Competitive x86 Sales Play Activation Guide Script Thomas Lyons January 2010 Slide # 1 Hello, I am Thomas Lyons, from the STG WW Demand Generation Marketing team. Today, I will be taking you through the details of the Competitive x86 Takeout sales play. This sales play highlights STG’s system leadership and targets installed HP, Dell and Sun x86 systems customers. Now everyone who offers x86 systems – HP, Dell, Sun and IBM, uses processors for Intel. Some customers assume that because of this fact that all the systems are the same. Exposing this fallacy is the heart of the IBM System x value proposition and the heart of this sales play. 2009 was a big year for IBM System x – we took share from HP, Dell and Sun, and grew almost 40%. The x86 market place is a great opportunity for IBM. IBM’s systems lead in the market in performance, reliability and in TCO. IBM’s Systems offers the fastest, most powerful, most resilient servers in the market. And IBM is investing in systems – including new System x products each year. IBM System x has the roadmaps, HP, Dell and Sun do not IBM systems leadership is about more than hardware. IBM Systems offer our clients systems software that helps them optimize their systems and operations. Unlike HP, Dell and Sun, IBM offers clients a choice of systems that are optimized for specific workloads, not a blades for everything approach that others are pursuing. Let’s now look more closely at the Sales play. Slide # 2 The materials I will review with you in this presentation will include: The purpose of the sales play, an overview of the Sales plays which should help you better understand opportunity for IBM and where we see the best opportunities to win Our customers have proven the value IBM provides them, with strong references and compelling value propositions they have benefited from moving from HP, Dell and Sun to IBM’s System x. I will continue on to discuss the Reason of call and why customers and prospects might interested in talking with you and your sales and marketing teams. Throughout the presentation there is a rich library of collateral, documentation, selling resources and value propositions that support the Competitive x86 Takeout sales play. At the end of the call, you should have a good understanding of the opportunity and how to qualify clients. Slide # 3 The Sales Play activation guide is your starting point to get your marketing and sales teams off and running with the Competitive x86 sales play. The next few charts will break down your selling activities into simple steps that make selling IBM System x to installed HP, Dell and Sun customers easier and highlight specific customers where IBM has been successful. No sale can happen unless the seller can explain the solution in a high level conversation with an executive, explain the benefits of the IBM offering and talk about how other customers have achieved similar benefits. This Sales play activation guide provides a Reason of call, Elevator pitch, customer success stories and links to additional tools and resources for your sales and marketing teams to utilize to win the STG business at installed competitive x86 accounts. Slide # 4 We talked earlier about the situation that installed competitive x86 customers are facing. They want enterprise class systems -- performance, reliability, and flexibility. They want these things on x86 technology. Only IBM can offer that combination. The Competitive x86 sales play is designed to capitalize on the unique combination – the systems leadership and x86 technology that ONLY IBM offers to HP, Dell and Sun x86 clients HP, Dell and Sun x86 clients can lower their costs by switching to IBM System x systems -- - because of IBMs Systems leadership, TCO Leadership: Leadership in Price Performance, in Energy efficiency and in Virtualization. IBM can provide installed HP, Dell and Sun x86 clients with stable technology roadmaps, -- with hardware solutions that are workload specific, -- with systems that will meet their business needs – now and in the future. Now lets talk about where you should look, a typical target customers includes: Installed HP, Dell and Sun x86 clients, who have older racks and pre-Nahalem blades Clients that have concerns about where they can go next Clients that have low performing systems that cannot support growing application and database workloads Are experiencing costly and inefficient infrastructure with out of control budgets and server sprawl These are the clients that you should be looking to target with the Competitive x86 Sales Play. Slide # 5 Lets now look at what benefits clients can expect by moving from HP, Dell and Sun x86 Systems to IBM system x: First, IBM System x will help customers reduce data center costs, with a proven strategy to simply their infrastructure. An HP client with DL360 Systems can consolidate 11 systems onto one HS22, with an ROI as fast as 6 months, while reducing power by 93% and space by 95% If you had 500 older HP servers – you could consolidate them onto just 20 IBM 3950 M2 Servers HP clients can reduce costs Intelligently An ITG study showed the combined 3 year costs for IBM x86 servers and disk systems averages 16.4% less than DELL and 15.3% less than HP equivalents – that is real savings. Lets look at an Oracle Data Warehouse customer and Compare IBM System x to HP Blades solution – 1 TB – 6TB solutions built around IBM System 3850 M2 Servers and DS 3400 Disk Systems averaged 67% less than solutions built around HP Blades On the right side of this chart is a link to the IBM Systems Migration Assurance – a free set of IBM services to help clients PLAN, JUSTIFY and IMPLEMENT a migration from HP, Dell and Sun x86 Systems to IBM System x. Slide # 6 To make it easier to call on competitive x86 Customers, we have outlined 3 reasons of call to help you prepare with to discuss the opportunity with clients. Unlike HP, Dell and Sun x86, IBM System x can help Clients: 1 – Save over 93% on energy costs An HP client with 166 HP 2 socket rack servers can replace them with a single chassis of 14 HS22 Blades and save $64K in energy costs alone, that is a ROI less than one year. 2 – Lower Costs even further – up to 44% - using IBM Management tools Manage a large number of physical and virtual System x servers with IBM Systems director 6.1 and save on administration costs – up to 35% running windows and 44% on Linux. Deploy 80% more hardware per administrator – save $21K per year 3 – Reduce IT footprint by more than 95% Migrate 166 HP 2 socket 1U servers to IBM Bladecenter E & 14 HS22 – get the same or better performance with 5% of the space. That equals $19.9K of floor space savings. Total savings identified here is $95,000 per year. Slide # 7 On the left are the key seller actions that you should take to execute the play. What is most important here is the resources that are available to help you. The IBM Systems Consolidation Evaluation Tool (Alinean) , IBM Server Makeover Analysis, Migration Factory are tools that you can use to convince clients that moving to IBM will help them lower costs and improve service. For example, often companies know they have issues but they can not provide quantifiable details on problems such as system performance, bottlenecks or financial justifications to replace older systems with newer servers and storage. IBM has the tools to assist the customer in not only identifying the problem but justifying the solution. The IBM Systems Consolidation Evaluation Tool (Alinean) is used to provide a detailed cost analysis from HP to IBM – it documents the ROI and additional financial metrics that will help the customer quantify that there is a better way to invest in systems and the significant business benefit can be achieved as they make the change to IBM. The Salesplay dashboard is a single place you can go to get the latest selling materials, collateral, and references to help you in your calls. The IBM System x Competitive Portal links you to the latest System x competitive information. The IBM Systems Migration Assurance is a set of free tools to help you and your client plan, justify and implement a migration from HP. The pictures you see in the lower right - are all hot links – click on the sales play dashboard to get more information on Key Resources. Slide # 8 Slides 8 & 9 contain a story or narrative that you can use to prepare for meetings with customers. They outline steps to prepare to pursue installed HP, Dell and Sun x86 systems opportunities with the tools and value propositions IBM provides to our clients. 1- The first step is preparation: What is the reason we are calling on the customer? To discuss the significant business opportunity that IBM System x represents to installed x86 customers What is the IBM value? Market leading systems – Market leading Performance, TCO, fit for Purpose. A history of investing in Innovation, Technology and Systems. What is the offer (s)? The Systems Consolidation Evaluation Tool – it is free – it can help quantify the savings of moving from HP to IBM Systems. 2 The next step is setting up the customer call What is the customer probably thinking? What are the value propositions that you want to discuss to get the client to agree to a call, meeting, or further discussion Slide # 9 3. Have the direct and TCO Savings ready Use the Systems Consolidation Evaluation Tool – have printed output that show the real financial savings 4. Tell why IBM is unique – how we are different than HP See the examples – IBM is the leader in Systems, Virtualization, TCO and Systems Innovation – IBM System x builds a better system - does more with Intel Processors than Dell, HP and Sun. Together, these two slides help you understand the important questions customers are facing and the IBM proof points. It is a great story for IBM. Slide # 10 The 60 Second Elevator pitch should be the most valuable slide in this deck as it provides the foundation for a quick sales call or conversation to a prospect to stimulate their interest. It helps you prepare for a call, meeting, or further discussion with an installed competitive x86 customer. For executives, you have to be able to tell the story and get their interest quickly. Imagine you are in the elevator and only have 60 seconds: How do you get their attention in 10 seconds? Point out the significant business opportunity for x86 clients – to consolidate, to save lots of money – Talk about how other clients moved to IBM system x and how they reduced their costs. Talk about the real life examples we have with customers who moved from other x86 systems to IBM – savings of $64K in energy costs, $21K in management costs, $19K in floor space. -- $95K in total in this example – every year. Remind them that IBM has free services to help them evaluate their options. Ask them if you can follow up to discuss their specific situation. Asking questions to the customer, proposing IBM value propositions and offering tools such as Alinean and Migration Factory stimulate the customers interest in IBM and establish a commitment by the customer to allow us to run the tools to help them identify possible bottlenecks and cost improvements with IBM. Slide # 11 The last two pages in this slide deck are called the Sparklers - two pages with detailed information about the sales plays and links to additional information. Important sections on Page 11 are the Overview, Pain Points, Offerings and Sales Enablement for IBMers and Business Partners – where you can link to the play dashboard. Slide # 12 The second page of the play sparkler – with Seller call to action, detailed offerings and customer references. Slide #13 Special Notices Slide #14 Special Notices I hope the last 15 minutes has helped you : 1.) Know more about the opportunity for STG by replacing installed HP, Dell and Sun x86 servers with IBM system x 2.) Understand how strong the IBM value proposition for customers is for installed HP, Dell and Sun x86 server clients 3.) Learn how to get started with the play materials, references and tools Thank you for the time today for me to introduce you to the Competitive x86 Takeout Sales Play . Good Luck in 2010