®

© 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

meryan@us.ibm.com

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IBM Business Partner Processor Value Unit Sales Skills Training

Today’s Agenda

Customer Experience

Quote Tools

Sales Scenarios

Question and Answer

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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!