1. Competing against 3rd party support providers for client $ Winning with IBM Software Subscription and Support

2. Consistent IBM Cloud User experience
Agenda
Consistent IBM Cloud User experience
SELL
Competing against 3rd party support providers for client $ Winning with IBM Software Subscription and Support
3rd Party Only Support Provider competitor claims and how you should respond
IBM Subscription & Support Overview and Value
Passport Advantage Agreements Important S&S terms
Review Costs & risks of dropping S&S
Take ACTION
DEPLOY
RENEW
IBM is investing millions of dollars in IBM Support to optimize the client experience for simplicity, engagement and insight.
Support operates in more than 70 software development laboratories worldwide with tens of thousands of support and developer staff.

3. What many 3rd party support only providers claim What you should say

4. What many 3rd party support only providers claim
IBM Subscription & Support
I can save you 90% off your IBM Software Maintenance
The IBM code is stable, you don’t need IBM S&S
IBM isn’t investing in the development, product and code enhancement
The version you are running is going End of Support – you don’t need full S&S
I hired the IBM developer that used to build the product
I hired the IBM Support Rep that used to provide coverage to clients
I am an expert, certified on the IBM product
You can get all the updates from IBM prior to signing with me
If you don’t like my support, you can always go back to IBM
Only pay IBM for S&S on some of your licenses. You don’t need S&S on all of your licenses.
Consistent IBM Cloud User experience

5. How to respond to 3rd Party Support Provider claims
What 3rd parties are saying about IBM S&S
How you should respond?
I can save you 90% off your IBM Software Maintenance (S&S
3rd party support is not the same as S&S. S&S provides support PLUS download access to new versions and releases, feature and fix packs. 3rd party providers can only offer support. However, they do not have access to IBM source code, developers, testing, diagnostic tools or IBM Service Requests. Ask yourself what will it cost me if support isn’t enough.
The IBM code is stable, you don’t need IBM S&S
IBM software is very reliable, but it isn’t static. With each new version, release, feature pack, software delivers new and enhanced capabilities to improve performance, security and usability. With a support only contract you miss out on the innovation IBM S&S delivers to clients.
IBM stopped investing in the product’s new development
Unless a product is withdraw without a replacement, this simply isn’t true. Check the IBM software lifecycle site. Reach out to IBM to connect with offering management to understand current and future development plans / roadmaps.
The version you are running is going End of Support – You don’t need full S&S
End-of-support is a natural part of the software lifecycle. As new versions and releases become available for download, technical support for specific versions and releases of older software is withdrawn. Encourage your clients to subscribe to new release notifications and upgrade to get maximum value from their software and S&S investment
You can get all the updates from IBM prior to signing with me
This may be true, but remind your clients that once they discontinue their S&S, they lose the ability to upgrade. Ask: what happens when IBM issues a fix, a new version or release or a feature pack and neither you nor the your 3rd party provider can download it? How long before your installed version can no longer deliver all that functionality available in newer releases. What will it cost to buy new? What will you do if you need a fix?

6. How to respond to 3rd Party Support Provider claims (cont)
What 3rd parties are saying about IBM S&S
How you should respond?
I hired an IBM Developer/Support Rep
Former IBM developers and support technicians no longer have the same access to IBM developers, source code or the IBM Support Infrastructure. They can not duplicate the knowledge and experience of an entire support and development organization and they cannot provide the 24x7 follow the sun problem resolution model that IBM offers clients with S&S
I am an expert and certified on the IBM products
Skills and certifications are essential. In fact, IBM invests heavily in on-going training for all technical & support personnel, sellers and Business Partners. IBM level 1 and 2 technical support teams and support providing Business Partners are all certified in their solution areas and they have the added benefit of access to developers and engineers who can assist when issues span multiple systems, processes, services and software offerings.
If you don’t like my support, you can always go back to IBM
Also true, but at what cost? Reinstatement prices are typically 3X to 5X more than S&S pricing. Pricing on any portion remaining under IBM S&S goes up on partial renewals.
Only pay IBM for S&S for part of your site….. you don’t need it on all
PPA contract terms require that “Client must maintain IBM Software Subscription and Support for all uses and installations of the IBM Program at that Site” and further that “If Client requests to renew expiring IBM Software Subscription and Support at a lesser quantity of IBM Program uses and installations than the expiring quantity, Client must provide a report that verifies current
IBM Program usage and installation, and may be required to provide other compliance verification
Information”.
Point out that reducing quantities impacts pricing. As a rule, pricing on the quantities remaining under IBM S&S goes up on partial renewals. It may also impact volume discount pricing. Remember, pricing for S&S is based on the entire account spend with IBM. what does one hour of downtime or one security breach cost?

7. Questions to ask your client
Have you reviewed the decision with your Chief Security Officer?
Risk Assessment for Security Breaches? Does running without IBM S&S increase or decrease your risk?
What is the estimated cost for a security breach?
GPDR Compliance Review? (Lack of Security or Feature Updates) What is the cost impact?
Have you reviewed the decision with your Head of Sales, Marketing, Operations, Finance, CIO?
What does one hour of downtime cost you?
Have you used a new version, fix pack or feature for your IBM software in the past?
If you can’t provide services to end user, clients, partners, government, what happens?
What happens to your reputation as a company? For you personally?
Financial Review:
IBM S&S Basic Value Proposition is more than just Support…..
Have you fully assessed the value from both IBM Software Subscription and Support?
What is the impact on S&S pricing for a partial renewal? Prices increases on everything else… Can cause PA Band Level changes and S&S renewal pricing on all remaining content increases.
What is the cost to return back to IBM S&S Coverage, when you don’t get the expected support from your 3rd party? Typically 3X to 5X more than current S&S pricing
Are you still in compliance with IBM’s Contract Terms? IPLA and PPA
Consistent IBM Cloud User experience

8. S&S overview & Value to clients and IBM business partners

9. IBM Software Subscription and Support (S&S) is…
IBM Software Subscription and Support* is a comprehensive product upgrade and technical support solution, available through IBM Passport Advantage® and Passport Advantage Express.
It provides your clients with two bottom-line benefits:
(subscription) download access to fixes, feature packs, new releases and new versions of your licensed software —via Passport Advantage Online.
(support) 24x7 support—when, where, and how they choose with online access to deployment, migration, troubleshooting assistance, access to Knowledge Centers, forums, Redbooks, Technotes, tools and entitled access to Service Requests and PMRs—for rapid response to severity 1 issues day or night
*One year included with your initial Passport Advantage or Passport Advantage Express software purchase
ibm.com/software/subscriptionandsupport
PMR – Problem Management Records 9

10. IBM S&S delivers innovation, security and support
Use S&S to accelerate innovation and increase return on investment*
Use S&S to ensure the highest level of security
Use S&S for access to end-to-end technical support
Subscribe to personalized support notifications
Search using the power of Watson analytics to find support documentation to
accelerate installation, deployment and migration
predict and prevent problems and troubleshoot
Get rapid response to severity 1 issues day or night fast with the entitled Service Requests tool
Subscribe to notifications
Upgrade when new versions and releases of your IBM software are available to
improve performance & usability
take advantage of security enhancements to reduce risk exposures
reduce application design, build & maintenance costs
Subscribe to personalized security alerts and act on them
Download and apply fixes and patches to
safeguard personal data and intellectual property
reduce risks and potential for catastrophic breaches
mitigate risks
Above surface: Business opportunities that everyone is concerned about - Improve productivity and optimize efficiency, Reduce time to market for a new product/solution, Gain a competitive edge, Reduce cost, Improve customer satisfaction and retention
Below surface: Things that especially affect IT, translated from the business opportunities above.
Spend a lot of time acquiring, cleaning and transforming data, before every analytics project, Need to use data from both within and outside corporate firewall, How do we achieve compliant data freedom to serve growing demands from our business users?, Too many technology and data silos across our lines of business. Customer data is patchy at best, Have cold or old data sitting on expensive resources, Don’t have the ability to pull in new types of data, Unable to scale insights & prediction. Dumped data into a Data Lake - effectively created a data swamp
High cost of data ownership: One of the factor that drive high cost = Have cold or old data sitting on expensive resources
*Clients who use S&S to upgrade average > 20% ROI

11. Calculate S&S Value = Total Cost of Ownership (TC0)
Calculating Value = Total Cost of Ownership (TC0)
10%
S&S cost ~ 10%
90%
Non-S&S Investment: >90% for
Admin and end-user training cost
Application design, development, testing costs
Cost of integration with other systems
Deployment cost
Operational support cost (day to day operations)
Application enhancements and bug fixes cost
Downtime costs (planned and unplanned)
Performance costs, Power, Cooling, Floor Space
Hardware and networking costs
Service Level Requirements
Replacement costs, Disaster Recover
Cost of other risks (including security breaches)
Cost of selection of the vendor software & management
IT organizations are spending from % of their total IT budgets on maintenance and ongoing operations. Source: Forrester
For modern IT platforms, 30% of the total cost is the cost of acquiring the equipment. The balance is for IT labor/services to configure, maintain, upgrade, reconfigure, and ultimately decommission the equipment. Source: IDC
Total Cost of Ownership
Gartner research note G , March 2009:
“Products available for free (such as open source), or those that are a "same cost" swap out, can cost more during three- to five-year period than a first-time commercial purchase costing thousands of dollars. To understand operation life cycle costs, a number of key inputs are necessary to provide a more realistic assessment of the total costs of management products.” 11

12. What S&S delivers that 3rd party support doesn’t
IBM Software Subscription and Support (S&S) is more than a support only offering.
IBM S&S Coverage
3rd Party Support
Support
Software "how to“ questions
Yes
Software defect support & emergency patches No
24/7 Severity 1 access ?
Submit/track unlimited cases/tickets
Skills-based routing
Access to Watson Cognitive Support capabilities
Watson Chatbots
IBM Assist on Site and Support Assistant
Access to IBM Diagnostic tools
Access to IBM infrastructure to replicate Client issue
Access to IBM Development
Regression testing for fixes
Support and security alerts
Access to IBM Product Source Code
Access to IBM Redbooks & deployment help
Subscription
New IBM product versions and releases
Access to Security alerts, Red Alerts, fixes, updates & APARs
Access to performance, and code enhancements
Relationship
Input into future product features and functions
Single escalation point across the IBM product portfolio

13. Value of S&S measured against 3rd party support only

14. Passport Advantage Agreements Important S&S Definitions, explanations & terminology

15. Passport Advantage Agreement key terms
IBM Software Subscription and Support
Coverage is for 12 months from date of purchase and renewed annually
Includes entitlement to new versions, releases, updates to IBM software AND to support

16. Passport Advantage Agreement key terms
All uses and installations requirement
S&S is required for all uses and installations*—sometimes referred to as “All or None”
Clients who request to renew S&S at a lesser quantity, (some times referred to as a partial renewal) must provide a report verifying current usage and installation.
*The ‘all uses and installations’ requirement was introduced in August 2014 – replacing the requirement for coverage of all IBM programs installed and in service at the customer’s site or none introduced in July 2011.

17. Passport Advantage Agreement key terms
Automatic renewals
S&S automatically renews* unless client notifies IBM of decision to terminate.
*Automatic renewal terms were introduced in May 2005
Reinstatement pricing
If clients wish to reactivate their lapsed IBM Software Subscription and Support at a later date, they must purchase at IBM Software Subscription and Support Reinstatement pricing.
Reinstatement prices are typically 3X to 5X more than S&S pricing.

18. Passport Advantage Agreement key terms
With Relationship Suggested Volume Pricing* (RSVP), the more you buy, the more you save.
Relationship Suggested Volume Price (RSVP)* is only available to clients with a relationship-based IBM Passport Advantage Agreement
You earn points for all Eligible Products (including CEO Product Categories, IBM Appliances and Appliance Services, IBM Cloud Services and IBM Software Subscription and Support) ordered during a predefined Term – usually 12 months).
RSVP/SVP Levels start at BL and progress to D, E, F, G, H, I & J. There are also band levels for Academic (ED) & Government. The higher the letter the better the price.
Consolidate multiple Sites under a single Agreement and to reach a higher RSVP level faster.
*Passport Advantage Express does NOT require a relationship agreement. There are no points—just a single BL price level
S&S is required for all uses and installations—sometimes referred to as “All or Nothing”

19. Review Costs & risks of dropping S&S

20. Without S&S your client is no longer entitled to
Download new versions, releases, modifications or fixes*
Once S&S lapses, they are NOT entitled download any Version, Release, Mod Release or Fix Pack they had not already downloaded or acquired while S&S was in effect
Submit Service Requests*
Once S&S lapses, they are NOT entitled to use Services Requests for 24x7 follow the sun PMR support Sev 1 or priority software support
PA Agreement terms state “Client shall not use IBM Software Subscription and Support benefits for IBM Programs for which Client has not fully paid for IBM Software Subscription and Support. “
Internal Use Only

21. Example: enhancements clients can no longer access
Release/Feature Pack
Number of Features
Security Features
Release 9.0
1307 53
Release 9.0.1
302 23
FP1
128 11
FP2
131
FP3
132 20
FP4
126 32
FP5
104 19
FP6 81 28
FP7
110 9
FP8
127
FP9
198 15
Total
1137
156 (14%)
Only Clients with Subscription have access to:
Major improvements:
1,307 New Features in V9
1,137 Additional New Features in V9 since release date
156 Security Enhancements
Can we work with OM to create examples -- perhaps for products being aggressively targeted by 3rd Party vendors (dB2? WAS? Spectrum? Or suggest that BPs create their own based on challenge

22. 3rd Party Support does not include Subscription
Think about the value S&S delivers
Innovation: Download new fixes, feature packs, new releases and versions for performance, usability and innovative technology improvements
Lower acquisition costs and long term protection for your IT environment
Security updates
Faster deployment: Accelerate deployment with Support & Knowledge Assets
Access to IBM premium support offerings and custom support models, designated and dedicated technical engineers
25 years of patent leadership - #1 in patents for the 25th consecutive year
3rd Party Support does not include Subscription
For more information about IBM’s patent and innovation leadership, visit

23. Think about the value IBM support delivers
A single integrated support experience – with search powered by Watson and predicative capabilities
Quicklinks
Electronic support
Support guides
Service Requests
IBM Support
Faster time to resolution with online access to expertise and skills– WW, 24x7
Diagnostic tools, training and coaching
Cognitive solutions including Automation, Chatbot, Search, Live Chat, Open Case with Question Assistant
How-to assistance with migration, deployment, troubleshooting and answers to code questions

24. Think about the value IBM delivers
IBM is the single escalation point with the depth of IBM to invoke change and provide resolutions to problems and guidance on future product direction
A direct relationship with development, sales, product and finance teams
Access to development, lab advocates and other executive level loyalty relationships e.g. Global Elite, Inner Circle
Influence the product e.g. invitations to participate in Beta programs, Client Councils and Support Sponsorship programs
Executive oversight
Trusted by IBM clients around the world

25. ACT

26. Take action
31_84 33_84 34_84 38_84 37_84 70_85 73_85 51_84 55_84 64_84 86_84
Understand competitive statements…. 3rd party support from a competitor is NOT equal to IBM Subscription and Support
Connect with you S&S Rep to deep dive on S&S Value Proposition
Use the IBM depth and breadth of products, support, R&D, development
Use financial, technical, legal and sales
Leverage the entire relationship with IBM
Support from a competitor is NOT equal to IBM Subscription and Support

27. Engage IBM Legal, Channels, Compliance & S&S teams
Validate of 3rd party support provider claims. Reach out to IBM Legal if you uncover false or misleading statements
Ensure that client CANNOT access IBM Subscription and Support benefits (either to download or submit SRs, if S&S has lapsed
Initiate Software License Reviews through Compliance Team, if appropriate
Leverage PPA Terms & Conditions, Pricing and Relationship to protect our install base
IBM will aggressively protect our intellectual property

28. Backup?

29. S&S – Value of Compliance – GDPR Example
IBM takes every precaution to
protect your data and privacy
GDRP Client Information –
Internal Use Only

30. Innovation matters @ibm and it matters to our clients
S&S – Value to Clients is Innovation
Innovation and it matters to our clients
25 years of patent leadership - #1 in patents for the 25th consecutive year
For more information about IBM’s patent and innovation leadership, visit

31. Consistent IBM Cloud User experience
Value – The Heart of Every Negotiation
Consistent IBM Cloud User experience

32. S&S – Value to Clients is Security