© 2012 IBM Corporation This document is for IBM and IBM Business Partner use only. It is not intended for client distribution or use with clients. IBM.

© 2012 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for client distribution or use with clients.

IBM Software Business Partner Guide

September 2012

© 2012 IBM Corporation

Click here for Table of Contents

This document is for IBM and IBM Business Partner use only. It is not intended for client distribution or use with clients.3

IBM Software Guide – Table of Contents

3

How to Make Money Selling IBM Software

IBM Strategy and the Software Opportunity

Business AnalyticsCollaboration Solutions (Lotus)Industry SolutionsInformation ManagementMobile FoundationPureSystemsRationalSecurityTivoliWebSphere

Software Value Propositions

Getting Started




Join the IBM Software Team TODAY and Increase Your Profit Potential

Competitors IBM

36%

36% more grossprofit per deal

Revenue from <$100K leads passed averages $1M

Fee-free: no program enrollment fees Incentives for new licenses and renewals

Gross Profit from Middleware Deals

Rich IBM Software incentives reward Business Partners for value-add, influence and referral

IBM Software Business Partners have higher overall satisfaction

Source: 2009 IBM Software Business Partner Profitability Study, 2010 IBM Business Partner Diagnostics Survey, 2011 IBM SVP Program Assessment, competitor websites

15:1 increased profitability due to IBM Software Value Plus

Authorization

9:1 increased revenue due to IBM Software Value Plus

Authorization

Up to $50K “You Pass, We Pay” course and test

reimbursement for Premier Business Partners




Why Become an IBM Business Partner

5

Highly rated compensation package for maximum cash flow and return on investment (with

additional rewards for mid-market focus and value-add)

Leverage IBM Software marketing resources quickly and easily with cost-effective,

personalized campaigns and help from our expert agencies and Marketing Centers.

Comprehensive technical resources, education and enablement to build expertise and minimize your cost via PartnerWorld, the no-cost Virtual Innovation

Center, or advanced support via Techline.

Become part of “Team IBM” to optimize effectiveness and exploit economies of scale with the aid of IBM resources to help optimize your participation in IBM offerings, share resources, skills, support,

opportunities, and jointly develop joint go-to-market plans and tactics using the IBM award-winning PartnerWorld portal.

Grow your IBM Software business with revenue multipliers judged highest in the industry by BPs. Enjoy significant up-sell/

cross-sell and annuity revenue opportunity, and leading financing options for competitive advantage.

Improve customer responsiveness with comprehensive, cost-effective accessible technical support with access to

24 hour multi-format technical resources and enjoy rewards through the IBM’s certification program

Exploit the market pull of the industry’s largest and well recognized IT solution vendor for more business opportunity,

with a comprehensive, technically advanced portfolio of infrastructure software

Why Team with IBM Why Invest and Grow with IBM

IDC Partner Profitability 2011 Study Business Partners that sell IBM Software report:

The highest overall retained margins for the resell of their primary brands

The components of IBM's programs are greater accelerators to their business as compared to the total population.

Source: IDC Multi-Client Study, Partner Profitability 2011: Changing Business Models and Requirements in the Evolving IT Channel Ecosystem




IBM Business Partners are vital to IBM’s business

The IBM Business Partner Charter – guiding principles to work together

IBM Business Partners are vital to IBM’s business.

Our relationship is a collaboration of equals.

We strive to provide the industry’s best Business Partner experience in all respects.

We ground our relationships in the core values of IBMers

IBM Business Partners play a critical role in building a smarter planet.

- Provide midsize companies with groundbreaking solutions that improve efficiency and accelerate ROI

- Help smaller companies level the playing field, increasingly important in a world where ideas trump resources.

© 2012 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for client distribution or use with clients.


77

IBM Software Business Partners have a wide range of profit opportunities including cross sell, influence, resell and bundled solution resell

Software Value Plus(SVP)

Software Value Plus(SVP)

Industry and Capability Authorization

Industry and Capability Authorization

Application Specific License (ASL)

Application Specific License (ASL)

Global program for SW resellers / influencers:

Consistent requirements and benefits in all countries for Product Group authorizations

Incentives for resale and influence for all client opportunities

Software Value Incentive (SVI): Incentives for Business Partner opportunity identification and progression

Earnings opportunities from 5% to 50%+

Recognition for expertise in providing client solutions, based on key IBM Software products

Industry: covers key Industries (Finance, Banking, Manufacturing…)

Capability: Security, Cloud, Social Business, Smarter Commerce, Business Analytics & other high growth solution areas

IBM Business Partner Mark Earnings opportunity from

20% to 30%

Resell model for lightly embedded and bundled solution offerings

Business Partner owns client relationship, including the license agreement

Single point of contact – sales and support

Business Partner earns via discount on product sales for both initial sales and annual renewals

Resell and Influence Solutions Bundled Solutions

PartnerWorld Incentives for Software Business Partners

Source: IBM Software SVP, SVI, Value Advantage Plus (VAP), SAI and ASL Program Operations Guides on IBM PartnerWorld

Solution Accelerator Incentive

(SAI)

Solution Accelerator Incentive

(SAI)

Global program for HW & SW resellers

Earn a Base Reward for selling IBM hardware and software together

Earn a Solution Bonus Reward for selling an IBM-defined solution

Claim is made through IBM SW VADs

Minimum revenue level (hw + sw) for a claim is $20K USD

Earnings opportunities from 15% to 30%

Cross Sell




How do I Make Money Selling IBM Software?

8

Facts: SVI/VAP participating Business Partners are 50% more likely to report high gross profit margins (>20%) on middleware deals than non-participants

Facts: SVI/VAP participating Business Partners are 50% more likely to report high gross profit margins (>20%) on middleware deals than non-participants

SVI (Software Value Incentive)

Rebates paid after the sale has closed

VAP (Value Advantage Plus)

Business Partners combine services with the solution sale and get an instant discount from your Value Added Distributor (VAD)

General Business Instant Rebate

Increase profitability with instant incentives paid by your VAD

Source: 2009 IBM Software Business Partner Profitability Study

IBM offers multiple programs to help you increase your Margin

Business Partners can earn incentives ranging from 5% - 60%




Supporting Business Partners with the Right Tools

Profitability ToolBusiness Partner Locator Tool

Grow Your Business Tool

Web ContentSyndication Ready to Execute

Campaigns Co-Marketing

Midmarket Asset Gallery and Assessment Tool

Financing a Smarter Planet

Getting Started with Social Media IBM Global Financing




PartnerWorld Technical

Support Resources

IBM PartnerWorl

d Communitie

s

PartnerWorld Software Value

Plus

Business Partner

Innovation Centers

PartnerWorld Selling

Resources

developerWorksResources for

Developers

Early Access Software Solution Training

IBM Innovation

Centers

IBM SWG Product Guide

PartnerWorld Value Package

benefits

IBM Industry Frameworks

IBM Support

Assistant

IBM Software

Acquisitions

Solution Assurance

Technical and Delivery

Assessment

Technical Support to help you get to Market Fast!




Help Build Smarter Profits IBM Supports You and Your Business End-To-End

11

“IBM’s Business Partner program is among the top few in the industry, if

not the top program.”

Darren Bibby, IDC

$2B IBM Annual Channel Investment

Industry Leading Products, Solutions

and Services

Exceptional Profit Model for

Business Partners

Worldclass Enablement and Go-to-Market Support

Leading Technology

Training & Skill Building

New Revenue Streams

Market Awareness

Demand Generation

Technical Support

Source: IBM Internal Reports




Why IBM? 2015 Roadmap for Growth Global IT industry leader serving clients and Business Partners for over 100 years

Growth Markets – $234 billion opportunity

Business Analytics – $168 billion opportunity

Cloud – $196 billion opportunity

Smarter Planet – $179 billion opportunity

IBM Software is on-track to contribute as much as half of IBM’s

profits by 2015

Let’s Build a Smarter Planet

Together

Source: IBM Market Insights , 2015 Total IT Opportunity, 1H12 This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.




IBM is Investing in Software and Growing…

25 25 AcquisitionsAcquisitionsAnnouncedSince 2010

11,00011,000Technical Professionals

25,000 25,000 Developersin 43 labs

5,500+5,500+ High ValueSoftware Business Partners75,00075,000

Business Partner TechnicalCertifications

• #1 in middleware market share• Largest enterprise software company• Software revenue has nearly doubled

and profit more than tripled since 2000

Business Know-how and Business Know-how and Technology InnovationTechnology InnovationAccelerate the JourneyAccelerate the Journey

Source: IBM Annual Reports, Investor Day Briefings, and IBM PartnerWorld




A transformed software portfolio IBM meets clients’ business and IT needs by industry and role

Supply chain CSCO

Industries

FinanceCFO

Human resources CHRO

Marketing CMO

ExecutiveCEO

Functions/roles

IT CIO

Turn information into insights

Deepen engagement with customers, partners and employees

Deliver enterprise mobility

Accelerate product and service innovation

Optimize IT and business infrastructure

Manage risk, security and compliance

Enable the agile business

Business and IT needs

Banking Energy Government Healthcare Education Transportation Retail Communi-cations




IBM Software market opportunity by business need

Deliver Enterprise Mobility

Deepen Engagement with Customers, Partners, and

Employees

Manage Risk, Security and Compliance

Turn Information Into Insights

Optimize IT and Business Infrastructure

Enable the Agile Business

Accelerate Product & Service Innovation

2012 Total Market Opportunity $147B($5B not captured with a capability)

2012-15 Relative Growth by Business Need

Source: IBM Market Insights, 1H12 IBM Software Capabilities 05 02 12, FX Plan Rate This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Turn Information Into Insights

Not IncludedManage Risk, Security and Compliance

Accelerate Product & Service Innovation

Deliver Enterprise Mobility

Enable the agile busines

Deepen Engagement with Customers, Partners, and Employees


52% of the opportunity comes from two needs, while Enterprise Mobility spurs the highest growth 2012-15




IBM Software products roll up to a core set of 28 capabilities that form the building blocks of solutions that address business needs

IBM Software serves 47 technology segments with

4500+ products

IBM’s software portfolio is unmatched in the breadth and depth of it’s capabilities to solve business needs

Source: IBM Market Insights

Turn information into insights

Deepen engagement with customers, partners and employees

Enable the agile business

Accelerate product and service innovation

Optimize IT and business infrastructure

Manage risk, security and compliance

Deliver enterprise mobility

Business Analytics Data Management Big Data Data Warehousing Enterprise Content Management Information Integration

and Governance

Social Collaboration Unified Communications Web Experience Commerce Enterprise Marketing

Management Smarter City Operations

Business Process Management Connectivity, Integration and

Service-Oriented Architecture (SOA)

Application Infrastructure

Mobile Development and Connectivity

Mobile Management and Security

Cloud and IT Optimization Asset and Facilities Management Enterprise Endpoint Management

Application Lifecycle Management Complex and Embedded Systems Enterprise Modernization

Identity and Access Management Data Protection Application Security Infrastructure Protection Security Intelligence and

Compliance Analytics




Significant potential growth opportunities for IBM Business Partners aligned to client business needs

17

Source: IBM Market Insights, 1H12 Capabilities 05 02 12, FX Plan Rate This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

2015 IBM Software Market Opportunity by Business Need and Capability

Capability

BusinessNeed

$0

$25

2015Market

Size ($B)

0%

30%

2012-15CAGR

2015 Market Size 2012-15 CAGR

Deepen Engagement with Customers, Partners and

Employees

Deliver Enterprise

Mobility


Enable the Agile

Business

Turn Information into Insights

Accelerate Product

and Service Innovation

Manage Risk, Security and Compliance




Common answers for diverse needsSeize new marketplace opportunities on a smarter planet

Smarter Analytics

Cloud and IT Optimization

Social Business

Security

Product and Service

Innovation

Business Agility and

Mobility

Smarter Commerce

IBM software helps you do it.

Smarter Cities




2012 IBM Software Business Partner Strategy

IBM SoftwareCapabilities

Reach Broader Markets

Embrace New Business Models

Grow High Value Revenue



20

•Sign up with a value added distributor (VAD) •Sign up with a value added distributor (VAD)

•Build your PartnerPlan for success•Build your PartnerPlan for success

•Join PartnerWorld•Join PartnerWorld

• Get your technical & sales training • Get your technical & sales training

•Apply for the SVP or SVI and VAP incentives •Apply for the SVP or SVI and VAP incentives

Getting Started with IBM

For more information go to ibm.com/partnerworld/software

Five Steps to becoming an IBM Software Reselling Business Partner Five Steps to becoming an IBM Software Reselling Business Partner




IBM Software brands and capabilities provide market opportunity for Business Partners who build solutions using our product portfolio to help them sell, build

references and drive continued success…

Market Opportunity

Solution and Product Portfolio

Why Sell/Value Propositions

Partner References

Partner Profiles

Partner Resources

Software Value Propositions

© 2012 IBM Corporation This document is for IBM and IBM Business Partner use only. It is not intended for client distribution or use with clients. IBM.

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