Rodney ForemanCloud & Smarter Infrastructure Director, Worldwide Channels Sales

#ibmpulse

Caution on forward looking statementsCaution on forward looking statements

IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion.

Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.

The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

#ibmpulse

““Business Partners are vital to IBM’s successBusiness Partners are vital to IBM’s success

“IBM’s software business is not limited in opportunity. Partners can help us reach our goals."   Steve Mills, Senior IBM VP, SWG

#ibmpulse

What is Software as a Service (SaaS)?What is Software as a Service (SaaS)?

• Software as a Service (SaaS) is a software delivery model in which software and associated data are centrally hosted in the cloud. SaaS is typically accessed via a web browser. Payment for the service is through a subscription model.

• You are using SaaS today if you access applications like Facebook, Twitter, or gmail.

See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing

#ibmpulseWhat is driving the move to SaaS? What is driving the move to SaaS? Market dynamics and disruptive technologies are driving Market dynamics and disruptive technologies are driving the shift to SaaS consumptions modelsthe shift to SaaS consumptions models

Developers want

Lines of Business want CxOs want

Low touch, easy to consume, continuously updated software

SocialMobile

Embedded Intelligence

Cloud

Big Data

PredictabilityLower costs

Quicker business value

Access from anywhere

To create new offerings by composing services from

multiple providers

IT Operations wantsTo manage on-premise, Cloud, and hybrid environments

#ibmpulse

……and the decision making process is changingand the decision making process is changingDecision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner

By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments

48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research 

60% of the IT purchase process decision is completed before the prospect engages a vendor

*Source: Google & Compete B2B Customer Study, June 2012

UsersUsers

RecommendersRecommenders

InfluencersInfluencers

Economic Buyers

Economic Buyers

Decision MakersDecision Makers

Decision Makers

Practitioners

CIOCTOsIT ManagersIT Operations ManagerData Center Manager

DevelopersTechnical LeadersSystem AdministratorsIT OperationsData Scientists

#ibmpulse

How can SaaS help?How can SaaS help?

• Improved TCO due to lower infrastructure costs

• Flexible subscription pricing

• Minimal upfront investment

• Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes

• Lower risk with try and buy approach

• Accelerates evaluations and decision making

#ibmpulseWhat is the Total Cost of Ownership? What is the Total Cost of Ownership?

30 VMs30 VMs

300 VMs300 VMs 1650 VMs1650 VMs

Software Subscription or License costs• Software Subscription or License costs• Support and Maintenance

Infrastructure Costs• Hardware• Storage

Management and Operations• Deploy App• Support Training• App Tuning• App Support• Software Maintenance (e.g upgrades)

Software Subscription or License costs• Software Subscription or License costs• Support and Maintenance

Infrastructure Costs• Hardware• Storage

Management and Operations• Deploy App• Support Training• App Tuning• App Support• Software Maintenance (e.g upgrades)

On-premise vs. Saas

#ibmpulse

What is the competition doing? What is the competition doing? While the Old Lions fight, the Hyenas are stealing the foodWhile the Old Lions fight, the Hyenas are stealing the foodC&SI on April TT StudyC&SI on April TT Study

IT Operations wantsTo manage on-premise, Cloud, and hybrid environments

VMware

CommVault

SolarWinds

ServiceNow

Splunk

MobileIron

New Relic

Hyenas …

HP

Symantec

CA

BMC

C&SI (2012-13)

C&SI (2014-15)

Old Lions …

#ibmpulse

Why are Customers buying SaaS?Why are Customers buying SaaS?

Customers that want to shift from Capital Expenses (On-premise) to

Operating Expenses (SaaS) to fund software purchases

18%

Customers who want to quickly gain access to new capabilities

that they cannot obtain by purchasing existing software

products and services

50%

Customers that wish to replace existing licensed and/or client/server applicationswith SaaS applications

15%

Other17%

*Source: Gartner, Softletter, Forrester, GigaOM

#ibmpulse

A New Way to experience and acquire our on-premise and SaaS solutionsA New Way to experience and acquire our on-premise and SaaS solutions

How is IBM delivering this? IBM Service EngageHow is IBM delivering this? IBM Service Engage

for engaging clients and partner via live guided demos available 24x7

to POC your clients … start a POC in 30 minutes, anytime, anywhere your client wants

to extend what your clients are already buying at lower total cost via Software as a Service

to accelerate the close

IBM Service EngageLearn • Explore • Try • Use (Buy) • Extend • Support

New way….

#ibmpulseIBM Service Exchange – Digital PresenceIBM Service Exchange – Digital Presence

• Readily available• Continuous delivered• Scaling to needs• Immediate Feedback

SupportLearn Explore Try Use / Buy Extend

#ibmpulseWhy is this important to YOU?Why is this important to YOU?

Service Engage faster time to value for your clients

POC in days not weeks / months with 30 day evals

Earn quick wins, close more often, earn more money

Expand your footprint in your accounts using a land and expand strategy

Displace competitors, on flexibility, broad capabilities, lack of comparable offer

Service engage puts you and your clients in the driver’s

seat.

Take a drive today!

https://www.ibmserviceengage.com/https://www.ibmserviceengage.com/

#ibmpulse

Application Performance Management

What SaaS Offerings can you sell NOW?What SaaS Offerings can you sell NOW?

IBM Application Performance Management Entry (SaaS)

$25/month per Average Managed Virtual Server (aMVS)

$25/month per Average Managed Virtual Server (aMVS)

IBM SmartCloud Control Desk (SaaS)

$99/month per Authorized User$99/month per Authorized User

IBM Workload Automation (SaaS)

Starts at $70 per 1,000 executed jobs per month

Starts at $70 per 1,000 executed jobs per month

$297/month per Concurrent User$297/month per Concurrent User

h

From 251k to 1,000k, each pack of 1k is priced at $35/month

From 26k to 250k, each pack of 1k is priced at $56/month

From 1k to 25k monthly executed jobs, each pack of 1k is priced at $70/month

>1000k jobs, each 1K job pack is priced at $21 per month

Workload Automation

IT Service and Asset Management

#ibmpulse

IBM Performance Management for Applications and Infrastructure solutions increases your end user satisfaction with complete visibility and control of your application environment.

Pain points How this offering helps User scenarios Typical buyers

• Increasing maintenance costs

• No end-to-end view of app health

• Missed SLAs

• Find the root cause of application problems 90% faster

• Improve the availability of critical applications by 60-90% with integrated analytics

• Reduce the length of outages and slowdowns by 50%

• Quickly identify and resolve a bottleneck

• Ensure SLA and KPI compliance

• Manage all types of workloads

• Prevent outages

• IT Ops Managers - reduce infrastructure costs

• LOB Owner - accelerate delivery of new services

• App Developers - monitor their apps

List Price Key Competitors Questions to ask

• APM Entry: $25/month per Average Managed Virtual Server (aMVS)

• APM Diagnostics: $120/ month per Average Managed Virtual Server (aMVS)

• New Relic - Customer Analytics performance benchmarks, plug and play in API marketplace, Open platform for community to contribute, wide coverage of languages

• AppDynamics - Automated Remediation , Automated service tickets with ServiceNow, auto provisioning with Chef & Puppet scripts, open platform, API marketplace presence

• Compuware, Quest – Customer behavior analytics, Click streams, conversion rates, page load times,

• Competitive Differentiators:• Flexible delivery options allow for SaaS, on prem,

and hybrid environments• Integrated analytics for faster root cause analysis

and problem resolution• Broad application coverage from new cloud based

languages to traditional enterprise workloads

• Do you have apps moving to – or already in – the Cloud, with connections to your data center?

• Are your app teams decentralizing and gaining independence?

• Are your app lines of business moving to an OpEx model?

#ibmpulse

IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.

Pain points How this offering helps User scenarios Typical buyers

• Need to reduce expenses

• No resources to build an automation infrastructure

• Lack of technical know-how hinders automation

• 30% reduction in execution time of business workloads, resulting in millions of $$$ in savings

• 90% reduction in labor costs and total control of business SLAs

• 35% savings in operation costs and improved staff productivity to support additional workloads

• Get time back by automating your processes - Automate BI & ERP processes in minutes

• Manage your business SLA’s - Run and monitor workloads wherever you are

• IT Ops managers - wants to move to a service-centric delivery organization

• LOB owner – wants low cost solution with immediate benefits, ease of use and scalability to grow with evolving needs.

List Price Competitors Questions to ask

New Customers 1k - 25k jobs each 1k job pack is priced at

$70/mth 25k - 250k jobs each 1k job pack is priced at

$56/mth 250k – 1,000k jobs each 1k job pack is priced at

$35/mth > 1,000k jobs each 1k job pack is priced at

$21/mth

Existing Customers 1k - 25k jobs each 1k job pack is priced at

$56/mth 25k - 250k jobs each 1k job pack is priced at

$35/mth 250k – 1,000k jobs each 1k job pack is priced at

$21/mth > 1,000k jobs each 1k job pack is priced at

$21/mth

(*existing customers continue to pay S&S)

• Traditional vendors (BMC, CA, ASG)• Specific Solution vendors (e.g.

RunMyJobs, Flux, Network Automation, Advanced Systems Concepts)

Competitive Differentiators:• Get started with ZERO investment.

Competitors force you to make an upfront commitment.

• Faster TTV with a ready-to-use application catalog. Competitors need your to reach out to business partners to get started.

• IBM’s strong commitment to Open Standards - With OSLC, workload automation is easily integrated with other OSLC-enabled applications like monitoring, ticketing, etc.

• IT Ops manager: Are you spending too much money building and managing your infrastructure?

• LOB owner: Is it taking too much time to automate your processes, and monitor them through simple interfaces ?

#ibmpulse

SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience

Pain points How this offering helps User scenarios Typical buyers

• Fragmented service management processes are causing inefficiency

• No visibility of assets across the enterprise

• Hard to manage multiple apps on different platforms

• Reduce IT change related outages by 70%

• Improve first call resolution rate by 25%

• Reduce request response times by 60%

• Lower help desk calls by 80% through end user empowerment and service request automation

• Combine processes controls with runbooks

• Synch data across unified domains

• Get a working environment up and running in hours, not weeks

• LOB owner: Low cost, quick TTV, ease of use and scalability to grow with evolving needs.

• IT Manager: Reduce infrastrasture costs

List Price Competitors Competitive Differentiators Questions to ask

• $99/month per Authorized User

• $297/month per Concurrent User

• Legacy IT vendors (e.g. BMC, HP, CA) are digging deep to re-work existing ITSM solutions for SaaS delivery or create brand-new ITSM offerings that compete with and confuse their existing solutions

• Emerging vendors (e.g. ServiceNow) are offering 1) Light-weight “no-install” SaaS offerings, 2) “good enough” – cheap, quick, easy, 3) Very easy to use, little training needed, 4) Focused on social media interactions, 5) Often pushing PaaA solutions to build their IT infrastructure

Know Weaknesses•No concurrent user pricing; weak in change mgt, analysis and planning; charges extra for run book functionality; No on-premise solution

SCCD Strengths Consistency – Single offering for both Enterprise & SMB, and SaaS and On-Premise Capability –Provide deeper functionality than competitionIntegration - With a wide range of IB/3rd party products to satisfy any clients needs

• Do you want a complete integrated service management solution? Into configuration, Change, asset or license management?

• Is IT infrastructure support a core competency or an ongoing headache?

• Are your lines of business moving to a SaaS and/or OpEx model?

Entitlement Price

• $49/month per Authorized User

• In addition to avg S&S cost of $26//month per Authorized User

#ibmpulse

Application

Specific

Licensing(ASL, xSP)

BP’s solution bundled with IBM perpetual

software

IBM SaaS Referral Incentive

Leverage IBM SaaS Offerings

to enhance solutions

IBM SaaS

Solution Provider

(SSP)

BP’s expertise with IBM SaaS

BP delivered

SaaS

IBMdelivered

SaaS

•BP sell, invoice, deliver IBM Sales Rep incented

•Earn 25% on subscription parts, for life of contract (single-user)

•Earn up to 35% off tier price for life of contract (multi-customer)

•Level 1 support provided by partner

•Tier one contractual relationship between IBM and BP

•BP prices independently

• BP identify Opportunity, Co-Sell with IBM

• Earn 15% fees on first contract subscription

• Level 1 & 2 support provided by IBM

• IBM handles pricing

Autonomous selling

Level 1 & 2 Support provided by the partner

Restricted-Use License; License held by partner

Known price to BP for the IBM SW for the duration of contract

Monthly parts available on selected products

IBM Software

Value Plus (SVP)

Leverage standard two

tier distribution channel

•BP resells, invoice, deliver IBM Sales Rep is incented

•Authorized Partners only

•Standard VAD/ VAR incentive model

•IBM provides Level 1 & 2

•Partner Guided Selling tool used to quote and sell

What are the Business Partner SaaS Programs?What are the Business Partner SaaS Programs?

Re-Marketers

BP Storefront

Referral

#ibmpulse

The SaaS & Service Engage Center of Competency serves as a war room, providing a resource for sellers to get help closing a SaaS deals.

Question

Back Office team

SaaS CoC

Customer Fulfillment

Answer

IBM Seller Community

Brand resources (Legal, PLM, Sales, Strategy, Pricing,

BizDev, Competitive)

Partner Seller Community

Partner

IBM Seller

SaaS Operations &Environment team

Question

Back Office team

SaaS CoC

Customer Fulfillment

Answer

IBM Seller Community

Brand resources (Legal, PLM, Sales, Strategy, Pricing,

BizDev, Competitive)

Partner Seller Community

Partner

IBM Seller

SaaS Operations &Environment team

The CoC web site provides information on the following:

• Overviews• FAQs• Terms & Conditions• Privacy • SaaS vs on-premise• Competition• Pricing• ELAs & SaaS• DSR / ISR scripts• Typical sales cycle• Links to SaaS Offering

info

Sellers can use the CoC:• For self-service• To submit a question

to the community• To request help

Where can I get help with a SaaS deal?Where can I get help with a SaaS deal?Where can I get help with a SaaS deal?Where can I get help with a SaaS deal?

Partners - http://www.ibm.com/csicenter/partners/*Partners - http://www.ibm.com/csicenter/partners/*

#ibmpulseHow do I maintain my leads? How do I maintain my leads?

BP provides their unique IBM Service Engage url to client

BP provides their unique IBM Service Engage url to client

SaaS ISRSaaS ISRSaaS ISR informs BP that client has started trial

SaaS ISR informs BP that client has started trialBPBP

ClientClient

SaaS Inside Sales Rep receives client response associated with BP and matches to trial list

SaaS Inside Sales Rep receives client response associated with BP and matches to trial list

Client registersClient registers Client receives free trialClient receives free trial

11

22 33

4466

Trial listTrial list

SaaS Inside Sales Rep qualifies client (Optional)

SaaS Inside Sales Rep qualifies client (Optional)

55

SupportLearn Explore Try Use / Buy Extend

#ibmpulse

What do I need to know about Data Privacy?What do I need to know about Data Privacy?

Personal data generally includes information relating to an individual -think business card (e.g. names, email addresses, home address) In some countries, also includes information about identified partnerships, associations, or corporations.

IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be the client responsible for entering the data.In most cases, Passport Advantage agreement covers data privacy for personal data.

EU and Switzerland have additional data privacy regulations but have established the ability to create a framework with the U.S for accessing personal data.

C&SI SaaS is in the process of obtaining EU Safe Harbor certification. This requires a risk assessment after we Go Live. In the meantime, we have security measures in place to restrict access to EU client data and for IBM non-U.S. employee access to Amsterdam hosting center in order to comply.

IBM has an Online Privacy Statement which is another EU Safe Harbor requirement

See the SaaS Center of Competency web site for further details on country-unique privacy requirements

See the SaaS Center of Competency web site for further details on country-unique privacy requirements

#ibmpulse

C&SI Strengths: Customer choice: On-premise,

SaaS, integrated experience Integration with broader Service

Management capabilities Accelerate sales velocity with

Service Engage Unsurpassed breath of

capabilities

C&SI Strengths: Customer choice: On-premise,

SaaS, integrated experience Integration with broader Service

Management capabilities Accelerate sales velocity with

Service Engage Unsurpassed breath of

capabilities

What should I do next?What should I do next?What should I do next?What should I do next?

Go to Service Engage, learn about it, provide feedback

Learn about SaaS and C&SI’s 1H 2014 SaaS offerings.

Approach your top 5 customers with these questions:

• Does the overwhelming cost of maintaining their infrastructure hinder developing new services that could bring in additional revenue?

• Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors?

• Do they want to lower their Total Cost of Ownership (TCO) ?

Determine where your customer wants to be, and how they should get there.

• Get them to Service Engage today

Make a SaaS proposal.

Go to Service Engage, learn about it, provide feedback

Learn about SaaS and C&SI’s 1H 2014 SaaS offerings.

Approach your top 5 customers with these questions:

• Does the overwhelming cost of maintaining their infrastructure hinder developing new services that could bring in additional revenue?

• Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors?

• Do they want to lower their Total Cost of Ownership (TCO) ?

Determine where your customer wants to be, and how they should get there.

• Get them to Service Engage today

Make a SaaS proposal.

#ibmpulse

Sales Kits: SaaS sales kit in PartnerWorld At Go Live see the SaaS updates to these sales kits:

• IBM Application Performance Management sales kit in PartnerWorld

• IBM Workload Automation sales kit in PartnerWorld• IBM SmartCloud Control Desk sales kit in PartnerWorld

Important web sites Center of Competency Service Engage

To learn more about the technologies: Cloud, Cloud computing SaaS: WWW, YouTube

Where can I learn more?Where can I learn more?

Back upBack up