Presentation Transcript

1. Arrow ECS, IBM GroupSolution Accelerator incentiveUpdated: june 2012 v2

2. Solution Accelerator Incentive What is it? New initiative to sell a HW/SW solution on a single client order and earn additional rebate. Channel reward for selling eligible IBM hardware products and eligible IBM software products together. Additional channel reward for selling predefined solutions. Additional reward applies to the eligible software content of the solution. Think: BASE + BONUS (HW and SW + SOLUTION)
3. What can you earn? BASE Additional 11 points for approved Software Additional 8 points for approved POWER7 HW IBM invoices for Power Systems hardware products dated on or after May 31, 2012, qualify for the 8% payout. IBM invoices for Power Systems hardware products dated prior to May 31, 2012, qualify only for the 4% payout described in Announcement Letter 512-128 dated February 28, 2012.  Additional 4 points for approved PureSystems Additional 4 points for approved Storage and X Bonus Additional 7 pts on SW if selling approved bundle
4. Qualifying HW Products
5. Qualifying Software
6. Targeted Solution Bundles Optimize Business Infrastructure Bundles Example: Red: Open Sourced Product
7. Targeted Solution Bundles Red: Open Sourced Product Example
8. Targeted Solution bundles More Examples: Red: Open Sourced Product
9. Rebate calculation and rules Minimum order of $20K* 30% content must be approved SW 30% content must be approved HW Example 1:No cap. If $100K claim consists of $30K hardware and $70K software, the ratio of hardware to software is at the 30%/70% ratio. Earnings of $8900 ($30K x 4%**plus $70K x 11%). *Software End User entitled price and hardware net build revenue **Assuming approved storage and/or x hardware In a claim with total IBM revenue of $100K, if either the hardware revenue or the software is less than $30K, then the incentive reward is capped by adjusting the larger component downwards so that the ratio of the resultant hardware revenue and software revenue complies with the 30% contribution rule. Even after any adjustment, the claim must still meet the minimum revenue requirement.
10. Rebate calculation examples Example 1: Base No cap. If $100K claim consists of $30K POWER7 hardware and $70K software, the ratio of hardware to software is at the 30%/70% ratio. Earnings of $10,100 ($30K x 8% plus $70K x 11%). Example 2: Base with Adjusted rebateIf $100K claim consists of $15K POWER7 hardware and $85K software, the software component will be adjusted downward to $35K, so that the ratio of hardware to software realigns at 30%/70% ratio. And, in this example that adjustment results in $50K total claim, which meets the minimum claim requirement. Earnings of $5500 ($15K x 8% plus $35K x 11%). If the adjustment resulted in less than $50K total, the claim would be denied. Example 3: Base with Adjusted rebateIf $100K claim consists of $85K storage and/or x hardware and $15K software, the hardware component will be adjusted downward to $35K, so that the ratio of hardware to software realigns at 30%/70% ratio. And, in this example that adjustment results in $50K total claim, which meets the minimum claim requirement. Earnings of $3050 ($35K x 4% plus $15K x 11%). If the adjustment resulted in less than $50K total, the claim would be denied. Example 4: Base plus BonusNo cap. If $100K claim consists of $30K storage and/or x hardware and $70K software, the ratio of hardware to software is at the 30%/70% ratio. And, the solution is an approved bundled solution.Earnings of $13,800 ($30K x 4% plus $70K x 18% (11+7)).
11. More Rules to Remember … For SW – No ELA, I&J (price levels) accounts are allowed Invoices from BP to E/U have to be within 15 days of each other (you also have the option to submit the E/U PO if your invoice is not within 15 days)  Multiply VADs can be used for base and bonus rebate Multiple resellers can be used when selling an approved bundled solution for bonus incentive only BP has 25 days to submit claim to the SW VAD on record of sale Rebate calculated from (SW) Entitled Price and (HW) Net Build Revenue Rebate will be paid monthly Rebate can be combined with existing incentives Excludes federal accounts Claim denials can be corrected (if denied) within the 25 day window Claims to be submitted to solutionaccelerator@arrow.com mailbox. HW/SW ISR’s on sale should be cc’d for verification
12. Next Steps… Let your ISR know when you have a Solution Accelerator Incentive opportunity. Work with your appropriate ISR to verify the products you are purchasing are eligible. If billing your end user the HW and SW separately, remember to invoice the products within 15 days of each other. Send a copy of the filled out claim for to: solutionaccelerator@arrow.com mailbox – please cc: your ISR on record. Contact your Arrow SWG Practice Leader and/or HW BSS for more details.
13. Support documents Solution Accelerator on Partner World: www.ibm.com/partnerworld/solutionaccelerator You will find: Approved SW and HW Products Approved Bundled Solutions FAQ Announcement Letter Numbers 512-128 (originated February 28th 2012) 512-256 (modified May 31st 2012) 512-291 (modified June 22nd 2012)