© 2012 ibm corporation welcome welcome to the ibm business partner 2012 business strategy update...
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© 2012 IBM Corporation
WELCOMEWELCOME to theIBM Business Partner 2012 Business Strategy Update Event
IBM Business Partner Organisation
© 2012 IBM Corporation
IBM Business Partner 2012 Business Strategy UpdateRichard Potts, VP IBM BPO & MM UKI
IBM Business Partner Organisation
© 2012 IBM Corporation
Roy Struthers
Director, Systems and Technology GroupUK & Ireland
Systems and Technology Group, UK & Ireland
© 2012 IBM Corporation
Look back at 2011
STG Strategy
Coverage Model and Organisation
What does it mean for our partners ?
Systems and Technology Group, UK & Ireland
Agenda
© 2012 IBM Corporation
A look back at 2011 for STG in UK and IrelandSystems and Technology Group, UK & Ireland
Platforms
Storage, RSS and Mainframe
System X
Power Systems
Growth Initiatives
Competitive Winback
Midmarket
Software/Analytics/Cloud/HPC
Execution
Market Share
End of quarter deal slippage
Revenue decline in major accounts
Inefficient go to market/coverage
© 2012 IBM Corporation
STG Strategic Initiatives
TransformGo to Market
Invest in Growth
Exploit new routes
– Expand business partner channel
– Systems Integrators & ISVs Focus on solutions
– Strengthen Solution selling skills
– Go-to-market teaming with software
Expand the client base
– Competitive migrations
– Expansion in Growth Markets
Scale Smarter Computing
– Accelerate adoption
– Deliver proof points
IBM Growth Priorities
– Business Analytics and Optimization
– Cloud
– Smarter Planet
– Growth Markets
STG-led Growth Plays
– Systems Software
– Systems Networking
Deliver TechnologyInnovation
Systems optimization– Semiconductor to
middleware – Integration across
server, storage and networks
Storage differentiation– Storage efficiency – Data protection
Acquisitions
Systems and Technology Group, UK & Ireland
© 2012 IBM Corporation
The STG 2012 Coverage Model
BP fulfillment
BP Sell and Fulfill
Whitespace accounts
From general account alignment…
Engaging en-mass with inconsistent roles
Overly focused on Core Accounts
… to alignment dictated by OO-lead on each account
IBM leads saleIBM or BP fulfills
IBM Core Account Brand Sales Specialists
BP leads sale BP fulfills
IBM Channel Account Brand Sales Specialists
IBM or BP leads saleIBM or BP fulfills
IBM Invest Account Brand Sales Specialists
STG Core Accounts STG Channel Growth Accounts
STG Invest Accounts
Systems and Technology Group, UK & Ireland
© 2012 IBM Corporation
Sean CoulsonSTG UKI VP
Dave Shave-Wall Architecture Lead Richard Wilson Power Client Technical ManagerHafiz Ali System X and RSS Neil Mitchell Storage Client Technical Manager Ian Peacock System z Andy McManus Storage Client Technical Manager
Sean FlanaganTechnical BUE
Charlotte Beele StrategyJamie Graham Marketing
STG UK and Ireland 2012 – strengthened Brand alignment
Paul ChongSystem z BUE
Paul CameronStorage BUE
Roy StruthersSystem p BUE
Richard BaileyCore Accts
David Chancellor Madison
Invest Accts
John CostaChannel Growth
Accts
Simon RobertsonPlatform Lead
Rob PearceMarketing
Paul BrownSector/Growth BUE
Paul SouthwickGB BUE
Systems and Technology Group, UK & Ireland
Becky SchnaufferCore Accts
Grant AmosInvest Accts
Stuart HeadeChannel Growth
Accts
Ian ShavePlatform Lead
Andrew FieldMarketing
Craig AstonCore Accts
TBANew Workloads
James Houselander
Marketing
Lee AllcornGB System X
Mike Arco-AdjeiSystem X
Nigel FaulknerSystem X
Dave RidleyProduct Manager
Jennifer ParkerMarketing
Rohail NoorSystem x
Nigel WatkinsMajor Deals
Pete KearneyGrowth Initiatives
Steve BowdenHPC
Claire SainesSector Marketing
Estelle Andlauer
Growth Marketing
Ian LyonGBE South and
LSE
Jeff CollinsGBE North
Peter Kelly GBE Scotland
and Ireland
Lesley SmithRSS Sales
David BeerRSS SW
James HouslanderMarketing
Andrew CarrRetail Store Systems
© 2012 IBM Corporation
Summary of STG UKI focus for 2012 and call to action
What to expect from STG:
Simplified Brand Centric Structure
Improved Loyalty Programs and Channel Incentive Program
More STG dedicated Channel Brand Systems Specialists
Complex/Mega Deal Pursuit Team
Refocus and re-engage with CSI’s/ISV’s
Focused support for Cloud Service Providers
High Performance Computing Investment
Targeted Competitive Account Focus
Systems and Technology Group, UK & Ireland
Call to action:
Engage with strengthened STG CBSS Team
Leverage loyalty and incentive programs
Enable your teams for Smarter Computing
Expand install base through competitive wins
Engage in solution eco-system – IBM, CSI’s, ISV’s, BP’s
Drive growth through new business models which leverage Analytics, Cloud, HPC and Integrated Platforms
Deal Management (including deal registration) help us to help you
© 2012 IBM Corporation
Cloud … Enabling a smarter future Doug Clark, IBM Cloud Leader UK and IrelandTwitter: cloudstuff
IBM Business Partner Organisation
© 2012 IBM Corporation
“Cloud” is a service-based on-demand consumption and delivery model for IT
Cloud is enabled by
Ubiquitous network access Pooling and virtualization of resources Automation of service management Standardization of workloads
Cloud enables Self-service Location independence Sourcing options Flexible payment models Economies-of-scale
© 2012 IBM Corporation
• Expect significant increase in substantial change resulting from cloud
41%13%
• Expect to reinvent their customer value propositions with cloud
29%10%
• Expect to create / transform value chain through cloud
• Shift focus to driving substantial impact on customer relationships
57%
16%
14%
*Source: Institute for Business Value / The Economist study 2011
Recognition of the direction of travel..
43%
© 2012 IBM Corporation
2012Smarter Planet
The 2012 IBM HorizonWatch Technology Trends To Watch identifies the technology building blocks of a Smarter Planet
13 HorizonWatch: Top Technology Trends To Watch In 2012January 11, 2012
1. Cloud Computing
2. Virtualization
3. Social Business
4. Mobile Computing
5. Big Data
6. Analytics
7. IBM Watson
8. Human / Computer Interaction
9. Security
10. Sustainability & Green IT
11. Consumerization of IT
Top Trends - 2012
Amount of Data Collected and Stored
© 2012 IBM CorporationHorizonWatch: Top Technology Trends To Watch In 2012January 11, 2012
These trends interact…particularly cloud
Source: David Jarvis, Bill Chamberlin
14
Cloud Computing Virtualization
Social Business
Mobile Computing
Big Data
IBM Watson
Security
Sustainability & Green IT
Analytics
Consumerization of IT
Human / Computer Interaction
© 2012 IBM Corporation
Speed / Adaptability
Reduced Complexity
Cost flexibility
Scalability / ElasticityEnhanced collaboration
Faster time to marketRapid prototyping, development, deployment
Tap into new, innovative solutionsAdaptability to competitor response
Shift capex to opexFaster ROI or time to value
Pay-per-use software and servicesProcurement of fine-grained services
Creation of new value nets including SMEsShared infrastructure and services from cloud service providers
Enhanced productivity through customer / partner interaction
On demand computing power, software and servicesScale rapidly up or down
Limitless peakingAddress highly volatile, unpredictable resource demands
Complexity hidden from end-userUser independence from IT or other operational issues
Strict separation of concerns between provider and consumer
Standardization
Browser-based accessEasy provisioning of services
Promotes standardized resources & processesEncourages collaboration and device agnostic mobility
1
2
3
4
5
6
Cloud enables..
Six business benefits of cloud
© 2012 IBM Corporation
Server / Storage Utilization 10-20%
Self service None
Test Provisioning Weeks
Change Management Months
Release Management Weeks
Metering/Billing Fixed cost model
Standardization Complex
Payback period for new services Years
70-90%
Unlimited
Minutes
Days/Hours
Minutes
Granular
Self-Service
MonthsLegacyenvironments
Cloud enabled enterprise
Cloud accelerates business value across a wide variety of domains.
Capability From To
VIRTUALIZATION
AUTOMATION
STANDARDIZATION
..being manifested in step-change improvements
Cost Flexibility
© 2012 IBM Corporation
Creating new business models Enabling speed and innovation Re-engineering business processes Supporting new levels of collaboration Unleashing the end user productivity
Reinvent Business
Changing the economics of IT Automation of service delivery IT governance and policies Radically exploiting standardization Rapidly deploying new capabilities
Rethink IT
Tran
sform
ation
Eff
icie
nc
y
..with the major prize being transformation and smarter business
© 2012 IBM Corporation
Del
iver
y M
od
el
• Single Enterprise• Commodity, Core and
Specialist Services• Secure Hosted inside
client firewall.
Ser
vice
Mo
del
Single Enterprise
Enterprise EnterpriseEnterpriseEnterprise
• Shared process and Shared data across many Enterprises
• Core, Commodity and Specialist Services
• Club Cloud Model• Secure access to
PAYG service.
Regional ‘Club’ Clouds
• Extended Club and affiliate Model
• Shared services or traded services on a PAYG basis
• More focus on specialist services e.g. weather/ crime/ retail.
Common Interest ‘Club’ Clouds
• Commodity Services only• Create stickiness and
customer retention with ‘club’ look and feel
• Security and Data privacy is harder.
Public Clouds
1 2 3 4
Federated/Collegiate Centralised & Endorsed
User DUser A
User BUser CUser DUser A
User BUser C
Hybrid (Public/ Private) Cloud
Services
Public Cloud Services
..across different cloud models
Provider owned and operated
Hosted Private Cloud
Hybrid (Public/ Private) Cloud
Services
© 2012 IBM Corporation
Cloud is already ‘enabling a smarter future’ The unpredictable nature of a sporting event
demands a dynamic infrastructureThe unpredictable nature of a sporting event
demands a dynamic infrastructure
© 2012 IBM Corporation
Behind the scenes: Wimbledon 2011
Common business challenges
Rising global energy prices
Squeeze on IT budgets
Constraints on IT growth
High density server systems
Exploding power & cooling cost
Ageing data centers
Special challenges:
Unforeseeable spikes in demand
Services cannot be easily moved to match availability of system resources
Over-provisioning to ensure capacity and redundancy at peak
© 2012 IBM Corporation21
Allows dynamic provisioning/de-provisioning of resources for changing requirements across year.
Is highly optimised - achieve more with less – huge user growth yet the cost per user reduced.
Ensures continuous availability using 3-Active architecture.
Uses virtualisation, energy efficiency, standardisation and automation to free up operational budget for new investment.
Increases flexibility, improves resilience, lowers cost and improves time-to-market.
Deals with tremendous year to year growth in traffic and increased user demand – affordably.
The Infrastructure behind Wimbledon.com
© 2012 IBM Corporation
IBM PointStream:
Gives 3 “Keys to the Match”, using predictive analytics technology in the Cloud: IBM’s SPSS as a Analytics as a Service on the Cloud
Wimbledon.com – analytics makes the experience more engaging for users
Analyzes over 5 years of Grand Slam Tennis data (>39 million data points) for patterns and styles, Applied knowledge against an opponents patterns gives the “Keys to the Match" Dashboard updated in real-time
© 2012 IBM Corporation
Wimbledon 2011 Users increased 36% to 15.6M
Wimbledon 2011 Page Views increased 37% to 451M
Plus….
Energy consumption has been reduced by 38% and cooling demand reduced by 48%.
Floor space has been reduced by 54% due to the migration to the Leadership Data Center
2011: Business Outcomes…across the “majors”
*These results reflect the traffic to the Infrastructure that hosts the Four Tennis Grand Slams, Tony Awards, The Masters and US Open Golf .
© 2012 IBM Corporation
Cloud Components
CloudServices
“Consume over Internet”“Design and Build Private
Clouds or Service Provider Clouds”
IBM Cloud Portfolio - mapped
Platform as a Service Technologies
Infrastructure as a Service Technologies
InfrastructurePlatform
Usage and Accounting
Availability and Performance
Managementand Administration
Security and Compliance
Application Lifecycle
Application Resources
Application Environments
Application Management
Integration
Platform as a Service Technologies
Infrastructure as a Service Technologies
InfrastructurePlatform
Usage and Accounting
Availability and Performance
Managementand Administration
Security and Compliance
Application Lifecycle
Application Resources
Application Environments
Application Management
Integration
Smarter Cities
Social Business
Smarter Commerce
Business Analytics and Optimization
Business Process as a ServiceSoftware as a Service
Consulting &Implementation
Services
IaaS
PaaS
BPaaSSaaS
“Design my cloud”
IaaS
PaaS
SaaS
BPaaS
CloudStrategy
© 2012 IBM Corporation
We are seeing new cloud partner types emerge that blur traditional partner definitions and models
The IBM Cloud Specialties
Cloud BuildersCreating customized private cloud solutions for client and provider infrastructures
Cloud Infrastructure ProvidersLeveraging the IBM Cloud to provide IaaS/PaaS capabilities
Cloud Technology ProvidersExtending the function and value of IBM SmartCloud
Cloud Application ProvidersDelivering standardized SaaS solutions on IBM SmartCloud
© 2012 IBM Corporation
“ organisations who are able to meet the changing needs of customers and
through partnerships establish themselves as
differentiated service providers in cloud-enabled
markets can win.. ”
Read all about it
© 2012 IBM Corporation
$100m +Announced IBM cloud investments in 2011
$100m +Announced IBM cloud investments in 2011
IBM and cloud..
2000Cloud engagements in first half of 2011
2000Cloud engagements in first half of 2011
4.5mDaily client transactions through public cloud
4.5mDaily client transactions through public cloud
1mManaged virtual machines
1mManaged virtual machines
80%Fortune 500 utilising IBM cloud capability
80%Fortune 500 utilising IBM cloud capability
19mIBM Saas users
19mIBM Saas users
6bnConsumer interactions managed in 2010 on IBM SmartCloud
6bnConsumer interactions managed in 2010 on IBM SmartCloud
200IBM researchers working on cloud security and privacy
200IBM researchers working on cloud security and privacy
13bnSecurity events managed per day for 4000+ clients
13bnSecurity events managed per day for 4000+ clients
$7bnIBM cloud revenue by 2015
$7bnIBM cloud revenue by 2015
© 2012 IBM Corporation
IBM Cloud Computing Reference Architecture (CC RA)IBM Cloud Computing Reference Architecture (CC RA)
Governance
Security, Resiliency & Performance
Cloud Service Provider
Cloud Services
IaaSIaaS
PaaSPaaS
SaaSSaaS
BPaaSBPaaSPartner
CapabilitiesPartner
Capabilities
Common CloudManagement Platform
Cloud Service Integration
Tools
Cloud Service Integration
Tools
Consumer In-house IT
InfrastructureInfrastructure
MiddlewareMiddleware
ApplicationsApplications
Business ProcessesBusiness
Processes
OSS – Operational Support ServicesOSS – Operational Support Services
Platform & Virtualization Management
Platform & Virtualization Management
ProvisioningIncident & Problem
Management
IT Service Level
Management
Service Automation Management
Service Delivery Catalog
ProvisioningIncident & Problem
Management
IT Service Level
ManagementProvisioningProvisioning
Incident & Problem
Management
Incident & Problem
Management
IT Service Level
Management
IT Service Level
Management
Service Automation Management
Service Delivery Catalog
Service Automation ManagementService Automation Management
Service Delivery CatalogService Delivery Catalog
BSS – Business Support ServicesBSS – Business Support Services
TransitionManager TransitionManager
DeploymentArchitectDeploymentArchitect
OperationsManager OperationsManager
Service Provider Portal & APIService Provider Portal & API
Consumer Administrator
Consumer BusinessManager
Consumer BusinessManager
Consumer End user
Service Creation Tools
Service Management Development
Tools
Service Management Development
Tools
Service Runtime Development
Tools
Software Development
Tools
Software Development
Tools
Image Creation Tools
Image Creation Tools
Service Component Developer
Service Component Developer
InfrastructureInfrastructure
PaaS MgmtInterfaces
PaaS MgmtInterfaces
SaaS MgmtInterfaces
SaaS MgmtInterfaces
BPaaS MgmtInterfaces
BPaaS MgmtInterfaces
Security &Risk Manager Security &Risk Manager
CustomerCareCustomerCare
ServiceManager ServiceManager
BusinessManager BusinessManager
Service Composer
Service Composer
OfferingManagerOfferingManager
ServiceIntegratorServiceIntegrator
Busin
ess P
roce
sses
Busin
ess P
roce
sses
Se
rvice C
on
sum
er P
orta
l & A
PI
Se
rvice C
on
sum
er P
orta
l & A
PI
Se
rvice D
eve
lopm
en
t Po
rtal &
AP
IS
ervice
De
velo
pm
en
t Po
rtal &
AP
I
© 2012 IBM Corporation
IBM’s uses cloud across the organization to transform business
•109,000 IBM employees use Blue Insight, the world’s largest business analytics private cloud.
•1,800 IBM marketers across 6 continents utilize IBM cloud-based Marketing Operations daily.
•6,000 IBM users of Blueworks Live to improve internal business processes
•200 million minutes of IBM web conferencing with LotusLive Meetings.
•Avoiding over $20M in expenses over 5 years with our private analytics cloud
•1,200 users in IBM China development labs, plus IBM Call Center teams in the United States and India, have migrated to a desktop cloud environment.
32
© 2012 IBM Corporation
IBM Software – the perfect time to engage
Paul Shackleton
Software Group Midmarket Sales Leader - Europe
23rd January 2012
© 2012 IBM Corporation35 IBM Investors Briefing April 2011; Segment pre-tax Income
IBM – Investing in Software
Profit: Software and Services driving IBM growth
Hardware/financing
45%
38%
16%
40%
37%
23%
25%
40%
35%
2000 2006 2010
Software Services
Recent IBM Software Investment:
• More than US$14 billion in acquisitions since 2005
• 70 software acquisitions since 2001; US$20 billion in future acquisitions
• More than US$9 billion in R&D from 2007
• 40 innovations centers, 80 R&D labs, 33,000 developers, more than 16,000 active IBM Business Partners and ISVs
• Strategic focus on software solutions and business process transformation
IBM Key Objectives: 2015 Roadmap• $100B in free cash flow• $70B of capital returned to shareholders• Software becomes approx half of segment profit• $20B spending made available for acquisitions• Growth markets approach 30% of Geo revenue
IBM Key Objectives: 2015 Roadmap• $100B in free cash flow• $70B of capital returned to shareholders• Software becomes approx half of segment profit• $20B spending made available for acquisitions• Growth markets approach 30% of Geo revenue
© 2012 IBM Corporation
Acquisitions
© 2011 IBM Corporation3636
Autonomic Operations
Developer Productivity
Deep Compression
pureXML
pureScale
Pervasive Content
Stream Computing
Content Analytics
Advanced Case Management
Workload Optimized Systems
Social Analytics/Consumer Insight
2011
2005
Decision Management
• 100+ acquisitions since 2000
• More than $14B spent in acquisitions since 2005
• More than 10,000 Technical Professionals
• More than 7,500 Dedicated Consultants
• More than 27,000 Business Partner Certifications
1The completion of the transaction is subject to closing conditions including any required regulatory approvals.
1The completion of the transaction is subject to closing conditions including any required regulatory approvals.
www.ibm.com/partnerworld/acquisitionswww.ibm.com/partnerworld/acquisitions
Recently announced: i2, Algorithmics, Q1 Labs, Curam Software, DemandTec, Green Hat, Emptoris Inc.1
Key Component for IBM Software Growth
© 2012 IBM Corporation
$1B opportunity & growing faster than the Enterprise segment, the fastest growing software market is Business Analytics.
Source: 4Q11 GMV Internal Div Forecast v2. Market opportunity for Software sub-brands in the Midmarket is highly modeled, and at this level of granularity it should only be used as a rough guide.
AIM9% Collaborative
Solutions8%
Rational7%
Tivoli27%
Information Management
27%
Business Analytics
14%
Industry Solutions
8%
Share of MM opportunity by brandIn UK & Ireland, 2012, total = $1.02B
2012-2015 MM opportunity growthIn UK & Ireland, 2012-2015 CAGR
BrandGrowth ’12-’15
Business Analytics 8.0%
Industry Solutions 6.2%
Tivoli 6.1%
Information Management 5.6%
AIM 5.6%
Collaborative Solutions 4.9%
Rational 1.9%
Total 5.8%
UK & Ireland Software Opportunity (Midmarket Only) 2012 to 2015UK & Ireland Software Opportunity (Midmarket Only) 2012 to 2015
© 2012 IBM Corporation
e.g. Selling Storage but potential for Systems Management
e.g. Adding Security speciality to your portfolio
e.g. Customers looking for business insights from their data
Examples: IBM Software solutions for alI Partner portfolios
A: Cognos Express - Business intelligence and planning software for midsize companies
A: Tivoli End Point Mgr End point management software for servers, desktops, laptops, and specialized equipment
A: Tivoli & Q1 Labs - Stop internet threats with advanced threat detection and prevention
e.g. Disaster Recovery and Business Continuity
A: Tivoli Storage FastBack - Data protection & recovery for Windows and Linux servers connected to storage platforms
Q: Fulfilling Software but have an opportunity to enhance customer solution?
Q: Already selling some IBM Software today but want to widen the portfolio?
Q: Selling software (but not IBM Software) interested in expanding / complimenting existing products and solutions?
Q: Selling some IBM Software but want to expand within that portfolio?
© 2012 IBM Corporation
2011 IBM Cost Buster Solutions for Small Deals
Sample solution bundles, delivered by IBM Business Partners to solve a business problem and are wrapped with financing from IBM Global Financing, making them affordable and accessible.
Configurations are provided for 100 employee size businesses, financed for 36 months. Country Localization may allow financing for 48 or 60 months (4 or 5 years). Solutions can scale beyond 100 end users, there is no hard restriction.
IBM Global Financing provides qualified clients with financing for the total solution including hardware, software and services for both IBM and non-IBM, in one contract with one predictable payment for transactions starting at $5K USD.
Create your specific IBM Cost Buster Solution by working with your local IBM VAD
Highlights:
Customer business needs based approach
Solutions starting at $5K USD
29 New & Refreshed IBM Solutions
Simple ‘per user’ based financing options
End-to-end execution via online tools
Customer Solution Case Study available
Tested with IDC & SMB Group Analysts
Customer deliverables coming to ibm.com
Solutions Built On Business Needs: Turning Information Into Insights Drive Business Integration and Optimization Connect and Collaborate Enable Product & Service Inn. Manage Risk Security and Compliance Optimize the impact of Infrastructures and Services
Exclusively focused on small and midsize businesses bringing affordable financed IBM solutions to address current business needs
Visit Link
© 2012 IBM Corporation
Invest and Grow with IBM Software
Accelerate the expansion of your business. Benefit from the market growth in Smarter Computing, Business and Environment requirements that can be delivered through IBM Systems, Solutions, Software and Financing
Add additional value and margin to each sale. IBM Software will enhance the value proposition to your customers and considerably increase your profit margins on each sale.
Broaden the skills set in your business....and the value of your employees. We will support you in obtaining these skills (You pass we Pay). Customers value these skills and will pay for them. Your staff will achieve enhanced job satisfaction and career development.
Offer additional services to your customers. The expanded skills of your staff will enable you to offer a higher, deeper and broader level of service to your customers. You can demand higher chargeable day rates. Software sales can produce a multiple of over seven times services revenue.
Offer additional value to your customers...through attractive financing. Industry leading financing options reduce your receivable's risk. Customers can spread payments and in selective cases benefit from 0% financing through our Costbuster program.
Retain and secure your client base by offering a complete solution. You can become the sole supplier to your customer and also advise them on future direction, including Cloud, Analytics, Smarter Computing and Smarter Business. Be a trusted advisor.
Increase your customer base. IBM’s customer base continues to expand generically and through acquisition. IBM SWG has acquired over 80 businesses in the last 10 years…you can be part of this great market development.
© 2012 IBM Corporation
SWG Channel Focus in 2012
Increase Channel Engagement & Incentives
• BPLM Launch with Midmarket focus
• Drive solutions with key partners – VARs, MSPs, ISVs, SIs…
• Software Renewal Value Incentive
• Expand focus on acquired offerings
Drive more opportunities with Business Partners
• Significant increase in co marketing funds available
• Accelerated Lead Passing Expansion
• All leads below 100k to be passed to Channel
Program simplification
• SVI claiming process reduced
• SVI Fastpath for Small Deals
© 2011 IBM Corporation42
© 2012 IBM Corporation
Business Partner Led Model
Link to BPLM page in PartnerWorldLink to BPLM page in PartnerWorld
© 2012 IBM Corporation
Business Partner Led Model - Introduction
What is the IBM Software Group BPLM?
A growth initiative designed to expand coverage, accelerate market penetration and increase revenue
A new coverage segmentation which utilises BPs as the lead SWG Route to Market
A BPLM is defined by IBM as either a defined territory, a defined set of accounts, a geographical coverage area or a defined set of products in a brand, for example:
– All Midmarket customers in London & South East Territory – Business Analytics Portfolio for North Region– All sectors Ireland
Why have IBM implemented this approach?
Market opportunity exists and is not being covered by IBM Sales force effectively
Great opportunity to increase Channel participation and increase investment by Business Partners
Recognition that Business Partners have more expertise in those brands / industries / territories
Major Software Group investment to succeed in Midmarket
Who can enrol in an IBM BPLM?
BPLM is open to any partners wishing to meet the program criteria
ASL Business Partner revenue is ineligible
© 2012 IBM Corporation
BPLM – Key Details
How does a SWG BPLM work?
A BPLM is defined in country
A dedicated revenue plan is assigned to IBM Software BPLM Manager to be executed exclusively through Business Partners
Business Partners will need to register but must meet simple Program criteria to enrol
Business Partner commits to an annual target for each BPLM they wish to enrol for
Business Partner creates business plan and commits to regular sales & marketing interlock
IBM commitment to the BPLM is established for minimum 2 years
What are the benefits to a BPLM Business Partner? No competing IBM resources or Channel conflict
Competitive advantage versus other BPs (incremental incentive is applied to your normal SW margins)– Additional 8% rebate is applied for performance of up to 100% of target – An additional 7% rebate is applied once BP is above 100% of target (Commercial Accounts only)
Dedicated IBM resources and focus provided– BPLM Manager assigned– Priority SWG Technical Support– Priority Marketing Support (Co Marketing Funds & Lead Allocation)
Increased opportunity with IBM– New whitespace accounts– Upsell opportunity with existing customers in that BPLM– Services growth
© 2012 IBM Corporation
UKI – Planned BPLM Structure & Coverage
1. Business AnalyticsLondon South East Region
1. Business AnalyticsLondon South East Region
2. Business AnalyticsNorth / South Regions2. Business AnalyticsNorth / South Regions
3. ICS (Lotus)LSE / North / South Regions
3. ICS (Lotus)LSE / North / South Regions
4. RationalLSE / North / South Regions
4. RationalLSE / North / South Regions
5. TivoliLSE / North / South Regions
5. TivoliLSE / North / South Regions
6. All SWG BrandsIreland
6. All SWG BrandsIreland
• 6 x BPLMs covering UKI and Ireland will be launched for Midmarket (excludes MM
customers in Public Sector & Health Auth.)• Planned implementation and enrolment NOW = January 2012• BPLMs for Scotland being finalised• BPLMs for Information Mgmt and WebSphere under consideration
• 6 x BPLMs covering UKI and Ireland will be launched for Midmarket (excludes MM
customers in Public Sector & Health Auth.)• Planned implementation and enrolment NOW = January 2012• BPLMs for Scotland being finalised• BPLMs for Information Mgmt and WebSphere under consideration
© 2012 IBM Corporation
BPLM – Partner Enrolment Criteria
Business Partners are requested to meet the following requirements:
Be a member of IBM PartnerWorld
Have the Software Value Plus (SVP) authorisation(s) to resell the Software Product Group(s) for which you apply
Designate an individual from your Business Partner firm to be the primary contact
Have an approved BPLM Business Plan, including sales and marketing / demand generation activities, to reach the annual revenue target commitment published for the BPLM Coverage Group to which the Business Partner is applying
Complete and submit the application to the BPLM offering, acknowledging the corresponding annual revenue target published for that BPLM (applicable for resellers only)
Once the application is approved, accept the terms and conditions of the Attachment for Business Partner-Led Model in the Partnerworld Web site
Business Partners are requested to meet the on-going requirements:
Satisfactory marketing reviews (one per quarter)
Satisfactory sales reviews (four each quarter)
Achieve at least 75% of the BPLM Coverage Group annual revenue target
© 2012 IBM Corporation
IBM Software – Business Partner Incentives
Software Incentives can include a mix of the following:
Base Discount:– Calculated from end-user entitled/special bid price
Enterprise / General Business / Midmarket Rebates:– Different discounts applied to each account set
Value Advantage Plus (VAP):– New license revenue, instant rebate
Solution Value Incentive (SVI) Sales & Solution Incentives:– Identification + Sell Incentive– SVI Solution Incentives
• Industry Solution and Capability Solution• Fees in commercial accounts, instant rebate in Government accounts
– SVI x2 Competitive Incentive Fee
Business Partner Led Model (BPLM) rebates- initial base incentive- Additional incentive
© 2011 IBM Corporation48
Significant margins exist – contact your VAD for details on what you can earn on IBM SoftwareSignificant margins exist – contact your VAD for details on what you can earn on IBM Software
0%0%
Potential to earnup to 70%
Potential to earnup to 70%
© 2012 IBM Corporation
$2.5B annual investment in Business Partners
Longstanding commitment to collaboration
Software will drive 50% of IBM’s profits by 2015
Capabilities to help build a Smarter Planet
Industry Leading Products, Solutions
and Services
Exceptional Profit Model for
Business Partners
Worldclass Enablement and Go-to-Market Support
Why invest in IBM Software?
The Roadmap to Smarter Profits
© 2012 IBM Corporation
David CornickVice President Europe, Business Partners & Midmarket
January 23, 2012
IBM Business Partner Organisation – David Cornick – IBM
© 2012 IBM Corporation
Executive Summary
Home to 180+ Global Fortune 500 and other progressive companies
109 of the top 600 cities by GDP
GDP nearly $16T growing at 1.9% in 2012
Notes: GDP = gross domestic product , * 20 countries exclude , channel Islands, Gibraltar, Isle of Man, St. Helena, Greenland, Iceland, Faeroe Islands, Liechtenstein, San Marino, Vatican CityAndorra, French Guiana, French Polynesia, Guadeloupe, Martinique, Mayotte, Monaco, New Caledonia, Reunion, Wallis & Futuna, Comoros
2012: The European Opportunity
Focus on driving VALUE CREATION and long-term business development
Europe IT opportunity is 235 Billion in 2012, more than 2/3 in Services & Solutions
© 2012 IBM Corporation
Total IT at Constant Currency
-10%
-5%
0%
5%
10%
15%
20%
25%
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Major Mkts Growth Mkts Total
Growth Markets
Major Markets
’09-’15 CGR
9.0%
4.4%3.1%
Source: IBM Market Insights analysis, using GMV2H10 (July 2010) and QMV4Q10 (October 2010)
% Growth
IT Industry growth is slowing recovering, at two speeds
IBM 2011 Results:
Growth market: +11% y/yMajor market: +2% y/y with EMEA at +2%
© 2012 IBM Corporation
IBM’s growth strategy to 2015 is designed to capture pockets of growth, and is paying off
Smarter Planet : $66 billion opportunity 2011 IBM Smarter planet revenue grew 47%
Analytics : $166 billion opportunity 2011 IBM Analytics revenue grew 16%
Cloud : $199 billion opportunity 2011 IBM Cloud revenue tripled
Growth Markets : $223 billion opportunity 2011 IBM Growth Markets revenue grew 11% Midmarket opportunity: $267 billion, growing 11-15 at 6%
Source: IBM Investor Briefing; M
arke
ts/B
uye
rs
Traditional
New
Offerings
IBM’s Growth Landscape
New
GrowthMarkets
BusinessAnalytics
SmarterPlanet
Cloud Computing
Traditional
IndustryFrameworks,
Smarter Computing
© 2012 IBM Corporation
We have remixed our business to higher value areas and are reaping rewards of transformational change
© 2012 IBM Corporation
IBM’s channel strategy: Clarity, Consistency and Predictability to seize the opportunities to Grow together
Continue to focus and grow our base business while aligning the channel to take advantage ofIBM’s 2015 strategic priorities:
Smarter Planet
Business Analytics
Cloud Computing
Midmarket
CLARITY
CONSISTENCY
PREDICTABILITY
© 2012 IBM Corporation56
2012: we are further creating opportunities to Grow together
Business Solutions
•Client / ISV / vertical middleware applications
•Business Process
Traditional Infrastructure• Servers/storage• Middleware• Implementation services• Helpdesk• Financing
Appliance• Application Platform• Industry Solution Reseller• Industry Solution Integrator
Provider Model•Public Cloud Offerings•Private Cloud Solutions•Business Model Transformation
Business Services•Business Process / IT Consulting
• Integration Services
Embedded Software Solutions• Analytics• Database• Portal
Business Partner Value creation models
© 2012 IBM Corporation
Working together is critical to our mutual success
Industry-leading technology and vision– Smarter planet strategy
– $6B in research and development
– Industry-leading systems, software,services and financing offerings for the channel
Business Partner-led business model for midmarket
Investment in skills
Significant earnings opportunities– Partner incentives, end-user incentives,
Business Partner seller incentives and strategic investment
Consistency in our commitment to our Business Partner ecosystem
IBM is deeply committed to the success of its Business Partners
© 2012 IBM Corporation
Business Partner actions for 2012
Take advantage of IBM’s 2015 strategic imperatives
Significantly Grow Run-rate/autonomous business
Expand Channel Software and Services portfolio
sell the total package
Seize the Midmarket opportunity
Invest in new skills and IBM certifications
© 2012 IBM Corporation5959
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