AUTHORIZATION TO SELL IBM HARDWARE MAINTENANCE AND IBM SOFTWARE MAINTENANCE SERVICES & MAINTENANCE MANAGEMENT SERVICES FOR GENERAL BUSINESS PROGRAM

Transcription

1 AUTHORIZATION TO SELL IBM HARDWARE MAINTENANCE AND IBM SOFTWARE MAINTENANCE SERVICES & MAINTENANCE MANAGEMENT SERVICES FOR GENERAL BUSINESS PROGRAM

2 Table of Contents SECTION SUBJECT PAGE PART I Authorization to Sell IBM Hardware Maintenance and IBM Software Maintenance Services 1 Definitions 3 2 Group Classification & Requirements: Maintenance/Services 4 3 Sweep 4 4 IBM Power Systems 5 5 IBM System z 6 6 IBM Point of Sale (POS) 7 7 IBM System x 7 8 IBM System Storage 7 9 IBM ServicePac vs. IBM ServiceElite 7 10 Selling Competing Maintenance on IBM Products 8 11 Renewals 8 12 Maintenance Used Equipment Replacement Business Partner Guidelines 10 PART II Maintenance Management Services (MMS) for General Business (GB) Program 1 MMS for GB VAE Changes to MMS for GB Program 11 2 History 12 3 Program Benefits and Advantages 14 4 High-end IBM System Storage 16 5 Determining a Customer s General Business Status 19 6 Program Participation Requirements 19 7 Applying for Participation in the MMS for GB Program 21 8 Assistance on the MMS for GB Program 21 2

3 PART I Authorization to Sell IBM Hardware Maintenance and IBM Software Maintenance Services Significant changes to text supporting the announcement effective January 2, 2013, are identified in red: Section 1 Definitions Qualified IBM Hardware Sale of a server or MES model/processor upgrade that is acquired new from IBM or an IBM Business Partner -- Systems Distributor. Qualified IBM Hardware (QIH) must still be in an available status. If the QIH is withdrawn from marketing, the sale to an end-user customer must be prior to the effective date of the withdrawal. Qualified IBM Hardware must remain in productive use and be utilized at an end-user location (customer establishment). QIH consists of: IBM System z (server or MES model/processor upgrade) IBM Power Systems (server or MES model/processor upgrade), including System i/system p, except p505/510 Presence Through the sale of Qualified IBM Hardware with a hardware-approved VAE (if applicable), a Business Partner establishes a footprint in the customer establishment. Sweep Sweep is a provision, based on the sale of qualifying hardware in an end-user customer establishment, that allows Business Partners to include on an IBM ServiceElite Agreement maintenance and services on uncovered systems/machines in that customer establishment. Unlike hardware sales, the sweep authorization includes maintenance or services on systems which the Business Partner may not be approved to sell on their Profile. Sweep applies to either new transactions or renewals of IBM HWMA or IBM SWMA. In order for Business Partner sales of Qualified IBM Hardware (servers or MES model/processor upgrades) to serve as the basis for sweep, the install date in IBM records must be at least three months prior to the Maintenance Agreement start date. This applies to Qualified IBM Hardware installed by IBM (IBI) or classified as customer set up (CSU). Uncovered systems or machines Systems or machines which are not under warranty nor covered under a maintenance agreement. Customer establishment The customer establishment is the specific street address, city and state where qualifying hardware has been sold and is in productive use. 3

4 Section 2 Group Classification & Requirements: Maintenance/Services Q2.1 Did IBM modify the previous Groups and requirements to sell IBM HWMA and IBM SWMA resulting from the removal of the customer value requirement from IBM Power Systems? What other changes have occurred within the Groups in 2012? A2.1 Yes. Effective January 23, 2012, Group classifications for selling maintenance and services were modified somewhat, including new definitions. In April, 2012, IBM PureFlex System and IBM PowerLinux products were added to Groups 2 and 4 (now in Group 3): Group Classification for Maintenance and Services GROUP 1 IBM System z IBM Power Systems (includes i /p, but excludes p505/p510) GROUP 2 IBM System p 505/510 only IBM PureFlex System x86/power IBM PowerLinux IBM BladeCenters (includes IBM POWER processor-based BladeCenter servers) GROUP 3 IBM System x (excludes IBM POWER processor-based BladeCenter servers and IBM PureFlex System x86/power) IBM PureFlex System x86 IBM System Storage Requirement for Authorization to Sell IBM HWMA and IBM SWMA Requires the Sale of Qualified IBM Hardware Requires the Sale of Qualified IBM Hardware IBM HW in Group 2 Requires NO Prior Hardware Sale IBM HW in Group 3 Requires NO Prior Hardware Sale Notes: (1) The Authorization to sell IBM HWMA and IBM SWMA applies to new transactions or renewals. (2) ServicePacs for maintenance/services may be sold without prior hardware sales. (3) Maintenance may be sold without prior hardware sales on any eligible OEM (non-ibm) products. (4) Effective July 3, 2012, consistent with the removal of the Value Added Enhancement (VAE) requirement on IBM System z, IBM Global Technology Services is modifying the Maintenance Authorization, and will no longer require a hardware-approved VAE on the sale of IBM System z. Exceptions will be provided if the Business Partner provided written notification for an August 3, 2012, effective date. This modification will be reflected in the August 2012 IBM Business Partner Exhibit, Service Offerings Table. Section 3 Sweep Q3.1 Can you provide more information and the guidelines for utilizing sweep? A3.1 The IBM sweep authorization includes maintenance or services on uncovered systems or machines you may not be approved to sell on your Business Partner Profile, and accommodates customer requests to place all machines in an establishment on a single maintenance or services agreement. Uncovered systems or machines are defined as those that are not under warranty nor covered under a maintenance agreement. Sweep applies to new transactions or renewals of IBM HWMA or IBM SWMA. Q3.2 What are the new requirements for sweep? A3.2 Effective August 1, 2012, in order for Business Partner sales of Qualified IBM Hardware (servers or MES model/processor upgrades) to serve as the basis for sweep, the install date in IBM records must be at least three months prior to the Maintenance Agreement start date. This applies to Qualified IBM Hardware installed by IBM (IBI) or classified as customer set up (CSU). Q3.3 Business Partner A has had a maintenance contract with the end-user customer for many years. During that time they sold the customer three servers in one of the customer establishments. Are they still authorized to sell the maintenance? A3.3 Yes, under the Renewal section there is text addressing incumbency, provided their qualifying hardware, and any hardware-approved VAE or customer value, if required, remain utilized at the customer establishment. 4

5 a Business Partner who is currently the incumbent on the existing IBM maintenance agreement in the customer establishment, provided there was no post-compliance finding against that Business Partner on the previous agreement, Q3.4 Using the example above, Business Partner B sold a new qualifying Power Systems server in the same customer establishment. The server was installed in IBM records on March 1, Will Business Partner B be eligible to participate in the customer s contract renewal effective September 1, 2012, using the sweep authorization? A3.4 Yes, since Business Partner B s sale of Qualified IBM Hardware (QIH) was installed in IBM records on March 1, 2012, they clearly met the new three-month period installation requirement for sweep; i.e. Business Partner B s system was installed for a total of five months. If, however, Business Partner B s QIH was installed in IBM records on August 1, 2012, they would not be able to meet the three-month period installation requirement for sweep until November 1, Section 4 IBM Power Systems Q4.1 Can you explain how the removal of the customer value requirement on IBM Power Systems (includes IBM System i and IBM System p ) affected maintenance and services? A4.1 Consistent with removal of the customer value requirement on Power Systems, IBM Global Technology Services removed the customer value requirement from its Authorization to Sell IBM Hardware Maintenance (HWMA) and IBM Software Maintenance (SWMA), effective January 23, Instead, the Authorization refers to Qualified IBM Hardware (QIH) as the basis for selling IBM HWMA and SWMA. Q4.2 Did removal of the customer value requirement change the approach to management of maintenance and services activities? A4.2 Removal of the customer value requirement had no impact on the current management of maintenance and services nor the review process which includes: Accessing the customer s inventory for the entire enterprise, Sorting records by customer establishment to identify Qualified IBM Hardware sold by Business Partners, Reviewing machine type/models to ensure Qualified IBM Hardware is in productive use, and Determining if there are any maintenance/services contracts in place, including expiration dates Q4.3 How did the removal of the customer value requirement on Power Systems affect the previous Power Systems sales with VAE or customer value? A4.3 There is no impact, provided the hardware, and VAE or customer value, are still in productive and are being utilized in the customer establishment. Q4.4 A Business Partner sold a Power Systems server to a new customer. Is the Business Partner authorized to sell to IBM HWMA on that hardware? A4.4 Yes, the Business Partner can sell a Warranty Service Upgrade and post warranty maintenance on the Power Systems server through a ServiceElite Agreement. Q4.5 The new customer described above has requested the Business Partner also include on the ServiceElite Agreement other hardware in the same customer establishment that the Business Partner did not sell. The hardware is in Group 1. Is the Business Partner authorized to sell to IBM HWMA on the other hardware? 5

6 A4.5 Yes, provided the IBM Power Systems server is new and meets the requirements of Qualified IBM Hardware and remains in productive use and is utilized in the customer establishment. See Section 3 for more information relating to the sweep authorization. Q4.6 If there is no impact to the hardware status when a VAE or customer value requirement is removed, can previous sales of these products continue to be used as the basis for a maintenance agreement sweep during the upcoming renewal or a maintenance consolidation? A4.6 Yes, the marketing requirements remain in effect on previous hardware sales. Business Partners must retain all records to validate the original sale was with VAE or customer value. Previous hardware sales with VAE or customer value must remain in productive use and be utilized in the customer establishment. Business Partners may use previously eligible sales as the basis to sell IBM maintenance and services on other products within the customer establishment that they may not have sold. Section 5 IBM System z Q5.1 What is the status of the VAE requirement on IBM System z maintenance? A5.1 Effective July 3, 2012, consistent with the removal of the Value Added Enhancement (VAE) requirement on IBM System z, IBM Global Technology Services is modifying the Maintenance Authorization, and will no longer require a hardware-approved VAE on the sale of IBM System z. Exceptions will be provided if the Business Partner provided written notification for an August 3, 2012, effective date. Instead, the Authorization refers to Qualified IBM Hardware (QIH) as the basis for selling IBM maintenance on System z. Q5.2 How did the removal of the VAE requirement on sales of new System z affect the previous System z maintenance sales with VAE? A5.2 There is no impact. System z hardware previously sold with a hardware-approved VAE will remain in effect as long as they remain in productive use and are being utilized in the customer establishment. Q5.3 A Business Partner will be selling a new System z server in a single end-user customer establishment for installation in September Can they sell maintenance on other System z and Power Systems servers that they did not sell in that customer establishment? A5.3 After July 3, 2012, the previous VAE requirement no longer applied to System z, unless the Business Partner notified IBM, and an exception was provided for an August 3, 2012, effective date. Consequently, if a Business Partner is installing a new System z server at a customer establishment in September 2012, they have met Qualified IBM Hardware requirement for sweep and may sell IBM maintenance on other uncovered systems that they may not have sold within the customer establishment. The ability to sweep applies to new transactions or renewals. Q5.4 Business Partner A previously sold a System z, with a hardware-approved VAE. Their customer s ServiceElite Agreement will expire within several months. However, the customer now wants to work with Business Partner B, so ordered a qualifying MES model/processor upgrade from them for the System z. Did Business Partner A lose their qualifying footprint and authorization to sell IBM HWMA and SWMA due to the processor upgrade? A5.4 Business Partner A doesn t lose their footprint in the customer establishment provided (1) there was no Serial Number change to the qualifying System z resulting from the MES model/processor upgrade, and (2) the system and hardware-approved VAE, that was a requirement at the time Business Partner A sold the system, remains in productive use and is utilized in the customer establishment. 6

7 Section 6 IBM Point of Sale (POS) Q6.1 Can you provide information on the status of the announcement regarding the sale of its Retail Store Solutions Division on Point of Sale (POS) hardware, including the timing for the transition to the acquiring firm? A6.1 On April 17, IBM announced that it entered into an agreement with Toshiba TEC Corporation to sell its Retail Store Solutions Division. To prepare for the acquisition, Toshiba created a new subsidiary, Toshiba Global Commerce Solutions (TGCS). The first phase of the transition is effective August 1, Q6.2 Where can Business Partners obtain information necessary for our firm to conduct business with TGCS following the transition? A6.2 Several documents were previously distributed to Business Partners that provide this information. They have been attached to this Maintenance Authorization announcement for your convenience: (1) IBM Channel News dated July 23, 2012 (2) Toshiba Global Commerce Solutions Presentation dated August 1, 2012 (3) Toshiba Sales Enablement Transition Q&A dated July 20, 2012 Section 7 IBM System x Q7.1 An authorized IBM Business Partner has a new customer, though they have not sold the customer any IBM hardware to date. Can the Business Partner sell maintenance on IBM System x hardware sold by another Business Partner? A7.1 Yes, since any Business Partner can sell maintenance on System x that is uncovered. No prior hardware sale is required. Q7.2 A Business Partner (Reseller) approved for only System x and System Storage sold a new System x server (Group 3) to a customer who has a Power Systems server (Group 1) in that customer establishment. The Power Systems server was sold by an IBM Business Partner (Solution Provider). Is the Reseller authorized to sell IBM HWMA or IBM SWMA on the Power Systems server in that customer establishment? A7.2 No, since the Reseller is not authorized to sell hardware in Group 1, they are not authorized to sell IBM HWMA or IBM SWMA on the Power Systems server. Section 8 IBM System Storage Q8.1 A Business Partner has a customer in which they have sold high-end IBM System Storage machines in one of three customer establishments. Can they sell maintenance on System Storage hardware in the other customer establishments where they have not sold any System Storage machines? A8.1 Yes, since no prior hardware sale is required to sell maintenance on any IBM System Storage machine, Business Partners may sell maintenance on uncovered hardware across the enterprise. Section 9 IBM ServicePac vs. IBM ServiceElite Q9.1 What are the contract vehicles for IBM maintenance/services, and the fundamental differences and benefits of each? 7

8 A9.1 Information on IBM Maintenance and Services contract vehicles is provided below: IBM ServicePac Part numbered, highly packaged for lower-end IBM hardware products. May be preferred service contract for open distribution Lacks flexibility; ServicePac use is more limited: Warranty Upgrades, Post Warranty (maintenance), and IBM Software Support Services Maintenance may be sold without prior hardware sales through use of an IBM ServicePac Must be acquired through a Distributor. Requires subsequent reporting by the Distributor to IBM on the end-user customer. Lack of reporting prevents identification for follow-on ServicePac sale (renewal) IBM ServiceElite Agreement Less packaged, more configurable Offers greater flexibility and more services available through ServiceElite contracting, including the same services that can be contracted under a ServicePac For higher-end IBM products; i.e. System z, Power Systems (includes System i/system p), requires presence through Qualified IBM Hardware in a customer establishment. For lower-end IBM products; i.e. System x or System Storage, maintenance may be sold without a prior hardware sale Requires end-user customer signature, therefore easier to track and identify the renewal opportunity Section 10 Selling Competing Maintenance on IBM Products Q10.1 What is IBM s position on a Business Partner selling competing maintenance on IBM products? A10.1 The Authorization states: In the event IBM verifies that a Business Partner is offering competing maintenance on IBM products in customer accounts, IBM reserves the right to review and approve requests for Exception for Services received from other authorized Business Partners on existing and future IBM service opportunities in any enterprise. This ensures an IBM solution is presented and customers are offered service continuity. Q10.2 When these situations are uncovered, how should they be escalated to IBM for handling? A10.2 If it is determined that a Business Partner is offering competing maintenance on IBM products, information should be documented and forwarded to the Business Partner Distributor or the IBM Channel Sales Representative for review and additional action. Section 11 Renewals Q11.1 What are the guidelines for pursuing IBM renewals? A11.1 Business Partners may compete for IBM HWMA or IBM SWMA renewals, regardless of future changes to the hardware's VAE or customer value status, provided that the Qualified IBM Hardware sold and VAE or customer value, if required, remain in productive use and are being utilized: A Business Partner who has sold new Qualified IBM Hardware (includes system or MES model/processor upgrade), or A Business Partner who is currently the incumbent on an existing IBM HWMA or IBM SWMA agreement, provided there was no post-compliance finding against that Business Partner on the previous agreement, or In order to sell IBM Software Support Services or IBM SWMA, the sale of Qualified IBM Hardware is required: 8

9 - However, IBM Business Partners may compete for IBM Software Support Services or SWMA renewals without this requirement, and are eligible to initiate a new IBM ServiceElite agreement, 60 days after expiration if the previous SWMA contract was not renewed. - Furthermore, the sale of Qualified IBM Hardware is not required where at least 60% of the systems installed in a customer establishment have expired IBM Software Support Services or IBM SWMA. Business Partners will be required to obtain IBM Software Support Services and/or IBM SWMA data from customers or request an inventory report through the IBM COL STATCHECK process for systems within the customer establishment, in order to substantiate they have met all expiration requirements. Data must be maintained by Business Partners, in a spreadsheet format, and made available for IBM to review it in the event of an audit. After License Fees will apply where already assessed. ServicePacs new may be sold independent of prior hardware sale. Q11.2 A Business Partner discovered that their customer s IBM SWMA had been expired for more than six months, and After License Fees (ALFs) have been imposed. Can these fees be waived to alleviate a customer satisfaction issue? A11.2 ALFs will apply where already assessed, as these fees are necessary to bring the software to the current revision level. The Services organization is unable to waive ALFs which are imposed by another IBM brand. Q11.3 Through a customer inventory analysis it was determined that almost 75% of IBM SWMA expired four or more months ago within a customer establishment. Is a Business Partner authorized to initiate a new IBM transaction for the balance of expired systems prior to the 60- day expiration period, to prevent additional ALFs from being imposed? A11.3 Yes, the 60-day expiration period is not required where at least 60% of the systems installed in a customer establishment, which remain in productive use, have expired IBM Software Support Services or IBM SWMA. The following will apply: Business Partners will be required to obtain IBM Software Support Services and/or IBM SWMA data from customers or request an inventory report through the IBM COL STATCHECK process for systems within the customer establishment, in order to substantiate they have met all expiration requirements. Q11.4 Could you describe what documentation is necessary on expired IBM Software Support Services or SWMA, for any future IBM audits, including the format and data requirements? Also, what is the necessary data retention period? A11.4 In the event of an audit, IBM will request supporting documentation in spreadsheet format. At a minimum, the spreadsheet should contain the Customer Name, Customer Establishment: (Street Address, City, and State), IBM Product/Model, Serial No., IBM Software Support Services or SWMA, and the previous Expiration Date. Business Partners should retain data during the life of the Agreement. Q11.5 If a Business Partner is successful in executing a new transaction with the customer on previously expired IBM Software Support Services or SWMA, will they be permitted to quote these services in a subsequent renewal term? A11.5 Yes, provided the qualifying system used by the incumbent Business Partner is still in productive use and being utilized in the customer establishment. 9

10 Section 12 Maintenance on Used Equipment Q12.1 Will used systems available from IBM Global Financing (IGF) meet the definition of Qualified IBM Hardware for Business Partner eligibility to establish a footprint/presence for a maintenance agreement sweep? A12.1 The definition of Qualified IBM Hardware was modified effective April 24, 2012, to exclude used servers and MES model/processor upgrades acquired from IGF. Therefore, Business Partners can no longer use these servers or MES model/processor upgrades to establish a footprint/presence in the customer establishment for a maintenance agreement sweep. Removal from eligibility under the definition of Qualified IBM Hardware includes servers or MES model/processor upgrades available from IGF before the hardware is withdrawn from marketing as well as after the effective date of withdrawal. However, a server or MES model/processor upgrade that Business Partners previously acquired from IGF before the effective date of the April 2012 announcement, that was sold to/installed at the enduser customer establishment with a hardware-approved VAE or customer value, if required, will retain its status as a qualifying footprint/presence provided the server or MES model/processor upgrade and its VAE or customer value remain in productive use and are utilized. Q12.2 A customer has acquired a used server from a third party. A Solution Provider has not sold any qualifying hardware in the customer establishment. Is the Solution Provider authorized to sell IBM HWMA or IBM SWMA on this used machine? A12.2 No. Sales of used equipment obtained from sources other than IGF are not authorized under the IBM Business Partner Agreement. Instead, they are subject to third-party practices and sales for leasing companies, brokers, maintainers, and refurbishers. Thus, IBM HWMA and IBM SWMA services may only be sold on used IBM equipment, including used equipment obtained from IGF, when: it is swept based on the sale of Qualified IBM Hardware in a customer establishment, or an applicable IBM ServicePac is available for the used equipment. Section 13 Replacement Business Partner Guidelines Q13.1 How will how the IBM Replacement Business Partner Guidelines apply to maintenance and services transactions? A13.1 The following provides application of this announcement to maintenance and services: IBM Power Systems - A replacement Business Partner must have the currently accepted product certifications, as applicable, in the PartnerWorld Profiling System (PPS) to sell maintenance or services to end user customers whose original Business Partner is no longer in the IBM Business Partner Program or is authorized for the IBM product. To determine if the end user customer qualifies as a replacement Business Partner, and before proceeding with a maintenance agreement, contact Dawn Givens at dgivens@us.ibm.com or validation including that there is no conflict with active relationships in the account. IBM System z - The terms of IBM U.S. Business Partner Announcement Letter , dated July 3, 2012 will apply. Q13.2 Who selects the Replacement Business Partner? A13.2 The end-user customer selects the Replacement Business Partner. However the Replacement Business Partner must meet the terms stated in the Guidelines per A14.1 (Power Systems or System z), and as stated herein. 10

11 PART II Maintenance Management Services (MMS) for General Business (GB) Program (Applicable to Approved MMS for GB Program Participants) Section 1 MMS for GB VAE Changed to MMS for GB Program Q1.1 Why did IBM change from the MMS for GB VAE to the MMS for GB Program? A1.1 To reduce complexity and promote the ease of doing business, IBM reduced its number of VAEs in recent years. Consistent with this overall shift away from VAEs, IBM Global Technology Services withdrew its only VAE for Services, IBM Business Partner Announcement Letter , dated December 20, 2011, effective January 23, Coinciding with this withdrawal, the MMS for GB Program was announced effective January 23, Q1.2 How did this transition affect Business Partners already approved under the MMS for GB VAE, and those Business Partners with MMS for GB VAE Provisional approval? A1.2 There was no action required for nor impact to Business Partners already approved under the MMS for GB VAE. The approval will transfer into the MMS for GB Program. For Business Partners with only Provisional approval under the MMS for GB VAE, i.e. have not fulfilled their IBM Services Assistant Tool (ISAT) requirement/delegation or customer inventory database demo, these requirements will remain outstanding under the MMS for GB Program, unless fulfilled within their Provisional VAE approval period. Q1.3 Did the withdrawal of the MMS for GB VAE impact the application process and the VAE record on the Business Partner s Profile? A1.3 At the time of the MMS for GB VAE withdrawal, the previous IBM application process was suspended, including update to the Business Partner s Profile with this information. Instead, the IBM Services Channels Management organization combined records for Business Partners previously approved or with Provisional approval under the MMS for GB VAE, and added those to Business Partners approved under the new MMS for GB Program. These records are used in the event of a maintenance/services transaction audit where the MMS for GB Program served as the basis for a sweep. Q1.4 What conditions will govern for a new Business Partner application? A1.4 Business Partners requesting participation under the MMS for GB Program do so under new Program guidelines. Q1.5 What are the changes between the previous MMS for GB VAE and the new MMS for GB Program? A1.5 Differences are as follows: 11

12 PREVIOUS MMS for GB VAE Application submission Submits application via PartnerWorld Web site at: forms/formsaver/agreemain.jsp Complete/submit the IBM Application for the MMS for GB VAE. Provisional VAE approval Business Partners have six months from the Provisional VAE approval date to demonstrate to IBM secure Internet access to end-user maintenance inventories. All other firm eligibility requirements must be met at the time the VAE is requested for approval EFFECTIVE JANUARY 23, 2012 MMS for GB Program Application submission Send an to the IBM Services Channels Management Program Manager, Lezley Barth at In the subject line indicate: Application for Participation in the Maintenance Management Services for General Business Program Provide following information: Business Partner firm s Legal Name Business Partner firm s name shown in the Partner Profile System as their Doing-Business-As (DBA), if different from the Legal Name Street Address/City/State/Zip Code IBM Business Partner Relationship(s): - Solution Provider 1 - Solution Provider 2 - Other Business Partner firm s Distributor (if Applicable) Authorizing Executive s Name Authorizing Executive s Authorizing Executive s Telephone Number Key Contact s Name Key Contact s Key Contact s Telephone Number No Provisional Program approval available No Provisional Program Approval is available. All firm eligibility requirements must be met at the time of Program application request including successful demonstration of secure Internet access to end-user maintenance inventories Section 2 History Q2.1 What is the Program background, including naming changes since originally launched? A2.1 The IBM Business Partner Agreement provided a framework for this Services initiative. A summary of Announcements and content is provided below. Announcement / Date IBM Letter , dated April 20, 2004 IBM Letter , dated June 8, 2004 IBM Letter , dated April 18, 2006 Announcement Highlights Announced Maintenance Management Services (MMS) for Small and Medium Business (SMB) Value Added Enhancement (VAE). Changed ISAT training, face-to-face meeting requirements and provided additional clarification; extending the Program to other Business Partners beyond Distributors and Business Partners who acquire services from IBM. Stated SP2s can delegate the ISAT training prerequisite to their Distributor. Added text, A face-to-face meeting is required at a minimum of one establishment within the customer enterprise. Now extended to any Business Partner applying for this VAE. Added high-end storage (DS6000 and DS8000 ) as qualifying hardware. Removed the Remarketing Acceptance Program prerequisite. Changed the HWMA offering from 6942-PAC to A. 12

13 Announcement / Date IBM Letter , dated June 12, 2007 Announcement Highlights Expanded the definition of IBM System Storage products/product families shown below, herein referred to as high-end IBM System Storage: Category S2 - IBM System Storage N Series Category S3 - IBM System Storage DS8000 (previously announced) Category S7 - IBM Virtualization Engine Category S8 - IBM System Storage TS3000 Library Category S9 - IBM System Storage DS6000 (previously announced) IBM Letter , dated January 6, 2009 Changed presence requirement to 50%* of the establishments within an SMB end-user enterprise, to be eligible for sweep under this VAE. *Calculation for sweep of the entire enterprise includes only customer establishments where qualifying IBM Power Systems, IBM System i, IBM System p and IBM System z machines are being utilized. Customer establishments with IBM high-end System Storage will not be included in the calculation, since IBM high-end Storage is limited to sweep within the specific customer establishment only under this VAE. Clarified sweep provisions under this VAE by IBM platform/product: IBM Power Systems - sweep cross-enterprise (added) IBM System i - sweep cross-enterprise IBM System p - cross-enterprise IBM System z - cross-enterprise IBM high-end System Storage - sweep within the customer establishment only IBM Letter , dated May 12, 2009 IBM Letter , dated January 12, 2010, Effective Date: February 5, 2010 IBM Letter , dated April 6, 2010 IBM Letter , dated April 8, 2010 Specified Business Partners with multiple relationships must ensure the MMS for SMB VAE is managed through: (1) The relationship for which they are approved for the end user s installed servers, or (2) If qualifying products are all storage, through the relationship for the server to which the storage is attached. Clarified that Category 8 - IBM System Storage TS3000 Tape Library models only qualify. Expanded the scope of MMS for SMB VAE to include, in addition to SMB end users, other end-user enterprises for which IBM Business Partners receive approved Special Bid Pricing (Transaction Exception Process/TEP). Added machines to high end IBM System Storage and clarified the qualifications. Renamed the MMS for SMB VAE to Maintenance Management Services for General Business (GB). Replaced all previous Small and Medium Business (SMB) references to General Business (GB). Provided instructions on how to determine GB account eligibility. Added Software Maintenance and Software Support Services to eligible services. Added high-end IBM System Storage products: IBM XIV Storage System and IBM Scale Out Network Attached Storage. Added S4 in the conditional statement for high-end IBM System Storage Categories under the Eligible services heading. 13

14 Announcement / Date IBM Letter , dated February 8, 2011 IBM Letter , dated December 20, 2011, Effective Date: January 23, 2012 Announcement Highlights Replaced previous categories under high-end IBM System Storage : S2, S3, S4, S7, S8, and S9, with new System Storage categories: Midrange and Enterprise with identified eligible products. Added to eligible high-end IBM System Storage products: IBM Storwize V7000, Real-time Compression Appliance, IBM 2054 SAN Director (Cisco MDS 9500), IBM TotalStorage SAN Volume Controller. Clarified the model of IBM Virtualization Engine: TS7740. Removed IBM System Storage TS7650G Server and replaced it with the product family: IBM System Storage ProtecTIER. Removed from eligibility high-end IBM System Storage products withdrawn from marketing: IBM Enterprise Storage Server (ESS), IBM System Storage DS6000. Enhanced minimum VAE Solution requirements for face-to-face meetings. Withdrew the Maintenance Management Services for General Business Value Added Enhancement, and replaced it with Maintenance Management Services for General Business Program. Section 3 Program Benefits and Advantages Q3.1 Can you describe the objective of the MMS for GB Program? A3.1 The Program was designed to address customer requirements for an enterprise-wide agreement for all customer establishments. It also positions Business Partners to add value by assisting customers with management of their assets and maintenance contracts across the entire enterprise, enabling eligible machines to be covered with IBM Hardware Maintenance (HWMA), Software Maintenance (SWMA), and Software Support Services (SWS). Q3.2 What are the additional benefits for Business Partners participating in the Program? A3.2 By enabling an enterprise-wide agreement for HWMA, SWMA, and SWS, Business Partner participants in the MMS for GB Program can assist customers in consolidating asset management activities, and potentially reducing the number of maintenance contracts across a distributed environment. The results include: Improved end user customer satisfaction. Expanded Business Partner opportunity to increase revenue and margin from the sale of IBM maintenance. Increased revenue is possible from machines not currently on IBM maintenance discovered during Business Partner inventories reviews. These reviews can also reveal competitive machines eligible for IBM Maintenance Services or need for technology refresh. Q3.3 Are all end-user customer enterprises eligible under the Program? A3.3 No. As the name indicates, the Program applies to end-user customer enterprises that are General Business. However, Business Partners are able to expand the customer set to include other end user enterprises outside of GB provided the Business Partner: Is approved for the IBM Technical Support Services Sales Leadership Initiative, or Receives IBM-approved Special Bid Pricing/Transaction Exception Process (TEP) for the transaction. 14

15 See Part II, Section 5, for information on determining a firm s General Business status. Since a firm s General Business status is subject to change, it s important to retain a print screen in the contract file firm s then-current status if approved if planning to use the MMS for GB Program for an enterprisewide sweep. Q3.4 If an eligible Business Partner wishes to sell a enterprise-wide Maintenance Agreement, how would it differ under the MMS for GB Program vs. the standard Authorization to Sell IBM HWMA and IBM SWMA Services? A3.4 Before providing the differences, it s important to understand the definitions. See the customer establishment and presence on Page 3. The "customer establishment" term limits a Business Partner selling maintenance and services only to those end-user locations (specific street address, city and state) where it has Qualified IBM Hardware installed and being utilized/in productive use: IBM Power Systems server or MES model/processor upgrade IBM System i server or MES model/processor upgrade IBM System p server or MES model/processor upgrade (except p505/510) IBM System z server or MES model/processor upgrade There are two fundamental benefits when selling maintenance under the MMS for GB Program vs. standard IBM Authorization. (See right-hand column): Selling Maintenance Under the Authorization to Sell IBM HWMA and IBM SWMA An IBM Business Partner requires presence in 100% of customer establishments where there is Qualified IBM Hardware installed and in productive use. Without this presence the Business Partner cannot sweep other uncovered systems or machines within customer establishments that they did not sell. Uncovered systems or machines are defined as those which are not under warranty nor covered under a maintenance agreement. The sweep authorization, based on 100% presence, applies to new transactions and renewals of IBM HWMA, SWMA and SWS. Unlike hardware sales, the sweep authorization includes maintenance or services for systems you may not be approved to sell on your Business Partner Profile. Selling Maintenance Under The MMS for GB Program (See Note Below) (1) An eligible Business Partner requires presence in only 50% of customer establishments where there is Qualified IBM Hardware installed and in productive use within a GB end-user enterprise, or other end-user enterprises for which Business Partners receive an approved TEP. Without this presence the Business Partner cannot sweep other uncovered systems or machines within the customer enterprise that they did not sell. The sweep authorization, based on 50% presence, applies to new transactions and renewals of IBM HWMA, SWMA and SWS. Unlike hardware sales, the sweep authorization includes maintenance or services for systems you may not be approved to sell on your Business Partner Profile. (2) An additional capability under the MMS for GB Program is the sale of high-end IBM System Storage* within a customer establishment qualifying for presence. The sale of high-end IBM System Storage does not contribute to the calculation for meeting the 50% presence requirement. Effective August 1, 2012, the Maintenance Management Services for General Business Program is being modified. Business Partner hardware sales that serve as the basis for sweep must have an install date in IBM records at least three months prior to the Maintenance Agreement start date as follows: (1) Qualified IBM Hardware (servers or MES model/ processor upgrades), may be eligible to serve as the basis for an enterprise-wide sweep, or 15

16 (2) specified "high-end" IBM System Storage products or product families, may be eligible to serve as the basis for a customer-establishment sweep. Q3.5 Can you provide a quick reference table on the 50% presence requirement, based on the number of customer establishments with Qualified IBM Hardware*? A3.5 The following table illustrates the 50% presence requirement and the treatment of rounding: No. of Customer Establishments 50% Presence Requirement * etc. * Rounded up when total Customer Establishments are odd-numbered Note: Customer establishments with hardware within Group 2 or Group 3, peripherals, non-ibm OEM products, etc. are not included in the total number of customer establishments upon which the 50% calculation is based. Q3.6 Are there new benefits added effective January 2, 2013? A3.6 IBM Business Partners approved for the IBM Technical Support Services Sales Leadership Initiative will automatically participate in the MMS for GB Program, providing them the ability to sweep if they have installed Qualified IBM Hardware in only 50% of customer establishments. Q3.7 Are there any other requirements to enroll in the MMS for GB Program for Business Partners that are NOT current participants? A3.7 No, there are no changes or other requirements for MMS for GB as part of the announcement modification dated January 2, MMS for GB requirements are: ISAT training, which is generally delegated to the Distributor, and The Business Partner s demonstration of their Internet-based interactive customer inventory Consequently, if a Business Partner has fulfilled the Internet-based interactive customer inventory demo requirement and is approved for the IBM Technical Support Services Sales Leadership Initiative, it also satisfies the requirement under the MMS for GB Program. IBM will automatically add the Business Partner to the list of MMS for GB participants. \ Section 4 High-end IBM System Storage Q4.1 What high-end IBM System Storage products or product families are included under the MMS for GB Program? A4.1 Sales of the following products or product families acquired directly from IBM or from an IBM Business Partner -- Systems Distributor are eligible for sweep of a customer establishment only under the MMS for GB Program: 16

17 IBM System Storage products or product families identified below, herein referred to as high-end IBM System Storage*: Midrange IBM System Storage DS5000 Series IBM Storwize V7000 Real-time Compression Appliance IBM System Storage N Series IBM System Storage TS3000 Library (Note: Only Tape Library models qualify for presence.) Storwize IBM Storwize V7000 Enterprise IBM 2054 SAN Director (Cisco MDS 9500) IBM TotalStorage SAN Volume Controller IBM System Storage DS8000 IBM XIV Storage System IBM Scale Out Network Attached Storage IBM Virtualization Engine TS7740 IBM System Storage ProtecTIER IBM System Storage VTF Mainframe The following is applicable to all products within high-end IBM System Storage Categories Midrange, Storwize, and Enterprise: (1) Only a high-end IBM System Storage footprint will be permitted under the definition of presence under the MMS for GB. As such, MES or upgrades are excluded under the high-end IBM System Storage definition. (2) Software in the above Categories cannot be used for presence under MMS for GB Program. *The basis of calculation under the MMS for GB for sweep of the entire enterprise includes only customer establishments where qualifying Power Systems, System i, System p and System z machines are being utilized by the customer. Customer establishments with high-end IBM System Storage will not be included in the calculation, since high-end IBM System Storage is limited to sweep within the specific customer establishment only under this Program. Q4.2 When IBM expanded the definition for presence within high-end IBM System Storage, what was the basis for the product selection in expanding the storage definition? A4.2 High-end IBM System Storage products chosen require IBM Business Partners to have unique product or opportunity development certifications, or opportunity registration. Products have also been selected that represent a significant financial investment by the client. Additionally, as new high-end IBM Storage products show opportunity or growth in the marketplace, they may be added as eligible. With installations of these products, IBM Business Partners are presented with new maintenance and services opportunities through a customer-establishment sweep. Q4.3 There are other high-end IBM System Storage servers that were not included in the current list. Why aren t they eligible for presence under the MMS for GB Program? A4.3 The intent of the storage selection was focus on sales of newer IBM System Storage systems. It s likely the high-end IBM System Storage servers not shown have been withdrawn from marketing. Q4.4 Would an upgrade by Business Partner A to defined high-end IBM System Storage machines previously installed by Business Partner B qualify as presence within a customer establishment for sweep? 17

18 A4.4 No. Upgrades to high-end IBM System Storage machines included in this Program are not eligible for presence and sweep. Q4.5 A customer has eight customer establishments. There is a single Business Partner with Qualified IBM Hardware (three Power Systems servers) installed and in productive use in three separate customer establishments. They also recently sold an IBM XIV Storage System in another one of the customer establishments. Under this Program, can Business Partner initiate a single ServiceElite Agreement for sweep of the entire customer enterprise? A4.5 No. The IBM XIV machine (under our maintenance and services high-end IBM System Storage), is not included in the calculation for an enterprise-wide sweep under MMS for GB Program. Also, three out of eight customer establishments do not meet the required 50% for sweep of the entire customer enterprise. However, the presence of each server and the IBM XIV Storage System does permit sweep of all uncovered hardware within each of those customer establishments, i.e. four customer establishments total. The Business Partner could, of course, include on a ServiceElite Agreement other uncovered System x or System Storage machine across the enterprise. Q4.6 Business Partner A installed a Power Systems server in the only customer establishment within the enterprise that has Power Systems, System i, System p or System z. IBM System x and IBM System Storage is installed in other customer establishments within the enterprise (no higher-end product is installed in these locations). At this time there is no other Business Partner presence with qualifying hardware. Can Business Partner A initiate a single ServiceElite Agreement for the entire enterprise? A4.6 Yes. Business Partner A has qualifying hardware in 100% of customer establishments that is in productive use. Since only 50% presence is required under the MMS for GB Program, these qualifying sales entitles the Business Partner to sweep other uncovered higher-end products across the enterprise. Of course, products such as System x and System Storage have no prior hardware sale requirement and may be swept as well. Q4.7 Expanding on the previous question, if Business Partner A later sells a Power Systems server for installation in new customer establishment (#2), and Business Partner B sells a Power Systems server for installation in another new customer establishment (#3), can Business Partner A and/or Business Partner B initiate a single ServiceElite Agreement across the entire enterprise? A4.7 The customer has a total of three customer establishments with Qualified IBM Hardware installed: Business Partner A has Qualified IBM Hardware in two of three customer establishments = 67%. This meets the minimum 50% requirement and qualifies for an enterprise-wide sweep under the MMS for GB Program. Business Partner B has Qualified IBM Hardware in only one of three customer establishments = 33%. This does not meet the minimum 50% requirement for sweep under the MMS for GB Program. Note: If any existing maintenance/services agreements are cancelled before the scheduled expiration date, the end user may be subject to early termination adjustment charges, which must be paid in advance of entitlement of a new agreement. Q4.8 Can a Business Partner that has satisfied presence under this Program (met the 50% requirement) and used the sweep provision to add machines that were sold by IBM or another Business Partner, also include IBM Software Maintenance (SWMA) or IBM Software Support Services on the enterprise-wide ServiceElite Agreement? A4.8 Yes. Business Partners may include on the enterprise-wide agreement any service that can be ordered via ServiceElite such as SWMA and SWS, including in customer establishments where they did not sell IBM hardware. 18

19 Section 5 Determining a Customer s General Business Status Q5.1 How can a Business Partner determine if the customer enterprise is within General Business (GB)? A5.1 To review the end-user customer s designation to assess eligibility under the MMS for GB Program, Business Partners may access the General Business query tool located on the PartnerWorld Web site at: - Indicate the customer country - Input the customer s name and address (1) Midmarket and Large Enterprise are subcategories within General Business. If the General Business query tool indicates "No," then it is not General Business, Midmarket or Large Enterprise. (2) Designations may change within the General Business query tool from "Yes" to "No." Business Partners using the MMS for GB Program may be requested to provide evidence of the then-current end-user customer GB status. A screen print should be retained to illustrate this GB designation at the time of the customer quotation. Section 6 Program Participation Requirements Q6.1 What are the MMS for GB participation requirements for Business Partners? A6.1 There are two fundamental Business Partner eligibility requirements: (1) A minimum of two people trained on the most current release of the IBM ServicesAssistant Tool (ISAT), as evidenced by their attendance at a regularly scheduled ISAT training class. Solution Providers who acquire services from IBM Distributors may, at their option, delegate this prerequisite to their Distributor. (2) Business Partners requesting MMS for GB Program participation must be able to demonstrate to IBM secure Internet-based customer access to their maintenance inventories. Fulfilling this requirement must be completed PRIOR to a Business Partner s using this Program in a maintenance/services transaction. Q6.2 What is the benefit of Business Partners having ISAT background? A6.2 Having ISAT knowledge/skills supports an environment where Business Partners can be responsive to customer questions, and better perform as the customer interface for maintenance management coordination. Q6.3 Where do Business Partners obtain information on ISAT, including training available, if the ISAT requirement is not delegated to a Distributor? A6.3 Contact the IBM Global Services Channel Sales Representative or your IBM Distributor. ISAT enrollment information can also be found at the following IBM website (PartnerWorld password and ID are required): Q6.4 Can IBM provide a description of the customer database demonstration? 19