Winning With Messaging What you need to succeed

Business Partner Third ThursdayFebruary, 2004

Krista Hiltz KahnMarketing Manager

Agenda What are CIO’s Looking For In A Messaging System

IBM/Lotus continued investment

How to continue to provide value to your customers, cement your relationships and grow your business.

The arsenal to help you win (New offerings – new tools) IBM Lotus Notes and Domino 6.5.1 and Domino Web Access High Fidelity support for MS Outlook Clients End to End Linux Solution for Messaging Domino and Notes Applications High Value Business Portals

Purchasing Options Client / Server CEO Express

Selling Scenarios Existing Customers Mixed Customers New Customers

Pains for Every CIO

Business valueCore business applications, records management, archiving compliance, integration, offline support, extending communications and collaboration to all

Quality of Servicereliability, performance, security, SPAM, virus, storage and network resources, administration time/costs

User ExpectationAlways available, always on, personalized experience

Business

Value

Quality of

Service

User

Expectation

TCO

Prioriti

es

2010+2010+

IBM’s Leadership In Messaging and Collaboration

1989 – A star is born, Lotus Notes R1

1991 – Notes R2

1996 - Notes R4 and Notes/Domino R4.5

1999 – Notes and Domino R5

1993 - Notes R3

2002 – Notes and Domino 6.0

Notes and Domino 6.5.2, May, 2004

2003 – Notes and Domino 6.5, and Lotus Workplace Messaging 1.1

Notes and Domino 7.0, Q1, 2005

…continuing long into the futureTools to extend Domino into websites and portals

Notes and Domino 8

5 Key Plays

#1 IBM Lotus Notes and Domino 6.5.1 and Domino Web Access

#2 High Fidelity support for MS Outlook Clients

#3 End to End Linux Solution for Messaging

#4 Domino and Notes Applications

#5 High Value Business Portals

Play #1: IBM Lotus Notes 6.5.1

Deliver proven world-class messaging and collaboration, within Dynamic, Collaborative Workplaces that bring together key elements necessary to maximize collaboration and human interaction.

Provides Customers Choice Operating System, Hardware Platform, Directory, Client Access

Lower Cost Of Ownership Simplify Administration, Reduce Network Bandwidth and Server Storage

Unmatched Security Protect Critical Corporate Data

Ensured Reliability Availability All Day, Every Day

IBM Lotus NotesProvides a world-class messaging and collaboration platform to help integrate people and business processes

Gives users a single access point to their most valuable messaging, collaborative and personal information management (PIM) resources through the new Lotus Workplace for Notes welcome page

Integrates Lotus Instant Messaging functionality to provide presence awareness and enable users to initiate chats with colleagues—without launching a separate application

Maximizes responsiveness through follow-up function and visual indicators to show users when they’ve forwarded or replied to e-mail messages

Helps reduce total cost of ownership through minimal training requirements, end-user productivity enhancements and built-in management function like Smart Upgrade

Follow Up

IntegratedChat

Prevent SPAM

UnmatchedSecurity

OnlineAwareness

Reply/Forward

Colorcoded

messagesPrioritize

messages

Improved Productivity

Integrated IM

SPAM control

Follow up

Industry leading TCO

Smart Upgrade

Calendaring Enhancements

IBM Lotus Notes

Organizations can improve the reliability and scalability of their messaging infrastructure, by upgrading from Microsoft Exchange to Domino — without needing to change clients.

The Microsoft Outlook user experience is virtually unchanged with Domino Access for Outlook; users simply work with their mail, calendar and task data on Domino instead of Microsoft Exchange.

Domino Access for Microsoft Outlook also gives Microsoft Outlook users the additional benefits of Domino Messaging features not available with Exchange.

Co

nne

ct to D

omin

oPlay #2 Domino Access For MS Outlook

IntegratedChat

Reply/Forward

OfflineSupport Browser access

for mail, calendar, address book, journal

Most advanced and secure web client in the industry

Use in the office, at home, or at a shared kiosk

Windows or Linux Browser

Runs onLinux too !

Prioritize messages

IBM Lotus Domino Web Access (Browser Support)

Opportunity: Customers Deciding Between Vendors

If your customer considers Email a commodity – then Domino applications will be the tiebreaker !

Domino applications are typically mission critical and can’t be easily moved to another platform

Rapid Application Development Template Driven Designs

Reusability

Built in directory/names support Easy of Deployment and Administration

Changes replicate to servers/local automatically

Centrally “sign” design elements??

Backwards compatibility Security

From the server, to the database, to the form/view, to the section, to the field

Built in PKI encryption?? Open Access

Program in a variety of languages

Access enterprise data

The Microsoft Exchange 5.5 Customer Opportunity Locked on old NT servers

Stranded on Old unstable Exchange servers…the clock is ticking

No option but to move

Move involves huge expense

And delivers little Business Value

75% of MS customers in this situation All highly critical of MS’s messaging offerings and roadmap

Independent industry studies estimate upgrade costs at $400+/seat

$1B+ software opportunity in 2004

Domino + Outlook is a very attractive option

CUSTOMERS HAVE THIS BUDGETED DUE TO IMPENDING END OF LIFE FOR EXCHANGE 5.5

Opportunity: Unhappy MS customers

Play #3 End to End Linux Offering Lotus software for Linux offers a compelling platform for world class collaboration

Domino Web Access Client for

Linux Clients

Domino Server for Linux on intel and

ZSeries

Lotus Notes and Domino on a complete Linux environment

Play #4 Notes and Domino Applications

Thousands of customers around the globe, from large multinational enterprises to small local shops, trust their core business applications to Lotus Notes and Domino

Team / Community Discussion Databases and Forums Document Storage and Collaboration Customer Relationship Management HelpDesk / Customer Support Human Resources Billing Systems Inventory Management / Supply Chain Tracking Project Management Sales Force Automation Product Catalogs/Price Lists Compliancy Tracking, Audit and Assessment Administration Tools: Anti-virus, Backup and Restore, SPAM filtering Infrastructure Tools: Server Administration and Management

Rapid application development enables short “prototype to production” schedules, allowing customers to benefit from Domino quickly, dramatically increasing their ROI.

Application deployment and design changes require minimum system administration effort, reducing total cost of ownership (TCO)

Highly secure environment protects corporate data Unmatched off-line support enables users to work productively anytime, anywhere.

MS Office

Visual Basic

NotesClient

Webbrowser

Portals

Java Server Pages(JSP)

Enterprise Data

XML

Mobile Devices, Smart Phones, PDAs

Open Environment Via Standards

SQL

Portals are one of the highest growth areas in the IT

Users can access their mail, calendar, address book, and journal from the portal

Provides simple anytime anywhere access

email calendar

Messaging is one of the first mission critical applications companies look at delivering via portals

Play #5 High Value Portals

Domino 6.5.1 Family Integrated Via WebSphere Portal

Purchasing Options

Purchased per user.Servers must also by purchased. (see next slide)

Lotus Domino Web Access for MessagingMessaging, calendar and scheduling, and

PIM (directory) functions through a Web browser

Lotus Domino Web Access for CollaborationAdds support for collaborative applications

Lotus Notes for Messaging Messaging, calendar and schedule, to-dos,

personal address book

Lotus Notes for CollaborationAdds support for collaborative applications

Domino DesignerEnables Application Developers to build

Domino applications

Client Offerings For Different Customer Needs

Domino Designer

Notes For Collaboration

Domino Web Access For

CollaborationNotes For Messaging

Domino Web Access For Messaging

Purchased per CPU

Domino Messaging Server Provides access to messaging, calendar and scheduling,

and PIM (directory) functions

Domino Enterprise Server Provides access to messaging, calendar and scheduling,

and PIM (directory) functions Provides access to full collaborative applications Provides Domino clustering for failover and load-balancing

Domino Utility Server Provides access to collaborative applications, but does not

allow the use of individual mail files. If accessed via a web browser, no CAL is required. Notes

client access is allowed, but CALs need to be purchased.

Domino Server Offerings

Perfect for customers that require only mail

Offers the best return on investment (ROI) due to use of Domino for applications.

Used where 100% availability is required.

By eliminating the need for CALs, this is excellent for Domino applications where the # of users is very high, and/or hard to track. Example: a customer enabled web application.

Product Category Products Included in Bundle Solution Minimum Initial User

Requirement

Lotus Communications

Domino Messaging per ProcessorDomino Enterprise per ProcessorNotes with CollaborationNotes with MessagingDomino Web Access for CollaborationDomino Web Access MessagingIBM Lotus Domino WebmailDomino Designer

Lotus' leading messaging, groupware and collaboration clients and servers; accessed either through the Lotus Notes Clients or Web Browsers

100

Complete Enterprise Option (CEO)

CEO product categories are collections of closely associated products, which together, create an enterprise infrastructure solution.

Instead of purchasing via Client (CALs) and Server (per CPU), the CEO product categories offer the ease and flexibility of simply purchasing on a per user basis (subject to specific acquisition rules including a minimum initial user quantity requirement)

Example: A customer wishes to use Domino for mail and applications, and does not want the overhead of counting how many CPUs worth of servers they require, nor which users are accessing via Notes client, which via web browser, how many developers they have, etc. Instead they simply count the # of users in their company, and purchase the equivalent number of CEO licenses.

Offerings designed to make it easy for small and medium business (SMB) organizations to acquire, deploy, and use the same rock-solid messaging, scheduling and solutions leveraged by large organizations.

Pricing, packaging, and promotion are optimized for small and midsized organizations. Available only for companies that have 1000 employees or fewer. Similar to CEO, no client/server purchase, just purchase via # of users.

Domino Collaboration Express (per user) Allows customers to use both the messaging and collaborative capabilities of Domino. Customers can choose to access Domino via Lotus Notes, or Lotus Domino Web Access

clients for both email and collaborative applications. Does not allow the use of Domino clustering, advanced directory functions, or Designer

Domino Utility Server Express (1-4 CPUs) Provides unlimited access to collaborative applications, but does not allow the use of

individual mail files. Customers can choose to access their Domino applications through a Web browser, or via

a separately purchased Lotus Notes client. Applications are available to users internal to your company, as well as external. Access is allowed for individually authenticated as well as anonymous users.

IBM Lotus Domino Express

Customer Scenarios

Scenario 1: Using An Older Version Of IBM Lotus Domino Action: Upgrade to the most current version to achieve greatest return on

investment, optimize cost of ownership, and increase user productivity.

• Upgrade and App Dev Consulting Services = $$$• Upsell additional products = $$$

Scenario 2: Mix of Domino and A Competitive System Action: Standardize on a single Domino infrastructure in order to lower operating

costs, reduce administration, and improve user experience.

Scenario 3: Using Competitive Products Action: Migrate to Domino or Workplace Messaging, removing the constant

security issues, server downtime, high administration costs, and user dissatisfaction

Opportunity: New Customers and Upgrades

TCO and Notes and Domino Roadmap is often enough Dismisses the argument “Outlook is better” Users instantly more productive in mail and calendar Bandwidth compression and background file detachment 6.5.1 includes Instant Messaging / Awareness client license

Move to ND6 Customers who upgrade from R5 Client and Domino Server can save

$13.35 or more per user per month

*Potential savings per year for 10,000 users $1,602,000

Ferris report http://www.lotus.com/news/news.nsf/link/3rdparty-notesdomino

Situation/Pain Qualifying Questions

High cost of ownership on older versions (R4 and R5), high # of servers, low users per server density, high bandwidth demand, administration problems

Would you like to reduce your messaging TCO ?Are you familiar with the TCO features and benefits developed into the latest version of IBM Lotus Notes/Domino?

Low user productivity due to lack of feature / functionUser interface, calendaring and scheduling struggles

Is end user efficiency important or are there existing messaging and collaboration functionality gaps that you would like to improve upon? If so, what are they ?

Business requirements not met due to lack of adaptabilityBrowser access, Linux, consolidation options

Are you meeting all of your messaging and collaboration demands today

Scenario 1: Upgrade Existing Customers To 6.5.1

Obstacle Response

“We only touch the desktop every two years …”

By upgrading to ND6.5 at the server only, you can save a significant amount of money through server consolidation and increased performance.

Use DWA (Linux or W32) and avoid ANY desktop touch Use Smart Upgrade and avoid the desktop touch Lotus Notes uses standard MSI installer, simplifying installation during your next

desktop refresh

“We plan to switch to Exchange …”

What are you going to do with all your Notes applications ? When? E5.5 is EOL in 03, E2K is likely done in 2005?, and E2003 will be replaced

by Kodiak in 06/07, so when do you want to get on the upgrade treadmill? What business drivers are behind this decision? Domino has superior security,

higher reliability, simpler system administration and runs on multiple operating system including Linux.

Our users don’t like Notes

R4 Notes right?, Notes 6.5 dramatically increases the user productivity in Mail, C&S and mobile access while better protecting from mail SPAM and viruses

Notes 6.5 with integrated instant messaging will allow your users to be more productive than they can be with Outlook.

“We just deployed Active Directory

Our messaging solutions fully support and integrate into Active Directory from a standards point of view to lower your cost by using what you already have. Registering/updating/deleting Notes users/groups can be done from Active Directory, this removing any duplication of work.

Handling Objections For An Upgrade

MonitoringBackup/RecoveryDirectorySecurity

Mail ArchivingData storage

PortalEveryPlace AccessApplication Server

Application Development Tools

Instant MessagingOnline MeetingsTeamSpacesDocument ManagementWeb Content ManagementLearning

Servers and Storage

Upsell The Full IBM Family

Scenario 2: Mixed Accounts

Mergers & Acquisitions and Departmental Solutions Massive opportunity for net new licenses as enterprise seats come into play Infrastructure consolidation becomes top of mind for CIO & staff Inter-company Messaging & Collaboration required for due diligence Potential for large scale Business & IT consulting services likely required

= HUGE opportunity for migration and consulting expertise

Scenario 3: Target Competitive Accounts

Situation/Pain Qualifying Questions

High cost of ownership on Exchange 5.5

Can we help organization develop a messaging plan for moving forward?

Low users per server, running on Windows NT typically, frequent patching required

Are you interested in managing costs and lowering TCO, while delivering improved service and functionality ?

Virus and security problems – OTD – Outlook Transmitted Diseases

Has your organization had problems with SPAM and virus attacks?

Impending end of support event (end of 2004 for special support)

Do you feel that your messaging investment has been protected and preserved by Microsoft ?

High failure rate, poor “clustering”, limited backup/recovery options, no disaster recovery

How does your organization handle backups and individual mailbox recovery?

Upgrade ~ $400 per user or MORE

Are you aware of the complex upgrade and migration (read: rip and replace) strategies required by Microsoft Exchange ?

Handling Objections For A Competitive Winback

Obstacle Response

“We are an Exchange shop …”

Are you satisfied with your current TCO ? If I could save you 30% - 50% of your current TCO, would you be interested in looking at an alternative?

Have you had any down time due to viruses or security “events” in the last 2 years. How much time/cost did your admins have to put into applying upgrades and patches to prevent problems?

“We use Outlook on the desktop …”

We support Outlook as a client and can provide a significant cost benefit over your existing Exchange infrastructure as your OS choices go from 1 – 5 different server platforms . (Win32, Linux, Sun, AIX, iSeries, zSeries)

“Microsoft tells me – Domino is dead”

Domino is far from dead, however it is taking on a new, shared role alongside Lotus Workplace. Many new shops have just joined the Notes ranks on ND6.5. ND7 and ND8 are already being discussed publicly.

“We just deployed Active Directory

Our messaging solutions fully support and integrate into Active Directory from a standards point of view to lower your cost by using what you already have..

“We don’t have the skills in-house to support Lotus …”

Domino has a far superior and intuitive installation and administration process which has been deployed and proven in 61,000 companies worldwide.

Mail is “free” from Microsoft”

As the license is typically only 10% of the total cost, many of our customers own Exchange licenses, but decided to deploy Notes and Domino for their mail because of the reliability and overall security.

Enablement

Announcement PlansN/D 6.5.1 available today

Extended Products Availability – March 23 IM entitlement as part of for Notes client, DWA client, DA

for MS Outlook, CEO CommsEffective March April 1

More in-depth presentation posted on Quickplace WEB: http://www.lotus.com/partners/bp.nsf

Quickplace: Address: https://extranet.lotus.com/salestalk

•User Name: WW Partner•Password: lotussoftware (case sensitive)

www.lotus.com website for more information on 6.5.1 SMI updates