IBM Smart Cloud

SmartCloud
How New SaaS Changes Will Help You Make
Money with Cloud in 2012
April 2012

© 2011 IBM Corporation

Your Presenter

Brian Donovan
Business Unit Executive - SmartCloud for Social
Business Channel Sales
Business Unit Executive – ICS ASL Sales

m. +1 303 596 4900
o. +1 303 331 4600
brian.donovan@us.ibm.com

2 © 2012 IBM Corporation

Review Agenda
● Momentum / Market Overview
● Flagship Offering, Demo and Portfolio of Services
● New SaaS Parts, Order Processing (PGST) with Demo, Pricing, and eCommerce
● New Product Based API's
● Contracting Type – PA or ASL? A bit about ASL and ASL API's
● Cloud Direction for 2012
● New Compensation Models, “The Rule of 78”
● TCO Consideration
● Tools and Resources
● Q/A


● Q/A


Thank you for a stellar year

● Over 200% growth YtY in partner ● 76% YtY increase in active resellers
channel revenue ● Triple-digit growth in 3 geographies
● > $100k deals total >$1M (North America, NE Europe, SW
● Birmingham Met, Brunswick, Europe)
Apave, Colgate, Shriram, and ● More signings in one quarter than
more
any other in history

● Leading Partners

Revenue Volume
Insight FreshTL
Logicalis Acuity
ASI Informatique RealConnections
Micro Strategies Silverside
IntraVision Silanis
Wipro ASI Informatique
VAR Group EdgeGuide

Customer Momentum
● 35 new references in 2011
● Find them on Partnerworld http://ibm.co/A4PWgf
● Spanning industry, geography, enterprise and SMB


Market Analysis – Cloud Computing and SaaS

 Corporate and enterpris e
$126B by the end of 2012 represent 50% of market
Cloud >9% of total IT spend by 2015
 CAGR of 25% through 2015

Software as a Service (SaaS)  $20B by the end of 2012  47% of organisations have
adopted S aaS 75% intend to do
 CAGR of 25% through 2015
so over the next few years
$126B

B us ines s
Proces s es

Software as
a Service
$20B
Infras tructure 50% of total 30% of total
$47B S ervices cloud market cloud market
is in is in
corporate collaboration
C omponents
and s olutions
enterpris e
segments
2008 2012

Market Analysis – SaaS Collaboration
Top SaaS solutions through 2012 - Global
User Base ALL <1000 1000-5000 >5000
Collaboration Technologies 1 1 1 1
Human Resources / Benefits
Admin 2 2 1 2
Customer Services and Support 3 3 5 4
Payroll 4 4 10 5
 Collaboration represents Finance & Accounting 5 5 4 7

the number 1 SaaS solution BI & CPM
Time and Labour Mgmt
6
7
8
9
7
3
3
8
in 2012 across all segments Salesforce Automation 8 6 9 10
Talent and Performance Mgmt 9 13 6 6
 Organisations see SaaS E-Commerce 10 7 14 13
Procurement & Sourcing 11 15 15 8
tools as an integrated Supply Chain Mgmt 12 11 13 10
ecosystem of solutions Supplier Relationship Mgmt 13 14 8 14
Mobility Mgmt 14 10 11 12
ERP / Manufacturing 15 11 11 16
Governance, and Risk Mgmt 16 15 15 17
Treasury and Cash Mgmt 17 17 17 15
Relative rank of top 8 SaaS solutions 2012 Product Lifecycle Mgmt 18 18 18 18


Market Analysis – SaaS Collaboration
Collaboration tool purchasing intentions 2011 – heat map
User Base 100-300 300-500 500-1000 2500-5000 OVER 5000
 Extremely strong purchase Email 71.8% 72.8% 69.3% 59.9% 56.5%
intentions in all market Web conferencing 67.6% 69.7% 69.5% 69.0% 63.9%
segments and across the Calendaring 64.3% 72.5% 64.1% 57.3% 48.9%
collaboration portfolio Office Suite 69.0% 67.2% 61.2% 51.5% 58.8%
Project Management 66.1% 68.2% 66.8% 59.1% 56.3%
 Market ‘Sweet Spot’ is Business Collaboration 62.0% 67.0% 64.0% 59.4% 57.9%
organisations with 100-1000 Forums 56.2% 61.9% 56.3% 54.9% 47.1%
user base Communities 57.7% 62.2% 56.9% 56.4% 48.9%
Social Networking 55.9% 58.8% 54.4% 53.0% 43.2%
 Particular strength in 300-500 Whiteboards 54.8% 62.9% 58.5% 55.5% 44.8%

user base organisations Blogs 54.6% 60.3% 52.3% 52.1% 44.5%
Content Tagging 54.7% 63.2% 57.2% 54.5% 44.4%
Wikis 51.6% 56.8% 52.5% 54.2% 45.9%

100-300 300-500 500-1000 2500-5000 OVER 5000
Aggregated Total 60.5% 64.9% 60.2% 56.7% 50.9%

Market
‘Sweet Spot’


Why Customers Bought SaaS Services in 2011

To Extend their Reach...

Across Geographies
● Regardless of IT footprint

To New Audiences
● Seamlessly, securely connecting to customers,
partners, experts outside your corporate network

Supporting New Demographics
● Meeting expectations of a new workforce generation

To Manage a Mobile Workforce
● “We couldn't possibly keep up with the rate of mobile
device and browser changes using our own IT staff.
That's one reason for us to move to cloud.”


… While Maintaining Flexibility and Control

● Protect and Monitor Sensitive Assets
● Choose the Rate and Pace of Adoption
● Mitigate Impact to End Users
● Bridge Applications to the Cloud

Experience the value of social business, limiting startup time and cost


Cloud is a Priority for Our Customers and IBM

One of 4 key growth
plays on IBM's 2015
roadmap/plan

80% of Fortune 500 use
IBM Cloud Computing

IBM SmartCloud - Helping
our customers rethink IT
and reinvent business

Foundations Services Solutions


Announcing IBM SmartCloud for Social Business

● Aligning LotusLive with IBM
SmartCloud

● Delivering a portfolio of
Social Business Solutions
in the cloud


Featuring a New Web Presence

ibmcloud.com/social

■ Simple to Navigate

■ Intuitive

■ Coming Soon


New Service Names

Category Lead Offering Bundles Ala Carte / Add-ons
●Connections
●Meetings

IBM ●Engage Advanced
●Notes

●iNotes
SmartCloud IBM SmartCloud (lead with)
for Social Engage
● Engage Standard
Business ●Additional Storage
●Traveler

What Happens to the URLs

URL Behavior as of 3/3

ibmcloud.com Parent Site
Lists all IBM SmartCloud SaaS Solutions

ibmcloud.com/social New site
3/3 – Site launch in English only
~4/3 – Site available in 22 languages

www.lotuslive.com Current Site
Remains active in parallel with new site.
Then, will auto-redirect to new site

apps.lotuslive.com Services
Remains as is.
In future, changes to a generic domain to
enable resellers to private label


● Q/A


Flagship Offering: IBM SmartCloud Engage
● Enterprise-class, security-rich, integrated social and messaging services
● Flexible client options – mobile, browser, tablet, rich client

People Communities

Activities Files

Meetings Events

Chat eMail

Survey Forms


$19-49/user/month $15/user/month

$49/user/month $13.25/user/month*
*Dropbox for teams, $795/year for 5 users

IBM SmartCloud for Social Business
$8 USD per user/per month
$19-49/user/month $15/user/month
● Collaborate quickly and easily beyond the firewall

● Instantly host online meetings (199 attendees), store
and share files and manage projects seamlessly in
the cloud

● Invite guests—at no additional charge— to participate
in your online projects and create communities to
make collaborating even easier

● Help improve productivity, deepen customer
relationships, generate new ideas faster, and enable a
more effective workforce

$49/user/month $13.25/user/month*
*Dropbox for teams, $795/year for 5 users

What you get for $8USD/user/month!

| © 2012 IBM Corporation

DEMO


Boundless collaboration / social networking

 IBM Smart Cloud Collaboration is a true collaboration tool,  Alternative products restrict collaboration to a users own
without boundaries organization
 For one price users can collaborate with anyone across multiple  Despite a similar price, users are only able to fully
organizations using a range of rich social networking and collaborate with a limited scope of users
business tools
 To collaborate beyond the organization, users still have to
 Smart Cloud Collaboration is designed to build communities rely on email, or other disconnected platforms – increasing
and networks that drive efficiency, collaboration, innovation and overhead, out of date file versions and use of multiple
relationships across organization boundaries resources for the same data
 Free guest connections

Boundary Boundary Boundary
development
community
customer
user x’s user y’s user z’s
council
$8 / month company company company

client
client
$0

user’s
company
supplier
community
vendor $10 / month $10 / month $10 / month
$0


●
Upsell opportunities using IBM SmartCloud platform
●
Opportunity to provide users with enhanced Social Collaboration capabilities


SmartCloud Social Mobile?
A integrated set of mobile applications providing email, contacts, calendar, instant
messaging, meetings, file sharing, application integration, and documents.

SmartCloud Notes

SmartCloud iNotes

SmartCloud Engage

SmartCloud Meetings

SmartCloud Connections

Windows
Mobile Blackberry iPhone Android Nokia

● Q/A


SaaS Concepts and Terminology
SaaS IPLA-Licensed Software (OTC)
License Right-to-Use service (opex) Perpetual or Term (capex)
Quote “value” TCV (total contract value) displayed, Total quote is due
payments vary
Term of sale 1 to 60 months (typically 3-5 years) Typically license with 12 months
often sold monthly S&S

Revenue Recognition Subscription (term of the agrmt) License (upfront)
On-demand items (as billed) S&S (amortized over 12 months)
Remote service (end of 90 days) Term (amortized over 12 months)

Governing Agreements Passport + ToU (Terms of Use) + Passport + IPLA + LI
SLA Terms (if applicable)

Renewal Yes (Service), same price as original Yes (S&S),
sale
Part Structure Part types vary as needed by offering Lic+S&S, Renewal, Reinstate
Opt: Tradeup, Init & Subsq Term

Passport Points Not applicable – no points generated Applicable - Sale generates PA
points

Passport Band Prices Same price in all Bands (including Generally sloped plus Academic
Gov/Academic) and Government

Tiered Pricing Yes Only via RVU, only by exception
28

New SmartCloud SaaS Parts
● IBM Business System Enhancements Reduce Part Count by 50%
● More flexible system structures

● From 109 parts - down to 59

● Subscription Parts
● Tracked per user, per month

● Overage – billed when subscription level has been exceeded

● Flexible Billing Frequency Options
● Up Front, Monthly, Quarterly, Annually

● IBM bills the VAD/VAR who then bills the end customer

● VAD/VAR incentives are paid on billings

● Auto-Renewing
● Unless cancelled, contract “auto renews” for another subscription period

● Existing Customers
● Will be converted to the new parts upon renewal – no need to move customers mid-term

Other New SaaS Enhancements
Enhancement Definition Example
Trade-Up Replacing an existing service with a different service Customer subscribes to Connections for 50
of equal or greater value, and co-terming the end employees. After 6 months, customer decides to
date to the existing service upgrade 10 of the accounts to Engage.

Add-On Quantity Increasing the quantity on a service. The quantity Customer subscribes to SmartCloud Engage for 50
(same tier) increase does not push the quantity into a new price employees billed monthly for 3 years, After 1 year
tier. The end-date is co-termed to the existing service customer wishes to add 30 more seats for the
remaining 2 years of the contract.
Add-On Quantity Increasing the quantity on a service – where the new Customer subscribes to SmartCloud Engage for 90
(tier change) quantity pushes the quantity into a new price tier. The employees billed monthly for 3 years, After 1 year
end-date is co-termed to the existing service. customer wishes to add 30 more seats for the
remaining 2 years of the contract, which pushes
them into the first discount tier (10%).
Add-On Service Adding an optional or complimentary service under Customer subscribes to SmartCloud Notes for one
the same SaaS offering to an existing subscription, year and wants to add Traveler for a subset of users
and co-terming the end date to the existing service. 2 months after the contract period.

Co-Term Adding a service to a charge agreement from a Customer subscribes to SmartCloud Engage. They
different SaaS offering and aligning the end-date with want to subscribe to Lombardi Blueprint as well, but
an existing, unrelated service. they want their Lombardi service aligned to the
Now everything coordinates to end of month. same end date as Engage.

Invoice Alignment Adding a service to a charge agreement from a Customer subscribes to SmartCloud iNotes with
different portfolio. If the invoice schedule of the monthly billing. They want to subscribe to Sterling
service aligns with an existing service, both will as well, with monthly billing. They want a
appear on the same invoice. The service is not consolidated invoice with both services.
co-termed.


Updated TOU

New Auto-renew
clause

New names New EU data
IBM SmartCloud privacy statement

With New Price Tiers
Lower-touch seat volume discounting that….
• Arms Sales with price points that can win business
• Reduces number of bids that unnecessarily route to Field Pricing or Brand Pricing
• Promotes profitability
• PA Band discounts N/A for SaaS
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
Seats 1-100 101-1,000 1001-5,000 5001-10000 10,001+
Discount: 0% 10% 15% 20% 25%

Example: SmartCloud Engage Advanced

List Pricing by Tier: Engage Advanced (Engage+Notes)

$12.00
$10.00
$10.00 $9.00 $8.50
$8.00 $7.50
$8.00
$6.00
$4.00

$2.00
$0.00
Tier 1 Price Tier 2 Price Tier 3 Price Tier 4 Price Tier 5 Price

2011 vs 2012 Pricing Structure – Simpler Discounting Approvals
●
With 2012 tiered pricing structure, field sales management can approve price points that could
only be approved by pricing in 2011
●
Streamlined special bid approval process

LL Notes Plus Engage: 2011 Engage Advanced (Engage+Notes): 2012

2011 List 2011 after Discount* 2012 List 2012 after Discount*

$10.00 $10.00 $10.00 $10.00 $10.00 $10.00
$9.00
$8.50
$8.00
$7.50 $7.50 $7.50 $7.50 $7.50 $7.50 $7.50
$6.75 $6.38
$6.00 $5.63

(<=100) 101-1000 1001-5000 5001-10,000 10,001+ (<=100) 101-1000 1001-5000 5001-10,000 10,001+
Tier Tier

*Field Sales BUE 25% discount delegation


Enhanced Order Processing Options
For Business Partners – New Partner Guided Selling Tool
● Guides the business partner through the options associated with a SaaS quote
● Provides a coordinated process for VARs and VADs to work together to build quotes, place special
bids, place orders, track service activation, and manage the customer billing.

New SaaS configurator - makes it easy for a reseller to build sales quotes and place orders

Build Special Bid Place Submit ToU Service Rating and
Quote (if needed) Order provisioning info Acceptance Activation Billing

Enhanced Order Processing Options
For Consumers – New eCommerce Site


Supported Plans / Parts for Ecommerce

● The following parts are supported via eCommerce
● IBM SmartCloud Engage Advanced

● IBM SmartCloud Engage Standard

● IBM SmartCloud Connections

● IBM SmartCloud Meetings (enterprise deployment, host +199)

● IBM SmartCloud Notes

● All other orders must be placed outside of eCommerce
● iNotes

● Hybrid mail

● BES

● Additional storage for Connections

● Variants of SmartCloud Engage and Meetings (e.g. non-enterprise deployments, host +14, etc.)


● Q/A


We've Been Busy – New Capabilities from last year

■ New Capabilities
‒ Enterprise governance
‒ Richer mobile support – meetings, messaging
‒ Latest social File sharing from IBM Connections
‒ Robust new Messaging administration tools
‒ Integrated Apps enterprise deployment
■ ISV Partnerships
‒ Trilog, Teampoint

■ Social Business Toolkit for LotusLive
‒ Available now on IBM DeveloperWorks

New Social Business Toolkit – PRODUCT API's

A single toolkit for integrating apps with the IBM Social Business offerings
● Easy to use Web based tool for integration with LotusLive and IBM Conections

APIs
● OpenSocial REST APIs and UI extension points

Standards-based security framework (OAuth)

People APIs Files APIs Meetings APIs
Use OpenSocial APIs to Using the CMIS APIs Start and Stop meetings
get access to Profiles and you can manipulate the from your application and
Contacts data powerful LotusLive files get custom meeting reports
store from applications
UI Extensions Navigation API
Communities APIs Reuse the LotusLive
Add your own custom
Create and manage navigation bar in your
actions to the LotusLive
communities application for a consistent
UI
look/feel

Available on IBM Developer works https://www.ibm.com/developerworks/social/


Public or Private Development
 IBM SmartCloud APIs are accessible to User Companies or ISVs for extension to
another cloud or on-premises service or application.
 There are two types of Developers
— Private Developers :
● These type of developers will be building an application or extension for use only by

their Organization or Company.
● Development does not require communications with the IBM SmartCloud Partner

Program
— Public (or ISV) Developers:
● These type of developers will be building an application for sale to the public

● Public release coordinated with IBM SmartCloud Partner Program to ensure proper

resellers, security and marketing requirements are met
● More details on this process later in presentation


What are the IBM SmartCloud Integrations Capabilities

 Inside-Out Integrations
– Expand capabilities of IBM SmartCloud to include your own offerings
– Extend the IBM SmartCloud interface to include jumping off points to your functions.
– IBM SmartCloud Extensions
– Example : Skype, eXpresso

 Outside-In Integrations :
– Expand your offering with IBM SmartCloud functionality
– Utilize the functions of IBM SmartCloud as an extension of your offerings.
– Embed IBM SmartCloud files functionality natively in your own application
– IBM SmartCloud API's
– Example : SalesForce, Trilog

 Hybrid Integrations
– Integrate On-Premise and Cloud Solutions
– Domino Integration

Outside - In Integrations - Business Value

IBM SmartCloud social business and external collaboration into applications
via APIs
— Richer interactions for streamlined decision-making
— Bring more people and resources to the challenge or opportunity
— Examples: CRM, procurement

APIs
Company

Cloud
APIs

Inside - Out Integrations : Business Value

 Business apps depth into IBM SmartCloud
— Online collaboration services can be enhanced for specific business
processes and industry challenges
— Examples: collaborative contract creation, review and electronic signatures

s
API Company
UI
Extensions

Cloud

IBM SmartCloud Integrated Applications - Infuse Social Capabilities
into Business Processes

®

tm

Selling B2B Commerce Digital Signing Archiving

Scheduling Collaborative
Talking
Meetings Doc Editing


Examples of API calls

Files Meetings Communities
● Get a list my files ● Start a meeting ● Create a community
● Get a list my collections ● Get meeting details ● Update a community
● Get file details ● Join a meeting ● Delete a community
● Download a file ● Create bookmarks on a
● Upload a file Contacts community
● Get shares for a file ● Get users contacts
● Create a sub-community
● Share file with someone ● Get collections of users
● Create invitations to join a
connected to user community
● Create a community forum topic
Activities
Profiles
● Add, Update or delete
● Start activity community members
● Update or Delete activity ● Get profile record or contact
record for a user
● Searching activities
● Get profile record for requestor
● Add new entry
● Get profile details
● Create a new To-do


Tools to Aid Development

 Social Business Toolkit
— Set of extensible tools and resources for developers who want to incorporate
social capabilities into their applications and business processes

 IBM SmartCloud Wiki
— Wiki to provided help and support for using and administering IBM SmartCloud

 API Explorer
— Utility to learn about and experiment with IBM SmartCloud API's without writing
any code

 IDR Workshop
— Watch Partnerworld for the next workshop for hands on education (Feb 2012)


Onboarding process for ISV Applications

 Register with PartnerWorld at
— http://www-2000.ibm.com/partnerworld/pwhome.nsf/weblook/pub_join_allBPs.html

 Get a Business Partner Demo Account :
— http://www.ibm.com/partnerworld/page/isv/IBM SmartCloud

 Begin development using your Business Partner Demo account / company

 Once you are ready to deploy publically, contact the IBM SmartCloud Partner Team
(LLP@us.ibm.com) for:
— Advanced or Premier PartnerWorld Account
— Security validation
— Usability Testing
— Marketing requirements
— IBM SmartCloud Catalog listing


What is Passport Advantage?
Passport Advantage and Passport Advantage Express are simple, comprehensive IBM offerings that cover
software license acquisition including Fixed Term Licenses and Software Subscription and Support product
upgrades and technical support under a single, common set of agreements, processes and tools. Passport
Advantage is designed for larger enterprises, while Passport Advantage Express, a transaction-based offering, is
designed to meet the needs of medium-sized businesses.

Fundamentals of Passport Advantage -
● Includes Software Subscription and Support (technical support and product upgrades) with each new license.
● Provides Selected Support for certain Open Source and other non-warranted code.
● Provides comprehensive and flexible upgrade coverage.
● Streamlines budgeting for software upgrade and migration costs.
● Provides secure access to Passport Advantage Online.
● Incorporates flexible, easy-to-access, responsive, cross-platform customer support from IBM.
● Provides access to IBM software technical support for all of a customer's designated IT staff.
● Provides 24x7 access to support resources for business-critical outages.
● Provides self help via the Internet.

Partner Types include -
● Value Added Resellers
● Value Added Distributers
● System Integrators
● Independent Software Vendors

What is ASL?
An IBM contract in which the Business Partner acquires IBM software, bundles it with the Business
Partner’s own software & services, and sells that bundled solution offering to end customers.

Fundamentals of ASL -
● End-customer may / may not know that the IBM middleware is bundled with the solution
● IBM middleware price is not visible to the end-customer
● Solution support and maintenance is provided by the Partner

● The customer calls the Partner for L1/L2 support.
● IBM software license/warranty stays with the Partner - It is not transferred to the end user

● Provides end-customer restricted use of IBM middleware, for use with the partner’s application
● BP owns the relationship completely – less dependant on IBM sellers

● BP presents single contract for the solution
● Worldwide Distribution

● Licenses can be deployed in any geography
● ASL Business Partner buys at a discounted rate, generally directly from IBM (geo dependant)

Partner Types include -
● SaaS Providers (Public or Private Cloud)
● Technology Partners (HW/Device Mfg)
● Telecoms
● Independent SW Vendors (ISVs)
● Application Service Providers (ASPs)
● Application Developers

SWG Go-to-Market Models -
Resell - Open Distribution
OEM Application Specific License
(Passport Advantage)
Description  Deep embed product integration of  Integration of IBM SW in partner’s ● Controlled distribution,

IBM SW in the partner’s solution. solution model. Degree of integration minimum of 3 certifications are
Solution cannot be disassembled of IBM SW can vary. required, two sales and one
into component parts. technical.
 IBM brand is not visible to the  IBM brand is visible to the client within
client within the partner’s solution. the partner’s solution.
 Special contract terms beyond ● IBM brand is primary.

ASL to reinforce embedded focus.  Collaboration is between partner and
 Collaboration is between partner IBM (or VAD) channel sales teams.
and IBM brand labs & bus dev
teams.
 Deeper license discounting than
ASL given more partner
responsibility

Partner  Value add components  Value add components  No criteria for Value add
requirements  L1/L2 support  L1/L2 support by IBM
 Restricted license to end user via  L1/L2 support  Full use license to the
partner solution license; partner customer
retains IBM license  Restricted license to end user via  Price determined by customer
 WW price and sales territory partner solution license; partner PPA grid
 Partner owns S&S renewals retains IBM license  S&S renewals competitive

 WW price and sales territory

 Partner owns S&S renewals

Application Specific Licensing (ASL) -

 An agreement under which partners Integrate and bundle IBM Software with their
value-add software and services and sell as a total solution to their end customers
anywhere in the world*

OBJECTIVE
Application Specific Licensing aims to
create an autonomous solution sales
channel

ASL partner is responsible for -
Solution marketing (OI)
Solution selling (OO)
Though the partner may team with IBM sales, the
Partner should not expect assistance with
solution marketing or solution selling.

*Certain countries may be excluded based on IBM's exclusive distribution arrangements


Guidelines -
1. Base Agreement
2. Transaction Document: Purchase Commit, Earned Discount, Percent of
Revenue, Monthly Rental

SOLUTION IBM SOFTWARE YOUR VALUE ADD COMPONENTS

= + Your Products listed in
the Transaction
Document that you must
&
Services which add
significant new
functionality or combine
The offering created include in your solution or integrate our software
when our Software with one or more other
and your Value-Add Examples… products
Components work An Application* and/or coded
together. software programs. For Tivoli, *Monthly Rental: must
software or programs might include your
include coded procedures, application (Rational,
workflows, algorithms, reporting, WS Commerce
routines, scripts, and/or metering exception).
software Integrated and
interoperating with IBM Software


Application Solution Provider (ASP) License Amendment -

ASP Amendment – Added to a Purchase Commit or Earned Discount transaction
document when providing access to the Solution from remote data centers to multiple
Customers via the Internet or a private network. ASP Services do not include the
downloading or copying of Programs by Customers.

 If the partner does not use Passport Advantage, then you may offer the partner an OEM/ASL
agreement with the associated ASP Amendment
or
 If the partner has an existing OEM/ASL contract covering a specified solution, and they simply
want to “host” that same solution, then you can offer them an ASP Amendment or Monthly
Rental.

Programs listed at the following website are not eligible for use with this Amendment:
http://www-06.ibm.com/software/lotus/passportadvantage/xspexcludedprograms.html
Any exceptions must be approved by the Brand.


Application Specific License Software Agreement - Base Agreement
SOLUTION - The offering that is created when our Programs and your Value-Add Components work together.
VALUE ADD COMPONENTS - must add significant new functionality or combine or integrate the Program with
one or more other products or services that add significant new functionality.
RETSRICTED USE - use the Programs only in conjunction with the Solution. May not be used for internal use

Purchase Commitment Purchase Commitment Earned Discount Percentage of Monthly Rental for Monthly Rental for
Transaction Document Transaction Document Transaction Document Revenue TD Cloud Application Cloud Infrastructure
for Fixed Term Use Services Provider TD Provider TD - SBO

•Revenue commitment •Revenue commitment •No revenue commitment • Non standard • For SaaS Providers • Special bid only
•License + 12 mo S&S •Fixed term use •License + 12 mo S&S • Not encouraged • Application required • Approval required
•Perpetual licenses •Default 1 year term •Perpetual licenses • Special bid only • Their own SW IP • SWG VP Pricing
•Fixed Term licenses •Multi yr term possible •Fixed Term licenses • Delivered as a service • For IaaS providers
•Default 1 year term •Initial payment •Default 1 year term • Delivered over Internet • For PaaS providers
•Multi yr term possible •Fixed discount •Multi yr term possible • To end customers • Approved “A” PNs list
•Initial payment •We provide a Service •Cumulative purchases • Approved “A” PNs list • Excluded Programs
•Fixed discount •Monthly reporting •Earned discount • Excluded Programs • Brand approval (exc.)
•We provide a Program Currently only used with •We provide a Program • Brand approval (exc.) • Customers limited to
•Monthly reporting Cast Iron Live, Lotus Live •Monthly reporting • Excludes appliances Solution Developers,
• Excludes SaaS offerings Cloud Application
ASP Amendment ASP Amendment
• Min. mo. commitment Providers and their end
•Access to solution •Access to solution • Paid monthly in arrears user customers.
•Remote Data Center •Remote Data Center • Remote service access
•To multiple customers •To multiple customers • For IaaS providers • Customer cannot
•Via the Internet •Via the Internet • For PaaS providers downloaded or copy
•or Private network •or Private network • Special bid only
•Excluded Programs •Excluded Programs • Approval required
•Brand approval (exc.) •Brand approval (exc.) • SWG VP Pricing
•Reside on your servers •Reside on your servers
•or servers you manage •or servers you manage
•No download/copy •No download/copy


Level 1 and 2 Support -

 Level 1 Support means taking the first support call from a Customer and fulfilling the following
steps:
I. Qualify incoming calls: Determine if the request is for a new or existing case. Assign a
priority to a new case (priority one through priority four). For existing cases, obtain case
information.
II. Characterize the problem and environment: Gather information about the case and
determine if the Program causes the problem. Completely define and describe the
problem. Identify ways to understand the problem's behavior. Document the
characterization information. Analyze problem symptom(s), attempt to find root cause
when appropriate and describe the result of such attempts. Determine if the problem is a
known Program problem by accessing IBM online support resources.
III. If it is determined to be a Program problem, contact IBM technical support. For new
cases, open a case and select a priority. For existing cases, state the case number. Provide
the case information you have gathered to the support engineer.
 Level 2 Support means the service provided to analyze or repeat the error, or to determine that
the error is not repeatable. This service also includes in-depth technical analysis.


Upside Opportunity – Cloud
Goals:
● Grow channel participation rate in Cloud deals
● Accelerate integration to channel of Cloud-related acquisitions
● Continue to leverage 2 routes to market
● SWG Cloud portfolio of products

● ASL contracts with special conditions

Traditional Passport Advantage Application-Specific Licensing
1 Distribution and Resale 1
2 ASL Business Partner
Under Software Value Plus Program ASL Value Add Distributor
Monthly Rental for Monthly Rental for
Cloud Application Cloud Infrastructure
Services Provider Provider

Approved “A” PNs list
Excluded Programs subject to
Brand Approval

CLOUD APPLICATION CLOUD
PROVIDERS INFRASTRUCTURE
PROVIDERS

Deliver functionality Operate a cloud for
through the cloud. application vendors
They own an and companies to
application and offer develop, test, and
their solution as a host solutions.
Service. Managed service
providers.


ASL Launch and Landing Revenue Credit -
 Revenue Recognition and Commissions Policy
 IBM sellers receive commissionable credit for revenue that is generated by business partners who bundle
IBM software with their solutions and sell these solutions to their end user clients under the terms of ASL
contracts.
 SWG business partner sales teams, SWG direct sales teams, and client teams receive appropriate credit for
their contributions both in selling to our partners and in selling with our partners to their end user clients.
 Launch commission credit may flow automatically through FMS to rep commission payment and retires
quota.
 In some cases, Reps are required to complete a manual claim request form and have their First Line Manager
(FLM) confirm their involvement and approve the claim. The FLM will send the completed claim form and
their approval to the Channel Manager covering the Launch location of the ASL Partner
 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.
 ASL Landing commission payments are processed on a quarterly basis.
 ASL landing commission credit is issued for transactional revenue only and retires quota.


10 Reasons to Use ASL -
Developing
1. Leverage IBM’s significant investment in middleware
Solution
2. Integration and bundling of your solution & IBM software

3. Shorter time to market

4. Sale is focused on your Application

5. Shortened sales cycle
Sales Cycle

6. IBM reps can get paid for assisting in sale

7. Improved margins – upfront license & annual renewal

8. Ongoing account control

9. Lower installation & support costs
Customer
Benefits
10. Improved customer satisfaction

It’s all about making money


API's for ASL BP's


Overview of Reseller Offering

● Provision LotusLive services via APIs including creating subscriptions and
provisioning users.
● Provide partner the ability to deliver custom offerings to their client base
by owning the contract, billing and support relationship with customers,
rather than the traditional ISV partner transferal of ownership to IBM.
● Direct communication channel to to IBM Level 2 Support – enabling your
customer support team with a direct channel to IBM for issue resolution.
● Co-branding : support for UI configuration and support redirection


Phase 1 - Reseller tooling to support
Self-provisioning API's

Reseller API Requirements
Customer / Organization Subscription User
Create Customer/Organization Add a subscription Add a user

Suspend Customer/Organization Suspend a subscription Edit a user (all editable portions of the user
account)

Un-suspend Customer/Organization Un-suspend a subscription Remove a user

Edit Customer/Organization Cancel a subscription Reset Password

Remove Customer/Organization Return Subscription ID (given customer ID) Suspend a user

Return Customer IDs (given reseller ID) Retrieve Provisioning Status (given subscription Un-suspend a user
ID)

Retrieve Provisioning Status (given customer Retrieve Subscription Status (given Account ID) Return Account IDs (given customer ID)
ID)

Retrieve Customer/Org Status (given customer Retrieve Provisioning Status (given Account ID)
ID)


Phase 1 - Co-Branding Capabilities

Elements that can be branded
 Login / Password reset pages
 Key System support links
 Key System eMail messages
 Default theme

Elements that will maintain IBM Corporate Identity
 Service URLs
 Service names
 Service navigation
 Engage / Connections Dashboard Rotating Banner

64

Co-Branding Capabilities
 A Provider specific log-in or landing page
— A SAML based login page for EACH customer will be supported. T
 The URL of the service can be masked as another URL such as
serviceprovider.com instead of www.lotuslive.com
— This is not currently available
 More flexibility in customizing the web UI, such as more Service provider
branding, the ability to put ads or promotions in the top or side banners
— SmartCloud for Social Business has no plans to support
 Ability to create their own customized welcome letter after service
provision
— First email is for access and authentication. This is an IBM branded email
● No ability to customize but can put the Service provider branding on it
— Other emails will be suppressed
● Ones that are generated by the partner using the API's
● Notifications from the applications(adding a user to the ACL of a file/activity) will also
be LotusLive generated


Monthly termless part numbers – Phase 1

 Pay per usage Billing
 Monthly Billing
 Monthly Reporting


Monthly Reports
Monthly Summary Report
This report should list the parts that the vendor provisioned for that time period (prior month)
The data would be limited to those parts that were provisioned in the last month by that partner only.

Monthly Detail Report
This report is related to the one above, but provides more detail.
The data would be limited to those parts that were provisioned in the last month by that partner only.

Total Summary Report
This is the same as above, but a running total.
The data would be limited to those parts that are currently provisioned by that partner only.

Total Detail Report
This report is related to the one above, but provides more detail.
The data would be limited to those parts that are currently provisioned by that partner only.

Monthly Active Users Report
List and data of all users currently provisioned across all of that reseller's customer's orgs.
Only contains current data, not total (historical)


Cloud Directions for 2012

Offerings Go to Market Extensibility

New services
■ Alignment with the ● Open interfaces
● IBM Docs
IBM SmartCloud such as the Social
● eDiscovery Archive Business Toolkit
■ More flexible buying
options
● Enterprise grade
Continued feature evolution controls
● Messaging

● Social
■ Reseller tools and ● Flexible public,
enhancements dedicated and hybrid
● Unified Communications

deployment options
■ Controlled Distribution

69

SmartCloud for Social Business
Solutions Meet a Spectrum of Customer Needs

Public Cloud Dedicated Cloud
SmartCloud Engage Hybrid IBM SmartCloud Social
Collaboration for Government
SmartCloud Meetings
IBM GTS SmartCloud Enterprise*
SmartCloud Connections
● Lotus Notes Domino
SmartCloud Notes and iNotes ● Domino Utility Server
● Connections
● Sametime
● WebSphere Portal
● Web Content Manager

On Premises
*Customer brings their own license, pays for infrastructure
Pay as you Go options available


Introducing Partner-led Migration for LotusLive Notes in 2012

IBM to deliver
● Tools for LotusLive Notes onboarding planning and data transfer

● Partner education

● Partner certification

● Targeted for Q2 – will be announced via email to demo accounts, PartnerWorld

newsletters, Webfront, etc.

Partners can provide services for
● Pre-migration environment analysis and planning

● Preparation of the on-premises environment

● Data migration

● Transition of users

● Ongoing management of desktop clients, users, and the on-prem environment


What we've learned from ISSL-led migrations
We presumed that:
● Customers would understand their existing environments

● Customers would be able to partner with us in their task responsibilities to project plan and prepare

their environment and users for moving to the Cloud
What we found is that the customers who are most interested in moving to cloud are the ones
who are struggling the most managing their on-premises environment

1. Plan
2. Prepare
● Hold deployment kickoff meeting
● Configure Hybrid deployment
● Perform discovery and gather
infrastructure technical data
● Configure directory synchronization
● Select mailbox transition methods and
● Configure client computers and end user
tools experience

On-premises
environment

LotusLive 3. Transition
LotusLive Notes ● Synchronize mailbox content, calendars and
environment contacts
● Use third-party tools to migrate from competitive
offerings
● Configure mobile device connectivity
● Perform service validation and testing


New Partner Mail Onboarding Tools and Certification Program

● New program to train and certify partners to setup hybrid configurations and onboard SmartCloud
Notes users

● Onboarding Planning Tool (OPT)
● Used to gather and fix potential problems in mail files at the start of the transfer process

● Time spent fixing issues here can save lots of time and aggravation later

● Onboarding Transition Tool (OTT)
● Used to manage the transfer of “batches” of mail files to the IBM data center

OPT OTT

on-
Gather Organize Stage Move to Provision
premises Encrypt LLN
Information Batches batches Datacenter into LLN
files

Coming in Q2


SmartCloud Notes Certification Program Overview

 Objective
— Deliver tools to enable Partner led LotusLive Notes service provisioning with data transfer
— Create a BP Certification Program to establish process competency and a business arrangement

 Certification program
— Pre-requisites
● LotusLive Notes Business Partner Demo account
● IBM Certified System Administrator - Lotus Notes and Domino 8.5 certification
— Education
● LotusLive community and activity
● Instructor led course with lab exercises (fee based)
● Covers hybrid configuration and data transfer processes
● 2x's per month
● 3-5 students per class
— Evaluation
● IBM Certification exam (fee based)
— Authorization to perform in the “Data Migrator” role
● Access to OPT and OTT

Services Opportunities around SmartCloud Social

Help customer decide what to Help Implement Help manage / operate
do the solution the solution

Assess and plan Design Integrate/ Operate/ Manage
• Client collaboration • Design and Implement • Run complementary
environment implementation plan • User Provisioning services
• Cost and TCO analysis • Rollout plan • Directory Integration
• Directory Assessment • Directory architecture • Single Sign-On
• Security Assessment • Security design • Mail Routing Integration
• Mail Routing & Migration
Assessment • Data Migration
• Integration w/Enterprise
apps (Click-to-cloud)*

Total Services Opportunity: 1 to 5x yearly subscription revenue


● Q/A


Incentives for SaaS – beginning February 20, 2012*
Two incentive models for SaaS:
1. SaaS Rebate:
●
Paid on orders fulfilled through a VAD

2. SVI:
●
Paid on IBM direct fulfilled opportunities
●
Standard SVI program participation requirements
●
BAU: First to register , sales progression, claiming

SaaS incentive fees paid continuously – over life of engagement
●
Payment: Unique process for SaaS offerings
●
Fee paid on initial order and future period billings (including renewals)
●
Eligible Part Types: Subscription, Daily, On-Demand
●
Ineligible Part Types: Set up fees, Overage, SLA, Human Services
●
Payment cycle
●
Paid when minimum payment threshold reached or a specified amount of time has passed since last
payment

*Subject to change
Available for selected offerings and in selected geographies

SaaS Reseller Incentive Introductory Period 2012

● Higher rebate rates for 2012
Up to 28% total margin for deals fulfilled through VAD
● Effective until Dec 31, 2012

Fulfilled through VAD Fulfilled by IBM Direct -
Customer Segment (b) GB Non GB No extra incentive
BP base discount (a) 5% 5% Customer Segment (d) GB Non GB
SaaS instant rebate 15% 5% Sell Only SVI 10% 5%
SaaS “Sweetener” 8% 3% Sell and ID SVI 20% 10%

Total (c) 28% 13%

Fine print:
(a) 5% is an example. VADs and BPs establish their terms separately for product discount and discounts vary by
country
(b) SaaS incentives not applicable for ELA customers, as defined
(c) Business Partners not eligible for SVI if transaction is fulfilled through VAD
(d) SVI Incentives not applicable for Government accounts
(e) Business Partners not eligible for SaaS Instant Rebate if fulfilled by IBM


Example Business Model
General Business account in the USA fulfilled through a VAD
100 Subscriptions sold @ $10/month
(Annual contract value = $12000)

Incentive Revenue Revenue Revenue Revenue
Plan Year 1 Year 2 Year 3 Year 4

BP base discount 5% 600 600 600 600

SaaS instant rebate 15% 1800 1800 1800 1800

SaaS “Sweetener” 8% 960 0 0 0

Total 3360 2400 2400 2400 Etc ...

IBM SaaS contracts are auto-renewing. Billing continues until the contract is cancelled.
Rebates are paid on billings, resulting in an annuity revenue stream for partners


“Rule of 78”

- Example -


N

N
“Rule of 78”
N

78 blocks of revenue N

N

N
N

N

N

N

N

N

J F M A M J J A S O N D


“Rule of 78” Benefits with SaaS

● Eliminates the Quarterly and Annual large discounting to make plan
● The customer can't “go out of maintenance”
● If the customer doesn't pay, we can just shut them off
● Cash flow is the same in January/February as December
● As a small business, can better leverage financing based on
predictable revenue stream
● This is how insurance companies have been around for 100's of years

Things to consider -
● Cash flow
● Billing infrastructure


SaaS Sales

With SaaS Services, the questions during the sale can be complex:
What Anti-virus/Anti-Spam services to you use?
Where do I point my MX record/DNS?
How does your single sign on work – do you support SAML?
How do I know my data is secure?
How do my administrators manage the service?
Can I serve the service up through my portal?
...etc.
Many different questions to what you receive when the customer is building
their own environment – why?
Because by using cloud, the headache of managing infrastructure goes away
from them for a whole range of management and technology problems that they
currently have
1


High Level TCO elements to be considered
 Hardware Cost  Quality of Service needed
- Servers - Availability
- Storage - Security
- Net work - Syst em Manag em ent
- Clients (user equipm ent) - Scalability
- and … - Response Tim e
 Sof tware Costs - Batch Wi ndow
- IBM sof tware - Disast er/ Recovery
- Ot her Server SW - and …
- Ot her Cli ent SW Other Costs
- Ot her Net work SW - Deploym ent costs
- Ot her Applicati on SW - Migration costs
- and … - Inst allation costs
Mai nt enance Costs - Education costs
- Maintenance for SW - and …
- Maintenance for HW
- and …
Environm ent al Costs - etc ? …
- Floor space
- Power & cabling
 - and …
Qualit y of Service needed
- Availability
- Security
- Syst em Managem ent
- Scalability
- Response Tim e
- Disast er/ Recovery
- and …


TCO Elements to be Considered
 Availability  Security  Operati ng Concept
- High availability - Authentication / Authorization - Development of an op erating procedur e
- Hours of operation - User Admi nistration - Feasibility of t he devel oped procedure
 Backup / Restore / Sit e Recovery - Dat a Security - Autom ation
- Backup & Restore - Server and OS Securit y  Int egration
- Disast er Scenario - RACF vs. ot her solutions - Int egrat ed Functi onality vs.
- Effort for Complete Sit e  Deploym ent and Support Functionalit y to
Recovery - Syst em Programmi ng be implem ent ed (possibly wit h 3rd par ty
- SAN eff ort - Keeping consist ent OS and SW tools)
 Infrastruct ur e Cost Level - Balanced Syst em
- Space, Power, Cooling - Dat abase Eff ort - Int egration of / into St andards
- Net work Infrastruct ure - Middleware  Furt her Availability Aspects
- Storage Infrastruct ur e - SW Maintenance - Planned & Unplanned outages
 Additional developm ent and - SW Distribution (across firewall) - Autom at ed Take Over
implementation - Application - Uni nterrupted Take Over (especially f or
- Investm ent f or one platform – - Technology Upgrade DB)
r eproduction f or ot hers - Syst em Release change wit hout - Workload Managem ent across physical
 Controlling and Accounting i nt errupts borders
- Analyzing t he syst ems  Resource Utilizati on and - Business continui ty
- Cost Perform ance - Availability eff ect s f or other
 Operations Eff ort - Mix ed Workload / Batch applications /
- Monitoring, Operati ng - Resource Sharing projects
- Problem Det ermination - shared not hing vs. shared - End User Service, End User Productivity
- Server Managem ent Tools everyt hi ng - Virt ualization
- Int egrat ed Server Managem ent - Parallel Sysplex vs. Ot her  Skills and Resources
– Concepts - Personnel Education
Enterprise Wide - Response Tim e - Availability of Resources
- Performance Managem ent
- Peak handling / scal ability


TCO Example

Too many items to discuss in detail, so combined they become:
Software Costs
Hardware Costs
Datacentre Costs
Staffing Costs
Support Costs
Etc…

1


Sales Progression Assets

1) Provide a Business Value Assessment
● ROI Tool for LotusLive
● A web-based calculator to assess the costs, benefits

and ROI of implementing LotusLive and generates
'client-ready' assessment presentation
● Limited availability Contact LLP@us.ibm.com for access

2) Leverage Client Advocacy
● Connect prospects with LotusLive clients
● Use your no-charge BP demo account to attract client interest

● Use your BP Trials URL to generate client leads

● Use 35 new references added in 2011

● Show client testimonial videos

● Contact your regional BP rep for assistance


Read -
Read about Smart Cloud Social: https://www.lotuslive.com/en/
Read about Smart Cloud Social Support: https://www.lotuslive.com/en/support/


Watch -
See a Smart Cloud Social recorded demo: https://www.lotuslive.com/en/demos
Attend a Live Demonstration: https://www.lotuslive.com/en/training
Attend an IDR virtual workshop at an IBM Innovation Center: https://www-
304.ibm.com/isv/spc/events/description.jsp?event=A5479E64DCD5E5CC8525774C0060C5FF
See partner overview webinar HTTPS://www-
304.ibm.com/partnerworld/wps/servlet/ContentHandler/PWEVT_lotuslive0810


Show it -

Request a Smart Cloud Social
Business Partner demonstration
account:

https://www-
304.ibm.com/partnerworld/wps/ser
vlet/ContentHandler/isv/lotuslive


For More Information
For More Information About See
BP Demo Account http://ibm.co/eT6a97
Course enrollment
● Future API Workshop
● Future SmartCloud Notes Onboarding
course
Partner Guided Selling (future)
SmartCloud for Social Business Webfront http://www.ibmcloud/social

Sales Kits on Partnerworld http://ibm.co/ytx4kX
LotusLive Wiki http://www-10.lotus.com/ldd/bhwiki.nsf
Customer Trials URL https://www-
304.ibm.com/partnerworld/wps/servlet/ContentHa
ndler/isv_ben_prb_lotuslive_trial


Summary
■ Positioning LotusLive in IBM SmartCloud
■ New SaaS Parts and Partner Guided Selling Tool to
ease the sale of IBM SaaS offerings
■ Introducing an incentive model specifically
for SaaS products
■ Enabling partner led LotusLive Notes Call to Action
eMail Onboarding to Cloud
■Get educated
■ New Social Business Toolkit ─ Partner Guided Selling Tool
for integrating apps with ─ LotusLive Notes Onboarding
IBM Connections classes/certification
─ Social Business Toolkit class
and LotusLive
■ Get your LotusLive BP Demo account
■ Use LotusLive BP Trial URLs in your
marketing campaigns
■ Sell at 50% off until Feb 27


QUESTIONS ??


Backup


Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
2012 SmartCloud Tiered Pricing Seats
Discount:
1-100
0%
101-1,000
10%
1001-5,000
15%
5001-10000
20%
10,001+
25%

Part NumberLong Description Tier 1 Tier 2 Tier 3 Tier 4 Tier 5
D0NPULL SMARTCLOUD ENGAGE STANDARD ENT DEPLOY AU PER MONTH $ 8.00 $ 7.20 $ 6.80 $ 6.40 $ 6.00
D0NPWLL SMARTCLOUD ENGAGE STANDARD ENT DEPLOY AU OVERAGE $ 10.00 $ 9.00 $ 8.50 $ 8.00 $ 7.50
D0NPXLL SMARTCLOUD ENGAGE STANDARD ENT DEPLOY CUST WS&S AU PER MONTH $ 6.00 $ 5.40 $ 5.10 $ 4.80 $ 4.50
D0NQ3LL SMARTCLOUD ADDITIONAL STORAGE COLLABORATION GB PER MONTH $ 5.00 $ 4.50 $ 4.25 $ 4.00 $ 3.75
D0NQ8LL SMARTCLOUD ENGAGE ADVANCED STEP-UP AUTH USER PER MONTH $ 9.00 $ 8.10 $ 7.65 $ 7.20 $ 6.75
D0NQALL SMARTCLOUD ENGAGE ADVANCED STEP-UP AUTH USER OVERAGE $ 11.25 $ 10.13 $ 9.56 $ 9.00 $ 8.44
D0NQBLL SMARTCLOUD ENGAGE ADVANCED AUTH USER PER MONTH $ 10.00 $ 9.00 $ 8.50 $ 8.00 $ 7.50
D0NQDLL SMARTCLOUD ENGAGE ADVANCED AUTH USER OVERAGE $ 12.50 $ 11.25 $ 10.63 $ 10.00 $ 9.38
D0NQILL SMARTCLOUD NOTES BLACKBERRY SERVICE MDS NOTES AU PER MONTH $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 Excluded from Tiering
D0NQKLL SMARTCLOUD HOSTED BLACKBERRY SERVICE NOTES AU PER MONTH $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 Excluded from Tiering
D0NQMLL SMARTCLOUD NOTES AUTH USER PER MONTH $ 5.00 $ 4.50 $ 4.25 $ 4.00 $ 3.75
D0NQPLL SMARTCLOUD NOTES AUTH USER OVERAGE $ 6.25 $ 5.63 $ 5.31 $ 5.00 $ 4.69
D0NQQLL SMARTCLOUD TRAVELER NOTES AUTH USER PER MONTH $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ 2.00 Excluded from Tiering
D0NQSLL SMARTCLOUD TRAVELER NOTES AUTH USER OVERAGE $ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50 Excluded from Tiering
D0NQTLL SMARTCLOUD NOTES STEP-UP AUTH USER PER MONTH $ 4.00 $ 3.60 $ 3.40 $ 3.20 $ 3.00
D0NQVLL SMARTCLOUD NOTES STEP-UP AUTH USER OVERAGE $ 5.00 $ 4.50 $ 4.25 $ 4.00 $ 3.75
D0NQWLL SMARTCLOUD ARCHIVING RETENTION DATA FEED NOTES AU PER MONTH $ 4.00 $ 3.60 $ 3.40 $ 3.20 $ 3.00
D0NQZLL SMARTCLOUD INOTES LOTUS CUSTOMERS ACTIVE ON S&S AU PER MONTH $ 2.00 $ 1.80 $ 1.70 $ 1.60 $ 1.50
D0NR1LL SMARTCLOUD INOTES AUTH USER PER MONTH $ 3.00 $ 2.70 $ 2.55 $ 2.40 $ 2.25
D0NR3LL SMARTCLOUD INOTES AUTH USER OVERAGE $ 3.75 $ 3.38 $ 3.19 $ 3.00 $ 2.81
D0NR5LL SMARTCLOUD CONNECTIONS LOTUS CUSTOMERS W S&S AU PER MONTH $ 5.00 $ 4.50 $ 4.25 $ 4.00 $ 3.75
D0NR7LL SMARTCLOUD CONNECTIONS AUTH USER PER MONTH $ 6.00 $ 5.40 $ 5.10 $ 4.80 $ 4.50
D0NR9LL SMARTCLOUD CONNECTIONS AUTH USER OVERAGE $ 7.50 $ 6.75 $ 6.38 $ 6.00 $ 5.63
D0NRCLL SMARTCLOUD MEETINGS UP TO 14 GUESTS AUTH USER PER MONTH $ 29.00 $ 26.10 $ 24.65 $ 23.20 $ 21.75
D0NRELL SMARTCLOUD MEETINGS UP TO 14 GUESTS AUTH USER OVERAGE $ 36.25 $ 32.63 $ 30.81 $ 29.00 $ 27.19
D0NRFLL SMARTCLOUD MEETINGS ENTERPRISE DEPLOYMENT AU PER MONTH $ 5.00 $ 4.50 $ 4.25 $ 4.00 $ 3.75
D0NRHLL SMARTCLOUD MEETINGS ENTERPRISE DEPLOYMENT AU OVERAGE $ 6.25 $ 5.63 $ 5.31 $ 5.00 $ 4.69
D0NRILL SMARTCLOUD MEETINGS UP TO 199 GUESTS AUTH USER PER MONTH $ 39.00 $ 35.10 $ 33.15 $ 31.20 $ 29.25
D0NRKLL SMARTCLOUD MEETINGS UP TO 199 GUESTS AUTH USER OVERAGE $ 48.75 $ 43.88 $ 41.44 $ 39.00 $ 36.56
D0NRLLL SMARTCLOUD MEETINGS CONCURRENT SEATS AUTH USER PER MONTH $ 50.00 $ 45.00 $ 42.50 $ 40.00 $ 37.50
D0NRNLL SMARTCLOUD MEETINGS UP TO 999 GUESTS AUTH USER PER MONTH $ 79.00 $ 71.10 $ 67.15 $ 63.20 $ 59.25
D0NRQLL SMARTCLOUD MEETINGS UP TO 999 GUESTS AUTH USER OVERAGE $ 98.75 $ 88.88 $ 83.94 $ 79.00 $ 74.06
D0NRRLL SMARTCLOUD MEETINGS ENT DEPLOY CUST W S&S AU PER MONTH $ 4.00 $ 3.60 $ 3.40 $ 3.20 $ 3.00
D0NRULL SMARTCLOUD WITH NOTES STEP-UP AND CONNECTIONS AU PER MONTH $ 7.00 $ 6.30 $ 5.95 $ 5.60 $ 5.25
D0NRWLL SMARTCLOUD WITH NOTES STEP-UP AND CONNECTIONS AU OVERAGE $ 8.75 $ 7.88 $ 7.44 $ 7.00 $ 6.56
D0NRYLL SMARTCLOUD WITH INOTES AND CONNECTIONS AUTH USER PER MONTH $ 7.00 $ 6.30 $ 5.95 $ 5.60 $ 5.25
D0NS0LL SMARTCLOUD WITH INOTES AND CONNECTIONS AUTH USER OVERAGE $ 8.75 $ 7.88 $ 7.44 $ 7.00 $ 6.56
D0NS1LL SMARTCLOUD WITH NOTES AND CONNECTIONS AUTH USER PER MONTH $ 8.00 $ 7.20 $ 6.80 $ 6.40 $ 6.00
D0NS3LL SMARTCLOUD WITH NOTES AND CONNECTIONS AUTH USER OVERAGE $ 10.00 $ 9.00 $ 8.50 $ 8.00 $ 7.50


Additional SaaS concepts
Add-on
– This is a PROCESS, not a separate part
– Add-on: increase of subscription level of a currently-entitled part or adding an additional service
– You are “adding on” to an existing Services Agreement
– Cannot add-on until after 1st SaaS invoice

Ramp ups
– Limited to 12 months total, up to 4 separate ramp-up periods
• Ramp up is limited to the FIRST 12 months of the contract
• Note: if >1 ramp up, each stands alone so the quantity is the total for that ramp-up period,
NOT cumulative
– Enabled only for subscription parts
– No add-ons during the ramp up period for a given part number OR prior to the initial invoice

New to SaaS is the concept of a Services Agreement or Charge Agreement
– Like a Sales Order for SaaS -- A “repository” for the customer’s agreement, including
subscription details, agreed-to overage, on-demand and pay per use prices
– Initiated automatically by SAP when provisioning has been completed and the FIRST INVOICE
has been issued
– Rep may need to reference Charge Agreement number when doing add-on or trade-up

99

Glossary
Part Types: defined by a set of coding attributes, which drive specific systems/tools logic
Subscription tracking period – how often the “counting” for a part is reset (e.g., every month or once a
year) for overage determination and “entitled” usage level
Term (Contract duration): length of entitlement set up per purchase of SaaS subscription (up to 5
years)
Provisioning: Actually setting up the service for customer use
Line Item Hold: SAP function resulting in delay in billing until hold is removed (Terms of Use Hold &
Provisioning Hold); Driven by Part Coding attribute (SMG4);
Services Agreement: The “repository” for a customer’s subscription level, overage rates, etc.
Overage: part type used to bill when current subscription level has been exceeded
Co-term: Keeping a single contract end date as new parts are added or existing parts modified
Add on: Adding an additional feature (new part number) or changing the quantity for an existing part in a
Services Agreement
Trade-up: Replacing one part with another part for the balance of a contract or as part of a renewal or
extension
Ramp-up: Where a customer does not use the full amount up front, the ramp up allows for growth during
the first 12 months

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