IBM Technical Support Services TSS 1 Why Sell

IBM Technical Support Services (TSS) 1

Why Sell IBM Services? 2 Sell Up Front n Increase your sales revenue and profit margins on every deal n Deliver a total solution to your customers n Every mission critical System x needs 4 -hour response service! n Increase customer satisfaction Ø No surprises Ø Consistent budgeting Ø Cost avoidance Ø Reduced down-time Ø Free up your presales technical support team © 2011 IBM Corporation

Service. Pac vs. Service. Elite Contracts and Packaging Service. Pac • Part numbered services – easy to order • Attached to System x/Blade Machine Type and Serial Number (one to one) • Fixed Ts&Cs / Scope • Prepay only • Fixed price • Available in System x configurators/ordering systems MA WSU RTS RTS Service. Pac Service. Elite • Consolidated hardware and software Technical Support contracts (one to many) • Fewer legal reviews and signatures • Term and prepay discounts • Contracted through ISAT Base Agreements Schedules § General, HWMA, SWMA, BP Ts&Cs § Attach to ICA and MSA § Library card § Services, fees, term, payment options § Signature ICA Service. Elite MSA § Cross platform Etc. HW MA Acc. Adv. Support Line 3 © 2011 IBM Corporation

Support Delivery …same for Service. Pac & Supportline ü Integrated Support Centers ü Consistent delivery ibm. com Entitlement ü Customer focused ü Skilled technicians System x Support Center Microsoft Support Center Lnx/VMware Support Center Raleigh Austin Beaverton Product Engineering 4 © 2011 IBM Corporation

RTS (Remote Technical Support) Service. Pac ibm. com/services/us/index. wss/so/its/a 1000229 Part numbered support for easy attach to IBM hardware Highlights • • • Coverage Hours – 24 x 7 for critical problems (sev 1) Software support (including defects) – 9 x 5 for non-critical problems Voice support through 800 -IBM-SERV (opt 2) • Term : 1 or 3 years Unlimited calls and callers • System serial number entitled HW installation/configuration support Packaging and Supported Products for System x with Datacenter for Storage Devices • • § “for System x” products, plus § Microsoft Windows Server 2003 - Datacenter Edition • • System x, Blade Server Windows and Linux High Availability Clustering IBM Director Suite for System x with VMware for applications § § § § § “for System x” products, plus ESX Server, Virtual SMP VMotion Virtual. Center Mgmt Svr / Agent Virtual Infrastructure Node (VIN) 5 Microsoft SQL Server Microsoft Exchange Server Microsoft Small Bus. Svr. (Std) Microsoft Small Bus. Svr. (Prem) DS 300, DS 400 FASt. T 100 / DS 4100 FASt. T 200 FASt. T 600 / DS 4300 FASt. T 700 / DS 4400 FASt. T 900 / DS 4500 / DS 4800 Storage Manager Serve. RAID Manager © 2011 IBM Corporation

Sample RTS Customer Calls § Windows § IBM Director § Active Directory migration errors, when migrating from NT to Windows 2003 Enterprise Server. § How do I update my IBM Director levels using Software Distribution? § Why does Internet Explorer shut down when I click the refresh button? § Why is IBM Director causing 100% CPU utilization? § I applied a hotfix and now the server won't boot. § Why are my event action plans not sending SMTP messages? § Why are my cluster resources not coming online? § Unable to discover IBM Director Agent. § Linux § System x § How do I setup crashdumps in Linux? § System won’t boot after updating driver. § How do I install a Linux device driver? § System randomly reboots. § Do you have documentation on setting up NFS and the mount command? § How do I configure my Serve. RAID adapter? § Can you help with my installation of Linux? § Blade server does not turn off during Linux shutdown. § VMware § Storage § How can I install a virtual machine from an ISO image? § Unable to map LUNs to the host group § My ESX Server crashed. Can you help me diagnose the panic? 6 § File system corruption after upgrading FASt. T firmware. © 2011 IBM Corporation § When adding host ports, I receive a message that

System x/Windows/Linux/Storage RTS Portfolio Premium § Managed § Proactive Custom Technical Support ü Enhanced Technical Support ü ü Account Advocate ü ü Support Line ü Base ü § Reactive support ü RTS Service. Pac ü ü 7 Customized support Single Point of Contact for HW and SW calls (24 x 7) ü Optional add-on to Support Line Single Point of Contact for SW calls (9 x 5 or 24 x 7) ü Unlimited calls/callers One contract for many systems Multi-year contracts available ü Unlimited calls/callers Attached to system/device 12 or 36 months of support ü ü ü Initial on-site visit Proactive/preventative advice Enhanced response times Service Elite Enhanced response Priority Handling Proactive support Service Elite Escalation/problem management Account management Monthly status calls Service Elite 24 x 7 or 9 x 5 coverage (all severities) Support on OEM systems Support for MS/Lnx Applications Service Elite 24 x 7 coverage (severity 1) 9 x 5 coverage (all severities) Part numbered Service Pac © 2011 IBM Corporation

$ Impact of reduced IT availability due to a problem § Proactive Support – Keep Outages From Happening – Designed to reduce the number of events. Prevention is ALWAYS better than a cure – Each event avoided = $517, 000 savings for an average customer § Reactive Support – Help Get The Systems Back Into Production ASAP – Each hour that the impact of an event is shortened = $110, 000 savings for an average customer 8 © 2011 IBM Corporation

Increase your business through Maintenance and Technical Support Offerings from IBM Five things to remember that will increase your business. Attach 1. Attach support offerings with every product sale. Renew Upsell Base Warranty 2. Upsell to a higher level of service Extend Add 3. Add Software Support 4. Extend to 4 or 5 years of support © 2011 IBM Corporation

Build on the product sale through Maintenance and Technical Support Services Learn to attach service offerings to server sales, increase the value to your clients and your business - now and for the future. Upsell to Enhanced Technical Support Add Software Support* Upsell to a Warranty Service Upgrade Base Warranty Extend to 4 or 5 years Renew and protect what you have Attach Renew Upsell Base Warranty Extend * Support Line on Storage devices covers ‘how to’ and usage type questions / issues. Add © 2011 IBM Corporation

Cost of downtime Attach Renew The cost of a major outage per hour: § $6. 5 M for Brokerage in the Financial industry Upsell Base Warranty Extend Add § $2. 6 M for Credit Card sales in the Financial industry § $150 K for Pay-per-view in the Media industry § $113 K for Home Shopping TV in the Retail industry Source: Standish Group Research § $90 K for Catalogue sales in the Retail industry § $90 K for Airline reservations in the Transportation industry Outage prevention § Most directly addressed by proactive and premium services. § Resonates with clients, but lacks emotional power in the abstract – Uncover “unexpected outages” that had a significant impact. – Focus on understanding the client’s view of how many outages they can tolerate, and how much risk they are willing to run. – Understand the client’s “nightmare outage scenario. ” © 2011 IBM Corporation

IBM Maintenance & Technical Support Services Hardware & Software Maintenance Services © 2009 IBM Corporation

Base introduction and objectives When you will have completed this Module you know and understand the following: – Be able to question the client around their business needs – Determine the need for Maintenance Services – Describe the clients’ business value of using IBM Hardware Maintenance Services – Explain Maintenance and Warranty Service Upgrades – Identify the different contracting models – Explain Service. Pac and Service. Pac Essentials 13 © 2011 IBM Corporation

Businesses are under increasing pressure to reduce costs, improve service and manage risk. Rising cost pressures Higher service expectations Fewer resources 14 © 2011 IBM Corporation

Current Challenges Managing the complex Meeting external/internal IT environment requirements Operating older ECONOMY Beating the competition technology CLIENT Managing customer Reducing Costs and product data Maximizing ROI © 2011 IBM Corporation

Costs of downtime Availability in percent Annual downtime 99. 9999 30 seconds § Revenue loss 99. 999 5 minutes § Productivity loss 99. 99 52 minutes § Customer loss or dissatisfaction 99. 9 9 hours § Damaged reputation 99. 5 44 hours § Penalties 99 88 hours 95 18 days § Expense to restore systems “online” © 2011 IBM Corporation

So what do customers value from a hardware support provider? § Processes designed to optimize performance § Fast, efficient service to keep your systems up and running § Support aligned to your business infrastructure and needs § A history of integrity, expertise and long-term financial stability © 2011 IBM Corporation

Why IBM? Our service professionals § Leading breadth and depth of support expertise – More than 2, 800 service professionals – In-depth training and skills enhancement – Access to specialists and engineers § Client relationships built on trust Our support processes and tools § Integrated service delivery model § Virtually unparalleled support infrastructure – Proprietary knowledge bases – Leading-edge automation and tools – Patented parts management § Proactive support – Problem prevention – Minimize outages IBM: Your trusted partner © 2011 IBM Corporation

Services Integrated Support Infrastructure Remote Monitoring § Call home feature § Remote diagnostics System Monitor Call Home WW Parts Management System § Service Parts § § Supply Chain expertise Parts planning & procurement Logistics Reutilization Inventory Optimization Customers § Electronic access § Self service § Electronic Service Delivery Planning § Product support planning § Maintenance package effectiveness § Serviceability requirements § Client call history § Performance monitoring Integrated IBM Maintenance and Technical Support problem submission infrastructure Response Coordination § Service rep availability § Call assignments § Skill profiles § Entitlement IBM Service Rep § Wireless comm. § Service call reporting § Parts ordering § Tech info § Education Remote Support Centers § Problem determination § Technical action plans § Problem resolution 19 Worldwide Service Databases § Account information § Product information § Service applications § Problem history § Installation planning Users Entitlement Diagnostics Status Data DB DB Integration PTF's/ Technical Cust APAR's Pubs. Profile DB TSKBS Product Information Systems © 2011 IBM Corporation

Hardware Services: Warranty Service Upgrades Key Points • HW Warranty covers HW product defect support • Warranty upgrades allow client to enhance the original base warranty by upgrading service level response times • Warranty options can be purchased during hardware acquisition or any time during the initial manufacturer's warranty period Base Warranty Service Option Warranty Service Upgrade Options • Service Level (includes parts and labor) • Service Levels (includes parts and labor) • 1 or 3 year warranty terms • 4 -Hour response time • Same Day or Next Business Day response time • 24 x 7 x 2 Same Day Service • On-site Repair or Limited On-Site Repair (some parts are mandatory customer replacement parts) • 9 x 5 x 4 Same Day Service • 24 x 7 x 4 Same Day Service • On-site Repair (parts are replaced by IBM) • Response times are average objectives. Service levels available depend on the specific IBM product purchased © 2011 IBM Corporation

Hardware Services: Post Warranty Maintenance Service Options • 24 x 7 x 2, same day service Key Points • Every day, around the clock, including holidays • MTS Maintenance options extend the • Onsite response objective of 2 hours support received during the original warranty period • Typically used for business-critical systems, high-end machines • 24 x 7 x 4, same day service Most Popular • Every day, around the clock, including holidays • Onsite response objective of 4 hours • MTS Maintenance options can be purchased during hardware acquisition, during the initial manufacturer's warranty period or after warranty has expired. • Typically used for business-critical systems, high-end machines • 9 x 5 x 4, same day service • 8 a. m. to 5 p. m. in your local time zone, Monday through Friday (excluding holidays) • Onsite response objective of 4 hours • Typically used for low-end machines, for older technologies, or with less critical systems • 9 x 5, next business day • 8 a. m. to 5 p. m. in your local time zone, Monday through Friday (excluding holidays) • Onsite response objective is to respond onsite before 5 p. m. the next business day © 2011 IBM Corporation

Contractual Frameworks within Maintenance and Technical Support Service. Pac® Service. Elite® Main Offerings • Warranty Service Upgrade • All MTS offerings • Hardware Maintenance Services • Software Support Main Features • Flexible contract Main Features • Can include many different systems • Pre-packaged • Annuity or Pre-paid • For one system • Auto Renew can be enabled • Fixed, One-Time-Charge Main Characteristics • Most used by Business Partners • Simple • Reflects desired support for all products • Pre-defined • “Service in a box“ • Flexible payment types • Hardware aligned 22 • One contract allows for business control © 2011 IBM Corporation

Service. Pac Highlights Key highlights § Convenient § Simple § Standard Terms and Conditions § Standard ‘off the shelf’ range of offerings and prices Service Options include: § Up to 5 years of warranty and maintenance upgrade § Upgrades and/or extends the standard warranty service § 5 x 9 or 7 x 24 options § Combined Hardware and Software support offering 23 © 2011 IBM Corporation

Service. Pacs Available For: § Warranty Service Upgrades and Maintenance, with varying Service Levels to meet Customer Needs, for example: 7 days x 24 hours 5 days x 9 hours On-site Next Business Day § Software Support, for example: Microsoft Support VMware Support Linux Support IBM Director Support § Post Warranty (annual support extension for System x and Blade. Center) IBM Product Selector Tool - Web Version https: //www-304. ibm. com/sales/gss/download/spst/servicepac 24 © 2011 IBM Corporation

IBM Service. Pac for Essential Support for System x and Blade. Center Provides a single source for your IBM System x and IBM Blade. Center® hardware and software support needs Features Benefits § Single comprehensive service and price § Minimizes the lost productivity caused by system downtime with fast, convenient exchange and repair services § Unlimited calls and callers § Software and Hardware usage support § Hardware repair § Frees up internal IT resources to focus on driving core business § Supports mission-critical operations with roundthe-clock maintenance services § Controls maintenance expenses with fixed-price services § Ensures peak operation of existing equipment Why IBM? § Round-the-clock service every day, including IBM holidays § A packaged, part-numbered service that is easy to buy, sell and activate MTP 03067 -USEN-00 © 2011 IBM Corporation

Service. Elite Highlights Key highlights § Flexible terms & billing options § Easy to add or remove HW or SW support § Auto renew § Ability to add multiple services to a single contract Service Options include: § Pre-pay discount for multiple years § Incentives for longer term contracts, adding multiple services and prepaid billing § Allows machines to be added with coterminous contract end/renewal dates 26 © 2011 IBM Corporation

Service. Elite Available For: § All IBM and many OEM hardware platforms with standard Service Levels to meet Customer Needs, for example: 7 days x 24 hours 5 days x 9 hours On-site Next Business Day § Software Support, for example: Support Line Account Advocate (AA) Enhanced Technical Support (ETS) Custom Technical Support (CTS) § Both hardware and software support available in one integrated Service. Elite contract 27 © 2011 IBM Corporation

Maintenance and Technical Support Summary – available contract options for Service. Pac and Service. Elite Service. Pac Service. Elite Features • Simple packaging • Part number driven; line item on your hardware order • Fixed price & fixed term make budget Planning Easy • Prepay • Electronic signature and activation required for Entitlement • Flexible terms • Non-IBM equipment • Auto Renew • Customer number driven • Flexible billing options • Enhanced tech support • Easy to add/remove HW & SWS • Supports addition of multiple services on one contract Benefits • Saves time • Easy to quote/sell/order • Faster sales cycle • Simply purchase additional coverage via part number - No automatic renewals • Annuity streams drives more revenue • Improved value add & customer sat thru advanced notification of expirations • Improves account control and asset management Sold via • Part number • Contract Platform • System x, Blade. Center, Intellistation, Storage, Printers, Point of sale • System x, Blade. Center, Intellistation, Storage, Printers, OEM, Power, System p, System i, System z Offerings • Essential Support Warranty Service Upgrades • Essential Support Post-Warranty Maintenance • WSU - Warranty Service Upgrades • MA - Post Warranty Maintenance • Remote Technical Support • Installation/Implementation Services • WSU - Warranty Service Upgrades • MA - Post Warranty Maintenance • Support Line • Software maintenance ( i, p, z) • Enhanced Technical Support • CTS & ESO • Account Advocate • Microcode Support Services • Hard Drive Retention © 2011 IBM Corporation

Maintenance and Technical Support Summary– available contract options for Service. Pac and Service. Elite Service. Pac Service. Elite Terms • WSU - 3, 4, 5 Yrs • RTS - 1 & 3 YR • MA – 1 & 2 YR • Flexible Discount • Prepay applied in one-time charge • No credits or proration of unused years • Pre-pay discount for multiple years and tiered pricing • Provides incentives for longer term contracts, adding multiple services and prepaid billing • Allows machines to be added with coterminous contract end/renewal dates • Special bid eligible under unique situations (i. e. , TEP, HPDA) Service. Pac or Service. Elite? • Small opportunity; few machines • No management of assets • Customers that require part number format to purchase • Larger install base • Customers wanting one contract that could include multiple locations • Rollouts • 10+ Servers for software support = better pricing • Customer needs coterminous billing • Customer needs asset management Activation • Performed via web (details in order confirmation email): • http: //www. ibm. com/servicepac • IBM activates service upon receipt of signed contract and acceptance by IBM Entitlement • Provide machine type and serial number to 1 -800 IBM-SERV • Provide machine type and serial number or customer # to 1800 -IBM-SERV © 2011 IBM Corporation

Selecting customers for Hardware Maintenance Services Hardware Maintenance is a cross-industry offering. It applies to small customers as well as large enterprises. How do you identify customers for Hardware Maintenance: – Prime targets are clients purchasing new equipment – Clients that want the enhanced security of getting both IBM and non-IBM support from a company recognized a leader in the service industry – Client accounts with products still under warranty or no contract for on-going support – Existing Maintenance accounts – Clients who have had unsatisfactory experiences with their third-party maintainers 30 © 2011 IBM Corporation

Qualifying questions when working with clients Ask about: § Business objectives and availability targets § Help needed to maintain their hardware environment § Desire for a single, highly qualified maintenance service provider § Help in reducing the financial and customer satisfaction risks § Maintaining the IT-systems critical to achieving organizational growth § Needing a total maintenance solution, including both IBM and non-IBM hardware support 31 © 2011 IBM Corporation

Call to Action and Qualifying Questions § Qualifying questions are: – Is the workload of the machine mission critical for your business? – Are the basic or standard levels of support sufficient for your business needs? – Do you feel comfortable and are there skilled people available at your location that can maintain your service level objectives? – Would you be interested in a support contract backed by the one of the world’s premiere service companies with a long and sustained history for exceptional support? 32 © 2011 IBM Corporation

Business Partner Education Series “Using IBM Financing to Drive TSS Multi-year Sales" TEAMING WITH IGF Presented by Stephen Dunn Ingram Leasing Specialist: Bill Papaj 800 -456 -8000 X 65285, william. papaj@ingrammicro. com IBM Technical Support Services Channel Sales © 2009 IBM Corporation

TEAMING WITH IGF TO GROW YOUR BUSINESS Financing Multi-Year Prepaid Maintenance § Clients are universally challenged with operating cost reduction § Multi-year Price Protected Solution Financed with IGF § Restructure Existing Contracts § Recognition Up-Front for Multi-Year Prepay § Increase Revenue and Margin 3 -5 X © 2011 IBM Corporation

Value Statement Business Partner Value Statement § Upfront Revenue and Commissions Recognition of Entire Contract – – Increase revenue and margin by 4 x Protect Margin Avoid DSO (Days of Sales Outstanding) IGF Fees § Lock out competition for a longer period of time. – Protect account foothold by “sweeping” the location – Reduce renewal request and focus on hardware/solution sales § Increase Revenue by adding Enhanced Services – Account Advocate – Enhanced Technical Support (ETS) – Customer Technical Support (CTS) § Improve Client Satisfaction Client Value Statement § Reduce maintenance expense over the term of the contract – Take advantage of term and prepay discounts – Avoid 3 -5% in annual price increases due to price protection – Add new equipment to contract mid-term using pricing that was in effect at original contract start date § Reduce administrative and processing costs of managing yearly contract renewals – Spend more time on core business and priority projects – Save time by getting a single approval instead of one each year – Reduce the chance of costly lapse in coverage – Allow the flexibility of paying on a quarterly or annual billing frequency § Ability to add and delete machines from productive use – Original IGF invoices will be fixed. – Credit is provided by business partner and may be applied to IGF invoice – Debit may be financed conterminously © 2011 IBM Corporation

Deal Scenario Multi-year Prepaid Maintenance Financed with IBM Global Financing © 2011 IBM Corporation

Proposal Example Benefits of a 5 Year Prepaid Maintenance Contract with IBM Global Financing Easypay § Client’s long term maintenance expense will be significantly reduced – Cumulative cost savings over 5 years total $60, 000 – Prepaid IBM Maintenance contract billed Annually with IBM Global Financing Easypay § Client will Lock-in your current price longer while avoiding 3% to 5% annual price increases – Current renewal process does not lock-in pricing – New machines are added to the contract based on the contract start date § Fixed Invoice from IGF will simplify Client’s maintenance budgeting process – Annual payments billed in advance using IGF Easypay at 0% effective interest rate – Sign an IGF Services Software Financing Agreement § Client can easily add and delete machines through the life of the contract – Credit is provided by Business Partner using the current process – Debits may easily be financed on a co-terminous basis or may be paid in cash © 2011 IBM Corporation

Financial Summary of Prepaid Maintenance Solution © 2011 IBM Corporation

Changes in Requirements to Sell IBM Maintenance Services VAE requirements to sell maintenance on: § Power Systems, including IBM System i and IBM System p (except Models p 505 and p 510), have been replaced with Customer Value. § IBM Point of Sale (POS) have been modified and include enhanced sweep provisions. § IBM System z remains unchanged. § There is no VAE or Customer Value requirement on IBM System x or IBM System Storage, nor a prior hardware sale requirement. § There is no VAE or Customer Value requirement on any IBM Service. Pac, nor a prior hardware sale requirement. 10/28/2020 39 © 2011 IBM Corporation

Additional Sales Opportunity Through “Sweep” Business Partners may sweep uncovered With qualifying hardware (HW) sales in Group: GROUP hardware in the Customer Establishment Business Partners may sweep uncovered hardware across the Customer Enterprise in Group(s): 1 2 §IBM System z §IBM Power Systems (including 1 IBM System i and IBM System p, but excluding Models p 505 and p 510) §IBM System p (Models p 505 and 3 2 and p 510 only) and 4 4 §IBM Blade. Centers 3 §IBM Point of Sale (POS) 3 44 §IBM System x * §IBM System Storage * 4 * Maintenance may be sold independent of a prior hardware sale 10/28/2020 2 40 3 and 4 4 © 2011 IBM Corporation