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Recession Offering

Recession Offering. Bob Neave June 2009. Recession Offering. Issue Customers are requesting cost reductions on their hardware maintenance and software support in the 25 – 30% range to get them through the year Resolution M&TS offers a short term recession proof play

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Recession Offering

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  1. Recession Offering Bob Neave June 2009 Internal and Business Partner Use Only

  2. Recession Offering Issue • Customers are requesting cost reductions on their hardware maintenance and software support in the 25 – 30% range to get them through the year Resolution • M&TS offers a short term recession proof play • Finance the 3 year maintenance and/or your software support in a step fashion • Provide lower payments through year end to meet immediate budget pressures, but step up payments in years 2 and 3 • We aren’t giving anything away, only restructuring payments to meet customers’ immediate needs until the economy improves • Customers sign up for multi-year coverage • Locks customers in, prevents future competitive threat during life of contract • GTS recognizes the revenue prorated over the life of the contract • Incents customers to do multi-year contract with GTS Internal and Business Partner Use Only

  3. IGF Credit Rating • GRMG is IGF’s internal credit rating for our customer’s • Best + GRMG 1 to 3 • Best GRMG 4 • Select GRMG 5 • Standard GRMG 6 • GRMG 6’s now require review • GRMG 7’s rarely get approved Internal and Business Partner Use Only

  4. Financing scenario’s for GRMG < 3 customers 3 yr annuity MA with no prepay = $3,492,000 at $97,000/month PPF = $3,422,160 – prepay amount; common for all scenarios Internal and Business Partner Use Only

  5. Financing scenario’s for GRMG 4 customers 3 yr annuity MA with no prepay = $3,492,000 at $97,000/month PPF = $3,422,160 – prepay amount; common for all scenarios Internal and Business Partner Use Only

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