Cloud & Smarter Infrastructure Changing the Game with C&SI SaaS Solutions for Business Partners © 2014 IBM Corporation Agenda SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models 2 IBM Confidential © 2013 IBM Corporation 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 3 IBM Confidential © 2013 IBM Corporation …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 4 *Source: Google & Compete B2B Customer Study, June 2012 CIO CTOs IT Managers IT Operations Manager Data Center Manager Developers Technical Leaders System Administrators IT Operations Data Scientists Users IBM Confidential © 2013 IBM Corporation How can SaaS help? • • • • • • 5 Improved TCO due to lower infrastructure costs (Capex), low labor costs (Opex) 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 IBM Confidential © 2013 IBM Corporation 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 6 SaaS On Prem SaaS IBM Confidential © 2013 IBM Corporation 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 7 IBM Confidential © 2013 IBM Corporation Agenda SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models 8 IBM Confidential © 2013 IBM Corporation IBM Service Exchange – Digital Presence • • • • Readily available Continuous delivered Scaling to needs Immediate Feedback Learn 9 Explore Try Use / Buy Extend IBM Confidential Support © 2013 IBM Corporation Why is this important to YOU? 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! 10 IBM Confidential © 2013 IBM Corporation Links – Service Engage, IBM, PartnerWorld IBM Application Performance Management (SaaS) increases your end user satisfaction with complete visibility and control of your application environment. Pain points How this offering helps User scenarios Typical buyers • • • • 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 • 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% 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 • Are your app teams decentralizing and gaining independence? • Are your app lines of business moving to an OpEx model? • 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 11 IBM Confidential © 2013 IBM Corporation Links – Service Engage, IBM, PartnerWorld 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 • • • • 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. • 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 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) 12 IBM Confidential © 2013 IBM Corporation Links – Service Engage, IBM, PartnerWorld 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 • • • • • • 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. • • 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 • IT Manager: Reduce infrastrasture costs List Price Competitors Competitive Differentiators Questions to ask • • Legacy IT vendors (e.g. BMC, HP, CA) are digging deep to re-work 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? • Emerging vendors (e.g. ServiceNow) are offering 1) Light-weight “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 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? • $99/month per Authorized User $297/month per Concurrent User Entitlement Price • • 13 $49/month per Authorized User In addition to avg S&S cost of $26//month per Authorized User • Are your lines of business moving to a SaaS and/or OpEx model? IBM Confidential © 2013 IBM Corporation Links – Service Engage, IBM, PartnerWorld Maximo Asset Management (SaaS) Business Case Packaging & Pricing Part # Product Name List Price (USD) D1338LL Maximo Asset Management (Saas) Authorized User -- same metric as on- premise pricing – end users are no charge. $159 per user per month D133ALL Maximo Asset Management (Saas) Authorized User – Overage $191 per user per month D132RLL Maximo Asset Management (Saas ) Concurrent User -- same metric as on- premise pricing the maximum number of users who will be logged onto the system. End user are no charge. $477 per concurrent user per month D1331LL Maximo Asset Management (Saas ) Concurrent User - Overage $573 per concurrent user per month D133BLL Maximo Asset Management (Saas Non-production Instance - one non-production instance is included with the base subscription – this is for additional non-production instances. Will support 30 concurrent users. $3,300 per instance per month D133DLL Maximo Asset Management (Saas ) Non-production Capacity Add-on Instance - the base nonproduction instance supports 30 concurrent users, this option adds increment of 30 concurrent users. $3,300 per instance per month D1332LL Maximo Asset Management (Saas) Scheduler Authorized User – optional, adds the ability to use Scheduler to the base subscription $40 per authorized user per month D1337LL Maximo Asset Management (Saas) Scheduler Authorized User - Overage – optional, adds the ability to use Scheduler to the base subscription $48 per authorized user per month Service Level Agreement – an optional, but no additional charge, availability SLA for 99.8% availability exclusive of planned downtime. No additional charge There are no S&S parts for Saas Part numbers 14 IBM Confidential © 2013 IBM Corporation Target SaaS Customers Application Performance Management IBM Application Performance Management Entry (SaaS) $25/month per Average Managed Virtual Server (aMVS) Target: Use existing deployments of IBM middleware (AIM & IM) to attach APM capability. Sales Tactic : Call on IT Ops, LOB or App Dev team and ask about middleware & app performance monitoring Workload Automation IBM Workload Automation (SaaS) Starts at $70 per 1,000 executed jobs per month Target: High labor costs and risk of human errors as a result of manually intensive work to synchronize activities across enterprises. Sales Tactic : WA SaaS automates repetitive tasks in support of business services, and control on-time delivery of those services IT Service and Asset Management IBM SmartCloud Control Desk (SaaS) $99/month per Authorized User $297/month per Concurrent User 15 Target: Customers with huge cost to upgrade old versions helpdesk (BMC, HP), linking configuration Items (CIs) to their IT assets, slow service request handling, incident and problem resolution Sales Tactic : SCCD SaaS as cost effective option to solve the above issues. IBM Confidential © 2013 IBM Corporation Existing Customer Up-sell How to farm existing install base Solutions To Sell IBM APM (SaaS) Existing Install Base Add-on Value Propositions SmartCloud Control Desk (SaaS) Detect an issue, automatically open a ticket Netcool OMNIbus Generate alerts when monitored KPI exceeded Business Service Management Improve MTTR for monitored business processes SmartCloud Analytics Predict and prevent problems with insight into patterns and trends Workload Automation (SaaS) Quickly and easily identify system and application problems that are impacting your workload Workload Automation (SaaS) Netcool OMNIbus Create alerts for workload problems SmartCloud Control Desk (SaaS) Open incidents for workload failures SmartCloud Control Desk (SaaS) IBM Endpoint Manager Trigger automatic provisioning of a desktop Netcool Omnibus Generate tickets based on selected events Tivoli Application Dependency Discovery Manager (TADDM) Use Configuration Information (CI) and relationship data to manage unplanned change Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct. 16 16 IBM Confidential © 2013 IBM Corporation Key Considerations for Partners Business Value Why SaaS: $1-2Billion addressable market for CSI SaaS offerings, with 50-100% growth rate for various solutions. Average deal size: 100-200K Annual Contract Value, with 30-40% growth on the same account as user base and scope expand Software vs services ratios: 1:2 as configuration, customization and integration work remains (only install and standard configuration come with SaaS). Sales cycle: 1-2 months, as 60% of prospects know what they want before they contact vendors. The key is to engage prospects effectively in digital marketing. Return for BP: brand-new SaaS revenue stream, with associated services Distribution model: authorized distribution, the same as on-premise counterparts Target BP seller: - Certified BP with APM, SCCD, TWS, EAM skills - MSP Target end user: - APM: IBM middleware (AIM/IM) customer - SCCD: BMC, HP customer with older versions Helpdesk, with high upgrade costs 17 IBM Confidential © 2013 IBM Corporation Agenda SaaS Market Overview C&SI SaaS Offerings SaaS Channel Business Models 18 IBM Confidential © 2013 IBM Corporation Business Partner SaaS Business Models IBM BP delivered delivered SaaS SaaS Referral Re-Marketers BP Storefront Application Specific Licensing (ASL, xSP) BP’s solution bundled with IBM perpetual software 19 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 IBM Confidential © 2013 IBM Corporation IBM Software Value Plus Reseller (SVP) Key Features Business Partner resells (remarkets) IBM hardware and or software and… Jointly owns customer with IBM Uses business know how, related services together with IBM SaaS to drive sales Leverages two product categories o Open - Virtually all IBM Business Partners resell the products through Passport Advantage program o Authorized – Only Business Partners who are approved under IBM SVP Business Partner Agreement for the product can resell that product through Passport Advantage program Convinces customer to acquire SaaS solution Sell IBM SaaS under Passport Advantage using IBM service agreement and terms of use Sets customer price and processes PO through IBM Value Added Distributor Invoices customer Sets price to Business Partner IBM Identifies opportunities or receives opportunity from IBM VAD I Business Partner Roles Provides VAD discount Invoices Business Partner Invoices VAD Pays IBM as invoiced for virtually all charges associated with service until customer cancels service Authorizes use of service to customer under IBM service agreement and terms of use Assigns Proof of Entitlement to customer Runs and delivers SaaS application from its data center Provides customer support Pays VAD as invoiced 20 IBM Confidential © 2013 IBM Corporation Operational Model on Service Engage (SVP) IT Practitioner Accesses Live Demo Trial Environment Partner Specific URL to Trial Access Request to purchase through Business Partner Paid Standard VAD/ VAR model Lead$ Business Partner Requests support through Engage IBM’s Partner Guided Selling Tool Forum, L1, L2, L3 IBM Hosted Trial Environment Sandbox Leads SCCD Unica 21 APM IBM Confidential © 2013WA IBM Corporation IBM SaaS Solution Provider (SSP) Key Features Business Partner sells solutions, manages accounts, provides support and… Owns customer relationship and is single interface Uses business know how, related services together with IBM SaaS to drive sales Leverages two flexible options available with extra capacity added as required: o Multiple End User – SaaS Solution Provider commits to volume of SaaS over term and decides how to utilize capacity across range of customers o Single End User – SaaS Solution Provider commits to volume of SaaS over term tied to a single customer (non-transferrable) Identifies opportunity or receives from IBM Convinces customer to buy SaaS solution Delivers total solution Authorizes use of service under BP’s service agreement Sets price & processes PO with IBM Invoices customer Sole customer support interface IBM Business Partner Roles Sells product to Business Partner at a discount Invoices Business Partner Authorizes use of service to Business Partner under an IBM service agreement & terms of use Assigns Proof of Entitlement to Business Partner Responsible for running and delivering the SaaS application from its data center Provides support to Business Partner Pays IBM as invoiced for charges until canceled 22 22 IBM Confidential © 2013 IBM Corporation Operational Model on Service Engage (SSP) IT Practitioner Accesses Live Demo Trial Environment Request to Requests support purchase through through partner partner portal portal Partner Specific URL to Trial Access Lead$ Business Partner Partner Portal Earn 25% on subscription IBM’s Software Quote and Order Tool Partner Value add Code IBM Hosted Trial Environment Sandbox Deliver Leads SCCD Unica 23 APM IBM Confidential © 2013WA IBM Corporation IBM Referral Incentive for SaaS Key Features Business Partner influences SaaS sale with clients and… Identifies opportunities, works with IBM to close sale and deliver SaaS Uses marketplace reach and existing client relationships to identify opportunities Uses business know how and relationships to jointly close sale with IBM 24 24 Convinces customer to acquire SaaS based solution Co-sells with Business Partner Sells SaaS either under Passport Advantage or Cloud Service Agreement Sets price & processes purchase order Provides Business Partner fee payment for processed sales Invoices customer Authorizes use of service to customer under an IBM service agreement and terms of use Assigns Proof of Entitlement to customer Runs and delivers SaaS application from its data center Provides customer support Customer Identifies opportunities IBM Business Partner Roles Pays IBM as invoiced for virtually all charges associated with service until service is cancelled IBM Confidential © 2013 IBM Corporation Operational Model on Engage: IBM SaaS Referral Incentive Program IT Practitioner Accesses Live Demo Trial Environment Partner Specific URL to Trial Access Request to purchase through Engage Paid 15% of Annual Contract Value Lead$ Business Partner Requests support through Engage Forum, L1, L2, L3 Deliver IBM Hosted Trial Environment Sandbox Leads SCCD Unica 25 APM IBM Confidential © 2013WA IBM Corporation IBM Referral Incentive for SaaS – Rewards • Applies to: • commercial accounts only • virtually all account classifications: Industry, Enterprise Select, Enterprise non Select & Midmarket • Payout percentages: contract value • New Deals: 15% • Up-sell: 15% • Contract Extensions: 5% o Some products not eligible for Contract Extension fees • Fees paid on Annual Contract Value • Only includes Subscription Charge Type • For multi-year contracts, fee is payable each year • Maximum fee payment: $150,000 per single claim • Partner creates profile & claims referral incentives Visit PartnerWorld for more information: https://www-304.ibm.com/partnerworld/wps/servlet/ContentHandler/swg_com_sfw_sc_saas 26 26 IBM Confidential © 2013 IBM Corporation Creating unique URL format to drive Business Partner Leads!!! For IBM Partners in the SaaS Partner Programs…. URL Format is: www.ibmserviceengage.com?/utm_source=reference code reference code =1<campaign><country_code><PartnerWorld_ID>:<email_address> URL details: • 1 is fixed for all partner sellers • <campaign> is the specific partner program: 01 – SVP 02 – SSP 03 – Referral • Insert your campaign, country code, PartnerWorld ID, and email address into the reference code Example: I am in the SaaS Referral so my <campaign> is 03 I am based in the UK so my <country_code> is uk (see next slide for country codes) My <PartnerWorld_ID> is xyz123 My optional seller <email_address> is johndoe@uk.partner.com My reference code = 103ukxyz123:johndoe@uk.partner.com My URL is = www.ibmserviceengage.com?/utm_source=103ukxyz123:johndoe@uk.partner.com Distribution of BP URLs: • VADs would distribute unique URLs for SVP to their Resellers • Receive unique URL in SSP approval email • Receive unique URL in SaaS Referral approval email 27 IBM Confidential © 2013 IBM Corporation 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 28 Explore Try Use / Buy Extend IBM Confidential Support © 2013 IBM Corporation Key Resources For SaaS Offerings • IBM Service Engage • Partner World SaaS landing page Find the business model for you How would you like to work with IBM? Work with IBM SaaS products (Select one of the sections below for complete details) 1. Own the customer relationship SaaS Solution Provider (IBM Solution Provider – IBM Software as a Service) 2. Resell authorized products through IBM Software Value Plus (SVP) IBM Software Value Plus (SVP) SaaS 3. Act as a referral Business Partner IBM Referral Incentive for SaaS and Software •Partner World Center of Competency https://www-304.ibm.com/partnerworld/wps/servlet/mem/ContentHandler/A725247N63902M39 Partner Seller Community SaaS CoC Question Answer Partner IBM Seller 29 Brand resources (Legal, PLM, Sales, Strategy, Pricing, BizDev, Competitive) IBM Seller Community Customer Fulfillment Back Office team SaaS Operations & Environment team IBM Confidential © 2013 IBM Corporation