The document discusses IBM's Application-Specific Licensing (ASL) program, which allows business partners to bundle IBM software with their own applications and services into an integrated solution. The ASL program provides partners with benefits like consistent pricing over the life of their contract, worldwide sales reach through a single agreement, and joint sales and marketing support from IBM. The document outlines various ASL contract models and licensing options that partners can choose from to best meet their business needs. It also highlights the business value the ASL program provides to partners in terms of increased revenue, profitability, and competitive differentiation through optimized bundled solutions.

1. Align IBM with YOUR business
(The IBM ASL Program)
for
IBM Business Partners
Chris Clancy – ASL Sales
Mark Simmons – ASL Sales
Jodie Scarr – ASL Sales
© 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?
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© 2011 IBM Corporation

3. What It is: ASL vs Resell Distinctions
Resell - PPA
Application,
Hardware or
Services
SOLUTION
IBM
Software
ASL
Application
and
Services
SOLUTION
IBM
Software
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
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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
© 2011 IBM Corporation

4. ASL – What’s in it for an IBM Partner?
Why License IBM Software as Part of Your Solution?
 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
IBM products may be visible
Application-Specific Licensing from IBM
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© 2011 IBM Corporation

5. 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
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© 2011 IBM Corporation

6. ASL – Contract Models
 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.
IBM products may be visible
Application-Specific Licensing from IBM
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© 2011 IBM Corporation

7. Perpetual v Monthly Rental
Example – eCommerce Solution
IBM Software @ SRP = £100K for license & £22K for on-going support
Perpetual License = £55K license and £13K for on-going support
Monthly Rental = £2,542 / month
Perpetual
Monthly Rental
Own s/w entitlement.
True pay as you go.
Re-use s/w for other
clients.
Scale up / down
depending on
monthly usage.
Still sell monthly to
your clients.
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Op Ex v Cap Ex
© 2011 IBM Corporation

8. Reminder: Business reason for ASL
Business Outcome
Revenue & Profit
 Revenue from:
• BP application software
• BP implementation services
• BP application & IBM software
L1/L2 support
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
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Success Factors
 Solution expertise
 Sales strategy
 GTM plan
How IBM Helps
 Enablement support
 Sales tools
 Marketing help
 Brand acceptance
 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
© 2011 IBM Corporation

9. Introducing
ArrowSphere
xSP Central
A portal that simplified
management of vendor software
licence programmes for service providers
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© 2011 IBM Corporation

10. So why xSP Central?
Service Providers gain a single entry
point to manage all Cloud Service
Provider software licences.
Build and model services using SW,
HW and business costs.
Which brings clarity to the cloud
turning theory into reality.
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© 2011 IBM Corporation

11. Design, deploy & report
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© 2011 IBM Corporation

12. Our partners generally want to move quickly
chris.clancy@uk.ibm.com
mark_simmons@uk.ibm.com
6-12 months+
Complete
Enablement
General Availability
Sell and Make
Money
3-6 months
Sign ASL
Agreement
Fit and Function
evaluation
2-10 weeks
Today
Initial Meeting
Middleware Selection
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© 2011 IBM Corporation