IBM Technical Support Services (TSS) 1 Why Sell IBM Services? Increase your sales revenue and profit margins on every deal Deliver a total solution to your customers Every mission critical System x needs 4-hour response service! 2 Sell Up Front Increase customer satisfaction No surprises Consistent budgeting Cost avoidance Reduced down-time Free up your presales technical support team © 2011 IBM Corporation ServicePac vs. ServiceElite Contracts and Packaging ServicePac • Part numbered services – easy to order • Attached to System x/Blade Machine Type and Serial Number (one to one) • Fixed Ts&Cs / Scope • Prepay only • Fixed price • Available in System x configurators/ordering systems MA MA MA WSU WSU WSU RTS RTS RTS ServicePac ServicePac ServicePac ServiceElite • Consolidated hardware and software Technical Support contracts (one to many) • Fewer legal reviews and signatures • Term and prepay discounts • Contracted through ISAT Base Agreements Schedules General, HWMA, SWMA, BP Ts&Cs Attach to ICA and MSA Library card Services, fees, term, payment options Signature ICA ServiceElite MSA Cross platform Etc. HW MA Acc. Adv. Support Line 3 © 2011 IBM Corporation Support Delivery …same for ServicePac & Supportline Integrated Support Centers Consistent delivery ibm.com Entitlement Customer focused Skilled technicians System x Support Center Microsoft Support Center Lnx/VMware Support Center Raleigh Austin Beaverton Product Engineering 4 © 2011 IBM Corporation RTS (Remote Technical Support) ServicePac ibm.com/services/us/index.wss/so/its/a1000229 Part numbered support for easy attach to IBM hardware Highlights • Coverage Hours • HW installation/configuration support – 24x7 for critical problems (sev1) • Software support (including defects) – 9x5 for non-critical problems • Voice support through 800-IBM-SERV (opt2) • Term : 1 or 3 years • Unlimited calls and callers • System serial number entitled Packaging and Supported Products for System x for System x with Datacenter for Storage Devices • • • • “for System x” products, plus Microsoft Windows Server 2003 Datacenter Edition • • • • • • • • System x, Blade Server Windows and Linux High Availability Clustering IBM Director Suite for System x with VMware “for System x” products, plus ESX Server, Virtual SMP VMotion VirtualCenter Mgmt Svr / Agent Virtual Infrastructure Node (VIN) 5 for applications Microsoft SQL Server Microsoft Exchange Server Microsoft Small Bus. Svr. (Std) Microsoft Small Bus. Svr. (Prem) DS300, DS400 FAStT100 / DS4100 FAStT 200 FAStT 600 / DS4300 FAStT 700 / DS4400 FAStT 900 / DS4500 / DS4800 Storage Manager ServeRAID Manager © 2011 IBM Corporation Sample RTS Customer Calls Windows IBM Director Active Directory migration errors, when migrating from NT to Windows 2003 Enterprise Server. How do I update my IBM Director levels using Software Distribution? Why does Internet Explorer shut down when I click the refresh button? Why is IBM Director causing 100% CPU utilization? I applied a hotfix and now the server won't boot. Why are my event action plans not sending SMTP messages? Why are my cluster resources not coming online? Unable to discover IBM Director Agent. Linux System x How do I setup crashdumps in Linux? System won’t boot after updating driver. How do I install a Linux device driver? System randomly reboots. Do you have documentation on setting up NFS and the mount command? How do I configure my ServeRAID adapter? Can you help with my installation of Linux? Blade server does not turn off during Linux shutdown. VMware Storage How can I install a virtual machine from an ISO image? Unable to map LUNs to the host group My ESX Server crashed. Can you help me diagnose the panic? 6 What ServeRAID version is compatible with File system corruption after upgrading FAStT firmware. © 2011 IBM When adding host ports, I receive a message thatCorporation they already exist. System x/Windows/Linux/Storage RTS Portfolio Premium Managed Proactive Custom Technical Support Enhanced Technical Support Account Advocate Support Line Base Reactive support RTS ServicePac 7 Customized support Single Point of Contact for HW and SW calls (24x7) Optional add-on to Support Line Single Point of Contact Optional add-on to Support Line Single Point of Contact for SW calls (9x5 or 24x7) Unlimited calls/callers One contract for many systems Multi-year contracts available Unlimited calls/callers Attached to system/device 12 or 36 months of support Initial on-site visit Proactive/preventative advice Enhanced response times Service Elite Enhanced response Priority Handling Proactive support Service Elite Escalation/problem management Account management Monthly status calls Service Elite 24x7 or 9x5 coverage (all severities) Support on OEM systems Support for MS/Lnx Applications Service Elite 24x7 coverage (severity 1) 9x5 coverage (all severities) Part numbered Service Pac © 2011 IBM Corporation $ Impact of reduced IT availability due to a problem Proactive Support – Keep Outages From Happening – Designed to reduce the number of events. Prevention is ALWAYS better than a cure – Each event avoided = $517,000 savings for an average customer Reactive Support – Help Get The Systems Back Into Production ASAP – Each hour that the impact of an event is shortened = $110,000 savings for an average customer 8 © 2011 IBM Corporation Increase your business through Maintenance and Technical Support Offerings from IBM Five things to remember that will increase your business. Attach 1. Attach support offerings with every product sale. Renew Upsell Base Warranty 2. Upsell to a higher level of service Extend Add 3. Add Software Support 4. Extend to 4 or 5 years of support © 2011 IBM Corporation Build on the product sale through Maintenance and Technical Support Services Learn to attach service offerings to server sales, increase the value to your clients and your business - now and for the future. Upsell to Enhanced Technical Support Add Software Support* Upsell to a Warranty Service Upgrade Base Warranty Extend to 4 or 5 years Renew and protect what you have Attach Renew Upsell Base Warranty Extend * Support Line on Storage devices covers ‘how to’ and usage type questions / issues. Add © 2011 IBM Corporation Cost of downtime Attach Renew The cost of a major outage per hour: $6.5M for Brokerage in the Financial industry Upsell Base Warranty Extend Add $2.6M for Credit Card sales in the Financial industry $150K for Pay-per-view in the Media industry $113K for Home Shopping TV in the Retail industry Source: Standish Group Research $90K for Catalogue sales in the Retail industry $90K for Airline reservations in the Transportation industry Outage prevention Most directly addressed by proactive and premium services. Resonates with clients, but lacks emotional power in the abstract – Uncover “unexpected outages” that had a significant impact. – Focus on understanding the client’s view of how many outages they can tolerate, and how much risk they are willing to run. – Understand the client’s “nightmare outage scenario.” © 2011 IBM Corporation IBM Maintenance & Technical Support Services Technical Support Services Hardware & Software Maintenance Services © 2009 IBM Corporation Base introduction and objectives When you will have completed this Module you know and understand the following: – Be able to question the client around their business needs – Determine the need for Maintenance Services – Describe the clients’ business value of using IBM Hardware Maintenance Services – Explain Maintenance and Warranty Service Upgrades – Identify the different contracting models – Explain ServicePac and ServicePac Essentials 13 © 2011 IBM Corporation Businesses are under increasing pressure to reduce costs, improve service and manage risk. Rising cost pressures Higher service expectations Fewer resources 14 © 2011 IBM Corporation Current Challenges Managing the complex Meeting external/internal IT environment requirements Operating older Beating the competition ECONOMY technology CLIENT Managing customer Reducing Costs and product data Maximizing ROI © 2011 IBM Corporation Costs of downtime Availability in percent Annual downtime 99.9999 30 seconds Revenue loss 99.999 5 minutes Productivity loss 99.99 52 minutes Customer loss or dissatisfaction 99.9 9 hours Damaged reputation 99.5 44 hours Penalties 99 88 hours 95 18 days Expense to restore systems “online” © 2011 IBM Corporation So what do customers value from a hardware support provider? Processes designed to optimize performance Fast, efficient service to keep your systems up and running Support aligned to your business infrastructure and needs A history of integrity, expertise and long-term financial stability © 2011 IBM Corporation Why IBM? Our service professionals Leading breadth and depth of support expertise – More than 2,800 service professionals – In-depth training and skills enhancement – Access to specialists and engineers Client relationships built on trust Our support processes and tools Integrated service delivery model Virtually unparalleled support infrastructure – Proprietary knowledge bases – Leading-edge automation and tools – Patented parts management Proactive support – Problem prevention – Minimize outages IBM: Your trusted partner © 2011 IBM Corporation Services Integrated Support Infrastructure Remote Monitoring Call home feature Remote diagnostics System Monitor Call Home WW Parts Management System Service Delivery Planning Service Parts Supply Chain expertise Parts planning & procurement Logistics Reutilization Inventory Optimization Product support planning Maintenance package effectiveness Serviceability requirements Client call history Performance monitoring Customers Electronic access Self service Electronic problem submission Integrated IBM Maintenance and Technical Support infrastructure Response Coordination Service rep availability Call assignments Skill profiles Entitlement Worldwide Service Databases Account information Product information Service applications Problem history Installation planning IBM Service Rep Remote Support Centers Wireless comm. Service call reporting Parts ordering Tech info Education Problem determination Technical action plans Problem resolution 19 Users Entitlement Diagnostics Status Data DB DB PTF's/ Technical Cust APAR's Pubs. Profile DB Integration TSKBS Product Information Systems © 2011 IBM Corporation Hardware Services: Warranty Service Upgrades Key Points • HW Warranty covers HW product defect support • Warranty upgrades allow client to enhance the original base warranty by upgrading service level response times • Warranty options can be purchased during hardware acquisition or any time during the initial manufacturer's warranty period Base Warranty Service Option Warranty Service Upgrade Options • Service Level (includes parts and labor) • Service Levels (includes parts and labor) • 1 or 3 year warranty terms • 4-Hour response time • Same Day or Next Business Day response time • 24x7x2 Same Day Service • On-site Repair or Limited On-Site Repair (some parts are mandatory customer replacement parts) • 9x5x4 Same Day Service • 24x7x4 Same Day Service • On-site Repair (parts are replaced by IBM) • Response times are average objectives. Service levels available depend on the specific IBM product purchased © 2011 IBM Corporation Hardware Services: Post Warranty Maintenance Service Options • 24x7x2, same day service • Every day, around the clock, including holidays Key Points • MTS Maintenance options extend the support received during the original warranty period • MTS Maintenance options can be purchased during hardware acquisition, during the initial manufacturer's warranty period or after warranty has expired. • Onsite response objective of 2 hours • Typically used for business-critical systems, high-end machines • 24x7x4, same day service Most Popular • Every day, around the clock, including holidays • Onsite response objective of 4 hours • Typically used for business-critical systems, high-end machines • 9x5x4, same day service • 8 a.m. to 5 p.m. in your local time zone, Monday through Friday (excluding holidays) • Onsite response objective of 4 hours • Typically used for low-end machines, for older technologies, or with less critical systems • 9x5, next business day • 8 a.m. to 5 p.m. in your local time zone, Monday through Friday (excluding holidays) • Onsite response objective is to respond onsite before 5 p.m. the next business day © 2011 IBM Corporation Contractual Frameworks within Maintenance and Technical Support ServicePac® ServiceElite® Main Offerings Main Offerings • Warranty Service Upgrade • All MTS offerings • Hardware Maintenance Services • Software Support Main Features • Flexible contract Main Features • Can include many different systems • Pre-packaged • Annuity or Pre-paid • For one system • Auto Renew can be enabled • Fixed, One-Time-Charge Main Characteristics • Main Characteristics • Most used by Business Partners • Simple • Reflects desired support for all products • Pre-defined • “Service in a box“ • Flexible payment types • Hardware aligned 22 • One contract allows for business control © 2011 IBM Corporation ServicePac Highlights Key highlights Convenient Simple Standard Terms and Conditions Standard ‘off the shelf’ range of offerings and prices Service Options include: Up to 5 years of warranty and maintenance upgrade Upgrades and/or extends the standard warranty service 5x9 or 7x24 options Combined Hardware and Software support offering 23 © 2011 IBM Corporation ServicePacs Available For: Warranty Service Upgrades and Maintenance, with varying Service Levels to meet Customer Needs, for example: 7 days x 24 hours 5 days x 9 hours On-site Next Business Day Software Support, for example: Microsoft Support VMware Support Linux Support IBM Director Support Post Warranty (annual support extension for System x and BladeCenter) IBM Product Selector Tool - Web Version https://www-304.ibm.com/sales/gss/download/spst/servicepac 24 © 2011 IBM Corporation IBM ServicePac for Essential Support for System x and BladeCenter Provides a single source for your IBM System x and IBM BladeCenter® hardware and software support needs Features Benefits Single comprehensive service and price Minimizes the lost productivity caused by system downtime with fast, convenient exchange and repair services Unlimited calls and callers Software and Hardware usage support Hardware repair Frees up internal IT resources to focus on driving core business Supports mission-critical operations with roundthe-clock maintenance services Controls maintenance expenses with fixed-price services Ensures peak operation of existing equipment Why IBM? Round-the-clock service every day, including IBM holidays A packaged, part-numbered service that is easy to buy, sell and activate MTP03067-USEN-00 © 2011 IBM Corporation ServiceElite Highlights Key highlights Flexible terms & billing options Easy to add or remove HW or SW support Auto renew Ability to add multiple services to a single contract Service Options include: Pre-pay discount for multiple years Incentives for longer term contracts, adding multiple services and prepaid billing Allows machines to be added with coterminous contract end/renewal dates 26 © 2011 IBM Corporation ServiceElite Available For: All IBM and many OEM hardware platforms with standard Service Levels to meet Customer Needs, for example: 7 days x 24 hours 5 days x 9 hours On-site Next Business Day Software Support, for example: Support Line Account Advocate (AA) Enhanced Technical Support (ETS) Custom Technical Support (CTS) Both hardware and software support available in one integrated ServiceElite contract 27 © 2011 IBM Corporation Maintenance and Technical Support Summary – available contract options for ServicePac and ServiceElite ServicePac ServiceElite Features •Simple packaging •Part number driven; line item on your hardware order •Fixed price & fixed term make budget Planning Easy •Prepay •Electronic signature and activation required for Entitlement •Flexible terms •Non-IBM equipment •Auto Renew •Customer number driven •Flexible billing options •Enhanced tech support •Easy to add/remove HW & SWS •Supports addition of multiple services on one contract Benefits •Saves time •Easy to quote/sell/order •Faster sales cycle •Simply purchase additional coverage via part number No automatic renewals •Annuity streams drives more revenue •Improved value add & customer sat thru advanced notification of expirations •Improves account control and asset management Sold via •Part number •Contract Platform •System x, BladeCenter, Intellistation, Storage, Printers, Point of sale •System x, BladeCenter, Intellistation, Storage, Printers, OEM, Power, System p, System i, System z Offerings •Essential Support Warranty Service Upgrades •Essential Support Post-Warranty Maintenance •WSU - Warranty Service Upgrades •MA - Post Warranty Maintenance •Remote Technical Support •Installation/Implementation Services •WSU - Warranty Service Upgrades •MA - Post Warranty Maintenance •Support Line •Software maintenance ( i,p,z) •Enhanced Technical Support •CTS & ESO •Account Advocate •Microcode Support Services •Hard Drive Retention © 2011 IBM Corporation Maintenance and Technical Support Summary– available contract options for ServicePac and ServiceElite ServicePac ServiceElite Terms •WSU - 3,4,5 Yrs •RTS - 1 & 3 YR •MA – 1 & 2 YR •Flexible Discount •Prepay applied in one-time charge •No credits or proration of unused years •Pre-pay discount for multiple years and tiered pricing •Provides incentives for longer term contracts, adding multiple services and prepaid billing •Allows machines to be added with coterminous contract end/renewal dates •Special bid eligible under unique situations (i.e., TEP, HPDA) ServicePac or ServiceElite? •Small opportunity; few machines •No management of assets •Customers that require part number format to purchase •Larger install base •Customers wanting one contract that could include multiple locations •Rollouts •10+ Servers for software support = better pricing •Customer needs coterminous billing •Customer needs asset management Activation •Performed via web (details in order confirmation email): •http://www.ibm.com/servicepac •IBM activates service upon receipt of signed contract and acceptance by IBM Entitlement •Provide machine type and serial number to 1-800IBM-SERV •Provide machine type and serial number or customer # to 1800-IBM-SERV © 2011 IBM Corporation Selecting customers for Hardware Maintenance Services Hardware Maintenance is a cross-industry offering. It applies to small customers as well as large enterprises. How do you identify customers for Hardware Maintenance: – Prime targets are clients purchasing new equipment – Clients that want the enhanced security of getting both IBM and non-IBM support from a company recognized a leader in the service industry – Client accounts with products still under warranty or no contract for on-going support – Existing Maintenance accounts – Clients who have had unsatisfactory experiences with their third-party maintainers 30 © 2011 IBM Corporation Qualifying questions when working with clients Ask about: Business objectives and availability targets Help needed to maintain their hardware environment Desire for a single, highly qualified maintenance service provider Help in reducing the financial and customer satisfaction risks Maintaining the IT-systems critical to achieving organizational growth Needing a total maintenance solution, including both IBM and non-IBM hardware support 31 © 2011 IBM Corporation Call to Action and Qualifying Questions Qualifying questions are: – Is the workload of the machine mission critical for your business? – Are the basic or standard levels of support sufficient for your business needs? – Do you feel comfortable and are there skilled people available at your location that can maintain your service level objectives? – Would you be interested in a support contract backed by the one of the world’s premiere service companies with a long and sustained history for exceptional support? 32 © 2011 IBM Corporation Business Partner Education Series “Using IBM Financing to Drive TSS Multi-year Sales" TEAMING WITH IGF Presented by Stephen Dunn Ingram Leasing Specialist: Bill Papaj 800-456-8000 X65285, william.papaj@ingrammicro.com IBM Technical Support Services Channel Sales © 2009 IBM Corporation TEAMING WITH IGF TO GROW YOUR BUSINESS Financing Multi-Year Prepaid Maintenance Clients are universally challenged with operating cost reduction Multi-year Price Protected Solution Financed with IGF Restructure Existing Contracts Recognition Up-Front for Multi-Year Prepay Increase Revenue and Margin 3-5X © 2011 IBM Corporation Value Statement Business Partner Value Statement Upfront Revenue and Commissions Recognition of Entire Contract – – – – Increase revenue and margin by 4x Protect Margin Avoid DSO (Days of Sales Outstanding) IGF Fees Lock out competition for a longer period of time. – Protect account foothold by “sweeping” the location – Reduce renewal request and focus on hardware/solution sales Increase Revenue by adding Enhanced Services – Account Advocate – Enhanced Technical Support (ETS) – Customer Technical Support (CTS) Improve Client Satisfaction Client Value Statement Reduce maintenance expense over the term of the contract – Take advantage of term and prepay discounts – Avoid 3-5% in annual price increases due to price protection – Add new equipment to contract mid-term using pricing that was in effect at original contract start date Reduce administrative and processing costs of managing yearly contract renewals – Spend more time on core business and priority projects – Save time by getting a single approval instead of one each year – Reduce the chance of costly lapse in coverage – Allow the flexibility of paying on a quarterly or annual billing frequency Ability to add and delete machines from productive use – Original IGF invoices will be fixed. – Credit is provided by business partner and may be applied to IGF invoice – Debit may be financed conterminously © 2011 IBM Corporation Deal Scenario Multi-year Prepaid Maintenance Financed with IBM Global Financing 5 Year Prepay Estimate Estimated Annual Payment Estimated 5 Year Cost (without discounts) Less Term Discount - 6% Less Prepay Discount - 7.83% Estimaed Prepay using Term and Prepay Discount Annual Price Increases Estimated Cost / Savings 1 Year Prepay (assumes annual price increases) 5 Year Peridioc Billing with Full Price Protection - 6% Uplift 5 Year Prepay Financed with IGF Easypay 1 Year Renewal vs Periodic Billing Savings Estimated End User Savings (%) 1 Year Renewal vs IGF Easypay Savings Estimated End User Savings (%) 5 Year Periodic Billing vs IGF Easypay Savings Estimated End User Savings (%) $ $ $ $ $ 100,000 500,000 470,000 433,199 433,199 5% Year 1 100,000 99,640 98,319 360 $ $ $ $ Year 2 $ 105,000 $ 99,640 $ 98,319 $ 5,360 Year 3 $ 110,250 $ 99,640 $ 98,319 $ 10,610 $ $ $ $ $ 1,681 $ 6,681 $ 11,931 $ $ 1,321 $ 1,321 $ Estimated Margin stated by Business Partner Estimated Margin 1 Year Prepay (assumes annual price increases) 10% Year 1 $ 10,000 Total Margin with 5 Year Prepay Financed with IGF 5 Year term Prepaid Margin IGF Fee - (.75% of Amount Financed) Total Margin with Prepaid and Financed with IGF $ $ 1,321 $ Year 4 115,763 99,640 98,319 16,123 Year 5 $ 121,551 $ 99,640 $ 98,319 $ 21,911 Total Cost $ 552,563 $ 498,200 $ 491,594 $ 54,363 9.84% 17,444 $ 23,232 $ 60,969 11.03% 1,321 $ 1,321 $ 6,606 1.33% $43,320 3,249 46,569 © 2011 IBM Corporation Proposal Example Benefits of a 5 Year Prepaid Maintenance Contract with IBM Global Financing Easypay Client’s long term maintenance expense will be significantly reduced – Cumulative cost savings over 5 years total $60,000 – Prepaid IBM Maintenance contract billed Annually with IBM Global Financing Easypay Client will Lock-in your current price longer while avoiding 3% to 5% annual price increases – Current renewal process does not lock-in pricing – New machines are added to the contract based on the contract start date Fixed Invoice from IGF will simplify Client’s maintenance budgeting process – Annual payments billed in advance using IGF Easypay at 0% effective interest rate – Sign an IGF Services Software Financing Agreement Client can easily add and delete machines through the life of the contract – Credit is provided by Business Partner using the current process – Debits may easily be financed on a co-terminous basis or may be paid in cash © 2011 IBM Corporation Financial Summary of Prepaid Maintenance Solution 5 Year Prepaid Maintenance Option Total amount paid with annual renewals Total amount billed by IGF $552,563 $491,594 IGF EasyPay Total cumulative savings Avoid annual price increases of 3- 5% New machines are added based on Contract Pricing $60,969 Cash Flow Comparison Assumes Annual Price increases of Year Year Year Year Year 1 2 3 4 5 Annual Renewal $100,000 $105,000 $110,250 $115,763 $121,551 5% IGF Annual Billing $98,319 $98,319 $98,319 $98,319 $98,319 Sign an IGF Software Services Financing Agreement –Billed annually in advance –Applicable sales tax is not included © 2011 IBM Corporation Changes in Requirements to Sell IBM Maintenance Services VAE requirements to sell maintenance on: Power Systems, including IBM System i and IBM System p (except Models p505 and p510), have been replaced with Customer Value. IBM Point of Sale (POS) have been modified and include enhanced sweep provisions. IBM System z remains unchanged. There is no VAE or Customer Value requirement on IBM System x or IBM System Storage, nor a prior hardware sale requirement. There is no VAE or Customer Value requirement on any IBM ServicePac, nor a prior hardware sale requirement. 3/16/2016 39 © 2011 IBM Corporation Additional Sales Opportunity Through “Sweep” Business Partners may sweep uncovered With qualifying hardware (HW) sales in Group: hardware in the GROUP Business Partners may sweep uncovered hardware across the Customer Enterprise Customer Establishment in Group(s): in Group(s): 1 2 IBM System z IBM Power Systems (including 1 IBM System i and IBM System p, but excluding Models p505 and p510) IBM System p (Models p505 and 2 3 2 and p510 only) and 4 4 IBM BladeCenters 3 IBM Point of Sale (POS) 3 44 IBM System x * IBM System Storage * 4 3 and 4 4 * Maintenance may be sold independent of a prior hardware sale 3/16/2016 40 © 2011 IBM Corporation