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The Subscription & Support : (S&S) What's in it for our Business Partners

The Subscription & Support : (S&S) What's in it for our Business Partners. Michelle Lyness. Agenda. Why is S&S important to Business Partners What does IBM offer compared to the competition What happens if I don’t renew? On Time Renewals (Best Practice)

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The Subscription & Support : (S&S) What's in it for our Business Partners

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  1. The Subscription & Support : (S&S) What's in it for our Business Partners Michelle Lyness

  2. Agenda • Why is S&S important to Business Partners • What does IBM offer compared to the competition • What happens if I don’t renew? • On Time Renewals (Best Practice) • Significant enhancements from July 18 • Passport Advantage Express – Why Migrate ? • Why cant I access my renewal information • Why is my customer not renewing • What can I do about this • Acquisitions • How Is IBM Investing in more products for your to sell. • Recourses and Tools available for Business Partners & VADs • PartnerWorld • VAD Portal • Business Partner Locator • Grow your own Business • Business Partner Profitability Tool • IBM Global Finance • IBM Internal Tools that help you – Channel Dashboard • IBM Channel Forecasting • Passport Advantage On-line 2

  3. IBM Software Subscription and Support: Relax, Renew, Recharge! http://www.youtube.com/watch?v=yQfps3x9ts8

  4. What does a sale cost a Business Partner ? • Business Partners will gain the greatest RIO when they sell products they have skill in to customers they know. • Even though there’s less margin paid on renewals the cost of sale is significantly less offering the BP a good return overall. • Selling S&S, additional licenses or other products the BP has skill in to customers they know is by the far the most cost effective and profitable model • Based on the profit v’s cost model in the Diagram, S&S is a key to a BP’s over all ability to grow and remain profitable • Making sure S&S is paid on time also ensures a steady predicable cash flow. Cash flow is vital to a BP’s success. No Profit No Profit Black Hole • What fits here ? • S&S • Additional licenses • Reinstatements • Services (upgrades, product development or enhancements) • What fits here ? • Complementary products • (eg. Selling Rational Development tools to WebSphere App Server customers ) • Cross-Sell (eg.DB2 to Lotus Portal customers)

  5. IBM (standard Passport Advantage Program Complete Support and Subscription solution 24x7 for severity one’s Unlimited callers Unlimited calls (phone support) Discounts on S&S are allowed Microsoft (within their Ent. Agreement/Software Assurance Subscription (access to new versions) and support not included (web support only) 24x7 support extra cost Phone support cost extra Microsoft, Oracle, CA, among others do not discount S&S Some do not allow partners to earn margin on S&S Main Differences between IBM and Competitors when it comes to S&S • YouTube Video on how to download upgrades • http://www.youtube.com/watch?v=HuatqV8jpu4 • YouTube Video on the Value of Software & Subscription for your customers • http://www.youtube.com/watch?v=32lpEl-65R8 & http://www.youtube.com/watch?v=tKZAx_vtbRo

  6. Why should customers renew on time….. - • Re-instatement cost will be around 3x the amount of their yearly renewal cost • Loss of New Software Features & Functionalities • Loss of Technical Resources • Software Compliance Concerns • Software Obsolescence (withdrawn products) • Risk & Cost involved when a production environment fails with no support contract in place. • Employee Satisfaction & Productivity (eg.running old versions) • Revenue loss

  7. Channel Renewal Cycle – Best Practice @ 6 days after the renewal is due IBM will auto invoice the customer at RRP /IBM pricing. Are there any orders that are “With Sales for Review”? Is there a large deal in play? Confirm with Renewal Rep we have send to CEO and/or CIO? Is the client committed to renew? Ensure you’re across all renewals for the qtr. Have we asked SWG Exec to call on the client? Let renewal team know to turn off Auto renewal. Auto Invoice Renewal Notice Support Extension Letter Confirmation Letter Reinstatement Quotation +6days +10-15 days GPE (Grace Period Extension) -90 days -30 days -10 days +90 days -180 Days 75 days Client Call Expiration Collection Access to Renewal Quote Contact customers for collection. BPs should start calling Customers 6 months in advance Client no longer entitled to support. Resend confirmation letter if necessary. Check with Software Renewal Rep on whether end user has raised any PMRs Reinstatement pricing should client want to renew at a later date. Schedule a BOM review with top accounts & IBM Renewal Rep Confirm if your customers is a part of the WW Strategic Account List?

  8. Significant enhancements from July 18 2011 • “all or nothing” S&S requirement • Per product per site • For licenses that are “in service” = “being used in any way for any purpose whatsoever” • Trust, as today, but subject to audit • Removal of 500 point entry requirement (PA only) • Provides customer choice (PA or PA Express) regardless of initial order size • Accommodates smaller customers who want a single renewal per year • Addresses the discounting needs of customers who will start small but expect to grow • Coverage for upcoming enhancements to support delivery models • Development of more, and more sophisticated, self help and self diagnosis tools • Shift toward more electronic support models – efficiencies for both customers and IBM • IBM’s Support Portal, how to on YouTube • http://www.youtube.com/watch?v=0VzVfdKA8zo&NR=1

  9. Passport Advantage - Why Migrate? Sale Mastery Test – Please complete this if you have not done so already. PartnerWorld www.ibm.com/certify/mastery_tests/index.shtml. The test number is M231.

  10. SP Partners & FCT What are the Differences ?

  11. RSVP Program Point Levels Note. You can only slip to BL level if you’re already in the PPA program. There is no option to join Passport Advantage without a 500 point purchase.

  12. Why is Software missing from my renewal quote • Part renewal from the year before. (customer ordered less than they own) • Pro-rate licenses missed the year before • FCT/PPA Migration Licenses process has not bee completed • Customer has a multiple SAP IDs • Name change • Merger with another company What can I do about this • Work with your IBM rep to get details of license missed licenses (BOM Team and look at the Reinstatement Oppty) • Sell renewals to the Anniversary Date. • Work with FCT rep to confirm Acquisition products are all there • Confirm name changes if any ? • Confirm all SAP ID’s when requesting information on customers

  13. Why is my customer not renewing? • Migrating to another vendor’s product • No budget ?? • Software doesn't do what IBM says it can • Company no longer in business • Company reducing in size (Part Renewals) • See’s no value in Subscription & Support • Client has a project that has been delayed and has yet to implement the software

  14. How do I handle some of these objections to renewing • Migrating to another product – ALWAYS confirm reason the customer moved to another platform and confirm 100% that migration has taken place. (make sure customer has support during transition process, to rip and replace can take 6-12 months) • No budget – Explain the costs of no support/subscription and reinstatement and understand the cost to the business if the there’s a support or patch requirement. Sometimes considering the cost of not renewing can establish a need and uncover budget • Software doesn't do what IBM says it can or not implemented? - Work with the IBM technical team to get the software working for the customer and make sure they see value in IBM software. • Company no longer in business - Find out if the company has been sold to someone else as they’re entitled to still pay for S&S and use the software • Company reducing in size (Part Renewals) - Oppty for compliance, increase price if they buy less • See’s no value in Subscription & Support - show the PMR report and Product Road Map)

  15. Your feedback? Getting Started Guide for New Business Partners

  16. Resources for VADs to facilitate integration and Business Partner readiness for new IBM Software acquisitions VAD Portal: Acquisitions Corner www.ibm.com/partnerworld/vad - Selling tab • Includes: • New! Quick Reference Sheets or • “VAD Blueprints” for BP readiness • Key dates • Reseller Authorization Group • Certifications required • …and more • VAD 101 Guide • Acquisitions summaries • VAD Briefing presentations • Acquisitions PartnerWorld page link

  17. Business Partner Locator http://www-304.ibm.com/partnerworld/wps/bplocator/search.jsp?search_cc=au 18

  18. Will be presented with this list of potential cross-sell products A Business Partner with expertise in Up-sell/Cross-sell: Use the “Grow Your Business” tool 9 languages available: Chinese, English, French, German, Italian, Japanese, Korean, Spanish, Portuguese www.ibm.com/partnerworld/growyourbusiness Highlights • 275+ products / all brands • 650+ cross-sell scenarios • Software-to-software and hardware-to-software pairings • Suggested pairings based on existing skills, return on investment, market demand, education • Midmarket and Large Enterprise segmentation

  19. To request a more in-depth demo, email kestin@us.ibm.com Business Partner Profitability Tool Objective: To help Business Partners evaluate IBM Software product offerings and how those offerings can increase ROI / business growth Audience: VADs, Business Partners, and IBM VAD/Business Partner Reps Solutions Summary Enablement Summary Investment Summary Customized Assumptions Detail View • Web-based Modeling Tool to understand investments and ROI • Includes 90 Mid-Market focused offerings and growing • Base assumptions built-in (i.e. skill level, avg. deal size, etc.) • Customizable / compare multiple scenarios • - What will it cost to ramp up on this product? • - How long will it take? • - When will I see a return? • - When does the positive case flow start? • - Is this product a fit for our skills and offering portfolio? Click here to view the training demo and to access the Business Partner Profitability Tool https://www.ibm.com/partnerworld/sw/profitabilitytool

  20. The Widget Remind BPs to Close Deals with IGF Financing - Countries where the Rapid Online Financing tool is available: • Italy • Japan • Korea • Luxembourg • Malaysia • Mexico • Netherlands • New Zealand • Norway • Peru • Portugal • Singapore • Spain • Sweden • United Kingdom • United States Austria Australia Belgium Brazil Canada Chile Columbia Denmark Finland France Germany Hong Kong India Ireland Israel • A Quote Calculator • Instant Financing Quotes • Contract Returned by email – minutes later • Distributor website placement If Rapid Online Financing tool is not available in your country, contact IBM Global Financing for a quote. • IGF financing for Software BPs: As low as 0% for 12 months • IBM Global Financing's new podcast series around how they can accelerate their growth with financing

  21. CHANNEL DASHBOARD • ======> Go to Folder: SSD Operations Utilities \ Subscription and Support \ Channels • The Channel/S&S Team uses this tool to produce the report Bharath gives you showing S&S coming up for you to close. • Ideally VADs should be getting this report a quarter in advance

  22. Forecasting why it’s important & What we need… The Channel and Software Subscription & Support IBM is a Public company as some of you maybe and reporting accurate revenue numbers will be important to IBM and your stock holders. Enables the IBM Team to help close an opportunity if they know what’s needed Allows you to manage cash flow, when you understand when your opportunities are going to close (S&S as well as New License sales) You’re going and have better understanding of when you’re going to get paid commission. What we need… Accurate forecasting every two weeks (weekly toward end of Quarter) to your Distributor on the progress of the renewal opportunity. Just a simple spread sheet using the stages above and comments where required. 23

  23. Passport Advantage on-line (Overview) Michelle Lyness

  24. Agenda • Support Provider Software Download option • Reporting (All BP’s Support Provider BP’s and VADs) • Accessing Renewal Quotes for your customers DO NOT PASS ONTO YOUR END USERS YouTube Video on how to use Passport Advantage On-Line for End Users http://www.youtube.com/watch?v=ryV5Bk3XBYU

  25. Instructions on how a Support Provider BP can download Software, Software Updates, Fixes & patches. (Note this is the same process for end users if a BP would like to help them through the process)

  26. Software Downloads for Resellers[Support Provider Model] • A new partner support provider model outside of the existing Passport Advantage/Passport Advantage Express programs was created as part of Aspen • Support Provider Model Overview: • Separate Program to PA • Different Contract + different Ts & Cs • Reseller purchases software and holds entitlement • IBM have no relationship with enduser • No outputs are sent to enduser • Reseller provides support to enduser • IBM provides level 3 support to reseller [Reseller's contract states they provide level 1 and 2 support to their end users. Reseller would contact ibm on behalf of their end user customers for any level 3 issues] • Reseller downloads software – no downloads visible to enduser

  27. Passport Advantage On-Line for Business Partners • Log on Page: - Customers & VADs & Business Partners (VARs) • http://www-01.ibm.com/software/lotus/passportadvantage/ • Step 1. • Request log on id and password • Step 2. • Sign on and you will access to the following Price Book & Quoting Tool • Reporting -- allows you to view agreement information and generate reports of customer activity. • Account management -- enables your primary and secondary contacts to grant access to additional users of Passport Advantage Online for resellers. • Reference -- keeps you updated on the Passport Advantage program with the latest enhancements, presentations and overviews. • Need Assistance -- includes worldwide contact information for our eCustomer • For your IBM registration user ID and password for Passport Advantage Online for resellers, please contact eCustomer Care. BP Sign On http://www-01.ibm.com/software/howtobuy/passportadvantage/pao_biz_partners.htm

  28. PAO for Resellers (Home page)

  29. Software download will only appear in the left navigation for software value net Partners

  30. Overview page defaults, similar to the customer experience Download finder and set my preferences are also available

  31. Reporting

  32. Reseller Reporting overview • Reporting allows you to view agreement information and generate reports of customer activity • There are three Reporting selections available • Passport Advantage Customers • Passport Advantage Express Customers • Active Renewal quotes • It is possible to select one or multiple customers and for those that there is an existing relationship, generate reports of order history. It is also possible to generate reports for active renewal quotes in which you are participating

  33. Reseller reporting determines who is logged in, the Partner type, if partner is named on the quote, if Partner access flag is Yes, if Partner is prior year reseller

  34. Select Reporting from left navigator

  35. Generating Reports of PA/PAE customer activity 1. Select Customer Type

  36. Generating Reports of PA/PAE customer activity 2. Agreement/Site number search - provide Customer Information

  37. Generating Reports of PA/PAE customer activity 2. Or Customer attribute search – provide customer name etc. You can enter partial or complete name to find customer information. Please note that you can only search by entering customer name if you are the designated Partner or you have sales relationship with this customer. Otherwise you have to enter the Agreement and Site Number

  38. Generating Reports of PA/PAE customer activity 3. Review Results

  39. Generating Reports of PA/PAE customer activity 4. View Customer Details

  40. Generating Reports of PA/PAE customer activity 4. View Customer Details View following contacts: Primary Proof of Entitlement SW Subscription and Support Media Shipping SW Subscription and Support Renewal Billing Site Technical Please note that it is not possible to view the contact information if you are not the designated Partner or you do not have a sales relationship with the customer

  41. Generating Reports of PA/PAE customer activity 4. View Customer Details Possible to view the basic customer enrollment details on the customer tab

  42. Generating Reports of PA/PAE customer activity 5. To view customer Order History, check the SELECT box, and hit Generate Report Please note: You can only generate reports for customers with which you have a relationship. The link to generate a report will not appear if there is no relationship

  43. Generating Reports of PA/PAE customer activity 5. To view customer Order History, check the SELECT box, and hit Generate Report

  44. Generating Reports of PA/PAE customer activity 6. Specify reporting criteria - You can save your selection as default

  45. Generating Reports of PA/PAE customer activity 7. Submit Summary Report

  46. Generating Reports of PA/PAE customer activity 8. Submit Detail Report

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