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Competing against 3rd party support providers for client $ Winning with IBM Software Subscription and Support
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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.
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What many 3rd party support only providers claim What you should say
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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
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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?
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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?
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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
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S&S overview & Value to clients and IBM business partners
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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
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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
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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
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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
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Value of S&S measured against 3rd party support only
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Passport Advantage Agreements Important S&S Definitions, explanations & terminology
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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
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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.
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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.
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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”
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Review Costs & risks of dropping S&S
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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
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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
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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
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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
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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
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ACT
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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
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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
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Backup?
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S&S – Value of Compliance – GDPR Example
IBM takes every precaution to protect your data and privacy GDRP Client Information – Internal Use Only
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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
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Consistent IBM Cloud User experience
Value – The Heart of Every Negotiation Consistent IBM Cloud User experience
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S&S – Value to Clients is Security
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