What is Software as a Service (SaaS)?

1. Cloud & Smarter Infrastructure SaaS 101 - Introduction to Software as a Service (SaaS) for Partners

2. What is Software as a Service (SaaS)? • Software as a Service (SaaS) is a software delivery model in which software and associated data are centrally hosted in the cloud. SaaS is typically accessed via a web browser. Payment for the service is through a subscription model. • You are using SaaS today if you access applications like Facebook, Twitter, or gmail. See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing

3. What is driving the move to SaaS? Market dynamics and disruptive technologies are driving the shift to SaaS consumption models Developers want Low touch, easy to consume, continuously updated software Cloud Social Mobile CxOs want Lines of Business want Predictability Lower costs Quicker business value Access from anywhere To create new offerings by composing services from multiple providers Embedded Intelligence Big Data IT Operations wants To manage on-premise, Cloud, and hybrid environments

4. Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments 48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research  60% of the IT purchase process decision is completed before the prospect engages a vendor … and the decision making process is changing CIO CTOs IT Managers IT Operations Manager Data Center Manager Decision Makers Economic Buyers Decision Makers Influencers Developers Technical Leaders System Administrators IT Operations Data Scientists Recommenders Users Practitioners *Source: Google & Compete B2B Customer Study, June 2012

5. How can SaaS help? • Improved TCO due to lower infrastructure cost • Flexible subscription pricing • Minimal upfront investment • Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes • Lower risk with try & buy approach • Accelerates evaluations and decision making

6. Remember these? The speed of destructive innovation is accelerating SaaS has already changed the game Don’t be a footnote in the history of computing.

7. Traditional competitors have high revenue, but are losing share to a new breed of competitors .. the Digital Engagers New Vendors Double Digit Growth “While the Old Lionsfight, the Hyenas are stealing the food”C&SI on the April 2014 TT Study Total revenue 1.3B (without VMWare) Fiberlink New Relic ServiceNow Splunk YTY Growth (‘11-’12) Traditional Vendors Single Digit, Flat, Negative Growth SolarWinds VMWare EMC Commvault CA BMC HP IBM C&SI BMC Symmatec Revenue ($B) 7

8. Market Demands • Ability to progressively add capabilities • Leverage existing and new IT investments • Pay per use predictability • Visibility across the entire “IT Supply Chain” Competition Delivers C&SI Delivers • Niche-level capabilities • Narrow delivery model – SaaS only • Limited out of the box integrations • Limited end-to-end visibility • Broad portfolio of capabilities • Support for On-Premise, SaaS, or hybrid • Seamless integration across multiple offerings • Visibility across entire enterprise

9. What is IBM Service Engage?A New Way toexperience and acquire our on-premise and SaaS solutions IBM Service Engage Learn • Explore • Try • Use (Buy) • Extend • Support New way…. • to POC your clients … start a POC in 30 minutes, anytime, anywhere your client wants • for engaging clients and partner via live guided demos available 24x7 • to accelerate the close • to extend what your clients are already buying at lower total cost via Software as a Service IBM Service Engage

10. Welcome to IBM Service Engage Cumulative Data since 2/23/14: 14,877: Number of total visitors to Service Engage website 8,132: Number of unique visitors to Service Engage website 4378: Number of demos run across all payloads starting from Pulse Number of Trials Currently Active on 3/16/14 406: Number of Trials currently provisioned across all payloads Number of Customer Purchases Passport Advantage SCCD: 5 eCommerce None www.ibmserviceengage.com 10

11. IBM Performance Management for Applications and Infrastructure solutions increases your end user satisfaction with complete visibility and control of your application environment.

12. IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.

13. SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience

14. Maximo Asset Management (SaaS) reduces the complexity and cost of managing and maintaining enterprise assets, while increasing efficiency in work scheduling and inventory levels

15. Maximo Inventory Insight (SaaS) – Pre-configured inventory decision support system delivered as a service.

16. MaaS360 Mobile Device Management (SaaS) will simplify management, security, and maintenance—across all enterprise devices and all mobile platforms

17. Why is this important to YOU? Service Engage faster time to value for your clients POC in days not weeks / months with 30 day evals Earn quick wins, close more often, earn more money via 2x ACV (PCO1 & PCO2)Expand your footprint in your accounts using a land and expand strategy Displace competitors, on flexibility, broad capabilities, lack of comparable offer Service Engage puts you and your clients in the drivers seat. Take a drive today! https://www.ibmserviceengage.com/

18. What is the SaaS Sales Cycle? • Organic & Paid Search • Re-targeting • Content Syndication • Social Media Advertising • 3rd Party Practitioner Events • Social Casts Digital & Practitioner Marketing Tactics IBM Service Engage Digital & Practitioner Marketing Tactics IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions Sold into LOB business • Focus on Business Objectives • Time to Market • Return on Investment • Speed of Deployment Sold into LOB business • Focus on Business Objectives • Time to Market • Return on Investment • Speed of Deployment Sold into LOB business • Focus on Business Objectives • Time to Market • Return on Investment • Speed of Deployment EXPLORE LEARN Your Client’s Business Problem and/or Objective EXPLORE SaaS capability to deliver “best practice” process & capability TRY Client trials SaaS offering, delivering business process & capability BUY Close the deal Understand Explore Develop Implement Confirm & Repeat Service Engage 30 day evaluation removes the POC dependency, and shortens the sales cyclefrom weeks/months to days 18

19. Tremendous opportunities to up-sell and cross-sell It is a huge differentiator that other vendors cannot match! Note that all of the offerings in the middle column have on-premise versions Choice is something only IBM can offer.

20. Tremendous opportunities to up-sell and cross-sell – part 2

21. Where are the C&SI SaaS solutions hosted? Active Data Centers - SoftLayer Amsterdam Dallas Singapore • All C&SI SaaS offerings are currently hosted in SoftLayer data centers. • In 2014, additional data centers will be provided (SoftLayer or partner), based on business needs.

22. What do I need to know about Data Privacy? Personal datagenerallyincludes information relating to an individual -think business card (e.g. names, email addresses, home address) In some countries, also includes information about identified partnerships, associations, or corporations. IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be the client responsible for entering the data. In most cases, Passport Advantage agreement covers data privacy for personal data. EU and Switzerland have additional data privacy regulations but have established the ability to create a framework with the U.S for accessing personal data. C&SI SaaS is in the process of obtaining EU Safe Harbor certification. This requires a risk assessment after we Go Live. In the meantime, we have security measures in place to restrict access to EU client data and for IBM non-U.S. employee access to Amsterdam hosting center in order to comply. IBM has an Online Privacy Statement which is another EU Safe Harbor requirement See the SaaS Center of Competency web site for further details on country-unique privacy requirements

23. Service Engage Sales Center of Competency The Center of Competency (CoC) serves as a war room to provide resources for sellers to help close SaaS deals. The CoC web site provides the following general information: • Overviews • FAQs • Terms & Conditions • Privacy • SaaS vs on-premise • Competition • Pricing • ELAs & SaaS • Sample User Scenarios • Typical sales cycle for a SaaS deal • Links to payload info The CoC web site provides the following information for each SaaS payload: • Offering Capabilities • Scalability & Security issues • References • FAQs • SaaS versus On-premise • Dealing with competition • Typical Sales Cycle for this payload • Pricing, entitlements, trade-ups • Terms & Conditions • TCO calculators • Integrations & Extensions • Doing evaluations For IBM Sellers: https://ibm.biz/salescoc For Partners: www.ibm.com/csicenter/partners

24. What should I do next? • Go to Service Engage, learn about it, provide feedback • Learn about SaaS and C&SI’s 1H 2014 SaaS offerings. • Approach your top 5 customers with these questions: • Does the overwhelming cost of maintaining their infrastructure hinder developing new services that could bring in additional revenue? • Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors? • Do they want to lower their Total Cost of Ownership (TCO) ? • Determine where your customer wants to be, and how they should get there. • Encourage them to test drive Service Engagetoday • Look for opportunities to up / cross-sell • Make a SaaS proposal. • C&SI Strengths: • Customer choice: On-premise, SaaS, integrated experience • Integration with broader Service Management capabilities • Accelerate sales velocity with Service Engage • Unsurpassed breath of capabilities

25. Working on Q2 enablement schedule Where can I learn more? • Sales Kits: • SaaS sales kit SSW, PartnerWorld • See the SaaS updates to these sales kits: • Performance Management sales kit IBM, PartnerWorld • SmartCloud Control Desk sales kit IBM, PartnerWorld • IBM Workload Automation sales kit IBM, PartnerWorld Important web sites • Center of Competency – for IBM sellers • Center of Competency – for partners • IBM Service Engage • Software Sellers Workplace (SSW) • To learn more about the technologies: • Cloud, Cloud computing • SaaS: WWW, YouTube