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
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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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Value Advantage Plus

• Reselling IBM middleware with your value add
  solution
• Pricing determined by end customers 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 users 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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Software as a Service (SaaS)

• 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
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What the analysts are saying
IBMs efforts are a best practice in the
industry.
IDC, Worldwide Independent Software Vendor
Programs, March 2006

• The best overall Business Partner Program.

Site IQ, IBM PartnerWorld Portal Best Practice
Assessment, 2008
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 great resource for
creating compelling offerings, taking them to
market, and deploying them, sometimes in
cooperation with other partners.
IBMs program is one of the most mature, with the
global scope of a firm that has been a leading
enterprise computing supplier for 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
Relations IBM Central and Eastern Europe, Middle
East and Africa (CEEMEA) Renate_maier_at_at.ibm.com
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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 leadership for IBM by
building a community of partners, IT
professionals and academic members, who
passionately use, recommend and add value to
our products and solutions.
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ISV Developer Relations

• 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 Innovation Centers
Over 40 centers worldwide!
The heart of the ecosystem

• 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.

• 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.

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IBM Innovation Centre (Satellite)
KIEV
Centre Project in progress
BUCHAREST
ZURICH
LJUBLJANA
ISTANBUL
CASABLANCA
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Launching local presence in emerging markets
Expanding IBMs global footprint
41 centers worldwide!

• Coming in 2009
• Bucharest, Romania
• Ljubljana, Slovenia
• Ho Chi Minh City, Vietnam

• Just launched 2008
• Johannesburg, South Africa
• Zurich, Switzerland
• Istanbul, Turkey

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IIC Activities - Workshops and Seminars

• Grow your fundamental skills and in-depth
  knowledge
• Worldwide delivery of technical and sales
  enablement education
• Personalized learning

• Web-based courseware training
• Rich interactive simulations
• Remote and hands-on classrooms
• Host developerWorks workshops

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ISV Developer Relations

• What is IBM ISV Developer Relations?
• The Center of the Ecosystem IBM Innovation
  Centers
• IBM Academic Initiative
• IBM developerWorks
• PartnerWorld Industry Networks
• IBM Venture Capital Group

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IBM Academic Initiative
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 IBMs leading edge technologies.
  

ibm.com/university/academicinitiative
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ISV Developer Relations

• 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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developerWorks IBMs community of developers,
IT Professionals, students

• 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.

Key Statistics Over 1M skill activities per
year 34 industry awards Serves 200 countries 4
local language sites
ibm.com/developerWorks/aboutdW
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developerWorks has a wide breadth of technical
content and community offerings for many IT roles
Student
Architect
Analyst
Developer DBA
Project Manager
Application support
Consultant
Tester
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Need to evaluate an IBM product or technology?
Weve got you covered with trial code more

• 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.

Example Try WebSphere Portal Express to see if
its the best product to create a rich internet
application
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Bringing developerWorks to you

• Follow us on Twitter www.twitter.com/developerwor
  ks

• developerWorks gizmos iGoogle, Yahoo, Netvibes

• Learn more at ibm.com/developerworks/dwgizmos
• Download the Google desktop gadget

• developerWorks iPhone app ibm.com/developerWork
  s/iphone

• Mobile developerWorks wireless.ibm.com/developerW
  orks

• developerWorks on Facebook
• www.facebook.com/apps/application.php?id56638
  66319

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ISV Developer Relations

• 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 PartnerWorld Industry Networks
Its what we do together that sets us apart

• 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
  campaignsand close deals today.

ibm.com/partnerworld/industrynetworks
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IBM PartnerWorld Industry Networks
Its what we do together that sets us apart

• 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
  marketslike SaaS, Business Continuity, and more.

ibm.com/partnerworld/industrynetworks
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Discussion
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BACKUP SLIDES
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Bridging to Success Essentials to Partnering
Successful Partnerships
Partnerships that Fail

• Benefit/cost ratio is significant
• Hard commitments on both sides
• Sales and technology alignment
• Close synchronization of product plans/strategy

• 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

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Industrys Broadest Middleware Portfolio
delivering proven value to solve real business
problems
Information on Demand to optimize enterprise
performance by unlocking the business value of
information IBM DB2 IBM FileNet IBM Information
Server IBM Identity and Relationship Resolution
Service Oriented Architecture
Service Management to enable innovation by
reducing operational labor, and improving asset
productivity and quality of service Tivoli
Unified Process Tivoli IT CAM Tivoli Access
Manager Tivoli Identity Manager Tivoli Compliance
Insight Manager
Software Lifecycle Management to better govern
the business process of software and systems
delivery enabling innovation at lower
cost Rational Application Developer Rational
Portfolio Manager Rational Asset Manager
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Software Value Incentive (SVI)
Business Partner Highlights

• 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)

Rewards Value
Protects Contribution
Reduces Complexity
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Potential Revenue for SW Transaction SVI Only
ID and Sell activities must accompany each other
LE Large Enterprise
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Potential Revenue for SW Transaction VAP SVI
LE Large Enterprise
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SVI Call To Action

• Visit www.ibm.com/partnerworld/softwarevalueincen
  tive
• 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?