ibm software group

IBM Software Group

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IBM Software Group

Build with the Best

A Strategy For Jointly Growing Revenue

Glenn Newlove Lotus SWG May 2009

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Key Discussion Points

Increase your margins with integrated solutions and faster implementations

IBM has a spectrum of partnering choices to match your business model Influence

Resell

Software as a Service (SaaS)

We can build a plan to move quickly and attack the market together

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So Which Partnering Option is Best for Me?

… fundamental points to ponder… Am I prepared to take a more proactive stance in recommending IBM SW

with my solution?

Do I prefer getting a sales referral fee or bundling and reselling?

If I bundle/resell IBM SW, how can I get predictable pricing at lowest cost?

Do I want to be the single point of contact for my entire solution stack?

Could my customer call me for basic L1/L2 support?

Do I prefer to have a single WW contract with IBM?

Do I have SaaS in my go-to-market offerings portfolio?

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SW Partnering Options with IBM

Influence Software Value Incentive (SVI)

• Rewarded for Opportunity ID and Ownership• Active participant in sales engagement• Resell optional• Requires IBM brand certification

Sell & Fulfill

Value Advantage Plus

• Instant rebate program for authorized repeatable solutions

• Resell program only• Must include your value added solution• Full Use license

Application Specific License

(ASL)

• Ultimate pricing control• One-stop shopping for customer• Tight solution integration• Restricted Use license

Software as a Service


• Total solution • Hardware + middleware • Subscription model

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Software Value Incentive (SVI)

Rewards partners for successfully influencing IBM SWG deals to close

Rewards opportunity identification and selling

Partners receive SVI payments direct from IBM - no need to resell

No restrictions on use of payments

SVI membership requires IBM software certifications

Software is fulfilled through standard distribution processes

BENEFITS Rewards partners for influence

Deal registration system protects partners’ registered opportunities

Can be combined with VAP

Delivers payments of:

10% of net customer invoice for Large Enterprise Deals

20% of net customer invoice for SMB Deals

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Reselling IBM middleware with your value add solution

Pricing determined by end customer’s Passport Advantage (PPA) discount level

A PPA reseller contract is required for each country in which you sell

You purchase the IBM SW via Value Added Distributor (VAD)

IBM provides support for its middleware

Customer receives unrestricted license for the SW

Rebates available for sale of your approved value added solutions

BENEFITS Customers familiar with PPA model

Unrestricted use licenses:

Customer can use licenses with other apps in their enterprise

No L1/L2 support required

Can add substantial margin beyond standard PPA resell

Up to 40% available when combined with SVI incentives

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Application Specific License (ASL)

Allows ISVs to embed/bundle IBM middleware with their application

Can go to market with a total solution

End users may or may not know IBM middleware is included

All solution support, including L1/L2 support for the IBM SW, is provided by the ISV

The IBM license warranty is held by the ISV

The end user’s “right to use” allows only restrictive use of the code

Costs are predictable

Partner determines end-user pricing

Annual revenue commitment determines discount

BENEFITS Simple WW contract eases

paperwork

Partner is single face to the customer

More revenue through annual renewal streams

Customer receives pre-integrated solution

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ISVs embed IBM middleware into their remotely delivered service ISV goes to market with a total solution End users may or may not know IBM

middleware is included

Solution support is provided by the ISV including L1/L2 support for the IBM SW, - No relationship between IBM and end user

IBM license warranty is held by the ISV End user contracts directly with ISV via a

subscription model

Costs are predictable Partner determines end user pricing Flat, annual billing model helps tie IBM SW

costs to SaaS solution revenue stream

BENEFITS

Pricing models mirror typical SaaS (Annual contracts / no commitments)

Significant discounts to ISV for providing Level 1 and Level 2 support to end user

Use of IBM SW in conjunction with either IBM HW or IBM Managed Hosting qualifies ISV for SaaS Specialty Partner

SaaS Specialty Partners receive go-to-market and demand generation support

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Recap

Software Value Incentive


Application Specific License

Software as a Service

Basics

Rewards for identifying and selling IBM middleware

Instant rebate program for selling value added solutions.

Resell model for deep embed or tight bundling

Embed IBM SW into your subscription service

Pricing Model

Fees paid directly to you for registered and closed opportunities

Instant rebate based on end user Passport Advantage entitlement

You determine customer price; predictable IBM costs

Fixed price from IBM; you determine customer prices

Support IBM provides support

IBM provides support

You provide basic L1/L2 support

You provide basic L1/L2 support

Contract Scope

Must have local certified skills to participate. Country specific program / contracts

Must purchase IBM SW from distributor. Country specific program / contracts

Worldwide contract Worldwide contract

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What the analysts are saying…

“The best overall Business Partner Program.”

Site IQ, IBM PartnerWorld Portal Best Practice Assessment, 2008

“IBM’s efforts are a ‘best practice’ in the industry.”

IDC, Worldwide Independent Software Vendor Programs, March 2006

IBM was recently named best in class in 28 out of 31 categories as rated by Forrester Research.

Forrester, Choosing an ISV Program, June 2008

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Forrester names IBM Partner Programs Best in Class

"ISV partner programs are a "ISV partner programs are a great resource for creating great resource for creating compelling offerings, taking compelling offerings, taking them to market, and deploying them to market, and deploying them, sometimes in them, sometimes in cooperation with other cooperation with other partners.partners.

IBM’s program is one of the IBM’s program is one of the most mature, with the global most mature, with the global scope of a firm that has been scope of a firm that has been a leading enterprise a leading enterprise computing supplier for computing supplier for decades.”decades.”

“Choosing an ISV Partner Program”June 2008

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IBM ISV and Developer Relations(IDR)

Building an Ecosystem of Business Partners, IT professionals and academic leaders

Renate Maier

Manager of ISV and Developer RelationsIBM Central and Eastern Europe, Middle East and Africa (CEEMEA)

[email protected]

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ISV & Developer Relations (IDR)

What is IBM ISV & Developer Relations?

The Center of the Ecosystem: IBM Innovation Centers

IBM Academic Initiative

IBM developerWorks

PartnerWorld Industry Networks

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IBM ISV & Developer Relations: Innovation powered by community

We aspire to drive market leadershipWe aspire to drive market leadership

for IBM by building a community for IBM by building a community

of partners, IT professionals and of partners, IT professionals and

academic members, who passionately use, academic members, who passionately use,

recommend and add value recommend and add value

to our products and solutions.to our products and solutions.

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ISV & Developer Relations




IBM developerWorks


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Why they matter• Provide a place where

Partners, IT professionals, and academics can find answers to everyday questions, build cutting edge skills, and explore the latest open-standards-based and open source technologies.

• Unite a community impassioned about building faster, smarter solutions for business, and create cooperative selling relationships across the globe.

IBM Innovation Centers

What they are• IBM Innovation Centers are the

physical and virtual gathering places for business, academic and technology innovators.

• Support locally and reach globally: Provide expertise in your local market while extending your reach worldwide.

The heart of the ecosystem

Over 40 centers worldwide!

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Full ServiceIBM Innovation

Centre (Hub)

STUTTGART

LA GAUDE

IBM Innovation Centre (Satellite)

IBM InnovationCentre (Base)

eArchitects / Events

STOCKHOLM

HELSINKI

OSLO

COPENHAGEN

MOSCOW

PRAGUE

WARSAW

BUDAPEST

BRATISLAVA

ZURICH

HURSLEY

DUBLINCentre Project in

progress

KIEV

BUCHAREST

LJUBLJANA

ISTANBUL

JOHANNESBURG

CASABLANCA

BARCELONA

MILAN

TEL AVIV

PARIS

MADRID

LONDON

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Just launched 2008:

Johannesburg, South Africa

Zurich, Switzerland

Istanbul, Turkey

Launching local presence in emerging markets: Expanding IBM’s global footprint

Coming in 2009:

Bucharest, Romania

Ljubljana, Slovenia

Ho Chi Minh City, Vietnam

41 centers worldwide!

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IIC Activities - Workshops and Seminars

Learning from Experts

Grow your fundamental skills and in-depth knowledge

Worldwide delivery of technical and sales enablement education

Personalized learning

Multiple Delivery Methods

Web-based courseware training

Rich interactive simulations

Remote and hands-on classrooms

Host developerWorks workshops

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IBM developerWorks


IBM Venture Capital Group

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ibm.com/university/academicinitiative

Building a pipeline of skilled students for the IT jobs of tomorrow

What it is

•No charge access to IBM software and hardware systems to help academic leaders create a powerful and dynamic classroom experience.

•Skills, certifications, contests and more to help students get real world experience and accreditation in IBM’s leading edge technologies.

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IBM developerWorks


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What we offer

IBM developerWorks is the destination on the web for developers and IT professionals to stay on the cutting edge and develop their skills on open standards technologies and IBM products.

Delivers the deep technical code, content, and community you need and depend on to get answers to your tough technical questions.

Delivers unparalleled content in over 4 languages, including articles, tutorials, demos, events and more.

ibm.com/developerWorks/aboutdW

developerWorks: IBM’s community of developers, IT Professionals, & students

Key Statistics:

Over 1M skill activities per year

34 industry awards

Serves 200 countries

4 local language sites

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Developer & DBA

Project Manager

Tester

Student

Application support

AnalystArchitect

Consultant

developerWorks has a wide breadth of technical content and community offerings for many IT roles

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Standard trial code downloads

Online/hosted sandboxes

Beta code

Updates & fixes

NEW! IBM products are available on the Amazon Web Services Cloud.

Plus additional services to help you evaluate – demos, tutorials, forums, etc.

Need to evaluate an IBM product or technology? We’ve got you covered with trial code & more

Example: Try WebSphere Portal Express to see if it’s the best product to create a rich internet application

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Bringing developerWorks to you

Follow us on Twitter www.twitter.com/developerworks

developerWorks gizmos iGoogle, Yahoo, Netvibes

developerWorks iPhone app ibm.com/developerWorks/iphone

Mobile developerWorks wireless.ibm.com/developerWorks

• Learn more at ibm.com/developerworks/dwgizmos

• Download the Google desktop gadget

developerWorks on Facebook

www.facebook.com/apps/application.php?id=5663866319

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IBM developerWorks


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IBM PartnerWorld Industry Networks

What it is• Education, assistance, and

expertise to help Business Partners build and test solutions.

• Resources to help Business Partners collaborate across the industry.

• A Virtual Marketing Department: personalized help to Business Partners create and implement campaigns—and close deals today.

It’s what we do together that sets us apart

ibm.com/partnerworld/industrynetworks

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Why it matters

Business Partners can:

Get to market fast with technical resources and programs.

Uncover more opportunities and close deals faster with marketing and selling resources.

Expand their reach, engage new opportunities, and increase sales revenue through collaboration.

Leverage IBM leadership in new and emerging markets—like SaaS, Business Continuity, and more.

ibm.com/partnerworld/industrynetworks

IBM PartnerWorld Industry NetworksIt’s what we do together that sets us apart

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Thank you!Thank you!

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Discussion

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BACKUP SLIDES

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Partnerships that Fail Successful Partnerships

Bridging to Success – Essentials to Partnering

Small business benefit for 1 or both parties

Limited commitment to success

Lack of clear incentives/penalties

Desire to compete, rather that partner

Pure technology partnership

Pure sales/GTM partnership

Benefit/cost ratio is significant

Hard commitments on both sides

Sales and technology alignment

Close synchronization of product plans/strategy

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Industry’s Broadest Middleware Portfolio … delivering proven value to solve real business problems

Empowering Peopleto share their passion and expertise, foster collaboration and innovation, and improve business efficiency, decision-making and responsiveness

Lotus DominoWebSphere Portal ServerLotus QuickrLotus SametimeLotus Connection

Business Process FlexibilityTo develop and rapidly deploy

innovative business models with flexible, optimized processes

WebSphere Business ModelerWebSphere Business MonitorWebSphere Process ServerWebSphere Integration Developer

Information on Demandto optimize enterprise performance by

unlocking the business value of information

IBM DB2IBM FileNet

IBM Information ServerIBM Identity and Relationship Resolution

Service Managementto enable innovation by reducing operational labor, and improving asset productivity and quality of service

Tivoli Unified ProcessTivoli IT CAMTivoli Access ManagerTivoli Identity ManagerTivoli Compliance Insight Manager

Software Lifecycle Managementto better govern the business process of software and systems delivery enabling

innovation at lower cost

Rational Application DeveloperRational Portfolio Manager

Rational Asset Manager

Service Oriented

Architecture

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Software Value Incentive (SVI)

Incremental incentives for: Identifying new opportunities, and…

Active sales engagement

Focusing on the SMB market

Selling Solutions through VAP

Opportunity registration system: Protects partners’ registered opportunities

Protects partner margins

Maximizes partner benefits received.

Single framework: Covers all SWG brands

Applicable to multiple Business Partner types

(VARs, ISVs, Consultants & Integrators)

Reduces Complexity

Rewards Value

Protects Contribution

Business Partner Highlights:

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Potential Revenue for SW Transaction – SVI Only

5

5

10

10

1.5

1.53

3

0

2

4

6

8

10

12

14

16

18

20

100K LE 100K SMB 30K LE 30K SMB

SVI-only R evenue Opportunity ($K)

SVI Sell

SVI ID

“LE” = Large Enterprise

ID and Sell activities must accompany each other

SVI ID SVI SellTotal Fee

Opportunity

SVI LE 5% 5% 10%

SVI SMB 10% 10% 20%

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Potential Revenue for SW Transaction – VAP + SVI

5

5

15

10

15

15

1.51.5

4.5

3

4.5

4.5

0

5

10

15

20

25

30

35

40

100K LE 100K SMB 30K LE 30K SMB

SVI + VAP/PPA Revenue/Margin Opportunity ($K)

VAP Margin

Base Resell margin (PPA)

SVI Sell

SVI ID

LE = Large Enterprise

SVI ID SVI SellBase Resell margin (PPA)

VAP Margin Total Fee/ Discount

Opportunity

SVI + VAP LE 5% 5% 15% 25%

SVI + VAP SMB 10% 15% 15% 25%

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SVI Call To Action

Visit: www.ibm.com/partnerworld/softwarevalueincentive

Review requirements for Certifications and Online Certification Opportunities

Make sure certifications are up to date and captured within IBM PartnerWorld databases. Questions? Contact IBM PartnerWorld Contact Center: 1-800-426-9990

Join SVI Program

Upon notification of approval, begin submitting deals for SVI credit via Global Partner Portal

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So Which Partnering Option is Best for Me?

… fundamental points to ponder… Am I prepared to take a more proactive stance in recommending IBM SW

with my solution?

Do I prefer getting a sales referral fee or bundling and reselling?

If I bundle/resell IBM SW, how can I get predictable pricing at lowest cost?

Do I want to be the single point of contact for my entire solution stack?

Could my customer call me for basic L1/L2 support?

Do I prefer to have a single WW contract with IBM?

Do I want a ‘deep embed’ of the middleware in my solution?

Do I see value in working exclusively with IBM offerings?

Do I have SaaS in my go-to-market offerings portfolio?

ibm software group

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