Maximo SaaS Licensing Model

1. Maximo SaaS Licensing Model • The SaaS version will have the following user license types: • Authorized User – a standard “full user” where each user is named • Concurrent User – “full user” entitlement that sets the number of people who can be accessing the system at any given time • Self Service Users – free, just like on-prem. No entitlement required, allows create/view of SSR and Desktop Req’s • Simplified SaaS licensing model • Increased user type flexibility (casual, occasional, light-use, end users) • Aligns with SCCD license model

2. Business Case Packaging & Pricing IBM Maximo Asset Management (SaaS)

3. Pricing, Quoting, and Discounting Differs From Perpetual Model PPA only, no FCT Pricing • SaaS is a subscription service, so there are no S&S parts • SaaS does not generate any points • SaaS does NOT have different band prices • Band BL-J, Academic and Government all have the same price • Part-level volume pricing and flexible payment options offer more value than the banded prices and discounts, and the variable cost model of SaaS won’t allow for extra PA entitled price differences Quoting • Maximo (SaaS) has a SQO Level 0 approver before routing to pricing to validate configuration, ability to provision, and assure deal profitability (≈30 named users) Discounting • Maximo SaaS has real variable costs for delivering the service, which determines the level of discount that can profitably be given • In general, the level of discounting that can be given will be minimal close to the minimum number of users, but grows as the deal becomes larger

4. The Guided Selling Tool (GST) • A rules-based product centric configuration interface that guides sellers through the offering details to create a valid configuration for a quote. • Runs within SQO (IBM's Software Quote Order system) and is used in place of the basic SQO configurator (a part number / list based input.) • Leverages IBM Sterling Configure, Price, Quote (CPQ) software. • Provides a User-friendly interface, logical tabbed layout • Includes on-screen product information and guidance • Automatically selects mandatory parts • Prevents invalid configurations • Handles pre-req/co-req and threshold conditions • Delivers faster quote processing by eliminating error prone manual steps • Lays foundation for reducing Level 0 review over time

5. Maximo Asset Management – SaaS Compensation Summary • New / Incremental Maximo SaaS contracts flow up-front credit equal to 2X Annual Contract Value (ACV) • Credit will be included in the commissionable achievement two months following signing • There will be no credit for renewals/extensions at the original ACV rate • If the renewal is at a higher ACV rate than the original contract, the credit will be calculated as 2X the difference between the original ACV and the new ACV • Maximo SaaS on PPA only • Examples: • A customer signs a 36 month order for 50 named users in April • Total Contract Value is $286,200 ($159 X 50 users X 36 months) • Annual Contract Value is $95,400 ($286,200 TCV divided by 3) • 2X ACV for commission/quota purposes is $190,800 ($95,400 X 2) • Commission payout/CREV flows to FMS in June • The customer adds 25 named users in year 2 of the contract • New ACV will be $143,100 ($159 X 75 X 12) • The difference in new ACV and original ACV is $47,700 ($143,100 - $95,400) • 2X ACV for commission/quota on the difference is $95,400 ( $47,700 X 2) 4 4

6. C&SI Business Partners • BPs (VADs and VARs) can offer the Maximo SaaS solution under the Software Value Plus (SVP) program • The end customer holds the subscription and accepts the SaaS TOU • The VAD Processes quotes and orders via the Partner Guided Selling Tool/PPA • The financial benefits a VAD receives and shares with the resellers are: • Base discount of 10% • SaaS Instant Rebate: 5% for I&A and 15% for GB • The SaaS Instant Rebate is only paid on subscription, daily and on-demand parts. • VAD Back End Rebate: 3% to 4% • Each geo has a VAD compensation document