Selling IBM Solutions New IBM Initiatives to Drive IBM Hardware and Software Sales - Together!

1. Selling IBM SolutionsNew IBM Initiatives to Drive IBM Hardware and Software Sales - Together! IBM Solution Accelerator Incentive aka “Blue on Blue” prior to announcement 1

2. Are You Maximizing Your Deals to Benefit the Customer AND You? • Are You Maximizing the Opportunity? • Are You Maximizing Your Margin? • Are You Offering the Best Deal to the Customer by Bundling the HW, SW, Services and Financing? • How Much Are You Losing By NOT Clothing Your Deals? • What If You Were Able to Clothe Even 20% or More Of Your Deals?

3. IBM Solution Accelerator Incentive Base Incentive: IBM eligible HW + IBM eligible SW Incremental rebate: 5 points on HW 15 points on SW BP Sample Software Incentive Stack SAI SW Base + Bonus* 60% SVI Incentive 18% 50% 18% GB Incentive 40% 20% 18% 20% 30% SW Base 15% 20% 10% 8% * Note: Plus 4% on HW 10% 5% 5% 5% 0% I&A GB LE GBMM DISTRIBUTOR(S) BP HW BP SW CLIENT Bonus Incentive: • Rebate for selling pre-defined solution • Additional 10 points on SW solution • Teaming allowed Access eligible HW, SW, and Solutions:www.ibm.com/partnerworld/solutionaccelerator

4. IBM Solution Accelerator – HW Pipeline Review Suggested Actions: • Review HW Pipeline for Eligible Products (Click here for Product Eligibility List) • If eligible, are there any SW Opportunities associated with the HW? • Check the eligible SW List (click here) . • YES • Check PPA Eligibility for Customer (Govt, ELA, I and J are not eligible) • Must Order via PPA (not AAS for products that may be ordered either way) • Check Sizing to Maximize Incentive (ie. HW / SW 30% minimum) • Is There an Opportunity to Upsell for the Bonus Solution Incentive? (eg. TPC or Flash Copy Mgr for Storage?) • NO • Is the customer waiting to order after they get the HW? ORDER now or within 15 days of 1st PO for a better deal. • See Clothing Questions to Probe for SW Opportunities.

5. IBM Solution Accelerator – SW Pipeline Review Suggested Actions: • Review SW Pipeline with No HW • If eligible, are there any HW Opportunities associated with the SW? • Check the eligible HW List (click here) . • YES • Check PPA Eligibility for Customer (Govt, ELA, I and J are not eligible) • Must Order via PPA (not AAS) • Check Sizing to Maximize Incentive (ie. HW / SW 30% minimum) • Is There an Opportunity to Upsell for the Bonus Solution Incentive? (eg. TPC or Flash Copy Mgr for Storage?) • NO • Can you package a better deal with the IBM Solution Accelerator? • Is it a competitive HW opportunity? (Call in the competitive team to assist.) • See Clothing Questions to Probe for SW Opportunities.

6. Solution Accelerator: How does it work? Participation Options for IBM Distributors and IBM Business Partners: Teaming allowed on Solution Claims only Single BP/ Two Dist.s Single BP/ Single Dist. Two BPs/ Two Dist.s Two BPs/ Single Dist. IBM IBM IBM IBM Dist. HW VAD SWG Dist. HW VAD SWG VAD HW+SW VAD HW+SW BP SW BP SW BP HW BP HW BP HW+SW BP HW+SW Client Client Client Client VAD submits claim, gets rebate VAD/BPs share as they agree VAD submits claim, gets rebate VAD/BP share as they agree SWG VAD submits claim, each VAD gets rebate VADs/BP share as they agree SWG VAD submits claim, each VAD gets rebate VADs/BPs share as they agree Terms: VAD: IBM Value Added Distributor BP: IBM Business Partner BP teaming only allowed on Solution Bundles Claims 6 IBM Confidential

7. Sample Clothing Questions

8. Generic SW Clothing Questions • Customers buy hardware to run specific applications • Customers don’t always ask for everything they need • IBM provides middleware applications that make customer purchased apps better • IBM SW can greatly mitigate the risk of many solution deployments • How do you plan to manage the solution's HW, including its infrastructure and security? • If your solution connects to the Web, how will you introduce and manage the Web content? • Does your solution collaborate with other SW applications? If so, how will it integrate? • Does your solution involve employees teaming and collaborating? Do they need to do so electronically, or would your company profit if they did? • If your solution involves a SW application developed inhouse, do you have tools to manage this development?

9. Questions to ask … For Tivoli Storage Mgr Opportunities – Clothe w/ Storage HW • What storage will they be using for the TSM backup repository? • How full is their production storage? When do they anticipate needing more? • How fast is their production storage growing? Are they concerned about it? • Is the production storage performance or flexibility limiting their ability to grow existing workloads or deploy new ones? • Is it a competitive HW opportunity? (Call in the competitive team to help.) • Can the BP package a better deal with the IBM Solution Accelerator?

10. Questions to ask … For Storage Opportunities – Clothe w/ TSM • Do you need to backup to a DR site, to provide recovery for primary site failure? • Are you able to fully meet your backup windows? • Do recoveries take a long time because your tapes go offsite? • Do recoveries fail because of media problems? • Do you want to simplify your backup tool set? • Are important documents/files being missed from backup schedules? • Are backups impacting your applications? • Are you concerned that lost backup media may expose important information to an outside party? • Are lack of staff skills/resources impacting your recovery capability? • Do you have pressure from users for quick individual item restores? • Would you like to centralize / optimize your restore capability? • Is your current backup product not performing due to data growth?

11. System X What is the OS that will be run? Is there a preference? What SW is being used to manage the system (CA, HP, Tivoli, MS, other) Is there a DB that will be used on the machine (Oracle, Informix, DB/2, Sybase, Other) Will this machine (blade) be used as an application server (BEA, WebSphere, Oracle, Other) Will this machine be used as an email or collaboration server (Exchange, Domino, Novell, other) Will there be a main application run on this system (Peoplesoft, SAP, Siebel, Oracle, Home Grown, other) Will this machine be used in production or for development (if production flow to other questions) If for development – What tools will be used to write the software? Power Systems What is the OS that will be run? Is there a preference? What SW is being used to manage the system (CA, HP, Tivoli, BMC, other)? Is there a DB that will be used on the machine (Oracle, Informix, DB/2, Sybase, Other)? Will this machine be used as an application server (BEA, WebSphere, Oracle, Other)? Will this machine be used as an email or collaboration server (Exchange, Domino, Novell, other)? Will there be a main application run on this system (Peoplesoft, SAP, Siebel, etc)? Will this machine be used in production or for development (if production flow to other questions)? If for development – What tools will be used to write the software? Questions for HW Team – HW clothing by brand

12. Questions for HW Team – HW clothing by brand • Power I • What other OS’s might be run? Is there a preference? • What SW is being used to manage the system (CA, HP, Tivoli, other)? • Will this machine be used as an application server? • Will this machine be used as an email or collaboration server (Domino, other)? • What will be the dominant application run on this system? • Will this machine be used in production or for development?

13. Tivoli What is the OS/HW platform that the management software will run? How many machines will be needed to provide the management infrastructure? Is the customer looking to upgrade HW that the software will run? Will new hardware be purchased? Is the customer looking to consolidate systems used in the management infrastructure? WebSphere What is the OS/HW platform that the app servers, transaction servers and/or webservers will run? How many machines will be needed to provide the necessary capacity? Is the customer looking to upgrade HW that the software will run? Will new hardware be purchased? Is the customer looking to consolidate systems used in the app/web/trans server infrastructure? Questions for SW Team – SW clothing by brand

14. Lotus What is the OS/HW platform that the collaboration software will run? How many machines will be needed to provide the collaboration infrastructure? Is the customer looking to upgrade HW that the software will run? Will new hardware be purchased? Is the customer looking to consolidate systems used in the collaboration infrastructure? IM What is the OS/HW platform that the database server will run on? How many machines will be needed to provide the necessary capacity? Is the customer looking to upgrade HW that the software will run? Will new hardware be purchased? Is the customer looking to consolidate systems used to run the database infrastructure? Questions for SW Team – SW clothing by brand

15. Questions for SW Team – SW clothing by brand • Rational • What is the OS/HW platform that the management software will run? • How many machines will be needed to provide the development infrastructure? • How big will the production infrastructure be?

16. 2Q SWG Channel Sales and Mktg Plays - Products/solutions may qualify for SAI - Cross/up sell opportunities may qualify for SAI 16