® © 2006 ibm corporation ibm software group processor value unit licensing for middleware sales...
TRANSCRIPT
®
© 2006 IBM Corporation
IBM Software Group
Processor Value Unit Licensing for Middleware Sales Skills Training for IBM Business Partners
Michael Ryan, IBM Software Group Business Partner Enablement
2
IBM Business Partner Processor Value Unit Sales Skills Training
Today’s Agenda
Customer Experience
Quote Tools
Sales Scenarios
Question and Answer
3
IBM Business Partner Processor Value Unit Sales Skills Training
IBM Business Partner Sales Enablement
AnnounceJuly 25
July August
IBM Think!Thursday Sales Series Kickoff
July 27th
IBM Business Partner Processor Value Unit Sales Skills Training
Aug 2nd
Legacy Passport Advantage P/N overlap and availability
NovemberOctober
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IBM Business Partner Processor Value Unit Sales Skills Training
Software Sales Deliverables and Resources
Processor Value Unit Resources for Business Partners (NOTE: IBM ID and password not required) Announcement Letter July 27th Processor Value Unit Licensing for Middleware Kickoff
audio replay available 3 days after event August 2nd Processor Value Unit Sales Skills Training
audio replay available 3 days after event Processor Value Unit License Structure Overview Sales Scenarios FAQs Customer Resources
Processor Value Unit Calculator IBM ID and password required
Passport Advantage Online for Resellers IBM ID and password registration site
®
IBM Software
©2006 IBM Corporation
Processor Value Unit Licensing for Middleware
Evolving The Structure To Provide a Foundation For The Future
Processor Value Unit Customer Experience Education
Processor Value Unit Customer Experience
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Agenda
Review of Processor Value Unit Licensing
Part number transition
Passport Advantage OnlineViewing entitlements
Value Unit Calculator
Maintenance Renewals
Processor Value Unit Customer Experience
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Introducing Processor Value Unit Licensing
Middleware will be licensed in processor value unitsEach 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** T1 entitlements per processor adjusted with the elimination of fractional licenses.
New StructureValue Unit
EntitlementsChip Type Per Processor
Single-core (All Platforms) 100
RISC Dual-core * 100
x86 Dual-core 50
RISC Sun T1 Octi-core ** 30
Processor Value Unit Customer Experience
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Processor Value Unit Licensing has Simple Conversion
Current per Processor Entitlements x 100
= New Processor Value Unit Entitlements
* Power PC 970 and Power 5 QCM dual-core chips require 50 Value Units** T1 entitlements per processor adjusted with the elimination of fractional licenses.
New Structure"Old" Structure Value Unit
Entitlements Conversion EntitlementsChip Type Per Processor Factor Per Processor
Single-core (All Chips) 1.00 x 100 100
RISC Dual-core 1.00 x 100 100
x86 Dual-core 0.50 x 100 50
RISC Sun T1 Octi-core 0.30 x 100 30
*
**
Processor Value Unit Customer Experience
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With No Price Changes for our Middleware for Existing Processors* Consistent conversion factor to create product prices
Both New Licenses and Maintenance Renewals
Current per Processor Price /100
= New Processor Value Unit Price
Customer price = # entitlements X price per entitlement . . . UNCHANGED!*
WebSphere Application Server Network Deployment on RISC Dual-core (2 cores)
Price per Entitlement
Number of Entitlements
Extended Price
Per Processor $15,000 2 $30,000
Conversion factor Divide by 100 Multiply by 100
Processor Value Unit $150 200 $30,000
* There may be slight changes due to rounding with the implementation of processor value units in some countries
Processor Value Unit Customer Experience
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Benefits Of The Processor Value Unit Structure
Creates simple licensing structure Avoids fractional licensing for multi-core chips
Provides flexibility and granularity Enables sub-capacity licensing
Positions for future
Continue to deliver software price performance improvements
Provides clarity to middleware licensing Over time, new processors will be differentiated based on relative
performance
No price changes for middleware on existing processors
Processor Value Unit Customer Experience
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New Orders will be in Processor Value Units
IBM will replace all per processor part numbers with per value unit part numbers All new orders will be in processor value units
New proofs of entitlement will be in processor value units
Maintenance renewals will be in processor value units
Existing proofs of entitlement will remain per processor
All per processor maintenance entitlements will be converted to processor value unit entitlements on July 25, 2006
Old part numbers are valid until November 10, 2006
Quotes generated prior to 7/25/06 will still be valid
New quotes will be in processor value units
Processor Value Unit Customer Experience
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Quotes Issued Before July 25th
During the transition period, per processor part numbers still process through Nov. 10, 2006
Quotes with per processor parts converted to an order prior to Nov. 10 will process Order History will reflect per processor part number
Proofs of Entitlement will reflect processor value units
Outstanding Quotes or Open Line Items after Nov. 10 Will need to be updated to processor value unit part numbers
Recommendation Close all outstanding quotes by October 31st
Issue all new quotes in processor value units
Processor Value Unit Customer Experience
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Processor Value Unit Part Numbers and Pricing Implementation
Established processor value unit part numbers Replacing 1300+ per processor part numbersEach per processor part number is replaced by a processor value unit part number
License plus 12 months maintenance, maintenance renewal, etc.
Price and Passport Advantage Point Rounding U.S. Dollars and Passport Advantage points were rounded to nearest two decimals Some prices may be impacted +/- 1% by currency or country roundingPassport Advantage point rounding should not impact customer band level
Created packs of 10 processor value units as the minimum order quantity for programs where:Per processor license plus maintenance price was less than US$1,250.00 Maintenance was less than US$250Simplicity was needed for billing and administration
For example, US$100/100 = US$1.00 and when discounted would be below $1.00
Processor Value Unit Customer Experience
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10 Processor Value Unit Minimum Order Quantity Example
Per Processor Structure Part Number Description
Processor Value Unit Part Number Description
Implementation of 10 processor value unit part number
Per Processor Part Numbers PA Points SRP
D53RFLL IBM TIVOLI SECURITY COMPLIANCE MANAGER MGD PROC LIC+SW MAINT 12 MO 1.70 $376.00
E019RLL IBM TIVOLI SECURITY COMPLIANCE MANAGER MGD PROC ANNUAL SW MAINT RNWL 0.30 $75.30
D53RGLL IBM TIVOLI SECURITY COMPLIANCE MANAGER MGD PROC SW MAINT REINSTATE 12 MO 1.00 $226.00
Processor Value Unit Part Numbers PA Points SRP
D56AWLL IBM TIVOLI SECURITY COMPLIANCE MGR 10 VALUE UNITS LIC+SW MAINT 12 MO 0.17 $37.60
E028JLL IBM TIVOLI SECURITY COMPLIANCE MGR 10 VALUE UNITS ANNUAL SW MAINT RNWL 0.03 $7.53
D56AXLL IBM TIVOLI SECURITY COMPLIANCE MGR 10 VALUE UNITS SW MAINT REINSTATE 12 MO 0.10 $22.60
Processor Value Unit Customer Experience
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Old New No
Part License Price Per Part License Price Per Price
Part Number Type Number Requirement Processor Number Requirement Value Unit Change
Lic + Maint. 12 months D5ALTLL 1.00 p/core $15,000 D55WJLL 100 p/core $150.00 $15,000
Maint. Renewal E1ALVLL 1.00 p/core $3,000 E025SLL 100 p/core $30.00 $3,000
Maint. Reinstatement D5ALWLL 1.00 p/core $9,000 D55WKLL 100 p/core $90.00 $9,000
New Part Numbers, but No change to Part Number Structure
WAS ND Processor
Part number structure unchangedLicense + 12 months of Maintenance Maintenance RenewalMaintenance Reinstatement
Part Number Structure Unchanged
Note: Example above assumes processor value unit assignment = 100 (eg. single-core chip type)
WAS ND Value Units
Processor Value Unit Customer Experience
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Passport Advantage Online
• Customer secure web tool
• Access point for:
• Value Unit Calculator• Entitlement Records• Maintenance Renewal notifications• Other features not associated with processor value units
• Web address
Ibm.com/software/passportadvantage- Choose Passport Advantage Online- Choose For customers
Processor Value Unit Customer Experience
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PA Online – Value Unit Calculator
Processor Value Unit Customer Experience
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Processor “Value Unit Calculator” Guided Mode selected
Question: On which server vendor are you deploying your software?
Choices: IBM, Dell, Fujitsu, HP, Sun, Other
Action: Choose IBM
Question: On which processor architecture are you deploying your software?
Choices: x86, RISC, IA-64 (Itanium), Other
Action: Choose x86
Processor Value Unit Customer Experience
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beginning.
Expert Mode Selected:Provides 3 optional selection paths to choose from to identify processors
1. Processor Architecture2. Server Vendor3. Processor Vendor
Processor “Value Unit Calculator” Expert Mode Selected
After picking Expert mode, Pick one Selection Path
1 2 3
Processor Value Unit Customer Experience
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PA Online – Reporting of Entitlements
Processor Value Unit Customer Experience
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PA Online – Reporting of Entitlements
Processor Value Unit Customer Experience
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PA Online – Reporting of Entitlements
Processor Value Unit Customer Experience
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PA Online – Reporting of Entitlements
The part number
description will change to value units *
The quantity field will be
multiplied by 100 and will be reflected in
processor value units
* For products using the per processor metric only
Processor Value Unit Customer Experience
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PA Online – Maintenance Renewals
Processor Value Unit Customer Experience
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Thank you!