Align IBM with your business for IBM Business Partners

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The IBM ASL program

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  • WHAT IS THE CRITERIA FOR AN ASL SOLUTION?
    The partner’s value add components must add significant new functionality or combine or integrate the IBM software with one or more other products or services that add significant new functionality.
    WHAT TYPES OF PARTNERS ARE GOOD PROSPECTS?
    PRIMARY TARGET - Independent Solution Vendors (ISVs)
    Application Developers
    Systems Integrators with repeatable solutions
    Application, platform and infrastructure service providers
    Technology partners
    WHAT IS REQUIRED OF THE PARTNER
    Be a member of PartnerWorld
    Provide Level 1 and Level 2 Support
    Market and sell its solutions autonomously (OO and OI)
    Note: Though the partner may team with IBM sales, the Partner should not expect assistance with solution marketing or solution selling.
    WHAT ARE THE SPECIAL TERMS OF THE LICENSE UNDER ASL?
    The IBM SW Programs can be sold and used ONLY in conjunction with the Solution (restricted use)
    The ASL partner retains the IBM SW licenses. They do NOT pass to the end user
  • Why license IBM software technology as part of your solution? When you bundle and tune IBM software with your products, you are investing in the IBM software which enables you to leverage IBM’s significant investment in Information Management software and industry solutions. And you can achieve a competitive advantage with IBM’s brand equity – a known value to customers globally as the #1 information platform turning information into a strategic driver for innovation, business optimization and competitive differentiation in the industry according to Gartner in 2009. With IBM’s help you can integrate and tune your application on our software so your customers receive the high performance and reliability out of the box, without the need for tedious integration.
    You control your own sales cycle with ASL because you receive aggressive pricing for the IBM Software and you determine your own profit margin when you price your solution to win your business. You don’t have to negotiate any pricing with IBM, you own the contract.
    Reduce your own solution development costs by integrating IBM software to assemble and analyze information in your solutions. Leverage the IBM Information Management portfolio instead of developing your own applications wherever possible to get to market faster, and deliver optimized, differentiated and consistent solutions to your customers.
    IBM will help you broaden your market reach by opening up new channels and markets through the IBM client teams, IBM marketing, and the IBM PartnerWorld ecosystem available to our partners today.
    Which IBM software offerings are part of the Information Management Portfolio?
  • HOW DO I MAKE MONEY?
    Application Specific License (ASL) Launch Revenue Credit
    Launch revenue is revenue that an ASL partner reports and pays to IBM either as a pre-payment towards the revenue commitment in their contract or to reflect actual sales that they have made to their end user clients. Business partners will report and pay revenues to IBM in the location where the contract is held. Launch commission credit flows automatically through FMS to rep commission payment and retires quota. Reps and managers are not required to submit any documentation for these transactions in order to receive credit.
    http://w3-103.ibm.com/software/xl/portal/content?synKey=M733585I64626P78
    ASL Landing Commissionable Revenue Credit
    ASL landing occurs when the ISV sells their application, as well as restricted use of IBM SW products integrated with their application, to an end user customer. The end customer is the ASL landing account. All reps given CREV quota for selling this IBM middleware and responsible for the end customer will be compensated. All SWG reps and client reps and managers are eligible for ASL landing credit. Executives who are paid on financial revenue only are excluded from the program. There are no clip levels for transactions to apply to commission crediting and quota retirement.
    You can help promote the use of IBM middleware through our partners in the following ways:
    If you are a Client Executive (S&D) or Client Representative (S&D)
    Promote IBM SWG middleware name and strength with high level executives when discussing their software business needs
    Understand partner’s strategic direction and go-to-market strategy, how IBM middleware fits, and pass ASL leads to ASL sales team
    If you are a Software Client Leader, Industry Software Sales Representative or Specialty Software Sales Representative
    Help promote value of IBM middleware inside account
    Develop relationship with decision makers/influencers inside application development teams
    Assist in passing leads to ASL sales team
    .
    ASL landing commission credit is issued for transactional revenue only and retires quota.
    http://w3-103.ibm.com/software/xl/portal/content?synKey=M733585I64626P78
    PARTNERS ARE MORE PROFITABLE
    The partners get a discount on the IBM Software. That discount is the same, regardless of which customer the partner sells to. As such, the partner can price the solution (including the IBM elements) to maximize its profitability.
    Single contract presented by the partner for all the solution elements, including the IBM software, helps the partner close deals faster.
    END CUSTOMERS ARE SATISFIED
    Pre-integrated, pre-tested solution reduces implementation costs and reduces risks.
    One contact for the sale and support of the solution.
  • Build in Vivisimo into the pitch.
  • HOW DO I MAKE MONEY?
    Application Specific License (ASL) Launch Revenue Credit
    Launch revenue is revenue that an ASL partner reports and pays to IBM either as a pre-payment towards the revenue commitment in their contract or to reflect actual sales that they have made to their end user clients. Business partners will report and pay revenues to IBM in the location where the contract is held. Launch commission credit flows automatically through FMS to rep commission payment and retires quota. Reps and managers are not required to submit any documentation for these transactions in order to receive credit.
    http://w3-103.ibm.com/software/xl/portal/content?synKey=M733585I64626P78
    ASL Landing Commissionable Revenue Credit
    ASL landing occurs when the ISV sells their application, as well as restricted use of IBM SW products integrated with their application, to an end user customer. The end customer is the ASL landing account. All reps given CREV quota for selling this IBM middleware and responsible for the end customer will be compensated. All SWG reps and client reps and managers are eligible for ASL landing credit. Executives who are paid on financial revenue only are excluded from the program. There are no clip levels for transactions to apply to commission crediting and quota retirement.
    You can help promote the use of IBM middleware through our partners in the following ways:
    If you are a Client Executive (S&D) or Client Representative (S&D)
    Promote IBM SWG middleware name and strength with high level executives when discussing their software business needs
    Understand partner’s strategic direction and go-to-market strategy, how IBM middleware fits, and pass ASL leads to ASL sales team
    If you are a Software Client Leader, Industry Software Sales Representative or Specialty Software Sales Representative
    Help promote value of IBM middleware inside account
    Develop relationship with decision makers/influencers inside application development teams
    Assist in passing leads to ASL sales team
    .
    ASL landing commission credit is issued for transactional revenue only and retires quota.
    http://w3-103.ibm.com/software/xl/portal/content?synKey=M733585I64626P78
    PARTNERS ARE MORE PROFITABLE
    The partners get a discount on the IBM Software. That discount is the same, regardless of which customer the partner sells to. As such, the partner can price the solution (including the IBM elements) to maximize its profitability.
    Single contract presented by the partner for all the solution elements, including the IBM software, helps the partner close deals faster.
    END CUSTOMERS ARE SATISFIED
    Pre-integrated, pre-tested solution reduces implementation costs and reduces risks.
    One contact for the sale and support of the solution.
  • Why license IBM software technology as part of your solution? When you bundle and tune IBM software with your products, you are investing in the IBM software which enables you to leverage IBM’s significant investment in Information Management software and industry solutions. And you can achieve a competitive advantage with IBM’s brand equity – a known value to customers globally as the #1 information platform turning information into a strategic driver for innovation, business optimization and competitive differentiation in the industry according to Gartner in 2009. With IBM’s help you can integrate and tune your application on our software so your customers receive the high performance and reliability out of the box, without the need for tedious integration.
    You control your own sales cycle with ASL because you receive aggressive pricing for the IBM Software and you determine your own profit margin when you price your solution to win your business. You don’t have to negotiate any pricing with IBM, you own the contract.
    Reduce your own solution development costs by integrating IBM software to assemble and analyze information in your solutions. Leverage the IBM Information Management portfolio instead of developing your own applications wherever possible to get to market faster, and deliver optimized, differentiated and consistent solutions to your customers.
    IBM will help you broaden your market reach by opening up new channels and markets through the IBM client teams, IBM marketing, and the IBM PartnerWorld ecosystem available to our partners today.
    Which IBM software offerings are part of the Information Management Portfolio?
  • Align IBM with your business for IBM Business Partners

    1. 1. © 2011 IBM Corporation Align IBM with YOUR business (The IBM ASL Program) for IBM Business Partners Stephen Thompson – European ASL program manager
    2. 2. © 2011 IBM Corporation 2 Probing Questions for a potential partner to consider  Do you want the middleware that supports your application to become an integral part of your application?  Do you want to be able to present a single, bundled, price to your customers?  Do you want a consistent price and know that price for at least one year or longer?  Do you want to leverage the IBM brand for higher end clients?  Do you want to generate revenue and profit on each sale for the middleware that your application drives?  Do you want a single sales force talking to the customer rather than your reps and middleware reps from multiple companies?  Do you want to provide a single point of contact for exceptional customer support after you sell your application to the client?  Do you want to be invited and participate in IBM events with clients?  Do you want to continue to buy from companies that compete with you or would you rather work with a company that supports you?
    3. 3. © 2011 IBM Corporation 3 What Is ASL? An agreement under which partners: - Bundle IBM Software with their value-add products and services - Sell as a total solution to their end customers anywhere in the world* *Certain countries may be excluded based on IBM's exclusive distribution arrangements Level 1 & 2 Support provided by the partner Restricted-Use License held by partner Known WW IBM SW price to the partner for the duration of contract Primary target partner: Solution Partners The IBM SW components must be sold as part of total solution
    4. 4. © 2011 IBM Corporation 4 What It is: ASL vs Resell Distinctions Resell - PPA No pre-integration Separate buying decisions for partner solution and IBM SW Separate pricing to the client for the solution components No requirement IBM SW be sold as part of a solution Full use license License held by client Pricing varies by client’s PPA level L1/L2 Support provided by IBM SWG Channels mission Integrated Bundle of partner’s application (services) and IBM SW IBM Software may be visible One price to client for total solution IBM SW must be sold as part of solution License restricted to use within solution License held by partner Pricing to partner for contract duration L1/L2 Support provided by partner SWG Channels mission Application, Hardware or Services SOLUTION IBM Software Application and Services SOLUTION IBM Software ASL
    5. 5. © 2011 IBM Corporation 5 Why License IBM Software as Part of Your Solution? IBM products may be visible Application-Specific Licensing from IBM  Present total solution offering to the customer  Bundle and tune IBM software with their products – with IBM help – so their clients get a low cost of ownership, high performance and reliability out of the box  Control their own sales cycle – deliver and price your solution for clients without having to coordinate with IBM or IBM reseller/distributor  Sell worldwide  Reduce development and support costs – deliver an optimized, differentiated and consistent solution to your customers ASL – What’s in it for an IBM Partner?
    6. 6. © 2011 IBM Corporation 6 ASL value for both partners and end-customers Partner Value  Improves profitability – Known cost of the IBM SW for the duration of the contract – Price to the partner is the same, no matter who the customer is, or where they are located in the world  Accelerates sales cycle – one seller, total solution Joint sales activities with IBM – Target specific accounts to sell partners solution.  Strengthens account control – avoids involvement of competing middleware providers  Speeds time to market and reduces development costs – IBM developed middleware; partner can focus on their value-add End Customer Value  Preference to buy total solution  One contract. One solution  One contact for sales, service, support  Low cost of ownership, high performance and reliability out of the box
    7. 7. © 2011 IBM Corporation 7 ASL Contracts SOLUTION Your Products listed in the Transaction Document that you must include in your solution 1. Base Agreement 2. Transaction Document Services which add significant new functionality or combine or integrate our software with one or more other products YOUR VALUE ADD COMPONENTS The offering created when our Software and your Value-Add Components work together. + Actual products included in actual solutions. An application program that is generally available for commercial customers. A repeatable offering. IBM SOFTWARE = If disputed or exception requested: SOLUTION GOVERNANCE BOARD &
    8. 8. © 2011 IBM Corporation 8 Sell Business Analytics and Information Management together for largest growth potential 680+ Business Partners certified on Business Analytics & Information Management 1: Comparing revenue generated by authorized BPs across BA and IM through 8/31/12 Cross Selling improves revenue potential The revenue selling BOTH Information Management Business Analytics IBM BPs selling OR Information Management Business Analytics
    9. 9. © 2011 IBM Corporation 9 ASL – What will be in your solution ? Partner Value As an ASL IBM Business Partner, you can bundle your solution with proven industry leading IBM products that are based on open standards. The IBM software portfolio focuses on delivering solutions that meet your unique business needs now and into the future. IBM Business Analytics software IBM Industry Solutions software Information Management software IBM Collaboration Solutions (Lotus software) IBM Rational®: Software management IBM Tivoli®: Service management IBM WebSphere®: Integration and optimization IBM software helps clients build the capabilities to transform their industries and, ultimately, the world. What’s your vision for your organization? Your industry? Your world? Getting the right software will be important.
    10. 10. © 2011 IBM Corporation 10 IBM products may be visible Application-Specific Licensing from IBM  Purchase Commit – Partner makes revenue commitment. Provides highest discounts and most flexibility with Ts & Cs and overall pricing. Prices fixed for contract term.  Monthly Rental SaaS / Cloud – For partners seeking to build SaaS / Cloud offerings for their clients, and requiring monthly fixed term license ordering.  ASL Distributor Contract – Agreement between IBM & Distributor. The distributor recruits ISVs, extends reach to smaller partners. Distributor offers Tier 2 ASL partners flexible credit, simple contracting, administration, education and support.  Percentage of Revenue - A new licensing model designed to help small to mid-market ISVs go-to-market with the value- add of Cognos 10 BI ASL – Contract Models
    11. 11. © 2011 IBM Corporation 11 Reminder: Business reason for ASL Business Model  Bundle IBM software in BP solution  Receive consistent pricing over life of the contract  Price solution without having to coordinate with IBM  Deliver solution worldwide with single ASL contract Key IBM ASL Offerings:- IBM Business Analytics IBM Industry Solutions Information Management IBM Collaboration Solutions (Lotus software) IBM Rational®: Software management IBM Tivoli®: Service management IBM WebSphere®: Integration and optimization Business Model  Bundle IBM software in BP solution  Receive consistent pricing over life of the contract  Price solution without having to coordinate with IBM  Deliver solution worldwide with single ASL contract Key IBM ASL Offerings:- IBM Business Analytics IBM Industry Solutions Information Management IBM Collaboration Solutions (Lotus software) IBM Rational®: Software management IBM Tivoli®: Service management IBM WebSphere®: Integration and optimization ASLASL Success Factors  Solution expertise  Sales strategy  GTM plan How IBM Helps  Enablement support  Sales tools  Marketing help  Brand acceptance Success Factors  Solution expertise  Sales strategy  GTM plan How IBM Helps  Enablement support  Sales tools  Marketing help  Brand acceptance Revenue & Profit  Revenue from: • BP application software • BP implementation services • BP application & IBM software L1/L2 support  Profit based on: • IBM contractual discount • BP application software • BP implementation services BP Investment  Software development skills  IBM technology skills for support  Industry/application expertise  Co-marketing funding and execution Business Value  Packaged solution for clients has more function and single point of support  Less interference from middleware vendors in your sales cycle  Deliver integrated optimized solution with faster time to value Revenue & Profit  Revenue from: • BP application software • BP implementation services • BP application & IBM software L1/L2 support  Profit based on: • IBM contractual discount • BP application software • BP implementation services BP Investment  Software development skills  IBM technology skills for support  Industry/application expertise  Co-marketing funding and execution Business Value  Packaged solution for clients has more function and single point of support  Less interference from middleware vendors in your sales cycle  Deliver integrated optimized solution with faster time to value Business OutcomeBusiness Outcome
    12. 12. © 2011 IBM Corporation 12 Our partners generally want to move quickly Initial Meeting Middleware Selection Sign ASL Agreement Sell and Make Money Complete Enablement General Availability Today 2-10 weeks 3-6 months 6-12 months+ Fit and Function evaluation chris.clancy@uk.ibm.com mark_simmons@uk.ibm.com

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