IBM Americas Marketing © 2006 IBM Corporation IBM Confidential Business Partner Programs and Promotions Summary as of October 24, 2006

IBM Americas Marketing

IBM Confidential © 2006 IBM Corporation

Business PartnerPrograms and Promotions Summaryas of October 24, 2006


© 2003 IBM Corporation2 IBM Confidential | © 2006 IBM Corporation

Contents

Page(s)System x and BladeCenter Programs 3-4System x and BladeCenter Promotions 5-7System Storage Programs 8-9System Storage Promotions 10PartnerWorld Link, Announcement Search and ID 11



Program Description Status

New Customer Bonus Program

$500 to $10K payments possibly totaling $22,500 for New Customer sales of System x, PWS, and Blades. 5% payment at $10K, $25K, and $50K. The value of the reported sales of selected eligible dual-socket servers has been increased to two times their IBM Bid Index price October 10, 2006 – December 31, 2006

Year PgmAnn Letter IBM06-444

Blade + BladeCenter Solutions

3% base + 3% on quarterly growth targets for sales of Blades + BladeCenter Chassis. 300K annual sales target of Blade product. Technical competency and demo unit required. Quarterly targets equal 40% uplift of previous year’s end user reported sales for the same quarter


xSeries + PWS Premier Partner Incentive

1% on growth + 1% on options multiplier (1.24 AR) for sales of System x, Blades, & IntelliStations. Quarterly targets equal 20% uplift of previous year’s end user reported sales for the same quarter. Minimum target 125K. If 40% of the quarterly sales target is met for October 1, 2006 - October 31, 2006, the amount of the October accelerator incentive payment will be equal to 4.0%. If 70% of the quarterly 2006 sales revenue target is met for sales between October 1, 2006 and November 30, 2006, the amount of the October/November accelerator incentive payment will be equal to 2.0%

Year Pgm Ann Letter IBM06-445

EXAct Member Incentive 3% base + 3% on quarterly growth targets on sales of x460 + selected options. 300K annual target for x460 sales. Technical competency and demo unit required


Fulfillment VAR (FVAR) Program

Program to enable eligible BP's to sell x460's and selected options. Sales and education competency requirements.


xSeries 460 and MXE-460 new customer Business Partner

Eligible EXAct or Fulfillment VARs .Payment for the sale of x460 server or x460 and MXE Modular Expansion Enclosure to a pre-qualified new x460 customer. $2,500 for an x460 or $7,500 for an x460 with MXE enclosure on same end user invoice.


Technology Access Program (TAP)

Discounts up to 40% on 2 Servers then 20% on next 10 - includes Storage, PWS, EXP400, Tape Library, DS4000, Blades + JS20's, and Monitors


Channel Eval Program for Partners

Pre-sale program on xSeries, PWS, xSeries-Storage, and Blades. Maximum 60 day eval period. Capped at 25 evaluation configurations. BP’s with 50% or greater closure rate are allowed 5 additional evaluation requests. 10% return fee on evals requested on or after 9/1. Submit close out forms by 12/1. Authorized returns must be received by 12/15.


IBM System x and BladeCenter Programs




xSeries Express Seller 2006 Business Partner incentive

2% incentive payment on Express Model Sales after $5K in sales of the eligible products Year Pgm Ann Letter IBM06-130

Sell More Blue Fast path bid process that BPs can utilize in competitive pricing situations. Provides BPs with a simple process that allows them to obtain discounted pricing for competitive opportunities by contacting their Distributor. 1%-5% on selected eligible products in competitive situations.

Ann Letter IBM06-020

Public Sector Fee Offering Referral fees on BP marketing efforts to end-users who buy directly from IBM. The BPs LocID must appear on each end user order to be eligible for payment. Order must be placed directly through IBM


HealthCare Program Discounts up to 20% on Express xSeries Servers, Blades, and PWS + Options when sold into qualified HealthCare Accounts. BP references Healthcare incentive when placing orders with the Distributor. The Distributor net bills the BP and the Distributor files an electronic rebate claim form referencing incentive number SRVR1Q06002 to receive their rebate.


FIE Chassis Offering Incentive payments up to $4K on selected chassis products on sales into new Blade Center Chassis customers


BP Power Play .25% on all System x sales after $40K target is achieved. 5% on selected eligible DS300/400 and Storage Servers. 3% on eligible software effective 07/25. Additional 3% on Blade system units effective 9/1. Member and Advanced level BPs earn 10% incentive for October and 5% for November end user EDI reported sales.


IntelliStation A Pro Engineering incentive

Rebates for eligible IntelliStation A Pro models sold to Engineering organizations. Rebates from $363-$693 depending on model.


Know Your IBM 2006 Business Partner Merchandise Reward programs

Employees of eligible IBM Business Partners can receive points that can be redeemed for merchandise under the Learn and Earn Rewards Program. Program rewards employees who successfully complete qualifying IBM quick learning training modules.


IBM System x and BladeCenter Programs (Cont’d)



Promotion Description

October Dual-socket Promotion

IBM06-441

10/06/06 to 10/31/06

Rebates of $100 on selected dual-socket servers. BPs should reference SRVR3Q06005 when placing orders with their Distributor. The Distributor should net bill the BP and file an electronic rebate claim form for their rebate.

Qualifying Express model servers Part Description number xSeries 336 883705UxSeries 336 88371RUxSeries 336 883715UxSeries 336 883725UxSeries 336 883735UxSeries 336 883745UxSeries 336 883755UxSeries 346 8840D1UxSeries 346 884015UxSeries 346 884025UxSeries 346 884035UxSeries 346 884036UxSeries 346 884045UxSeries 346 884055U

IBM xSeries 460 and System x3950 SMB incentive

IBM06-443

10/10/06 to 12/31/06

IBM Business Partners can receive incentive payments for EDI reported sales of eligible xSeries 460 and/or System x3950 servers to End Users identified as small and medium business (SMB) Enterprises. The amount of the incentive payments will be equal to 5% of the IBM Bid Index Price of the eligible products, on the date of the sale to the End User.

Qualifying model servers Part Description number IBM xSeries 460 server 8872xxx 8874xxx

IBM System x3950 server 8872xxx

IBM System x and BladeCenter Promotions




System x options promotion

IBM06-408

9/12/06 to 10/31/06

Rebates from $55 - $387 on selected hard drives, RAID controllers, and EXP400.BPs should reference SRVR3Q06004 when placing orders with their Distributor.

Eligible products Part RebateDescription number amount300 GB 10K Hot Swap SCSI 40K1025 $120300 GB 10K Hot Swap SAS 40K1041 12073 GB 15K Hot Swap SCSI 40K1027 74146 GB 15K Hot Swap SCSI 40K1028 11173 GB 15K Hot Swap SAS 40K1043 70146 GB 15K Hot Swap SAS 40K1044 111Simple Swap 36 GB 15K SAS 40K1048 55Simple Swap 73 GB 15K SAS 40K1049 83Simple Swap 146 GB 15K SAS 40K1050 129EXP400 (US) External JBOD 17331RU 387ServeRAID (TM)-6M SCSI Controller 39R8815 110ServeRAID-6M SCSI Controller 39R8816 156

System x Express server promotion

IBM06-446

10/10/06 to 11/11/06

Business Partners can receive rebates ($131-$1,003) for EDI or Web-based reported sales of selected eligible new IBM System x, and IntelliStation Express systems.

Eligible products Part RebateDescription number amountSystem x3500 797742U $ 162BladeCenter (R) HS21 8853E5U 421 BladeCenter LS21 797131U 213System x3550 797831U 179IntelliStation A Pro 62174CU 1,003IntelliStation Z Pro 922892U 131xSeries (R) 366 8863E8U 646System x3800 8865E4U 547





System x tape automation promotion

IBM06-447

10/10/06 to 12/11/06

Business Partners can receive rebates ($104-$1,166) for eligible tape automation products. BPs should reference SRVR4Q06006 when placing orders with their Distributor. The Distributor should net bill the BP and file an electronic rebate claim form for their rebate.

Eligible products Part RebateDescription number amountTape Autoloader (1U) 87691VX $ 748Tape Autoloader (2U) 33622LX 513LTO3 Sled Drive for 3362 40K2596 948LTO Magazine Option for 3362 40K2597 139IBM 4U Universal Library 33614LX 783LTO3 Sled Drive for 3361 40K2573 1,079LTO Magazine Option for 3361 40K2577 104ISCSI Adapter for 3361 40K2579 1,166

System x $100 BP Dual-socket promotion

IBM06-458

10/25/06 to 11/30/06

Business Partners can receive a $100 rebate for end user EDI reported sales of selected eligible dual-socket servers. In addition, Distributor Sell More Blue delegation might be available to help close competitive opportunities.

Eligible products Part Description number xSeries 336 883705UxSeries 336 88371RUxSeries 336 883715UxSeries 336 883725UxSeries 336 883735UxSeries 336 883745UxSeries 336 883755UxSeries 346 8840D1UxSeries 346 884015UxSeries 346 884025UxSeries 346 884035UxSeries 346 884036UxSeries 346 884045UxSeries 346 884055U




IBM System Storage Programs


IBM Storage 2006 Reseller New Customer Incentive

BP’s can earn up to $100,000 per qualified new end-user for reaching sales revenue clip levels up to $2.5M. HVEC DS4000 & LTO & Express models


IBM Storage 2006 Systems Business Partner New Customer Incentive

BP’s can earn up to $100,000 per qualified new end-user for reaching sales revenue clip levels up to $2.5M. AAS DS8000, DS6000, DS4000, LTO, HE Tape, NSeries, SAN

Year PgmAnn Letter 506-174

IBM Storage Express Seller 2006 Business Partner Incentive

Earn a 2% rebate on sales of all storage express models. Year PgmAnn Letter IBM06-209

IBM xSeries & TotalStorage Technology Access Program

Offers all PartnerWorld (R) IBM Business Partners the ability to purchase xSeries (R) servers, BladeCenter (R) products, IntelliStation (R) workstations, xSeries storage, TotalStorage (R) products, JS20 Blades, and options at discounts from the IBM web price for internal use, demonstration or development purposes.


IBM low-end Storage Business Partner Incentive

Eligible IBM Business Partners who are approved to remarket IBM TotalStorage products can receive a quarterly incentive payment if they meet a minimum quarterly EDI or Web-based reported End-User sales revenue target for eligible new IBM TotalStorage DS4000, low-end SAN, and low-end Tape products. HVEC, DS4000, LTO, SAN, Express Models


2006 Public Sector Fee Offering

The IBM Public Sector Fee Offering for Marketing IBM xSeries,IntelliStation and TotalStorage Products has been designed to reward the marketing efforts of eligible IBM Business Partners when eligible Public Sector End Users purchase eligible IBM xSeries, IntelliStation and TotalStorage Products directly from IBM. HVEC, DS4000, LTO, SAN, Express Models




IBM System Storage Programs


IBM Storage Channel Challenge

This storage sales contest rewards top performing reselling Business Partners for sales in selected focus growth areas. Program eligibility dates are July 1, 2006, through December 31, 2006. IBM TotalStorage Productivity Center, IBM SAN Volume Controller, IBM System Storage DR550 and DR550 Express, IBM Tivoli Storage Manager Express are the focus storage software and solutions within the following sales contest categories: Pit Crew Fast Start Victory Lap Winner’s CircleFor more information, go to: ibm.com/partnerworld/storage/grandprixchallenge, and click on “Get started now” (IBM PartnerWorld log-on required.)

CC0607-129

Know Your IBM 2006 Business Partner Merchandise Reward programs

Employees of eligible IBM Business Partners can receive points that can be redeemed for merchandise under the Learn and Earn Rewards Program. Program rewards employees who successfully complete qualifying IBM quick learning training modules.


IBM System Storage SMB First-in-Enterprise Reseller incentive

The offer Eligible IBM Business Partners can receive an incentive payment for the EDI or Web-based reported sale of eligible new IBM First-in-Enterprise (FIE) storage product(s) to an End User* identified as a small and medium business (SMB) Enterprise.





Reseller

4 Gbps Switch SAN Consolidation ProgramContact: Rick Davis 914-766-3114

through 10/31/06

Replace non-McDATA Fibre Channel switches with IBM SAN32M-2 switch at a reduced price. Replaced switches must be removed and destroyed within 90 days of shipment of the new IBM SAN switch. 2026-432 RPQ8S0760 - 8 Port FlexPort. Kit IBM sales, IBM Business partner or customer must fill out a sales nomination form and email it to [email protected] to participate in the program. Nomination form located at http://w3-1.ibm.com/sales/systems/portal/_s.155/254?navID=f220&geoID=All&prodID=SAN&docID=sashsanvenannover

End-User

IBM System Storage TS3100 Tape Library Express Model promotion

Ann. Letter 506-206

through 12/31/06

For a limited time only, End-Users, as defined in the IBM Business Partner Agreement, of eligible IBM Business Partners can receive a $1,500 USD ($1,724 CAD) rebate when they purchase a tape solution that includes:

• an eligible new IBM System Storage™ TS3100 Tape Library Express Model F3S or L3S, and • a minimum of four (4) eligible new Ultrium 3 Data Cartridge 5-packs.

Eligible products Part Description number QuantityTS3100 Tape Library Express 3573L3S or 1 with LVD SCSI drive TS3100 Tape Library Express 3573F3S with fibre channel drive AND Ultrium 3 Data Cartridge 95P2020 4 (GEN 3) 5-pack

IBM System Storage Promotions

Americas BP Channels – 2Q Programs & Marketing Update

IBM Internal Use 2005 IBM Corporation11

PartnerWorld -- PartnerWorld -- Where do I find that?Where do I find that?

Announcement Letters Select Announcement Letters

under Product Short Cuts For Letter 500’s - Under United

States & Canada Select “Indirect Reseller Business Partner Letters” – this is where you will find letter that are 505-XXX

Search by letter number, date or topic – letter number & date give much cleaner results if you know what you want

For PCD announcement letters – Under the United States Only bar Select “xSeries, Storage, Other Products – this is where you will find announcement letters that begin with PCD05-XXX

http://www.ibm.com/http://www.ibm.com/partnerworldpartnerworld Channel Communication

Letters Select “More Shortcuts” from

the first page of options Under “Business Shortcuts”

select CC Letters Scroll through letters or put

the specific letter number you are looking for CC50X-XXX into the search bar at the top to go directly to what you want

> Select United States

Small and Medium Business Advantage

Select “IBM Strategies” from the left navigation bar

Under “IBM Strategies” select Small and Medium Business

Getting a PartnerWorld IBM ID

Instructions for Partners1. Log into www.ibm.com/account/profile and create an id/pw 2. Log into http://www-1.ibm.com/partnerworld/pwhome.nsf/weblook/pub_join_resellers.html3. Scroll to the bottom of the page to Add yourself to your company profile4. Click on add yourself to location profile5. Enter the id/pw6. Enter your company token number (contact your firm’s profile administrator – APA)7. Complete the short profile with your information8. Send a note to your firm’s APA to approve your self-registration

If you should need further assistance please send a note to [email protected] .

Unique Bid Code Guide Select BP Library Select General Information

Library

Documents

IBM Americas Marketing © 2006 IBM Corporation IBM Confidential Business Partner Programs and Promotions Summary as of October 24, 2006