© 2012 IBM Corporation1 IBM Confidential22 December 2011 © 2012 IBM Corporation

Business AnalyticsBusiness Partner Rally 2013 Update

May 6, 2013

Rohan PersaudChannels Executive, Business AnalyticsGrowth Markets, IBM Software Group

© 2012 International Business Machines Corporation 2

Business Analytics Partner Rally 2013

Source: IBM Investor Relations, May 2010; $16B refers to cross-IBM revenue including Software, Services and Systems.

IBM BAO Revenue (includes software,

hardware and services)

10% CAGR

2009 2015IBM Growth Initiatives

Smarter Planet

Cloud and Next Generation Data Center

Growth Markets

Business Analytics

and Optimization

(BAO)

2

2015 IBM Roadmap ***Update***Business Analytics & Channels the Place to Be!

WW IBM Software Group License Revenue from

Business Partners

Opportunity!

GMU > 70% !

© 2012 IBM Corporation3

Scale of GMU!!

•147 Countries with 5000~7500 Languages,

•70% of the World Population is in GMU

•There are 24 standard time zones plus up to 16 mini-time zones

•Various degrees of customer analytical maturity

•Technology preferences are not always the same as Major

Markets

Scale of GMU!!

•147 Countries with 5000~7500 Languages,

•70% of the World Population is in GMU

•There are 24 standard time zones plus up to 16 mini-time zones

•Various degrees of customer analytical maturity

•Technology preferences are not always the same as Major

Markets

What’s so important about us?

General Statistics:

•GMU Market growth est. 5.0% and 2013 6.7%

•2012-15 GDP Growth: GMU 64%, Major 36%

•By 2020, Emerging Asia, which will hold 25% of global consumer spending

•443 cities in the GMU will generate 47% of the global GDP growth between 2010 to 2025. 250 cities in GCG will account for the greatest share (28%) of WW GDP growth

•An estimated 60 per cent of global banking revenue growth over the next decade will lie in Emerging

markets.....

General Statistics:

•GMU Market growth est. 5.0% and 2013 6.7%

•2012-15 GDP Growth: GMU 64%, Major 36%

•By 2020, Emerging Asia, which will hold 25% of global consumer spending

•443 cities in the GMU will generate 47% of the global GDP growth between 2010 to 2025. 250 cities in GCG will account for the greatest share (28%) of WW GDP growth

•An estimated 60 per cent of global banking revenue growth over the next decade will lie in Emerging

markets.....

Geographic Market Opportunity

© 2012 IBM Corporation4

2012 BA GMU Channel Results Highlights

2012 BA Product Launches

Q1

•TM1 10.1•Cognos Insight 10.1•Decision Management 6.2•Clarity CPM 7.2.1

Q2

•Decision Management 7•Modeler 15•C&D Services 5•OpenPages 6.1•FSR 6.6.1•Controller 10.1•Express 10.1

Q3•Statistics 21•Business Intelligence 10.2•Cognos Insight 10.2•TM1 10.1 RP1

Q4

•Open Pages 6.2•BI Pattern•Analytic Answers•IBM Cognos Disclosure Management (Geva 1)

GMU up $15M, 22% yty,

– GB 23% yty, 106% of plan– ASL 200%+yty, 200%+ of

plan– Stream 45% yty, 130% of

plan

Overall % of business• Cognos –> 51%• SPSS –> 47% • Risk-> 1%• Clarity ->1%

• SPSS 75% yty growth

Q4 99% of plan ~$32M!!– (equivalent to entire AP

channels in 2011)– Executed well on sales

plays/ownership

9,000+ transactions

530 Active VARS/BPs in GMU– 20% responsible for 80% of

revenue

BA accounts for 30% of IBM’s all “You Pass We Pay” certification program.

11,500 certifications with partners, up 25% yty

Lead Passing (since Nov. 2011)– ~ 3500 leads passed– Won 11% for $9.5M ave. deal

$25k– 8% of revenue

© 2012 IBM Corporation5

What does this mean? = Opportunity for Partners in GMU

% Contribution of WW BA Channel Sales

0 5 10 15 20 25 30 35 40

GMU

North Amer

Europe

Japan

2011

2012

GMU has outperformed the major markets two years running on:

-Absolute $$

-YTY Growth

-% contribution to WW Channels

GMU has outperformed the major markets two years running on:

-Absolute $$

-YTY Growth

-% contribution to WW Channels

First ever $5M+ license BP!!

Several $2M+ Partners

Ave sales = $7k

First ever $5M+ license BP!!

Several $2M+ Partners

Ave sales = $7k

Changed the conversation from programs to potential to profitabilityChanged the conversation from programs to potential to profitability

© 2012 IBM Corporation6

BA GMU Channels Strategy for 2013 – Drive to $100MAssumptions- flat headcount/ 24% yty growth/ no upward plan revisions mid qtr / current acquisitions

Launch New Revenue Streams1. Solutions Driven Business

BA Capability Authorization/ ASL (Academic + Commercial) / Vertical-led Solutions2. Leverage New Product Availability

On premise Sales Performance Management/ Social Media Analytics/ Others3. Acquisition Activation

SPSS Enterprise Portfolio/ Risk Capability Build / CDM4. Cross Brand Teaming Synergy

Platform/Solution partnering between Brands/STG5. Geo-expansion coverage and sustainable MM GTM

Partner with BPLT team6. Engage Local SI’s – Invest in a long term strategic play7. Address Local Market Opportunities - 8. Address Sector/Industry Gaps….ie Discrete manufacturing

Reinforce Partner Foundation Infrastructure 1. Hi-Performing BPs – Maintain Focus and Protect Revenue/ Reduce dependency2. Hi- Potential BPs - Recruit and Enable- nurture increased commitment3. Hi-Volume BPs – VAD Managed / Low touch

Key - >Partner planning, profitability, self sufficiency

Hyper Growth Pipeline Generation1. Extensive pipeline coverage build by all GMTs in every Qtr for all Pillars2. Leverage existing programs but **get innovative, be creative**

Everyone a Sales Owner1. Shelf ‘Business as Usual’ – “What’s your game changer?”

Re-energize your channel, exude confidence, build the groundswellWork with GMU BI/AA & GMU PM Sales leads to craft appropriate GMT sales plays

What are we not selling?

Where are we not selling?

Profitability

Self Sufficiency

If we aren’t creating new opps; our

competitors are!

Challenge the status quo

© 2012 IBM Corporation7

What Differentiates a High Performing Partner?

Self SufficiencySelf Sufficiency

Solutions PlayersSolutions Players

ConsistencyConsistency

Solving business painCreating reusable assetsLeveraging ASL/ BA Capability Programs

Solving business painCreating reusable assetsLeveraging ASL/ BA Capability Programs

Investment Savvy- direction, portfolio, commitment No afraid to challenge the status quo to match at hand opportunity

Investment Savvy- direction, portfolio, commitment No afraid to challenge the status quo to match at hand opportunity

From pipeline to reference!Licenses oriented; services capableMore synergy than reliance on IBM

From pipeline to reference!Licenses oriented; services capableMore synergy than reliance on IBM