Document 1301467

Rodney Foreman
Cloud & Smarter Infrastructure
Director, Worldwide Channels Sales
#ibmpulse
Caution on forward looking statements
IBM’s statements regarding its plans, directions, and intent are subject
to change or withdrawal without notice at IBM’s sole discretion.
Information regarding potential future products is intended to outline our
general product direction and it should not be relied on in making a
purchasing decision.
The information mentioned regarding potential future products is not a
commitment, promise, or legal obligation to deliver any material, code or
functionality. Information about potential future products may not be
incorporated into any contract. The development, release, and timing of
any future features or functionality described for our products remains at
our sole discretion.
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“Business Partners are vital to IBM’s success
“IBM’s software business is not limited in opportunity. Partners can help us reach our goals."
Steve Mills, Senior IBM VP, SWG
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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
#ibmpulse
What is driving the move to SaaS?
Market dynamics and disruptive technologies are driving
the shift to SaaS consumptions models
Developers want
Low touch, easy to consume,
continuously updated software
Lines of Business want
Mobile
Cloud
Social
CxOs want
Predictability
Lower costs
Quicker business value
Access from anywhere
To create new offerings by
composing services from
multiple providers
Embedded Intelligence
Big Data
IT Operations wants
To manage on-premise, Cloud, and hybrid environments
#ibmpulse
…and 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
Decision
Makers
Decision Makers
Economic
Buyers
Influencers
Recommenders
Practitioners
*Source: Google & Compete
B2B Customer Study, June 2012
Users
CIO
CTOs
IT Managers
IT Operations
Manager
Data Center
Manager
Developers
Technical
Leaders
System
Administrators
IT Operations
Data Scientists
#ibmpulse
How can SaaS help?
• Improved TCO due to lower infrastructure costs
• 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
#ibmpulse
What is the Total Cost of Ownership?
On-premise vs. Saas
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)
250,000
Small Deal Total Spend
200,000
150,000
100,000
50,000
0
On Prem
SaaS
1650 VMs
300 VMs
700,000
30 VMs
Medium Deal Total Spend
2,500,000
Large Deal Total Spend
600,000
2,000,000
500,000
1,500,000
400,000
300,000
1,000,000
200,000
500,000
100,000
0
01-1Q
01-2Q
01-3Q
01-4Q
02-1Q
02-2Q
02-3Q
02-4Q
03-1Q
03-2Q
0-3Q
03-4Q
04-1Q
04-2Q
04-3Q
04-4Q
05-1Q
05-2Q
05-3Q
05-4Q
0
On Prem
SaaS
On Prem
SaaS
#ibmpulse
What is the competition doing?
While the Old Lions fight, the Hyenas are stealing the food
C&SI on April TT Study
Hyenas …
ServiceNow
VMware
Splunk
CommVault
MobileIron
SolarWinds
New Relic
Old Lions …
HP
Symantec
CA
BMC
C&SI
(2012-13)
IT Operations wants
To manage on-premise, Cloud, and hybrid environments
C&SI
(2014-15)
#ibmpulse
Why are Customers buying SaaS?
Other
17%
Customers that wish to replace
existing licensed and/or
client/server applications
with SaaS applications
15%
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%
*Source: Gartner, Softletter, Forrester, GigaOM
#ibmpulse
How is IBM delivering this? IBM Service Engage
A New Way to experience and acquire our on-premise and SaaS solutions
IBM Service Engage
Learn • Explore • Try • Use (Buy) • Extend • Support
New way….
for engaging clients and partner via live
guided demos available 24x7
to POC your clients … start a POC in 30
minutes, anytime, anywhere your client
wants
to accelerate the close
to extend what your clients are already
buying at lower total cost via Software as a
Service
IBM Service Exchange – Digital Presence
•
•
•
•
#ibmpulse
Readily available
Continuous delivered
Scaling to needs
Immediate Feedback
Learn
Explore
Try
Use / Buy
Extend
Support
Why is this important to YOU?
#ibmpulse
Service Engage faster time to value for your clients
POC in days not weeks / months with 30 day evals
Earn quick wins, close more often, earn more money
Expand your footprint in your accounts using a land and
expand strategy
Displace 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!
https://www.ibmserviceengage.com/
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What SaaS Offerings can you sell NOW?
Application Performance Management
IBM Application Performance Management
Entry (SaaS)
$25/month per Average Managed
Virtual Server (aMVS)
>1000k jobs, each 1K job pack
is priced at $21 per month
Workload Automation
IBM Workload Automation (SaaS)
Starts at $70 per 1,000 executed
jobs per month
IT Service and Asset Management
IBM SmartCloud Control Desk (SaaS)
$99/month per Authorized User
$297/month per Concurrent User
From 251k to 1,000k, each pack
of 1k is priced at $35/month
From 26k to 250k, each pack of 1k
is priced at $56/month
From 1k to 25k monthly executed jobs,
each pack of 1k is priced at $70/month
#ibmpulse
IBM Performance Management for Applications and Infrastructure solutions increases your end user
satisfaction with complete visibility and control of your application environment.
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)
• New Relic - Customer Analytics performance
benchmarks, plug and play in API marketplace, Open
platform for community to contribute, wide coverage of
languages
• Do you have apps moving to – or already
in – the Cloud, with connections to your
data center?
• APM Diagnostics: $120/
month per Average
Managed Virtual Server
(aMVS)
• 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
• Are your app teams decentralizing and
gaining independence?
• Are your app lines of business moving to
an OpEx model?
#ibmpulse
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.
Pain points
How this offering helps
User scenarios
Typical buyers
• 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
• Traditional vendors (BMC, CA, ASG)
• Specific Solution vendors (e.g.
RunMyJobs, Flux, Network Automation,
Advanced Systems Concepts)
• IT Ops manager: Are you
spending too much money
building and managing your
infrastructure?
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.
• LOB owner: Is it taking too
much time to automate your
processes, and monitor them
through simple interfaces ?
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)
#ibmpulse
SmartCloud Control Desk (SaaS) delivers a unified service management solution to
simplify business processes, maximize asset efficiency, and improve the end user experience
Pain points
How this offering helps
User scenarios
Typical buyers
• 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 rework existing ITSM solutions for
SaaS delivery or create brand-new
ITSM offerings that compete with
and confuse their existing
solutions
Know Weaknesses
•No concurrent user pricing;
weak in change mgt, analysis
and planning; charges extra
for run book functionality; No
on-premise solution
• Do you want a complete
integrated service
management solution?
Into configuration, Change,
asset or license
management?
SCCD Strengths
Consistency – Single offering
for both Enterprise & SMB,
and SaaS and On-Premise
Capability –Provide deeper
functionality than competition
Integration - With a wide
range of IB/3rd party products
to satisfy any clients needs
• Is IT infrastructure support
a core competency or an
ongoing headache?
Entitlement Price
• $49/month per
Authorized User
• In addition to avg
S&S cost of
$26//month per
Authorized User
• Emerging vendors (e.g.
ServiceNow) are offering 1) Lightweight “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
• Are your lines of business
moving to a SaaS and/or
OpEx model?
#ibmpulse
What are the Business Partner SaaS Programs?
IBM
BP
delivered
delivered
SaaS
SaaS
Re-Marketers
Referral
BP Storefront
Application
Specific
Licensing
(ASL, xSP)
BP’s solution
bundled with
IBM perpetual
software





Autonomous selling
Level 1 & 2 Support provided by
the partner
IBM
Software
Value Plus
(SVP)
Leverage
standard two
tier distribution
channel
•BP resells, invoice, deliver
IBM Sales Rep is incented
•Authorized Partners only
Restricted-Use License;
License held by partner
•Standard VAD/ VAR
incentive model
Known price to BP for the IBM
SW for the duration of contract
•IBM provides Level 1 & 2
Monthly parts available on
selected products
•Partner Guided Selling tool
used to quote and sell
IBM SaaS
Solution
Provider
(SSP)
BP’s expertise
with IBM 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
IBM SaaS
Referral
Incentive
Leverage IBM
SaaS Offerings
to enhance
solutions
• BP identify
Opportunity, Co-Sell
with IBM
• Earn 15% fees on first
contract subscription
• Level 1 & 2 support
provided by IBM
• IBM handles pricing
#ibmpulse
Where can I get help with a SaaS deal?
The SaaS & Service Engage Center of Competency serves as a war
room, providing a resource for sellers to get help closing a SaaS deals.
The CoC web site provides
information on the
following:
•
•
•
•
•
•
•
•
•
•
•
Overviews
FAQs
Terms & Conditions
Privacy
SaaS vs on-premise
Competition
Pricing
ELAs & SaaS
DSR / ISR scripts
Typical sales cycle
Links to SaaS Offering
info
Sellers can use the CoC:
• For self-service
• To submit a question
to the community
• To request help
Partner Seller
Community
SaaS CoC
Question
Answer
Partner
IBM
Seller
Brand resources
(Legal, PLM, Sales,
Strategy, Pricing,
BizDev,
Competitive)
IBM Seller
Community
Customer
Fulfillment
Back Office
team
SaaS Operations &
Environment team
Partners - http://www.ibm.com/csicenter/partners/*
#ibmpulse
How do I maintain my leads?
5
6
SaaS Inside Sales
Rep qualifies client
(Optional)
4
Trial list
BP
SaaS ISR informs
BP that client has
started trial
Client
SaaS ISR
SaaS Inside Sales Rep
receives client response
associated with BP and
matches to trial list
1
BP provides their
unique IBM Service
Engage url to client
Client receives free trial
Client registers
3
2
Learn
Explore
Try
Use / Buy
Extend
Support
#ibmpulse
What do I need to know about Data Privacy?
Personal data generally includes information relating to an individual -think business card (e.g. names, email
addresses, home address) In some countries, also includes information about identified partnerships,
associations, or corporations.
IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be
the client responsible for entering the data.
In most cases, Passport Advantage agreement covers data privacy for personal data.
EU and Switzerland have additional data privacy regulations but have established
the ability to create a framework with the U.S for accessing personal data.
C&SI SaaS is in the process of obtaining EU Safe Harbor certification. This
requires a risk assessment after we Go Live. In the meantime, we have
security measures in place to restrict access to EU client data and for
IBM non-U.S. employee access to Amsterdam hosting center in order to comply.
IBM has an Online Privacy Statement which is another EU Safe Harbor requirement
See the SaaS Center of Competency web site for further details on
country-unique privacy requirements
#ibmpulse
What should I do next?
Go to Service Engage, learn about it, provide
feedback
Learn about SaaS and C&SI’s 1H 2014 SaaS
offerings.
Approach your top 5 customers with these
questions:
• Does the overwhelming cost of maintaining their
infrastructure hinder developing new services that
could bring in additional revenue?
• Do they need to gain access to new capabilities
quicker to innovate faster and stay ahead of their
competitors?
• Do they want to lower their Total Cost of Ownership
(TCO) ?
Determine where your customer wants to be, and
how they should get there.
• Get them to Service Engage today
Make a SaaS proposal.
C&SI Strengths:
 Customer choice: On-premise,
SaaS, integrated experience
 Integration with broader Service
Management capabilities
 Accelerate sales velocity with
Service Engage
 Unsurpassed breath of
capabilities
#ibmpulse
Where can I learn more?
Sales Kits:
 SaaS sales kit in PartnerWorld
 At Go Live see the SaaS updates to these sales kits:
• IBM Application Performance Management sales kit in
PartnerWorld
• IBM Workload Automation sales kit in PartnerWorld
• IBM SmartCloud Control Desk sales kit in PartnerWorld
Important web sites
 Center of Competency
 Service Engage
To learn more about the technologies:
 Cloud, Cloud computing
 SaaS: WWW, YouTube
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