selling in the EU and Switzerland. § Makes us competitive in selling situations. 31 © 2014 IBM Corporation

Where are the C&SI Saa. S solutions hosted? Today Soft. Layer operates multiple data Where are the C&SI Saa. S solutions hosted? Today Soft. Layer operates multiple data centers in § Amsterdam § Seattle § Dallas § Singapore § Houston § Washington D. C. § London § Hong Kong § San Jose C&SI offerings hosted at blue sites § In January 2014, IBM announced plans to commit $1. 2 B to expand its global Cloud footprint § Soft. Layer announced it will expand to Toronto, Japan, India, China, and Mexico in 2014, and to Middle East and Africa in 2015. 32 © 2014 IBM Corporation

Security - C&SI Saa. S Security Practices • Data Security – each offering has Security - C&SI Saa. S Security Practices • Data Security – each offering has a Security Practices document • Security Policy – states that IBM has published privacy and security policies and that employees are trained in security • Access Control • Only authorized employees can access client data • Support staff for the Cloud Offering use multi-factor authentication and encrypted channels when accessing client data • Data transfers are logged • Service Integrity & Availability • Change Management process governs changes to O/S, application s/w and firewall • Data center resources are monitored 24 x 7 • Internal and external vulnerability scanning and malware detection • Information delivery protocols for transmission of data over public networks (e. g HTTPS, VPN) • Physical Security • Designed to restrict unauthorized physical access to data center resources. • Entry and removal of equipment is logged • Compliance • Assessments and audits are conducted regularly by IBM’s team to confirm compliance with its information security policies. • Conduct workforce security education and awareness training • Note: The Security Practices are also included in the Cloud Service Agreement Service Description for each offering. 33 © 2014 IBM Corporation

Security – ITCS 104 & Industry Standards Certifications C&SI Saa. S offerings adhere to Security – ITCS 104 & Industry Standards Certifications C&SI Saa. S offerings adhere to the rigorous standards of ITCS 104 security There are many industry standards that require certification. C&SI is evaluating the priority order based on client demand • Health Insurance Portability and Accountability Act (HIPAA) – Not Certified • Requires certification through HIPAA Program Office (HPO) • Data Centers do not get certified in HIPPA – Soft. Layer Internal HIPPA whitepaper • • 34 SSAE 16 - Not Certified SOC 2 Type II Compliance - Not Certified Cloud Security Alliance STAR Self Assessment - Not Certified EU Safe Harbor (See EU Safe Harbor section) – Certification in process © 2014 IBM Corporation

Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Agenda • Saa. S Refresher • Saa. S Sales Process • Partner Programs • Compensation & Measurements • Legal, Data Privacy, and Security • Where to Start • Tools and other resources • Center of Competency • Resources & Tools 35 © 2014 IBM Corporation

Service Engage Sales Center of Competency The Center of Competency (Co. C) serves as Service Engage Sales Center of Competency The Center of Competency (Co. C) serves as a war room to provide resources for sellers to help close Saa. S deals. The Co. C web site provides the following general information: Overviews FAQs Terms & Conditions Privacy Saa. S vs on-premise Competition Pricing ELAs & Saa. S Sample User Scenarios Typical sales cycle for a Saa. S deal § Links to payload info § § § § § 36 The Co. C web site provides the following information for each Saa. S payload: § § § Offering Capabilities Scalability & Security issues References FAQs Saa. S versus On-premise Dealing with competition Typical Sales Cycle for this payload Pricing, entitlements, trade -ups Terms & Conditions TCO calculators Integrations & Extensions Doing evaluations For IBM Sellers: https: //ibm. biz/salescoc For Partners: www. ibm. com/csicenter/partners © 2014 IBM Corporation

Resources used by C&SI partners • Tools: • IBM Service Engage is the landing Resources used by C&SI partners • Tools: • IBM Service Engage is the landing page for C&SI Saa. S offerings. Customers can learn, explore, demo, set up a trial, and purchase offerings. • Software Value Plus program uses Partner Guided Selling (PGS) Tool to process all Tier 2 Saa. S Offering Quotes by the VAD • Saa. S Solution Provider program uses Software Quote & Order (SQO) Tool for all Saa. S Solution Provider Quotes entered by an IBM Rep • Saa. S Referral Program uses Saa. SIncentive. com Tool to process Saa. S opportunities and claims entered by Business Partners • Other resources for sellers: • C&SI Saa. S Sales Kit & Center of Competence on Partner World • To learn more about the technologies: • Cloud, Cloud computing • Saa. S: WWW, You. Tube 37 © 2014 IBM Corporation

What should I do next? § Go to Service Engage, learn about it, provide What should I do next? § Go to Service Engage, learn about it, provide feedback § Learn about Saa. S and C&SI’s 1 H 2014 Saa. S offerings. § Approach your top 5 customers with these questions: § Does the overwhelming cost of maintaining their infrastructure hinder developing new services that could bring in additional revenue? § Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors? § Do they want to lower their Total Cost of Ownership C&SI Strengths: (TCO) ? § Customer choice: On§ Determine where your customer wants to be, and how premise, Saa. S, integrated they should get there. experience § Encourage them to test drive Service Engage today § Integration with broader § Look for opportunities to up / cross-sell Service Management capabilities § Make a Saa. S proposal. § Accelerate sales velocity with Service Engage § Unsurpassed breath of capabilities 38 © 2014 IBM Corporation