IBM Business Partner Growth Incentive (IBM PGI) Program Guide for IBM Business Partners Worldwide December 2014 Version 1.0 The current version of this document will be available from the News section at the PGI web site accessed via http://www.ibm.com/partnerworld/pgi. Changes in this Document Version 1.0 created December 2014 IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 2 December 2014 Overview of IBM Business Partner Growth Incentive (PGI) IBM PGI is designed to reward IBM Business Partners who make an investment in IBM skills and certifications and have the ability to successfully sell and deploy IBM solutions. IBM PGI is a program offering you a structured path to progress toward becoming part of a select international community of IBM STG Specialty Business Partners. Achievement against your IBM PGI quarterly revenue and skills targets will move you closer to achievement of IBM Specialty while you, your colleagues and your company become eligible to receive financial and education benefits. Participation in IBM PGI Your company must be included in IBM PartnerWorld and hold an IBM Business Partner Agreement (BPA). If it's not – you must join and obtain your Country Enterprise ID (CEID). If you do not already have contractual alignment with a Distributor, you will be asked to nominate your preferred IBM Distributor. Sales completed via this Distributor will contribute to achievement of your quarterly revenue target. In some regions you may also be issued any earnings via your nominated IBM Distributor. We also recommend that you discuss growth plans, promotions, enablement and skills with your preferred Distributor to ensure that an appropriate development plan can be agreed. After you complete a login to the IBM Business Partner Growth Incentive (PGI) web site using the same details you use to access IBM PartnerWorld, you must: Agree your target for each participating track – you will see the list of available tracks (typically a track will correspond with an IBM brand) at the PGI web site. Remember, achievement against your agreed targets will be based on the sales completed via your preferred Distributor. Finally accept the PGI terms and conditions (the details within this guide). You must confirm your participation in IBM PGI by the end of month one (1) in each applicable quarter. During the quarter you may enter the IBM PGI web site to see your progression toward achieving your skills and revenue targets. You will also see the potential earnings for achieving each target. Summary Benefits for IBM PGI Enablement Support Sales Rebate Skills Incentive Roadmap to Specialty 2 Vouchers giving 80% discount on course registration PLUS 2 Vouchers giving 100% discount on Certification testing Uncapped rebate based on quarterly revenue achievement Opportunity to receive an incentive for achieving skills targets. A series of skills targets and revenue growth targets presented each quarter The program web site will include details of each skills target and earnings potential Achieve your growth targets and you will progress toward the skills and revenue criteria for your area of Specialization Vouchers will be available for each new Skills Target The program web site includes a revenue and rebate table showing earnings potential each quarter Other benefits which become available as a result of your company participating in PGI include, Individual skills development roadmaps leading to Certification and opportunities to earn rewards for employees of your firms with Know Your IBM (www.ibm.com/partnerworld/knowyouribm); and IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 3 December 2014 Market Growth Funds (MGF) Program which provides a predictable pool of funds to assist you in creating new market opportunities, building your IBM Server and Solution sales pipeline, supporting your efforts to win new business and develop your skills. You may be eligible for MGF if you have sufficient IBM STG revenue. Use of MGF is subject to the Terms and Conditions for MGF. Full details of the MGF program are available via the Incentives and Promotions pages in IBM PartnerWorld (https://www304.ibm.com/partnerworld/wps/servlet/mem/ContentHandler/pw_com_iap-incentivesand-promotions) Note: MGF is 100% paid by IBM, with no match required of the qualifying Business Partners. Benefits are provided to eligible Business Partners as one allocation across all STG platforms. Scope and Purpose of this Operations Guide The purpose of this document is to provide detailed guidance for Business Partners who have a longer-term objective to progress toward specialization in one or more IBM STG brands. And who wish to develop to STG Specialty at their own pace. In addition, this guide provides information to IBM STG Specialty Business Partners, who wish to achieve a new STG Specialty, or for those who did not renew their IBM Specialty status. This guide may also reference other operations guides for Business Partners participating in, or interested in applying and being approved to participate in those programs. This guide is structured into the following major sections: 1. Introduction and Overview 2. Scope and Purpose 3. Other IBM Programs 4. Eligible Products 5. Registration and Quarterly Target Acceptance 6. IBM PGI Operations and Process 7. Appendices Note: Some links listed in this document require PartnerWorld® membership and signing in to PartnerWorld to access the information. You can access IBM PartnerWorld® at www.ibm.com/partnerworld. Relationships with Other Programs Business Partners are encouraged to take part in other IBM channel initiatives, offerings or incentives which are not mutually exclusive with IBM PGI. This includes programs such as Market Growth Funds (MGF) and Know Your IBM (KYI). Mutually Exclusive Programs IBM Business Partners in a PGI track, must not have achieved STG Specialty in the related brand. IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 4 December 2014 Failure to notify IBM of your participation in a mutually exclusive initiative, offering or incentive is grounds for your removal from IBM PGI. Eligible Products Eligible IBM Power Systems and IBM System Storage hardware and associated software products listed in the applicable Product Exhibit list, which you are authorized to sell, as related to each IBM PGI track in which you participate. This includes: Special Bid and Value Seller terms (including Frame Agreement and IVO offerings) Transactions conducted under a Transaction Agreement Managed outsourced services, when the Business Partner retains title of the system Products purchased for outsourcing purposes Model Upgrades and ‘after-market’ (MES) orders Internal Use products Technology Access Program products Used Equipment And excludes: Orders for Try and Buy equipment, until such time that the end user purchases the product Products purchased in countries where you do not have a contract with IBM IBM Product Exhibits may be accessed online at: http://www.ibm.com/partnerworld/wps/pwselector.jsp?componentfinder/PREXHPW/hideFac et=false/pageTitle=Exhibits &navcat=PW Ent Exhibits REGISTRATION AND QUARTERLY TARGET ACCEPTANCE This section provides further details of the registration process for the IBM PGI offering and the process to accept targets for each earnings period. Registration Process Registrations for IBM PGI must be completed for every country in which you wish to participate. You must have a physical location in each country in which you register. The first step in registering to participate in IBM PGI is to become a member of IBM PartnerWorld® and to hold a current IBM Business Partner Agreement (BPA) for Solution Providers to remarket the applicable offerings. The IBM PartnerWorld® web site address is www.ibm.com/partnerworld. If you do not have a BPA, please complete the application form available via https://www.ibm.com/partnerworld/wps/servlet/mem/ContentHandler/pw_com_jnw_sell. IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 5 December 2014 (It may take up to 10 business days for this approval process.) Your company must be a member of IBM PartnerWorld® and have a BPA in each country in which you plan to participate in IBM PGI, and you must maintain these in order to remain eligible for the IBM PGI program. Your company’s Country Enterprise ID (CEID) which is assigned when your company registration to IBM PartnerWorld is accepted, will be the unique key which determines your company achievement against all targets in PGI. Joining PGI for the first time The application must be made via the IBM PGI web site at: www.ibm.com/partnerworld/pgi. Follow these steps to complete your registration: 1. If necessary, decide which will be your preferred IBM Distributor. Sales completed via this Distributor will contribute to achievement of your quarterly revenue target. In some regions you may also be issued any earnings via your nominated IBM Distributor. a. We also recommend that you discuss growth plans, promotions, enablement and skills with your preferred Distributor b. And agree an appropriate development plan can to achieve your skills targets 2. Login to the IBM Business Partner Growth Incentive (PGI) web site with the same details you use to access IBM PartnerWorld. If you are the first employee from your company to access PGI, you will become the individual who is authorized to agree targets and accept the associated Terms & Conditions for IBM PGI. At the IBM PGI web site: 1. Agree your target for each participating track – you will see the list at the program web site. Targets are calculated automatically within the IBM PGI system and are based on your historic achievement as reported to IBM by Distributors through which you purchased eligible IBM products. If PGI has no history of your revenue, a system-define minimum target will be assigned. 2. Only the sales of eligible products sourced via your Preferred Distributor (in some regions, this is known as ‘Aligned Distributor’) will be counted toward your quarterly revenue achievement against target. 3. Review the Skills Target where presented for each track. Make sure that you plan the relevant enablement activities with your Preferred Distributor giving plenty of time for your achieved skills to be reported to IBM. 4. Finally accept the IBM PGI terms and conditions. 5. You must confirm your participation in IBM PGI by the end of month one (1) in each applicable quarter. IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 6 December 2014 Quarterly Target Acceptance You must confirm your target acceptance by the end of month one (1) in each quarter that you wish to participate in IBM PGI. If you were active previously in IBM PGI you will be notified via email at the start of each quarter when your new targets become available. Revenue targets are based on the average of your achieved revenue for the products corresponding to each track, during the previous four (4) full quarters. If IBM has no history of revenue reported for your company’s CEID, a system defined minimum revenue amount will be assigned. Skills targets consisting of a number of formal IBM Certifications or Skills may also be presented. The skills target will be part of the full skills and Certifications required to achieve STG Specialty in one of the participating tracks. You can decide how rapidly each skills target is achieved. A new skills target will be offered at the start of the quarter after an existing skills target has been completed. Benefits associated with your Skills target achievement will also be processed during the following quarter. Payments for achieving the Skills Target and Revenue Target are not dependent on each other. So you can receive a payment for achieving your Skills target without having achieved your revenue target, and vice versa. The PGI web site will automatically switch off target acceptance after the deadline for each quarter. You are permitted to change your Preferred Distributor once during any 12 month period. In NA and GCG you have a contractual alignment and must follow the announced process. In all other countries, you have the option to change your Preferred Distributor as part of the Quarterly target selection process. This option will be greyed if you have already made a change during the 12month period. OPERATIONS This section provides guidance on the operational aspects of the criteria related to the IBM PGI program. Requesting Support Questions concerning IBM Business Partner Growth Incentive can be submitted in a number of ways: To your Preferred Distributor, via IBM PartnerWorld Contact Services – look for a variety of ways to get help from PWCS at the IBM PartnerWorld web site: http://www.ibm.com/partnerworld; to your IBM representative; or to the IBM PGI support team at: support@gotopgi.biz IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 7 December 2014 IBM PartnerWorld® Membership You must be a member of IBM PartnerWorld® in every country in which you wish to participate in IBM PGI, and you must maintain your IBM PartnerWorld® country membership in order to remain in IBM PGI. Termination from IBM PartnerWorld® will result in immediate removal from IBM PGI and loss of all associated benefits. The IBM PartnerWorld® website address is www.ibm.com/partnerworld. How Measured: You have an IBM PartnerWorld® country enterprise ID for each country. Time Frame: Before you agree your quarterly target for IBM PGI. Online Registration All non-STG Specialty Business Partners can complete their online registration for IBM PGI. Based on your achievement, you become eligible to associated target-based rewards. How Measured: Completion of login via the IBM PGI web page at: http://www.ibm.com/partnerworld/pgi. Time Frame: At time of becoming active in PGI. Quarterly Revenue Target For each quarterly period you choose to participate, IBM will calculate a target based on your historic revenue as reported to IBM by your Distributor. IBM will calculate a quarterly average revenue and apply a small growth amount which will place you within a defined revenue target band. You may view the expanded target and earnings table to determine higher target bands and associated higher earnings at the PGI web site. How Measured: If you have no historic revenue reported against your CEID, a system defined minimum target will be assigned to you. Time Frame: When you become active in PGI for the applicable quarter. Skills Target In addition to a revenue target, you may also be presented with a skills target consisting of multiple Certifications or on-line exams. Achievement of your presented skills target is designed to help you to progress toward the STG Power Systems or STG System Storage Specialty. Only one Skills target will be in effect per PGI track. Achievement of the Skills Target will result in a new target during the following quarter, until you have achieved all required skills for the defined track. IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 8 December 2014 How Measured: Each skills target is part of the full Certification and skills criteria for the defined track. Typically, though not always, related to STG Specialty. Time Frame: When you become active in PGI for the applicable quarter. Quarterly target acceptance Quarterly target acceptance is necessary before the end of month one (1) of each quarter. Otherwise no rewards are earned or are payable for that period. The program web site will block target acceptance after the deadline. How Measured: Your company’s PGI Administrator must submit a Target Acceptance form via the PGI web site. As part of this quarterly submission, your PGI Administrator also confirms acceptance of associated Terms & Conditions. When targets have been accepted, the status in PGI will be changed to confirm “Targets set”. Time Frame: Before the quarterly deadline - by end of month one (1) in each quarter of participation. Earnings for Quarterly Revenue achievement During each quarter, your achievement under this program will be based on the value of the eligible products IBM invoiced to your Preferred Distributor(s), and which the Distributor(s) subsequently reported to have resold to you against your CEID. The PGI web site will display this calculated achievement against your quarterly target. And, based on the Target and Rebate grid available at the PGI web site, you will be presented with an estimate of your earned rebate. If you overachieve against your target, your earnings will also increase based on the revenue and target band at which you finish the quarter. The actual amount you have earned will be subject to final verification by IBM after the end of each quarter. How Measured: The method of converting reported sales-out data into actual sales out revenue may vary by product and by when the reported sales are received by IBM from your Preferred Distributor. Only sales-out revenue based on these reports will be used to calculate your attainment. No other source of sales out revenue will be considered. IBM has no knowledge of the actual amount you paid in any transaction. All purchases of eligible products during the period of the program and reported to IBM will be aggregated towards your achievement. Time Frame: Revenue updates are processed on a regular basis during each quarter. The assessment of actual earnings is subject to final verification by IBM after the end of each quarter. Payments are expected to be issued by IBM by the end of the following quarter. Bonus based on achieved skills In addition to a regular revenue growth target, you may also be eligible for a skills target. Each such target will consist of a number of required Certifications or exams. Achievement of all IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 9 December 2014 Certifications and exams included in the target will entitle you to receive a rebate of up to 1500 USD per target. The exact value will be displayed at the Program web site. After you have achieved an assigned Skills target, you become eligible for a new target in the quarter following. Just one Skills target may be in effect per PGI track during any given quarter. Your progress against the assigned Skill target will be shown at the Program web site. How Measured: Achievement of Certifications against your skills target is determined by the date on which the applicable Certifications are visible in your IBM PartnerWorld company profile. Achievement of other online exams, such as those for Cloud & Analytics Sales Enablement (CASE) are determined by the date of completion as available via the CASE web site: http://www.ibm.com/services/weblectures/systems/stgcase/ Time Frame: Bonus payments are processed during the quarter after all items in the skills target are marked as completed. Payments are expected to be issued by IBM by the end of the following quarter. Education and Certification Test Vouchers As a participant in the PGI program your company will be eligible to receive the following: Class Vouchers which can be used for eligible STG technical training and technical events Certification Test Vouchers, which can be used to take eligible STG IBM Professional Certification exams administered by Pearson VUE PGI Class and Certification Vouchers can only be redeemed for STG technical events, classes and certification exams associated with STG PGI Class Vouchers offer an 80% discount to a maximum amount of 2100 USD on the published tuition on eligible STG technical courses and events Certification Test Vouchers offer a 100% discount on the published price of eligible STG Certification exams PGI vouchers are automatically sent upon achievement of necessary criteria as published at the PGI web site Details of qualifying IBM events will be communicated via IBM PartnerWorld and may include the annual IBM PartnerWorld Leadership Conference as well as IBM technical conferences. IBM STG Training is delivered by a network of IBM Global Training Providers (GTPs). Visit the IBM Training web site (http://www.ibm.com/training) for further details. You will be eligible for two (2) Education Vouchers and two (2) Certification test vouchers to support achievement of each new Skills Target that you accept when presented to you in PGI. You will be notified of how to access your available Vouchers directly by the IBM Vouchers team via email from: voucher@us.ibm.com To see the schedule of available STG classes and events, Business Partners can go to: http://www.ibm.com/training To register for an IBM Certification Test at Pearson VUE, eligible Business Partners can go to: http://www.pearsonvue.com/ IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 10 December 2014 The PGI web site will also contain the status of any such Vouchers issued to your company. Terms and Conditions apply to Voucher usage. Here is a summary of the key points: Class Vouchers expire at the end of the calendar year, midnight GMT on 31st December. Certification test Vouchers expire 12 months after the date they are issued.. Vouchers used for a class must be turned into the class instructor the first day of class Vouchers used for an IBM event must be turned in at the Registration desk on the first day you attend Vouchers are not transferable to your clients One voucher may only be used against the costs of one student’s enrolment and only one voucher may be used per student Vouchers cannot be used to cover travel and living (T&L) Voucher discounts cannot be applied to late cancellation or no show fees Vouchers cannot be combined with any other IBM discounts Vouchers cannot be redeemed for non IBM STG IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 11 December 2014 APPENDICES IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 12 December 2014 Appendix A – Currency conversion rate table COUNTRY Local Currency (LC) LC / 1 US$ Abu Dhabi Dirham 3.6726899 Australia Dollar 1.6129032 Austria EURO 1.0000000 Belgium EURO 1.0000000 Brazil Real 2.3000000 Canada Dollar 1.5000000 China Renminbi 8.4000000 Cyprus EURO 1.0000000 Czech Republic Koruna 20.0000000 Denmark Krone 7.6000000 Dubai (UAE) Dirham 3.6724000 Estonia EURO 1.0000000 Eurozone EURO 1.0000000 Finland EURO 1.0000000 France EURO 1.0000000 Germany EURO 1.0000000 Greece EURO 1.0000000 Hong Kong Dollar 7.8000000 Iceland Krona 87.5000000 India Rupee 45.0000000 Ireland EURO 1.0000000 IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 13 December 2014 Israel Shekel 4.1000000 Italy EURO 1.0000000 Japan Yen 105.0000000 Latvia EURO 1.0000000 Liechtenstein Franc 1.6300000 Lithuania EURO 1.0000000 Luxembourg EURO 1.0000000 Macao Pataca 7.9904115 Malaysia Ringgit 3.5000000 Namibia Rand 7.0000000 Netherlands EURO 1.0000000 New Zealand Dollar 2.0000000 Norway Krone 8.3000000 Poland Zloty 3.0000000 Portugal EURO 1.0000000 Slovakia EURO 1.0000000 Slovenia EURO 1.0000000 Spain EURO 1.0000000 Sweden Krona 8.6000000 Switzerland Franc 1.6300000 S. Africa Rand 7.0000000 S. Korea Won 1000.0000000 Taiwan Dollar 30.8000000 IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 14 December 2014 Thailand Baht 34.0000000 U.K. Pound 0.6451613 IBM BP Guide for Business Partner Growth Incentive (PGI) v1.0 15 December 2014