ibm software incentives programs for business partners in 2005: tci and vap
DESCRIPTION
IBM Software Incentives Programs for Business Partners in 2005: TCI and VAP. IBM SWG EMEA - Maryska Marinus [email protected]. Agenda. 2005 Software Incentive Programs Which program is right for you? TCI program overview Qualification Requirements Fees Eligible Revenue - PowerPoint PPT PresentationTRANSCRIPT
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IBM Software Group
© 2004 IBM Corporation
IBM Software Incentives Programs for Business Partners in 2005: TCI and VAP
IBM SWG EMEA - Maryska Marinus
BP BP
LifeLife
CycleCycle
EnablingDeveloping
PartnerPlanDeveloping Sales
SkillsCoaching Sales SkillsDeveloping Technical
SkillsDeveloping Opp. Mgt
Skills
MarketingUsing
PartnerPlanExecuting
Joint Activities
Selling WithIBM ProductsCompetitive ProductsIBM SolutionsPricing/ConfigurationSpecial BidsTechnical ResourcesProposals
RecruitingIdentifying &
QualifyingRecruitingSelling to Enrolling
Managing Your Territory
Your AttainmentYour ForecastYour Partner Portfolio
SupportingManaging Partner LeadsManaging Partner
OpportunityManaging Customer
Satisfaction
IBM Software Group
Agenda2005 Software Incentive Programs
ƒ Which program is right for you?ƒ TCI program overview
ƒQualification RequirementsƒFees
ƒEligible RevenueƒEligible TransactionsƒExclusions
ƒEnrollment and other Functionsƒ VAP program overview
ƒSpecificsƒAdvantagesƒQualification criteriaƒHow to executeƒRevalidationƒEligible revenueƒTools to generate revenue
ƒ Where to Go for more Information
IBM Software Group
Which Business Partner offering is Right for You?
Resell
Value Add
Yes
Partner Defect
Support
No
Sell In SMB
PA Reseller
TCI Reseller
No
YesYes
VAP
No
IBM Software Group
Ideal Partner:Software reselling partners >50% partner revenue from resellingResell software into SMB
Key Benefits:Assistance in marketing and business planEarn fees for selling into SMB accountsQuarterly incentives for revenue achievement Pre and Post Sale Technical SupportParticipate in local marketing events
Description:Provides best "value" for reselling without solution content in SMB3 levels of participationAnnual programFees paid quarterly by IBM directly to resellerEnrollment by countryEligible transactions are sales to IBM designated SMB accounts
TCI Offering What is it?
IBM Software Group
Three levels of participation1. Entry
Only offered in selected countries in EMEA and LA First level of participation Lowest level of rewards
2. New Business Partner Offered WW For partners that have not been in the program for at least 12 months Higher rewards than Entry
3. Standard Offered WW For partners that have been in the program for at least a year
– were Standard level in Q4 of 2004; or– enrolled in Q1 of 2004
Other partners who were enrolled in 2004 will move to Standard level at the start of the quarter following their enrollment anniversary
Highest level of rewards
2005 Program Structure
IBM Software Group
2004 2005
TCI Standard
TCI New Partner
TCI Entry (selected)
TCI Standard
TCI New Partner
TCI Entry (selected)
PW Membership Level
Adv. or higher
Adv. or higher
Member or higher
Member or higher
Member or higher
Member or higher
PartnerPlan to Drive Sales in SMB
Required Required Required Required Required Required
Certification req'd1 SW
Technical1 SW
Technical1 SW
Technical2 SW Tech, 1 SW Sales
2 SW Tech, 1 SW Sales
1 SW Tech
Achievement of Revenue Milestone (for Approved for Benefits status)
25K 25K NA 25K 25K NA
Participation Time Period
YES NA NA YES NA NA
2005 Program Structure Qualification Requirements
YTY Comparison
IBM Software Group
2005 Program Structure Fees
Regular feesƒ Base fee offered; varies by levelƒ Premier accelerator fee which was offered last year is withdrawn and replaced
by additional fee percentage on bonus fees in Q1, Q2, and 1H
Bonus feesƒ Offered to Standard Level Partners onlyƒ Paid on eligible revenue for the quarterƒ Partners earn fee if they achieved or exceeded their assigned quarterly
objectiveƒ 1H bonus offered with special eligibility rules:
If partner earned the Q1 bonus, they are not eligible for 1H bonus1H target is the sum of Q1 + Q2 targetsMust be enrolled by March 31, 2005 to qualify for 1H (as well as not earning Q1 bonus)Partner cannot earn both 1H and Q2 bonuses; will be paid whichever is higher (probably 1H)
IBM Software Group
2004 2005TCI
StandardTCI Entry
TCI New Partner
TCI Standard
TCI EntryTCI New Partner
Base Regular Fee 8% 5% 8% 8% 5% 8%
Base Accelerator Fee (paid on all revenue in a quarter when partner
is PWSW Premier)
2% NA NA NA NA NA
Quarterly Bonuses(paid on all eligible
quarterly attainment) for Q1, Q2, 1H
5% NA NA 7% NA NA
Quarterly Bonuses (paid on all eligible
quarterly attainment for Q3, Q4)
5% NA NA 5% NA NA
2005 Program Structure Fees (continued)
YTY Comparison
IBM Software Group
2005 Program Structure Fees
Quarterly objectives set as follows (Standard Partners only):
ƒ Determine partner's revenue from the prior four quarters, from the quarter in which the partner is eligible to participate in TCIIncludes VAP-SMB revenue Includes SMB revenue sold to end users with Band I or J contracts Both of above must meet other TCI eligibility rules
ƒ Apply a year-to-year growth percentage and this becomes the partner's baseline
ƒ For each quarter, a quarterly skew is multiplied times the baseline and this becomes that quarter's objective
ƒ Partner will receive all quarterly objective amounts at the time of enrollment at Standard level
IBM Software Group
2005 Program Structure Fees (continued)
Measurement against quarterly objectives (Standard Partners only)ƒ Eligible TCI attainment during the quarterƒ Also added:
VAP - SMB revenue during the quarter SMB revenue sold to end users with Band I or J contactsBoth of above must meet other TCI eligibility rules
Payment of bonus fees (Standard Partners only)ƒ If partner meets the quarterly objective, paid the bonus fee on TCI attainment
for quarterƒ 1H bonus has special eligibility; if partner met Q1 objectives, they are not
eligible for 1H (only Q2)
IBM Software Group
2005 Program Structure Fees - Example
Partner A:ƒ Is Standard level in Q1 of 2005ƒ Has a quarterly target of 50K USD for Q1ƒ Has eligible TCI attainment of 40K USD in Q1ƒ Has, in addition, VAP-SMB and transactions sold to end users with Band I and J contracts which would otherwise qualify for TCI, and which totals 20K USD for Q1ƒ Has accepted the Terms and Conditions for the 2005 program
Standard Fees this partner will earn for Q1:ƒ8% on 40K USD, or 3,200 USD
Bonus Fees this partner will earn for Q1:ƒ This partner does meet their quarterly objectives, because the total of their eligible TCI attainment,
and their VAP-SMB / Band I and J transactions is 60K USD which is greater than their Q1 target of 50K USD
ƒ Their bonus fees will be calculated on the eligible TCI attainment part of that total, so they will earn 7% on 40K USD, or 2,800 USD
Total fees earned for Q1: - 6,000 USD
Example0
10
20
30
40
50
60
70
VAP & I/JTCI
Target
Pay on TCI only
IBM Software Group
2005 Program StructureEligible Revenue & Transactions
Eligible Revenueƒ Passport Advantage transactions to end user customers designated by IBM as SMB
SMB status based on ISU Code of the IBM Customer Number associated with the orderSMB 2005 designation list "frozen" in early February 2005
–Updates only for new SAP #'s or changes from unassigned or undetermined ISU Codes
ƒ Part Numbers with new license revenue
Eligible Transactionsƒ Orders with eligible revenue, received by IBM from the first day of month in which
the partner enrolled in TCI 2005 through December 31, 2005Partners enrolled before March 15, 2005 have eligible revenue counted from Jan.1, 2005.
ƒ Eligible transactions must be from the partner's Preferred Distributor (except Asia Pacific countries)
IBM Software Group
2005 Program Structure Exclusions
ExclusionsRenewals and Maintenance After License part numbers continue to be excludedInternal SalesSales to another TCI participantOrders processed under a Passport Advantage contract designated as ELAPart Numbers from Orders that are VAP qualifyingI and J orders Rational productsAttainment prior to attainment start date
IBM Software Group
Enrollmentƒ All partners must enroll
No automatic creation of a 2005 enrollment recordƒ Partners enrolled in 2004 will have option to "pull in" their information from
their 2004 enrollment record for editingƒ Enrollment function scheduled to be available early to mid February, 2005
Terms and Conditionsƒ Once partners are approved, they must accept terms and conditionsƒ Accepted partners can review the terms and conditions and MGF Operations
Guide onlineƒ In certain countries, terms and conditions can be accepted online; in other
countries directions will be given to print, sign, and mail
On-line statementƒ Attainment Statement
Shows the partner their TCI Attainment by quarterƒ Payment Statement
Shows the partner their Regular Payments with detail and any adjustments
2005 Program StructureEnrollment & Other Functions
IBM Software Group
Value Advantage Plus Offering Overview
Ideal Partner:ƒ ISVs, SIs or Solution Providers ƒ Sells application/services into
SMB and Enterpriseƒ >30% partner revenue comes
from their application or servicesƒ Reselling is secondary to their
business
Description:ƒ Ideal for Solution Providersƒ Provides great "value"
discount/incentive for partners selling to SMB and enterprise
ƒ Incentive is earned ''upfront''at the time of transaction
ƒ No revenue commitment/initial purchase
ƒ Flexible, transaction based relationship
ƒ Tech. benefits delivered through PW if you buy Value Package
Key Benefits:ƒ Earn fees for selling into SMB
and Enterprise Accountsƒ Same discount opportunity for
''one'' or ''many'' deals. Not based on volume or target
ƒ IBM provides SW technical support for end user customer
ƒ Pre and Post Sale technical support
IBM Software Group
VAP Specifics
IBM Software Group
Succesful VAP BP Criteria
Business Partners which Qualify for VAP status:
ƒ BP core Business is delivering Applications and/ or Services
ƒ At least one solution built around IBM software technology
ƒ BP has an identifiable / Repeatable Application and / or Service
ƒ BP has ''branded'' Solution recognition in the industry
ƒ Business Partner Application and / or Services comprise 20 % or more of the value of a typical solution engagement
IBM Software Group
Advantages for the Business Partner
They have identified their most successfull 'Value Add' to focus onDefined what their Solution is Prepared Marketing material: a brochure or/and a websiteEverything is in place to repeat the saleLower investment costs for repeated salesHigher discount because they are in VAPHigh level of support from the Value Add Distributors:
ƒ in planningƒ enablementƒ lead generationƒ fulfilment
A perfect sales tool to expand their Value Add Business
IBM Software Group
VAP -- Qualification Criteria
Membership in PartnerWorld Must be willing to have resell relationshipMust be willing to adhere to VAP compliance / audit requirementsPartner Business Model
ƒ delivering applications and services is their core business 30% of total revenue comes from the sale of the Business Partner's applications or services
At least one Solution built around IBM software technologyƒ A repeatable application and/or service offering
Documented...with "branded" identity in the marketBusiness Partner application and/or services comprise 20 % or more of the value of a typical solution engagement
Three customer references required
IBM Software Group
Criteria : Solutionƒ Solution = Business Partner Value Add sold together with IBM Softwareƒ Business Partner Value Add
An application designed to run on IBM software...A service offering built around IBM software technologyA combination of application and services
ƒ Authorized IBM Softwarethe IBM software identified in approved solutionsAuthorized by brand...all products within the brand are eligible for the Value Advantage Plus incentive when they accompany the Business Partner Value Add
ƒ Repeatable Solutionplan on which area to focusinvest 1 time to develop and define repeatable solutionearn extra with every sale from VAP discountbrochure or website requirement helps to repeat the sale
–criteria for website or brochure:–solution name–IBM brand(s)–the connection between the solution and the IBM brand(s)
IBM Software Group
Criteria : References
To make a faster start with Value Advantage Plus:ƒ 3 References required in application ƒ 2 Positive references required to get solution approvedƒ 1 Reference for next solution
ƒ Reference can be:for a solution on competitors middlewaresolution expertiseIBM middleware expertise
NB:references are contacted directly after the application by IBM by mail
Customer reference questions:1)When was the application or service purchased from the partner? 2)Describe the specific software and services purchased from the partner? 3)Why did you select this partners solution offering? 4)Has the application or service met your expectations?
IBM Software Group
Must Meet VAP Business RulesWW Operations Selects VAP Partners
ƒ Quarterly Audits
VAP Partner, Geo Field and Operations Notified Validation Done by Third Party
ƒ Worldwide Support Center - IBM Compliance Teamƒ toll free number Italy: 1-8007-85715ƒ Email: [email protected]ƒ 6900 Maritz Drive Mississauga, Ontario L5W 1L8 Canada,Fax Number: (416) 352-5353
BP Documentation for Auditƒ End User Invoices (contract)ƒ Name of the Solutionƒ Productnumberƒ Brandƒ raised within 6 months may be combined ƒ 20 % own application/service (or more) ƒ BP Records Retention = 3 Years
BP and Field Notified of ResultsIf BP Fails Compliance Audit
ƒ VAP Solution ID Numbers are Withdrawnƒ BP is Terminated from VAP Program, may apply again after 1 Year ,
Criteria : Compliance
IBM Software Group
VAP -- How to Execute
Partner registers for PWSW, Gets a profileFrom Partner's Profile in PWSW, Partner applies for VAP
ƒ In private section of PWS siteƒ Use VAP Registration Guide in PWS as Model
All Questions Must be Answeredƒ Customer References ƒ Reviewed / Approved by Geo operations
ƒ Partner Needs to Establish VAD RelationshipVAP Application Approved
ƒ Partner notified via emailsoluton ID number, date first order can be placed via VAP
ƒ VAD notified via emailƒ SAP order system updated with VAP solition ID number
Partner Sells Under VAP programƒ Order placed through VAD
include VAP solution ID number
IBM Software Group
Revalidation What is it?Business Partner updates their PartnerWorld for Software profile on a yearly basis.ƒ -This is conducted by the Worldwide Support Center (WWSC), to ensure that
the BP is complying with the program [email protected]
ƒUpdating the information in your VAP application: revenue last year
contact / urland anything else that changed in the past year
When?ƒ after one year
How does the partner know about it?ƒ will get a request to do so.
letter per couriermails to remindfinal reminder by courier
What happens when the partner does not respond?ƒ terminated from the program,may apply again after 1 year.
IBM Software Group
VAP eligible revenueEligible Revenue for VAP 2005 :
ƒ Trade up and license will count. ƒ In SAP and PASSPORT the terminology is LCMNTSPT or
TRDMNTSP. ƒ If you are looking at the WWPB &Configurator, this is the terminology
you need to look for. ƒ PART TYPE = License + SW Maintenance or PART TYPE = Trade
Up License + SW Maintenanceƒ I & J level in PA effective the 14th of March 2005
Not eligible for VAP in 2005:ƒ Reinstatement will not count. ƒ Maintenance renewal will not count. ƒ Shrinkwrap does not count. ƒ Any sale to an end user who has an ELA does not count.ƒ In general Part numbers in the Brand called OTHER do not count
regardless of whether it is a new license or not, but if the products are in PA via IBM Passport Solution Selling they are eligible.
IBM Software Group
VAP and the tools to generate revenue:
the program enablement
Virtual Innovation Center (VIC)PWD (Partner World for Developers)Solution Builder Express
–www.ibm.com/partnerworld/solutionsbuilder
marketingƒ IBM:
Registered BPsMarketing CentersAgency Activation
ƒ NDB:Marketing
IBM Software Group
2005 Where to Go for More Information
Top Contributor Initiative webpages on IBM PartnerWorldwww.ibm.com/partnerworld/topcontributor
GEO Contacts :EMEA - TCI MGF ([email protected])
Value Advantage Plus webpages on IBM Partnerworld www.ibm.com/partnerworld/software
GEO Contacts : EMEA – VAP ([email protected]) Ruth McCabe ([email protected]) Phone: +353 (0) 1 7047442
Your Value Add Distributor: NDB
IBM Software Group
QUESTIONS ?
Thank you very much !
Looking forward to do business with you!