IBM ThinkThursday Sales Enablement Series IBM Software ThinkThursday

  • Slides: 40
Download presentation
IBM Think!Thursday Sales Enablement Series IBM Software Think!Thursday Processor Value Unit Licensing Kickoff July

IBM Think!Thursday Sales Enablement Series IBM Software Think!Thursday Processor Value Unit Licensing Kickoff July 27 th, 2006 © 2006 IBM Corporation

IBM Software www. ibm. com/software IBM Think!Thursday Web Conference Audio Details Austria 0800 -295236

IBM Software www. ibm. com/software IBM Think!Thursday Web Conference Audio Details Austria 0800 -295236 Mexico Belgium 0800 -76725 Netherlands 001 -8004997921 0800 -0230904 Brazil 0800 -891 -0273 Norway 800 -15505 Canada 1 -800 -892 -6073 Spain 900 -941993 Colombia 01 -800 -9 -154543 Sweden 020 -79 -6640 Finland 0 -800 -1 -119655 Switzerland 0800 -89 -6978 France 0800 -914670 United Kingdom/BT 08 -000289769 Germany 0800 -1007415 United States Ireland 1 -800 -55 -6080 Uruguay Italy 800 -873588 Luxembourg 08002 -5211 § Dial-in passcode: THINK Venezuela * Toll § New Option: Dial-Out for countries not having toll-free availability – Partner calls in using the Toll-number and asks operator to ‘dial-out’ – Partners should plan dialing in 5 -10 minutes early when using this feature 1 -800 -892 -6073 000 -413 -598 -2551 0 -800 -1 -00 -2525 1 -719 -867 -0355

Software Group IBM Virtual Innovation Center Think!Thursday Details § Presentation and Audio replays available

Software Group IBM Virtual Innovation Center Think!Thursday Details § Presentation and Audio replays available from the IBM Virtual Innovation Center (http: //www. ibm. com/partnerworld/vic) § VIC Think!Thursday access instructions: – Must add Think!Thursday to your VIC profile – After logging in, select Product selections from the left hand navigation bar – Select “Add a product” – Select the Software Brand “Think!Thursday sales series” of your choice and click Submit – Refresh by clicking on the VIC link at the top of the left hand navigator. – To access Think!Thursday from the VIC – After logging in, select “Selling Resources” from the left-hand navigation bar – Select the Software Brand “Think!Thursday sales series” of your choice from the Sales & marketing section 3 © 2006 IBM Corporation

Software Group IBM Think!Thursday Program Information § Think!Thursday Presentations and Audio Replays on the

Software Group IBM Think!Thursday Program Information § Think!Thursday Presentations and Audio Replays on the VIC – Overview Tab / Upcoming Events by Software Brand – Find upcoming sales series details and presentations prior to the event – Overview Tab / Current Replays subsection by Software Brand – Find current month’s sales series previously held including presentations and audio replays – Resides here for 1 week after live call, then located under Education Tab. – Education Tab by Software Brand – Find archive of all prior IBM Software brand sales series presentations and audio replays § IBM Think!Thursday schedule of events – IBM Virtual Innovation Center (Upcoming Events) – Partner. World Marketing and Enablement calendar § Think!Thursday Program Feedback – Program Managers: – Alex Kaplin ([email protected] ibm. com) – Amy Malkasian ([email protected] ibm. com) – Mike Ryan ([email protected] ibm. com) 4 © 2006 IBM Corporation

IBM Software Processor Value Unit Licensing Executive Kickoff § Melinda Matthews, IBM Software Group,

IBM Software Processor Value Unit Licensing Executive Kickoff § Melinda Matthews, IBM Software Group, Worldwide Sales Director, Channels 5

® IBM Software Processor Value Unit Licensing for Middleware Evolving the Structure to Provide

® IBM Software Processor Value Unit Licensing for Middleware Evolving the Structure to Provide a Foundation for the Future Processor Value Unit Overview Education July 27, 2006 © 2006 IBM Corporation

IBM Software General Education Agenda 4 What is this Announcement 4 Software Licensing Background

IBM Software General Education Agenda 4 What is this Announcement 4 Software Licensing Background 4 Changing Processor Technology 4 Software Vendor Licensing Response 4 Processor Value Unit Licensing 4 Summary 7

IBM Software What is this Announcement? § A licensing structure and strategy for per

IBM Software What is this Announcement? § A licensing structure and strategy for per processor priced middleware in Passport Advantage 4 Simple conversion from current licensing 4 Effectively software prices do not change for existing processors 4 Announced and GA’d on July 25, 2006 8

IBM Software Per Processor Software Licensing 4 Historically, one license entitlement for each processor

IBM Software Per Processor Software Licensing 4 Historically, one license entitlement for each processor core in the server 4 A significant number of SWG middleware products use per processor licensing Server Core 4 Entitlements Required SWG Revenue on x 86 vs RISC Platforms Revenue is split fairly evenly between x 86 and RISC Intel Xeon AMD Opteron IBM Power Sun Sparc HP PA RISC HP Itanium 4 Double digit growth on x 86 9

IBM Software What Exactly Is the “Processor” Dual-core Chip Single-core Chip Processor Core 1

IBM Software What Exactly Is the “Processor” Dual-core Chip Single-core Chip Processor Core 1 Processor Cores 1 2 Chip 1 2 1 2 Socket 1 4 IBM defines processor = core However, Not All Processor Cores Are Created Equal 1 Core 1 Core Same Workload 1 Core The number of processor cores required for a given workload varies by processor technology 10

IBM Software Historically, Fewer Processor Cores are Needed over Time Year 1 4 Proc

IBM Software Historically, Fewer Processor Cores are Needed over Time Year 1 4 Proc Faster processor cores are capable of running more work 1 Core Year 3 2 Proc Year 5 1 Core 1 Proc 1 Core 1 Core Constant Workload Core Performance Processor Core Disparity Will Increase One Processor Core y t e. C v ro p m S e r o eg t a r I Multi-core Strategy Time Core Disparity 4 IBM Power processor core performance increasing 4 Intel / AMD processor core performance is expected to be flat 11

IBM Software Vendors Are Differentiating by Processor Type x 86 Server X 86 42

IBM Software Vendors Are Differentiating by Processor Type x 86 Server X 86 42 Dual-core Chips 44 Processor Cores 2 Entitlements Required On x 86 dual-core chips, 0. 50 license entitlements are required per processor (IBM per processor policy for x 86 dual-core is “ 1 entitlement for 2 cores”) This Has Added Complexity To Software Licensing. . . IBM has three different middleware per processor core license entitlement levels today (Result: fractional licenses) * Microsoft per core entitlements are derived from their per chip licensing. 12

IBM Software . . . And gets even more complex over time Future Server

IBM Software . . . And gets even more complex over time Future Server XXXXXXXX 3 2 4 1 X 7 6 8 X 5 X 11 10 12 X 9 X 15 14 16 X 13 41 Chip 416 Cores ? ? Entitlements Required “. . . [this Licensing approach is] tactical, not strategic or visionary… this model will not scale to address 16 core environments that will be commonplace…by 2010” (Source: Gartner Group, “Oracle Announces New Multicore Pricing and Licensing” 2/06) And Customers Want Licensing Granularity Demand ability to license to the processor core – or below RISC Server Appl DB 2 42 Chips 44 Cores 1 DB 2 License Required 13

IBM Software Customer Focus Should be on the Total Effective Price 4 License requirements

IBM Software Customer Focus Should be on the Total Effective Price 4 License requirements are only part of the effective price 4 Price per Processor = License quantity x Product price per License * Suggested Retail Price 14

IBM Software Marketplace Needs a New Licensing Structure Objectives of Processor Value Unit Licensing

IBM Software Marketplace Needs a New Licensing Structure Objectives of Processor Value Unit Licensing 4 Industry licensing leadership with sustainable structure 4 Balance simplicity with granularity 4 Simple structure and conversion 4 No price changes for software on existing processors 4 Maintain license scalability and transferability 4 Minimum change, keep new license & maintenance renewal structure 4 More granular and avoid fractional core licensing 4 More flexible pricing to address disparate core performance 4 Particularly for multi-core chips 4 Enable sub-capacity processor licensing to the core 4 Continue to deliver software price performance 4 Clarity in licensing structure 15

IBM Software Introducing Processor Value Unit Licensing § Middleware will be licensed in processor

IBM Software Introducing Processor Value Unit Licensing § Middleware will be licensed in processor value units 4 Each processor core assigned a specific number of processor value units § Acquire the appropriate number of value units for each processor core § Each middleware program has a unique price per value unit § Processor value units are transferable among systems by product within the enterprise * Power PC 970 and Power 5 QCM dual-core chips require 50 Value Units ** T 1 entitlements per processor adjusted with the elimination of fractional licenses. 16

IBM Software Processor Value Unit Licensing has simple conversion…… Current per Processor Entitlements x

IBM Software Processor Value Unit Licensing has simple conversion…… Current per Processor Entitlements x 100 = New Value Unit Entitlements …. . And Avoids Fractions Server T 1 T 1 41 Octi-core Chip 48 processor cores 30 x 8 = 240 value units With the new structure, customers will acquire the required number of processor value units for each processor core 17

IBM Software Additionally, Simple Migration of Existing Entitlements § Existing Maintenance Processor Entitlements converted

IBM Software Additionally, Simple Migration of Existing Entitlements § Existing Maintenance Processor Entitlements converted to Processor Value Unit Entitlements 4 Current Per Processor Entitlements x 100 = Processor Value Units 4 Same conversion factor for all processor types * 18

IBM Software With No Price Changes for our Middleware for Existing Processors* § Consistent

IBM Software With No Price Changes for our Middleware for Existing Processors* § Consistent conversion factor to create product prices 4 Both New Licenses and Maintenance Renewals Current per Processor Price /100 = New Processor Value Unit Price § Customer price = # entitlements X price per entitlement. . . UNCHANGED!* Web. Sphere Application Server Network Deployment on RISC Dualcore (2 cores) Price per Entitlement Number of Entitlements Extende d Price Per Processor $15, 000 2 $30, 000 Conversion factor Divide by 100 Multiply by 100 * There may be slight changes due to rounding with the implementation of processor value units in some countries Processor Value Unit $150 200 $30, 000 19

IBM Software Processor Value Units Provide Flexibility Through Granularity § Value Unit Licensing at

IBM Software Processor Value Units Provide Flexibility Through Granularity § Value Unit Licensing at the processor core level 4 Capability to enable sub-capacity licensing 4 Granularity to address changing technology § Flexibility to create new processor value unit levels 4 Deliver software price performance improvements ce rman o f r e P Price Processor Core Performance # of Pr ocesso r Value Units Software price performance improvements will range over time depending upon a number of factors including market conditions Processor core performance levels will vary between chip vendors § Processor Value Units relative to core performance Time 20

IBM Software Increased Clarity as New Processors Will Be Assigned Processor Value Units §

IBM Software Increased Clarity as New Processors Will Be Assigned Processor Value Units § Deliver software price performance improvement § Over time, new processors will be differentiated based on relative performance, among other factors § Overall framework balances precision and simplicity 21

IBM Software Quote and Order Tools § Processor “Value Unit Calculator” is available 4

IBM Software Quote and Order Tools § Processor “Value Unit Calculator” is available 4 Contains a “table” which indicates number of processor value units required for each processor core of all available vendor chips 4 Calculates number of processor value units required for every hardware environment 4 Used to calculate price (number of value units X price per value unit) § “Value Unit Calculator” will be inserted in SWG supported tools 4 Distributed Software Price Book 4 BP e. Order 4 PA Online § Value Unit Table is downloadable from Lotus Notes Pricing Data Base for use with: 4 User developed tools 4 VADS who do not use BP e. Order 22

IBM Software New Tools to Determine Processor Value Unit License Quantities § Processor Value

IBM Software New Tools to Determine Processor Value Unit License Quantities § Processor Value Unit Calculator Helps Determine License Quantities § Passport Advantage Online contains a link to the processor Value Unit Calculator 4 Calculates number of processor value units required for every hardware environment 4 Used to calculate price (number of value units X price per value unit) 23

IBM Software Benefits Of The New Structure Customer § Provides granularity balanced with simplicity

IBM Software Benefits Of The New Structure Customer § Provides granularity balanced with simplicity 4 Simple structure with easy conversion § Maintains license scalability and transferability 4 Enables sub-capacity processor licensing to the core 4 More flexible pricing to address disparate core performance § Delivers clarity and predictability 4 No price changes for software on existing processors 4 Continue to deliver software price performance improvements 4 Over time, new processors will be differentiated based on relative performance § Sustainable licensing structure 4 Addresses key marketplace needs with flexible structure Sales § Provides an opportunity to capture additional revenue as customers migrate licenses to more powerful processors 4 Software price performance improvements is managed 4 Leverage flexibility and granularity to sell value with less discounting 24

IBM Software Processor Value Unit Part Numbers and Pricing Implementation 25

IBM Software Processor Value Unit Part Numbers and Pricing Implementation 25

IBM Software Processor Value Unit Part Numbers and Pricing Implementation 4 Established Processor Value

IBM Software Processor Value Unit Part Numbers and Pricing Implementation 4 Established Processor Value Unit Part Numbers 4 Replacing 1300+ Per Processor Part Numbers 4 Each Per Processor Part Number is replaced by a Processor Value Unit Part Number 4 License plus 12 months Maintenance, Maintenance Renewal, etc. 4 Price and Passport Advantage Point Rounding 4 U. S. Dollars and Passport Advantage points were rounded to nearest two decimals 4 Some prices may be impacted +/- 1% by currency or country rounding 4 Passport Advantage point rounding should not impact customer band level 4 Created packs of 10 Processor Value Units as the minimum order quantity for programs where: 4 Per Processor License Plus Maintenance Price was less than US$1, 250. 00 4 Maintenance was less than US$250 4 Simplicity was needed for billing and administration 4 For example, US$100/100 = US$1. 00 and when discounted would be below $1. 00 26

IBM Software New Part Numbers, but No change to Part Number Structure 4 Part

IBM Software New Part Numbers, but No change to Part Number Structure 4 Part number structure unchanged 4 License + 12 months of Maintenance 4 Maintenance Renewal 4 Maintenance Reinstatement Part Number Structure Unchanged WAS ND Processor WAS ND Value Units Note: Example above assumes processor value unit assignment = 100 (eg. single-core chip type) 27

IBM Software Next Steps Processor Value Unit Licensing sales kit (includes): § Scripted customer

IBM Software Next Steps Processor Value Unit Licensing sales kit (includes): § Scripted customer presentation 4 English audio of this presentation (mp 3 file) § Announcement letters § FAQs § Processor Value Unit table § Key terminology § Sales scenarios § Replacement part number file § Customer deliverables 4 Overview presentation (no script) § English audio of this presentation (mp 3 file) 4 Brochure 4 FAQ 28

IBM Software Reference Material § See the Processor Value Unit Licensing Announcement for Passport

IBM Software Reference Material § See the Processor Value Unit Licensing Announcement for Passport Advantage Middleware effective July 25, 2006 for more details. This, and other education material, will be available on the Passport Advantage web site § Questions should be directed through the normal software support structure. If they are unable to answer a question, they will have access to the Processor Value Unit Licensing project office. 29

® IBM Software Group IBM Business Partner Channel Sales Enablement Processor Value Unit Licensing

® IBM Software Group IBM Business Partner Channel Sales Enablement Processor Value Unit Licensing Michael Ryan, IBM Software Group Business Partner Enablement [email protected] ibm. com © 2006 IBM Corporation

IBM Software URL: http: //news. yahoo. com/s/gizmodo/20060710/tc_gizmodo/intelplans 32 coreprocessorby 20092010; _ylt=Aqw 8 rgw 0

IBM Software URL: http: //news. yahoo. com/s/gizmodo/20060710/tc_gizmodo/intelplans 32 coreprocessorby 20092010; _ylt=Aqw 8 rgw 0 RBX. icu 3 VMJVZi Ejt. BAF; _ylu=X 3 o. DMTA 0 c. DJl. Ymhv. BHNl. Yw. M 31

IBM Software IBM Business Partner Sales Enablement Announce July 25 IBM Think!Thursday Sales Series

IBM Software IBM Business Partner Sales Enablement Announce July 25 IBM Think!Thursday Sales Series Kickoff July 27 th July IBM Business Partner Processor Value Unit Sales Skills Training Aug 2 nd August October November Legacy Passport Advantage P/N overlap and availability 32

IBM Software Processor Value Unit Sales Skills Training • Sales skills enablement • Processor

IBM Software Processor Value Unit Sales Skills Training • Sales skills enablement • Processor Value Unit technology education • Sales scenarios • Sales tools • Value Unit calculator • Conference call schedule • AP Geography: • Date: August 2 nd, 2006 at 12: 00 PM [(GMT+08: 00) Kuala Lumpur, Singapore] • Conference call details link • Americas and Europe: • Date: August 2 nd, 2006 at 11: 00 AM [(GMT-05: 00) Eastern Time (US & Canada)] • Conference call details link 33

IBM Software Sales Deliverables § Processor Value Unit Resources for Business Partners 4 Announcement

IBM Software Sales Deliverables § Processor Value Unit Resources for Business Partners 4 Announcement Letter 4 July 27 th Processor Value Unit Licensing for Middleware Kickoff § audio replay available 3 days after event 4 August 2 nd Processor Value Unit Sales Skills Training § audio replay available 3 days after event 4 Processor Value Unit License Structure Overview 4 Sales Scenarios 4 FAQs 4 Customer Resources § Processor Value Unit Calculator § Passport Advantage Online for Resellers 4 IBM ID and password required 34

IBM Software Call to Action § Attend the July 27 th IBM Think!Thursday Processor

IBM Software Call to Action § Attend the July 27 th IBM Think!Thursday Processor Value Unit Licensing for Middleware Kickoff § Attend the August 2 nd IBM Business Partner Processor Value Unit Sales Skills Training conference call § Review the software sales deliverables available at the Processor Value Unit Resources for Business Partners website § Contact your IBM Software Distributor , Techline, or IBM Business Partner sales representative for additional details and questions 35

IBM Software www. ibm. com/software Polling Questions § The content for this web conference

IBM Software www. ibm. com/software Polling Questions § The content for this web conference was at the appropriate level. • Excellent (*1) Good (*2) Fair (*3) Poor (*4) § Overall web conference rating • Excellent (*1) Good (*2)

IBM Software www. ibm. com/software Press *1 Please be sure your phone’s mute function

IBM Software www. ibm. com/software Press *1 Please be sure your phone’s mute function is turned off when asking your questions!

IBM Software www. ibm. com/software Hindi Korean Traditional Chinese Gracias Russian Spanish Thank You

IBM Software www. ibm. com/software Hindi Korean Traditional Chinese Gracias Russian Spanish Thank You Obrigado English Arabic Brazilian Portuguese Danke German Grazie Italian Merci Simplified Chinese French Tamil Japanese 38 Thai

IBM Software www. ibm. com/software IBM Think!Thursday Schedule IBM Software Think!Thursday Aug 24 th

IBM Software www. ibm. com/software IBM Think!Thursday Schedule IBM Software Think!Thursday Aug 24 th (11 AM ET) Title To Be Announced Date Title Aug 3 rd IBM Tivoli Think!Thursday (11 AM ET) Tivoli Mid-market Solutions: Update on the Express (SMB) Portfolio IBM Web. Sphere Think!Thursday (1 PM ET) The Benefits, the Value and Achieving SOA Certification Status Aug 10 th IBM Rational Think!Thursday (9 AM ET) Automated Software Quality IBM Information Management Think!Thursday (11 AM ET) Title To Be Announced Aug 17 th IBM Lotus Think!Thursday (11 AM ET) Web Content Management 39

IBM Software www. ibm. com/software IBM Software Think!Thursday replays available on the VIC (Virtual

IBM Software www. ibm. com/software IBM Software Think!Thursday replays available on the VIC (Virtual Innovation Center) June 22 nd Autonomic Problem Determination May 25 th Passport Advantage Changes in the Distribution of Renewal Quotes April 27 th IBM’s Software Acquisition Strategy March 23 rd IBM Software Group’s Business Partner Software Value Incentive Program Feb 23 rd How & When to Access Pre- and Post-Sales Business Partner Support Jan 26 th 2006 Business Partner Channel Strategy