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© 2012 IBM Corporation2
Performance Rewards
Blade Foundation For Cloud
Min Margin
Doubled Blade &
Networking Payments
New Customer
Bonus Doubled Blade & Networking
Payments
Blade Blade 1-2-31-2-3 Triple Play Triple Play
1- New Customer 2- BP Led 3- Minimum Margin Program
BP Led
Doubled Blade
MarginMinimum BCF configuration
& options!Rebate for performance
and certifications
Bid Code Discount
20%20%Blades &Blades &
NetworkingNetworking
Net Rev Rebate
12%12%Blades &Blades &
NetworkingNetworking +
or
Bid Code Discount
4%4%Blades &Blades &
NetworkingNetworking
Bid Code Discount
8%8%Blades &Blades &
NetworkingNetworking
MMP
10%10%Blades Blades
BCF
10%10%Blades and Blades and
Options Options 1.75% Authorized 1.75% Authorized 2.5% Specialty2.5% Specialty3.5% Specialty Elite3.5% Specialty Elite
don’t forget the BladeCenter Foundation for Cloud and Performance Rewards
Up to
Strike out the competition using 3 incentive enhancements for Blade!
Through June 30th
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
3
Performance Rewards 512-168 and PartnerRewards Investment level Base Performance Total RangeAuthorized 0.75% 0% to 1% 0.75% to 1.75%Specialty 1.5% 0% to 1% 1.5% to 2.5%Specialty Elite 1.0% above Specialty (Primary Distributor) 2.5% to 3.5%
Authorized• Replaces “RGI” as baseline sales program• Revenue = Min $25K prior 12 months• Incentive = 1.25% Rate net rev “on target” (0.75% Base to
1.75% Max Rate)
1.25% *OTE1.75% Max
*OTE = On Target Earnings
Specialty
• Certifications, Champion, References and Revenue (slight modification to 2011 Specialty)
• Revenue = $240K revenue prior 12 months• Incentive = 2.0 % Rate net rev “on target” (1.5% Base to
2.5% Max Rate)
2.0% OTE2.5% Max
SpecialtyElite
• Certifications, Champion, References, Revenue and Distributor Selection
• Revenue = $1.5M prior 12 months• Incentive = 2.0 % net rev “on target” (1.5% Base to 2.5%
Max Rate), plus • Plus 1.0% through Selected Distributor• eX5 BPs receive Specialty Elite Level payments but must
achieve Specialty Elite certification by June 30th, 2012
3.0% OTE3.5% Max
PartnerWorld PartnerRewards Questions? 800-624-6875PartnerRewards
• Premier Partner members with approved marketing plans• Incentive = 0.5% NetRev up to $25K max per quarter @ $5M max rev
0.5%$25K/qtr Max
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
4
PerformanceRewards Calculator for $1,000,000 On Target Earnings (OTE) Revenue Authorized Specialty Elite Authorized Specialty Elite
% of Target Attainment Payout % Payout % Payout % Payment $ Payment $ Payment $
75% 750,000 0.75% 1.50% 2.50% $5,625 $11,250 $18,750
76% 760,000 0.77% 1.52% 2.52% $5,852 $11,552 $19,152
77% 770,000 0.79% 1.54% 2.54% $6,083 $11,858 $19,558
78% 780,000 0.81% 1.56% 2.56% $6,318 $12,168 $19,968
79% 790,000 0.83% 1.58% 2.58% $6,557 $12,482 $20,382
80% 800,000 0.85% 1.60% 2.60% $6,800 $12,800 $20,800
81% 810,000 0.87% 1.62% 2.62% $7,047 $13,122 $21,222
82% 820,000 0.89% 1.64% 2.64% $7,298 $13,448 $21,648
83% 830,000 0.91% 1.66% 2.66% $7,553 $13,778 $22,078
84% 840,000 0.93% 1.68% 2.68% $7,812 $14,112 $22,512
85% 850,000 0.95% 1.70% 2.70% $8,075 $14,450 $22,950
86% 860,000 0.97% 1.72% 2.72% $8,342 $14,792 $23,392
87% 870,000 0.99% 1.74% 2.74% $8,613 $15,138 $23,838
88% 880,000 1.01% 1.76% 2.76% $8,888 $15,488 $24,288
89% 890,000 1.03% 1.78% 2.78% $9,167 $15,842 $24,742
90% 900,000 1.05% 1.80% 2.80% $9,450 $16,200 $25,200
91% 910,000 1.07% 1.82% 2.82% $9,737 $16,562 $25,662
92% 920,000 1.09% 1.84% 2.84% $10,028 $16,928 $26,128
93% 930,000 1.11% 1.86% 2.86% $10,323 $17,298 $26,598
94% 940,000 1.13% 1.88% 2.88% $10,622 $17,672 $27,072
95% 950,000 1.15% 1.90% 2.90% $10,925 $18,050 $27,550
96% 960,000 1.17% 1.92% 2.92% $11,232 $18,432 $28,032
97% 970,000 1.19% 1.94% 2.94% $11,543 $18,818 $28,518
98% 980,000 1.21% 1.96% 2.96% $11,858 $19,208 $29,008
99% 990,000 1.23% 1.98% 2.98% $12,177 $19,602 $29,502
100% 1,000,000 1.25% 2.00% 3.00% $12,500 $20,000 $30,000
© 2012 IBM Corporation5
If the BP Takes No action If the BP does “opt in”
NCB Game Plan 512-167
4% System x PTW Bid Code 8% Blade Bid Code 8% Networking Bid Code 4% Storage Bid Code
Bid Code Discount
Back End Rebate
If the BP “opts in” for enhanced Bid Codes, they will not receive NCB net revenue back end rebates
4% System x net revenue back end rebate 12% Blade net revenue back end rebate 12% Networking net revenue back end rebate 2% Storage net revenue back end rebate
BP must “opt in” by submitting form to Trade One
No action needs to be taken if BP wants to remain with the current mix of NCB front end Bid Codes plus NCB net revenue back end rebates
Option for Enhanced Bid Code
Bid Code Discount
7% PTW Bid Code for System x 20% Bid Code for Blades 20% Bid Code for Networking 7% Bid Code for Storage
Back End Rebate
Option for Enhanced Bid Codes BPs can opt in once per calendar quarter
After a BP opts in, their election will not change unless they opt out (at least one calendar quarter after “opting in”).
To opt in, BPs must submit an “Opt in” form that is in the announcement letter to Trade One. Trade One will reply/activate the BP within 2 business days. The decision to opt in is an enterprise decision; therefore, ALL LocIDs for the BP will be activated at once
New NCB customer approval numbers for existing approvals will be assigned. Trade One will send an email with a link to the reassigned customer approval numbers.
Business As Usual with…
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
6
New Customer Bonus (NCB) 512-167BPs that do not “opt in”Price To Win upfront discount and additional net revenue backend rebate 4% net revenue back end rebate for System x products
12% net revenue back end rebate for Blade
12% net revenue back end rebate for Networking
2% net revenue back end rebate for Storage
Plus… additional upfront Price To Win Bid Code discount (when the transaction is a PTW On Grid transaction)
Bid
Product Code Percentage
System x NCBX0212A 4%BladeCenter NCBB0212A 8%Networking NCBN0212A 8%Storage NCBS0212A 4%
BPs that do “opt in”Price To Win upfront discounts but no additional net revenue backend rebate 7% Bid Code discount for System x
20% Bid Code discount for Blade
20% Bid Code discount for Networking
7% Bid Code discount for Storage
BidProduct Code Percentage
System x NCBEX0212A 7%BladeCenter NCBEB0212A 20%Networking NCBEN0212A 20%Storage NCBES0212A 7%
*Business Partners whose End Users are not approved for System x, will automatically be reviewed for Blade and/or Networking eligibility. If approved, the BP will be provided with a Blade and/or Networking approval number to use with the Blade and/or Networking Bid Codes and net revenue rebates for those specific products only. Business Partners do not have to make a separate nomination.
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
7
System x and High Volume Storage BP Led incentive 512-107
Offer
Bid Product Code Percentage
System x Bid Code BPLX0212A 2%
Blade Bid Code BPLB0212A 4%
Networking Bid Code BPLN0212A 4%
System Storage Bid Code BPLS0212A 2%
System x and High Volume System Storage BP Led Approvals
- BPs can request approval for end users by utilizing the “approval request” web link that is published in the announcement letter http://www.bpledapprovalrequests.com
How do I access my end user approval numbers? – Business Partners can go to their Trade One Portal sign in, click on the “Reports” drop down menu at the top of the
page and select BP Led. BPs can also call 800-477-6756 Trade One (IBM Promotional Marketing Center) if they need assistance.
Who’s a BP Led end user?– End Users are classified as Business Partner Led End Users if they do not appear on the IBM-led list.
How long are my approved BP Led end user approval numbers valid? – Business Partner Led approval numbers will not expire, unless an End User is reclassified by IBM.Business Partners will receive 30 days notice that previously issued Business Partner Led approval numberswill expire.
© 2012 IBM Corporation
Building a smarter planet
8
BladeCenter Foundation for Cloud (BCF10) 512-165
New BladeCenter Foundation Incentive – 10% Incentive “BCF10”– 10% incentive on key BladeCenter Foundation solution elements– Back-end – based on End User sales data provided – Requires minimum set of eligible parts acquired at the same time and appear on a single Distributor’s invoice
and date– Incentive pays on Blades, Chassis and Select BCF solution options– Incentive rewards up-selling to 10Gb and virtual fabric solutions
8
Must have minimum quantities of these…
Qty 1 BladeCenter H Chassis (8852xxx)Qty 4 Blades HS23, HS22, HS22V, HX5 (7875xxx, 7870xxx,7871xxx,7872xxx, 7873xxx)Qty 1x3550 M3 Management Node (7944DDU)
*– same Distributor invoice and same invoice date
To earn rebate on these…
Chassis, Blades, Management Node… plusCore Chassis Options (10Gb Ethernet and 8Gb FC switches)Core Blade Options (10Gb and 8Gb I/O cards)Open Fabric Manager softwareDynamic Racks (for ship-load capability through distributors)Storage Controllers and Expansion Units
All quantities to appear on same Distributor invoice and invoice date.
•Sell the minimum configuration and earn 10% net rev rebate•Enhance the solution with eligible adapters, switches, software utilities, and a rack •Get paid 10% net rev rebate on everything
© 2012 IBM Corporation
Building a smarter planet
9
BCF10 - Full Options Listing
9
Starter Kit for Cloud x86 editionPer Managed Server with 1 Year Software 00D4658Subscription and SupportPer Managed Server with 3 Year Software 00D4659Subscription and Support
RacksIBM S2 42U Dynamic Racks 9956-xxxIBM 42U Enterprise Racks 9308-xxxIBM 42U 1200mm Deep Dynamic Rack 9360-xxxIBM 25U Racks 9307-25UIBM 11U Office Enablement Kit 2018-86X
10Gb Ethernet AdaptersBroadcom 10Gb Gen2 4-port Ethernet (CFFh) 46M6164Broadcom 10Gb Gen2 2-port Ethernet (CFFh) 46M6168Broadcom 2 port 10Gb Virtual Fabric 2 (CFFh) 81Y3133Brocade 2 port 10GbE Converged Network Card 81Y1650Emulex Virtual Fabric Adapter (CFFh) 49Y4235Emulex 10GbE Virtual Fabric Adapter 2 90Y3550Emulex 10GbE Virtual Fabric Adapter 2 Adv. 90Y3566Intel 10Gb 2-port Ethernet Expansion (CFFh) 42C1810Mellanox 2-port 10Gb Ethernet (CFFh) 90Y3570QLogic 2-port 10Gb Converged Network (CFFh) 42C1830
10Gb Ethernet SwitchesBNT Virtual Fabric 10Gb Switch Module 46C7191Brocade Converged 10GbE Switch Module 69Y1909Cisco Nexus 4001i Switch Module 46M6071S/W Upgrade License for Cisco Nexus 4001i 49Y9983
Fibre Channel AdaptersEmulex 8Gb FC Expansion Card (CIOv) 46M6140Emulex iSCSI/FCoE Virtual Fabric Upgrade 49Y4265Emulex iSCSI/FCoE Virtual Fabric Adapter 49Y4275QLogic Ethernet and 8Gb FC Card (CFFh) 44X1940QLogic 8Gb Fibre FC Card (CIOv) 44X1945QLogic Virtual Fabric Extension Module 46M6172
Fibre Channel SwitchesBrocade 20-port 8Gb SAN Switch Module 44X1920Brocade Enterprise 20-port 8Gb SAN Switch 42C1828Brocade 10-port 8Gb SAN Switch Module 44X1921QLogic 20-port 4/8 Gb SAN Switch Module 88Y6406
BladeCenter Software UtilitiesIBM BladeCenter Open Fabric Manager 46C3552- Advanced Upgrade for IBM DirectorIBM BladeCenter Open Fabric Manager 46C3551- Advanced UpgradeIBM BladeCenter Open Fabric Manager 44W3981IBM BladeCenter Open Fabric Manager 2019B1XIBM BladeCenter Open Fabric Manager 4812S3X3.0 - Advanced UpgradeIBM BladeCenter Open Fabric Manager 4812S3D3.0 - Advanced Upgrade for IBM Director
DS3524 Storage DS3524 Express Dual Controller 1746A4D DS3524 Express Expansion Unit 1746A4E
Must have minimum quantities of these…
Qty 1 BladeCenter H Chassis 8852xxxQty 4 Blades (HS23, HS22, HS22V, HX5) 7875, 7870, 7871, 7872, 7873xxxQty 1 3550 M3 Management Node 7944DDU
Same Distributor invoice and same invoice date all quantities
To earn rebate on these…
Chassis, Blades, Management Node… plusCore Chassis Options (10Gb Ethernet and 8Gb FC switches)Core Blade Options (10Gb and 8Gb I/O cards)Open Fabric Manager softwareDynamic Racks (for ship-load capability through distributors)
Same Distributor invoice and same invoice date as min configuration
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
10
Express server + Options incentive 512-191Easy to sell, install, deploy and manage!
Sell an eligible System x Express server with eligible System x options and receive a back-end rebate for 10% of the list price of the options
PTW Grid 1 transactions are eligible for payment
Transactions with over 30 options per Express server will be reviewed to determine eligibility
Options must be configurable to the Express server and within the limitations of the server
Eligible Express servers
Tower Express servers
X3100 M4, x3200M3, x3400M3, x3500 M4, x3500M3
Rack Express servers
x3250 M4, 3250M3, x3550 M4, x3550 M3, x3620 M3, x3630M3, x3650 M4, x3650M3
High End Express servers
x3690 X5, x3850X5
Blades and Chassis
HX5, HS23, HS22V, HS22, BC-S Chassis
The Express server and options must be acquired at the same time and appear on a single Distributor invoice
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
11
Channel Evaluation 512-261
Slide 11 2012 IBM Corporation
Deal Terms and Conditions Small Medium Large
Deal size range by List price $0-$49,999 $50,000-$99,999 > $100,000
Bid Code Discount EVAL2012SM 15% EVAL2012MD 10% none
Deal Registration required No Yes Yes
Pricing Delegation Grid 1 Grid 2 Grid 2 or Bid
Restocking Fee if Returned 5% 5% 10%
Additional Restocking Fee if Trial Extended 5% 5% 10%
Length of Trail 90 days 90 days 120 days
Quantity Limits Small Medium Large
Maximum Number of Systems per Eval 4 8 No limit
Maximum Number on an Option Only evaluation 16 32 Not Applicable
System Networking ToR Switches 2 4 No limit
System Networking Options 64 128 No limit
Eval Limits per End-User
Per End-User – Active at any time 2 - Any Size
Per End-User per year 3 - Any Size
Eval Limits per BP
Total Evals per BP per quarter / annual 5 Total / 20 annual
Total Evals per BP by Eval Size per quarter 4 2 1
Any Channel Evaluation requests submitted and approved prior to June 1, 2012 will be administered under the terms and conditions of Announcement Letter 511-394.
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
12
Technology Access Program (TAP) 512-198 TAP rebate plus Bid Index allowance equals eligible percentage off List discount.
Discounts are as follows:
System x
Product Groups QTY Discount Selected Starter Kit for Cloud x86 edition 1-4
100%Selected Starter Kit for Cloud x86 edition 5-20 40%Selected IBM BNT Network Switches 1-2 80%System x Servers & Blades 1-2 40%(Any standard model) 3-12 20%System x Racks 1-2 40%System x Racks 2-12 20%Options 1-16 40%Options 17-96 20%
HV System Storage Description Part # Qty Discount DS3400 1726xxx 1-2 40% 3-12 20%EXP3000 1727xxx 1-2 20%
3-12 15%
DS3500, EXP3500, EXP2500 1746xxx, 1747xxx 1-2 45%
3-12 35%
DS4000 EXP810 181281H 1-2 45% 3-12 38%TS2900 Tape Library 3572xxx 1-2 45% 3-12 38%TS3100, TS3200 Tape Library 3573xxx 1-2 45% 3-12 38%TS2230 Tape Library 3580xxx 1-2 38% 3-12 33%TS2240, TS2340Tape Library 3580xxx 1-2 45% TS2250, TS2350 Tape Library 3-12 38%
Options 1-16 45%Options 17-96 38%
The Technology Access Program (TAP) offers selected PartnerWorld members the ability to buy System x servers, BladeCenter products, selected HV System Storage products, and options at discounts off the IBM Web price minus bid index % for internal use, demonstration or development purposes.
Rebate claims must be submitted within 45 days of invoice to receive a payment.
TAP claim form
Hypothetical Discount Example Blade / High-End Server
List Price $1,000
Distributor Discount $ 140 14%
TAP Rebate $ 260 26%
Total Discount $ 400 40%
OFF LIST
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
13
Public Sector Fee incentive 512-200 Business Partners must notify the customer that the BP might receive a fee from IBM and the BP must provide IBM with a copy of the customer
notification. Customer notifications must be renewed once every twelve months and IBM provided with a copy of the renewal notification.
The Business Partner’s name, valid System x LocID, and eligible contract number (as published in the announcement letter) must be included on every end user PO
Fees for configurations are processed based on the overall unit cost NOT an individual per component basis
Product Rate
System x and BladeCenter Options
Third party software purchased from IBM: VMware, Altiris, Red Hat Linux, SUSE Linux, Remote Deployment Manager (RDM)
6.5%
High-Performance Systems
System x3755 M3, x3850 X5, x3690 X5 Servers
5%
BladeCenter and Chassis
BladeCenter S, E, H, T, HT Chassis, HS23, HS22, HS22V, HX5
6.5%
High Volume Server Systems
System x3250 M4, x3400 M3, x3500 M4, x3500 M3, 3550 M4, 3550 M3, 3620 M3, 3630 M3, 3650 M4, 3650 M3, Smart Cube Servers
3.5%
Entry High Volume Servers
System x3100 M4 Servers
3.0%
System x and BladeCenter Express Models 2.0%
iDataPlex 3.0%
HV System Storage
DS3000, DS3200, DS3300, DS3400, DS3500, DS4000TM, DS4200, DS4700, DS4000TM EXP810, LTO, SAN
3.0%
HV System Storage Express
DS4000, LTO, SAN
2.0%
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
14
System x Specialty – North America 511-073
System x Specialty – available since May 2010
System x Specialty – accreditation benefits…
1. Specialty certification enables participation in Performance Rewards Specialty level incentive payments
2. Specialty Mark
3. Additional education and certification vouchers
4. Additional Business Partner Technical Vitality (BPTV) points will be awarded to the Business Partner’s company score
5. Access to Pre-sales Support Deal Hub without Clip Levels
6. Systems Connect eXpert Benefits for an identified System x Champion
• For complete information on System x Specialty enrollment, benefits, and details, please refer to the PartnerWorld specialty website:
https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/isv_com_spe_sysx_resel_start
Each IOT/geography has its own System x Specialty Benefits
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
15
System x Specialty Elite – North America 512-169 System x Specialty Elite – accreditation benefits…
1. Specialty Elite certification enables participation in Performance Rewards Specialty Elite level incentive payments
2. Specialty Elite Mark
3. Additional education and certification vouchers (not incremental if BP had already received in Specialty)
4. Additional Business Partner Technical Vitality (BPTV) points will be awarded to the Business Partner’s company score
5. Access to Pre-sales Support Deal Hub without Clip Levels
6. Systems Connect eXpert Benefits for an identified System x Champion
• Visit the following web site for information on System x Specialty Elite enrollment, benefits, and details:
https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/isv_com_spe_sysx_resel_start
• Each IOT/geography has its own System x Specialty Elite Benefits
© 2012 IBM Corporation
IBM System x - BladeCenter – iDataPlex
16
System x Specialty and Specialty Elite Comparison Skills Criteria Specialty Specialty Elite
Business Criteria - Annual Revenue $240, 000 revenue $1,500,000 Revenue
Skills Criteria Specialty Specialty Elite
Sales certifications (1 pt per test) 3 pts minimum 4 pts minimum
Minimum employees to meet criteria 1 employee Combo of 4 employees
Sales Specialist - System x 1 1
Sales Expert - System x and Blade 1 1
Solution Advisor - Cloud 1 1
Technical certifications (2 pts per Fundamentals, 3 pts per Specialist)
11 pts minimum 12 pts minimum
Minimum employees to meet criteria Combo of 2 employees Combo of 4 employees
Technical Fundamentals - System x 2 (req'd) 2 (req'd)
Certified Specialist - System x and Blades 1 (req'd) 1 (req'd)
Technical Fundamentals - HV Storage 1 (req'd) 1 (req'd)
Certified Specialist - Systems Management 1 opt 1 (req'd)
Solution Specialist - Cloud Architecture 1 opt 1 (req'd)
Additional/Ancillary certifications (1 pt per test) 2 pts minimum 2 pts minimum
Total Skills Pts Required 14 pts 18 pts
Reference Criteria 2 (1 pt/ref) 3 (1 pt/ref)
Total Pts 18 pts + Revenue Requirement 21 pts + Revenue Requirement
Specialty web site to get started
© 2012 IBM Corporation
Building a smarter planet
17
2012 Incentives Landscape
17
Jan Feb March April May June July Aug Sept Oct Nov Dec
New Customer Bonus enhanced in February- Doubled Blade and Networking payments! 8% Blade & Networking Bid Codes plus 12% Blade and Networking net rev rebate or…Opt-in for All-Up-Front enhanced Bid Codes - 20% Blade and Networking Bid Codes (in lieu of back end 12% net rev rebates)
Express + Options
New Customer Bonus
Bla
de F
ocus
On-
Goi
ng O
ffer
s
Channel Eval, TAP, Public Sector Fee, Specialty, Specialty Elite, Pre-Sales Services, MMP, PartnerRewards
BladeCenter Foundation –10% net rev rebate incentive
System x PerformanceRewards
Business Partner Led enhanced in February- Doubled Blade and Networking Bid Codes!4% Bid Codes for Blade and Networking
Minimum Margin Program (MMP) Doubled for Blades through June 30th!