Rewarding IBM Business Partners for Value Creation

1. Software Value Incentive,Value Advantage Plus,Value Advantage Plus for Government Sales,& Software Value Plus Rewarding IBM Business Partners for Value Creation Maryska Marinus SWG Channel Sales Program Manager, Europe, Middle East & Africa maryska_marinus@nl.ibm.com

2. Software Value Plus Driving growth through an investment in skills With the Business Partner Sales Tools: Software Value Incentive (SVI) Value Advantage Plus (VAP) More rewards for skills with the new programme: Value Advantage Plus for Government Sales (VAP Government)

3. SVI or VAP to be Reseller Authorised in Software Value Plus?

4. SVI and/or VAP or VAP Government? Value Advantage Plus • For selling pre-approved BP Solutions • Rebates received from VAD • Up to 20 % rebate for GB customers • Only for fulfilled orders Software Value Incentive • For Identifying and Selling of opportunities • Fees paid directly to BP • Up to 20% fees for GB customers • Fees are a fixed % • Fulfilling not required Value Advantage Plus for Government • For selling to Government customers • Rebates received from VAD • Up to 20 %rebate for GB customers • Only for fulfilled orders

5. Margins: N.B.The rebate amounts are on agreement between the Distributor and the Business Partner

6. SVI Success Stories • We have paid millions of SVI fees to the BPs since the start of the program. Find all case studies onhttp://www.ibm.com/partnerworld/softwarevalueincentive

7. How to join SVI, VAP & VAP Government • Be at Member Level (or higher) in IBM PartnerWorld Sign in to PartnerWorld in the Country Enterprise profile and apply under SVI or VAP • Apply for the Product Groups meeting the programme criteria SVI: • For a Reseller Authorisation Product Group have at least one (1) qualifying sales certification and at least two (2) qualifying technical certifications in the Product Group • For an Open Distribution Brand Product Group have at least one (1) qualifying sales certification and at least two (2) qualifying technical certifications in the Software Group Brand VAP: • The product Groups which are part of the VAP Solution VAP Government: • If in authorised distribution, BP must be authorised to resell under Software Value Plus • If in open distribution, BP must have 1 sales and 2 technical certifications in the brand

8. How to join SVI, VAP & VAP Government- continued • Meet the programme requirements SVI: • Meet the certification criteria for at least one Product Group. VAP: • Provide evidence that the reselling BP is reliable with 3 customer references • Provide evidence that the BP promotes and markets their offering as a repeatable “solution” with a brochure or website VAP Government: • Provide evidence that the BP has experience in selling to government customer with proof of 3 previous sales in the previous 2 years: • Select the preferred Value Add Distributor (for all programmes the same) • Read and accept the Terms and Conditions and submit the enrollment form • One enrollment per country permitted

9. How to benefit from SVI, VAP & VAP Government • To earn the rewards the following actions are required: SVI: • Register the opportunities in Global Partner Portal (GPP) meeting the SVI criteria. • Request payment in GPP after closure of the deal and provide the required proof with Sales Documents • Receive the fee payments directly from IBM VAP: • Provide the order to the selected Value Add Distributor (VAD) with the VAP Solution ID and receive the rebate from them • Meet the compliance criteria of 20 % Value Add to keep the received rebate and stay in the programme VAP Government: • Register the opportunities in GPP meeting the VAP Government criteria • Provide the order to the selected VAD with the VAP Solution ID and GPP opportunity number and receive the rebate from them • Provide the required proof with Sales Documents in GPP to keep the received rebate

10. SVI – Revalidations and Terminations • Revalidation and termination process • SVI certifications for: • Programme participation will be reviewed every six months • Termination from the programme when criteria are not met • 31st of March and 30th of September (not in March 2010) • Product approval, except Software ValueNet Portfolios, will be reviewed every six months and will be done at the Product Group level • Termination of product group when criteria are not met • Software ValueNet Portfolio revalidation will be done via the Software ValueNet annual revalidation process. • Termination from SVI when the SWVN agreement is terminated • If a Business Partner loses an employee or if a certification is sunset and the Business Partner falls below the required certifications between revalidations, they will have untill the next Revalidation Date to achieve the necessary certifications.

11. VAP - Revalidations and Terminations • Compliance reviews: • Reviews are performed after 6, 9, 12 or 15 months after the VAP Licence transaction depending on the transaction amount: • 6 months: transactions between $0 and $99.999 • 9 months: transactions between $100.000 and $799.999 • 12 months: transactions between $800.000 and $1.200.00 • 15 months: transaction higher than $ 1.200.00 • The BP is suspended when they do not meet the compliance criteria: • a) revalidate profile, • b) no documents, • c) within timeline, • d) adhere to T&Cs, • e) agree to conditional status, • f) pass compliance. If a Business Partner is failing the compliance criteria they are terminated from the VAP programme for all VAP solutions (and from VAP Government).

12. SVI – Programme enhancements • Expension of Waiver for Documentation on Small Deals – Up to 100 K$ • Business Partners are not required to submit eligible sales documentation in order to receive the SVI fee payment for an opportunity when: 1.All SVI eligible revenue records in the opportunity were approved with an Incentive Fee Type of "Identify and Sell"; 2. The Business Partner of the opportunity is also the Reseller of the sales order; and 3. There is only one Passport Advantage sales order for the opportunity; and 4. The sum of the approximated end user entitled price or special bid price for all Sales Order Line Items for new license part numbers is less than or equal to the Small Deal Sales DocumentationWaiver Threshold Value (for your country). If any of the above conditions are not met, then normal SVI sales documentation is required • Eliminiation of 2-Way Communication Requirement

13. VAP – Programme enhancements • A new version of the Value Advantage Plus Operations Guide has been posted to the Value Advantage Plus Web site. • Version 4.7 includes details of the simplification of the programme such as the removal of the special certifications and customer reference requirements for the following products: • Rational • Tivoli Maximo • Netcool • Information Management Websphere IIS products(heritage ascential software) • Eliminiation of pre-approval requirement for 3rd party billing • To enable you to prepare for Software Value Plus we have included a separate page on 'Requesting an Additional Brand to a Value Add Solution'. http://www.ibm.com/partnerworld/valueadvantageplus

14. VAP Government - Advantages • Rewards for expertise in selling to Government customers and capitalises on the brand image and market leading products that IBM provides • Increased profitswith more IBM software licences sold and installed • Increased sales margin from VADs / IBM • Recommended margin for software sold with VAP Government to government customers is higher and depends on VAD pricing • Provides an additional option to earn rewards for Government customer opportunities for cases where the VAP solution programme does not fit, because: • There is no repeatable solution available • The compliance criteria are not met: • At least 20 % of total invoice to customer is the BP’s own Value Add • The BP can’t provide IBM the invoice to the customer

15. Software Value Plus – How to join • Be a member of IBM PartnerWorld • Become fully approved in either or both SVI or VAP for the required Reseller Authorization group(s) and choose a preferred distributor • Complete the partner plan in the IBM PartnerPlan tool • Apply for BPA for SW Remarketers, accept the terms and conditions Provide a hardcopy if required in the country • Select the Reseller Autorization group(s) If IBM accepts the BP will be notified of the approved Reseller Authorization group(s) and the reseller customer number, which will be the same as for SWVN and VAP.

16. Software Value Plus – Revalidations and Terminations • Your right to resell products in authorised distribution Reseller Authorization group(s) will be revalidated every six months in April and October.(not in April 2010) • The Revalidation process consists of the following Revalidating steps: • 1. Partner Plan for all Reseller Authorization Groups • Current partner plan in IBM PartnerPlan tool • 3 month to update or all Reseller Authorization group approvals revoked • 2. Value Add Initiative per Reseller Authorization group • Approval for SVI or VAP • 3 months to re-establish authorisation or Reseller Authorization group approval revoked • 3. Value Add Revenue Percentage per Reseller Authorization group (not before January 2011) • Achieve or exceed 10 % Value Add revenue through SVI or VAP(% may vary per country) • 3 months to increase the Value Add percentage or Reseller Authorization group approval revoked • Unless waiver criteria are met; • 1. less than 6 months approved, 2. less total revenue than minimum, 3. less revenue for one group than minimum. • N.B. Wait 6 Months before reapplying.

17. Information and support PartnerWorld Support Centre emeapw@uk.ibm.com SVI Website http://www.ibm.com/partnerworld/softwarevalueincentive VAP & VAP Government Website http://www.ibm.com/partnerworld/valueadvantageplus Software Value Plus Website http://www.ibm.com/partnerworld/softwarevalueplus Your local SVI Subject Matter Expert Your local IBM Sales representative Your preferred Value Add Distributor

18. Questions? Thank you and success!