IBM Software Business Partner Guide

IBM Software Business Partner Guide
September 2012 IBM Software Business Partner Guide This IBM Software Business Partner Guide is a valuable reference to introduce new partners to IBM Software business partner programs, incentives, and opportunities. The presentation provides step by step guidance with direct links to key product and program information, designed to help focus and develop Business Partner knowledge and selling skills for IBM Software. Quick links to key marketing programs and benefits to drive demand generation & build pipeline are also included. With IBM Software cross-brand information, as well as brand-specific information, this presentation is designed in a modular format allowing customization for your specific needs. You can remove or retain the brand specific sections as needed, while maintaining the table of content links to easily and quickly jump to the desired section while presenting in slide-show mode. The next slide is our table of Contents slide

IBM Software Guide – Table of Contents
How to Make Money Selling IBM Software IBM Strategy and the Software Opportunity Getting Started Software Value Propositions Today we will review the following sections: How to make money selling IBM Software The IBM Strategy and Software Opportunity Step by step guidelines on getting started as a new IBM partner And Software Value Propositions So let’s begin by talking about how to make money selling IBM Software – on the next slide Business Analytics Collaboration Solutions (Lotus) Industry Solutions Information Management Mobile Foundation PureSystems Rational Security Tivoli WebSphere 2

Join the IBM Software Team TODAY and Increase Your Profit Potential
IBM Software Business Partners have higher overall satisfaction Fee-free: no program enrollment fees Incentives for new licenses and renewals 36% more gross profit per deal 15:1 increased profitability due to IBM Software Value Plus Authorization 9:1 increased revenue due to IBM Software Value Plus Authorization We’re here today to talk about how you can increase your profit potential with IBM Software. We regularly survey our partner community to ensure we are hitting the mark on programs and investments to help our partners grow their business. Let me start by sharing a few facts from recent studies. IBM Software Business Partners are more satisfied with IBM than the competition IBM Software business partners are consistently more satisfied with IBM than they are with our top competitors, as reported in our annual IBM BP Diagnostics Study that surveys IBM and competitor partners each year. Many items on this page contribute to that result – lower program costs, greater profit opportunity per deal, rich incentives, and bottom line positive profitability and revenue impact from new value-based software BP programs. Let’s talk about a few of these points. Lower Program Costs: In our 2009 IBM Software Business Partner Profitability Study, BPs reported that IBM partner program costs are very competitive, particularly when compared to Oracle. Overall start-up program costs for top-tier IBM BPs were reported to be 30% less, and ongoing costs 34% less, than those reported by Oracle BPs. Oracle charges top tier program enrollment fees (up to $9 995), while IBM enrollment for all program levels is at no charge. BP Participation in New License AND Renewal Businesses: Additionally, IBM Software BPs benefit from both new license and renewal business revenue and incentive opportunities with clients vs. just the new license business for Oracle BPs. In fact, at our recent IBM Software BP Kick-Off in January 2012, we announced a new incremental Value-Add Renewals Incentive that will rollout this year. Rich Education Incentives: IBM’s You Pass, We Pay benefit for education reimbursement is generous at $50K US per year, which supports the fact that over 80% of our top Business Partners are planning to increase their certifications and invest in skills, and report a 20% higher certification rate than our competitors’ top Business Partners. Small Deals: IBM’s strategy is to pass leads <$100K to business partners. IBM Software BPs report that the revenue from leads <$100K averages $1M, and in 2011 we announced a simplified process for Software Value Incentive deal registration <$100K which reduces administration costs. As of January 2012, the yield on leads created by BPs and leads passed to BPs from IBM has been higher than average for our software business. One of our top focus areas is our contribution to your bottom line profitability: More gross profit per deal According to our 2009 IBM Software BP Profitability Study, IBM Software's top tier BPs make more profit and revenue on middleware deals than competitors' top tier BPs. Specifically, our high value BPs make an average of 36% more profit than competitor top BPs, and they realize 60% more associated revenue (hardware, software, services) than competitors' top BPs on middleware deals with customers. Increased Profitability from the new IBM Software Value Plus Program In January 2010 when we introduced the IBM Software Value Plus program (SVP) focused on helping partners build high value skills and solutions. IBM SVP Authorized BPs have reported increased profits at a ratio of 15:1 vs. those who saw lower profits, and increased revenue at a ratio of 9:1 vs. those who saw lower revenue, since becoming SVP Authorized -- as reported in our 2011 IBM Software SVP Program Assessment study recently published on IBM PartnerWorld. (for more information, go to our IBM PartnerWorld software home page at Additional Findings: Nearly half report a positive impact on profitability, and over half report increased revenue since becoming SVP Authorized 2/3rds believe SVP Industry Authorization, and nearly 60% believe SVP Capability Authorization, will positively impact profitability Over 80% value IBM Software certification, and over half will seek new certifications in next 6 months Lead passing is the top profitability driver for small deals (<$50K) Rich Incentives And finally, IBM Software BP incentives under the new IBM Software Value Plus program umbrella are a significant contributor to these results: IBM’s Software Value Incentive (SVI) rewards partners up to 20% in incentive fees for value add and influence across all stages of the sales cycle via a secure and easy to use deal registration system: 10% for identifying the opportunity and actively selling; plus another 10% if the customer is considered an SMB account. IBM’s Software Value Advantage Plus (VAP) rewards partners with additional rebates for value-add integration of IBM Software with their solutions with rebate-based incentives. Both initiatives offer very rich rewards for value-added solutions within the VAP program and SVI influence fees beyond just a referral fee, as in Oracle's Referral Program These are just two examples of our rich incentive programs. We also offer additional rebates and incentives for General Business deals, competitive displacements, small deals, and we recently announced new 2012 incentives for SaaS, Renewals and integrated SW and HW solutions. (for more information, go to our IBM PartnerWorld software home page at Our goal with this opening slide is to capture your attention and make the point that IBM Software is the place to be. Join us on our path to building a Smarter Planet, and along the way, enjoy the opportunity to build Smarter Profits with IBM Software! On the next slide let’s talk about why become an IBM Business Partner 36% Up to $50K “You Pass, We Pay” course and test reimbursement for Premier Business Partners Revenue from <$100K leads passed averages $1M Gross Profit from Middleware Deals Rich IBM Software incentives reward Business Partners for value-add, influence and referral Source: 2009 IBM Software Business Partner Profitability Study, 2010 IBM Business Partner Diagnostics Survey, 2011 IBM SVP Program Assessment, competitor websites 3

Why Become an IBM Business Partner
Why Team with IBM Why Invest and Grow with IBM Highly rated compensation package for maximum cash flow and return on investment (with additional rewards for mid-market focus and value-add) Exploit the market pull of the industry’s largest and well recognized IT solution vendor for more business opportunity, with a comprehensive, technically advanced portfolio of infrastructure software Comprehensive technical resources, education and enablement to build expertise and minimize your cost via PartnerWorld, the no-cost Virtual Innovation Center, or advanced support via Techline. Improve customer responsiveness with comprehensive, cost-effective accessible technical support with access to 24 hour multi-format technical resources and enjoy rewards through the IBM’s certification program Leverage IBM Software marketing resources quickly and easily with cost-effective, personalized campaigns and help from our expert agencies and Marketing Centers. Grow your IBM Software business with revenue multipliers judged highest in the industry by BPs. Enjoy significant up-sell/ cross-sell and annuity revenue opportunity, and leading financing options for competitive advantage. For Business Partners Who need: • The capability and incentives to provide a total solution.  • To achieve profitability and growth selling these solutions, offerings, and products.  • Sales and technical enablement.  • Some level of channel harmony.  • Joint sales activities.  • Technology and market leadership.  IBM provides: • Access to clients, IBM sales representatives, and demand generation.  • Capability to leverage the IBM brand image, technology leadership, and support to improve credibility with prospects.  • An extensive and integrated portfolio of industry-leading hardware, software, services and offerings for On Demand Business that provides their clients with competitive advantage solutions.  • Industry-leading channel enablement programs, demand generation, sales and technical support.  • Stable channel construct and improved profitability model for the channel.  • Illustration of Business Partner investment costs and return on investment (ROI).  And according to the IDC 2011 Partner Profitability study partners that sell IBM Software report the highest overall retained margins. They also report that IBM Programs are greater accelerators to their business as compared to others. On the next slide let’s talk about why IBM Partners are critical to IBM’s business goals and challenges. Become part of “Team IBM” to optimize effectiveness and exploit economies of scale with the aid of IBM resources to help optimize your participation in IBM offerings, share resources, skills, support, opportunities, and jointly develop joint go-to-market plans and tactics using the IBM award-winning PartnerWorld portal. IDC Partner Profitability 2011 Study Business Partners that sell IBM Software report: The highest overall retained margins for the resell of their primary brands The components of IBM's programs are greater accelerators to their business as compared to the total population. 4 Source: IDC Multi-Client Study, Partner Profitability 2011: Changing Business Models and Requirements in the Evolving IT Channel Ecosystem

IBM Business Partners are vital to IBM’s business
The IBM Business Partner Charter – guiding principles to work together IBM Business Partners are vital to IBM’s business. Our relationship is a collaboration of equals. We strive to provide the industry’s best Business Partner experience in all respects. We ground our relationships in the core values of IBMers IBM Business Partners are vital to IBM’s business. The IBM Business Partner Charter represents a continuing commitment to our relationship, and lays the foundation for mutual growth and greater profitability. The Charter guides our relationship with each and every one of you. Furthermore, this document serves as IBM's formal commitment that Business Partners are IBM's principle route to market in the midmarket, a market that has seen tremendous growth in recent years. IBM Business Partners play a critical role in building a smarter planet. They provide midsize companies with groundbreaking solutions that improve efficiency and accelerate ROI. They help smaller companies level the playing field, which is increasingly important in a world where ideas trump resources. On the next slide let’s discuss IBM’s PartnerWorld Program IBM Business Partners play a critical role in building a smarter planet. Provide midsize companies with groundbreaking solutions that improve efficiency and accelerate ROI Help smaller companies level the playing field, increasingly important in a world where ideas trump resources. 5 5

PartnerWorld Incentives for Software Business Partners
IBM Software Business Partners have a wide range of profit opportunities including cross sell, influence, resell and bundled solution resell Cross Sell Resell and Influence Solutions Bundled Solutions Solution Accelerator Incentive (SAI) Software Value Plus (SVP) Industry and Capability Authorization Application Specific License (ASL) Global program for HW & SW resellers Earn a Base Reward for selling IBM hardware and software together Earn a Solution Bonus Reward for selling an IBM-defined solution Claim is made through IBM SW VADs Minimum revenue level (hw + sw) for a claim is $20K USD Earnings opportunities from 15% to 30% Global program for SW resellers / influencers: Consistent requirements and benefits in all countries for Product Group authorizations Incentives for resale and influence for all client opportunities Software Value Incentive (SVI): Incentives for Business Partner opportunity identification and progression Earnings opportunities from 5% to 50%+ Recognition for expertise in providing client solutions, based on key IBM Software products Industry: covers key Industries (Finance, Banking, Manufacturing…) Capability: Security, Cloud, Social Business, Smarter Commerce, Business Analytics & other high growth solution areas IBM Business Partner Mark Earnings opportunity from 20% to 30% Resell model for lightly embedded and bundled solution offerings Business Partner owns client relationship, including the license agreement Single point of contact – sales and support Business Partner earns via discount on product sales for both initial sales and annual renewals IBM’s PartnerWorld program is consistently ranked among the best in the industry and has won more than 16 channel and industry awards in 2011 alone - including the CRN Annual Report Card, Tech Innovator, Channel Champions and CRN Five-Star Partner Program awards. Program benefits, incentives and enablement offerings are extensive. IBM offers extensive incentive programs and benefits tailored for software business partners that encourage, recognize and reward partners for building value-add IBM Software sales, marketing and technical skills, solutions and services. Research shows that customers prefer to buy integrated solutions to business needs vs. standalone point products. As a result, our IBM Software Business Partner programs and go to market strategy are focused on helping partners build skills to lead with key technology “capabilities” that form the building blocks of solutions to key business needs - delivered in an “industry” context. You’ll see on the chart that our programs offer clear roadmaps starting with building baseline PRODUCT skills, then moving up to build higher value SOLUTION skills for key INDUSTRIES and CAPABILITIES. All supporting rich incentives and significant earnings opportunities as you can see, our programs make a positive difference for our partner’s bottom line. IBM has over 120,000 Business Partners in our IBM PartnerWorld program, including value-added resellers, ISVs, and systems integrators, and emerging BP types including SaaS and Managed Service Providers. About half (58K) are registered as software partners, and ~16,000 have some level of software skills and revenue activity. Our best partners are our 5,000+ high value, IBM Software Value Plus Authorized Business Partners who have met program criteria and receive incremental benefits, recognition and rewards. IBM’s high value BP channel and program strategy is working. For more information, go to the IBM PartnerWorld web site at Let’s discuss how to make money selling IBM Software on the next slide Source: IBM Software SVP, SVI, Value Advantage Plus (VAP), SAI and ASL Program Operations Guides on IBM PartnerWorld 6 6

How do I Make Money Selling IBM Software?
IBM offers multiple programs to help you increase your Margin Business Partners can earn incentives ranging from 5% - 60% SVI (Software Value Incentive) Rebates paid after the sale has closed VAP (Value Advantage Plus) Business Partners combine services with the solution sale and get an instant discount from your Value Added Distributor (VAD) General Business Instant Rebate Increase profitability with instant incentives paid by your VAD IBM offers multiple programs to help you increase your Margin Let me highlight a few of our most popular incentive programs for software partners that can help partners earn incentives as high as 60%. The Software Value Incentive provides rebates paid after the sale has closed. The Value Advantage Plus program provide partners with a discount from their Value Added Distributor for a solution sale. And the General Business Instant rebate provides instant incentives paid by your VAD. SVI/VAP participating Business Partners are 50% more likely to report high gross profit margins (>20%) on middleware deals than non-participants On the next slide we’ll cover some of the tools and benefits available to partners Facts: SVI/VAP participating Business Partners are 50% more likely to report high gross profit margins (>20%) on middleware deals than non-participants Source: 2009 IBM Software Business Partner Profitability Study 7

Supporting Business Partners with the Right Tools
8 Supporting Business Partners with the Right Tools Business Partner Locator Tool Grow Your Business Tool Profitability Tool Let me highlight some of the tools and benefits that IBM provides to support our business partners Note that all labels on this page are hyperlinked to the actual tool or benefit itself The Grow Your Business Tool: Is an Easy-to-use tool that supports improved Business Partner productivity and profitability. - Helping partners explore new options for growth, resulting in identification of new opportunities with existing customers and new markets - The tool components allow you to: · quickly identify and evaluate cross-software sales scenarios that would build upon current capabilities · easily discover sales and technical source requirements associated with the scenarios · identify links to IBM sales and marketing support materials · and evaluate important ROI information The tool was recently updated with new content Web Content syndication benefit: This no charge benefit provides IBM product content delivered automatically to your Web site to generate leads and accelerate sales by enhancing the power of your company's Web site with key IBM marketing assets, without the expense of a technical resource. It is available at no cost worldwide in 13 local languages and is one of the fastest growing PartnerWorld benefits Also available through this benefit is a Free Hosted Web site featuring IBM content – Easy to setup and customize – Easily used in place of, or to compliment, your Web site What is “Ready to Execute”? IBM worldwide marketing teams have developed a new model of campaign delivery, including strategy, plan, assets and offers Based on proven tactics The campaigns are delivered as a complete, self-service package Local IBM teams execute campaigns to clients and prospects We’re providing to our Business Partners: The same proven campaigns - simple, pre-packaged, with instructions Same materials and offers – customizable Consistent messaging Translated Social Media : enablement is an integral part of our social media strategy, so we have created a library of resources to help business partners understand how to use social media, both to connect with IBM, and as a demand generation tool for their own businesses. - our bps are at all levels of enablement, so there is something for each level: understanding the business value, how to use different social platforms, integrating social media with their other demand gen efforts IBM Global Financing helps Heighten Client Value and provides the Potential to close more deals by providing clients with a range of compelling financing options Business Partners can earn up to 1% in most countries for attaching IGF services to their opportunities* IBM provides Partners: loans, working capital, and cash advances to finance inventory, accounts payable/receivable and other business ventures Offer your clients options to acquire technology-driven solutions that can be leased or financed through IBM Global Financing Nearly $38 billion in assets and operations in more than 50 countries For more information please visit us at : ibm.com/financing/partner or contact IBM Global Financing ( Our next slide covers some of the technical resources available to IBM Business Partners Optional comments: IBM Value Package optional fee based 12 month benefit subscription for $2K tailored to software partners Provides easy and convenient access to IBM software, enables you to gain training and certifications at a lower cost, offers presales and predeployment support when you need it benefits help you cost effectively attain skills required for SVP authorization Web Content Syndication Ready to Execute Campaigns Co-Marketing Financing a Smarter Planet Midmarket Asset Gallery and Assessment Tool Getting Started with Social Media IBM Global Financing 8

Technical Support to help you get to Market Fast!
PartnerWorld Technical Support Resources IBM PartnerWorld Communities PartnerWorld Software Value Plus Business Partner Innovation Centers PartnerWorld Selling Resources developerWorks Resources for Developers Early Access Software Solution Training IBM Innovation Centers IBM SWG Product Guide PartnerWorld Value Package benefits IBM Industry Frameworks IBM Support Assistant IBM Software Acquisitions Solution Assurance Technical and Delivery Assessment IBM Provides technical support to help you get to market fast Again all labels are hyperlinked to the resource itself PartnerWorld Sales Resources – include incentives, promotions, sales tools, competitive selling resources, sales plays/kits, financing, and sales training Early Access Software Solution Training – Early access to software solution training and collateral IBM Innovation Centers – IBM-operated facilities that provide remote and face-to-face technical assistance and skills transfer to you, throughout the application development cycle. Solution Assurance Technical and Delivery Assessment – A Presale or Preinstall "Technical" inspection of a completed "Solution Design" by uninvolved third parties who are experts in the technology components IBM SWG Product Guide – provides a brief description of all IBM Software Group (SWG) products and describes how they relate to each other. developerWorks Resources for Developers – Is an IBM technical resource for developers that offers a range of tools, code, and education to help you take full advantage of the IBM software development platform PartnerWorld Value Package benefits – an optional fee-based set of benefits that will help you attain the skills necessary for IBM Software Value Plus IBM Industry Frameworks – Business Partners are a critical component of the IBM Industry Frameworks strategy. When your solutions are validated on IBM Industry Frameworks, you become strategically aligned with IBM sales teams. IBM Support Assistant – a complimentary software offering which provides you with a workbench to help you with problem determination. IBM Software Acquisitions – complement your existing portfolio with new solutions, expand your reach to new markets, grow your customer install base and drive new revenue opportunities. PartnerWorld Technical Support Resources – Benefits and resources for IBM Business Partners IBM PartnerWorld Communities – provide social networking and collaboration capabilities designed to help you develop innovative solutions, reach new markets and broaden business opportunities PartnerWorld Software Value Plus – IBM offers distribution models for maximizing your profits by reselling IBM Software, based on your clients' needs and your investment in skills. Virtual Innovation Center – Is a single knowledge portal for no charge technical, sales and marketing enablement resources Business Partner Innovation Centers – IBM Business Partner Innovation Centers (BPICs) can be the ideal venue for Business Partners to showcase their industry-leading solutions and new technologies Our next slide discusses how IBM supports your business end to end 9 9

Help Build Smarter Profits IBM Supports You and Your Business End-To-End
“IBM’s Business Partner program is among the top few in the industry, if not the top program.” Darren Bibby, IDC Industry Leading Products, Solutions and Services Exceptional Profit Model for Business Partners "IBM invests $2 billion in business partners annually, $100 million dedicated to marketing efforts for Business Partners.“ We support our partners by providing Leading Technology, New Revenue Streams, Demand Generation, Training and Skill Building, Market Awareness, and Technical support all focused around profitable growth for our Partners. On the next slide let’s discuss, Why team with IBM? Worldclass Enablement and Go-to-Market Support Leading Technology Training & Skill Building New Revenue Streams Market Awareness Demand Generation Technical Support $2B IBM Annual Channel Investment 10 Source: IBM Internal Reports

Let’s Build a Smarter Planet Together
Why IBM? Roadmap for Growth Global IT industry leader serving clients and Business Partners for over 100 years Growth Markets – $234 billion opportunity Business Analytics – $168 billion opportunity Cloud – $196 billion opportunity Smarter Planet – $179 billion opportunity Why IBM? IBM is a global leader in Information Technology (IT) and has served clients and business partners for 100 years. Some may still think of IBM as just a hardware company, but that is no longer true. In addition to IBM’s industry leading hardware portfolio, IBM is now a company focused on delivering high-value integrated software and services-led integrated solutions, that provide clients and business partners with the expertise and offerings needed for a changing world. A fundamentally different company than just a decade ago. IBM’s strategy and 2015 roadmap is focused on high growth markets and integrated software, hardware and services solutions of the most importance to our clients. IBM investments are: helping to build out our global business in emerging markets like Brazil, Russia, India and China… helping clients manage the explosion of data and information in an interconnected world with Business Analytics and Big Data solutions… enabling us to take a leadership position in Cloud Computing which is transforming how business value is delivered… establishing IBM’s leadership agenda focused on Building a Smarter Planet industry by industry - with real IBM solutions that are making a difference in the world. A few examples include, Smarter Cities, Smarter Commerce, Social Business, Security, etc. The strategy is working -- IBM was singled out as the “most admired IT company” in a recent Fortune Magazine ranking, and 2011 was IBM’s 9th consecutive year of double-digit Earnings Per Share (EPS) growth. And IBM Software is at the heart of the story. IBM Software is on-track to contribute half of IBM’s segment profits by 2015. IBM cannot capture this opportunity alone… a skilled and robust Business Partner ecosystem is essential. Over 125,000 Business Partners are part of the IBM ecosystem and are reaping the rewards. As Steve Mills, our IBM Senior Vice President of Systems and Software likes to say, “the bigger our ecosystem, the bigger our business”. After 100 years, IBM is: a company that does business in more than 170 countries with 410,000+ employees global, approaching 30% of geographic revenue from growth markets by and serves customers of all sizes with 20% of 2011 revenue from General Business focused on mid-sized and large businesses, rated as the second most valuable brand in the world by Interbrand, and the new patents leader for 19 consecutive years with 6,180 in 2011 alone (Oracle/Sun didn’t make the top 50 with only 918); more than 70% of the patents IBM was issued in 2011 were for software and services. IBM is a leader in key business segments: the largest enterprise software company and #1 in middleware software, the largest consulting and IT services company, with 175,000 services professionals, and the largest technology financier supporting more than 125,000 clients. IBM has continued to invest – in research and development that gives us the foresight to build for the future - $70B since 2000 in strategic acquisitions of software and services companies to bring new capabilities to clients, including the acquisition of 130 companies since 2000 in areas including analytics, cloud, security and Smarter Commerce, plus another $20B in expected spending over the 2015 roadmap period to support growth initiatives, and in improved productivity by changing how we do business through more efficient processes and global integration, that have yielded $6B in savings since 2005 And IBM Software is at the heart of the business IBM offers a broad range of capabilities to clients and business partners globally and locally. Join us and help build a Smarter Planet. Now let’s talk about IBM’s investment in Software on the next slide Source: IBM’s 2011 Annual Report, 2011 and 2012 Investors Day Briefings Let’s Build a Smarter Planet Together IBM Software is on-track to contribute as much as half of IBM’s profits by Source: IBM Market Insights , 2015 Total IT Opportunity, 1H12 This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 11 11 11

IBM is Investing in Software and Growing…
Business Know-how and Technology Innovation Accelerate the Journey 5,500+ High Value Software Business Partners 75,000 Business Partner Technical Certifications Let’s talk more about the specific role of software at IBM, and how it has evolved and grown dramatically over the past decade. IBM is the largest enterprise software company and holds the #1 market share position in middleware software. Between 2000 and 2010, our software revenue nearly doubled, and our profit has more than tripled. In 2011 alone, IBM Software grew to a nearly $25B business, accounting for roughly 23% of IBM’s total revenue. IBM’s Software leads in 60 Gartner Magic Quadrants as reported in Morgan Stanley’s March 9, 2012 report “Gartner’s ‘Magic Quadrants’ Help Identify Gaps in IBM’s Software Strength. And IBM continues to invest heavily in software… $29B in R&D, and $20B in 70+ acquisitions since 2000, with planned for acquisitions through 2015; 25 announced software acquisitions since 2010 alone; 11,000+ field technical professionals, 43 labs with over 25,000 developers, and 40+ innovation centers in 34 countries globally, supporting customers and partners What’s most important is that IBM is not the only one investing in IBM software technologies and solutions… Of IBM’s 125,000+ global PartnerWorld Business Partner community, 70,000+ are registered as software-focused VAR/Solution Providers, Resellers, ISVs, SIs and MSPs (Managed Services Providers) ~18,000 are actively building skills and driving revenue with the IBM Software portfolio, and collectively have ~75,000 IBM Software technical certifications globally Over 5,500 IBM Software Business Partners are considered our High Value Software Business Partners, holding nearly 18,000 IBM Software Value Plus Product and Solution resale Authorizations globally. Business Partners drive over 20%, and influence over 60%, of IBM’s software business and have seen 8 consecutive quarters of growth as of early In IBM’s General Business segment globally, BPs drive over 50% of our software revenue, and upwards of 75% in Midmarket (<1000 employees) where Business Partners are our lead route to market. IBM is clearly the leading technology vendor of choice when partnering to WIN! Now let’s talk more about our industry leading software product portfolio… Sources: IBM’s 2011 Annual Report and Investor’s Day Briefings May 2011 and May 2012 (materials available on IBM.com) 25,000 Developers in 43 labs 11,000 Technical Professionals 25 Acquisitions Announced Since 2010 #1 in middleware market share Largest enterprise software company Software revenue has nearly doubled and profit more than tripled since 2000 Source: IBM Annual Reports, Investor Day Briefings, and IBM PartnerWorld 12 12 12

1313 A transformed software portfolio IBM meets clients’ business and IT needs by industry and role Industries Banking Energy Government Healthcare Education Transportation Retail Communi-cations Functions/roles Just as your organization has had to evolve with the rapidly changing marketplace, IBM has been adding to our deep and broad capabilities in order to help our clients and Business Partners thrive. IBM has one of the industry’s leading portfolios of software that is designed to apply technology in correct industry context to address both business and IT needs. In just the past three years, IBM has made 27 acquisitions—and over 80 in the past decade—in technology areas that provide our clients with the tools they need to improve revenue and market share. Whether you’re talking to a CMO, a CFO, head of human resources or the supply chain … or you’re talking to a CEO or a CIO … IBM has built a rich portfolio of software … and has people and Business Partners with deep domain and industry expertise … to analyze client needs, implement solutions and help deliver tangible outcomes for client organizations. IBM’s extensive portfolio, and award winning partner support programs, give Business Partners the flexibility to go to market by industry, by target decision maker roles, or by client business needs. Now let’s talk about the Software market opportunity as aligned to our clients business needs. Marketing CMO Finance CFO Human resources CHRO Supply chain CSCO Executive CEO IT CIO Business and IT needs Turn information into insights Deepen engagement with customers, partners and employees Enable the agile business Deliver enterprise mobility Accelerate product and service innovation Optimize IT and business infrastructure Manage risk, security and compliance

IBM Software market opportunity by business need
1414 IBM Software market opportunity by business need 52% of the opportunity comes from two needs, while Enterprise Mobility spurs the highest growth 2012 Total Market Opportunity $147B ($5B not captured with a capability) Relative Growth by Business Need Deliver Enterprise Mobility Deepen Engagement with Customers, Partners, and Employees Manage Risk, Security and Compliance Turn Information Into Insights Optimize IT and Business Infrastructure Enable the Agile Business Accelerate Product & Service Innovation IBM has built what we believe is the industry’s broadest portfolio, with the richest set of capabilities, because not every client is the same. They don’t have the same business strategy. The same resources. Or the same IT environment. What they do share is seven universal needs that are relevant when you’re thinking about what the business needs to accomplish … and what IT needs to do to help. Seven needs: Turn information into insights Enabling the transformation of data into information, and information into actionable insight Deepen engagement with customers, citizens, partners and employees Through social business tools, including rich marketing and commerce capabilities Enable the agile business Create organizational advantage through more agile processes and applications and by optimizing infrastructure Deliver enterprise mobility By enabling mobile access to those processes, in a security-rich manner Accelerate product and service innovation Enabling your organization to speed up the delivery of new products and services, thrill customers and constituents, and seize competitive advantage Optimize IT and business infrastructures Better utilize all organizational resources, from the data center to your buildings and facilities to your vehicle fleet, to improve response and control costs Manage risk, security and compliance Control access to vital information and systems, safeguard intellectual property and physical assets, and lower the cost of compliance through innovative analytics that identify and even predict risks and threats The chart shows the WW IBM Software marketing opportunity by client business need, to help our Business Partners prioritize investments: Over half of the IBM Software opportunity comes from two needs -- Turning Information into Insights (which includes our Information Management, Business Analytics and Enterprise Content Management offerings), and Deepen Engagement with Customers, Partners and Employees, (which includes our Collaboration Solutions, Enterprise Marketing Management, Commerce and Smarter Cities offerings). From a growth perspective, Enterprise Mobility spurs the highest growth (which includes our new Mobile Foundation and IBM Endpoint Manager offerings, supported by recent acquisition including Worklight, Cast Iron, and BigFix.) IBM and our Business Partners are able to innovatively assemble our capabilities in different ways to meet these seven client needs… so they can deploy only what they need and integrate our capabilities with solutions they may already have working for them. Now let’s talk about the breadth and depth of IBM’s Software opportunity for our business partners Source: IBM Market Insights, 1H12 IBM Software Capabilities , FX Plan Rate This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 14 14

IBM’s software portfolio is unmatched in the breadth and depth of it’s capabilities to solve business needs IBM Software serves 47 technology segments with products IBM’s software portfolio is unmatched in the breadth and depth of it's capabilities to solve real client business needs, and the opportunity is significant for new and existing IBM Business Partners. The IBM Software market includes 47 technology segments… served by IBM Software products! (Source: IBM Market Insights) To help IBM and Business Partner sales and marketing teams navigate our extensive portfolio and communicate our shared value proposition to customers markets most effectively, we’ve aggregated and mapped our product offerings into a core set of ‘capabilities’ that form the building blocks of solutions that address top client business needs. New IBM Business Partners can start with IBM anywhere across the software portfolio by building skills and selling a few product lines aligned to your business strategy and target markets. Then, work with IBM Software teams and partner programs to easily build a roadmap to grow your business with us, by focusing on select customer needs and top market opportunities. For example, you could start with Data Management and our IBM DB2 offerings, then build skills in Business Analytics with our IBM Cognos product line in order to deliver broader analytics solutions. We provide extensive enablement materials and roadmaps to help our partners get started anywhere you’d like across the portfolio. Let’s talk more about the opportunity for each capability on the next slide. IBM Software products roll up to a core set of 28 capabilities that form the building blocks of solutions that address business needs 15 Source: IBM Market Insights 15

Significant potential growth opportunities for IBM Business Partners aligned to client business needs IBM Business Partners can use this chart as a reference to understand the both the size and growth rate of the WW market opportunity for each of the 28 IBM Software capabilities and solution areas, grouped by the seven key client business needs. The bars align to the left axis showing WW market size, and the line aligns to the right axis showing the WW compounded annual growth rate (CAGR) from 2012 thru 2015. We share market insights information like this regularly with IBM Business Partners through our IBM PartnerWorld program to help partners understand, evaluate and prioritize existing and new business opportunities and investments for growth. Now let’s talk about how IBM Partners are able to deliver broader, higher value, Smarter Planet integrated, client solutions Source: IBM Market Insights, 1H12 Capabilities , FX Plan Rate This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 16 16

Common answers for diverse needs
1717 Common answers for diverse needs Seize new marketplace opportunities on a smarter planet Smarter Analytics Cloud and IT Optimization Social Business Security The clients and organizations we support with have very different marketplace situations and different requirements. Many have figured out how to capitalize on the opportunities that are being created as our planet gets smarter… and they are using IBM software to do it. Smarter analytics … cloud…. social business … security…. smarter cities … product and service innovation… business agility and mobility… smarter commerce…. these are just a few examples of the solutions IBM software supports. IBM Business Partners with IBM Software skills are better able to deliver these broader, higher value, Smarter Planet integrated, client solutions… industry by industry… across key client business needs. Together, IBM and our highly skilled IBM Business Partners, deliver the capabilities and industry solutions to address all facets of our clients’ needs and help businesses to become smarter. ,And, our IBM Software Business Partner programs, benefits and rewards are designed to help you build the skills you need to capture these opportunities. IBM’s leadership agenda focused on building a Smarter Planet is working, and the competition can’t touch us. (just look at IBM’s stock price… Wall Street agrees) For more information on IBM Software Business Partner Programs or to join IBM PartnerWorld, go to the IBM PartnerWorld software home page at Our next slide describes the IBM Business Partner Strategy Smarter Cities Product and Service Innovation Business Agility and Mobility Smarter Commerce IBM software helps you do it.

2012 IBM Software Business Partner Strategy
Reach Broader Markets IBM Software Capabilities Grow High Value Revenue Let me finish with our 2012 IBM Software Business Partner Strategy to show you how this all comes together for IBM Software Business Partners. IBM Software capabilities are the underpinning of our IBM and Business Partner strategy. Software capabilities are how IBM takes its software portfolio to market Capabilities allow the buying discussion to move away from pure technology into a business discussion Capabilities simplify the decision making process for software buyers Our business partner strategic direction for 2012 is designed to help you reach broader markets, deliver true innovation and reap the reward of your efforts to provide client value, and embrace and exploit new business models. You can go places that we can not go by ourselves, such as new and emerging markets – we recognize and reward you for this effort (BP-led go to market coverage models and incentives, ) You have the skills to deliver innovative solutions that our clients need – we help promote your offerings and pass you leads for new client opportunities in your areas of expertise (e.g. Software Value Plus Authorizations, increased lead passing and benefits for our top skilled partners) You are flexible for exploiting different/new business models to compete and grow - we provide extensive enablement to help (e.g. cloud, SaaS, integrated HW/SW/Svc solutions and appliances, BP-Led go to market models) Our next slide describes how to get started Embrace New Business Models 18 18

For more information go to ibm.com/partnerworld/software
Getting Started with IBM Five Steps to becoming an IBM Software Reselling Business Partner Join PartnerWorld Build your PartnerPlan for success Sign up with a value added distributor (VAD) Get your technical & sales training Apply for the SVP or SVI and VAP incentives For more information go to ibm.com/partnerworld/software

Software Value Propositions
IBM Software brands and capabilities provide market opportunity for Business Partners who build solutions using our product portfolio to help them sell, build references and drive continued success… Market Opportunity Solution and Product Portfolio Why Sell/Value Propositions Partner References Partner Profiles Partner Resources This begins our IBM Software value propositions section of this presentation. IBM Software brands and capabilities provide market opportunity for Business Partners who build solutions using our product portfolio to help them sell, build references and drive continued success. You may jump to any IBM Brand by clicking on the brand logo and see the Market Opportunity, Solution Portfolio, Value Propositions on why sell that brands offerings and Partner references, profiles and brand specific resources. Thank you for listening to the IBM Software Business Partner Guide presentation, we hope you’ll join IBM PartnerWorld and begin teaming with IBM 20

Business Analytics Software Business Partner Guide Value Propositions
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Business Analytics and Optimization (BAO)
Market opportunity Business Analytics and Optimization (BAO) $166B Opportunity in 2011 Business analytics is the key to enabling our clients to turn oceans of data into predictive models and actionable decisions. Why Analytics is Important to our clients… There is an incredible market opportunity for IBM in the area of business analytics and optimization. Our cross-IBM strategy, including both organic and inorganic growth initiatives, is enabling us to deliver upon the 2015 roadmap. We’ve already begun executing upon our strategy and we are yielding results from those efforts already. In 2009, BAO revenue was $9.4B, exceeding the estimate communicated in September 2009 BAO is on track to deliver the 2015 objective of $16B in revenue, with growth across groups, and with a major percentage of the profit coming from SWG This is an exciting space, and IBM is well positioned to capitalize on the growth opportunities. 33% more Revenue Growth >12x more Profit Growth 32% more Return on Invested Capital IBM BAO Revenue (including SW, HW and services) 10% CAGR 2009 2015 PTI: 14% CAGR 12.5% 11.9% 9.4% 9.0% 7.3% 0.6% Finance Organizations with Business Insight All Other Enterprises Source: IBM Investor Relations, May 2010; $16B refers to cross-IBM revenue including Software, Services and Systems. Amounts reflect IBM internal estimates, are provided for illustrative purposes only and are not meant to represent or guarantee opportunity in any business segment. 22

Organizations Need Deeper Insight from Their Information
Market opportunity What is Driving Business Analytics & Optimization? Organizations Need Deeper Insight from Their Information Business leaders frequently make decisions based on information they don’t trust, or don’t have 1 in 3 Lack Trust Business leaders say they don’t have access to the information they need to do their jobs 1 in 2 Lack Access Better Outcomes have made Business Analytics a prime focus area for all organizations. The recent IBM Global CIO Study interviewed 2500 CIOs worldwide and “Business Analytics” was the number one area of concern for these executives. These executives along with their peers at the senior executive level (CFO, CTO, COO, CEO) recognize that there is a huge opportunity to improve efficiencies in leveraging the data that is captured and turned into information. Why business analytics? Why now? • 83% CIOs say it is a top priority (IBM CIO Study) • 49% more revenue for those that invest in insight & efficiency (IBM CFO Study) • 53% of top performers use insight to guide future strategies (IBM IBV & MIT Study ) 83% Plan to Use of CIOs cited “business intelligence and analytics” as part of their visionary plans to enhance competitiveness Top performers are 5.4X more likely to use an analytic approach over intuition 5.4x Widening Gap “Drowning in Data…” “Starving for Information…” Sources: IBM Institute for Business Value, 2009, IBM CIO Study 2010, TDWI: Next Generation Data Warehouse Platforms Q4 2009, Analytics: The New Path to Value, 2010 23 23

Business Analytics Better Outcomes Smarter Decisions
2424 2424 Portfolio overview Better Outcomes Smarter Decisions Clients can Drive Better Business Outcomes with IBM Business Analytics All organization are striving to achieve better outcomes. Businesses are looking to drive revenue growth and ensure expenses stay in line to ensure strong margins. Public sector organizations are also trying control expenses while offering important services that benefit their constituencies. Informed, smarter decisions is a key foundation to better outcomes. Organizations need to ensure consistency across the broad spectrum of decision making from operational through to strategic decisions. Everyone in the organizations needs to be able to answer: how are we doing, why and what should we be doing? The key to decision making is driving new actionable insights. These insights are sweet spots of information that enable smarter decision making at all levels of the organization. Actionable insights are delivered through the power of Business Analytics. The foundation to uncovering insights which improve decision making and deliver better outcomes is trust in the data. The organization must have confidence that the information is accurate and it must be organized in a way that is easy to uncover these insights. IBM Business Analytics enables organizations to anticipate and shape better business outcomes • Spot & analyze trends, patterns, anomalies • Plan, budget and forecast resources • Compare what-if scenarios & predict threats and opportunities Analytics-driven organizations can: Business Analytics Actionable Insights Relevant Information 24

Full breadth of Business Intelligence (BI) for every decision-maker
Portfolio overview Full breadth of Business Intelligence (BI) for every decision-maker Revolutionary way to work with BI Free to answer critical business questions Full breadth of predictive analytics Putting prediction in hands of the business Driving better business outcomes Simplify, structure and automate dynamic and sustainable Financial Performance & Strategy Management Monitor and analyze business performance against targets Plan, forecast and control enterprise resources aligned with corporate objectives Enterprise requirements Unifies enterprise-wide risk and compliance initiatives into a single management system Provides synergy with Information & IT Governance, Risk Management and Security Ready-made packaged reporting and analyses based on the best practices Encompasses comprehensive portfolio Adaptable & extensible Source data from multiple transaction systems Our rich history of innovation has enabled IBM to deliver the broadest Business Analytics portfolio to help you drive better business outcomes. The IBM Business Analytics portfolio has a range of solutions built to uncover insights for specific industries such financial services, public sector, distribution, industrial and communications. As well as deliver insights for cross industry solutions such financial performance, customer relationship, human capital, advanced case management, supply chain and asset optimization. These solutions are built based on our experience working with clients in each of these areas. These solutions leverage a range of rich Business Analytics capabilities from 5 core areas. These categories include … -Business Intelligence -Predictive & Advanced Analytics -Financial Performance & Strategy Management -Governance, Risk and Compliance -Analytic Applications. And these solutions and capabilities have been designed to leverage a foundation of trusted information built upon rich data management capabilities and optimized systems from IBM. Business Intelligence Full breadth of BI for every decision-maker Query, reporting, analysis, scorecards and dashboards Delivered where, when and how needed Revolutionary way to work with BI Unified workspace with built-in collaboration View of all time horizons: past, present & future Easy progression from viewing to exploration to more advanced analysis Free to answer critical business questions Answer “how am I doing”, “why”, and “what should I be doing?” Ensure organization-wide insight and alignment Predictive & Advanced Analytics Full breadth of predictive analytics Data collection, statistics, data mining, predictive modeling, deployment services… Putting prediction in hands of the business Decision Management Driving better business outcomes Attract and retain more profitable customers Detect and prevent fraud Improve resource allocation Governance, Risk and Compliance Enterprise requirements CIO has to manage multiple datamarts and point solutions for risk and compliance data CRO cannot get aggregate risk exposure position CCO cannot ensure regulatory compliance, adapt to change or manage regulator interaction Unifies enterprise-wide risk and compliance initiatives into a single management system provide visibility into risk exposure and to facilitate compliance management Provides synergy with Information and IT Governance, Risk Management, and Security Analytic Applications Ready-made packaged reporting and analyses based on the best practices Encompasses a comprehensive portfolio Workforce, customer, finance & supply chain Adaptable & extensible Adaptive Application Framework Source data from multiple transaction systems 25

IBM BA Business Partners – Opportunity of a Lifetime
Value Propositions IBM BA Business Partners – Opportunity of a Lifetime High Growth Market Extraordinary BAO Synergies Highest IT, LOB Priority BP-Specific Products & Plays In IBM’s Top 4 Priorities Focus on Value, Solutions Best Products and Roadmap Best Team in the Industry Expanding Portfolio Best Business Partner Program This slide speaks for itself but the bullets that should be highlighted are: Business Analytics is one of IBM’s stated 4 strategic initiatives – the only strategic initiative that has a direct link to software products We have great synergy with the other players in the Business Analytics & Optimization space, which means more opportunity With Business Analytics, you can have a true focus on delivering business value to your clients and delivering solutions that drive better business outcomes 26

Business Partner Reference
Client: Cincinnati Zoo and Botanical Garden Challenge: Real-time analysis of attendance, sales and customer behavior Solution: IBM Cognos BI v10, IBM Cognos Mobile Outcome/Results: Helps the Zoo generate deep insight into guest visitation and spending behavior, unlocking profound new marketing insight and business optimization strategies. Generated over $500,000 in new revenues and expense reduction within year 1. Increases overall attendance, prompting at least 50,000 new “visits” in 2011 through enhanced targeted marketing achieved through insight gained from IBM Cognos. Contributed to a 30.7% growth in food sales and 5.9% in retail sales over prior year. 27 27 27 27

Business Partner Profile – Business Analytics
Profile of Traditional Reseller Value-driven, focused on BA segment only Traditional revenue mainly in Services Retooling their businesses to add the necessary infrastructure to sell software Sales function driven by senior consultants that are highly dependent on BA brand reps Works roughly 1-3 deals per quarter Profile of High Volume Reseller Velocity-driven, relationship-oriented Revenue split between resale, SVI and Services with more holistic view of their customer base Small sales organization - will include reps who get paid on software only but still dependent upon BA brand reps Active marketing and business development functions Works roughly 5-15 deals per quarter Point out the importance of establishing good relationships with the Business Analytics sales reps in either case as well as the importance to have people employed in the actual sales function in order to really focus on the ability to resell software. 28

5 Quick Steps to Get Started
Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Business Analytics PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Complete your Business Analytics Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell Business Analytics through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 3 4 5 29

IBM Collaboration Solutions/Lotus Business Partner Guide Value Propositions
Let us review the Business Partner value proposition slides for the IBM Collaboration Solutions: This presentation outlines: The market opportunity of the new Social Business market segment, IBM’s journey to becoming a social business The Social Business capabilities of the IBM Collaboration Solutions portfolio The value proposition of teaming with IBM An example of a social business customer reference from one of our Business Partners Typical Business Partner Profiles Key resources for our IBM Collaboration Solutions Business Partners on PartnerWorld 30 30 30

Market Opportunity The Social Business market opportunity is growing to a $99B business in 2015 $99B Opportunity ($B) What is the Social Business market opportunity? Research from IBM Market Insights estimates that the market opportunity for Social Business is growing to a US$99 Billion business in 2015. The broader Social Business opportunity includes three elements which are Software, Hardware and Services: Software (in blue) – is segmented into: 1. Platform 2. Solutions 3. Infrastructure Hardware is in purple Services is in yellow and is segmented into IT Services and Consulting. The market opportunity for Social Business clearly exists, and its importance is validated by the top tier of decision makers in organizations—the C-suite as per this next slide 2012 2015 Source:: IBM Analysis. Note: Solutions are the highest growth areas driven by analytic capabilities Amounts reflect IBM internal estimates, are provided for illustrative purposes only and are not meant to represent or guarantee opportunity in any business segment. 31

What does a Social Business look like to your Business Leaders?
Market opportunity What does a Social Business look like to your Business Leaders? Socially enabling business processes to improve and accelerate results across business functions Workforce Optimization Improve the effectiveness of people by enabling the right talent and content to come together at the right times What does a Social Business look like to your Business Leaders? Becoming a Social Business has been a top agenda item for CIOs. In fact, nearly x3 times as many CIOs in top-performing organizations view social as a top priority. They want to leverage social networking tools and culture to improve their business processes and outcomes to create business value for their customers, partners and employees. IBM has mapped out 3 important areas where clients can start rethinking their business processes across horizontal roles. They are Workforce Optimization, Customer Care and Insight, and Product and Services innovation resulting in significant impact to the business. IBM along with its IBM Business Partners can help clients through that social business transformation. Product and Service Innovation Bring successful new products to market more quickly by understanding and aligning to customer needs Customer Care and Insight Build customer advocacy by understanding, reaching, attracting, and retaining more customers through online channels 32 32 32

IBM’s Journey to becoming a Social Business
Market Opportunity IBM’s Journey to becoming a Social Business 400,000+ employees in more than 200 countries Just over 40% of employees have less than 5 years of service Social Business 2008 and beyond What is IBM’s journey to becoming a Social Business? IBM is no stranger to transformation: IBM transitioned from the traditional office to the mobile office, or other non-traditional office setting. Communication and collaboration became very important, and we were very successful in leveraging expertise and knowledge across the company and with our business partners worldwide. We began to use tools enabling a different type of dialog on not just around doing business, but on how we could do business better. For instance, someone in Boston would post an idea on how to do something better and it would turn into a global dialog, then these same teams would set up and begin to execute.. That was the introduction of social within IBM. Since then, we continue to think of new ways and channels for: Connecting people to expertise. Learning and removing any unnecessary boundaries between experts inside the company and experts in the marketplace. Leveraging our social networks to speed up business, gaining real-time insight to make quicker and better decisions and getting information and services to customers and partners in new ways - faster. Social Networking 2004 Nearly 1/3rd of full-time employees work in a non-traditional office setting Collaboration 2000 Mobile Office 1990s Traditional Office 1980s Source: HR Information Warehouse, December 2011 Report (only for the employee demographic information on the slide) 33 33 33 33

IBM Social Business Outcomes
Market Opportunity IBM Social Business Outcomes Human Resources IBM Human Resources utilizes social media for recruiting, employee education, sales training and leadership development. New hires are made part of a social group for 6-12 months so they can get up to speed more quickly network with other new hires and veteran IBM employees reducing on boarding time. Global Collaboration and Development More than 130 communities of IBM professionals around the globe are collaborating virtually. This has reduced the time it would have taken to complete projects by 30 percent, increased re-use of software assets by 50 percent, and cut component costs by 33 percent. Social Selling To gain insight, IBM’s social sellers use social media monitoring applications to feed information about clients, prospects and competitors directly to their desktops. Social intelligence provides an efficient way of identifying what matters when sales connections are made. What are the IBM Social Business Outcomes? IBM serves as an example of a company that embraced social business early and IBM’s social business transformation has occurred over many years, and it continues today. It is a journey that will constantly evolve, especially as new changes in workforce dynamics, competition, or technologies occur.. One of the biggest lessons learned was that social business transformation involved more changes to culture than technology. Here are some examples of IBM Social Business outcomes in the areas of: Human Resources Global Collaboration and Development Social Selling To learn more about IBM’s Own Social Business story, please review the IDC White Paper on our Social Business Web page. 34

Forrester Research, Inc.
Market Opportunity IBM Leadership in Social Business “IBM Brings Its Clout To Social Software” - Forbes, June 28, 2011 Jun 28, 2011 “Social Business: The Fifth Era of Business Transformation from IBM” - CMS Wire, Sep 7, 2011 “Move Over Facebook, IBM Goes Social for Business” - eWeek.com, Feb 2, 2011 “IBM introduces real time social networking tool for enterprises” – Computer Business Review, Jun 22, 2011 IDC Ranked IBM first in Worldwide Social Platform for 2010 and 2011 Vendor Shares1 Forrester Research, Inc. IBM is a leader in The Forrester Wave™ on Enterprise Social Platforms, and The Forrester Wave™ Mobile Collaboration, Q Why choose IBM for social business solutions? IBM’s leading position, as identified by industry analysts, is a result of its broad capabilities. While many competitors in the emerging social business market are fragmented from a delivery model perspective—software, services, cloud — IBM offers a comprehensive package of solutions and capabilities to address a business’s social needs. Unlike other technology providers, our solutions for social businesses include not only collaboration software, but also portal, content and business intelligence software. Gartner IBM is in the leader quadrant in the Gartner Magic Quadrant for Social Software in the Workplace, August 20113 1Source: IDC: Worldwide Social Platform 2010 Vendor Shares, Doc# #223817, June 2010 and Worldwide Social Platform 2011 Vendor Shares, Doc # #228808, June 2011 2Source: The Forrester Wave™: Enterprise Social Platforms, Q and The Forrester Wave™: Mobile Collaboration, Q3 2011 3Source: Gartner Magic Quadrant for Social Software in the Workplace, August 2011 35

Product/Solution Portfolio Overview – ICS/Lotus
Steve Mills 05/13/09 Portfolio overview Product/Solution Portfolio Overview – ICS/Lotus Web Experience Customer Web experience Employee Web experience Electronic Forms Social Collaboration Social business applications Real-time collaboration Mobile collaboration Office productivity suites and Web editors Let us look at the IBM Collaboration Solutions Portfolio? IBM is helping organizations of all sizes tackle their most important business needs, one of them being Connect and Collaborate. A more social business recognizes that people are the core of your business processes, and that, at heart, people and businesses are social. People want to naturally collaborate across organizational, geographic and other boundaries with people they trust in order to be successful. IBM brings the right capabilities to bear to become a more social business: Integrated social collaboration solutions – integrated in and calendaring, delivered on premises or in the cloud, unified within your everyday work environment and applications Social Business collaboration application development, built on open architecture - on premises or in the cloud, so you can integrate the right capabilities into your existing – and new – business applications. Web experience, to create personalized experiences that target the right user with the right content Unified communications, to create a unified user experience regardless of which devices or applications you want to use Unified Communications Unified communications Social Business Application Development Collaboration application development platforms Mashups 36 36 MILLS INVESTOR DAY v1.ppt 36

Social Business reaches out beyond ICS/Lotus
Steve Mills 05/13/09 Portfolio overview Social Business reaches out beyond ICS/Lotus Enterprise Content Management Social Content Management Content Analytics Tivoli Security Enterprise Information Gateway Let us look at how Social Business reaches out beyond the IBM Collaboration Solutions brand? As we grow the scope of the Social Business market, we are integrating with other key elements of the IBM Software Group portfolio. This means that IBM’s core capabilities that support Social Business include not only Social Collaboration, but also Social Content, Social Analytics, Social Portal and more. The depth and breadth of IBM solutions enable you, our IBM Business Partners to craft just the right solution to meet the needs of our respective customers. We are also focusing on the Line-Of-Business Executives and the business value we can provide. Social Business reaches out beyond the ICS / Lotus brand such as to: Tivoli – with its security, Enterprise Information and Gateway capabilities Smarter Commerce via the customer awareness and analytics and Social Media Marketing capabilities Enterprise Content Management with Social Content Management and Content Analytics Business Analytics with the Business Intelligence and predictive analysis . Smarter Commerce Customer Awareness & Analytics Social Media Marketing Business Analytics Business Intelligence Predictive Analytics (SPSS) 37 37 MILLS INVESTOR DAY v1.ppt 37

Why Sell/Value Propositions – ICS/Lotus
Steve Mills 05/13/09 Value Propositions Why Sell/Value Propositions – ICS/Lotus IBM is the leader in Social Software for business Industry-leading product margins! IBM offers up to 40% Margins across Identify, Sell & Fulfill cycles Up to 20% additional margin for competitive displacements Incremental margin for Capability Authorizations (Cloud & Social Business) Large services potential (~2X product) Opportunity to increase strategic influence as social gets infused into more business processes IBM sales & marketing resources aligned to help you sell and market Rich enablement options to help you rapidly build skills PLUS more ....as you gain skills and success Social Business certification, executive sponsorship, lab advocate, etc. What is the value proposition of the IBM Collaboration Solutions Brand? With IBM’s established leadership in the social business marketplace, IBM Business Partners have a tremendous opportunity to grow their business by attracting new clients and /or increasing the value of existing ones, ultimately improving profitability. Whether you are a reseller, consultant, independent software vendor (ISV) or any blend of the three, our extensive Business Partner program is designed to help you increase visibility to drive demand for your IBM solutions. IBM is committed to your success as IBM Business Partners: . That’s why we invest significantly in our Business Partners and we provide you with Marketing Guidance such as: Advice on how to have successful client conversations about social business. Guidance to leverage IBM’s expertise and brand value in this new category of social business. Visibility of your company and successes through major brand events (such as Lotusphere, Social Business Roadshows) and IBM Innovation Centers. 38 38 MILLS INVESTOR DAY v1.ppt 38

Business Partner Reference – ICS/Lotus
Steve Mills 05/13/09 Reference Business Partner Reference – ICS/Lotus Customer: Manufacturer with operations in many countries and consumers across the globe Solution Lotus Connections 3.0 integrated with the existing business SAP processes and DB2 tools Custom widgets Benefits to the customer Drive innovation Connect people across 17 countries Simplify processes with templates Value provided by Sogeti TeamPark methodology Lotus Connections assets Service center specialized in Lotus Software Revenue for Sogeti = ~1 M$ Here is an example of a Social Business customer reference from one of our Business Partners. The client is a manufacturer with operations in many countries and consumers across the globe. Please note the benefits to the customer of becoming a Social Business and the value Sogeti brought to the table. To learn more about this customer reference, please review the video SOGETI becomes more social with IBM software on UTube at 39 39 MILLS INVESTOR DAY v1.ppt 39

Business Partner Profile – ICS/Lotus
Business Partner Types Software-related IBM Business Partners Traditional Reseller, Consultants and System Integrators (SIs) and Independent Software Vendors (ISVs) and Developers ECM, Cognos, Coremetrics & WebSphere Business Partners to expand scope with IBM social capabilities NEW Digital / Interactive Agencies Note: Partner business models, especially outside the US, are blended. They may behave differently in individual transactions, to accommodate their client and own business models/needs. What are the typical Business Partner profiles? We target 3 types of Business Partners: Resellers, Consultants and System Integrators (SI), Independent Software Vendors (ISVs) and developers. There are benefits for every type of IBM Business Partners. Benefits for resellers You can sell clients IBM software for social business as traditional software licenses or software as a service (SaaS) and make margin from the software sale. Many resellers also offer software-related services. Benefits for consultants Social Business projects can require significant strategy and integration services, so you, our consultants have the opportunity to earn substantial revenue. Furthermore, there is the potential for you to develop repeatable methodologies and processes around Social Business that can yield profitable long-term revenue streams. Benefits for ISVs and developers IBM is moving toward a common set of open APIs to simplify ISV coding and enable rapid deployment across multiple products for Social Business. So you, our ISVs can develop and sell original software that complements IBM social business software or extends the software through the use of APIs. Please feel to review the Ideal Partner profile as guidance. Ideal Partner Profile Mature Business Model (Sales, Mktg) Generate demand, progress and close deals Track record of client references Drives business independent of IBM Well thought out annual demand generation plan Aligned well with IBM Sub-contracting relationship with ISSL Work collaboratively with IBM Field Sales NEW – Digital / Interactive agencies Skills / Industry Expertise Analytics / Marketing automation Portal, and Smarter Commerce Web design, Web platform and apps. Mobile, Content Management – Rich media and digital asset mgmt Retail, Healthcare, Manufacturing Finance and Insurance 40 40 40

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the ICS/Lotus PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Complete your ICS/Lotus Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell ICS/Lotus through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 3 Here are 5 quick steps to get started: To become an IBM Business Partner, you only have to join PartnerWorld. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support. There are many resources available for you to build your skills, access solutions and resources, so you can win in the Social Business marketplace. Complete your ICS specific Business Partner profile: An up-to-date profile is key to maintaining your access to PartnerWorld resources . Plan to maximize your profitability & your team’s education path. This means, please take the time to review the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM Collaboration Solutions through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing This concludes the IBM Collaboration Solutions module. Please take advantage of the Social Business market opportunity to grow your business. 4 5 41

Steve Mills Industry Solutions Software Enterprise Content Management Business Partner Guide Value Propositions 42 42 42

What Is Enterprise Content Management?
Market Opportunity What Is Enterprise Content Management? “Enterprise Content Management (ECM) is the technologies used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM tools and strategies allow the management of an organization's unstructured information, wherever that information exists.” According to AIIM, “Enterprise Content Management is the technologies used to capture, manage, store, preserve, and deliver content and documents related to organizational processes. ECM tools and strategies allow the management of an organization's unstructured information, wherever that information exists.” What does that really mean? All organizations receive and produce information associated with specific business purposes. Knowledge workers need to be able to access the right information at the right time in order to make decisions that will impact their business goals. Additionally, organizations need to manage information in a timely, responsible and cost effective manner to minimize risk while demonstrating compliance with corporate or regulatory policies. In short, Enterprise Content Management provides a single, integrated solution for managing all unstructured data in the context of a business process. 43

Source: IDC, The Digital Universe Decade – Are You Ready?, May 2010
Market Opportunity Market Opportunity - The Continued Explosion of Information 80% of new information growth is unstructured content – 90% of that unmanaged ECM is a Huge Market Opportunity Half of our 2010 revenue was partner driven 4 Billion Dollar Market opportunity 2020 35 zettabytes Despite being on this journey for awhile … the reality is dawning that the volume, variety and velocity of Information is driving unprecedented complexity. We are dealing with GROWTH of information volumes beyond human capabilities to keep track of and respond to quickly 80% of new information growth is unstructured content, (such as s, documents, forms, faxes, etc) and 90% of that is unmanaged. Many would say we’ve reached a tipping point … organizations need to act faster before timelines for action are compressed beyond current ability to respond. Tomorrow’s “winners” will be those organizations that leverage their information including enterprise content and analytics to gain competitive advantage. AIIM: the “association for information and image mgmt” claims that 60% of new ECM users cite “content chaos” as the main reason for adopting ECM. Organizations are succeeding because they are taking advantage of the explosion of information – of structured data and unstructured content - at our disposal today. Today there is an estimated 800,000 petabytes of data (for reference, a petabyte is a million gigabytes). Picture a stack of DVDs reaching from the earth to the moon and back. This year, the Digital Universe will grow almost as fast as last year (64%) to 1.2 million petabytes, or 1.2 zettabytes. (There’s a word we haven’t had to use until now – a 1 followed by 21 zeros.) This explosive growth means that by 2020, analysts predict there will be 44 TIMES as much data and content as there was in Our stack of DVDs would now reach halfway to Mars. The explosion of information today is creating tremendous opportunities for organizations, offering us unprecedented information and the capabilities to gain insight and optimize results 2009 800,000 petabytes 1990 2000 2010 2020 Source: IDC, The Digital Universe Decade – Are You Ready?, May 2010 44 44 44

ECM Opportunity Basics
Market Opportunity ECM Opportunity Basics Paper is still an important source of documentation. Can your customer easily access the right files? Electronic content must be controlled. Can your customer find the right version? Business processes are built around unstructured information. Does your customer have the right information in context? When looking for ECM opportunities, think about the basics we just explored. PAPER It’s still an important part of business. Can they find it? Or are they spending money duplicating, transporting, and storing it? ELECTORNIC CONTENT Many in the organization regularly create it, but can you find the most recent or approved version? BUSINESS PROCESSES Every business has operational processes. Is the content a critical part of it? Can it be automated and optimized? COLLABORATION Are decisions collaborative? Do they need content or other data sources to be made? Does it span multiple departments or entities? COMPLIANCE Are there regulatory requirements that can be automated? What is the impact of not finding the data quickly enough or keeping data that should have been destroyed? Decisions are not made in a void. Can your customer effectively work with colleagues both inside and outside the business? Regulatory and legal requirements are increasing. Is your customer consistently enforcing corporate policies without over burdening the worker? Content & Process 45

Enterprise Content Management Portfolio Overview
Steve Mills Portfolio Overview Enterprise Content Management Portfolio Overview The path to value lies along one or more specific business solution entry points Document imaging & capture Document capture automation Production imaging Enterprise report Management Social content management Office document management Social content & collaboration Platform standardization & consolidation Advanced case management Comprehensive case management Integrated collaboration and rules Case analytics Content-centric BPM Information lifecycle governance Smart archive Records management eDiscovery Disposition & governance Content analytics Enterprise search Content assessment Master content IBM provides an unmatched extensive portfolio capable of scaling from departmental to enterprise customer requirements. This includes: >Document capture and content management – leverage and manage information currently locked in file cabinets, warehouses, and other remote access areas. >Social content mgmt- manage and capture the proliferation of high value content stored in office and new collaboration environments. Facebook and linked in, chat blogs etc…. >Case Manager - empower the knowledge worker to achieve optimal business outcomes enabled through a set of adaptable capabilities to plan, coordinate, and execute based on relevant contextual information… Examples include Underwriting; Fraud investigation; Claims processing; or any complex exception handling involving a knowledge worker >IBM® Information Lifecycle Governance (ILG) portfolio is comprised of four key offerings: electronic discovery (eDiscovery) management, retention and records management, smart archive, disposal, and governance management. These offerings help organizations to manage both risk and decrease costs around storage and litigation >Content analytics to process contextual information and to apply analytics and reveal hidden or obscure insight to optimize business results. 46 46 46

Portfolio Overview To optimize business outcomes Smarter organizations manage content for value SMART IS … DIGITIZING PAPER Citi cuts application processing time from over 2 weeks to just 2 days. SMART IS … GOVERNING AND DEFENSIBLY DISPOSING OF INFORMATION Thomas Miller meets its archiving, retention and compliance requirements. Smarter organizations standardize and simplify the way they conduct business Common use cases / drivers include: >Datacap Capture drives rapid ROI. This is a rapidly growing partner business for IBM and a great opportunity for partner recruitment. >Properly managing content drives down risk and reduces storage cost. Impressive ROI and risk containment make ILG another excellent opportunity for new partners. >Case Management provides a flexible, adaptable environment to drive organizational productivity and optimize customer experience >Content Analytics to mine content for hidden value and insight. >Empower 21st Century social business in today’s highly regulated marketplace Moving physical records to electronic format through Capture automation thus eliminating paper in storage as well as retrieval / discovery of physical records Reduce costs and manage risk though defensible disposal utilizing e-discovery, records management and archiving. Improve customer service and productivity through content-centric workflow automation Content analytics to derive better insight about business by analyzing unstructured content Utilize social tools to and collaborating on content SMART IS … EMPOWER WORKERS TO OPTIMIZE OUTCOMES Castilla y León has automated routine processes to focus on exceptions. SMART IS … RAPIDLY DERIVING CONTENT INSIGHTS A German police department uses analytics to help solve crimes. SMART IS … TEAMING WITH CUSTOMERS/PARTNERS Sennheiser uses global collaboration platform for content 47 47 47

Value Proposition for partnering with IBM ECM
Value Propositions Value Proposition for partnering with IBM ECM Why should I lead with IBM Enterprise Content Management? According to Gartner and Forrester – IBM ECM is a leader in the marketplace with broadest set of capabilities A modular unified environment engineered for rapid deployment of both IBM and partner applications Access to ECM channel technology specialists to provide enablement and solution development guidance WHY SHOULD I LEAD WITH IBM ECM? According to Key Analysts; Gartner and Forrester, IBM is a leader in the ECM market place. We provide both partners and clients the widest range of ECM capabilities to solve today’s most demanding content related challenges. The IBM ECM product stack is continually growing through development and acquisition… examples include the Advanced Case Management, Datacap Capture and PSS Atlas, part of the ILG family. IBM ECM invests heavily in development to provide technology that ties together including other IBM brands so that partners and clients can rapidly develop and deploy solutions. This capability helps our partners to expand and support their client offerings with confidence. A third key that all ECM partners have access to is our ECM CTP’s and solution development organization. This represents a core component to our partners growth and success. From enablement to solution development and marketing campaigns, a partner’s success is only limited by their commitment to the program. WHY SHOULD I TEAM WITH IBM ECM? The IBM Software Value Plus Partner program rewards business partners as they invest in our program… partners generally start as resellers however our program helps to evolve them to become solution and support providers driving significant value to our clients and accelerated partner revenue. Every Partner is assigned a Channel Manager to assist in the day to day activities of the partner program, whether it be sales engagement or business development. The channel manager becomes the partner advocate within IBM. They team closely with the assigned CTP to provide the partner an outstanding opportunity to grow their business. The IBM SVP ECM Partner program was designed to provide partners the ability to rapidly deepen their technical skills and develop industry focused solutions . Why should I team with IBM Enterprise Content Management? Strong ECM Channel organization with dedicated partner management Co-operative marketing opportunity Outstanding SVP partner program rewarding Partners as they invest Strong demand by clients for partners to solve rapidly growing content challenges with innovative solutions 48 48 48

Business Partner Profile
Profile of ECM VAR Profile of ECM Solution Provider Project driven or opportunistic integrator Moderate ECM skills | regional Drive smaller deals Core ECM and/or Capture centric Smaller organizations 3-5 deals a year Service to Software ratio 1-3 to 1 Resale and some SVI Small sales force Strategic – marketing | solution oriented Line of Business and/or Industry expertise Strong ECM skills | national Drive large repeatable deals Core ECM; Case Manager; ILG; Analytics; Capture larger organizations 2-4 deals a year Service to Software ratio 3-5 to 1 Resale; SVI; support provider; authorizations moderate to large sales force w/marketing We desire partners who are committed to providing value to our clients and sales force. Our SVP ECM Partner program has 2 partner distinct partner categories… the ECM VAR and Solution Provider…. The ECM VAR is generally a regional player, developing technical skills, drives smaller transactions and plays in the GB space. They tend to resell and are focused on capture and basic content mgmt requirements. This is currently a high growth opportunity for partner recruitment with the acquisition of Datacap and a shifting competitive landscape. The ECM SOLUTION PROVIDER is generally national and in some cases international in coverage. They proactively grow pipeline though marketing activities based on their developed industry solutions. Their technical skills and services are deep and tend to be targeted around high value ECM Capabilities such as Case mgmt, Analytics, ILG and Capture. In many cases the solution is a combination of our ECM components driving higher Value to clients. Many of our solution providers are support providers driving even more value and revenue to their bottomline. What is interesting to note is that all of our Solution Providers started out as VAR’s. They seized the opportunity to grow their business. Let’s take a look at an example. 49 49 49

IBM Premier Level Partner in Partner World SVP Authorized in all five IBM software brands Track record of 200+ certifications , implementations, and a world-class Support Services organization with over 200 long-term customers Recipient of multiple IBM excellence awards: o 2009 IBM Most Distinguished Achievement Award o 2008 CTO Innovation Award Enchoice is a strong example of a successful ECM Partner that has invested heavily in our program and IBM. Enchoice has been working with Filenet and then IBM ECM for almost 20 years. They started out as a VAR and methodically grew their skills and services. Over time they developed repeatable assets that evolved into multiple industry solutions. They are also a support provider for many of our products, driving even more value and revenue per opportunity. As you can see Enchoice is a very successful organization that has expanded their reach to include multiple IBM brands and IBM awards. 50 50 50

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Enterprise Content Management PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Complete your Enterprise Content Management Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell Enterprise Content Management through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 3 4 5 51

Resources – IBM Enterprise Content Management
Key People: Bob Rudis - N. A. ECM Channel Sales Manager CONTACT: Kevin Mooney, NA ECM Business Partner Development Representative CONTACT: Key Places: Become a Business Partner: Join PartnerWorld Here Visit the ECM Home Page on Partner World Start your journey here Check out the ECM Enablement Roadmaps Learn how Watson is influencing ECM at ibm.com If you have a potential partner, want more information or just have a question, please feel free to contact us: Bob Rudis who manages the ECM channels for NA. Or Kevin Mooney is the ECM Recruitment leader for NA Thank you for your time. 52 52 52

Industry Solutions Software Smarter Commerce - Business Partner Guide Value Propositions
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Smarter Commerce can help transform every phase of the commerce cycle
The concept of a efficient commerce has always been the way nimble companies have succeeded - by putting their customers at the center of their solutions. In this age of real time data, social media and highly competitive market spaces, business find themselves trying to embrace a new commerce mindset to remain relevant. By insisting upon putting the customer in the center of the commerce cycle , and taking the time consider the various business processes that enable customer satisfaction, we can imagine successful Commerce looking something like this. This is a smarter take on Commerce – IBM’s vision for Smarter Commerce. All facets of the Commerce lifecycle are integrated and the core business process that support this paradigm must work together in an integrated and efficient manner. IBM understands this criticality and has invested Billions of dollars in software acquisitions and integration development to make this new market space a reality. As an IBM business partner, you will have the ability to capitalize on this enormous investment to help your customers become more competitive and relevant in their markets. Market opportunity Smarter Commerce can help transform every phase of the commerce cycle Sourcing, controlling and procurement of goods and services Targeted and personalized marketing across all customer interactions Selling and fulfillment of products and services across all channels Servicing customer needs across all interaction channels Market Buy Service Sell Customer Insight Strategy Engagement Buy Drives intelligent, adaptive and optimized extended supply chains based on customer demand Market Creates personalized and relevant offers with unified cross-channel marketing Service Anticipates behavior and delivers flawless customer service across all channels Sell Enables customers and partners to buy what they want, when and where 54

Market Opportunity $78 billion in opportunity for 2011
Smarter Commerce $78 billion in opportunity for 2011 Growing 3x faster than overall IT opportunity The market opportunity is enormous Smarter Commerce, regardless of where your skills as a business partner lie. Take a look at some of the business intelligence IBM has gathered from various industry analysts. Market Opportunity TARGET CLIENT SIZE >1000 = 62% 100 – 999 = 19% 1 – 99 = 15% Non Business = 4% Source: IBM Market Analysis (GMV) Alisa Macklin Business Partner Summit Presentation V2. Amounts reflect IBM internal estimates, are provided for illustrative purposes only and are not meant to represent or guarantee opportunity in any business segment. 55 55

Smarter Commerce Portfolio / Solution Overview
Portfolio overview Smarter Commerce Portfolio / Solution Overview CORE BUSINESS PROCESS OFFERINGS Buy Market Sell Service Cross-channel Selling Order Management & Fulfillment Customer Integration & Collaboration Store Solutions Payments & Settlements Customer Awareness & Analytics Social Media Marketing Cross-channel Campaign Mgmt Digital Marketing Optimization Delivery, Service, & Support Customer Self-Service Case Management Supplier Integration & Management Supply Chain Management Payments and Settlements When we think about the Smarter Commerce portfolio, it is important to thin k about the core business processes that map to the various stages in the Commerce lifecycle. As you speak to your customers about Smarter Commerce, put them in the center of the conversation by taking the time to understand the business processes that the see at central to their business, and work towards making these more efficient for them. When you approach the conversation from a business process prospective, versus a product or software perspective, you get the heart of what their company needs to be competitive. The integrated portfolio of products that IBM offers are mapped below the categories of Buy, Market, Sell and Service and their respective business processes. This is simply to illustrate the spectrum of functionality Smarter Commerce contains, and to guide our business partners in understanding where their current expertise might immediately apply to this opportunity. Understanding where your current competencies might fall, then allows you to determine adjacent investments you can make in your skill set to grow your expertise with this offering. Retail Store Solutions 56 56 56

Portfolio Value Propositions
Why Partner with IBM around Smarter Commerce? IBM is creating, defining and making this market; a key component in IBM’s global revenue growth objectives. Strategic acquisitions – over $2.5B since 2010 Comprehensive enablement and technical resources Generous marketing and demand generation assistance Formalized Business Partner Program to enhance partner margin Unique incentives for identifying, recommending and co-selling IBM SaaS software offerings 57 57

Business Partner Reference – Smarter Commerce
IBM Premier Level Partner in Partner World A premier provider of cross-channel commerce solutions that enable a smarter, more personalized shopping experience. More than 14 years of experience delivering business strategy, implementation and managed services for B2B & B2C. Sell to business decision makers that drive cross-channel customer experience First SVP Retail Industry Certified IBM Business Partner Recipient of multiple IBM excellence awards over several consecutive years Awards o 2010 Beacon Award for Outstanding Business Agility Solution o 2010 IMPACT ”Smart SOA Award” Finalist o 2009 IMPACT “Best in Show” o 2009 Beacon Award Finalist for “Best Overall ISV Solution- Cross Channel Commerce” Current WS Commerce partner, ramping up support for Unica & Sterling Commerce Completed the new Smarter Commerce Capability Authorization CrossView is an example of an extremely successful and competitive Reseller and ISV partner of IBMs. 58 58

Business Partner Profile
Profile of Traditional Reseller Profile of High Volume Reseller Value driven, solution oriented Revenue predominantly in Services (typically 80% of total revenue) Small sales organization that is highly dependent on IBM SSRs Works roughly 5-7 deals/year Velocity driven, transaction oriented Revenues mostly in resale or SVI revenue, some adjunct services Larger sales organization that is highly dependent on customer budget and renewal stream Works roughly deals/year/rep While CrossView is seen as a reseller at the high end, most of our business partners fall under one of these two categories. 59 59

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Smarter Commerce PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Get started on your Smarter Commerce Capability Authorization Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell Smarter Commerce through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 3 4 5 60

Resources – Smarter Commerce
Key Places: Become a Business Partner: Join PartnerWorld Here Visit the Smarter Commerce Partner World page Start your journey here Smarter Commerce White Board Demo Access this here Smarter Commerce Capability Authorization Smarter Commerce Global 2012 Summits Learn more Key People: John Ehmann, WW Director Smarter Commerce CONTACT: , Melinda Matthews, Director - WW SWG Industry Solutions Sales, Business Partners CONTACT: , Stasie Fishman, WW Channel Business Development Executive CONTACT: , 61 61

Information Management Business Partner Guide Value Propositions
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Information is at the center of a new wave of opportunity
Market opportunity Information is at the center of a new wave of opportunity … and organizations need deeper insights 44x Organization leaders frequently make decisions based on information they don’t trust, or don’t have 1 in 3 as much Data and Content Over Coming Decade Organization leaders say they don’t have access to the information they need to do their jobs 1 in 2 Volume and variety of information (structured and unstructured) is exploding. Also, current economic times require corporations and governments to analyze new information faster and make timely decisions for achieving business goals. But the truth is that most organizations are still stuck at the gate… Complexity continues to increase Data quality continues to decline Data security issues continue to escalate And compliance requirements continue to emerge. Sources: The Guardian, May 2010 IDC Digital Universe, 2010 IBM Institute for Business Value, 2009 IBM CIO Study 2010 TDWI: Next Generation Data Warehouse Platforms Q4 2009 of CIOs cited “Business intelligence and analytics” as part of their visionary plans to enhance competitiveness Velocity 83% Variety 2020 35 zettabytes Volume 2009 800,000 petabytes of organizations will look to replace their current warehouse with a pre-integrated Warehouse solution in the next 3 years; only 14% have today 35% Sources: The Guardian, May 2010 IBM Institute for Business Value, 2009 IBM CIO Study 2010 TDWI: Next Generation Data Warehouse Platforms Q4 2009 63

Information Management Spending & Growth
Market opportunity Information Management Spending & Growth IM Software Markets $33B in 2012 As seen in the chart, the growth is in Databases, but Information Integration and Master Data Management is certainly a key growth and focus area for the next 4 years as well. Our partners are certainly needed to help us focus and gain share in these area. Database Management A database management system (DBMS) consists of software that operates databases, providing storage, access, security, backup and other facilities. Database management systems can be categorized according to the database model that they support, such as relational or XML, the types of computer they support, such as a server cluster or a mobile phone, the query languages that access the database, such as SQL or XQuery, performance trade-offs, such as maximum scale or maximum speed or others, the types of workload, such as OLTP or analytics, and architectures that share data and high availability. In addition, the tools help customers move beyond cost reduction to address performance optimization, enhanced efficiency and greater productivity through faster time to value. Data Warehousing A data warehouse is a special instance of a database that is used not to process transactions, but instead to provide a store of trusted information for analytical queries and business reports that are used by IT business analysts and line of business managers for business analytics and decision support. Structured data, unstructured content and XML from disparate sources are cleansed, modeled, transformed and stored in the warehouse for analytics and reporting. Some data warehouses also manage operation data reads and updates. Data mining tools and business intelligence applications provide the opportunity for simple or highly complex scheduled or ad hoc queries, as well as the visual rendering of results for easy understanding through dashboards, scorecards and other reports. Information Integration Enterprise data integration provides IT organizations with a unified set of tools that make data integration and data quality a core competency in their organization. It provides the capabilities to integrate, align, standardize, and harmonize data from disparate systems and deliver trusted information to new applications, business processes and business users. Master Data Management (MDM) Master data management ( MDM ) comprises a set of processes and tools that consistently defines and manages the non-transactional data entities of an organization (which may include reference data). MDM has the objective of providing processes for collecting, aggregating, matching, consolidating, quality-assuring, persisting and distributing such data throughout an organization to ensure consistency and control in the ongoing maintenance and application use of this information. Security, Privacy, and Lifecycle Management Security, privacy, and lifecycle management solutions provide the ability to manage enterprise application data and optimize data-driven applications, from requirements to retirement, across heterogeneous environments. Establishes sustainable management of information quality and security, while enabling IT to make information more accessible, valuable and meaningful to the business. Allows for the delivery of trusted information for smarter business decisions across the entire information supply chain. Win with IBM Information Management Within IBM SWG - Information Management has the largest IBM overall BP opportunities with 49% Source: IBM Market Insights, GMV “2H 2011”. Amounts reflect IBM internal estimates, are provided for illustrative purposes only and are not meant to represent or guarantee opportunity in any business segment. 64 64 64

Optimizing Your Information Supply Chain for Trusted Information
Portfolio overview Optimizing Your Information Supply Chain for Trusted Information Analyze Transactional & Collaborative Applications Business Analytics Applications Integrate Content Big Data Master Data In order to deliver trusted information that can be used to make smarter business decisions, you must think about how you manage, integrate, analyze and govern information across your entire information supply chain. Additional description: There are many systems throughout an organization and information can come in at many points. That information can be the same or different and is often related. We manage information in our transactional systems, integrate to build warehouses and master the data to get single views and analyze it to make business decisions. This is a supply chain of information, flowing throughout the organization. (What makes your jobs harder than that of a traditional supply chain is that it is a many-to-many relationship. In a traditional supply chain, a good can only reside in 1 place and end up in 1 place. With information, the same data about you can come from many places, you may be both a customer, employee and partner and that information can end up in many reports and applications.) This means we need to be proactive about how we manage our information driving a need for governance. Governance needs to live within each phase of this supply chain as in within the database, integration, etc. as well as across the supply chain overall. Governance includes managing the quality of information, its lifecycle and protecting it throughout. These core disciplines are applied in all aspects including Management, Integration and Analytics. Manage Cubes Integrate & Cleanse Streams Data Data Warehouses External Information Sources Content Govern Streaming Information Standards Security & Privacy Lifecycle Quality 65 65 65

Information Management Capabilities and Values
Value Propositions Information Management Capabilities and Values Automating data management improves IT efficiency Delivering trusted information through integration increases business confidence Analyzing information from more places enables better business outcomes Efficient information security and governance improve business confidence Choose IBM Information Management for Data IBM can lower their overall data management costs by up to 30% IBM DB2 offers virtualization pricing for all editions of its software, and collaborates with vendors like VMware to ensure clients have the best array of virtualization options New migration features allow customers to migrate from Oracle to DB2 with ease, utilize their existing skill base and save money in the first year of deployment Choose IBM Information Management for Information Integration Help organizations understand where data resides, how it’s related and how to define the policies & metrics to protect their information Help organizations monitor database access, continually assess vulnerabilities and demonstrate compliance by implementing appropriate controls Must ensure appropriate controls are put in place to secure the data and ensure the enterprise is audit ready Choose IBM Information Management for Data Protection InfoSphere provides solutions to safeguard customer data and ensure compliance InfoSphere provides 100% visibility into all database transactions InfoSphere helps organizations avoid costly data breaches InfoSphere helps organization reduce risk of fines or audits; $5,000 to $1,000,000 on average Choose IBM Information Management for Application Management Improve developer productivity up to 50% Detect, isolate, diagnose and resolve performance problems in hours, not days Reduce data storage & archiving costs by up to 60% Increase application up-time by up to 35% Streamline application upgrades as a result of reducing the data conversion time by up to 60% Choose IBM Information Management for Data Warehousing Fast answers to business questions Better, faster decisions Optimized business performance New opportunities discovered Delivers new insights that help business users discover opportunities to maximize customer and product profitability, minimize customer churn, detect fraud, improve patient care, increase campaign effectiveness, and more Database software Data Security & Privacy Lifecycle Management Data Warehouse Appliances Information Integration Data Warehousing & Analytics Master Data Management Big Data Analytics What We Offer 66

Bridging the Gap Between Information and Outcomes
Reference Bridging the Gap Between Information and Outcomes Drive Efficiency Support Innovation Gained 30% performance improvement Enhancing Information Services Delivery Cut DBA workload by 25% 2/3rd reduction in time to process valuations Banco de Crédito del Perú: Gained 30% performance improvement HQ in Lima, Banco de Crédito del Peru (BCP) is Peru’s largest private bank with 320 branches employing 15,000 people with annual profits of $450M US dollars. They offer a range of retail banking products and services including bank accounts, insurance policies and mutual funds. Challenge – they had a range of isolated and outdated back-office applications that made supporting these systems efficiently or effectively. No single repository for business information, reliable and accurate reporting was almost impossible. IT staff were often called upon to generate these reports manually – a time-consuming and error-prone approach. They needed to reduce database costs, Improve scalability and flexibility and Increase up time of transactional process payment applications. Solution - implemented SAP ERP, SAP NetWeaver Business Warehouse, SAP NetWeaver Portal, SAP Solution Manager and SAP Business Objects Governance, Risk, and Compliance (GRC) running on IBM BladeCenter JS43, IBM Power 595 and IBM Power 570 servers. Benefits: By combining IBM DB2 and SAP NetWeaver Business Warehouse technology BCP’s key decision makers are now using real-time reporting to keep track of company performance and capitalize on opportunities immediately. By replacing the Oracle database with IBM DB2 it is estimated they will significantly lower their software license and maintenance costs. Compared to the Oracle database, DB2 provides 30% better performance, 92% PL/SQL Compatibility and 45% less storage. Source: Newell Rubbermaid - Brands include Rubbermaid, Sharpie, Calphalon: Cut DBA workload by 25% With several independent databases supporting SAP ERP and other business solutions, Newell Rubbermaid found it difficult to report across the different operating units. Newell Rubbermaid wanted a more integrated enterprise and replaced its legacy databases, Oracle and Adabas, with IBM DB2 as its global standard for all SAP applications. To ensure performance, reliability and availability, Newell Rubbermaid deployed the new solution on IBM Power Systems servers. Benefits - For the first time, Newell Rubbermaid has a truly global view of operations. - Able to process business intelligence queries on average 30 to 50 times faster. DB2 deep compression has reduced average storage volumes by 58 percent, cutting total storage costs by $300,000 in year one. Database administration workload has been reduced by around 25 percent, with the integrated DBA Cockpit making a significant contribution to their cost-saving objectives. Source: Coca Cola Bottling Company Consolidated: Reduced storage by 40% The Coca Cola Bottling Company Consolidated was able to realize 65% performance increases and a 40% reduction in database size with a solution built on DB2 and Power Systems. CCBCC planned to upgrade its SAP landscape, and prior to the upgrade it decided to shift to Unicode because all new SAP product releases (from the SAP NetWeaver 7.0 technology platform onwards) will be based on the Unicode standard. Predicted savings in the next five years of US $750,000. In technical terms, the requirements for a Unicode conversion are very similar to those of a database migration. In both scenarios the customer must perform an export and import of the database using the program R3load. The Unicode conversion itself is executed during the export phase of the migration. It is therefore very easy to direct the database toward a new target system without additional effort and downtime. Previously, CCBCC used an Oracle database for its SAP environment, and the upgrade would require either purchasing additional Oracle licenses or moving to a new database. CCBCC sought a way to reduce costs and to optimize performance and manageability in its SAP environment. Source: Visa: Enhancing Information Services Delivery Visa is an information company; they don't own the direct relationship with the card-holders. Instead, they are a business-to-business company, providing the infrastructure necessary to authorize, clear and settle transactions in real-time, with real-time being the key phrase there. Last year Visa processed 100 Billion transactions totaling more than $4.6 Trillion dollars for their 1.8B card holders, that's 10,000 transactions processed a second. Challenge: Older systems at capacity were slowing the addition of new capabilities and introduction of new products. Prior to the EDW initiative, many data stores were regionalized and data duplicated across the enterprise. Solution Objective: The new EDW solution will enable better decision making across the Visa's business. Visa’ s Information Services transformation and EDW roadmap will help Visa to enhance its ability to further monetize its information assets such as creating new/creative ways to extract value from data to its customers. It also enables them to reduce TCO by consolidating regional stores to centralized data system; acceleration in delivery of value to business. Solution: The solution includes Smart Analytics System model 7700 (includes P740 with DS3500 storage and InfoSphere Warehouse SW) to support non production systems and 300TBs of customer data for Production and BRP. Plus, IBM's Banking Data Warehouse Model. Source: Adam Gartenberg from IOD transcripts & JENNIFER STROMBERG, Software Sales Manager, Financial Services Sector Kelley Blue Book (KBB): 2/3rd reduction in time to process valuations Created in the 1920’s as the Blue Book of Motor Car Values, today Kelley Blue Book (KBB) is the premier provider of vehicle values to the automotive marketplace and resources for consumers researching new and used autos for purchase. Their website (KBB.com) reaches 13-million consumers who generate 35-million pricing reports monthly. From “Kelley’s Cash Price List” through today, KBB at its core has always been a data company; but until three years ago, analytics played a minor role in most decisions. That is changing, according to Vice President of Analytic Insights Dan Ingle: “Now analytics are at the heart of KBB’s strategy. We use analytics to optimize lead generation, and analytics enable us to maintain a very low error rate in forecasting vehicle valuation. With Netezza, we’re able to process all of our forecast models in a day, compared with the previous three to four days. This enables us to produce vehicle values that we can deliver in near real-time to the marketplace instead of waiting up to two weeks to push those values out to KBB.com,” he said. Business Challenges - Advertising data volumes exceeding capability of SQL Server environment, slowing data loading and queries. They needed greater computational power to accurately estimate advertising inventory availability for each advertiser for a full year in advance. Solution Benefits: Increased ad revenue from better ad analysis, forecasting and fill rate; Improved profitability from optimized ad pricing and search engine marketing optimization; Customer satisfaction from faster, more accurate publication of auto valuations and alignment of ad and consumer data for more targeted ad delivery decisions; Initial deployment in just 2 days. Source: Karina Bernier, Community & Customer Programs Manager - Netezza Catalina Marketing - 30% increase in coupon redemption rates Catalina Marketing is the global leader in behavior-based marketing solutions, providing CPG manufacturers and retailers with the ability to execute targeted marketing programs on the fly based on real-time market basket analysis and historical purchasing patterns. These programs use shopper buying behaviors without compromising any personally identifiable information, and deliver incentives and messages via printers located at POS. One of the most significant challenges Catalina faced before deploying Netezza was the inability to efficiently collect, cleanse and load more than 450M records each night onto its data warehouse system. While Redbrick performed very well, the system was not flexible enough to meet Catalina’s needs and business users had to often alter the questions they asked because of unreasonable execution times. Catalina needed a solution that was more flexible and above all, scalable to meet their growing demands for detailed information. Netezza has provided Catalina with the ability to quickly store and access over 400B market basket records collected from the Catalina Marketing Network, which is now installed in over 60,000 retail locations across the globe. Catalina can use the same BI applications as before (Hyperion, MSTR, SAS), while running 70x more queries on 5x the amount of data, at no additional operational cost. Catalina’s Netezza appliances enable them to streamline business operations and eliminate the use of less efficient systems as a result of the system’s ability to handle extremely complex and mixed workloads. For example, in one campaign relying on POS information to issue individualized coupons to customers, coupon redemption increased by 30% using Netezza. In another situation where Catalina used predictive analytics to target consumers that would be more likely to try a new type of coffee creamer based on past purchasing behavior, the ROI for that marketing campaign was 30% higher. By leveraging the simplicity of Netezza, Catalina has reduced the number of DBAs required to maintain its DW from 3 to <1. Catalina has also realized a significant increase in productivity and IT is moving 5-10x faster than ever before. In addition, the company’s primary database storage space decreased by almost 80TB when it initially migrated to Netezza, due to the elimination of all aggregate tables and indices. This reduction in storage also decreased the corresponding data center footprint. Reduced storage by 40% 30% increase in coupon redemption rates 67

Screen cap from Ed Ho/Misys
Reference Information Management and Misys Integration The Value of ASL Agreements ASL - An IBM contract for ISVs to integrate and license IBM software with their applications and services and to sell the bundled solution to end customers Ed Ho is an executive vice president and general manager of the Treasury & Capital Markets division at Misys and we recently interviewed Ed to describe the value of their ASL agreement. Let’s listen to Ed in this short video. Contact Linda Stanislawski at for a copy of the video to store on your laptop and link to from the deck, links are provided on this chart and work in slide show mode but you must have access to the internet. Following the video: I want to spend a few minutes describing the technical, marketing and sales befits that Misys and all our ASL partners receive from IBM. Background: The Misys objective is to be the leading application software and services vendor in the financial services industry. They provide mission critical assistance to help their customers process and optimize their workflows. To meet these objectives Misys develops their own components and integrates their partners’ components to help build solutions that satisfy their customer needs. Misys develops their solutions on IBM middleware and the IBM Blue Stack and is currently enabling their sales force to sell the IBM hardware as well as the following Information Management software: DB2, Cognos, InfoSphere Data Warehouse and InfoSphere DataStage and QualityStage. Screen cap from Ed Ho/Misys video Misys integrates IBM Information Management software into it’s Misys BankFusion Universal Banking and Misys Business Intelligence Solutions to increase sales, profit and market reach. Video available in: English, French, Italian, German, Spanish, Japanese, Chinese and Korean 68

Business Partner Profile – Information Management
Customers will pay a premium to vendors with industry-specific expertise Information Management Business Partners… Know industry – trends, profiles, problems, and business needs Understand client and market buying patterns Understand and speak the language of “Information” Have expertise beyond product and customer size Can differentiate the advantage of the IM Portfolio versus the competition Informed Business Partners win with IBM Information Management Customers will pay a premium to vendors with industry-specific expertise and those who can…. Make sense out of increasing complexity Help organizations improve data quality Reduce risks by mitigating data security issues Prepare organizations to meet and exceed compliance requirements 69

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Information Management PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Complete your Information Management Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell Information Management through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 3 4 5 70

Mobile Foundation Business Partner Guide Value Propositions
71 71

Mobile is a priority where IT spending will occur
7272 Market Opportunity Mobile is a priority where IT spending will occur Partners are prioritizing mobile for profitability Mobile 39.5% Enterprise mobile is a top priority for CIO spend Deals can yield big revenue: Typical resell deal is between $100,000 and $150,000 Significant services opportunity of $120,000 annually (assume $10k/mo. for managed mobile app services) Mobile drives demand for additional IT capabilities, such as IBM WebSphere Application Server, IBM Cognos, and IBM System X Mobile App focus shifts to the enterprise Source: IBM Tech Trends Report A12. Please select the solutions in which you plan to invest in the next 12 months. [choose all that apply] Source: IDC Partner Profitability 2011, Changing Business Models and Requirements in the Evolving IT Channel Ecosystem

IBM Mobile Foundation V5.0 Offerings
Portfolio overview IBM Mobile Foundation V5.0 Offerings IBM Mobile Foundation, Enterprise edition V5.0 IBM Mobile Foundation, Enterprise edition V5.0 is designed to provide the essential elements needed for mobile development, deployment, and management in Business-to-Consumer (B2C), Business-to-Business (B2B), and Business-to- Enterprise (B2E) environments. The Mobile Foundation, Enterprise edition V5.0 consists of: IBM Worklight V5.0 for mobile application development and delivery IBM Endpoint Manager for Mobile Devices for complete end-to-end Mobile Device Management (MDM) IBM WebSphere Cast Iron® Hypervisor Edition for advanced connectivity to back-end systems IBM Mobile Foundation, Consumer edition V5.0 IBM Mobile Foundation, Consumer edition V5.0 is designed to provide the essential elements needed for mobile development, deployment, and management in primarily a Business-to-Consumer (B2C) deployment model. It consists of: IBM WebSphere Cast Iron Hypervisor Edition for advanced connectivity to back-end systems IBM Worklight, Enterprise edition V5.0 IBM Worklight, Enterprise edition V5.0 has pricing metrics aligned with Business-to-Enterprise (B2E) purchasing patterns. IBM Worklight, Consumer edition V5.0 IBM Worklight, Consumer edition V5.0 has pricing metrics aligned with Business-to-Consumer (B2C) purchasing patterns.

IBM strategy addresses client mobile initiatives
Value Propositions IBM strategy addresses client mobile initiatives Extend & Transform Build & Connect Extend existing business capabilities to mobile devices Transform the business by creating new opportunities Build mobile applications Connect to, and run backend systems in support of mobile MAIN POINT: IBM strategy address the three key client mobile initiatives Extend and transform the business to yield new opportunities and business models while extending existing business capabilities to mobile employees, customers, and partners Build, connect, and run a growing portfolio of mobile apps for customers, partners and employees Manage and secure mobile applications, services and data on a variety of mobile devices and operating systems SPEAKER NOTES: In today’s mobile world enterprises are transforming the way they interact with their customers, partners and employees by implementing mobile strategies. We’ve heard from clients around the world about the key initiatives they have in the mobile space. They can be categorized in these three simple ways. They want to: IBM’s strategy directly addresses this set of initiatives, enabling our clients to deliver a comprehensive set of solutions to meet their customer's mobile demands and seize the opportunities that the mobile world provides while reducing cost and complexity. BACKGROUND DETAIL: None Manage & Secure Manage mobile devices, services and applications Secure my mobile business 74

Business Partner Opportunity
Value Propositions Business Partner Opportunity Partner Type Sales Role Client Relationship 1. ISV Work with ISV to Integrate IBM Mobile Enterprise portfolio with ISV application Prospecting/Indentify opportunities Joint Sales (potential) Embed Influence 2. VAR/VAD; RSI & Solution Providers Identify and sell IBM Mobile Enterprise portfolio Implementation services Fulfill orders SVI / SVP* : OI / OO 3. GSI Identify and recommend Mobile Opportunities Design services Implementation Services SVI / SVP : OI / OO 4. Mobile App Designers Expertise on Mobile App Design Augment ISSW/other services team Progress to ASL/Resell 5. Managed Service Providers Offer IBM Mobile Enterprise portfolio as part of their platform offering to solution developers Resell/ASL** with xSP Attachment * SVI = Sales Value Incentive * SVP = Sales Value Plus Authorized Distribution ** ASL = Application Specific License Agreement

About ZSL Awards & Accolades Success Stories
Reference ZSL is a Global Systems Integrator, ISV & IBM Premier Business Partner headquartered at Edison, New Jersey, with 4500 employees spread across in offices in India, Middle-East, US, UK, Canada, France, Germany, Belgium, Malaysia and Singapore SVP and Authorized Reseller, Solutions and Service provider for WebSphere Core, WebSphere Cast Iron, IBM Worklight, VDSB, IBM SmartCloud, Rational, DB2, IBM Softek Data Mobility Solutions (DMS), Cognos, ISS, Storage & Servers Application Specific License for WebSphere sMash, WAS, WPS, DB2 Express, Rational Software ZSL created Centers of Excellence (CoE) for Cloud, Enterprise Mobility and Big Data Analytics Computing with more than 100 subject matter experts specialized in SmartCloud Enterprise, Worklight and Cognos. Awards & Accolades ZSL Ranked in 2011 InformationWeek 500 List of Top Technology Innovators Across America Success Stories IBM Recognized ZSL's Innovations in the Cloud and Mobile Enterprise Enablement - Won Finalist Awards at Impact 2012 ZSL Brings Mobility and Cloud Enablement to the Enterprise with IBM WorkLight Technologies, IBM SCE and IBM WebSphere CI ZSL Implements IBM WebSphere Cast Iron to Cut 24-hour reporting delay to near real time ZSL’s PowerCube DaaS, IBM OCCS-based Desktop Virtualization Solution Won Finalist CTO award at IBM Lotusphere 2009 ZSL develops Web 2.0 assets 3 times faster with IBM WebSphere sMash

Business Partner Profile – Mobile Foundation
Customers will pay a premium to vendors with industry-specific expertise Mobile Business Partners… Know industry – trends, profiles, problems, and business needs Top industries are Banking, Healthcare and Retail Understand client and market buying patterns - Mobile is different: Transformational business models Anytime, anywhere business transactions Importance of social business interactions Faster lifecycles More iterative Requires open standards Understand and speak the language of “Mobile” i.e. App development using native and/or familiar web technologies, HTML5, CSS3, JavaScript App delivery in variety of forms, Mobile Web app, Hybrid app, Native Have expertise beyond product and customer size as the Mobile space presents large and varied opportunities Understand and articulate the business-to-enterprise benefits Understand and articulate the business-to-consumer or B2C space benefits Can differentiate the advantage of the Mobile Portfolio versus the competition Have the expertise to extend customer applications across different mobile devices and infrastructures Business Partners must have cross-brand expertise Mobile is a top priority of the enterprise and IBM Business Partners can deliver comprehensive end to end mobile solutions for their clients Informed Business Partners win with IBM Information Management Customers will pay a premium to vendors with industry-specific expertise and those who can…. Make sense out of increasing complexity Help organizations improve data quality Reduce risks by mitigating data security issues Prepare organizations to meet and exceed compliance requirements 77 77

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the WebSphere PartnerWorld Site to access Business Partner sales and marketing tools and other resources Complete your WebSphere Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell WebSphere through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 3 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 4 5 78 78

Worklight Certification Requirements:
Resources Worklight Certification Requirements: Resell Requirements Brand Family: IBM Mobile Foundation & IBM Worklight WebSphere CORE Authorization Group Requirements • PartnerWorld Partner Plan • 2 WebSphere CORE Technical Certs * • 1 WebSphere Sales Cert • or have WS CORE approved VAP Solution Fulfillment system: Passport Advantage IBM Mobile Worklight Sales Mastery v1 M660 test will be available by July 30th IBM Mobile Worklight Technical Mastery v1 N31 test will be available by July 30th

IBM PureSystems Business Partner Guide Value Propositions
A New Era of Computing 80 80

Clients struggle to overcome barriers of time, cost & risk
Portfolio overview Clients struggle to overcome barriers of time, cost & risk Typical IT Project Time and Budget Top Causes of Project Delays Phase Time (days) Budget Specify/design 14% - 16% Procure 19% - 21% Implement 74 – 93 12% Configure/test 74 – 80 10% - 11% Cluster & HA 66 – 104 11% - 12% Backup 44 – 108 10% Tune 89 – 98 9% - 10% Management 67 – 110 9 – 10% Hardware Troubleshooting and tuning production environment Integration, configuration and testing of the infrastructure Installation, cabling and network access for the environment Software Integration, configuration and testing of applications Integration, configuration and testing of middleware Configuration, build and deployment of applications 45% 45% 29% Main Point: There are opportunities for significant improvement in the time and dollars spent over the lifecycle of a typical IT project and to address the top causes for project delays. Speaker Notes: When we looked deeper into the time spent on the phases of implementing IT projects it becomes clear that there is significant opportunity for improvement to accelerate time-to-value. The numbers on the left represent the results of some primary research Forrester did for us to see what’s actually happening with projects today. As you can see the average project represents significant investment in time and resources. It’s no wonder that a third of them deploy later than planned. On the right you see the top causes for those delays. Integrating. Configuratiing. Tuning. Deploying. These are key areas address by PureApplication Systems. 41% 35% 34% 34% of new IT projects (US) deploy late From a commissioned study conducted by Forrester Consulting on behalf of IBM 81

Only 1 in 5 can allocate more than half their IT budget to innovation
Portfolio overview Only 1 in 5 can allocate more than half their IT budget to innovation Least efficient data centers Use of new technology: 43% first and fast technology adoption 1% move virtual machines to meet desired outcomes 21% use storage virtualization 3% use a storage service catalog (tiered storage) Results: Most efficient data centers Use of new technology: 86% first and fast technology adoption 58% move virtual machines to meet desired outcomes 93% use storage virtualization 87% use a storage service catalog (tiered storage) Results: Main Point: Efficient data centers use advanced technology Speaker Notes: Our global technology services group funded some additional primary research into the effectiveness of IT datacenters and discovered some interesting differences between the least and most efficient ones. As you can see on the left, the least efficient data centers were slow to adopt technology and make limited use of things like moving virtual machines, storage virtualization and tiered storage. On the right, you see that the most efficient datacenters are markedly different. They are heavy early adopters of technology and the items I just mentioned. What’s that mean to the business? As you can see on the left, least efficient datacenters have to spent about 2/3 of their IT budgets simply “keeping the lights on” – maintaining their existing infrastructure and can only dedicate about a third to new innovation. On the right you can see the dramatic difference from the most efficient data centers who can apply over half of the their IT budgets to new innovation. The question is how can we make the shift to use of these and other significant technology capabilities easier? BACKGROUND DETAIL: Source: 2012 IBM Data Center Study: ( ) Data Source: IBM Data Center Study Conducted January 2012 Seven Countries Study Background 308 Repondents in the study 65 questions Study conducted in seven countries worldwide – U.S., Canada, Brazil, Germany, France, China, India IT managers and CIO respondents IBM Report, IDC conducted research and helped write Study measured data center efficiency across the data center – including operations, facilities, server, storage, networking, applications and tool, governance, staffing Analyzed data to determine stages of data center efficiency Study Findings What we found is that one in five, or 21% or about 1 in 5 of the total respondents are operating at the Most Efficient level The Most Efficient data centers, are currently allocating about 53 percent of their total IT budget on new projects Least Efficient data centers are allocating much less to new projects that can help innovation – only 35% of IT budget on new projects Let’s look at some of the attributes that differentiate between the Most Efficient and the Least Efficient The Most Efficient Data Centers Early and fast adoption of new technology – 86% describe themselves as first or early adopters of new technology vs. 43% for Least Efficient data centers 58 percent use automation tools to move VMs automatically based on service level agreements (SLAs), without the need of manual intervention—versus 1 percent for Least Efficient data centers 93 percent of Most Efficient data centers use virtualized storage, versus 21 percent for Least Efficient data centers 87 percent use a services catalog approach for storage, leading to cost-effective storage placement, versus only 3 percent for Least Efficient data centers Definition of Storage Services Catalog: storage services catalog enables more efficient storage allocation and governance New projects New projects 35% 53% Maintaining existing infrastructure Maintaining existing infrastructure 65% 47% Source: 2012 IBM Data Center Study: ( ) 82

Simplified Experience
Portfolio overview The time has come for a new breed of systems Systems with integrated expertise and built for cloud Built-in Expertise Capturing and automating what experts do – from infrastructure patterns to application patterns Integration by Design Deeply integrating and tuning hardware and software – in a ready-to-go workload optimized system Main Point: The time has come for a new breed of systems. Expert integrated systems are systems with integrated expertise that combine the flexibility of a general purpose system, the elasticity of cloud and the simplicity of an appliance tuned to the workload – fundamentally changing the experience and economics of IT. Speaker Notes: The time has come for a new class of systems: systems with integrated expertise and built for cloud that combine the flexibility of general purpose system, the elasticity of cloud and the simplicity of an appliance Expert integrated systems will fundamentally change both the experience and economics of IT. Expert integrated systems are more than a static stack of self-tuned components—a server here, some database software there, serving a fixed application at the top. Instead, these systems have three truly unique attributes. The first is built-in expertise. Think of expert integrated systems as representing the collective knowledge of thousands of deployments, established best practices, innovative thinking, IT industry leadership, and the distilled expertise of business partners and solution providers. Captured into the system in a deployable form from the base system infrastructure through the application. The second is that expert integrated systems are integrated by design. All the hardware and software components are deeply integrated and tuned in the lab and packaged in the factory into a single ready-to-go system that is optimized for the workloads it will be running.. All of the integration is done for you, by experts. The third is that the entire experience is much simpler – from the moment you start designing what you need to the time you purchase – to setting up the system – to operating, maintaining and upgrading it over time. Management of the entire system of physical and virtual resources is integrated. And all this is done in an open manner enabling participation by a broad ecosystem of partners to bring their industry optimized solutions to bear. Simplified Experience Making every part of the IT lifecycle easier - with integrated management of the entire system and a broad open ecosystem of optimized solutions 83 83

IBM PureSystems A new family of expert integrated systems with:
Portfolio overview IBM PureSystems A new family of expert integrated systems with: Built-in expertise to address complex business and operational tasks automatically Integration designed to accelerate system setup and application management Simplified lifecycle experience from purchase to maintenance IBM PureFlex System Factory integrated and optimized infrastructure Management integration across compute, storage and networking – both physical and virtual No compromise design with system level upgradability Designed for cloud with flexibility and simplicity IBM PureApplication System Optimized for performance and virtualized for efficiency Designed for transactional web applications and enabled for cloud Application-aware workload management Project TROY is a new family of expert integrated systems with: Built-in expertise to address complex business and operational tasks automatically Integration designed to accelerate system setup and application management Simplified lifecycle experience from purchase to maintenance There are two members of the family that will be highlighted as part of the launch, specifically: The TROY Application System which provides a ready to use “Platform as a Service” and The TROY NGP System which provides a ready to use “Infrastructure as a Service” infrastructure system and we will focus on this one in more detail thru the rest of this presentation.

Reduce IT sprawl , optimize workloads
Value Propositions IBM PureSystems Why Clients Want to Buy Why Business Partners Want to Sell Simplified experience, single point of management across compute, storage and networking Obtain access to a very broad and large market opportunity-grow your business New high value consultative services opportunity and optimized solution sales delivery with leading ISV offerings Built in expertise to address complex business and operational tasks automatically The four simple approaches we discussed on the previous slide are all supported by IBM’s unique analytic-based services and capabilities. Essentially, IBM uses analytics to enrich the services capability that we provide to help our customers in the following four ways: First, analytics can be used to help you determine what to focus on next. On the hundreds or thousands of things that are impacting your business, which things require critical attention? The second way analytics can help is supporting you in truly modeling outcomes. You may find that there are three or four different alternatives to address a specific problem or challenge. Which of those is actually the most cost efficient? Which of them really addresses the issues you face more effectively? The third use of analytics is justification of expenditures. Which “things” that you are facing actually have the best return on investment? Last but not least, we have found we can use analytics to leverage automation. This escalated growth is occurring, but IT staffs aren’t growing along with it. There just isn’t the budget to do that. So how can you do more with less? And in many cases you can do more with less by automating the trivial tasks and freeing up your skilled resources to do those things that are more valuable for the organization. Here are four examples of how IBM uses analytics to help clients save money, free up resources, reduce risk, and provide solutions with faster business results: Our analytic tools allow you to virtualize complex workloads (beyond file and print) percent faster.1 You can take advantage of our logical dependency analytics that create move groups to help ensure that servers, applications and databases stay connected, supporting you in reducing risk and providing a seamless experience for your users. Our data center design analytics can help you analyze key issues such as capacity, resilience and cost to model outcomes and identify a design that can meet your specific requirements. And finally we can leverage automation and proven process to help free your IT staff to focus on transformational projects that enable business growth Integration by design to run systems for optimal performance and efficiency Incremental incentives from hardware and software to increase earning potential Reduce IT sprawl , optimize workloads Accelerate the sales cycle and increase time to value for client implementations

IBM PureSystems Business Partner Profile
Profile of Business Partner Reseller for IBM PureFlex System Strong Blades, Sys x and/or Power Sales & Marketing Skills/Systems Mgmt. & Implementation skills Ability to “value sell”– selling the value of the “integrated” platform Understand full client value prop Understanding of the following technologies Networking Virtual Fabric Ethernet Fibre Channel Tivoli TPM Virtualization - Systems & Storage Cluster Control High Availability Energy Management Fabric Management Profile of Business Partner Reseller for IBM PureApplication System Strong middleware skills Skills in middleware virtual images and patterns including skills with IBM Workload Deployer Sufficient skills and capabilities to support the PureApplication System sales process and the PureApplication System-specific PoC program. Ability to execute a PoT, PoC or BVA for components of the PureApplication System software stack Solution offerings focused on web application server deployment or database capabilities Expertise in workload consolidation and virtualization services Demonstrable skills in application and systems migration projects Other Partner Types with potential interest in WebSphere Cast Iron and Blue Works Live (Note: BP value props will vary for each BP Type) Infrastructure / Hardware Resellers who are looking to increase margins and transform business with software value They are comfortable with Appliance sales ISVs / Cloud Application Providers who want to sell integration with their SaaS Cast Iron increases customer stickiness which is important to SaaS subscription renewals and annuity business model SaaS Implementers who want to expand services beyond application implementation and build integration skills Business Process Outsourcers who are transforming their business to Cloud delivery model and want to add application integration to increase value of their B PaaS Hosters / Cloud Infrastructure Providers who are interested in developing value stacks for their Cloud Reseller or Influence or possibly ASL, but ASL in Monthly Rental model is special bid and has to be restricted to sales for ISV usage only. Business Partners requiring longer than 30 day access to BlueWorks Live should send an to with a copy to Jason Butler The WAS cloud partner reseller will be specialized in competitive take-out situations and will understand lead competitors: JBoss, Oracle, Tomcat, Open Source. 86

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the IBM PureSystems Site to access Business Partner sales and marketing tools and other resources Complete your WebSphere Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Use IBM PureSystems Enablement Maps to educate your Sales and Delivery Teams & become SVP Authorized to resell IBM PureSystems. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 3 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 4 5 87 87

Rational Business Partner Guide Value Propositions
88 88

Enabling product and service innovation
Market opportunity Enabling product and service innovation Security Application and process Application Lifecycle Management Design management Build and deploy management Quality management Requirements management SW change and configuration management Enterprise Modernization Application modernization Application portfolio management Multi-platform development $14B Overall Market Opportunity Business Planning and Alignment IT portfolio management Enterprise and business architecture Product portfolio management Delivery and performance management In today’s world, businesses are faced with heightened expectations for smarter products, smarter services and more innovative capabilities— all while creating more personalized experiences across the entire product and service life cycle. The smartest enterprises can deliver this kind of innovation—all while continually improving cost and efficiency in their product/service development cycle. IBM software can help. Design and development software helps teams to collaboratively design, test, and deliver new software, products, and systems. For efficient delivery, application lifecycle management software helps to manage the flow of people, processes, and information as well as aiding measurable process improvement and reporting. For more complex products and embedded systems, IBM has software to help manage requirements, model the complexity, and automate collaboration. Of course, many businesses have legacy core IT systems, and IBM Software for enterprise modernization helps to evolve these towards modern architectures and technologies, while reducing maintenance burdens and freeing resources. And resources are often constrained – enterprise architecture and portfolio management software can help to ensure they’re best deployed to maximize business value, while managing risk and impact of change. Finally, security is a consideration across the board. IBM application security software enables vulnerability testing and remediation in traditional and web applications as well as web services. Again, this is the holistic picture – we’ll take a brief look at the individual capabilities… Design, Development and Deployment Architecture and design Application development Build and deploy Real-time, embedded systems and software development Compilers Complex and Embedded Systems Systems engineering Systems of systems engineering Product line engineering Real-time and embedded software development Amounts reflect IBM internal estimates, are provided for illustrative purposes only and are not meant to represent or guarantee opportunity in any business segment. 89 89

Portfolio overview Rational Brand Value Proposition: Transform software and systems delivery to more effectively turn market requirements into innovative and profitable products and services, faster than the competition Realities can stall software-driven innovation Transforming software and systems delivery brings about dramatic business results Three key actions of transforming software and systems delivery Innovation is increasingly being driven by software This is a collection of high-level Rational brand messaging charts to select from when building your own sales and marketing presentations. These slides are intended to help communicate our value proposition, to an executive level audience, on how Rational helps our clients transform their software and systems delivery to harness the power of software-driven innovation. Rational software helps customers deliver greater value from their investments in software and systems, enabling organizations to: < Seize business opportunities (acquisitions, divestitures, home-grow new lines) by managing change (change in the marketplace, economic environment and in other macro areas,) and by ensuring investments are aligned with business priorities < Achieve precision in desired business outcomes by making better decisions – better decisions because they are based on real-time, accurate information and consensus across stakeholders < Execute with reduced risk and cost by delivering quality solutions (solutions that will achieve customer expectation and satisfaction) through improved governance and risk management Successful businesses will be those that use software to produce, deliver and manage smarter products and services that will drive innovation and competitive differentiation. JAZZ: Jazz is IBM’s initiative for improving collaboration across the software and systems lifecycle. The Jazz initiative consists of three elements: An open platform for lifecycle tool integration A transparent community working together to integrate and develop lifecycle tools A set of products that support the Jazz platform The Jazz platform includes a set of integration services for supporting a common infrastructure, including user administration, team collaboration, license administration, team process, traceability, and reporting. The platform also includes a set of standard protocols for linking data between lifecycle tools, as specified in the Open Services for Lifecycle Collaboration (OSLC) specifications. And it includes the application frameworks and toolkits used to build our current Jazz products. Software-driven innovation with IBM Rational Jazz provides open collaboration across the software and systems lifecycle IBM has set the bar for software and systems engineering platforms Achieve break through benefits with IBM 90 90 90 90

Rational Cross-IBM initiatives
Value Propositions Rational Cross-IBM initiatives 2011 IBM Simplified Commercial Framework Cloud Rational leads product and service innovation Integrated Product Management (IPM) Rational-led Integrated Service Management (ISM) Tivoli-led Rational plays a key role in: Cloud Planning, Security, Develop and Test Smarter Computing Enterprise Modernization Business Agility Business Planning and Alignment Security (cross-framework) IBM Secure by Design BAO Smarter Computing Capabilities / What IBM Sells Business Agility Social Business Product and Service Innovation Competitive x86 Systems 91 91 91 91

…A Satisfed IBM Value Added Distributor
Reference Premier IBM Rational Business Partner, ISV, Reseller, Systems Integrator, Education Provider Authorized across all Rational Brand products and covering all market segments within the United Kingdom & Ireland IBM Software Platinum Achievement “Rising Star” Award at the IBM Software Partner College TraceLine for DOORS listed in Global Solutions Directory and Ready for IBM Rational Software, Two VAP approved solutions. SVI and SVP Approved. Case Study: Network Rail , - DOORS, UK Ministry of Defence - TraceLine™ for DOORS “From a standing start, Integrate has achieved impressive sales growth…enabling many new customers to adopt and gain benefit from Rational products and has worked hard with… IBM to deliver the Rational systems sales strategy. They are a great bunch of people to work with!” …A Satisfed IBM Value Added Distributor 92 92

Rational: Reseller Business Partner Profile
Profile of traditional Reseller: Software License sales and/or Hosting Service as part of their business model Professional sales staff (customer facing) Customer Facing Telesales/Outbound calling Marketing resource Pre / Post Sales Technical resources Ability to work with customers to understand their business/technical problem and to provide solutions based on IBM offerings Specialized domain/industry knowledge Commitment to obtaining certification and maintaining skills in Rational solutions Willingness to collaborate with IBM Lab Services teams Multiple offices or willingness to travel to support sales Profile of high volume Reseller: 100% focused on IBM Solutions Cross Brand sales capability Unique solutions that leverage IBM Rational technology (and differentiate them from the stand alone IBM offerings) Industry recognized certifications Growth objectives: Acquisitions Multi-national Resources (financial and staff) to invest in new/developing technologies The ideal Rational partner should exhibit these characteristics found in our most successful partners. 93 93

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Rational PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Complete your Rational Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell Rational through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 3 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 4 5 94 94

Resources - Rational Ready for Rational: Stephen Lauzon
Rational Business Partner Development & Sales Manager WW Chris Mowry Rational Channels: North America Lead Mark Briggs Rational Channels: Latin America Lead Jose Ramon Pena Toro Rational Channels: North Eastern Europe Lead: Anat Samra Raunio Rational Channels: South Western Europe Lead: Olivier Roubine Rational Channels: Asia Pacific Lead: Jaya Mahadevan Rational Channels: Japan Lead: Tomotaka Yoshikawa Rational Business Partner Marketing: Mark Masercola World Wide Lead The key business partner people of Rational. 95 95

Security Business Partner Guide Value Propositions

Worldwide Security Segment Opportunity Exceeds $73B by 2015
WW Security Products and Services Segment Opportunity (2011 – 2015) WW Security Product Opportunity by Segment (2012) Market opportunity Worldwide Security Segment Opportunity Exceeds $73B by 2015 Source: IBM Market Insights, 2H 2011 This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Leading Products & Services in Every Security Segment
Portfolio overview Leading Products & Services in Every Security Segment 98 98

Solution Area: Security Intelligence and Analytics
Portfolio overview Solution Area: Security Intelligence and Analytics Portfolio Overview QRadar SIEM Integrated log, threat, compliance management Asset profiling and flow analytics Offense management and workflow QRadar Risk Manager Predictive threat modeling & simulation Scalable configuration monitoring and audit Advanced threat and impact analysis QRadar Log Manager Turnkey log management Upgradeable to enterprise SIEM QRadar Network Anomaly Detection Network analytics, behavior and anomaly detection Fully integrated with SIEM Helping our customers optimize security with additional context, automation and integration

People Solution Area: People Portfolio Overview
IBM Security Identity Manager * Automate the creation, modification, and termination of users throughout the entire lifecycle Identity control including role management and auditing IBM Security Access Manager Family * Automates sign-on and authentication to enterprise web applications and services Entitlement management for fine-grained access enforcement IBM Security zSecure suite * User friendly layer over RACF to improve administration and reporting Monitor, audit and report on security events and exposures on mainframes. Manage and extend enterprise identity context across all security domains with end-to-end Identity Intelligence * Solution package purchase options available

Solution Area: Data Portfolio Overview
IBM InfoSphere Guardium Product Family Database Activity Monitoring - continuously monitor and block unauthorized access to databases Privileged User Monitoring - detect or block malicious or unapproved activity by DBAs, developers and outsourced personnel Prevent Database Leaks - detect and block leakage in the data center Database Vulnerability Assessment - scan databases to detect vulnerabilities and take action Audit and Validate Compliance - simplify SOX, PCI- DSS, and Data Privacy processes with pre- configured reports and automated workflows IBM Security Key Lifecycle Manager Centralize and automate the encryption key management process Simplify administration with an intuitive user interface for configuration and management Enterprise-wide solutions for assuring the privacy and integrity of trusted information in your data center

Solution Area: Applications
Portfolio overview Solution Area: Applications Reducing the costs of developing secure applications and assuring the privacy and integrity of trusted information Portfolio Overview AppScan Enterprise Edition Enterprise-class solution for application security testing and risk management with governance, collaboration and security intelligence Multi-user solution providing simultaneous security scanning and centralized reporting AppScan Standard Edition Desktop solution to automate web application security testing for IT Security, auditors, and penetration testers AppScan Source Edition Adds source code analysis to AppScan Enterprise with static application security testing 102

Solution Area: Infrastructure (Network)
Portfolio overview Solution Area: Infrastructure (Network) Guard against sophisticated attacks using an Advanced Threat Protection Platform with insight into users, content and applications Portfolio Overview IBM Security Network Intrusion Prevention (IPS) Delivers Advanced Threat Detection and Prevention designed to stop targeted attacks against high value assets Proactively protects systems with IBM Virtual Patch® technology. Protects web applications from threats such as SQL Injection and Cross-site Scripting attacks Integrated Data Loss Prevention (DLP) monitors data security risks throughout your network Network Anomaly Detection for predictive early detection of network threats, system mis-configurations and out of policy traffic Provides Ahead of the Threat® protection backed by world renowned IBM X-Force Research IBM Security SiteProtector Provides central management of security devices to control policies, events, analysis and reporting for your business Behavior and Anomaly Analytics for predictive early detection of network threats, system mis-configurations and out of policy traffic 103

Why IBM Security Systems?
Value Propositions Why IBM Security Systems? IBM Security Systems Unique and Comprehensive Security Framework $1.8B investment in innovative technologies 6K+ security engineers and consultants Largest vulnerability database Award-winning X-Force® research Analyst-recognized leadership in every segment Bringing of IBM’s security software and hardware products into one unified team will enable us to develop the integrated strategy and roadmap needed in today’s world of ever-increasing security complexity. We are building our team to provide and single voice of IBM security for the client and to support the CISO in developing Intelligence ● Integration ● Expertise 104

IBM Premier Level Business Partner in Partner World SVP Authorized in all five IBM software brands Track record of over 700 security engagements, and a world-class Support Services organization with over 100 long-term customers Recipient of multiple IBM excellence awards: 2009 IBM Beacon Award For Delivery Excellence 2008 Avnet Crystal Growth Award 2010 IBM Beacon Award Finalist, Overall Technical Excellence. Member IBM Security Global Advisory Board Member Business Partner Advisory Council, Security Systems Division Enchoice is a strong example of a successful ECM Partner that has invested heavily in our program and IBM. Enchoice has been working with Filenet and then IBM ECM for almost 20 years. They started out as a VAR and methodically grew their skills and services. Over time they developed repeatable assets that evolved into multiple industry solutions. They are also a support provider for many of our products, driving even more value and revenue per opportunity. As you can see Enchoice is a very successful organization that has expanded their reach to include multiple IBM brands and IBM awards. 105 105 105

Security Business Partner Profile
The ideal Business Partner for IBM Security Systems has a well-developed security practice selling across one or multiple security segments: Network/Threat, People/Identity, Application, Data or Security Intelligence. Many of our Business Partners are specialists in one of those areas, bringing very deep skills and expertise to our customers. Key cornerstones of a great security business are: consultative selling approach pre-sales technical support deployment/implementation practice New Business Partners must also be willing to participate in IBM incentive programs and invest in marketing and opportunity identification. Security partners don’t fit just a single model. There are large and small partners in every geography. Some partners specialize in just one or two solution areas, others have broad security practices and engage with customers across their spectrum of security needs. IBM Security Business Partners typically resell our products as well as implement them for customers. They have strong technical skills as well as the ability to prospect and utilize marketing tactics for demand generation. If a Business Partner has selling and technical skills in any of the IBM Security segments: Network, Application, People/Identity, Data or Security Intelligence, we would welcome working with them in the Security Systems brand. 106

Security Business Partner Resources
ibm.com/partnerworld/security Sales Plays, Security Talk Replays, Sales Kits, Top Gun Prep, Certifications Pre-packaged marketing campaigns – it’s easy! 107 107

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Security PartnerWorld site to access Business Partner sales and marketing tools and materials and training Complete your Security Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your sales and delivery teams & become SVP Authorized to resell security through Training & Certification. Develop a marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing. 2 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 3 4 5 108 108

Tivoli Business Partner Guide Value Propositions
109 109

Total market opportunity over $35B by 2015
Did You Know? 5000+ Tivoli partners worldwide >30% of all Tivoli sales are through our Business Partners >50% of Tivoli storage sales are through our Business Partners >67% of our General Business sales are through Business Partners Overall Tivoli market opportunity in 2015 should be over $35B Tivoli software represents significant Market Opportunity for reselling Business Partners. Tivoli is IBM’s lead software brand in Cloud Computing and is an active participant in virtually all of IBM’s Smarter Computing initiatives. These two markets represent more than $71B in market opportunity. Tivoli addresses this market space with four overarching software product areas including Automation, Enterprise Asset Management, and Storage Management. Each of these product areas represent multiple tens of billions of dollars in revenue growth over the coming years. In addition to the significant revenue opportunity, Tivoli drives a significant piece of it’s business through the Business Partner channel. Over 30% of Tivoli’s overall business is driven by Business Partners with some product areas driving as much as 60% of their business through the partner channel. So, what’s driving this revenue opportunity? Let’s move to the next chart talk about that for a couple minutes. Total market opportunity over $35B by 2015 Source: IBM Internal. Amounts reflect IBM internal estimates, are provided for illustrative purposes only and are not meant to represent or guarantee opportunity in any business segment. 110 110

* Data sources noted in speaker notes
Faster Delivery Market opportunity 90% Mastering technology is the key to rethinking IT and reinventing business view cloud as critical to their plans* Improved Reach 1Billion Smartphones and 1.2 billion mobile employees by 2014* Technology will play a critical role in organizations achieving objectives. In fact, in IBM’s latest CEO study, technology has become the number 1 external factor impacting organizations. Cloud speeds service delivery, and so we now see 60% of CIOs view cloud as critical to their plans. We see organizations leveraging mobile to improve reach of services to clients – with 700m smart phones and tables shipping in 2012 – a 34% increase in a year. We see over 20B machine centric devices now deployed enabling more responsive business operations and business models. And all of these technologies are generating tremendous data with 2.7 zetabytes of digital content in 2012 – an increase of 50% in one year. Data sources: Faster Delivery: Quote from Scott Hebner of IBM in “IBM drives enterprise cloud shift with new solutions”. Software Consortium, ( Improved Reach: “Smartphone sales to touch 1 billion-unit mark in 2014: Credit Suisse”, Reuters, 4/12/2012. ( Responsive Operations: “'Pervasive Internet & Smarter Services Market Forecast ”, Harbor Research New Insights: “IDC Predictions 2012: Competing for 2020”, Frank Gens, IDC Responsive Operations 20B+ Factors impacting organizations: Technology factors 2. People skills 3. Market factors 4. Macro-economic factors 5. Regulatory concerns 6. Globalization 7. Socio-economic factors 8. Environmental issues 9. Geopolitical factors Intelligent business assets* New Insights 2.7ZB of digital content in 2012, a 50% increase from 2011* * Data sources noted in speaker notes

Extend to Mobile Devices Deploy Smarter Physical Infrastructures
Portfolio Overview IBM is helping organizations embrace bold strategies to Rethink IT, and Reinvent Business services, processes, and relationships… IBM is helping organizations embrace bold strategies to continuously optimize increasingly complex & dynamic business services, processes, & relationships: Optimizing with cloud for greater speed and speeding service delivery for one client from as high as 45 days to 20 minutes. Extend service to mobile and web endpoints helping one client increase sales with new promotions from 15% to 75% Deploy Smarter Physical Infrastructures helping one organization recognize & repair over 50% of issues before operations impact Protect and manage data helping one organization reduce the time it takes to backup critical data by 80% Optimize with Cloud Extend to Mobile Devices Deploy Smarter Physical Infrastructures Protect & Manage Data Speeding service delivery from 45 days to 20 minutes Increasing sales with new promotions from 15% to 75% Recognizing & repairing over 50% of issues before operations impact Reducing the time it takes to backup critical data by 80% Source: Tivoli Client Reference Database, various client references

Portfolio Overview IBM’s integrated service delivery & management platform offers the proven capabilities and best practices needed for success. Optimize with Cloud Deploy Smarter Physical Infrastructures Protect & Manage Data Extend to Mobile Devices IBM’s integrated service delivery & management platform offers the proven capabilities and best practices needed for success based on thousands of client engagements so organizations can: Optimize with cloud – transforming virtualization into a highly standardized and automated platform for IT service delivery Extend service delivery and management to mobile devices and ensure consistent and secure management across mobile and IT endpoints. Deploy smarter physical infrastructures like smart grids for energy and optimize your business operations Protect and manage data to ensure retention and availability for decision making. Service Delivery & Management Capabilities 113

Value Propositions - Tivoli
Best Service Delivery Products Skills: Tivoli Virtual Sales Academy Comprehensive Sales Plays ENABLE Access to Experts: Tivoli Accreditation Increased Lead Passing: LPDE, PAS, NLLB Small Deals and Cost Buster solutions ENGAGE More Incentives - SVI Multiple Options - SVP Simplified Processes IBM Software supports Business Partners through a model we refer to as Enable, Engage, Earn. Tivoli enables Business Partners through offerings, tools, and programs that map to this value prop model, including competitive products, sales and technical training, and comprehensive sales plays that leverage IBM’s marketing messages and deliverables. Tivoli also engages with it’s Business Partner community by helping them map out their plans for technical and sales certification to achieve accreditation goals, which can lead to additional support from the Tivoli team, more leads being passed from IBM to partners, especially around deals under $50K. Tivoli also supports a number of Cost Buster Solutions that demonstrate IBMs support for small deals through sample configurations and extremely attractive pricing and payment terms, including 0% financing. Business Partners can earn significant increased margins through IBM programs such as SVI (Software Value Incentive) and SVP (Software Value Plus), as well as a robust menu of marketing tools and benefits that simplify doing business with IBM and leverage services, which have been negotiated by IBM to provide partners with no cost or very attractively priced options for their go to market plans. Some examples include leveraging IBM’s aircover through Paid-Owned-Earned (POE) marketing, adopting sales plays that align with IBM’s focus market segments, using tools that can help partner’s grow their business, and the rapidly growing benefits offered through web marketing options, such as IBM’s Web Content Syndication benefit. EARN Leverage IBM Aircover – POE Plays for Your Success Tools to Grow Your Business Web Marketing boom info CNBC Purchased by IBM Sponsored by IBM Created by Fans Linked in facebook twitter You Tube 114 114

Winning isn't everything, it is the only thing!
Reference Winning isn't everything, it is the only thing! Reference slide STORServer At Bellin Health Front-safe at al dente IBM products and Sales Support, STORServer’s Channel Sales Organization and Meridian IT, the IBM and STORServer business partner engaged in a sales effort to solve a customer data protection problem at Bellin Health. The leading provider of business critical software for the dentist market in Denmark. Secure the dentist IT infrastructure with TSM Cloud Backup. Challenge: Administration of a large number of small customers who easily absorb all available resources at al dente. Solution: TSM deliver a high quality and very stable technical platform for protecting data and this platform demands very little daily support from al dente. The Front-safe TSM Portal on top of this solution makes the client side deployment and administration a very easy task and allow al dente to install and support the client backup remotely and also automate everything around billing. Competitive advantage: No other competitors are able to deliver a strong enterprise solution as TSM into our market of small dentist customers. STORServer Channel Management STORServer’s IBM ASL representatives Tivoli Brand folks Meridian IT Reseller We have more than 5000 business partners worldwide that help make sure our software installs properly, runs properly, and gets deployed properly so our customers get the value and benefit from the software they have paid for. Many of these partners provide additional capabilities and skilled services to provide their value-add and increase their revenue and profit potential. Take for example, IBM Business Partners STORServer and Front-safe… STORServer at Bellin Health STORServer provides a robust and scalable enterprise-class backup appliance based on TSM running on IBM hardware. STORServer’s appliance approach brings implementation standards, combined with their STORServer Console management software, and their high-quality solution support. STORServer teamed up with Meridian IT to provide a very attractive midmarket TSM solution. Bellin Health is a typical Mid-Market IT organization, with limited budget and limited staff availability, was facing a data management problem not unlike many health care providers are experiencing. Rapid growth in data was starting to tax the current infrastructure, including their old Backup Exec system. They realized that this data growth needed to be managed, and that IBM Tivoli Storage Manager has the capabilities and the scalability that Bellin Health’s rapid growth would require. In addition, Bellin was planning to expand their business by providing additional, new, health care services, which would only add to the rapid growth in data needing to be managed. The capabilities that TSM delivers played a critical role in the development of a solution that would meet Bellin Health’s requirements. First, the amount of data growth anticipated was going to necessitate the adoption of deduplication technology to reduce the amount of storage required for their backups. The fact that TSM 6 includes deduplication provided a tremendous value to Bellin Health. Second, Bellin Health had requirements for many of the advanced agent capabilities that TSM can provide. Front-safe at al dente Front-safe is another great example of a partner providing their value-add thru additional capabilities and skilled services. Front-safe is a Managed Service Provider targeting some 3000 dental offices in Denmark, like al dente. These small dental offices typically run their business on 1-2 servers and have a maximum of 150 GB of backup data each. Selling a traditional hardware /software solution to one of these dental business is close to impossible because IT budgets are very small, but 80 percent of them buy their critical dentist application and IT infrastructure from one of two dentist application providers in Denmark. So Store-safe has found a niche-opportunity to use software as a service, and signing up these two providers as busineess partners to sell the backup and data protection services in Denmark. Suddenly, this market becomes very attractive and very reachable. Store-safe continues to get new dentist customers every week with their solution, but the sales, implementation and daily follow up on these customers is done by their preferred IT partner. Both of these partners, STORServer and Frnt-safe, have taken innovative approaches in delivering their solution and services to small, midmarket businesses. These opportunities abound for any new reseller willing to make the investment in skills and providing their value-add. Challenge: Bellin Health was facing a data management problem not unlike many health care providers are experiencing. Rapid growth in data was starting to tax the current infrastructure, including their old BackupExec system. Objective: To replace a legacy system tied to the facility’s old electronic medical record system. Solution: STORServer Backup Appliance 115 115

Tivoli Business Partner Profile
Profile of traditional Reseller Value driven, implementation- oriented; offers value added expertise, including: Education Services (cloud, installation, configuration, migration, etc) Offerings Built on Tivoli (cloud, automation, asset management, security, storage) Manage complex project engagements well, including competitive take-out situations Run Co-marketing engagements to generate opportunities Engages with IBM Marketing activities Profile of high volume Reseller Velocity driven, transaction-oriented Focuses on the midmarket ready offerings and other Tivoli offerings identified as key drivers for small deals Generate leads by prospecting new customers Strives to maintain digital marketing tactics Takes advantage of IBM’s Co- marketing and conference benefits to generate opportunities Leverages IBM Marketing resources Understands lead competitors: EMC, CA, HP, etc. Tivoli engages with traditional resellers, who follow a value-add model, as well as high volume resellers, who are geared to driving lots and lots of transactions or, as we say “velocity driven.” Here we provide a brief profile of both types of Business Partners. A traditional value-driven reseller seeks to achieve a level of sales and technical certification that allows them to provide the education, services, and solutions built on Tivoli offerings, as well as other IBM offerings. They are able to manage complex projects, including competitive takeouts. The traditional reseller actively participates in IBM Co-Marketing programs, as well as engaging in IBM-led Marketing activities. Whereas, a high volume reseller focuses on driving lots of transactions to small and medium sized businesses, typically with small deals less than $50K. These high volume resellers also do prospecting activities and leverage digital marketing tactics and other IBM Marketing resources, including Co-Marketing, to generate their own opportunities. 116 116

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the Tivoli PartnerWorld Site to access Business Partner sales and marketing tools and materials and training Complete your Tivoli Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell Tivoli through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 3 Here are 5 quick steps to get started: To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. Once you have become an IBM Business Partner, you can: 1. Visit the Tivoli Knowledge Center on the PartnerWorld website, where you’ll find many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 4 5 117 117

WebSphere Business Partner Guide Value Propositions
118 118

2012 WebSphere Opportunity by Pillar
Market opportunity 2012 WebSphere Opportunity by Pillar Application & Integration Middleware Software Markets $16B in 2012 October 2011 AIM Market Trends Source: IBM Market Insights, 2H 2011 This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 119 119

With IBM’s help, customers can And must continue to transform to grow
Portfolio Overview WebSphere Capabilities Enable Business Agility With IBM’s help, customers can And must continue to transform to grow Agile processes and decisions Rapid, adaptable integration We have progressed business agility, from defining it two years ago, to validating, prescribing, showing how our customers have realized its value and now extending further Business Agility NEEDS WebSphere’s capabilities of: Agile processes to optimize decision making Unbounded applications that enable business change and maximize investments Rapid, adaptable integration to thrive in an interconnected world Flexible and intelligent infrastructure for performance, productivity and scale Taking advantage of new delivery models – mobile, cloud, appliances Now we are combining our capabilities for the strongest offering ever. Unbounded applications Flexible and intelligent Infrastructure 120 120

Why Sell/Value Propositions
Why Team with WebSphere WebSphere can help you enhance your profitability and increase your ROI Large Customer Base WebSphere has over 100,000 clients, and over 7,400 Business Partners 93% of the Fortune 100 use WebSphere Leading Platform Approximately $5 trillion worth of application investments currently reside on IBM systems and software and nearly 80% of all transactions go through WebSphere software WebSphere is the market-leading Internet infrastructure software, or middleware, for creating, running and integrating on-demand e-business applications across a variety of computing platforms IBM. IBM has a portfolio of comprehensive enterprise mobile capabilities Award Winning Products The Forrester WaveTM: Business Process Management Suites, Q report names WebSphere BPM one of the strongest sets of BPM capabilities in the market today Gartner has once again named IBM as the worldwide market share leader in the application infrastructure and middleware (AIM) software segment Information Security magazine ranked IBM DataPower XML Security Gateway XS 40 as the "Gold" market leader in its annual reader's survey for the second consecutive year (April 2008). 121 121

Achieved IBM’s Highest Level Technical Expertise Rating of 5
Reference Premier IBM Business Partner, ISV, Reseller, Systems Integrator, Education Provider Authorized across all IBM brands, multiple Industries & within WebSphere Core, BPM & Mobility categories Achieved IBM’s Highest Level Technical Expertise Rating of 5 Winner of over 10 IBM Awards including 2012 Beacon Award for Business Agility Over 25 Solutions available in the IBM Solutions Directory Helping customers IDP, Horizon BCBS of NJ, BCBS of MA, Honeywell and more go Mobile Prolifics WebSphere BPM, SOA , Integration, Connectivity & Mobility Case Studies Video Case Study: Post-N-Track Video Case Study: Equinox Fitness PDF Case Study: Mothercare Video Case Study: Horizon BCBS of NJ PDF Case Study: IDP PDF Case Study: mBlox “Over 10 years ago Prolifics made a strategic decision to align with IBM and WebSphere. Growing by over 450% in the last decade, it was clearly a turning point in our company’s history and one we would not have achieved without the support of IBM, the WebSphere brand, and the programs that support the IBM business partner community. ” Devi Gupta, VP of Marketing 122 122 122 122

WebSphere Business Partner Profile
Profile of Business Partner Reseller for IBM Business Process Management Project selling model -- tightly coupled with an application high repeatability and volume implementation/ integration Strong solution selling competency to new prospects Understand cross-functional business process flow and use cases Ability to identify integration requirements SOA skills Understanding of cross-functional business process flow and use cases Profile of Business Partner Reseller for IBM WebSphere Application Server – Application Infrastructure Writes applications requiring an application server such as Independent Software Vendors (ISVs) or companies who deploy systems projects such as Systems Integrators (SIs). Web Serving Applications (big and small) Migration from Open Source or Oracle web servers Specific projects running on single servers Java applications running on single and multiple distributed servers and/or z native as well as Linux on z Other Partner Types with potential interest in WebSphere Cast Iron and Blue Works Live (Note: BP value props will vary for each BP Type) Infrastructure / Hardware Resellers who are looking to increase margins and transform business with software value They are comfortable with Appliance sales ISVs / Cloud Application Providers who want to sell integration with their SaaS Cast Iron increases customer stickiness which is important to SaaS subscription renewals and annuity business model SaaS Implementers who want to expand services beyond application implementation and build integration skills Business Process Outsourcers who are transforming their business to Cloud delivery model and want to add application integration to increase value of their B PaaS Hosters / Cloud Infrastructure Providers who are interested in developing value stacks for their Cloud Reseller or Influence or possibly ASL, but ASL in Monthly Rental model is special bid and has to be restricted to sales for ISV usage only. Business Partners requiring longer than 30 day access to BlueWorks Live should send an to with a copy to Jason Butler The WAS cloud partner reseller will be specialized in competitive take-out situations and will understand lead competitors: JBoss, Oracle, Tomcat, Open Source. Profile of Business Partner Reseller for IBM Mobility Know industry – trends, profiles, problems, and business needs Understand client and market buying patterns and understand and speak the language of “Mobile” i.e. App development using native and/or familiar web technologies, HTML5, CSS3, JavaScript App delivery in variety of forms, Mobile Web app, Hybrid app, Native Have expertise beyond product and customer size as the Mobile space presents large and varied opportunities Understand and articulate the business-to-enterprise benefits Understand and articulate the business-to-consumer or B2C space benefits Can differentiate the advantage of the Mobile Portfolio versus the competition Have the expertise to extend customer applications across different mobile devices and infrastructures 123 123

Resources 5 Quick Steps to Get Started Join PartnerWorld to become an IBM Business Partner, then… 1 Visit the WebSphere PartnerWorld Site to access Business Partner sales and marketing tools and other resources Complete your WebSphere Business Partner profile Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell WebSphere through Training & Certification. Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 2 3 Here are 5 quick steps to get started: 1. To become an IBM Business Partner, you only have to join PartnerWorld, which gives you access to the resources you need to begin building and selling IBM-based solutions, products and services. There is no charge to join. Just accept the PartnerWorld Agreement and you will have easy access to valuable benefits, tools and support that can transform your business, today and tomorrow. There are many resources available that explain more about the benefits of being an IBM Business Partner and of PartnerWorld, a website dedicated to providing access to solutions, skills and resources to help IBM Business Partners win in the marketplace. Complete your Brand specific Business Partner profile: An up-to-date PPS profile is key to maintaining your access to PartnerWorld resources. Keep in mind that qualification for entitlement is based on the characteristics of your company's relationship with IBM such as contracts, country, PartnerWorld membership level, certifications, skills and solutions. Plan to maximize your profitability & your team’s education path by reviewing the Software Value Plus (SVP) & Software Value Incentive (SVI) criteria & product categories. Educate your Sales and Delivery Teams & become SVP Authorized to resell IBM software through Training & Certification Develop a Marketing plan and take advantage of IBM’s programs and drive demand with IBM Co-Marketing 4 5 124 124

Thank you! Thank you! 125

Disclaimers: © Copyright IBM Corporation 2012
IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America August 2012 All Rights Reserved IBM, the IBM logo, ibm.com and PartnerWorld are trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in this publication to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth, savings or other results."

IBM Software Business Partner Guide

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