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IBM Software Group
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IBM Software Group
Build with the Best
A Strategy For Jointly Growing Revenue
Glenn Newlove Lotus SWG May 2009
IBM Software Group
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Key Discussion Points
Increase your margins with integrated solutions and faster implementations
IBM has a spectrum of partnering choices to match your business model Influence
Resell
Software as a Service (SaaS)
We can build a plan to move quickly and attack the market together
IBM Software Group
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So Which Partnering Option is Best for Me?
… fundamental points to ponder… Am I prepared to take a more proactive stance in recommending IBM SW
with my solution?
Do I prefer getting a sales referral fee or bundling and reselling?
If I bundle/resell IBM SW, how can I get predictable pricing at lowest cost?
Do I want to be the single point of contact for my entire solution stack?
Could my customer call me for basic L1/L2 support?
Do I prefer to have a single WW contract with IBM?
Do I have SaaS in my go-to-market offerings portfolio?
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SW Partnering Options with IBM
Influence Software Value Incentive (SVI)
• Rewarded for Opportunity ID and Ownership• Active participant in sales engagement• Resell optional• Requires IBM brand certification
Sell & Fulfill
Value Advantage Plus
• Instant rebate program for authorized repeatable solutions
• Resell program only• Must include your value added solution• Full Use license
Application Specific License
(ASL)
• Ultimate pricing control• One-stop shopping for customer• Tight solution integration• Restricted Use license
Software as a Service
Software as a Service (SaaS)
• Total solution • Hardware + middleware • Subscription model
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Software Value Incentive (SVI)
Rewards partners for successfully influencing IBM SWG deals to close
Rewards opportunity identification and selling
Partners receive SVI payments direct from IBM - no need to resell
No restrictions on use of payments
SVI membership requires IBM software certifications
Software is fulfilled through standard distribution processes
BENEFITS Rewards partners for influence
Deal registration system protects partners’ registered opportunities
Can be combined with VAP
Delivers payments of:
10% of net customer invoice for Large Enterprise Deals
20% of net customer invoice for SMB Deals
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Value Advantage Plus
Reselling IBM middleware with your value add solution
Pricing determined by end customer’s Passport Advantage (PPA) discount level
A PPA reseller contract is required for each country in which you sell
You purchase the IBM SW via Value Added Distributor (VAD)
IBM provides support for its middleware
Customer receives unrestricted license for the SW
Rebates available for sale of your approved value added solutions
BENEFITS Customers familiar with PPA model
Unrestricted use licenses:
Customer can use licenses with other apps in their enterprise
No L1/L2 support required
Can add substantial margin beyond standard PPA resell
Up to 40% available when combined with SVI incentives
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Application Specific License (ASL)
Allows ISVs to embed/bundle IBM middleware with their application
Can go to market with a total solution
End users may or may not know IBM middleware is included
All solution support, including L1/L2 support for the IBM SW, is provided by the ISV
The IBM license warranty is held by the ISV
The end user’s “right to use” allows only restrictive use of the code
Costs are predictable
Partner determines end-user pricing
Annual revenue commitment determines discount
BENEFITS Simple WW contract eases
paperwork
Partner is single face to the customer
More revenue through annual renewal streams
Customer receives pre-integrated solution
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Software as a Service (SaaS)
ISVs embed IBM middleware into their remotely delivered service ISV goes to market with a total solution End users may or may not know IBM
middleware is included
Solution support is provided by the ISV including L1/L2 support for the IBM SW, - No relationship between IBM and end user
IBM license warranty is held by the ISV End user contracts directly with ISV via a
subscription model
Costs are predictable Partner determines end user pricing Flat, annual billing model helps tie IBM SW
costs to SaaS solution revenue stream
BENEFITS
Pricing models mirror typical SaaS (Annual contracts / no commitments)
Significant discounts to ISV for providing Level 1 and Level 2 support to end user
Use of IBM SW in conjunction with either IBM HW or IBM Managed Hosting qualifies ISV for SaaS Specialty Partner
SaaS Specialty Partners receive go-to-market and demand generation support
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Recap
Software Value Incentive
Value Advantage Plus
Application Specific License
Software as a Service
Basics
Rewards for identifying and selling IBM middleware
Instant rebate program for selling value added solutions.
Resell model for deep embed or tight bundling
Embed IBM SW into your subscription service
Pricing Model
Fees paid directly to you for registered and closed opportunities
Instant rebate based on end user Passport Advantage entitlement
You determine customer price; predictable IBM costs
Fixed price from IBM; you determine customer prices
Support IBM provides support
IBM provides support
You provide basic L1/L2 support
You provide basic L1/L2 support
Contract Scope
Must have local certified skills to participate. Country specific program / contracts
Must purchase IBM SW from distributor. Country specific program / contracts
Worldwide contract Worldwide contract
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What the analysts are saying…
“The best overall Business Partner Program.”
Site IQ, IBM PartnerWorld Portal Best Practice Assessment, 2008
“IBM’s efforts are a ‘best practice’ in the industry.”
IDC, Worldwide Independent Software Vendor Programs, March 2006
IBM was recently named best in class in 28 out of 31 categories as rated by Forrester Research.
Forrester, Choosing an ISV Program, June 2008
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Forrester names IBM Partner Programs Best in Class
"ISV partner programs are a "ISV partner programs are a great resource for creating great resource for creating compelling offerings, taking compelling offerings, taking them to market, and deploying them to market, and deploying them, sometimes in them, sometimes in cooperation with other cooperation with other partners.partners.
IBM’s program is one of the IBM’s program is one of the most mature, with the global most mature, with the global scope of a firm that has been scope of a firm that has been a leading enterprise a leading enterprise computing supplier for computing supplier for decades.”decades.”
“Choosing an ISV Partner Program”June 2008
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IBM ISV and Developer Relations(IDR)
Building an Ecosystem of Business Partners, IT professionals and academic leaders
Renate Maier
Manager of ISV and Developer RelationsIBM Central and Eastern Europe, Middle East and Africa (CEEMEA)
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ISV & Developer Relations (IDR)
What is IBM ISV & Developer Relations?
The Center of the Ecosystem: IBM Innovation Centers
IBM Academic Initiative
IBM developerWorks
PartnerWorld Industry Networks
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IBM ISV & Developer Relations: Innovation powered by community
We aspire to drive market leadershipWe aspire to drive market leadership
for IBM by building a community for IBM by building a community
of partners, IT professionals and of partners, IT professionals and
academic members, who passionately use, academic members, who passionately use,
recommend and add value recommend and add value
to our products and solutions.to our products and solutions.
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ISV & Developer Relations
What is IBM ISV & Developer Relations?
The Center of the Ecosystem: IBM Innovation Centers
IBM Academic Initiative
IBM developerWorks
PartnerWorld Industry Networks
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Why they matter• Provide a place where
Partners, IT professionals, and academics can find answers to everyday questions, build cutting edge skills, and explore the latest open-standards-based and open source technologies.
• Unite a community impassioned about building faster, smarter solutions for business, and create cooperative selling relationships across the globe.
IBM Innovation Centers
What they are• IBM Innovation Centers are the
physical and virtual gathering places for business, academic and technology innovators.
• Support locally and reach globally: Provide expertise in your local market while extending your reach worldwide.
The heart of the ecosystem
Over 40 centers worldwide!
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Full ServiceIBM Innovation
Centre (Hub)
STUTTGART
LA GAUDE
IBM Innovation Centre (Satellite)
IBM InnovationCentre (Base)
eArchitects / Events
STOCKHOLM
HELSINKI
OSLO
COPENHAGEN
MOSCOW
PRAGUE
WARSAW
BUDAPEST
BRATISLAVA
ZURICH
HURSLEY
DUBLINCentre Project in
progress
KIEV
BUCHAREST
LJUBLJANA
ISTANBUL
JOHANNESBURG
CASABLANCA
BARCELONA
MILAN
TEL AVIV
PARIS
MADRID
LONDON
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Just launched 2008:
Johannesburg, South Africa
Zurich, Switzerland
Istanbul, Turkey
Launching local presence in emerging markets: Expanding IBM’s global footprint
Coming in 2009:
Bucharest, Romania
Ljubljana, Slovenia
Ho Chi Minh City, Vietnam
41 centers worldwide!
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IIC Activities - Workshops and Seminars
Learning from Experts
Grow your fundamental skills and in-depth knowledge
Worldwide delivery of technical and sales enablement education
Personalized learning
Multiple Delivery Methods
Web-based courseware training
Rich interactive simulations
Remote and hands-on classrooms
Host developerWorks workshops
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ISV & Developer Relations
What is IBM ISV & Developer Relations?
The Center of the Ecosystem: IBM Innovation Centers
IBM Academic Initiative
IBM developerWorks
PartnerWorld Industry Networks
IBM Venture Capital Group
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IBM Academic Initiative
ibm.com/university/academicinitiative
Building a pipeline of skilled students for the IT jobs of tomorrow
What it is
•No charge access to IBM software and hardware systems to help academic leaders create a powerful and dynamic classroom experience.
•Skills, certifications, contests and more to help students get real world experience and accreditation in IBM’s leading edge technologies.
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ISV & Developer Relations
What is IBM ISV & Developer Relations?
The Center of the Ecosystem: IBM Innovation Centers
IBM Academic Initiative
IBM developerWorks
PartnerWorld Industry Networks
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What we offer
IBM developerWorks is the destination on the web for developers and IT professionals to stay on the cutting edge and develop their skills on open standards technologies and IBM products.
Delivers the deep technical code, content, and community you need and depend on to get answers to your tough technical questions.
Delivers unparalleled content in over 4 languages, including articles, tutorials, demos, events and more.
ibm.com/developerWorks/aboutdW
developerWorks: IBM’s community of developers, IT Professionals, & students
Key Statistics:
Over 1M skill activities per year
34 industry awards
Serves 200 countries
4 local language sites
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Developer & DBA
Project Manager
Tester
Student
Application support
AnalystArchitect
Consultant
developerWorks has a wide breadth of technical content and community offerings for many IT roles
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Standard trial code downloads
Online/hosted sandboxes
Beta code
Updates & fixes
NEW! IBM products are available on the Amazon Web Services Cloud.
Plus additional services to help you evaluate – demos, tutorials, forums, etc.
Need to evaluate an IBM product or technology? We’ve got you covered with trial code & more
Example: Try WebSphere Portal Express to see if it’s the best product to create a rich internet application
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Bringing developerWorks to you
Follow us on Twitter www.twitter.com/developerworks
developerWorks gizmos iGoogle, Yahoo, Netvibes
developerWorks iPhone app ibm.com/developerWorks/iphone
Mobile developerWorks wireless.ibm.com/developerWorks
• Learn more at ibm.com/developerworks/dwgizmos
• Download the Google desktop gadget
developerWorks on Facebook
www.facebook.com/apps/application.php?id=5663866319
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ISV & Developer Relations
What is IBM ISV & Developer Relations?
The Center of the Ecosystem: IBM Innovation Centers
IBM Academic Initiative
IBM developerWorks
PartnerWorld Industry Networks
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IBM PartnerWorld Industry Networks
What it is• Education, assistance, and
expertise to help Business Partners build and test solutions.
• Resources to help Business Partners collaborate across the industry.
• A Virtual Marketing Department: personalized help to Business Partners create and implement campaigns—and close deals today.
It’s what we do together that sets us apart
ibm.com/partnerworld/industrynetworks
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Why it matters
Business Partners can:
Get to market fast with technical resources and programs.
Uncover more opportunities and close deals faster with marketing and selling resources.
Expand their reach, engage new opportunities, and increase sales revenue through collaboration.
Leverage IBM leadership in new and emerging markets—like SaaS, Business Continuity, and more.
ibm.com/partnerworld/industrynetworks
IBM PartnerWorld Industry NetworksIt’s what we do together that sets us apart
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Partnerships that Fail Successful Partnerships
Bridging to Success – Essentials to Partnering
Small business benefit for 1 or both parties
Limited commitment to success
Lack of clear incentives/penalties
Desire to compete, rather that partner
Pure technology partnership
Pure sales/GTM partnership
Benefit/cost ratio is significant
Hard commitments on both sides
Sales and technology alignment
Close synchronization of product plans/strategy
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Industry’s Broadest Middleware Portfolio … delivering proven value to solve real business problems
Empowering Peopleto share their passion and expertise, foster collaboration and innovation, and improve business efficiency, decision-making and responsiveness
Lotus DominoWebSphere Portal ServerLotus QuickrLotus SametimeLotus Connection
Business Process FlexibilityTo develop and rapidly deploy
innovative business models with flexible, optimized processes
WebSphere Business ModelerWebSphere Business MonitorWebSphere Process ServerWebSphere Integration Developer
Information on Demandto optimize enterprise performance by
unlocking the business value of information
IBM DB2IBM FileNet
IBM Information ServerIBM Identity and Relationship Resolution
Service Managementto enable innovation by reducing operational labor, and improving asset productivity and quality of service
Tivoli Unified ProcessTivoli IT CAMTivoli Access ManagerTivoli Identity ManagerTivoli Compliance Insight Manager
Software Lifecycle Managementto better govern the business process of software and systems delivery enabling
innovation at lower cost
Rational Application DeveloperRational Portfolio Manager
Rational Asset Manager
Service Oriented
Architecture
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Software Value Incentive (SVI)
Incremental incentives for: Identifying new opportunities, and…
Active sales engagement
Focusing on the SMB market
Selling Solutions through VAP
Opportunity registration system: Protects partners’ registered opportunities
Protects partner margins
Maximizes partner benefits received.
Single framework: Covers all SWG brands
Applicable to multiple Business Partner types
(VARs, ISVs, Consultants & Integrators)
Reduces Complexity
Rewards Value
Protects Contribution
Business Partner Highlights:
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Potential Revenue for SW Transaction – SVI Only
5
5
10
10
1.5
1.53
3
0
2
4
6
8
10
12
14
16
18
20
100K LE 100K SMB 30K LE 30K SMB
SVI-only R evenue Opportunity ($K)
SVI Sell
SVI ID
“LE” = Large Enterprise
ID and Sell activities must accompany each other
SVI ID SVI SellTotal Fee
Opportunity
SVI LE 5% 5% 10%
SVI SMB 10% 10% 20%
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Potential Revenue for SW Transaction – VAP + SVI
5
5
15
10
15
15
1.51.5
4.5
3
4.5
4.5
0
5
10
15
20
25
30
35
40
100K LE 100K SMB 30K LE 30K SMB
SVI + VAP/PPA Revenue/Margin Opportunity ($K)
VAP Margin
Base Resell margin (PPA)
SVI Sell
SVI ID
LE = Large Enterprise
SVI ID SVI SellBase Resell margin (PPA)
VAP Margin Total Fee/ Discount
Opportunity
SVI + VAP LE 5% 5% 15% 25%
SVI + VAP SMB 10% 15% 15% 25%
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SVI Call To Action
Visit: www.ibm.com/partnerworld/softwarevalueincentive
Review requirements for Certifications and Online Certification Opportunities
Make sure certifications are up to date and captured within IBM PartnerWorld databases. Questions? Contact IBM PartnerWorld Contact Center: 1-800-426-9990
Join SVI Program
Upon notification of approval, begin submitting deals for SVI credit via Global Partner Portal
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So Which Partnering Option is Best for Me?
… fundamental points to ponder… Am I prepared to take a more proactive stance in recommending IBM SW
with my solution?
Do I prefer getting a sales referral fee or bundling and reselling?
If I bundle/resell IBM SW, how can I get predictable pricing at lowest cost?
Do I want to be the single point of contact for my entire solution stack?
Could my customer call me for basic L1/L2 support?
Do I prefer to have a single WW contract with IBM?
Do I want a ‘deep embed’ of the middleware in my solution?
Do I see value in working exclusively with IBM offerings?
Do I have SaaS in my go-to-market offerings portfolio?