Win more business and increase margins utilizing available incentives!

1. Win more business and increase margins utilizing available incentives! Promotions and Incentives Summary February 26th, 2013 Brian Kielty bkielty@us.ibm.com

2. What’s New with Flex System? Business Partners Can Now Leverage the New Customer Rewards incentive to Sell Flex Systems!Reference PartnerWorld announcement 513-080 for details • Flex System 5% Bid Code up front discount off list price plus 5% net revenue back end rebate or… • Opt in for 9% Flex System Bid Code up front discount off List Price in lieu of receiving a net revenue back end rebate Flex System Price To Win Grid • Price To Win Flex System Grid 1 enhancements to assist with your Flex System opportunities Act Now! • Leverage New Customer Rewards and the Grid modifications to replace existing UCS installations and WIN new opportunities • We normalized the stack with BladeCenter to maintain incentive consistency and assist with appropriate BladeCenter to Flex System transitions...

3. New Customer Rewards incentive (NCR)513-080 “Regular” NCR for BPs that do not “opt in” for an Enhanced Bid Code. Business Partners who usually need off grid pricing to win new customers typically prefer this version Price To Win upfront discount and additional net revenue backend rebate Bid Bid Code Net Revenue ProductCodePercentageRebate System x NCBX0812A 5% 5% Flex System NCBF0213A 5% 5% Storage NCBS0212A 4% 2% Business Partners that do “opt in” for an Enhanced Bid Code. Business Partners who usually utilize grid pricing typically prefer this version Price To Win upfront discounts but no additional net revenue backend rebate • 9%Bid Code discount for System xand Flex System • 7% Bid Code discount for Storage Bid Bid Code Net Revenue ProductCodePercentageRebate System x NCBEX0812A 9% N/A Flex System NCBEF0213A 9% N/A Storage NCBES0212A 7% N/A Nominate your end userBid code % is based on List Price. Rebate is based on Net rev Nominate your end userApproved nominations are valid for 12 months

4. PureFlex & Flex System Specialty vs Specialty Elite 513-071 • IBM Business Partners can review both attained and missing skills using theBusiness Partner Technical Vitality (BPTV) Analysis Tool • Select the tab for "Dashboard" • Go to section "Accessing your firm's Dashboard Reports" • Select the link labeled "Click here to access your firm's BPTV reports"

5. PureFlex & Flex System Specialty vs Specialty Elite 513-071 Application Process New applications for either PureFlex and Flex Systems Specialty or Specialty Elite must be submitted via the designated online application process

6. Pure Flex and Flex System Certifications to Choose for Qualification2 Primary certs for PureSystems Minimum Points & Other Brands certs count for total Score

7. Microsoft Windows Server 512-521 Ends– April 30st 2013 Over 2 million NA customers still use Windows Server 2003 • Upgrade your end user now • $50 rebate for standard edition • $100 rebate for datacenter edition • By upgrading your End Users to Microsoft™ Windows™ Server 2012, they can experience an integrated, highly available, and easy to manage multiserver platform with increased efficiency and ubiquitous automation. Eligible products Part Description number Rebate Windows Server 2012 ROK Standard Per 2 Processor 00Y6264 $ 50 Datacenter Per 2 Processor 00Y6283 $100 Standard Addl License Per 2 Processor 00Y6321 $ 50 Datacenter Addl License Per 2 Processor 00Y6325 $100 brandmuscle (formerly Trade One) Rebate! No quantity limits! Ends April 30, 2013!

8. IBM System x Rack Infrastructure 0U Strip PDU Promotion 512-457Ends March 31st 2013 • Deep rebates on selected PDUs • 0U strip PDU form factor! • All models already priced competitively against HP and APC • Strong Feature/Function: Zero-U Power Distribution Units (PDUs) are the ideal solutions when you need flexible, reliable, easy-to-deploy power distribution with branch circuit protection to minimize downtime. These rack dense units distribute power up to 24 outlets in a 0U configuration to avoid consuming any of the rack unit space that should be reserved for IT equipment. • Up to 50% off 0U Strip PDUs! List Part No. PDU Description Price Rebate 46M4125 0U 24 C13 30A 3 Phase $399 $200 46M4128 0U 24 C13 30A $319 $107 46M4140 0U 12 C19/12 C13 50A 3 Phase $799 $400 46M4116 0U 24 C13 Switched and Monitored 30A $929 $307 46M4134 0U 12 C19/12 C13 Switched and Monitored 50A 3 Phase $1,275 $319 brandmuscle(formerly Trade One) Rebate! No quantity limits! 6 months promo time! We need your help to move as many PDUs as possible in 4Q!

9. System x and High Volume Storage BP Led incentive 512-368 Offer Bid ProductCodePercentage System x Bid Code BPLX0812A 5% System StorageBid Code BPLS0212A 2% System x and High Volume System Storage BP Led Approvals • Frequently Asked Questions • How do I access my end user approval numbers? • Business Partners can go to their brandmuscle Portalsign in, click on the “Reports” drop down menu at the top of the page and select BP Led. BPs can also call 800-477-6756 Trade One (IBM Promotional Marketing Center) if they need assistance. • Who’s a BP Led end user? • End Users are classified as Business Partner Led End Users if they do not appear on the IBM-led list. • How long are my approved BP Led end user approval numbers valid? • Business Partner Led approval numbers will not expire, unless an End User is reclassified by IBM. Business Partners will receive 30 days notice that previously issued Business Partner Led approval numbers will expire. Nominate your end user: http://www.bpledapprovalrequests.com

10. Investment levelBasePerformanceTotal Range Authorized 0.5% 0% to 1% 0.5% to 1.5% Specialty 1.5% 0% to 1% 1.5% to 2.5% Specialty Elite 1.0% above Specialty (Primary Distributor required) 2.5% to 3.5% System x targets based on 4% growth rate skewed 20% Q1, 25% Q2, 25% Q3, 30% Q4 System x PerformanceRewards CC1301-008 andPartnerRewards Authorized • Revenue = Min $25K prior 12 months • Incentive = 1.0% Rate net rev “on target” (0.5% Base to 1.5% Max Rate) 1.0% *OTE 1.5% Max *OTE = On Target Earnings Specialty • Certifications, Champion, References and Revenue (slight modification to 2011 Specialty) • Revenue = $240K revenue prior 12 months • Incentive = 2.0 % Rate net rev “on target” (1.5% Base to 2.5% Max Rate) 2.0% OTE 2.5% Max Specialty Elite • Certifications, Champion, References, Revenue and Distributor Selection • Revenue = $1.5M prior 12 months • Incentive = 2.0 % net rev “on target” (1.5% Base to 2.5% Max Rate), plus • Plus 1.0% through Selected Distributor 3.0% OTE 3.5% Max PartnerRewards Fixed funds for Member & Advanced Possible qtrly bonus for Premier BPs • PartnerWorld PartnerRewardsQuestions? 800-624-6875 • Education vouchers based on PartnerWorld level and total STG revenue • Marketing funding based on PartnerWorld level and total STG revenue

11. Express server + Options incentive 513-084 Easy to sell, install, deploy and manage! • Distributors have a window of time for the Express server with options solution to invoice to the Business Partner • Options must invoice from the same Distributor for the same BP Express server with options End User solution within 12 business days before or 12 business days after the Express server invoices from the Distributor • Sell an eligible System x Express server with eligible System x options solution and receive a back-end rebate for 10% of the list price of the options • PTW Grid 1 transactions only are eligible for payment • Transactions with over 30 options per Express server will be reviewed to determine eligibility. Options must be configurable to the Express server and within the limitations of the Express server The Distributor invoice to the BP for the eligible options in the solution must be within 12 business days before or after the Distributor invoices the Express serverto the BP

12. Channel Evaluation512-533 Any Channel Evaluation requests submitted and approved prior to October 24, 2012 will be administered under the terms and conditions of Announcement Letter 512-261.

13. Technology Access Program (TAP) 513-073 • The Technology Access Program (TAP) offers PartnerWorld members the ability to buy System x, BladeCenter, Flex System, HV System Storage products, and options at discounts off the IBM Web price inclusive of discounts offered by Distributors for internal use, demonstration, or development purposes. • Rebate claims must be submitted within 45 days of invoice to receive a payment. • TAP claim form System x Product Groups QTY Discount Selected Starter Kit for Cloud x86 edition 1-4 100% Selected Starter Kit for Cloud x86 edition 5-20 40% Selected IBM BNT Network Switches 1-2 80% System x Servers & Blades 1-2 40% (Any standard model) 3-12 20% System x Racks 1-2 40% System x Racks 3-12 20% Options 1-16 40% Options 17-96 20% Flex System Product Groups QTY Discount Flex software 1-4 100% Flex software 5-20 40% Flex System nodes 1-2 50% (Any standard node model) 3-12 20% Chassis and Manager node 1-2 50% Chassis and Manager node 3-12 20% Flex System options 1-16 50% Flex System options 17-96 20% HV System Storage Description Part # Qty Discount V3700 2072xxx 1-12 50% V3700 Options (T011Assortment Module) 1-96 50% EXP3000 1727xxx 1-2 20% 3-12 15% DS3500, EXP3500, EXP2500 1746xxx, 1747xxx 1-2 45% 3-12 35% EXP810 181281H 1-2 45% 3-12 38% TS2900 Tape Library 3572xxx 1-2 45% 3-12 38% TS3100, TS3200 Tape Library 3573xxx 1-2 45% 3-12 38% TS2230 Tape Library 3580xxx 1-2 38% 3-12 33% TS2240, TS2340Tape Library 3580xxx 1-2 45% TS2250, TS2350 Tape Library 3-12 38% Options 1-16 45% Options 17-96 38% Hypothetical Discount Example Blade / High-End Server List Price $1,000 Distributor Discount $ 140 14% TAP Rebate $ 260 26% Total Discount $ 400 40% OFF LIST

14. Complimentary Marketing (PS Fee) incentive 513-001 • Business Partners must notify the customer that the BP might receive a fee from IBM and the BP must provide IBM with a copy of the customer notification. Customer notifications must be renewed once every twelve months and IBM provided with a copy of the renewal notification. • The Business Partner’s name, valid System x LocID, and eligible contract number (as published in the announcement letter) must be included on every end user PO • Fees for configurations are processed based on the overall unit cost NOT an individual per component basis

15. Solution Accelerator Incentive – additional rebates for selling blue-on-blueBase Reward: rewards for selling eligible IBM STG HW combined with IBM SWG SW Solution Bonus Reward: extra rewards for selling IBM defined solutionsIncentive flows through IBM VAD to reseller, reseller negotiates payout percentage with VAD Contact Blane Rockafellow berockaf@us.ibm.com • Selected IBM STG Hardware: Power Systems, System x, Storage, BladeCenter, PureSystems, PowerLinux, IBM System Networking • Selected IBM SWG Software: • For IBM SWG sales order dates through 31 March 2013, all new license Passport Advantage SW part numbers are eligible for SAI. • New license Passport Advantage software part numbers for SAI are part numbers with the following part types: • License + Software (SW) Subscription • License + SW Subscription & Support (S&S) • Competitive Trade-up License (Lic) + S&S • Trade Up Lic + SW S&S • Product Trade-in • Product Trade-in & Subscription Complete SAI details for incentives on “base rewards” and “solution bonus rewards” with Business Partner guidelines, eligible offerings, solutions definitions, claims info and more: Solution Accelerator Incentive (SAI) on PartnerWorld

16. System x Specialty – North America 511-073 System x Specialty– available since May 2010 System x Specialty – accreditation benefits… • Specialty certification enables participation in Performance Rewards Specialty level incentive payments • Specialty Mark • Additional education and certification vouchers • Additional Business Partner Technical Vitality (BPTV) points will be awarded to the Business Partner’s company score • Access to Pre-sales Support Deal Hub without Clip Levels • Systems Connect eXpert Benefits for an identified System x Champion • For complete information on System x Specialty enrollment, benefits, and details, please refer to the PartnerWorld specialty website: • https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/isv_com_spe_sysx_resel_startEach IOT/geography has its own System x Specialty Benefits

17. System x Specialty Elite – North America 512-299 Specialty Elite certification enables participation in Performance Rewards Specialty Elite level incentive payments IBM Business Partners must apply for Specialty Elite, meet a higher level of point system requirements through certifications and client references, and achieve and maintain a higher level of minimum annual System x revenue requirements than needed for participation in the IBM System x Specialty offering. • In order to become Specialty Elite, the Business Partner applicant must complete all Sales, Technical, and Ancillary skills certifications, publish the required client references, and meet the Specialty Elite revenue attainment. • Applications must be submitted through the System x Specialty Elite Web site on IBM PartnerWorld by utilizing this link: • Specialty Elite Application • Inquiries should be directed to Glenn Ernst, the Program Administrator at gernst@us.ibm.com. • Each IOT/geography has its own System x Specialty Elite Benefits

18. System x Specialty vs Specialty Elite Note: Information in this chart is unofficial and for general planning. For official current requirements, refer to the IBM PartnerWorld System x Specialty site.

19. 2013 Incentives Landscape IBM System x - BladeCenter – iDataPlex – Flex System New Customer Rewards 5% Flex System, Blade, and System x Bid Code plus 5% Flex System, Blade, and System x net rev rebate, 4% Storage Bid Code plus 2% Storage net rev rebate or…Opt-in for All-Up-Front enhanced Bid Codes - 9% Flex System, Blade, and System x and 7% Storage Bid Codes (in lieu of NCR back end net rev rebates) Blade Focus Business Partner Led 5% Blade and System x Bid Code,, 2% Storage Bid Code Windows server 2012 Other promos 0U Strip PDU promo Express + Options Earn 10% on options for Express server with options solutions, Performance Rewards On-Going Offers Channel Eval, TAP, Public Sector Fee, Specialty, Specialty Elite, Pre-Sales Services,PartnerRewards 19