IBM SWG Channel Programs Update
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- Candace Bradford
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1 Maroš Vrábel IBM Software Group Business Partner sales , BP product overview, IBM Bratislava mobil: IBM SWG Channel Programs Update
2 Agenda IBM SWG Channel strategy SVP 2.0 Industry authorization SWVN migration into SVP
3 Thank You! Outstanding Success in 2010 Software Value Plus 5 consecutive quarters of General Business revenue growth 20%+ growth in Software Value Incentive (SVI) revenue 1 Double Digit Application Specific License (ASL) revenue growth 3 1. Footnote: SVI FY actuals are preliminary based on 4Q forecast 2011 IBM Corporation
4 IBM s Growth Strategy Growth Markets $29 billion opportunity 1 Analytics $20 billion opportunity 1 Cloud $181 billion opportunity 2 Smarter Planet $66 billion opportunity 3 Software is expected to contribute nearly half of IBM s profits by Source: IBM Market Insights GMV 2H10 2. Source: IBM Market Insights Cloud Opportunity Phase 2 Assessment, Sept Source: IBM Investor Day, May IBM Corporation
5 IBM s Software Group Strategy Software Will Help Deliver The 2015 Roadmap SWG SWG Priorities Investing in High Growth Initiatives (Examples: Business Analytics, BPM, Master Data Management, Information Integration, Cloud, Social Business) Increase Industry & Solution Focus Client demand: Customers are willing to pay a premium for a vendor with industryspecific expertise 1 Accelerate Future Acquisition Integration IBM expects to invest $20B in the next 5 years as part of the Acquisition strategy Source: IDC, 2009 Vendor Report Card: Customers Grade Vendors on Industry-Specific Expertise 02/10, Doc # Source: Sam Palmisano at 2010 New York Stockholders Meeting 2011 IBM Corporation
6 Software Business Partner Strategy Be BOLD Enable Engage Earn IBM Corporation
7 BOLD Growth Requires Skills ENABLE ENGAGE EARN Industry Products 36% more profit on middleware 2 Aligns with IBM s growth strategy $123B Market Opportunity 1 Skills Cross Capabilities 76% IT spending is on solutions 1 Acquisitions Fast deployment of new capabilities Appliances Bundled solutions offer rapid-timeto-value 7 1. Source: IBM Market Insights, 2H10 GMV Industry Fcst: Constant Currency IMF 09FX; Served SWG MW 2. Source: 2009 IBM Software BP profitability study 2011 IBM Corporation
8 Software Value Plus ENABLE ENGAGE EARN Software ValueNet and SVP-Authorized come together May 1, 2011 Software Value Plus Open Portfolio Authorized Portfolio Primarily Midmarket Solutions Product InfoSphere & Optim Product Groups in Authorized Lotus Messaging and Collaboration in Authorized Solutions Industry Capability 8 SVP Compliance review begins March, IBM Corporation
9 SVP Industry Authorization ENABLE ENGAGE EARN Initiative for highly industry skilled software resellers & integrators SVP Industry Authorization Requirements Benefits Skills Industry Solutions Board Review Financial Incentive: 15% to 20% more 2 Marketing Industry Framework Assets & Training 9 $123B Market Opportunity 1 Momentum 4X increase in industry mastery tests passed Act now for fast start in 2011! 1. Source: IBM Market Insights, 2H10 GMV Industry Fcst: Constant Currency IMF 09FX; Served SWG MW Note : Available in countries where SVP Authorization has been implemented 2. Additional incentive: Comparison of fees between SVI only and SVI with Industry Authorization 2011 IBM Corporation
10 Cross Capabilities ENABLE ENGAGE EARN Security Authorization $23B Security opportunity by Cloud Authorization $181B market opportunity Social Business Authorization $2B Social Business software market size in Capability Authorization Benefits Authorization Mark Additional SVI incentives: 15% to 20% more 3 Lead passing priority Additional Capability Authorizations under consideration Business Process Management Information Integration Master Data Management Business Analytics Enterprise Content Management Specific announcements when available 1. Source: Market Intelligence, SWG Market Analysis, 2H10 GSV Source: IDC, Determining the Value of Social Business ROI: Myths, Facts, and Potentially High Returns, Nov 2010 Doc # IBM Corporation 3. Additional incentive: Comparison of fees between SVI only and SVI with Capability Authorization
11 ENABLE ENGAGE EARN World Class Marketing Support 40% Enhancements in co-marketing investment Small Deal Lead Passing Business Partner Locator Tool Smarter Planet Investment IBM Corporation
12 Broadest Portfolio in the Industry! Q1 Sales Plays ENABLE ENGAGE EARN Transform Your Business with Social Software Integrated Data Management - Information Governance Business Analytics Land-and-Expand Seeding Promotion Industry Solution ECM, Smarter Commerce, Enterprise Marketing Management JAZZ Integration - Collaborative Application Lifecycle Management (CALM) Data Reduction and Storage Management Transformation Achieve Greater Business Agility with Business Process Management 12 Click on each link to see the sales play information 2011 IBM Corporation
13 ENABLE ENGAGE EARN It Takes an Ecosystem: Partnering with Partners Expand your market: Find the right partner to partner with! Face to face Partnering with Partners Events Lotusphere2011 Pulse2011 Impact2011 Innovate2011 InformationOnDemand IBM Corporation
14 High Value Revenue ENABLE ENGAGE EARN What is it? Revenue driven by your skills in business and technology Why does it matter? Customers want solutions, not products Increased follow on business Stronger connection with IBM sales and technical teams How do you engage? Software Value Incentive for large enterprise, general business and mid market Application Specific License Business Partner led model Business Partner small deals <50K General Business Subscription & Software Renewals IBM Corporation
15 ENABLE ENGAGE EARN Up to Double (2X) SVI Competitive Incentive More opportunities to WIN! 3%-20% Incremental Payout Opportunity for Approved Deals! $$$$$$ Lotus vs. Microsoft Competitive Displacements WS Portal, IBM Accelerators WS Portal, Mashup Center, Lotus Notes Domino, Domino Express, Lotus SameTime, Lotus Quickr and Connections Rational vs. HP Competitive Displacements AppScan Oracle Competitive Displacements Tivoli, Information Management, Business Analytics, Lotus, WebSphere and Rational IBM Software Competitive Sales Plays on PartnerWorld IBM Corporation
16 ENABLE ENGAGE EARN New Streamlined Incentive Structure 2010 Multiple programs and processes Software Value Incentive 2011 One offering across Software Group Software Value Incentive VAP moves into SVI Value Advantage Plus SVI Payment Process Commercial accounts: Fees Government accounts: Extra Discounts Value Advantage Plus for Government IBM Corporation
17 Project V ENABLE ENGAGE EARN A new end-to-end model to drive small deal opportunities 35 Offerings Enablement Incentives IBM Software s small deals opportunity is planned to grow by $7B over next five years 1 Small deals in growth markets growing 57% faster than worldwide Source: EIW, SWG Market Insights Pipeline Analysis 2011 IBM Corporation
18 ENABLE ENGAGE EARN Enhanced Capabilities in Key Growth Areas Accelerating into SVP and SVI Information all in one place Business Partner acquisition portal ibm.com/partnerworld/acquisitions Q1 Examples Value Proposition Appliances: Cloud, virtual & physical pre-configured out of box solutions Appliance built on System X, lowest total cost of ownership, fast query performance Real-time control of globally distributed desktop, mobile and server PC infrastructures Call to Action Leverage existing WebSphere skills; get certified on Cast Iron Develop complementary IM and BA skills, certs Get certified on BigFix and Tivoli How to Get Started Cast Iron Sales Kit Contact your IM rep for transition program details BigFix partner sales kit IBM Corporation
19 ENABLE ENGAGE EARN Appliances & Workload Optimized Systems Expand Skills to Sell Appliances are forecasted to grow at 36% CAGR from led by Netezza/Smart Analytics 1 Skills in Expand and Sell these Appliances! WebSphere core Cast Iron IBM Information Archive Tivoli Storage StoreWIZ Storage InfoSphere or Cognos Netezza Content Management IBM Power Hardware IBM Information Archive Rational Power Appliances Source: SWG MI, IDC World wide Software Appliance IBM Corporation
20 SVP 2.0
21 Software Value Plus: 2.0 ENABLE ENGAGE EARN Single Model for Software Group Software Value Plus Open Product Portfolio Authorized Product Portfolio Primarily Midmarket Solutions Product Solutions Industry Capability SVP Remarketer Types: Value Added Reseller Solution Provider Government Reseller IBM Corporation
22 ENABLE ENGAGE EARN What s new? What s changing? Software ValueNet and Software Value Plus Authorization come together Software Value Incentive (SVI) - New Solution rewards: 1. Technology 2. Industry 3. Capability Value Advantage Plus (VAP) moves to SVI Solution reward Value Advantage Plus for Government moves under SVI process IBM Corporation
23 ENABLE ENGAGE EARN Software ValueNet and Software Value Plus Authorization come together SVP 2.0 Model: Enrollment: Consistent process and consistent criteria Three Remarketer Types: Value Added Reseller Solution Provider Government Reseller Incentive: SVI: All Product Groups IBM Corporation
24 ENABLE ENGAGE EARN Software ValueNet and Software Value Plus Authorization come together SVP 2.0 Model: Pricing: Passport Advantage End User (banded) Discount: Based on SVP Authorization model Distribution Model: Authorized Product Groups follows the distribution model of the country Authorized or Open Renewals: Renewal orders are allowed if Business Partner is authorized for at least one Product Group on the order in Authorized Distribution countries IBM Corporation
25 ENABLE ENGAGE EARN Software ValueNet and Software Value Plus Authorized come together SVP 2.0 Incentives: SVI: All Product Groups eligible, same payments/rules as now Value Advantage Plus moves to SVI Solution Incentive: Payment method: Fee in Commercial accounts, extra discount in Gov t accounts Includes: Industry and Capability Solutions Enhanced SVI Solution rewards Requires SVP Industry or Capability Authorization IBM Corporation
26 New Incentive Structure ENABLE ENGAGE EARN 2010 Multiple programs and processes 2011 One offering across SWG SVI Value Advantage Plus Value Advantage Plus for Government SVI SVI Solution Incentive: Replaces VAP initiative New: Industry and Capability Solutions SVI Payment Process: Commercial accounts: Fees Government accounts: Extra Discount IBM Corporation
27 ENABLE ENGAGE EARN Software Value Incentive (SVI) - New Solution rewards: 1. Technology 2. Industry 3. Capability Rewards value added repeatable solution sales 27 Same transaction rules as Value Advantage Plus today: Approved offering evaluated and approved before use Transaction value add ratio 20% Business Partner must contribute at least 20% of the total value of transaction (IBM SW + BP Solution) Reward: 15% in IA and GB LE, 20% in MM Same as today Mutually exclusive with SVI Sell Fee Same as today and if government account, mutually exclusive with ID/Sell Rewards: Technology: IA - 15% GB LE - 15% GB MM - 20% Industry / Capability: IA - 20% GB LE - 25% GB MM - 30% 2011 IBM Corporation
28 ENABLE ENGAGE EARN Value Advantage Plus (VAP) moves to SVI Solution reward Value Advantage Plus for Government moves under SVI process VAP to SVI: Provides one overall process for Sell & ID and Solution incentives Provides Solution reward for influencers VAP for Government moves to SVI process: Consolidates agreements/processes simplifies agreements Requires specific government experience same as today Reminder: Commercial accounts Fee payment, resell & influence Government accounts Extra discount, resell only IBM Corporation
29 SWVN transition into SVP IBM Corporation
30 Software Value Plus - Today ENABLE ENGAGE EARN Software Value Plus Open Portfolio Authorized Portfolio Primarily Midmarket Solutions SVP Authorized NEW InfoSphere, Optim Product Groups now part of SVP Authorized SVN FileNet Cognos IBM Corporation
31 Software Value Plus 2.0 ENABLE ENGAGE EARN Software ValueNet and SVP-Authorized come together May 1, 2011 Software Value Plus Open Portfolio Authorized Portfolio Primarily Midmarket Solutions Product Solutions Industry Capability SVP Remarketer Types: 31 Value Added Reseller Solution Provider Government Reseller 2011 IBM Corporation
32 Convergence Elements Relationship Types: VAR, Sol. Provider, ISV, Services Provider, plus Support Provider offering Renewal: Must be authorized, no or smaller discount % Approved Business Plan Participation Criteria: Varies by portfolio; can require Certifications, references, sales demo, net new leads, trained sales resource & MAA Approved Solution required for Sol. Provider type VAP: solution for InfoSphere only SVI: restricted to IBM fulfilled varies by GEO Support Provider: Sub-licensing model General Business Rebate & BPLM SWVN SVP Authorized Relationship Types: Remarketer & Gov t Reseller New Lic. VAD Dis Renewal: Authorized for any renewal product in PO, same discount as New Lic. Participation Criteria: SVI or VAP participation, value add revenue percentage 10% rule VAP: solution & VAP for Gov t Sales SVI General Business Rebate & BPLM Relationship Types: VAR, Sol. Provider & Gov t Reseller Renewal: Authorized for any renewal product in PO, same discount as New Lic. Participation Criteria: 2 tech certs, 1 sales cert & value add revenue percentage General Business Rebate: eligible if SVP Authorized Current PW Partner Plan on file SVP 2.0 Offerings: Support Provider: Sub-licensing & PPA BPLM Solution incentive: Industry incentive Cross-Brand Capability Authorization SVI fee for commercial accounts, rebate for gov t
33 Make Sure Your Company is READY Infosphere and Optim partners should have accepted, or signed the SVP agreement. Infosphere and Optim partners, have you joined SVI? Created a Partner Plan? Filenet and Cognos partners will be required to migrate to the SVP contract by April 30, 2011 Creation of a PW Partner Plan must be done by April 30, 2011 Join SVI as it will help you earn more margin now
34 ISVs and Service Providers What type of relationship do you want with IBM? Have ability to have access to IBM software for compatibility testing? Acquire PW Software Value Package Be able to resell or influence a service offering you have developed? Apply for VAP (Infosphere and Optim BPs only) or as a Technology Partner in SVP 2.0 Join SVI as it will help you earn more margin now as a reseller or influencer
35 Leverage Program Incentives Base margin for resale General Business Rebates Support Provider margin Software Value Incentive Solution Incentives Leverage all the pieces of the IBM Software Value Plus Program to maximize profits
36 Industry Authorization
37 Leverage Program Incentives Business Partners improve their profitability by participating in SVP 2.0 Incentives: SVI Industry Authorization Capability Authorization Security Business Process Management Information Integration Master Data Management Business Analytics Enterprise Content Management Technology Authorization Support Provider Margin still applies
38 We are in the business of applying technology to solve business problems. Transportation Government Retail
39 Building Smarter Solutions Financial Services Retail Transportation Over many client engagements, patterns of common component use emerge
40 IBM Industry Frameworks 13 industry-specific Frameworks deliver technology in an industry context, enabling better business outcomes. Framework Travel and Transportation Insurance Banking Financial Markets Retail Energy and Utilities Government Network Centric Operations Service Provider Delivery Environment Media Enterprise Health Integration Integrated Information Product and Service Business Benefit Increase revenue per seat or hotel room through reservation system modernization Increase insurance underwriter productivity Renovate lending, mortgage, deposit and other core processing systems Integrate support for front-, middle-, and back-office processes Increase accuracy of promotions by targeting offers to the right customers Accelerate deployment of smart grids Avoid social service overpayments through a single view of the citizen Enable all service branches to share common applications Integrate new services with fulfillment, assurance, billing and care systems Improve management and distribution of digital assets Track assets, patients and staff to improve quality of care and operations Reduce exploration risk and cost faster time-to-oil Reduce inventory, improve availability and delivery capacity
41 Example of Industry Framework structure Each Framework Offers Projects Based on Desired Business Outcome Framework Government Industry Framework Domains Safety and Security Tax & Revenue Mgt Social Services & Soc. Security Metro. Transport & Roads Integrated Urban Infrastructure Think BIG! Set the strategic vision Project Areas Projects Integrated Border Management Advance Passenger Analysis Trusted Identity Intelligent Forms Processing Single View Start Small! Build Incremental value 41
42 Example of Industry Framework Retail Framework Customer Insight Single View of Customer Social Retailing Marketing and Customer Management IT Systems and Operations Retail Data Warehouse PCI Compliance and Security Management Store and Channels Performance Retail Store Integration POS and Self Service Product Tracking Loss Prevention Store Planning Multi-channel ecommerce Cross Channel Integration PIM for ecommerce Supply Chain Performance Supply Chain Optimization Vendor Management Trade Fund Management Store and Channels Supply Chain Integration Optimization Analytics Collaboration Security Resiliency Merchandising and Product Management Business and Finance Administration Financial Performance Financial Analytics Planning, Budgeting and Forecasting Financial Consolidation Human Capital Management Enterprise Asset Management Energy Performance Management Merchandise Performance Product Information Management New Product Introduction Merchandise Planning Market Basket Analysis Promotion Planning and Execution 2011 IBM Corporation
43 Customers want Industry Skills & Solutions Business Partners that: Know their industry Understand their language Can solve industry-specific business problems Have expertise beyond just product, customer size Source: IBM Market Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 65% of customers are willing to pay a premium for a vendor with industry-specific expertise = Business Opportunity! Source: IDC, 2009 Vendor Report Card: Customers Grade Vendors on Industry-Specific Expertise 02/10, Doc #
44 Software Value Plus IBM Software Business Partners Program Software Value Plus Open Portfolio Authorized Portfolio Primarily Midmarket Solutions Product Solutions Industry Capability 44
45 SVP Industry Authorization An Initiative for highly industry skilled software resellers & integrators SVP Industry Authorization * Requirements Benefits Skills Financial Incentive: 15% to 20% more** Industry Solutions Board Review Marketing Industry Framework Assets & Training 45 * Note : Available in countries where SVP Authorization has been implemented ** Additional incentive: Comparison of fees between SVI only and SVI with Industry Authorization
46 SVP Industry Authorization - Requirements Industry Authorization Requirements SVP Authorized Skills Industry Solutions & References Board Review
47 SVP Authorization Requirement Industry Authorization SVP Authorized Must have signed SVP BP Agreement Must be SVP Authorized in product groups included in the solution SVP Authorized Requirements Skills Industry Solutions & References Board Review Software Value Plus
48 Industry Skills Requirement Industry Authorization Industry Skills 2 Industry Solution Mastery Tests Know relevant IBM Industry Framework & how your solution fits (discussed in Board Review) Requirements SVP Authorized Skills Industry Solutions & References Board Review Industry Training & Tests:
49 Get Industry Enabled Today Industry Sales Education Industry virtual summit Training and Certifications Midmarket resources - Discover opportunities & sell midmarket industry solutions Industry Sales Plays Coming soon Industry Frameworks Leverage IBM Industry Frameworks & Assets to accelerate creation of industry-specific solutions developerworks: Industry-specific technical information IBM Innovation Centers - training and 1-1 guidance from building to selling your solution Momentum 4X increase in industry mastery tests passed
50 Industry Solution Requirement Industry Solution Can be a Services Practice or Application Aligned to IBM Framework / Strategy : For Applications: must be validated by the Industry Framework Validation process, For Service Practices: must implement part of Industry Framework or extend it BP must contribute significant value add to the solution IBM software must constitute the majority of the middleware Industry Authorization Requirements SVP Authorized Skills Industry Solutions & References Board Review Entered in IBM Global Solutions Directory Examples: A Commerce application under the Retail Store and Channels Framework Domain A Business Integration practice to support government Tax and Revenue Mgmt A Business Analytics practice that solves problems from the Banking Customer Care & Insight Domain Global Solutions Directory IBM Industry Frameworks
51 References Requirement Industry References Entered in IBM Global Solutions Directory or Customer Reference Database Must be verified (not necessarily public) Number of References required: 3 in North America & the European Union 2 elsewhere Can be different solutions for the same industry Industry Authorization Requirements SVP Authorized Skills Industry Solutions & References Board Review Different implementations at 1 customer are separate references Up to 3 years old Global Solutions Directory Customer Reference Database
52 Board Review Requirement Criteria Evaluated by the Board: 1. Solution must be Industry-specific Industry Authorization 2. Solution Alignment to Industry Framework / Strategy 3. Industry Leadership documented by Industry Papers, Journals, Industry Conference Presentations, Industry Awards, Industry Organization memberships, Industry Blogs, Industry Conference booths, External Industry Certifications, Recognition by Industry Analysts, Conference Booths Requirements SVP Authorized Skills Industry Solutions & References Board Review Participants: Worldwide Software Business Partners Industry Sales Executive Worldwide Software Industry Executive Geography Software Industry Solution Sales Leader Geography Software Partners Sales Executive Geography Software Partners Technical Leader
53 SVP Industry Authorization - Benefits An initiative for highly industry skilled software resellers & integrators SVP Industry Authorization Benefits SVI Financial Incentive Marketing Industry Framework Assets & Training
54 Financial Incentives Industry Authorization Benefits SVI Financial Incentive Marketing Industry Framework Assets & Training Earn more on Industry Solution Sales! Rich Transaction incentive More than VAP! Can combine with SVI ID fee* Earn when you sell your solution No requirement to fulfill IBM software (applicable only to Commercial Accounts, not Gov t) Simple claiming process Commercial & Government customers * To earn SVI identification fee, a partner must meet terms and conditions of IBM Software Value Incentive
55 Financial Incentives - Commercial Customers (fees) I & A Customer GB LE Customer GB MM Customer Product Solution Product Solution Product Solution SVI Identification 5% 5% 10% 10% 10% 10% Sell 5% 10% 10% SVI Solution Technology (VAP) 15% 15% 20% Industry or Capability or or or 20% 25% 30% Total 10% 20% 20% 25% 20% 30% Industry or Capability or or or 25% 35% 40% Plus normal channel discounts & rebates Note: All Asia Pacific GB customers are treated as GB LE customers in this incentive.
56 Financial Incentives Government Customers (discounts) I & A Customer GB LE Customer GB MM Customer Product Solution Product Solution Product Solution SVI Identification 15% 15% 20% Sell SVI Solution Technology (VAP) 15% 15% 20% Industry or Capability or or or 20% 25% 30% Total 15% 15% 15% 15% 20% 20% Industry or Capability or or or 20% 25% 30% Plus normal channel discounts & rebates Note: All Asia Pacific GB customers are treated as GB LE customers in this incentive.
57 Marketing Benefits Generate New Opportunities! Industry Authorization Benefits SVI Financial Incentive Marketing Industry Framework Assets & Training Authorized SVP Industry mark* - Distinguishes you from competition Incremental co-marketing funds - Generate new leads Joint Go-to Market planning with Industry Sales - Improved teaming, execution Higher Lead Passing Priority - Business Partner Locator - Lead Passing Decision Engine * Requires additional license agreement
58 Solution Development Benefits Accelerate Solution Development & Implementation Industry Authorization Benefits SVI Financial Incentive Marketing Industry Framework Assets & Training Access to IBM Industry Frameworks & Assets* Leverage previous successful implementations & reuse assets* Start small grow / enrich your solutions * Require a License Agreement Asset Types Data models Process models Requirements models Technical Accelerators Cognos Blueprints Research Assets Sales Enablement Assets Technical Enablement Assets
59 Industry Authorization Eligibility & Process BP Applies for SVP Industry Authorization Board Review & Approval Solution (s) are registered BP is SVP Industry Authorized 2 Industry Mastery Tests Alignment w/swg Industry Framework / Strategy Each Solution is assigned an ID Authorized for: Influence Resell References (2 outside NA & EU) Industry Leadership Each Solution specifies Product Groups it may pull. BP is paid on Products sold with the solution. Industry Solution (s) (Specifying associated Product Groups) Pre-validation of requirements prior to board review BP must be certified in each Product Group included in the Solution Future up-sells are also eligible Fees for Commercial customers Instant Rebate for Government customers
60 Call to Action Next Steps Prepare for SVP Industry Authorization: Learn about IBM s Industry Strategy, Frameworks & Sales Materials Pass Industry Mastery Tests Register Industry Solutions & References Be active in industry conferences, forums, etc.. Apply for SVP Industry Authorization!
61 Success in 2011 BE BOLD ENABLE Best Products Skills Development Comprehensive Sales Plays ENGAGE Access to Experts Increased Lead Passing Deployment Support EARN More Incentives Multiple Models Simplified Processes IBM Corporation
62 Thank you! IBM Corporation
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