Software Value Incentive Ask the Experts March 27-31, 2006

1. Software Value IncentiveAsk the ExpertsMarch 27-31, 2006 Mary Cipriani, Mary Cotham, Chris Follansbee, Greg Milani Software Value Incentive

2. Agenda • SVI Process overview • Where to go for more information • Call to action • Key Dates • Q&A Software Value Incentive

3. Key Points To Remember • Meet the software certification requirements (2007) • Sell minimum $10k per sales order • Register and be approved minimum of 30 days prior to Sales Order Date • Be first to submit complete, validated opportunity • Resubmit existing PWLM and ICSF opportunities to GPP • Sell eligible products to eligible end users • For existing Passport customers, use the Customer Account Name and Address as appears on their Passport contract • Use the online product table to select the correct Brand Family • Submit eligible Sales Documentation as Proof of Performance • Build Your Partner Ecosystem Software Value Incentive

4. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • MONDAY - Enrolling in SVI • TUESDAY - Selling eligible products to eligible end-users • WEDNESDAY - Submitting validated opportunities • THURSDAY - Submitting eligible sales documentation • FRIDAY - Requesting payment Software Value Incentive

5. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • Enrolling in SVI • Selling eligible products to eligible end-users • Submitting validated opportunities • Submitting eligible sales documentation • Requesting payment Software Value Incentive

6. Enrolling in SVI - Prerequisites • IBM PartnerWorld Business Partner Member level or higher • 3 Software Certifications (waived through Jan 2007) • 2 Technical • 1 Sales • 1 certification in each software brand for the opportunities being submitted • Electronic Funds Transfer for SVI Fee payments • Internet access for the online PartnerWorld and GPP tools • Note: Use MS Internet Explorer. Firefox and Google toolbar integration are incompatible with the GPP application. • 1 SVI enrollment per Business Partner company per country Software Value Incentive

7. Enrolling in SVI - Partner • The partner’s Authorized Profile Administrator (APA) reads and accepts the SVI Terms and Conditions electronically • SVI T&Cs contract available now on PartnerWorld site • APA selects their Preferred Distributor • If VAP, must use default choice of VAP preferred distributor. • If not currently VAP, choose VAD • If influence only (not fulfill), must choose ibm.com • Business Partner’s APA and their Business Contact will receive an email accepting or denying participation in Software Value Incentive Software Value Incentive

8. Software Value Incentive enrollment screen This is the SVI enrollment form for the Business Partner https://www-304.ibm.com/jct09002c/partnerworld/mem/sell/sel_sip_svi_apply.html Software Value Incentive

9. SVI Enrollment and Approval – IBM SVI Admin • IBM SVI Administrator Validates • PartnerWorld Membership status, VAD selection, and acceptance of SVI T&Cs • Business Partner’s current software technical certifications which determines their eligibility by brand to earn incentives (Jan 2007) • If approved • IBM creates first User ID and Password for the APA to access the GPP tool • Notifies the Business Partner of approval via e-mail • APA can then grant access to GPP to additional users in their firm • SVI Enrollment begins April 3rd Software Value Incentive

10. Enrolling in SVI The GPP Business Partner positions that a partner can create include: Software Value Incentive

11. SVI Enrollment and Approval • Reasons why an enrollment might be denied: • lack of required software IBM Professional Certifications • Business Partner already in a mutually exclusive program (GSI) • Notification from GPP: • Business Partner firm currently using GPP (hardware BCC program) - GPP Administrator is notified of enrollment • Business Partner firm new to both SVI and GPP, IBM SVI Administrator notifies you that you are the GPP Administrator and instructs you to set up user profiles for your firm in GPP • Partner’s GPP Administrator (APA) sets up userids and employee job roles in GPP • Users can access GPP and begin entering opportunities starting April 10th Software Value Incentive

12. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • Enrolling in SVI • Selling eligible products to eligible end-users • Submitting validated opportunities • Submitting eligible sales documentation • Requesting payment Software Value Incentive

13. Sell An Eligible Middleware Product • Must be New License part number fulfilled via Passport Advantage: • License + SW Maintenance, Trade Up License + SW Maintenance, Initial Fixed Term License & Maintenance • Ineligible Products • Maintenance Renewals, Maintenance Reinstatements, Media/Doc packs • Cross brand products must be ordered via Passport Advantage, and not via hardware configurator tools • example: WebSphere for iSeries has both PA part number and iSeries PID number • Eligible part numbers are those in the same brand and brand family that are registered in the opportunity • Use the Brand Category table to ensure correct selection on the Revenue tab when creating SVI opportunity record • Transactions fulfilled through mutually exclusive programs (OEM) are not eligible • When Business Partners are fulfilling, only the transactions processed through their Preferred Distributor are eligible for SVI fees • When a VAP rebate is applied to a specific part number in an eligible transaction, the revenue from that part number is ineligible for the SVI Sell incentive if the opportunity owner is the VAP Partner Software Value Incentive

14. Sell to an Eligible End User • Utilize the Midmarket Help Desk to verify if an account is SMB or Enterprise • SVI will use the “Customer Code for BP Incentives” field • Verify if the account is ineligible Government ISU code • Federal Government • State/Local Government • some Public Hospitals, Public Schools • When creating opportunity record in GPP, select the customer account record that matches the customer number on the Passport contract that will be used for the license order • Sale cannot be to a Business Partner company that fulfills Passport or a Business Partner company participating in SVI • For US Business Partners, Passport ship-to location must be in US Software Value Incentive

15. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • Enrolling in SVI • Selling eligible products to eligible end-users • Submitting validated opportunities • Submitting eligible sales documentation • Requesting payment Software Value Incentive

16. Submitting Validated Opportunities • Submit for SVI eligibility, and be approved minimum 30 calendar days prior to the IBM Sales Order Date • Once an opportunity is approved for SVI eligibility, the 30 day clock starts from the timestamp of when it was submitted for approval. • If an opportunity is rejected as Incomplete it returns to Draft mode. When a partner resubmits it, and if it is then approved, the 30-day clock starts anew from the timestamp of when it was resubmitted for approval. • Pay close attention to 30-day requirements as Quarter-End approaches. • Create separate opportunity records if product is being ordered in phased approach • For US, opportunity total must be minimum of $10k per Sales Order Transaction Software Value Incentive

17. Submitting Validated Opportunities An opportunity record consists of both a “Header” and associated “Detail” records (Applets). • The Header includes information about the end user customer, the solution, business need, who has access and its status / control information • Revenue applet – this is where you select information specific to the brand family and it’s associated revenue • Accounts applet – select the location matching the PA address • Contacts applet – add the Approver or Decision Maker’s contact info • Sales Team applet – select the IBMers or VAD reps you wish to have access • Attachments applet – attach Oppty Validation Template, Sales Documentation • Activities applet, Bid Cert Detail applet – not applicable to SVI An opportunity record can be created as new or copied from an existing opportunity If creating new Account record, use full legal name, not abbreviations See the Partner SVI Education material posted to PartnerWorld SVI site Software Value Incentive

18. Header Record select oppty # to view detail records be sure to save Detail Record Applets be sure to save Software Value Incentive

19. Creating a New Opportunity – partner basics • Set Timezone • Arrange Columns • if you’re not a Hardware Business Partner, remove BCC, hw fields • Verify that Account is in database or create a new one • Verify that Contact is in database or create a new one • Create Opportunity Record • associate Account and Contact info to Opportunity • Description field must include BANT • SSM stage, close date, odds • Brand Family, quantity, price, opportunity reason • Add Users to Sales Team • Attach Supporting Documents and Submit for Eligibility • Be sure to Save at every step • To Logoff: Ctrl+Shift+X or close your browser • Partners should reference the Opportunity Entry Template word doc & GPP Quick Reference Card Software Value Incentive

20. Updating a previously submitted opportunity • After an opportunity is submitted for SVI eligibility, you can change the revenue value, the odds, and the close date • The following fields cannot be changed: • Brand Family • Type • Description field • Account Name and Address • Additional revenue records cannot be added • If you need to change these fields, you must create a new opportunity • Supporting proof of Sales Documentation can be attached to the opportunity record at any time prior to submitting for payment • Opportunities Rejected as Incomplete are reset to Draft mode Software Value Incentive

21. Defining SVI Validated Opportunity A Validated Opportunity record must include the following information: • Prospect’s contact information must be complete in Contact tab • Name, Title, Email, Phone, Address • Job Role must be Approver, or Decision Maker • Prospect’s Company information must be complete in Accounts tab • Opportunity tab must include: • Description of business problem (250 characters) • Product categories proposed • Revenue Detail – Brand Family, Qty, Price • Projected sales close date • Sales Stage 4/Validated or higher Note: Required fields in GPP are indicated with red asterisk, but SVI requires more data fields to be filled in. Refer to SVI Operations Guide for complete list of required fields for SVI opportunity records. Software Value Incentive

22. SVI Validated Opportunity – Description field • Only validated opportunities should be submitted for SVI eligibility. A validated software opportunity description must include BANT: Budget, Authority, Need, Timeframe • Description of business problem • Description of the suggested solution to the business problem and how IBM middleware will be used • Does the customer have funds budgeted for this project? • Authority – the contact on the opportunity record must be a Decision Maker or Approver • Timeframe – this is typically close date, but add detail as necessary to clarify • Validated opportunities do not include seminar attendees, direct mail responses, business show attendees, etc • Refer to SSM education materials on PartnerWorld • 250 characters in Description Field Software Value Incentive

23. SVI BANT Opportunity Validation Template Additional info can be included as an attachment using the BANT Criteria Template (word doc) for Opportunity Validation • What is the customer’s current hardware/software environment? • What is the description of the customer’s current business problem? • What is the impact of the business problem on key customer stakeholders? • What is the suggested IBM Middleware solution? • What are the key benefits of the IBM Middleware solution that will address the business problem? • Who is the customer decision maker(s) involved in approving the recommendations and/or budget? • What is the timeline of key decision milestones, and what criteria will be used? • Has budget been identified and approved for this project? Software Value Incentive

24. Searching For Duplicates • Business Partner creates and saves a validated Opportunity (Draft mode) • Partner submits Opportunity, status changes from Draft to Duplicate Opportunity Search • First IBM searches GPP to see if another BP has already submitted and been approved for the same opportunity • Same Account Name? • Same Country, Same State, Same City? • Same Brand Category in Revenue Record? • Same Dollar Amount, Close Date, Description? • Then second search in Siebel CRM using same search criteria to see if IBM has already identified the same opportunity • Seibel CRM search will only include IBM OI records that are Open • Is this SVI partner listed on the IBM Siebel record? Software Value Incentive

25. Determining Eligibility - IBM • Approve as Net New Opportunity for ID and Sell • Reject as Ineligible • Invalid Customer (Public Sector) • No technical certification found for the partner in the brand family (starting in 2007) • Reject as Incomplete: (returns to Draft mode, updated records can be resubmitted) • Completeness Check: Have all required fields in the Opportunity record been completed with valid information? Be sure to click on “Save” at each step! • Validation Check: Has the partner provided sufficient BANT detail to describe the opportunity as Validated Sales Stage? • Reject for ID and Sell: • Brand Family is already included in a previously accepted opportunity • Reject For ID, Approved For Sell: • already known to IBM (already in Siebel, and SVI BP is listed as resource) • Reject for ID: • already known to IBM (already in Siebel but BP not listed as resource) • If BP gets added to Siebel record, resubmit and could be approved for Sell • Determine SVI Status of each Revenue Record, Overall Opportunity Status • Typically, IBM will accept/reject submitted opportunity records within five business days Software Value Incentive

26. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • Enrolling in SVI • Selling eligible products to eligible end-users • Submitting validated opportunities • Submitting eligible sales documentation • Requesting payment Software Value Incentive

27. Defining SVI Eligible Documentation Documentation that is considered evidence of a Business Partner’s recommendation must meet the following requirements: • Recommendation of IBM Middleware • Reflect the forecasted revenue • Product categories must match those registered in GPP • Dated before the IBM Sales-Order-Date for the user’s purchase • Submitted in country native language • Dated and contain specific implementation dates • Show evidence that the Business Partner authored the document • Show evidence that the documentation was given or presented to the user by the Business Partner. • Reflect the selling of solutions, not just a product • Show a sustained time line for two-way communications Software Value Incentive

28. SVI Eligible Documentation - acceptable • Proposal for solutions • Statement of work • Proof of concept • Prototype • Copy of the customer contract • Documentation of sales calls made • Letter from the customer • Architectural study • Copy of an implementation plan • Sizing or configuration document presented to the purchaser You must submit at least three documents, and they must provide sufficient documentation that demonstrates your influence on the customer’s buying decision. Software Value Incentive

29. SVI Ineligible Documentation - unacceptable • Products that the Business Partner previously sold to an Infrastructure Business Partner • Filler documents – insignificant sales activities • Documentation about relationship with end-customer • End-user calls to the Business Partner asking for a quote. • Social e-mails, internal memos and notes • Day Timer calendar entries unless they are supported by actual meeting documents • IBM Quick Proposal Templates from the PartnerWorld Web site • IBM product literature, such as PDF brochures Software Value Incentive

30. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • Enrolling in SVI • Selling eligible products to eligible end-users • Submitting validated opportunities • Submitting eligible sales documentation • Requesting payment Software Value Incentive

31. Updating Sales Stage to Won and Submitting Payment Request Before submitting for payment request, partner must ensure that: • The revenue amount matches the amount you actually sold and, if necessary, go back and update the revenue records in the opportunity. • Attach all necessary sales documentation • Indicate in the opportunity record if you are fulfilling the transaction. • If you are fulfilling, provide and/or update the IBM account customer number, Passport Agreement and site number • Provide and/or update the sales order number or IBM invoice date in the opportunity comment field. Also, when placing PA order, include the Opportunity number on Business Partner’s PO to the VAD. This will help to ensure accurate payments to the partner. Once the opportunity has been submitted for payment request, these fields cannot be changed. Software Value Incentive

32. SVI Payment Process Flow • Partner submits closed opportunity for payment request • IBM searches for matching Passport Sales Order • IBM reviews Sales Documentation and determines approval • IBM will apply the payment business rules to the identified line items and calculate the payment amount on those line items that meet all the business rules • IBM will approve or reject the payment amount and release payment authorization to IBM Accounts Payable • See SVI Operations Guide for additional details and rules on Fee Payment Processing, Adjustments and Audits, and Termination from the Program Software Value Incentive

33. Fee Calculation by IBM • Once the eligible lines items in the sales order are determined as payable, the Identify and Sell fees are calculated for each of these line items, based on the fee schedule • There are no caps on the amount of SVI fees that can be earned for an eligible opportunity. • To calculate your SVI fees, IBM will use an approximated Suggest Volume Price or approximated Suggested Retail Price, as applicable, for the Eligible Products included in the sales order • If your forecasted revenue for a brand family in an eligible opportunity is greater than the actual revenue in the associated eligible sales order line items for that brand family, the incentive will be calculated based on the actual revenue amount for those line items. • If your forecasted revenue for a brand family in an eligible opportunity is less than the actual revenue in the associated eligible sales order line items for that brand family, a 25% uplift will be applied to the forecasted revenue for that brand family. The SVI incentive fee percentages will be applied to the lesser of the actual revenue in the associated eligible sales order line items for the brand family, or the uplifted revenue amount for the brand family Software Value Incentive

34. Why a Fee Payment May Be Denied • insufficient sales documentation • no matching sales order found for the opportunity • doesn’t meet payment business rules: • submitted and approved at least 30 calendar days before the IBM sales order date • payment request submitted in 60 days or less after the IBM sales order date • payment request is submitted on or before the opportunity expiration date • The sum of the line items in the sales order that are eligible for payment are less than $10k • not a Passport Advantage transaction to an eligible end user • The sales order line item has already been processed by the payment application Software Value Incentive

35. Business Partner applies for SVI participation Business Partner registers and submits an opportunity IBM approves or rejects the opportunity Sales/Selling process The Sale is Won Software Value Incentive Process Overview • Enrolling in SVI • Selling eligible products to eligible end-users • Submitting validated opportunities • Submitting eligible sales documentation • Requesting payment Software Value Incentive

36. Where to go for more information External • Business Partner information available on PWwww.ibm.com/sales/partnerworld/softwarevalueincentive Operations Guide, Program Guide, Program overview • Learning materials Quick reference card Self-study course including simulations Online help Software Value Incentive

37. Software Value Incentive

38. Where to go (continued) • PartnerWorld Help Desk 800-IBM-9990 How-to questions on enrolling in SVI and creating opportunities in GPP • Opportunity Entry Template To be used as completeness checklist to assist Business Partners when creating new records Posted with March 23 Think!Thursday materials • BANT Criteria Opportunity Validation Template Optional template which can be used for further documentation Posted with March 23 Think!Thursday materials Software Value Incentive

39. Where to go (continued) • Lunch & Learn sessions for Americas Business Partners week of 3/27 • Monday 3/27 Enrolling in SVI • Tuesday 3/28 Determining eligibility of end-users and products • Wednesday 3/29 Submitting validated opportunities • Thursday 3/30 Submitting eligible sales documentation • Friday 3/31 Requesting IBM payment • Start Time: 1:00 pm ET / 12:00 pm CT / 11:00 am MT / 10:00 am PT • Length: 60 minutes • Call In: Toll free 888-569-5033; or 719-457-2653 • Title: Hot Topics • Passcode: 6232450 Software Value Incentive

40. Call to Action – Plan for Change • Prior to enrolling in SVI • Is your PartnerWorld profile up to date? • Who is the Authorized Profile Administrator (APA)? If unknown, contact Partnerline Helpdesk. • Do you have qualifying certifications now or plans to get them in place in 2006? • Do you plan to Fulfill, and if so are contracts in place with a designated VAD? • Have you decided who to designate as your preferred VAD? (If you’re participating in the VAP program and have already designated a VAD, the same VAD must be used for SVI.) • Do the additional SVI users you intend to add to GPP already have IBM Registration IDs, and are these employees listed in your PartnerWorld profile? https://www.ibm.com/account/profile/us • Establish a plan for opportunity registration • Use the Opportunity Entry Template and the Opportunity Validation Template to gather the required information to assist in creation of complete and validated opportunities • Will registration be centralized or distributed? Determine who in your organization will be responsible for entering & updating opportunity records • Communicate with your employees the importance of not discussing opportunities with others until they’ve been submitted and approved in GPP • Communicate with your employees the importance of registering opportunities in a timely manner to qualify for ‘Identify” and “Sell” fees • Review Online Education and simulation to become familiar with Siebel navigation. Be sure to “Save”! • Consider compensation • Since fees will be paid quarterly after the sale, determine effect on your internal incentive and compensation plan. • Determine how/if you’ll reward your sales reps for opportunity registration since it is required to receive SVI incentives • Understand program changes • SVI replaces ICSF and TCI. Develop plan to register existing opportunities into GPP • No changes to VAP or Passport fulfillment; BP can participate in SVI, VAP & Passport license resell. Software Value Incentive

41. Maximizing BP SVI Earnings Potential • To meet the requirements to earn SVI fees, a Business Partner should have a process in place to enter validated opportunities and to provide documentation as proof of involvement. • To minimize the risk of losing SVI fees, the Business Partners must adhere to the program rules on dates, deadlines, and required documentation. • To fully leverage the SVI program Business Partners must identify and sell the opportunity. • For opportunity validation and to earn SVI fees, Business Partners need to have certifications in the brands they intend to sell. (This requirement is waived for 2006, but BP should have plans in place to achieve desired certifications by end of year.) • Opportunities must be registered & submitted for SVI validation at least thirty days prior to IBM sales order date in order to be eligible for SVI fees. (This requirement will be waived in April 2006 for first thirty days of implementation.) • By following the documented processes & requirements when submitting opportunities; Business Partners will speed the validation process and maximize their potential to earn SVI fees. BPs should not expect exceptions to be made to the documented processes of the Software Value Incentive! Software Value Incentive

42. Key Dates • March 23 - Think!Thursday • March 27-31 - Lunch & Learn, ask the experts • April 3 - SVI enrollment begins • April 10 - SVI opportunity registration begins • March 31 - TCI ends • March 15 - Last ICSF lead accepted • March 30 - Last order date for ICSF Software Value Incentive

43. Questions?? Software Value Incentive