1. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. Technical Support Services “You bought the hardware, make sure you maximize the availability!” Global Technology Services

2. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 2 Why Sell Maintenance?  Why do customers buy maintenance? Hardware is bought to increase productivity. Warranty and maintenance support complements the productivity increase by limiting outages.  Clients benefit by having timely, cost-effective repairs on equipment in ever-increasing complex environments.  Maintenance also allows for better budgeting and planning and allows customers to maximize TCO.  As X86 sellers, promoting and selling maintenance has many benefits: –Sellers will have the responsibility and control for the full life cycle of products –Transactions will have increased profitability –Quota attainment for maintenance services  Lenovo maintained accounts are more likely to buy new Lenovo hardware. Competitively maintained accounts have higher odds of buying used equipment by the competitive maintainer.  Additional Help / Contacts – Bruce Johnson/Tampa will be managing the US based Sales Team for Services, so Bruce and his team are available to help assist you and to answer questions. Other geographies will be announced upon the completed transition.

3. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 3 Warranty and Maintenance Details  Three different elements of service: –Warranty –Maintenance –Per call service (Hourly Support)  Warranty is the base level of coverage provided with all new machines for defect support –The typical warranty consists for 36 months and has a service objective of 9x5, next business day (NBD). –Options are available to purchase a Warranty Service Upgrade in order to upgrade the service level. Typical WSU upgrades the service to 24x7x4.  Maintenance is similar to warranty, with the exception that is provided as Post-Warranty support and must be purchased by the end-user customer.  TSS doesn’t have “Per Call” Service contracts, but does provide hourly support for customers without warranty or maintenance. Service will be billed at an hourly rate plus parts and travel time. Certain limitations apply and Per Call Service is not a suitable replacement for maintenance.

4. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 4 Today, within IBM…  Global Technology Services (GTS) consists of: –Strategic Outsourcing (SO) –Integrated Technology Services (ITS) –Technical Support Services (TSS) The TSS organization consists of several, internal departments:  Delivery: the Service Delivery organization physically repairs machines. This organization consists of (among other people) Service Delivery Managers and System Service Representatives (SSRs – formerly known as CE’s). Remote Support: A function of Delivery, these are the helpdesk and remote personnel who take an initial call, provide immediate problem determination or problem resolution, and if necessary, dispatch a technician to resolve the problem.  PMO: the Project Management Organization helps facilitate large contracts and / or interface with larger customers.  Sales: the sales team sells new contracts, renews existing contracts and supports IBM/Lenovo Business Partners on both new and renewal sales.  More information on each department is provided on the following pages.

5. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 5 Service Delivery Service Delivery is the organization responsible for repairing equipment covered by warranty or maintenance –NOTE: customers without warranty or maintenance are able to pay a fee consisting of parts and hourly service. This “per call” service has limitations in terms of response time and what will and will not be performed.  Remote Support –Initial calls funnel into Remote Support for service entitlement and where initial Problem Determination is performed with the goal of solving the problem remotely (over the phone or electronically) –Calls which are not solved remotely have a head start to enable an SSR and the parts to be dispatched (if applicable) for onsite service based on the service levels contracted.  Parts Distribution –TSS utilizes a sophisticated parts network, with the anticipation to deliver the appropriate part(s) within the contracted service time. Hundreds of parts stocking locations across the United States are managed and monitored to ensure current firmware levels, necessary stocking location and availability to meet service levels.  System Service Representatives (SSR’s) –TSS’s network of SSR’s are located according to the machines under contract, by customer location and by contracted service levels to allow response and resolution via onsite service actions.

6. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 6 Selling Maintenance  Two primary contract mechanisms for selling maintenance: –ServicePacs –ServiceElite Contracts  Standard Service Levels: –Service levels are objectives and not commitments, unless contracted differently –Service levels are “response” objectives. The clock begins when a call is released from Remote Support and ends when an SSR arrives onsite –A service call can be deferred if mutually agreed upon by customer and TSS (i.e. the customer has a window for support and prefers the SSR comes out the following day) –9x5 Next Business Day (NBD): service is 9 hours a day (8AM to 5PM local time); 5 days a week (Mon-Friday, excluding holidays) with an objective to respond onsite during the next business day –9x5x4: is similar to 9x5 NBD, but the objective is to respond within 4 business hours –24x7x4: is 24 hours a day, 7 days a week, 365 days a year with an objective to respond onsite to service within 4 hours –24x7x2: is similar to 24x7x4, but the objective is to respond within 2 hours (this service level is not typical in the System X environment, and only available in specific cities) NOTE: Custom Service Levels can be negotiated and be very unique to individual customer needs

7. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 7 ServicePacs  ServicePacs (SPAC) –Initially designed for low-end products (PC’s up to System X) –Most often sold through the Business Partner (BP) channel or at the time of hardware purchase –Simple way to extend coverage out (extending the number of years) and/or up (upgrading the service level) –Priced in the same manner as ServiceElite –Delivered in the same manner as ServiceElite –Pro’s: Simple way for customers to buy additional support with simple terms –Con’s: lack the flexibility for custom terms, co-terminus coverage or options for billing terms, etc. which are often sought out by larger customers. More difficult to track for renewal at warranty end or at end of SPAC.

8. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 8 ServiceElite (short name for Master Service Attachment for ServiceElite)  ServiceElite –Often referred to as a “CHIS” contract, after the billing & registration tool: CHIS. –A more structured TSS maintenance contract, associated with the IBM Customer Agreement (ICA). –Additional options to extend coverage, upgrade coverage, and purchase services which go beyond standard support or SPAC upgrades. examples: project management; Hard-Drive Retention; parts on-site, etc. –One through five year terms, plus option for auto-renew. –Customizable billing terms. –Pro’s: a variety of flexible options and customizable terms. –Con’s: the more options, typically the longer the sales cycle / negotiations.  Multiple Attachments form the contract documents: –Base Terms: IBM (or Lenovo) Customer Agreement (or equivalent). –Master Service Attachment for ServiceElite –Any relevant statements of work (typically add-ons, custom terms, unique service services, etc. which must be added or “attached” to the MSA to become part of the contract). –Schedule of Services: the list of equipment, service levels, dates and pricing. Note: schedules can have definitive expirations and require renewing

9. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 9 Why Sell Warranty Upgrades and Maintenance  Warranty is the most cost effective support option (lower TCO).  After a warranty’s expiration, maintenance is the most cost effective and, often times, the only way to get full TSS support for break/fix services.  Warranty/Maintenance exclusives (some are optional or additional fees): –24 hour support –Same day responses –Holiday or weekend support –Access to Top Guns (the best of the best SSRs) ** –Remote Support ** –Access to TSS’s Parts Stock** –Electronic ServiceAgent (shipped with machines at no charge) ** –Customized Terms –Project Management –Priority service –Support at a planned/budgeted cost  Maintenance on System X is priced according a machine type and service level ** TSS exclusive support elements

10. This presentation is intended for the education of IBM and Business Partner sales personnel. It should not be distributed to customers. 10 Help—when and where you need it:  IBM has a support presence in 170+ countries, speaking ~127 languages  World-class remote technical support and local, on-site service infrastructure  Pro-active monitoring via Electronic Service Agent  Over 1.1M machines and growing  58 Support Centers worldwide: –Call entry and Level 1 remote technical support centers with national language support –Level 2 remote technical support centers with higher-level skills and deeper product knowledge  Last-level support centers, including: –11 global research laboratories –114 hardware and software development laboratories  654 network product (CISCO, Juniper) certified resources Global service logistics:  Over 24,000 systems service personnel worldwide  10 worldwide parts control towers and hubs  556 parts stock locations  US$690 million parts inventory: 1.3M IBM and non-IBM parts  420 parts suppliers  >10 million shipments and returns processed annually—average over 27,000 per day  Service ranging from ½ to 2 hours for call back, and 2 hours to next-business-day for onsite service  Service logistics network availability: around the clock TSS has numerous proof points for “Why choose TSS?”