© 2014 ibm corporation cloud & smarter infrastructure changing the game with c&si saas...

© 2014 IBM Corporation

Cloud & Smarter Infrastructure

Changing the Game with C&SI SaaS Solutions for Business Partners

© 2013 IBM Corporation2 IBM ConfidentialIBM Confidential

SaaS Market Overview

C&SI SaaS Offerings

SaaS Channel Business Models

Agenda


What is Software as a Service (SaaS)?What is Software as a Service (SaaS)?

• Software as a Service (SaaS) is a software delivery model in which software and associated data are centrally hosted in the cloud. SaaS is typically accessed via a web browser. Payment for the service is through a subscription model.

• You are using SaaS today if you access applications like Facebook, Twitter, or gmail.

See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing


……and the decision making process is changingand the decision making process is changing

Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner

By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments 48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research 60% of the IT purchase process decision is completed before the prospect engages a vendor

*Source: Google & Compete B2B Customer Study, June 2012

UsersUsers

RecommendersRecommenders

InfluencersInfluencers

Economic Buyers

Economic Buyers

Decision MakersDecision Makers

Decision Makers

Practitioners

CIOCTOsIT ManagersIT Operations ManagerData Center Manager

DevelopersTechnical LeadersSystem AdministratorsIT OperationsData Scientists


How can SaaS help?How can SaaS help?

• Improved TCO due to lower infrastructure costs (Capex), low labor costs (Opex)

• Flexible subscription pricing• Minimal upfront investment• Continuous delivery of new capabilities allows rapid innovation

and access to immediate code fixes• Lower risk with try and buy approach• Accelerates evaluations and decision making


What is the Total Cost of Ownership? What is the Total Cost of Ownership?

30 VMs30 VMs

300 VMs300 VMs 1650 VMs1650 VMs

Software Subscription or License costs• Software Subscription or License costs• Support and Maintenance

Infrastructure Costs• Hardware• Storage

Management and Operations• Deploy App• Support Training• App Tuning• App Support• Software Maintenance (e.g upgrades)

Software Subscription or License costs• Software Subscription or License costs• Support and Maintenance

Infrastructure Costs• Hardware• Storage

Management and Operations• Deploy App• Support Training• App Tuning• App Support• Software Maintenance (e.g upgrades)

On-premise vs. Saas


Why are Customers buying SaaS?Why are Customers buying SaaS?

Customers that want to shift from Capital Expenses (On-premise) to

Operating Expenses (SaaS) to fund software purchases

18%

Customers who want to quickly gain access to new capabilities

that they cannot obtain by purchasing existing software

products and services

50%

Customers that wish to replace existing licensed and/or client/server applicationswith SaaS applications

15%

Other17%

*Source: Gartner, Softletter, Forrester, GigaOM



C&SI SaaS Offerings


Agenda


IBM Service Exchange – Digital PresenceIBM Service Exchange – Digital Presence

• Readily available• Continuous delivered• Scaling to needs• Immediate Feedback

SupportLearn Explore Try Use / Buy Extend


Why is this important to YOU?Why is this important to YOU?

Service Engage faster time to value for your clientsPOC in days not weeks / months with 30 day evalsEarn quick wins, close more often, earn more moneyExpand your footprint in your accounts using a land and expand strategyDisplace competitors, on flexibility, broad capabilities, lack of comparable offer

Service engage puts you and your clients in the driver’s

seat.

Take a drive today!


IBM Application Performance Management (SaaS) increases your end user satisfaction with complete visibility and control of your application environment.

Links – Service Engage, IBM, PartnerWorldLinks – Service Engage, IBM, PartnerWorld

Pain points How this offering helps User scenarios Typical buyers

• Increasing maintenance costs• No end-to-end view of app

health • Missed SLAs

• Find the root cause of application problems 90% faster

• Improve the availability of critical applications by 60-90% with integrated analytics

• Reduce the length of outages and slowdowns by 50%

• Quickly identify and resolve a bottleneck

• Ensure SLA and KPI compliance• Manage all types of workloads• Prevent outages

• IT Ops Managers - reduce infrastructure costs

• LOB Owner - accelerate delivery of new services

• App Developers - monitor their apps

List Price Key Competitors Questions to ask

• APM Entry: $25/month per Average Managed Virtual Server (aMVS)

• APM Diagnostics: $120/ month per Average Managed Virtual Server (aMVS)

• New Relic - Customer Analytics performance benchmarks, plug and play in API marketplace, Open platform for community to contribute, wide coverage of languages

• AppDynamics - Automated Remediation , Automated service tickets with ServiceNow, auto provisioning with Chef & Puppet scripts, open platform, API marketplace presence

• Compuware, Quest – Customer behavior analytics, Click streams, conversion rates, page load times,

• Competitive Differentiators:• Flexible delivery options allow for SaaS, on prem, and hybrid

environments• Integrated analytics for faster root cause analysis and

problem resolution• Broad application coverage from new cloud based languages

to traditional enterprise workloads

• Do you have apps moving to – or already in – the Cloud, with connections to your data center?

• Are your app teams decentralizing and gaining independence?

• Are your app lines of business moving to an OpEx model?


IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.


• Need to reduce expenses• No resources to build an

automation infrastructure• Lack of technical know-how

hinders automation

• 30% reduction in execution time of business workloads, resulting in millions of $$$ in savings

• 90% reduction in labor costs and total control of business SLAs

• 35% savings in operation costs and improved staff productivity to support additional workloads

• Get time back by automating your processes - Automate BI & ERP processes in minutes

• Manage your business SLA’s - Run and monitor workloads wherever you are

• IT Ops managers - wants to move to a service-centric delivery organization

• LOB owner – wants low cost solution with immediate benefits, ease of use and scalability to grow with evolving needs.

List Price Competitors Questions to ask

New Customers 1k - 25k jobs each 1k job pack is priced at $70/mth 25k - 250k jobs each 1k job pack is priced at $56/mth 250k – 1,000k jobs each 1k job pack is priced at $35/mth > 1,000k jobs each 1k job pack is priced at $21/mth

Existing Customers 1k - 25k jobs each 1k job pack is priced at $56/mth 25k - 250k jobs each 1k job pack is priced at $35/mth 250k – 1,000k jobs each 1k job pack is priced at $21/mth > 1,000k jobs each 1k job pack is priced at $21/mth

(*existing customers continue to pay S&S)

• Traditional vendors (BMC, CA, ASG)• Specific Solution vendors (e.g. RunMyJobs, Flux,

Network Automation, Advanced Systems Concepts)

Competitive Differentiators:• Get started with ZERO investment. Competitors force you

to make an upfront commitment.• Faster TTV with a ready-to-use application catalog.

Competitors need your to reach out to business partners to get started.

• IBM’s strong commitment to Open Standards - With OSLC, workload automation is easily integrated with other OSLC-enabled applications like monitoring, ticketing, etc.

• IT Ops manager: Are you spending too much money building and managing your infrastructure?

• LOB owner: Is it taking too much time to automate your processes, and monitor them through simple interfaces ?



SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience


• Fragmented service management processes are causing inefficiency

• No visibility of assets across the enterprise

• Hard to manage multiple apps on different platforms

• Reduce IT change related outages by 70%• Improve first call resolution rate by 25%• Reduce request response times by 60%• Lower help desk calls by 80% through end user

empowerment and service request automation

• Combine processes controls with runbooks

• Synch data across unified domains• Get a working environment up and

running in hours, not weeks

• LOB owner: Low cost, quick TTV, ease of use and scalability to grow with evolving needs.

• IT Manager: Reduce infrastrasture costs

List Price Competitors Competitive Differentiators Questions to ask

• $99/month per Authorized User

• $297/month per Concurrent User

• Legacy IT vendors (e.g. BMC, HP, CA) are digging deep to re-work existing ITSM solutions for SaaS delivery or create brand-new ITSM offerings that compete with and confuse their existing solutions

• Emerging vendors (e.g. ServiceNow) are offering 1) Light-weight “no-install” SaaS offerings, 2) “good enough” – cheap, quick, easy, 3) Very easy to use, little training needed, 4) Focused on social media interactions, 5) Often pushing PaaA solutions to build their IT infrastructure

Know Weaknesses•No concurrent user pricing; weak in change mgt, analysis and planning; charges extra for run book functionality; No on-premise solution

SCCD Strengths Consistency – Single offering for both Enterprise & SMB, and SaaS and On-Premise Capability –Provide deeper functionality than competitionIntegration - With a wide range of IB/3rd party products to satisfy any clients needs

• Do you want a complete integrated service management solution? Into configuration, Change, asset or license management?

• Is IT infrastructure support a core competency or an ongoing headache?

• Are your lines of business moving to a SaaS and/or OpEx model?

Entitlement Price

• $49/month per Authorized User

• In addition to avg S&S cost of $26//month per Authorized User



Part # Product Name List Price (USD)

D1338LL Maximo Asset Management (Saas) Authorized User -- same metric as on- premise pricing – end users are no charge.

$159 per user per month

D133ALL Maximo Asset Management (Saas) Authorized User – Overage $191 per user per month

D132RLL Maximo Asset Management (Saas ) Concurrent User -- same metric as on- premise pricing the maximum number of users who will be logged onto the system. End user are no charge.

$477 per concurrent user per month

D1331LL Maximo Asset Management (Saas ) Concurrent User - Overage $573 per concurrent user per month

D133BLL Maximo Asset Management (Saas Non-production Instance - one non-production instance is included with the base subscription – this is for additional non-production instances. Will support 30 concurrent users.

$3,300 per instance per month

D133DLL Maximo Asset Management (Saas ) Non-production Capacity Add-on Instance - the base non-production instance supports 30 concurrent users, this option adds increment of 30 concurrent users.

$3,300 per instance per month

D1332LL Maximo Asset Management (Saas) Scheduler Authorized User – optional, adds the ability to use Scheduler to the base subscription

$40 per authorized user per month

D1337LL Maximo Asset Management (Saas) Scheduler Authorized User - Overage – optional, adds the ability to use Scheduler to the base subscription

$48 per authorized user per month

Service Level Agreement – an optional, but no additional charge, availability SLA for 99.8% availability exclusive of planned downtime.

No additional charge

There are no S&S parts for Saas Part numbers

Maximo Asset Management (SaaS) Business Case Packaging & Pricing



Application Performance Management

Target SaaS CustomersTarget SaaS Customers

IBM Application Performance Management Entry (SaaS)

$25/month per Average Managed Virtual Server (aMVS)

$25/month per Average Managed Virtual Server (aMVS)

IBM SmartCloud Control Desk (SaaS)

$99/month per Authorized User$99/month per Authorized User

IBM Workload Automation (SaaS)

Starts at $70 per 1,000 executed jobs per month

Starts at $70 per 1,000 executed jobs per month

$297/month per Concurrent User$297/month per Concurrent User

Target: Use existing deployments of IBM middleware (AIM & IM) to attach APM capability. Sales Tactic : Call on IT Ops, LOB or App Dev team and ask about middleware & app performance monitoring

Workload Automation

IT Service and Asset Management

Target: High labor costs and risk of human errors as a result of manually intensive work to synchronize activities across enterprises.Sales Tactic : WA SaaS automates repetitive tasks in support of business services, and control on-time delivery of those services

Target: Customers with huge cost to upgrade old versions helpdesk (BMC, HP), linking configuration Items (CIs) to their IT assets, slow service request

handling, incident and problem resolution Sales Tactic : SCCD SaaS as cost effective option to solve the above issues.

© 2013 IBM Corporation16 IBM ConfidentialIBM Confidential16

Existing Customer Up-sell

How to farm existing install base

IBM APM (SaaS) SmartCloud Control Desk (SaaS) Detect an issue, automatically open a ticket

Netcool OMNIbus Generate alerts when monitored KPI exceeded

Business Service Management Improve MTTR for monitored business processes

SmartCloud Analytics Predict and prevent problems with insight into patterns and trends

Workload Automation (SaaS) Quickly and easily identify system and application problems that are impacting your workload

Workload Automation (SaaS)

Netcool OMNIbus Create alerts for workload problems

SmartCloud Control Desk (SaaS) Open incidents for workload failures

SmartCloud Control Desk (SaaS)

IBM Endpoint Manager Trigger automatic provisioning of a desktop

Netcool Omnibus Generate tickets based on selected events

Tivoli Application Dependency Discovery Manager (TADDM)

Use Configuration Information (CI) and relationship data to manage unplanned change

Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct.Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct.

Solutions To Sell Existing Install Base Add-on Value Propositions


Key Considerations for PartnersKey Considerations for Partners

Business Value Why SaaS: $1-2Billion addressable market for CSI SaaS offerings, with 50-100% growth rate for various solutions. Average deal size: 100-200K Annual Contract Value, with 30-40% growth on the same account as user base and scope expandSoftware vs services ratios: 1:2 as configuration, customization and integration work remains (only install and standard configuration come with SaaS). Sales cycle: 1-2 months, as 60% of prospects know what they want before they contact vendors. The key is to engage prospects effectively in digital marketing. Return for BP: brand-new SaaS revenue stream, with associated services Distribution model: authorized distribution, the same as on-premise counterparts Target BP seller:

- Certified BP with APM, SCCD, TWS, EAM skills- MSP

Target end user:- APM: IBM middleware (AIM/IM) customer- SCCD: BMC, HP customer with older versions Helpdesk, with high upgrade costs



C&SI SaaS Offerings


Agenda


Application

Specific

Licensing(ASL, xSP)

BP’s solution bundled with IBM perpetual

software

IBM SaaS Referral Incentive

Leverage IBM SaaS Offerings

to enhance solutions

IBM SaaS

Solution Provider

(SSP)

BP’s expertise with IBM SaaS

BP delivered

SaaS

IBMdelivered

SaaS

•BP sell, invoice, deliver IBM Sales Rep incented

•Earn 25% on subscription parts, for life of contract (single-user)

•Earn up to 35% off tier price for life of contract (multi-customer)

•Level 1 support provided by partner

•Tier one contractual relationship between IBM and BP

•BP prices independently

• BP identify Opportunity, Co-Sell with IBM

• Earn 15% fees on first contract subscription

• Level 1 & 2 support provided by IBM

• IBM handles pricing

Autonomous selling

Level 1 & 2 Support provided by the partner

Restricted-Use License; License held by partner

Known price to BP for the IBM SW for the duration of contract

Monthly parts available on selected products

IBM Software

Value Plus (SVP)

Leverage standard two

tier distribution channel

•BP resells, invoice, deliver IBM Sales Rep is incented

•Authorized Partners only

•Standard VAD/ VAR incentive model

•IBM provides Level 1 & 2

•Partner Guided Selling tool used to quote and sell

Business Partner SaaS Business ModelsBusiness Partner SaaS Business Models

Re-Marketers

BP Storefront

Referral


Business Partner resells (remarkets) IBM hardware and or software and… Jointly owns customer with IBM Uses business know how, related services together with IBM SaaS to drive sales Leverages two product categories

o Open - Virtually all IBM Business Partners resell the products through Passport Advantage program

o Authorized – Only Business Partners who are approved under IBM SVP Business Partner Agreement for the product can resell that product through Passport Advantage program

IBM Software Value Plus Reseller (SVP)

Identifies opportunities or receives opportunity from IBM

Convinces customer to acquire SaaS solution

Sell IBM SaaS under Passport Advantage using IBM service agreement and terms of use

Sets customer price and processes PO through IBM Value Added Distributor

Invoices customer

Pays VAD as invoiced

Sets price to Business Partner

Invoices Business Partner

Pays IBM as invoiced for virtually all charges associated with service until customer cancels service

Provides VAD discount

Invoices VAD

Authorizes use of service to customer under IBM service agreement and terms of use

Assigns Proof of Entitlement to customer

Runs and delivers SaaS application from its data center

Provides customer support

Key Features

I Bu

sin

ess

Par

tner

I Bu

sin

ess

Par

tner

IBM

IBM

VA

DV

AD

Roles


Operational Model on Service Engage (SVP)

IT Practitioner

Business Partner

Sandbox

Accesses Live Demo

Trial Environment

Partner Specific URL to Trial Access

Leads

Lead$

IBM Hosted Trial Environment

Unica

Request to purchase through Business Partner

Requests support through

Engage

Paid Standard VAD/ VAR model

Forum, L1, L2, L3

IBM’s Partner Guided Selling Tool

APM

WA

SCCD


IBM SaaS Solution Provider (SSP)

22

Bu

sin

ess

Par

tner

Bu

sin

ess

Par

tner Identifies opportunity or receives from IBM

Convinces customer to buy SaaS solution

Delivers total solution

Authorizes use of service under BP’s service agreement

Sets price & processes PO with IBM

Invoices customer

Sole customer support interface

Pays IBM as invoiced for charges until canceled

IBM

IBM

Key Features

Business Partner sells solutions, manages accounts, provides support and… Owns customer relationship and is single interface Uses business know how, related services together with IBM SaaS to drive sales Leverages two flexible options available with extra capacity added as required:

o Multiple End User – SaaS Solution Provider commits to volume of SaaS over term and decides how to utilize capacity across range of customers

o Single End User – SaaS Solution Provider commits to volume of SaaS over term tied to a single customer (non-transferrable)

RolesSells product to Business Partner at a discount

Invoices Business Partner

Authorizes use of service to Business Partner under an IBM service agreement & terms of use

Assigns Proof of Entitlement to Business Partner

Responsible for running and delivering the SaaS application from its data center

Provides support to Business Partner


IBM’s Software Quote and Order Tool

Operational Model on Service Engage (SSP)

IT Practitioner

Business Partner

Sandbox

Accesses Live Demo

Trial Environment Request to purchase through

partner portal

Partner Portal

Partner Specific URL to Trial Access

Leads

Lead$


UnicaAPM

WA

SCCD

Partner Value add

Code

Requests support through partner

portal

Deliver

Earn 25% on subscription


IBM Referral Incentive for SaaS

24

Identifies opportunities

Convinces customer to acquire SaaS based solution

Co-sells with Business Partner Sells SaaS either under

Passport Advantage or Cloud Service Agreement

Sets price & processes purchase order

Provides Business Partner fee payment for processed sales

Invoices customer Authorizes use of service to

customer under an IBM service agreement and terms of use

Assigns Proof of Entitlement to customer

Runs and delivers SaaS application from its data center

Provides customer support

Pays IBM as invoiced for virtually all charges associated with service until service is cancelled

Key Features

Business Partner influences SaaS sale with clients and… Identifies opportunities, works with IBM to close sale and deliver SaaS Uses marketplace reach and existing client relationships to identify opportunities Uses business know how and relationships to jointly close sale with IBM

Roles

Bu

sin

ess

Par

tner

Bu

sin

ess

Par

tner

Cu

sto

mer

Cu

sto

mer

IBM

IBM


Operational Model on Engage: IBM SaaS Referral Incentive Program

IT Practitioner

Business Partner

Sandbox

Accesses Live Demo

Trial Environment Request to purchase through

EngagePartner Specific URL to Trial Access

Leads

Lead$


UnicaAPM

WA

SCCD

Requests support through

Engage

Paid 15% ofAnnual

Contract Value

Deliver

Forum, L1, L2, L3


IBM Referral Incentive for SaaS – Rewards

• Applies to:

• commercial accounts only• virtually all account classifications: Industry, Enterprise Select, Enterprise non Select &

Midmarket• Payout percentages: contract value

• New Deals: 15%• Up-sell: 15% • Contract Extensions: 5%

o Some products not eligible for Contract Extension fees

• Fees paid on Annual Contract Value

• Only includes Subscription Charge Type• For multi-year contracts, fee is payable each year

• Maximum fee payment: $150,000 per single claim

• Partner creates profile & claims referral incentives

26

Visit PartnerWorld for more information:

https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_sc_saas


Creating unique URL format to drive Business Partner Leads!!!For IBM Partners in the SaaS Partner Programs….

www.ibmserviceengage.com?/utm_source=reference code

reference code =1<campaign><country_code><PartnerWorld_ID>:<email_address>

URL details:• 1 is fixed for all partner sellers• <campaign> is the specific partner program: 01 – SVP 02 – SSP 03 – Referral• Insert your campaign, country code, PartnerWorld ID, and email address into the

reference codeExample:

I am in the SaaS Referral so my <campaign> is 03I am based in the UK so my <country_code> is uk (see next slide for country codes)My <PartnerWorld_ID> is xyz123My optional seller <email_address> is [email protected]

My reference code = 103ukxyz123:[email protected] URL is = www.ibmserviceengage.com?/utm_source=103ukxyz123:[email protected]

URL Format is:

Distribution of BP URLs:• VADs would distribute unique URLs for SVP to their Resellers• Receive unique URL in SSP approval email• Receive unique URL in SaaS Referral approval email


How do I maintain my leads? How do I maintain my leads?

BP provides their unique IBM Service Engage url to client

BP provides their unique IBM Service Engage url to client

SaaS ISRSaaS ISRSaaS ISR informs BP that client has started trial

SaaS ISR informs BP that client has started trialBPBP

ClientClient

SaaS Inside Sales Rep receives client response associated with BP and matches to trial list

SaaS Inside Sales Rep receives client response associated with BP and matches to trial list

Client registersClient registers Client receives free trialClient receives free trial

11

22 33

4466

Trial listTrial list

SaaS Inside Sales Rep qualifies client (Optional)

SaaS Inside Sales Rep qualifies client (Optional)

55

SupportLearn Explore Try Use / Buy Extend


• IBM Service Engage• Partner World SaaS landing page

Key Resources For SaaS Offerings

Find the business model for you How would you like to work with IBM?

Work with IBM SaaS products (Select one of the sections below for complete details)

Own the customer relationship SaaS Solution Provider (IBM Solution Provider – IBM Software as a Service)

Resell authorized products through IBM Software Value Plus (SVP) IBM Software Value Plus (SVP) SaaS

Act as a referral Business Partner IBM Referral Incentive for SaaS and Software

1.

2.

3.

•Partner World Center of Competencyhttps://www-304.ibm.com/partnerworld/wps/servlet/mem/ContentHandler/A725247N63902M39

Question

Back Office team

SaaS CoC

Customer Fulfillment

Answer

IBM Seller Community

Brand resources (Legal, PLM, Sales, Strategy, Pricing,

BizDev, Competitive)

Partner Seller Community

Partner

IBM Seller

SaaS Operations &Environment team

Question

Back Office team

SaaS CoC

Customer Fulfillment

Answer

IBM Seller Community

Brand resources (Legal, PLM, Sales, Strategy, Pricing,

BizDev, Competitive)

Partner Seller Community

Partner

IBM Seller

SaaS Operations &Environment team

© 2014 ibm corporation cloud & smarter infrastructure changing the game with c&si saas...

Documents

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service saas

saas applications

expenses saas

saas help

csi saas solutions

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