IBM Global Services

1
SELLING IBM TRAINING in 2006 Why be in the
Education business? I/T
training is a 12 billion dollar industry growing
at 7 annually from 2003-2007. Customers will
spend 10 of IT budgets on training. Customers
prefer a comprehensive, end-to-end solution.
IBM Judi Migliori Gavin, Business Development
Executive at 561-743-6116 ARROW Michelle Zant,
Education Manager, 317-735-0447, mzant_at_arrow.com
2
As an ARROW Reseller Who Can Sell IBM training
are you asking why?

• Research shows that your customers prefer to
  purchase training bundled with their new
  technology investment .
• I/T training is a 12 billion dollar industry
  growing at 7 annually from 2003-2007. Customers
  will spend 10 of IT budgets on training. This
  should be your business as a trusted Business
  Partner with your customers.
• Customers prefer a comprehensive, end-to-end
  solution.
• Why IBM?
• Ranked 1 training provider worldwide by both
  IDC and Training Magazine
• Highly experienced and expert trainers teach all
  types of blended learning classes for a robust
  set of offerings unparalleled in the world.
• More than 1000 public courses, unlimited private
  classes and the best technical conferences.
  Contact 1-800 IBM-TEACH (8322) for eligible
  courses or to enroll.

3
Training is critical for your customers

• Your customers are buying training- they should
  buy it from you. For every 1 they spend with
  you, do you know what they are spending
  elsewhere?
• 50 of a tech workers skills become outdated
  in 3-5 years (Merrill Lynch)
• 1 spent on corporate training can translate into
  as much as 30 in productivity gains in 3 years
  (Merrill Lynch). The average help desk call costs
  64 (IDC)
• Training creates a competitive edge as it
  aligns IT with strategic business goals,
  maximizes HR, and mitigates risk.
• Customers come back annually for more education.
  The start up effort is well worth it and
  painless.
• The Technical Education Market is closely tied
  to the market for new software sales. Fastest
  growth is among smaller companies. Database
  Management,Networking, and Websphere show biggest
  opportunity in Software.

4
IBM offers training and certification in all
technology areas.
z/OS AIX OS/400Linux Windows XP/2000/NT
IBM eServerszSeries, pSeries, iSeries, xSeries
Systems training
Networking Cisco and IBM
IBM is a worldwide leader in IT training (IDC)
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IBM Learning ProductsIBM Education Pack online
account

• Your customer gets an Education Bank Account
  with , e.g, 10,000 worth of training in many
  forms good for one year from activation date and
  usable by multiple students. You as an ARROW
  reseller you enjoy an 11 discount off the
  retail price below. Call your Sales Rep for your
  exact price!!!
• Pricing
• Can be used for
• Public classes - Conferences
• Onsite classes - DVL Starter Packs
• Tuition - DVL single titles
• Instructor TL - Most IBM Self-Paced Virtual
  Classes
• Equipment charges - Instructor Mentoring
• Room rentals

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IBM Learning ProductsIBM Education Pack NEW
NEWS!!!!
IBM Education Pack online account NEW! 100
Increments July 5, 2006 Announcement

• Under our new precision payment plan, you can
  purchase the Education Pack online account in
  100 increments with a minimum 1,000 opening
  balance.

• Whats the advantage to precision payment?
• Smaller increments let you match your Education
  Pack online account purchase to your specific
  training needs.
• Add only as much as you need avoid losing
  unused balances.
• Save money on every purchase
• Add 100 increments to your existing IBM
  Education Pack online account balance with a
  minimum precision payment purchase of 1,000.

IBM announced new Precision Ed Packs 1,000 to
4,900 value 5 discount 95 list
price per 100 5,000 to 9,900 value 8
discount 92 list price per
100 10,000 or more value 10 discount
90 list price per 100
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IBM Learning ProductsIBM Education Pack NEW
NEWS!!!!
Ed Pack Precision Payment Plan Savings
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How to make money with Education

• Sell a 500,000 hardware/software/ services
  solution
• Package one 10,000 EDPACK for education into
  the deal. (2 of 500 K10K)
• At 11 margin for the EDPACK, earn an extra
  1000 on this deal. (EdPack retail8995)
• With shrinking margins on hardware, this extra
  1000 for selling education will be a welcome
  addition for little to no start up cost.

9
How to make money with Education Precision
Scenario

• Lets say you want to attend an IBM Technical
  Conference and only need 2,000.
• Instead of purchasing a 2,500 Ed Pack, you can
  purchase 20 Ed Packs in 100 increments, and
  still receive a 5 built in discount!
• 2,000 worth of Ed Pack purchases only costs you
  1,900.
• Most importantly, you pay for precisely the
  training you need.

10
How much should we be selling?

• If you sold in 2005 You should
  drive
• 40 million in IBM Hardware 1,000,000 in ITES
• 27 million 675,000
• 18 million 450,000
• 11 million 275,000
• 5 million 125,000
• Rules of thumb to help you set goals2.5 of your
  2004 hardware and 5 of your software number.

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Private or Custom or Onsite Classes can be Paid
for with the EPOA

• An average private class costs 15,000-25,000.
• If you do one new thing as a result of this
  presentation, let your customers know you can
  arrange private classes.
• Dont forget too the conference business
  representing IBM. EDPACKS can pay for ITES
  conferences.

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IBM Learning Value Proposition Summary

• Profitability.Selling services increases overall
  profit of your deal. Hardware margins are
  shrinking. Continuous revenue flow possible.
• Total Solution Selling
• Be viewed as more professional a "one stop
  place to shop"
• Tremendous content available. Over 700
  courses/blended learning.
• Customer Satisfaction
• Customers maximize their productivity faster
  when skilled

• Ease of Doing Business
• No VAE needed for our offerings
• No lengthy contracts
• Quick delivery/ 72 hours on average
• Strong Growing 7 Marketplace Opportunity
• 10 of IT budgets are spent on training with a
  12 B worldwide oppty
• Incentives and Promotions are frequently run by
  IBM

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STEPS TO SUCCESS

• Educate your sales teams on IBM IT Education
  Services offerings.Ensure your sales
  compensation plan supports selling ITES
  offerings.
• Customize the collateral to support your firms
  message so your customers know they can buy their
  Education from you.
• Include information on educational offerings in
  configurations and proposals. Add offerings to
  your website.Remember our Technical Conferences
  can be paid for with our offerings.
• Include offerings in maintenance renewal
  campaigns.Include offerings in not on
  maintenance campaigns.
• Appoint an IBM Learning focal point and track
  progress quarterly.

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Appendix

• Websites for our catalog and curriculum roadmaps
• IBMs Learning Organization
• Sample Proposal Language

• Conference Information
• Hot Courses
• More on Digital Video Library

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To learn more ...

• THE RESELLER WEBSITE is your first stop.
• www.ibm.com/training/us/partner
• For a comprehensive U.S. course catalog as well
  as additional information on IT Education
  Services offerings http//www-3.ibm.com/services/
  learning/us/
• For a global view of the curricula we offer
  
  http//www-3.ibm.com/services/learning/us/catalog/
  all.htmlTo view specific curricula roadmaps
  http//www-3.ibm.com/services/learning/us/roadmap
  s/
• To call for help 1-800-IBM-TEACH1-800-426-8322
• Judi Migliori Gavin (jmgavin_at_us.ibm.com)
  561-743-6116

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IBMs 2006 Education Organization

• IBM TRAINING In 2006 Systems Technology
  Group (STG) and Software Group (SWG) will be
  responsible for IBMs technical training
  strategy, offerings and financial management for
  their respective products and solutions.
• Benefits for IBM and Arrow Resellers include
• Significant growth of skills focus in marketplace
  
• Brands set expectations and provide increased
  funding for course development.
• We can leverage common training capabilities and
  learn from BP experiences in the marketplace.

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Sample Proposal Language

• WE ARE IN THE EDUCATION BUSINESS!
• Enhancing performance and staying ahead of the
  competition requires ongoing education and
  training. However, education budgets are
  frequently limited. We are pleased to offer
  several IBM education packages designed to
  maximize your education dollars and minimize time
  away from the office. You can take public
  classes, arrange private classes, attend
  conferences, and buy e-learning.
• EDUCATION ADVANTAGE OFFERINGS
• Education Pack
• Receive up to a 10 discount on public classes,
  private classes , conferences and the DVL Starter
  Pack . Five retail price levels in 2005 (
  2375/4595/ 8995, 13,500 and 22,500) in an
  online account with no coupons to worry about.
  This account can be split between multiple
  students providing maximum flexibility. It can be
  activated 60 days out and lasts for one year.
• Digital Video Library (DVL) Starter Pack can be
  bought with the EPOA above.
• Select 5 DVL courses for 3 users for just 4,995.
  DVL provides IBM's best instructors teaching
  120 plus popular courses like a live video.
  Combined with a website that provides access to
  instructors and tests, DVL puts the classroom
  where you need it. No travel required ever!

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Technical Conferences 2006

• Date Name Location
• 24 Jul 2006 Storage and Storage Networking Las
  Vegas, NV
• 31 Jul 2006 IBM xSeries Chicago, IL
• 11 Sep 2006 IBM pSeries and Linux Las Vegas,
  NV
• 09 Oct 2006 IBM System z9 and zSeries Expo
  Orlando, FL
• 15 Oct 2006 IBM Content Management Anaheim, CA
  
• 15 Oct 2006 IBM DB2 Information Management
  Anaheim, CA
• 15 Oct 2006 IBM Information On Demand 2006
  Anaheim, CA
• 15 Oct 2006 IMS Technical Conference Anaheim,
  CA
• 30 Oct 2006 IBM iSeries (fall) Las Vegas, NV
• 30 Oct 2006 WebSphere Technical Exchange San
  Francisco, CA

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Hot Courses

• pSeries/AIX - Linux Q1373 AU73G Logical
  Partitioning (LPAR) on POWER5 pSeries Systems
• pSeries/AIX - Linux Q1314 AU14G AIX 5L System
  Administration I Implementation
• pSeries/AIX - Linux Q1316 AU16G AIX 5L System
  Administration II Problem Determination
• pSeries/AIX - Linux Q1554 AU54G HACMP System
  Administration I Planning and Implementation
• pSeries/AIX - Linux Q1313 AU13G AIX 5L Basics
• zSeries, Storage and Printing ES10A ES10G Fundamen
  tal System Skills in z/OS
• zSeries, Storage and Printing X2438 ES07G Custom
  z/OS Diagnostic Workshop
• zSeries, Storage and Printing H3765 ES26G SMP/E
  for z/OS Workshop
• zSeries, Storage and Printing SS480 SS48G IBM
  TotalStorage DS8000 and DS6000 Implementation
  Workshop for Open Systems
• zSeries, Storage and Printing ZV062 ZV06G Installi
  ng, Configuring and Servicing z/VM for Linux
  Guests
• iSeries AS530 AS53G Logical Partitioning (LPAR)
  on IBM eServer iSeries i5
• iSeries S6229 AS24G System Operator Workshop for
  IBM eServer iSeries Systems
• iSeries S6019 OL19G iSeries System Administration
  and Control
• iSeries S6219 AS28G Backup and Recovery Media
  Services/400 Workshop (BRMS/400)
• iSeries S6149 OL49G iSeries Application
  Programming Facilities Workshop

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More Hot Courses..

• Networking X4270 NC01G X4270 NC010 Custom Cisco
  Networking MOI-Skyline
• Networking CB695 CB69G TCP/IP for z/OS
  Implementation Workshop
• Networking G3945 CB47G VTAM/APPN Concepts and
  Implementation
• Networking XH005 NC01G XH005 NC010 Custom Cisco
  Networking - IMS
• Networking NW791 NW79G TCP/IP for z/OS
  Diagnostics and Debugging
• PSG/PCI XTR14 XTR14G IBM Bladecenter Workshop
• PSG/PCI XTR43 XTR43G Systems Management with IBM
  Director
• PSG/PCI XTR04 XTR04G EXAct High Performance
  eServer xSeries Technical Training
• PSG/PCI XC201 XTR14G Custom 1-6 for XTR14
• PSG/PCI XTRU4 XTR04G EXAct High Performance
  eServer xSeries Technical Update

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ITES ProductsDigital Video Library (DVL)

• 120 course library today. IBMs best courses and
  instructors.
• Home page FAQs, discussion threads and tests
• Flexible Licensing Options-Four Ways to Buy It
• Single Title licenses one course, one student
  prices vary (EPOA)
• Starter Pack 5 courses licensed for 1-3
  students 4,995 (EPOA)
• License Pack Select the of usages that fits
  your needs 740/usage
• Standard License Entire library licensed for
  20 students 1,750/student
• Discounts available on volume purchases.
• The same courses required to maintain IBM product
  certifications.
• Load on server or desktop. Get Recorded Live
  training anytime anywhere and anyplace. No travel
  required.
• Audience Example Limited budget, large number
  of staff to train.

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DVL Licensing Options

• IBM DIGITAL VIDEO LIBRARY New Announcements
  Summary 06/04. Offer your customers up to 125 IBM
  courses taught by our best instructors right on
  their desktop!
• The IBM Digital Video Library (DVL) brings expert
  instructors and world-class IBM training right to
  your desktop. Delivered in an easy-to-use CD-ROM
  format, these video CDs are convenient, portable,
  and enable students to be trained for a fraction
  of the cost of sending them to class. Each
  course includes
• Instructor lectures captures live on digital
  video
• Class manuals in soft copy format
• Access to a rich Internet website for interacting
  with the instructor, and taking pre post tests.
• There are four licensing options to provide
  maximum flexibility to IBM customers The first
  two may be purchased with the EdPack Online
  Account which comes in values of 8995/4595/ and
  2375.
• 1. DVL Starter Pack The Starter Pack allows you
  to select any five DVL courses for use by up to
  three students.
• License Five courses for three students
• Pricing 4,995
• Note IBM Business Partners remarket an IBM
  Education Pack to cover the cost of a DVL Starter
  Pack.
• 2. DVL Single Courses Over 125 of our most
  popular DVL courses are now available for
  individual sale. These single user licenses
  allow one student access to just the courses they
  need.
• License One course for one student.
• Pricing Varies by course.
• Note IBM Business Partners remarket an IBM
  Education Pack to cover the cost of a single
  course license.

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More Options for DVL

• 3. License Pack (LP) The License Pack allows
  you to customize your license. Choose the
  courses and the number of students that best
  meets your needs. You may want to select just
  one curriculum area.
• License Licenses are by usage. A usage is
  defined as one student using one course. The
  student may
• use the course multiple times.
• Pricing
• 5-11 usages 740 per usage
• 12-23 usages 700 per usage
• 24-35 usages 560 per usage
• Additional licensing options available
• 4. Standard Edition (SE) A Standard Edition
  license allows you access to all of the courses
  in the library for the number of students that
  best meets your needs. A fantastic reference
  library for certification skills.
• License Licenses are for the entire library
  plus updates for the first year for a specified
  number of users.
• Pricing
• 20-49 users 1,750 per user
• 50-99 users 1,600 per user
• Additional licensing options available

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Questions ??

• Thanks for joining us today, and happy selling!!!