Tivoli Systems Introduces Value-Based Pricing for Tivoli Products A Simpler and More Flexible Pricing Structure

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1 Software Announcement February 15, 2000 Tivoli Systems Introduces Value-Based Pricing for Tivoli Products A Simpler and More Flexible Pricing Structure Overview Today s extraordinary pace of change in business and technology makes it harder than ever to manage infrastructure costs and plan for the future. All too often, traditional IT management software pricing compounds this problem by imposing added costs on platform shifts and other initiatives essential to your strategic arsenal as you work to keep your organization competitive. Tivoli Systems is proud to introduce a new enterprise-wide technology management pricing model to help you deal with these issues. It is called Tivoli Value-Based Pricing, and it delivers exactly what its name promises: better alignment between technology management costs and the value actually delivered to your organization. Through a new licensing structure, and new cost metrics, Tivoli Value-Based Pricing enables significantly greater long-term return on your technology management investment while allowing you to manage your infrastructure with more freedom and flexibility than ever before. Since the introduction of 10 Flex pricing in 1996, Tivoli has been widely acknowledged as the industry leader in flexible, platform-neutral pricing for enterprise systems management. Value-Based Pricing takes this leadership to a new level, giving companies of all sizes better means of leveraging and protecting their IT investments across virtually every distributed environment. Tivoli Value-Based Pricing creates a foundation for freer, more productive and more cost-effective partnering between Tivoli and your organization. For years, Tivoli has been out in front of the industry on key technology issues that affect your ability to compete. This pricing model, which reflects extensive input from customers, Business Partners and industry analysts, is no less revolutionary in the benefits it provides. What s New A new licensing structure based on Tivoli Management Points, providing the industry s most flexible standard licensing option Intuitive metrics delivering clear cost-to-value Select Support provides first-of-its-kind value based on a pre-existing awareness of a customers unique business environments. A minimum purchase/installation of 40,000 renewable points of Tivoli product in aggregate is required to acquire this level of support. This offering provides: Onsite support as needed up to twice per year Initial review to assess a customer s environment and internal support structure Heightened call responsiveness based on level of severity Fast path to select engineers for severity 1 and 2 problems Proactive Tivoli management notification Account review and status which includes proactive recommendations and support Key Prerequisites Refer to individual announcements for specific product information. At a Glance Introducing Tivoli s Value-Based Pricing model for Tivoli Enterprise products. Through this new licensing structure, Tivoli Systems provides: Flexibility Because our licensing is based on what you manage rather than how you manage, you can optimize systems management without worrying about incurring incremental charges or violating license agreements. Simplicity The new model includes a simplified set of metrics that represents the size of the environment managed. Your systems management cost is predictable as your environment changes. Long-term value protection As long as the relative capacity of the environment you are managing is constant, you can freely change operating systems and solution design without incurring additional cost. This creates a layer of predictability that facilitates long-term business and technology planning. Planned Availability Dates February 18, Product Line April 7, 2000 Select Support Offering This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation

2 Description Tivoli Environment-Managed Pricing Model The value for many of the Tivoli Enterprise products is related to the size and complexity of the environment being managed by Tivoli. The environment-managed pricing model is based exclusively on what is being managed. For example, management capability for a certain sized environment is acquired for each Tivoli discipline required and you are free to implement any of the Tivoli Enterprise software components (Tivoli Management Region servers, gateways, or endpoints) in any quantity to best manage within the environment for which the discipline was acquired without cost implications. As architecture changes, the implementation can be altered as needed without necessarily affecting the licensing for the products acquired. This represents a significant change from the typical systems management licensing models which are based on purchasing the specific components and licensing them to specific systems. There are two basic sets of metrics in the environment-managed pricing model: 1. Client/Server Products These products include: Tivoli Software Distribution Tivoli Inventory Tivoli Application Management products Tivoli Secureway Manager products, and Tivoli Workload Scheduling products The pricing for these products is based on an evaluation of the environment being managed, not where specific components are running or how the solution is implemented. As such, a server is defined by its use in the environment, not its position in a Tivoli solution. Thus, all servers in an environment are priced as servers, offering the flexibility to serve Tivoli applications from any server in the enterprise without any change in cost. Further, these servers have been stratified to better correlate cost to value while offering a simple, scalable solution. In addition to traditional clients, other devices can be managed in a server/device model, including Personal Digital Assistant (PDA) and appliances. In this model, only those systems or devices actually managed require licensing. Distributed server tiers are defined by the machine, not operating system, based on installed processors. For RS/6000 Scalable POWERparallel Systems (RS/6000 SP ) and Sun Ultra systems and similar systems, the licensing is based on the number of processors in the frame, not per individual node or card. For clustered environments, the licensing is determined by the number of installed processors in each server in the cluster. Distributed servers can be considered in three general tiers. Low-end, departmental servers (Tier 1) Mainframe-class RS/6000 and Intel systems (Tier 3) Everything else (Tier 2) For those products with a distributed server component, the specific tier definitions are: Server 32 bit Intel (or compatible) systems Tier 1 with 4 or fewer processors installed Server RS/6000 systems with fewer than 24 Tier 2 processors installed (except as spelled out in Tier 3) Intel (or compatible) 64 bit systems with less than processors installed Intel (or compatible) 32 bit systems with 5 23 processors installed AS/400(R) servers Server Any distributed system with 24 Tier 3 or more processors installed All HP V Class Systems classes of servers with 14 plus processors installed 2. Networking Products NetView and related products scale best on Network Devices managed, including routers, switches, bridges, and hubs. The pricing metric Tivoli NetView and Tivoli Manager for Network Connectivity is tiers, switches, and routers, tiered as follows: Network Tier 1 Routers with 25 or less ports Switches with port density of 50 or less Ethernet ports Network Tier 2 Routers with ports Switches with port density of Ethernet ports Network Tier 3 Routers with 76+ ports Switches with port density of 101+ Ethernet ports All ATM, Frame Relay, and all other WAN backbone switches For Tivoli Manager for Network Hardware, the metric is network nodes, including routers, switches, hubs, and bridges. IT Business Application Products Pricing Model A few of Tivoli s products are used to support IT Business processes, including Service Desk and Decision Support. The value of these products scales based on the knowledge content they provide and the size of the staff they are supporting, measured in terms of users and knowledge modules. Tivoli Management Points With this new price offering, Tivoli introduces Tivoli Management Points. The intent is to provide investment protection as computing environments and management needs evolve. With this approach, all metrics for a given product are reflected in terms of points required. Thus, licensing is in terms of total points per product required to manage a given environment. As the environment changes, points can be redeployed as necessary as long as the total number of points required for that environment and product do not exceed the total authorized. Points are product specific and cannot be moved from one product to another. An example of how Tivoli points work follows

3 Step 1: Determine the products required. Step 2: Determine the size of the environment to be managed in terms of the metrics for the products required. For example, assume you have 100 servers and 5,000 clients broken down as follows: Customer Environment Size Product T1 Svrs T2 Svrs T3 Svrs Clients Sample ,000 Step 3: Multiply the Matrix from Step 1 by the Management Points Requirements Matrix to determine total number of points required. Management Points Requirement Matrix Product T1 Svrs T2 Svrs T3 Svrs Clients Sample ,100 1 Step 4: Acquire total number of Management Points required: (90*55+8*110+2*1,100+5,000*1)= 13,030 With 13,030 Management Points the Tivoli Enterprise solution can be designed and implemented for optimal efficiency, without concern over changing cost due to changing implementation. Truing Up Tivoli Systems has developed a Web-based customer tool, available to customers through their Tivoli Support contract, to make it easier to assess the points required for their environment. This tool is simple to use and allows you to not only determine whether you have points sufficient for your current environment, but also has the capability to do scenario planning as your environment changes. Year 2000 These products do not have date dependencies and are Year 2000 ready. Euro Currency These programs are not impacted by euro currency. Hardware and Software Support Services SmoothStart /Installation Services IBM SmoothStart or Installation Services will not be provided for these programs. Reference Information This announcement affects the pricing of the following previously announced Tivoli products. This list includes recent 1999 announcements, and other 1996 through 1998 announcements which provide an overall description of some Tivoli products. The Tivoli TME 10 Systems Management Family Provides Integrated Management for Applications, Databases, Networks, and Client/Server Systems Software Announcement , dated June 25, 1996 TME 10 Inventory Provides a Cross-Platform, Automated Approach to Inventory Management Software Announcement , dated September 10, 1996 TME 10 Security Management: A State-of-the-Art Security Management Product Software Announcement , dated February 11, 1997 TME 10 Module for Domino/Notes Manages Life Cycle of Notes Applications Software Announcement , dated March 25, 1997 TME 10 Management for Oracle, Sybase, Informix, and Microsoft SQL Server Databases Software Announcement , dated November 4, 1997 TME 10 Module for DB2 Provides Systems Management for DB2 Distributed Databases Software Announcement , dated November 4, 1997 Tivoli s Non-390 TME 10 Programs Now Licensed Under the IBM International Program License Agreement (IPLA) Software Announcement , dated February 24, 1998 Unison Maestro From Tivoli Systems and TME 10 Provide Job Scheduling for the TME Environment Software Announcement , dated February 24, 1998 TME 10 Module for Exchange Manages Collaborative Computing Software Announcement , dated March 24, 1998 Availability: Tivoli Manager for Informix Software Announcement , dated July 7, 1998 IBM Global Sign-On for Multiplatforms, Version 2.0 A Single Sign-On Solution for Use in Tivoli s Management Framework Environment Software Announcement , dated July 28, 1998 Tivoli Systems New Tivoli Management Framework and Applications Ease Deployment, Improve Maintainability and Go Multilingual Software Announcement , dated September 15, 1998 Tivoli Service Desk s Suite of Integrated Applications Improves Efficiency While Lowering Costs Software Announcement , dated September 15, 1998 Tivoli Decision Support Provides Comprehensive Data for Better IT Decision Making Software Announcement , dated October 27, 1998 Decision Support Guides Deliver Multi-Dimensional Analytical Capabilities Software Announcement , dated March 30, 1999 Tivoli Systems Introduces Extended Agent for Peoplesoft Software Announcement , dated March 30, 1999 Tivoli Management Framework and Applications Now Available in Five Additional Languages Software Announcement , dated April 20, 1999 Tivoli offers Solution Manager for Microsoft s Message Queue Server Software Announcement , dated April 29, 1999 Tivoli Data Protection for Workgroups offers Backup, Recovery and Disaster Recovery Capability that is Rapid and Easy to Use Software Announcement , dated June 1,

4 Tivoli Management Framework 3.6.1, Tivoli User Administration 3.6.1, and Tivoli Secureway Manager for OS/390 Connect your Enterprise Management Environment Software Announcement , dated July 6, 1999 Tivoli Service Desk for OS/390: Great Service Desk Platform Just Got Better Software Announcement , dated September 21, 1999 Tivoli Service Desk V6.0 A Transition to Proactive Service Delivery Software Announcement , dated September 21, 1999 Tivoli Manager for Network Hardware Streamlines Network Management Software Announcement , dated September 28, 1999 Trademarks Tivoli is a registered trademark of Tivoli Systems Inc. in the United States, other countries, or both. In Denmark, Tivoli is a trademark licensed from Kjobenhavns Sommer Tivoli A/S. SP and SmoothStart are trademarks of International Business Machines Corporation in the United States or other countries or both. RS/6000, POWERparallel, AS/400, NetView, MQSeries, DB2, and OS/390 are registered trademarks of International Business Machines Corporation in the United States or other countries or both. Microsoft is a trademark of Microsoft Corporation. TME 10 is a trademark of Tivoli Systems, Inc. in the United States or other countries or both. Domino and Notes are trademarks of Lotus Development Corporation. Approach is a registered trademark of Lotus Development Corporation. Other company, product, and service names may be trademarks or service marks of others

5 IBM US Announcement Supplemental Information February 15, 2000 Customer Financing IBM Global Financing offers attractive financing to credit-qualified commercial and government customers and Business Partners in more than 40 countries around the world. IBM Global Financing is provided by the IBM Credit Corporation in the United States. Offerings, rates, terms, and availability may vary by country. Contact your local IBM Global Financing organization. Country organizations are listed on the Web at: Orders for new licenses will be accepted now. Shipment will begin on the planned availability date. Ordering Information New Licensees New users of the program products below should specify one of the following: Foundation Technologies Type: 5698 Model: FRA Tivoli Management Framework Type: 5698 Model: SWD Tivoli Software Distribution Type: 5698 Model: INV Tivoli Inventory Type: 5698 Model: EMN Tivoli Distributed Monitoring Type: 5698 Model: RCL Tivoli Remote Control Type: 5698 Model: SEC Tivoli Secureway Manager Type: 5698 Model: UAD Tivoli Secureway User Administration Type: 5698 Model: GS2 Tivoli Secureway Global Sign-On Type: 5698 Model: GEM Tivoli Global Enterprise Manager Type: 5698 Model: EAS Tivoli Enterprise Console Type: 5698 Model: APM Tivoli Application Performance Management Type: 5698 Model: SPP Tivoli Server Performance Prediction Guide Application Management Type: 5698 Model: ASA Tivoli Manager for SAP R/3 Type: 5698 Model: PEO Tivoli Manager for PeopleSoft Type: 5698 Model: NOT Tivoli Manager for Domino Type: 5698 Model: EXC Tivoli Manager for Microsoft Exchange Type: 5698 Model: MQS Tivoli Manager for MQSeries Type: 5698 Model: MMQ Tivoli Manager for Microsoft Message Queue Server Type: 5698 Model: NSS Tivoli Manager for SuiteSpot Type: 5698 Model: MCI Tivoli Manager for MCIS Type: 5698 Model: ORA Tivoli Manager for Oracle Type: 5698 Model: MSS Tivoli Manager for Microsoft SQL Server Type: 5698 Model: SYB Tivoli Manager for Sybase Type: 5698 Model: DBT Tivoli Manager for DB2 Type: 5698 Model: INF Tivoli Manager for Informix Type: 5698 Model: TUX Tivoli Manager for BEA Tuxedo Type: 5698 Model: TRE Tivoli Manager for Retail Type: 5698 Model: TMS Tivoli Manager for OS/390 Workload Scheduling nd Output Management Type: 5698 Model: WKB Tivoli Type: 5698 Model: WSS Tivoli for SAP R/3 Type: 5698 Model: WSO Tivoli for Oracle Type: 5698 Model: WSB Tivoli BAAN This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation

6 Type: 5698 Model: WSP Tivoli for PeopleSoft Type: 5698 Model: WSN Tivoli for non-tivoli Environments Type: 5698 Model: DES Tivoli Output Manager Networking Type: 5698 Model: NVW Tivoli NetView Type: 5698 Model: FNC Tivoli Manager for Network Connectivity Type: 5698 Model: NHW Tivoli Manager for Network Hardware IT Business Applications Type: 5698 Model: TSD Tivoli Service Desk Type: 5698 Model: TPM Tivoli Problem Management Type: 5698 Model: TAM Tivoli Asset Management Type: 5698 Model: TCM Tivoli Change Management Type: 5698 Model: TDS Tivoli Decision Support Tivoli Management Points Terminology Definitions Tivoli Management Points are used to compute the license quantities and are program specific. Points cannot be transferred among separate products. Environment-Managed Model The environment-managed model is used to describe the new Tivoli price offering that separates licensing from architecture. In an environment-managed model the price is based on what is managed rather than the more traditional approach of pricing based on the number and type of product component. Thus, a server is defined as a server by its use in the customer s environment, not by its use within a Tivoli application. For example, all print and file servers for which a customer is using Tivoli Distributed Monitoring to track performance require points sufficient for those servers. Server A server is a computer system that provides services to one or more clients or other devices over a network. Examples include, but are not limited to, file servers, print servers, mail servers, database servers, application servers, and Web servers. A server is defined by its use in the customer s environment, not by its use in a Tivoli application. Tivoli servers are tiered as defined in the Tivoli Server Tier Exhibit. For distributed servers in a clustered environment, points requirements are based on the size of each server in the cluster, tiered as defined in the Tivoli Server Tier Exhibit. Tivoli Server Tier Exhibit Server 32 bit Intel (or compatible) systems Tier 1 with 4 or fewer processors installed Server RS/6000(R) systems with fewer than 24 Tier 2 processors installed (except as spelled out in Tier 3) Intel (or compatible) 64 bit systems with less than processors installed Intel (or compatible) 32 bit systems with 5 23 processors installed AS/400(R) servers Server Any distributed system with 24 or Tier 3 or more processors installed All HP V Class Systems classes of of servers with 14 plus processors installed Client A computer system or process that requests a service of another computer system that is typically referred to as a server. Multiple clients may share access to a common server. A client has some processing capability or is programmable to allow a user to do work. Examples include laptop computers, desktop computers, and desk side computers. Device A device is any non-client, non-server part of a network managed by a Tivoli application, including, but not limited to, point-of-sale (POS) terminals, Automated Teller Machines (ATMs), PalmPilots, and other pervasive devices. Network Node A network node includes routers, switches, hubs and bridges that contain a network management agent. In the Internet Protocol (IP), the managed node usually contains a Simple Network Management Protocol (SNMP) agent. A single node may contain any number of interfaces or ports. Port A port is the interface via which network devices (hubs, concentrators, repeaters, routers, and switches) are connected to a network through switches and routers

7 For Tivoli products which scale based on ports, the following Tivoli Network Device Tier Exhibit applies: Tivoli Network Device Tier Exhibit Network Tier 1 Routers with less than or equal to 25 ports Switches with port density of less than or equal to 50 Ethernet or Token Ring ports Network Tier 2 Routers with ports Switches with port density of Ethernet or Token Ring ports Network Tier 3 Routers with 76+ ports Switches with port density of 101+ Ethernet or Token Ring ports All ATM, Frame Relay, and all other WAN backbone switches Registered User A registered user is defined as anyone who is authorized to access a Tivoli program. Concurrent User Concurrent users are defined as the maximum number of users who access a Tivoli program at any one time. For Tivoli Service Desk, Tivoli Problem Management, Tivoli Change Management, and Tivoli Asset Management a concurrent user includes any user accessing the application with create/update authority. Application Server An application server is the computer system that provides services to one or more clients, servers, or other devices over a network and is defined by its use within the Tivoli application. For programs running on a distributed cluster of servers, points sufficient for an application server are required for each instance of the software rather than each individual server. RS/6000 Scalable POWERparallel Systems (RS/6000 SP ) An SP is any of the RS/6000 SP series of parallel computing servers. For Tivoli pricing, the SP is a Tier 2 server if it has fewer than or equal to 24 processors in aggregate in the system. For example, if a system has 2 nodes with 8 processors each (16 processors total), the system would be a Tier 2 server. As an alternate example, if the system has 3 nodes with 8 processors each (24 processors total), it would be a Tier 3 server. Cluster A group of distributed servers operated as a single image, generally running in serial. Each system in a cluster is priced as a server, with the appropriate tier as determined by the Tivoli Server Tier exhibit. Management Services Unit (MSU) An MSU is defined as millions of CPU service units per hour; the measure of capacity used to describe the computing power of the hardware processors on which S/390 software runs. Processor MSU values are determined by the hardware vendor, IBM, or Software Compatible Vendors (SCVs). Basic License: To order a basic license, specify the program number, feature number 9001 for asset registration, and the feature number of the desired distribution medium. Also, specify the one-time charge (OTC) feature number from the tables below in the quantity desired (maximum quantity of 250). Use the following table to order the program products listed below. Tivoli Management Points Program Number Program Name Qty 1 Qty 250 Foundation Technologies 5698-FRA Tivoli Management Framework SWD Tivoli Software Distribution INV Tivoli Inventory EMN Tivoli Distributed Monitoring RCL Tivoli Remote Control SEC Tivoli Secureway Manager UAD Tivoli Secureway User Administration GS2 Tivoli Secureway Global Sign-On GEM Tivoli Global Enterprise Manager EAS Tivoli Enterprise Console APM Tivoli Application Performance Management SPP Tivoli Server Performance Prediction Guide Application Management 5698-ASA Tivoli Manager for SAP R/ PEO Tivoli Manager for PeopleSoft NOT Tivoli Manager for Domino

8 Tivoli Management Points Product Number Product Name Qty 1 Qty EXC Tivoli Manager for MS Exchange MQS Tivoli Manager for MQSeries MMQ Tivoli Manager for Microsoft Message Queue Server 5698-NSS Tivoli Manager for SuiteSpot MCI Tivoli Manager for MCIS ORA Tivoli Manager for Oracle MSS Tivoli Manager for MS SQL Server SYB Tivoli Manager for Sybase DBT Tivoli Manager for DB INF Tivoli Manager for Informix TUX Tivoli Manager for BEA Tuxedo TRE Tivoli Manager for Retail TMS Tivoli Manager for OS/390 Source 390 Object Monitor Batch Object Monitor DB2 Object Monitor CICS Object Monitor IMS Object Monitor Storage Object Manager Workload Scheduling and Output Management 5698-WKB Tivoli WSS Tivoli for SAP R/ WSO Tivoli for Oracle WSB Tivoli for BAAN WSP Tivoli for PeopleSoft WSN Tivoli for non-tivoli Environments DES Tivoli Output Manager Networking 5698-NVW Tivoli NetView FNC Tivoli Manager for Network Connectivity NHW Tivoli Manager for Network Hardware IT Business Applications 5698-TSD Tivoli Service Desk TPM Tivoli Problem Management TAM Tivoli Asset Management TCM Tivoli Change Management TDS Tivoli Decision Support Application Server Points Registered User Points Tivoli Systems Support In addition to the introduction of the environment-managed pricing model, Tivoli Systems is renaming their current support offerings from Standard and Extended to Tivoli Standard Support and Tivoli Standard-24 Support respectively. The support provided under these offerings remains the same. For large enterprises needing a higher level of support, Tivoli Systems is also introducing a new offering: Tivoli Select Support. The additional support provided under this offering is outlined below. Although the first year of support is included in the product price, a No-Charge order must be placed using program number 5698-SPT specifying: feature number 9001 for asset registration and the appropriate First-Year Tivoli Standard Support No-Charge feature number. This 5698-SPT order establishes entitlement records worldwide. If a 5698-SPT order is not placed, the customer will not be entitled to support even during this first year of the license. Prior to the end of the first 12 months support period, customers will be notified of their support renewal options. Unless the customer notifies IBM/Tivoli to discontinue or alter the level of support currently being received, support will automatically be renewed for

9 annual billing at the same level as selected in the first year. Once the subsequent-year support feature numbers are in place, renewals are automatic and billed annually unless support is cancelled by the customer. Tivoli Systems offers a variety of support options in response to diverse customer requirements. The table below summarize these offerings. Standard Support Categories Standard 24 Select Support Coverage via Normal 7 x 24 7 x 24 Web, Phone, Fax, and e mail Bus Hrs Web Support Tools (TIPS, FAQs, Yes Yes Yes White papers, Tools, Patch downloads Maintenance and Upgrades Yes Yes Yes Support News Yes Yes Yes Escalation Process Yes Yes Yes Initial Tivoli Select Support No No Yes Review (one customer location and one review per contract) Heightened Responsiveness Severity 1 1 hour No No Yes Severity 2 2 hour No No Yes Severity 3 4 hour No No Yes Severity 4 4 hour No No Yes Fast Path to Tivoli Select No No Yes Level 2 Engineer Heightened Resolution Priority No No Yes Proactive Tivoli Management No No Yes Notification Onsite when Required No No Yes (two trips per year not to exceed six days in total) Tivoli Select Support review No No Quarterly and recommendations (customer to identify single point of control site) Minimum of 40,000 renewable No No Yes Tivoli Management points required in aggregate Note: Select Support will be available for purchase at announcement, but the elements unique to this level of support will not be available until April 7, Tivoli Standard Support This offering provides: Technical support via Web, telephone, fax, and during normal IBM/Tivoli business hours Monday through Friday, except local holidays Corrections (PTFs) or patches that fix substantial deviations of unmodified Tivoli products from the then-current code, publications, and/or informal documentation (that is, release notes and memos) Software product updates that are improvements, extensions, or other changes which IBM/Tivoli, at its discretion, deems to be reasonable Customer Self-Help Options available via Web 24x7 including: Support Procedures Maintenance renewal information and registration for access to support Product-Specific Support Pages Technical Documentation including FAQs, Quick Solution Hints and Tips, Product Certification Information, Release Notes, Installation Guides, Redbooks, White Papers, and Fix READMEs Knowledge Base Search engine providing answers to many technical questions; databases include APARs, FAQs and Fix READMEs Education and Training Support Services Databases allowing customers to download code fixes and report or update problems Links to Support Contacts providing the Tivoli Support phone number nearest the customer 2. Tivoli Standard-24 This offering provides: All components offered in Tivoli Standard Support In addition, Tivoli Standard-24 Support provides enhanced features including Technical support via Web, telephone, fax, and , 7x24 including holidays Off-shift and holiday support provided on Severity 1 issues only 3. Tivoli Select The Tivoli Select Support offering can be ordered at announcement, but the elements unique to the Select Support option will not be available until April 7, This offering provides: All components offered in Tivoli Standard-24 Support In addition, Tivoli Select provides enhanced features including: Initial Tivoli Select support review Heightened responsiveness Severity 1 1 hour Severity 2 2 hours Severity 3 4 hours Severity 4 4 hours Fast path to Tivoli Select Level-2 Engineers Heightened Resolution Priority Proactive Tivoli Management Notification Customer Initiated On-Site Support available up to twice per contract period Tivoli Select Support review and recommendations Support provided in English only A minimum purchase/installation of 40,000 renewable points of Tivoli products in aggregate is required to acquire this support option

10 Support Upgrade During the first year of a license, the customer may upgrade to the Tivoli Standard-24 or Tivoli Select Support option by ordering the applicable OTC feature number from the table below. The OTC feature numbers may be specified on the initial order or later via an MES during the first year only. Ordering this OTC feature will not result in an extension of the no-charge support period. In subsequent years, if a customer wants to upgrade to the Tivoli Standard-24 or Tivoli Select Support option, an MES order must be entered to discontinue the existing support option feature number and to add the feature number for the desired options. After an MES order is entered, the support will be renewed and billed annually at that support level unless support is cancelled by the customer SPT First-Year Support Options Use the following table to order Tivoli Management Points for Support (5698-SPT) for the program products listed below. The quantity of the billable feature number for support must be equal to the Tivoli Management Points for a licensed product. 1st Year Upgrade Upgrade Upgrade from from from 1st Year Standard 1st Year to 24 to 1st Year to Standard Select Select Support 24 Support Support Support Support No One-Time One-Time One-Time for Charge Charge Charge Charge Program Support for Feature Feature Feature Feature Number Program Name Number Number Number Number Foundation Technologies 5698-FRA 5698-SWD Management Framework Qty of Qty of Software Distribution Qty of Qty of INV Inventory Qty of Qty of EMN 5698-RCL 5698-SEC 5698-UAD 5698-GS GEM 5698-EAS 5698-APM 5698-SPP Distributed Monitoring Qty of Qty of Remote Control Qty of Qty of Security Management Qty of Qty of User Administration Qty of Qty of Global Sign-On Qty of Qty of Global Enterprise Mgr Qty of Qty of Enterprise Console Qty of Qty of Application Performance Management Qty of Qty of Server Performance Prediction Guide Qty of Qty of

11 1st Year Upgrade Upgrade Upgrade from from from 1st Year Standard 1st Year to 24 to 1st Year to Standard Select Select Support 24 Support Support Support Support No One-Time One-Time One-Time for Charge Charge Charge Charge Program Support for Feature Feature Feature Feature Number Program Name Number Number Number Number Application Management 5698-ASA Manager for SAP R/3 Qty of Qty of PEO Manager for PeopleSoft Qty of Qty of NOT Manager for Domino Qty of Qty of EXC Manager for MS Exchange Qty of Qty of MQS Manager for MQSeries Qty of Qty of MMQ Manager for Microsoft Message Queue Server Qty of Qty of NSS Manager for SuiteSpot Qty of Qty of MCI Manager for MCIS Qty of Qty of ORA Manager for Oracle Qty of Qty of MSS Manager for MS SQL Svr Qty of Qty of SYB Manager for Sybase Qty of Qty of DBT Manager for DB2 Qty of Qty of INF Manager for Informix Qty of Qty of TUX Manager for BEA Tuxedo Qty of Qty of TRE Manager for Retail Qty of Qty of TMS Manager for OS/390 Source 390 Object Monitor Qty of Qty of Batch Object Monitor Qty of Qty of

12 1st Year Upgrade Upgrade Upgrade from from from 1st Year Standard 1st Year to 24 to 1st Year to Standard Select Select Support 24 Support Support Support Support No One-Time One-Time One-Time for Charge Charge Charge Charge Program Support for Feature Feature Feature Feature Number Program Name Number Number Number Number DB2 Object Monitor Qty of Qty of CICS Object Monitor Qty of Qty of IMS Object Monitor Qty of Qty of Storage Object Mgr Qty of Qty of Workload Scheduling and Output Management 5698-WKB 5698-WSS 5698-WSO 5698-WSB 5698-WSP 5698-WSN 5698-DES Qty of Qty of for SAP R/3 Qty of Qty of for Oracle Qty of Qty of for BAAN Qty of Qty of for PeopleSoft Qty of Qty of for non-tivoli Environments Qty of Qty of Output Manager Qty of Qty of Networking 5698-NVW 5698-FNC 5698-NHW NetView Qty of Qty of Manager for Network Connectivity Qty of Qty of Manager for Network Hardware Qty of Qty of

13 1st Year Upgrade Upgrade Upgrade from from from 1st Year Standard 1st Year to 24 to 1st Year to Standard Select Select Support 24 Support Support Support Support No One-Time One-Time One-Time for Charge Charge Charge Charge Program Support for Feature Feature Feature Feature Number Program Name Number Number Number Number IT Business Applications 5698-TSD 5698-TPM 5698-TAM 5698-TCM 5698-TDS Service Desk Qty of Qty of Problem Management Qty of Qty of Asset Management Qty of Qty of Change Management Qty of Qty of Decision Support Application Svr Pnts Qty of Qty of Registered User Pnts Qty of Qty of SPT Subsequent Year Support Options Use the following table to order Tivoli Management Points for Support (5698-SPT) for the program products listed below. The quantity of the billable feature number for support must be equal to the Tivoli Management Points for a licensed product. Standard Standard Select Support 24 Support Support Support Annual Annual Annual for Charge Charge Charge Program Support for Feature Feature Feature Number Program Name Number Number Number Foundation Technologies 5698-FRA 5698-SWD Management Framework Qty of Qty of Software Distribution Qty of Qty of INV Inventory Qty of Qty of EMN 5698-RCL 5698-SEC 5698-UAD Distributed Monitoring Qty of Qty of Remote Control Qty of Qty of Security Management Qty of Qty of User Administration Qty of Qty of

14 Standard Standard Select Support 24 Support Support Support Annual Annual Annual for Charge Charge Charge Program Support for Feature Feature Feature Number Program Name Number Number Number 5698-GS GEM 5698-EAS 5698-APM 5698-SPP Global Sign-On Qty of Qty of Global Enterprise Manager Qty of Qty of Enterprise Console Qty of Qty of Application Performance Management Qty of Qty of Server Performance Prediction Guide Qty of Qty of Application Management 5698-ASA Manager for SAP R/3 Qty of Qty of PEO Manager for PeopleSoft Qty of Qty of NOT Manager for Domino Qty of Qty of EXC Manager for MS Exchange Qty of Qty of MQS Manager for MQSeries Qty of Qty of MMQ Manager for Microsoft Message Queue Server Qty of Qty of NSS Manager for SuiteSpot Qty of Qty of MCI Manager for MCIS Qty of Qty of ORA Manager for Oracle Qty of Qty of MSS Manager for MS SQL Server Qty of Qty of SYB Manager for Sybase Qty of Qty of DBT Manager for DB2 Qty of Qty of INF Manager for Informix Qty of Qty of TUX Manager for BEA Tuxedo Qty of Qty of TRE Manager for Retail Qty of Qty of

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16 Standard Standard Select Support 24 Support Support Support Annual Annual Annual for Charge Charge Charge Program Support for Feature Feature Feature Number Program Name Number Number Number 5698-TMS Manager for OS/390 Source 390 Object Monitor Qty of Qty of Batch Object Monitor Qty of Qty of DB2 Object Monitor Qty of Qty of CICS Object Monitor Qty of Qty of IMS Object Monitor Qty of Qty of Storage Object Manager Qty of Qty of Workload Scheduling and Output Management 5698-WKB 5698-WSS 5698-WSO 5698-WSB 5698-WSP 5698-WSN 5698-DES Qty of Qty of for SAP R/3 Qty of Qty of for Oracle Qty of Qty of for BAAN Qty of Qty of for PeopleSoft Qty of Qty of for non-tivoli Environments Qty of Qty of Output Manager Qty of Qty of Networking 5698-NVW 5698-FNC 5698-NHW NetView Qty of Qty of Manager for Network Connectivity Qty of Qty of Manager for Network Hardware Qty of Qty of

17 Standard Standard Select Support 24 Support Support Support Annual Annual Annual for Charge Charge Charge Program Support for Feature Feature Feature Number Program Name Number Number Number IT Business Applications 5698-TSD 5698-TPM 5698-TAM 5698-TCM 5698-TDS Service Desk Qty of Qty of Problem Management Qty of Qty of Asset Management Qty of Qty of Change Management Qty of Qty of Decision Support Application Server Points Qty of Qty of Registered User Points Qty of Qty of The Standard Support Option, Standard-24 Support Option, and Select Support Option are not transferable among the Tivoli Enterprise products. Support Option feature numbers must be ordered, if desired, for each licensed product. The quantity of the billable feature numbers for support must be equal to the Tivoli Management Points for a licensed product, if support is desired. Basic Machine-Readable Material Feature Number Distribution Medium Foundation Technologies 5698-FRA 5698-SWD Tivoli Management Framework Tivoli Software Distribution 5698 INV Tivoli Inventory 5698-EMN Tivoli Distributed Monitoring

18 Feature Number Distribution Medium 5698-RCL 5698-SEC 5698-UAD 5698-GS GEM 5698-EAS Tivoli Remote Control Tivoli Secureway Manager Tivoli Secureway User Administration Tivoli Secureway Global Sign-On Tivoli Global Enterprise Manager Tivoli Enterprise Console English Tape/CD French Tape/CD Brazilian Portuguese Tape/CD German Tape/CD Spanish Tape/CD Italian Tape/CD 5698-APM Tivoli Application Performance 5809 CD-ROM Management 5698-SPP Tivoli Server Performance 5809 CD-ROM Prediction Guide Application Management 5698-ASA Tivoli Manager for SAP R/ CD-ROM 5698-PEO Tivoli Manager for PeopleSoft 5809 CD-ROM 5698-NOT Tivoli Manager for Domino 5809 CD-ROM 5698-EXC Tivoli Manager for MS Exchange 5809 CD-ROM 5698-MQS Tivoli Manager for MQSeries 5809 CD-ROM 5698-MMQ Tivoli Manager for Microsoft Message Queue Server 5698-NSS Tivoli Manager for SuiteSpot 5809 CD-ROM 5698-MCI Tivoli Manager for MCIS 5809 CD-ROM 5698-ORA Tivoli Manager for Oracle 5809 CD-ROM 5698-MSS Tivoli Manager for MS SQL Server 5809 CD-ROM 5698-SYB Tivoli Manager for Sybase 5809 CD-ROM 5698-DBT Tivoli Manager for DB CD-ROM 5698-INF Tivoli Manager for Informix 5809 CD-ROM 5698-TUX Tivoli Manager for BEA Tuxedo 5809 CD-ROM 5698-TRE Tivoli Manager for Retail 5809 CD-ROM 5698-TMS Tivoli Manager for OS/ mm tape tape Workload Scheduling and Output Management 5698-WKB Tivoli 5809 CD-ROM 5698-WSS Tivoli 5809 CD-ROM for SAO R/ WSO Tivoli 5809 CD-ROM for Oracle

19 Feature Number Distribution Medium 5698-WSB Tivoli 5809 CD-ROM for BAAN 5698-WSP Tivoli 5809 CD-ROM for PeopleSoft 5698-WSN Tivoli 5809 CD-ROM non-tivoli Environments 5698-DES Tivoli Output Manager 5809 CD-ROM Networking 5698-NVW Tivoli NetView 5809 CD-ROM 5698-FNC Tivoli Manager for 5809 CD-ROM Network Connectivity 5698-NHW Tivoli Manager for 5809 CD-ROM Network Hardware IT Business Applications 5698-TSD Tivoli Service Desk 5698-TPM Tivoli Problem Management 5698-TAM Tivoli Asset Management 5698-TCM Tivoli Change Management 5698-TDS Tivoli Decision Support 5809 CD-ROM Customization Options: Select the appropriate feature numbers to customize your order to specify the delivery options desired. These features can be specified on the initial or MES orders. Example: If publications are not desired for the initial order, specify feature number 3470 to ship media only. For future updates, specify feature number 3480 to ship media updates only. If, in the future, publication updates are required, order an MES to remove feature number 3480; then, the publications will ship with the next release of the program. Description Initial Shipments Feature Number Serial Number Only (suppresses shipment 3444 of media and documentation) Description Feature Number Ship Media Only (suppresses initial 3470 shipment of documentation) Ship Documentation Only (suppresses 3471 initial shipment of media) Update Shipments Ship Media Updates Only (suppresses 3480 update shipment of documentation) Ship Documentation Only (suppresses 3481 update shipment of media) Suppress Updates (suppresses update 3482 shipment of media and documentation)

20 Description Feature Number Usage Restriction: Yes. Usage is restricted to the number of management points acquired. Expedite Shipments Local IBM Office Expedite 3445 (for IBM use only) Customer Expedite Process Charge 3446 ($30 charge for each product) Expedite shipments will be processed to receive 72-hour delivery from the time IBM Software Delivery and Fulfillment (SDF) receives the order. SDF will then ship the order via overnight air transportation. Unlicensed Documentation: The following documents will be shipped with the individual products affected by this announcement: Publication Title Order Number IPLA Pamphlet Z License Information LC For additional documentation information, refer to individual product announcements maintained on the IBM home page on the Internet at: Subsequent updates (technical newsletters or revisions between releases) to the publications shipped with the product will be distributed to the user of record for as long as a license for this software remains in effect. A separate publication order or subscription is not needed. Terms and Conditions Agreement: IBM International Program License Agreement (IPLA), IBM Agreement for Acquisition of Support (IAAS) or IBM International Agreement for Acquisition of Programs and Support (IIAAPS) with the Attachment for Support, its Addendum for Tivoli Systems, and an Order Form. Transferable: Applies except when support is in effect Limited Warranty Applies: Yes Guarantee: Two months Upgrade Protection Applies: Covered as long as support is in effect. Educational Allowance Available: education customers. Volume Orders: Not applicable Warranty Applies: Yes Licensed Program Materials Availability Restricted Materials of IBM: None Non-Restricted Source Materials: None Object Code Only (OCO): All Tivoli Support Availability: Support Center applies: Applicable for: Yes, to qualified The first year of Tivoli Support is available at no additional charge. The first year starts when the product is shipped to the customer. Subsequent years of Tivoli Support are available, for a fee, as part of the IAAS, IIAAPS, or any equivalent agreement. Yes Access is available through the Tivoli Support Center TIVOLI8 The current release level Immediate previous release level for twelve months after the general availability of the current release. Available until the 12 months after written Product Discontinued: notice of product discontinunace, that is, End-Of-Life (EOL). APAR Mailing Address: Tivoli Systems Incorporated 9442 Capital of Texas Highway Austin, Texas USA Charges Contact your IBM representative for charges information for this announcement. Trademarks Complimentary Introductory Support: Not available Tivoli is a registered trademark of Tivoli Systems Inc. in the United States, other countries, or both. In Denmark, Tivoli is a trademark licensed from Kjobenhavns Sommer Tivoli A/S. SP and IMS are trademarks of International Business Machines Corporation in the United States or other countries or both. MQSeries, DB2, OS/390, NetView, RS/6000, AS/400, Scalable POWERparallel Systems, S/390, and CICS are registered trademarks of International Business Machines Corporation in the United States or other countries or both. Microsoft is a trademark of Microsoft Corporation. Domino and Notes are trademarks of Lotus Development Corporation. Other company, product, and service names may be trademarks or service marks of others