SaaS & Bridge to Cloud Overview Iztok Šumak, SW Channel Sales Manager SEE SaaS & Bridge to Cloud Overview #disrupt&grow #ibmpwlc Sarajevo, 11.5.2017

12/10/2009 SaaS

Cloud opportunity is growing More than 80% of enterprise IT organizations will commit to hybrid cloud architectures by 2017. By 2018, at least half of IT spending will be cloud-based. By 2018, 50% of the apps running in public cloud environments will be mission-critical.* Source: IDC http://www.gartner.com/newsroom/id/3188817

Where is the opportunity on “as a Service” business models? Worldwide SaaS and Cloud Software Revenue by Segment, 2014–2019 ($M) SaaS represents the biggest segment SaaS CAGR: 16% PaaS is the fastest growing segment PaaS CAGR: 31% Adapted from IDC, “Worldwide SaaS and Cloud Software 2015–2019 Forecast and 2014 Vendor Shares”, August 2015

SaaS Results – trends SaaS 2014 2015 H1 2016 Europe 9.29 23.69 19.84 9.29  23.69 19.84 CEE 1 %NL Europe  3.0% 5.6% 11.6% %NL CEE 1.3%  1.2% 5.3% 5

Cloud Opportunity vs. Channel Readiness 94% of Vendors in the Market have a Cloud strategy Only 30% of Business Partners are Cloud- ready "70% of CIOs will embrace a Cloud-first strategy in 2016”(*) Customers Vendors (*) Source: “Partner of the Future: 10 Transformations IT Solution Providers Must Make”, IDC 2015

IBM Growth Initiatives Recent Acquisitions (since 2010) Financial governance | 2010 Governance, compliance, risk management | 2010 Web analytics | 2010 Financial risk management| 2011 Master data management | 2010 Data warehouse appliances | 2010 Procurement & contract mgt 2011 Enterprise marketing mgt | 2010 Pricing, promotion and product mix optimization | 2012 IBM Growth Initiatives Recent Acquisitions (since 2010) Analytics Cloud Social Smarter Commerce Customer experience mgt | 2012 Data navigation & exploration| 2012 Talent Management | 2012 Mobile computing platform | 2012 Mobile mgt | 2010 Mobile customer experience management | 2012 Cloud integration | 2010 Automated BI | 2013 Compensation & sales performance mgt | 2012 Web fraud detection | 2013 Customer & network analytics | 2013 Mobile Customer Engagement | 2013 Network automation | 2010 Automated data migration | 2012 Hosted, multilingual e-mail service | 2009 Small business server solutions | 2008 FIBERLINK Mobile Device Mgt Database As A Service | 2013 eXtreme File Transfer | 2014 Security Security Intelligence | 2011 Fraud protection and advanced security | 2013 B2B integration | 2010 Cloud computing infrastructure | 2013 Email Marketing & Marketing Automation 2014 Mobility Saas SaaS in 2016 7

SaaS & Business Partners – a business model evolution Customer makes buying decisions and is the integrator and maintainer (or uses a Business Partner) to manage all components of the IT value stack IBM Software Technical Services Business and SW Configuration Consulting Technical Support End User Education Traditional resale - On Premise Up front incentive $ IBM Hardware Network Infrastructure Middleware Value Add Services Operating System Application Integration Servers, Storage Customer makes buying decisions, assisted by Business Partner. Provider makes decisions on components of the IT value stack Subscription Cloud / On Premise Integration Services Planning, Onboarding, Enablement, API Integration and Migration Consulting End User Education Managed Services / Other SaaS Recurrent incentive $ SaaS presents Business Partners with incremental opportunities for high value services

2017 IBM SW - Channels: Routes to Market 3 Reseller (SVP) Embedded Solutions Agreement (ESA)* SaaS Solution Provider (SSP) Resell IBM Hosted SaaS Strategic IBM Partner relationship Authorization/ Certification by Product Group SVP Product Group IBM provides L1/L2 Support Create Embedded Solutions An embedded/derivative solution is an Integrated bundle of partners application (services) and IBM software Value Add Requirement: ESA partner’s IP or services must add significant new functionality or capability to the IBM Product when the partner integrates the IP or service with the IBM Product to create a unique partner branded solution Solution Provider provides L1/L2 Support On-premise; L1 support SaaS Service Provider IBM Business Partner sells sub-access of the IBM SaaS to End Users or sells Business Partner’s productive use of IBM SaaS as part of their Service to the End User BP Tech & Sales certification requirements IBM BP owns the relationship Solution Provider provides L1 support SaaS Accelerate Cloud Revenue  Obtain velocity & reach *ASL Replacement

The Bridge-to-Cloud Play is a price Play designed to assist Clients in moving from S&S to SaaS with the help of Business Partners

Determine if Cloud is right for your Client without Risk There is no need to wait to gain the value of Cloud. The Bridge-to-Cloud channel play provides clients with a full scale opportunity to engage with the Cloud at no risk: Purchase Cloud and gain S&S without additional fees IBM extends your S&S entitlement for the term of the Cloud agreement provided your are current with your S&S Engage with the Cloud at full production scale Maintain entitlement without additional fees during your Cloud engagement At the end of the Cloud engagement contract, if you choose to return to On- Premises S&S, you may do so without S&S penalties (for most SaaS services) Only specific approved part numbers are eligible for the play. Those part numbers are continually changing

Clients are eligible for the Play if and only if The client is current on applicable S&S payments The client must be in compliance with regards to entitled S&S licenses The client has parts that are eligible for conversions for the play The client is willing to sign a Cloud contract with a term at least 12 months longer than the current S&S entitlement (i.e.: If a client has 5 months remaining on their current prepaid S&S, the new Cloud term must be at least 17 months.) Business Partners and their clients in all IBM IOTs are eligible for the promotion The client is part of a multi-element, ELA agreement (to be in pilot) The client is part of an IULA The client is not current on S&S payments for the part numbers being transitioned to the Cloud As of today, a client is not eligible if

Bridge-to-Cloud Sales Play - Process 2 Authorization spreadsheet B2Cloud Addendum Offer Letter 4 5

Clients / Business Partners Benefits Client Benefits Provides clients the ability to move current entitlement from on-premise S&S to SaaS with significantly reduced TCO for both. Clients retain their licenses. S&S is transitioning to SaaS. Allows clients to move back to on-premise software if SaaS is not right for them without paying an S&S reinstatement (for most SaaS services). Business Partner Benefits: Provides a great door opener to have a compelling SaaS discussion with existing clients. Creates Partner Services opportunities (migration, add-on products). Adds value to a domain discussion by positioning cloud as an attractive option. Straight forward offering allows Partners to reach out to more clients and close deals faster. Find further information in Partnerworld: http://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_bridge-cloud-sales-play-business-partners

https://www.ibm.com/cloud-computing/built-on-cloud/saas-migration https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_bridge-cloud-sales-play-business-partners http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?subtype=ST&infotype=SA&htmlfid=KUJ12410USEN&attachment=KUJ12410USEN.PDF

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