SWG BP Sales Incentive Programs Maros Vrabel Software Channel Manager

SWG BP Sales Incentive
Programs
Maros Vrabel
Software Channel Manager
IBM SoftwareGroup, IBM Slovensko, s.r.o.
© 2011 IBM Corporation
Software Value Incentive
Value Advantage Plus
NOT for Government, YES for ELA
NOT for ELA, YES for Government
NO sales proof required for deals
below 90K Euro (unless .. slide 19)
For selling pre-approved BP
Solutions (at least 20% in Value-Add)
For Identifying and Influencing, not
Fulfillment (!)
Rebates received from VAD
Fees paid directly to a BP
Up to 20 % fees for GB customers
Fees are a fixed % but not committed
before the deal is closed and the
oppty claimed by the BP
Fulfilling not required
Oppty must be registered at least 15
days before purchasing
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© 2011 IBM Corporation
Up to 20% rebate for GB customers
Rebate % on agreement with VAD
Only for fulfilled orders
Compliance reviews after purchasing
VAP for Government
For selling with a pre-approved VAP Government ID
(based on 3 previous references of sales to Public)
Rebates received from VAD (same % as a standard VAP)
GPP oppty must be submitted for VAP G at least 15 days
before purchasing (a different oppty submission process than
in SVI !!!)
A proof of BP’s influencing activities required (presentations,
2-way communication with the client, .. )
Rebate % on agreement with VAD
Only for fulfilled orders
Can not be combined either with VAP nor SVI
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© 2011 IBM Corporation
New Streamlined Incentive Structure
2010
2011
Multiple programs
and processes
One offering
across Software Group
SVI Solution Incentive:
Software Value Incentive
Change: Technology replaces VAP
New: Industry and Capability Solutions
Value Advantage Plus
SVI Payment Process:
Commercial accounts: Fees
Value Advantage Plus
for Government
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Government accounts: Extra Discounts
© 2011 IBM Corporation
© 2011 IBM Corporation
What’s new? What’s changing?
Value Advantage Plus (VAP) moves to SVI Solution reward
Value Advantage Plus for Government moves under SVI process
Technology solution instead of VAP:
– Criteria will stay the same
– Name change
– Programme application will be through SVP
– Payment will change from a rebate to a fee
IBM VAP Compliance Team moved from Canada to Bratislava !!!
VAP Government:
–
–
–
–
–
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Criteria will stay the same
Name change
Programme application will be through SVP
Request payment via GPP registration
Rebate
© 2011 IBM Corporation
Software Value Incentive (SVI) - New Solution rewards:
1. Technology
2. Industry
3. Capability
Rewards “value added” repeatable solution sales
Same transaction rules as Value Advantage Plus today:
Approved offering – evaluated and approved before use
Transaction “value add” ratio – 20%
Business Partner must contribute at least 20% of the total value of transaction
(IBM SW + BP Solution)
Reward: 15% in IA and GB LE, 20% in MM
Same as today
Mutually exclusive with SVI Sell Fee
Same as today and if government account, mutually exclusive with ID/Sell
Rewards:
Technology:
Industry / Capability:
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IA - 15%
IA - 20%
GB LE - 15%
GB LE - 25%
© 2011 IBM Corporation
GB MM - 20%
GB MM - 30%
Financial Incentives - Commercial Customers (fees)
Plus normal channel discounts & rebates
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© 2011 IBM Corporation
Financial Incentives – Government Customers
(discounts)
Plus normal channel discounts & rebates
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© 2011 IBM Corporation
Margins with the Sales Programmes
N.B.: Rebates (A,B,C,D) on agreement with VAD.
Double SVI not for Industry & Capability Authorization
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© 2011 IBM Corporation
Up to Double (2X) SVI Competitive Incentive
IBM software and solutions for a Smarter Planet are simply more
complete, more integrated, more optimized, and more cost effective
than the competition.
IBM provides Competitive Sales
Plays for BPs
Brand
Competitor
IM
vs. Oracle, Sybase
WS
vs. Oracle,
TmaxSoft*
Tivoli
vs. Oracle
Lotus
vs. Oracle,
Microsoft *
Rational
vs. HP
Bus Analytics
vs. Oracle
BP
Demonstrates
Competitive
Displacement
Opportunity
IBM Software Competitive Sales Plays on PartnerWorld
*Enhancements LIVE January 30, 2011
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© 2011 IBM Corporation
3%-20%
Incremental SVI
Fees for
Approved
Deals!
$$$$$$
SVI Competitive Incentive: How Does it Work?
BP must be
enrolled in SVI
BP
BPregisters
registers
competitive
competitivereplace
replace
opportunity
opportunity
BP receives access to
competitive assets via
web private activity
BP closes deal &
provides displacement
documentation
IBM pays up to
Double SVI Fees
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1. BP obtains certifications and enrolls in SVI program
2. BP submits competitive replace opportunity with BANT &
Equivalency forms & applies a category and value
code in GPP
3. BP receives access to additional competitive assets via
private web activity (optional participation for BPs)
4. BP closes/proves competitive replace by documenting
two way communication with one of:
Migration proposal, Competitor vs. IBM ROI analysis or
Business Value Assessment
5. BP achieves full double (2X) incentive by providing
customer commitment to external reference.
Example: - 40% SVI for GB ID/Sell with reference
- 32% for GB ID/Sell without reference
© 2011 IBM Corporation
Step 1: SVI Enrollment & Standard Process
Up to Double (2X) SVI Incentive sits on-top of standard SVI process
•
BP is enrolled
in SVI
Certification Requirements
•
Authorized distribution product groups - minimum of 2 current software technical and
1 current software sales certification in the reseller authorization group. Open
distribution product groups - minimum of 2 current software technical and 1 current
software sales certification in the software brand.
Eligible End Users
•
Government Accounts ineligible
•
Register oppty in GPP using Account name/address on Passport contract
Eligible Software Products
•
Product on SVI Eligible part# list, sold via Passport.
•
New license revenue only. No renewals/reinstatement part numbers
•
License Fulfillment, Passport Contract Management & License Compliance sales are
not eligible
•
Products on matching sales order must match correct Brand Family registered in
GPP
Program Deadlines
•
Oppty must be registered & submitted for SVI 15 days prior to Sales Order date
•
Submit payment claim within 30 days prior to or 60 days after Sales Order date, and
prior to Expiration Date
•
Max of 30 days after oppty is approved to raise any questions/concerns/issues
IBM Software Value Incentive on PartnerWorld
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© 2011 IBM Corporation
Step 2: Register Competitive Replace SVI Opportunity
BP
BPRegisters
RegistersOracle
Oracle
competitive
replace
competitive replace
opportunity
opportunity
Designate deal as competitive
replacement in GPP
Select the “SUNATTCK” value from this list and
then click “OK”.
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© 2011 IBM Corporation
Step 2: Register Competitive Replace SVI Opportunity
BP
BPregisters
registersOracle
Oracle
competitive
replace
competitive replace
opportunity
opportunity
Submit equivalency form attachment in GPP, includes:
- Products and quantities of IBM & Competitive SW
- IBM PW ID for BP access to private web site with
incremental sales collateral (optional)
II. Competitive Product Configuration
Complete this section to describe the configuration of the competitive product that is currently installed
at your end user, and which you plan to displace with the IBM configuration described in Section 3.
Name of Competitive
Product
Method of Licensing
(i.e. Per User, Per
Server)
Quantities
of Licenses
Installed
Comments / Further Description
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© 2011 IBM Corporation
Step 3: Private Access to Competitive Assets
BP receives access to
competitive assets via web
private activity on PartnerWorld
Brands
Brandsmaintain
maintainmaterials
materials
…
…and
andaccess
accesslist
list
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© 2011 IBM Corporation
Step 4: Close the Deal, Demonstrate Replacement
BP closes deal &
demonstrates
replacement
Submit proof of two way communication with enduser for one of:
– Business Value Assessment findings (BVA)
– ROI Documents
– Migration Document
Background
Adobe Acrobat
Document
Use Case:
Alternative Solution(s):
Industry:
Private cloud – optimize infrastructure Do nothing
Financial Services
& speed application deployment
Customer Background & Challenges:
A global financial services provider utilizing WebSphere Application Server (Network Deployment) within a pSeries
hardware environment. Client was interested in a solution that would optimize existing test, staging and QA deployment
environments. Ongoing capital & operating expenditures were becoming problematic for the existing domains, as well as,
inconsistencies with application provisioning across the environments. Client requirements included optimization of
existing infrastructure to mitigate CAPEX, faster application deployment cycles, improving quality of production
applications, as well as, reducing operational support costs.
Solution
Click to launch
Sample of the expected
Content of a BVA, ROI or
Migration Document
WebSphere Solution:
WebSphere CloudBurst Appliance & WebSphere Hypervisor Edition
Benefits of the WebSphere Solution:
Speeds application deployment and dramatically reduces setup time for WebSphere environments from weeks to
minutes with pre-defined patterns and virtual images.
Incorporates more than 10 years of IBM software management best practices for cost-effective, rapid, and
repeatable application deployment.
Maximizes reuse of resources by automatically returning them to the shared resource pool upon completion.
Obtains optimal efficiency rates by managing individual user and group access.
Optimizes resource utilization with intelligent placement algorithms based on cloud activity.
Simplifies maintenance and management through a self-service management console.
Increases agility through removal of manual processes that hinder productivity.
Ensures security of data and environments with a physical appliance that serves as an encrypted vault.
Integrates fully with development and service management tools from IBM Rational® and Tivoli® for end-to-end
support.
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Business Value Assessment - Results
Cost vs. Benefit Summary:
Current Environment w/o WCA 5yr cost =$9.3M
Environment w/WCA 5yr cost = $5.8M
WCA software investment =$486k
WCA startup costs = $58.6k
5yr Savings = $3.5M
5yr ROI = 642%
Breakeven = approx (10) mths
Summary of Key Quantified Benefits:
15+% savings in infrastructure and related maintenance costs.
46% improvement in operational efficiencies – including faster application provisioning cycles.
31% reduction in software license acquisition and related maintenance streams.
57% improvement attributed to higher quality production code, as well as, reductions in lost opportunity costs.
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© 2011 IBM Corporation
Sell Only
Identify and Sell
Enterprise End User
BP Claims:
With
Customer
Reference
5% standard SVI fee
5% incremental competitive incentive
10% SVI Fees Total
10% standard SVI fee
10% incremental competitive incentive
20% SVI Fees Total
General Business End User
10% standard SVI fee
10% incremental competitive incentive
20% SVI fees Total
20% standard SVI fee
20% incremental competitive incentive
Largest
40% SVI Fees Total
Enterprise End User
BP Claims:
Without
Customer
Reference
5% standard SVI fee
3% incremental competitive incentive
Smallest
8% SVI Fees Total
10% standard SVI fee
6% incremental competitive incentive
Total 16% SVI Fees
General Business End User
10% standard SVI fee
6% incremental competitive incentive
16% SVI fees Total
20% standard SVI fee
12% incremental competitive incentive
32% SVI Fees
• BPs not required to fulfill, but direct proposal cannot use competitive trade up part numbers
• Reference claims require communication from & contact information for committed end-user
• Payment for eligible IBM brand part numbers mapped to equivalent competitive products
Example: 10 IBM licenses replace 8 competitive equivalent licenses. Result: Incremental SVI paid 8 licenses
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© 2011 IBM Corporation
The most common SVI and VAP G errors
Duplicates in IBM OM system
If the BP passes an opportunity to IBM, he must ensure that IBM noticer markes him as an Identifier (Source). If the deal is
know for IBM, the BP should check existing duplicate with the local rep prior to SVI eligibility submission
Incorrect Brand Family
The GPP revenue record(s) must reflect the correct Brand Family of the products ordered otherwise no fees are paid
SVI Sales Documentation not sufficient, Sales Docs waiver not understood
correctly
The provided evidence is demonstrating more fulfilment/compliance related activities than the sales/influencing ones
15 day-rule
The BP must submit opportunities in GPP at least 15 calendar days prior to sales order placement
(SVI only) 60 day-rule
The BP must request for payment not later than 60 calendar days after sales order placement
(VAP G only) Oppties not submitted for VAP G or
VAP G solution ID and GPP oppty # missing in the Sales Order
The BP must provide VAD with a VAP G ID and GPP oppty number (VAP G oppty must be in VAP G
with a submission date at least 15 days ago and APPROVED for VAP G eligibility)
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© 2011 IBM Corporation
Sales Documentation NOT required for SVI deals
below 90K EUR !!!
BUT ONLY IF:
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1.
All SVI eligible revenue records in the opportunity were approved with
an Incentive Fee Type of "Identify and Sell"; and
2.
The Business Partner of the opportunity is also the Reseller of the sales order; and
3.
There is only one Passport Advantage sales order for the opportunity; and
4.
The sum of the approximated end user entitled price or special bid price for all Sales Order Line
Items for new license part numbers is less than or equal to the Small Deal Sales
Documentation Waiver Threshold Value (for your country)."
© 2011 IBM Corporation
Where to go for help
Local Business Partner Representative
Local VAD
Libusa Strelcova, SVI & VAP Program Leader for CEE
+ 421 903 252 493, [email protected]
Value Advantage Plus and VAP for Government webpages on IBM PartnerWorld:
http://www.ibm.com/partnerworld/valueadvantageplus
http://www.ibm.com/partnerworld/valueadvantageplus /VAP and VAP G operations guide/
VAP and VAP G operations contact: [email protected],
[email protected] Phone: +353 1 8153330
Software Value Incentive webpages on the IBM PartnerWorld Web site
http://www.ibm.com/partnerworld/softwarevalueincentive
http://www.ibm.com/partnerworld/softwarevalueincentive, SVI Operations Guide and GPP
simulations
PartnerWorld Support Centre
[email protected],
[email protected] Phone: http://www-2000.ibm.com/partnerworld/pwhome.nsf/weblook/cpw_index.html
SVI admin team / Dublin & Bratislava (SVI enrollments/ payments)
[email protected],
[email protected] Phone: http://www-2000.ibm.com/partnerworld/pwhome.nsf/weblook/cpw_index.html
GPP & SVI admin team / Greenock (GPP and SVI opportunity management support)
[email protected],
[email protected] Phone: http://www-2000.ibm.com/partnerworld/pwhome.nsf/weblook/cpw_index.html
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© 2011 IBM Corporation
THANK YOU!
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© 2011 IBM Corporation