The IBM e-business infrastructure Marketing Program

A Revenue Opportunity for IBM Business Partners

Agenda
Campaign Overview Media and Advertising Review Market Opportunity Target Audience Campaign Offerings Roles and Responsibilities

e-business infrastructure Campaign Overview

A hardware, software and services campaign to raise the discussion to a more strategic level and to influence sales of IBM e-business infrastructure products through our Business Partners Goal: increase awareness that IBM and its Business Partners can sell a complete infrastructure solution that is secure, reliable, integrated and flexible Drive sales of hardware, software and services

Campaign Overview What is e-business Infrastructure?

Roadmaps, Datatypes

Industry specific enablers Application specific enablers

Business Intelligence, Supply-Chain Management, CRM, ERP, e-Markets, Enterprise Portals

e-business Integration (MQ, MetaDirectory, Services)

e-business infrastructure

Web Application Server

Database

Collaboration

Pervasive Computing

Web and Application Servers Technology Management

Security, systems management, storage management SW Standards (Java, XML, PKX, LDAP, Alerts (Tivoli), TCP/IP), Programming Models Servers (special function, data/transaction, webserver) Operating system Storage, SAN Networking

Server & Networking Infrastructure

e-business infrastructure: the hardware, software and services needed to build and run e-business applications

Campaign Overview
Why e-business infrastructure? Successful e-business strategies depend on the strength and flexibility of the underlying infrastructure, to support the e-business as a whole, not just part of it IBM is the only company with the experience, offerings, internal resources and business partners necessary to put together all the elements demanded by customers who need e-business infrastructure for e-business success

Campaign Goals
Drive sales of e-business infrastructure products and services through Business Partners Create awareness of the strategic importance of e-business infrastructure Emphasize IBM leadership in this space Emphasize the strategic importance of choosing an open, flexible and scalable infrastructure for e-business Highlight IBM Business Partners who can provide a complete IBM e-business infrastructure solution

Campaign Overview
Who is the campaign targeting? Information Technology Professionals within companies of all sizes Segmentation: Building and integrating applications, or running and managing applications What will this campaign look like? A series of web banners, print ads, direct mailings, a web site, and additional collateral have been developed to support this campaign All tactics drive to our website: www.ibm.com/e-business/infrastructure

Campaign Overview
Key milestones Print advertising begins-- June 26, 2000 PC Expo -- June 27 - 29, 2000 Web Banners begin-- July 10, 2000 Direct e-mail begins-- July 10, 2000 Direct printed mail- August and September TV ads-- ongoing "Crashsite" throughout the second half of 2000

Print and Electronic Media

Interactive CMP Tech Web ZD Net Internet.com CNET Macromedia Inform IT TechnologyEvaluation.com Windows 2000 Magazine Network Earthweb Network World Fusion CIO.com Info World IT World Tech Republic plus IT Opinion Leader/Lifestyle sites Print New York Times CIO Information Week Network World Network Computing Info World eWeek (PC Week) Computerworld Intelligent Enterprise Smart Reseller Computer ResellerNews VAR Business Industry Standard Red Herring Inter@ctive Week

e-business Infrastructure Web Site www.ibm.com/e-business/infrastructure

e-business Infrastructure Print Ads

e-business Infrastructure Print Ads

e-business Infrastructure Print Ads

e-business Infrastructure Market Opportunity

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The e-infrastructure Market Opportunity Will Grow to $265 Billion by 2003

e-business opportunity continues to grow
2000

1500

e-business Traditional & Embedded

$ Billions

1000

500

0 2000 2003

e-infrastructure is a large component of the e-business opportunity Server / Storage / OS

900 800 700

20.7%

Services

$ Billions

600 500 400 300 200 100 0

$265 B

65.2%

Middleware
14.1%

e-infrastructure e-business applications & services non-core e-business

2000
Source: GMV 1999

2003

e-business Infrastructure Market Forecast

The targeted customer segments are showing considerable growth over the next 3 years:
End Customer Large Build Large Run Medium Build / Run (Web Integration) Medium Run (Application Hosting) Dot.com
Source: IBM Internal Consulting Group

2000 ($000) 18,399,249 11,813,139

2003 ($000) 37,121,347 22,801,688

CAGR 26.4% 24.5%

30,212,388

59,923,035

25.6%

8,183,616 707,542

20,557,051 1,748,663

35.9% 35.2%

e-business Infrastructure Target Customer Segments

Target Customer Profile

Large-Run Customers
Key business problems
Getting to market quickly Making sound infrastructure decisions Interoperability of the run time environment Time to identify and solve run time problems Training and education of IT personnel on e-business technologies so they can be redeployed. Scalability and reliability of overall infrastructure, not necessarily at a product level

Critical success factors

Reliability Security Desirable: Flexibility, Leading edge technology, Interoperability, Requirement to support a wide range of e-business applications

Buying criteria / key frustrations

Integration & Interoperability Time to implement Other frustrations: Scalability, Organization, Security (Run Only), Finding skilled resources

Target Customer Profile

Large-Build Customers
Key business problems
Getting to market quickly Making sound infrastructure decisions Integration with legacy systems Scalability of existing systems to support rapidly evolving e-business needs Security to protect corporate and customer data Training and education of IT personnel on e-business technologies so they can be redeployed

Key frustrations
Integration & Interoperability Organization (IT Process Integration) Time to implementation Scalability Finding skilled resources

Target Customer Profile

Medium Build/Run Customers
Critical unmet build needs
Consulting on 2nd or 3rd generation Web site Design of Web site with additional functionality (CRM, SCM, etc.) Development time/ time to market Integration of applications, both proprietary and web-based Salability of systems and applications to meet growth needs Training and education of IT personnel on e-business technologies so they can be redeployed

Critical unmet run needs

Interoperability of the runtime environment (i.e. getting applications to run in a heterogeneous environment) Time to identify and solve problems (more reliant on external and vendor support) Security (likely due to the fact that non-IT individuals can voice their skepticism directly to the IT staff in smaller organizations) Scalability

e-business Infrastructure Offerings

e-business Infrastructure"Build" Offerings

Build Environment for Customers that are building and running their own e-business applications:
Linux Developer Sandbox A Linux e-business developer ThinkPad or Netfinity with the IBM Application Developers Kit ("not for resale" commercial developer versions of IBM DB2 Universal Database, WebSphere Application Server, Lotus Domino Server, VisualAge for Java, IBM Developer Kit and Runtime Environment for Linux and related documentation) Windows 2000 Developer Sandbox

A Windows 2000 e-business developer ThinkPad or Netfinity with the IBM Application Developers Kit ("not for resale" commercial developer versions of IBM DB2 Universal Database, WebSphere Application Server, Lotus Domino Server, VisualAge for Java, IBM Developer Kit and Runtime Environment for Windows and related documentation)
IBM Global Financing

e-business Infrastructure "Runtime" Offerings

Systems: Netfinity with Linux or Windows 2000 or RS/6000 and IGF financing Software: Linux or Windows NT/2000 or AIX infrastructure software running and managing e-business systems (WebSphere Application Server, DB2 UDB, Lotus Domino, MQSeries, WebSphere Commerce Suite -- product mix/versions differ slightly on different operating systems) Tivoli tools to manage large and complex information system environments IBM Global Financing

e-business Infrastructure Financing Offerings

IGF Integrator Lease - A low-cost lease program for Integrators so they can acquire the latest IBM technology at affordable rates in order to customize applications, develop proof of concepts, provide training and conduct demonstrations. This flexible two-year lease program provides Integrators with the option to upgrade at any time and to terminate the agreement after 12 months without penalty. Other key benefits of the program include discounted IBM operating systems and middleware during the lease. Also, customized configurations are available for all brand models including processor, storage, monitors and racks for a complete solution. Skill building for technical consultants and implementors Solution development, application customization and enhancement by Integrators to improve their value proposition Customer demonstrations and proof of concept to win engagements Benchmarking and performance tuning of applications Lease payment is 1%* of list price per month for AS/400, RS/6000, NUMA-Q, Storage and Printing Systems products Discounted software Sign for a two year lease Option to upgrade for most products Option to terminate at 12 months with no penalty S/390, High End Storage and Netfinity products are special bid, attractively priced and subject to other terms and conditions

e-business Infrastructure Financing Offerings

IGF Total Financing for e-business provides one-stop shopping to customers for the acquisition and deployment of e-business applications which can typically include hardware, software and services provided by either IBM or IBM's Business Partners. Also includes a line of credit for qualified customers for six months to accommodate related expenditures and deployment costs after the initial installation. Provides total financing for e-business solutions, by providing attractive rates, flexible terms and the convenience of a single contract for all parts of the solution hardware, software and services Customers can fund their entire 2000 e-business initiative through one source All e-business related solutions are supported with one contract with attractive rates A single monthly invoice covers all associated I/T investments Qualified customers receive a line of credit The program applies to the installation of new footprints and upgrades IGF Financing I/T Solutions Supports all parts of Web Integrator solution - hardware, software and services. They can finance the total solution or any individual part. Provides a reliable source of funding at competitive, often below market, rates (below prime in the U.S.) Offers flexible payment schedules, including deferrals, to help address budget limitations. Terms can range from 12 to 60 months and you can pay monthly, quarterly or annually.

Business Partner Value Proposition

Leverage IBM's investment in e-business infrastructure demand generation and awareness tactics Our e-business infrastructure message will generate 16,569,860 impressions over the next six months Direct marketing (print and electronic) Web Banners, e-mail, site sponsorships event presence and newsletters Leverage IBM's end-to-end flexible e-business infrastructure products and deliver an integrated solution from a single source. Campaign tactics are designed to drive over 1,900 qualified leads Complete Sales Kit for Business Partners: Sales Guide, End User Presentation and Script, White Papers, Application Briefs, Survivability Test, and more Detailed co-marketing tactics and funding are currently being defined

Receiving Leads from the e-business infrastructure Campaign

How will I get leads?

Campaign demand generation activities drive prospects to our website Lead development reps qualify respondents from web site Lead development reps nurture qualified respondents, determine if customer needs Web Integration services along with infrastructure products

Receiving Leads from the e-business infrastructure campaign

Software Plus Hardware Lead Qualifiers
Advanced or Premiere Level of IBM Business Partner Software Program Up to date profile in BPOPS

When web integration is involved, leads flow to Partners enrolled in the Web Integrator Initiative w/in Business Partner Software Program If no web integration is involved. leads flow to software Partners with the appropriate hardware affiliation (Netfinity, RS6K)

Software Only Lead Qualifiers

Location must have e-business certification (Solution Developer and Solution Designer) AND must have one of the following product certifications: DB2, MQSeries, VA Java, WebSphere, Net.Commerce

Receiving Leads from the e-business infrastructure campaign

Hardware Only Lead Qualifiers
Up to date BPLM profile Netfinity Business Partner with e-business skills and one of the following certifications: DB2, MQSeries, VA Java, WebSphere, Net.Commerce or RS6K Business Partner with VAE in e-business

ALL Lead Qualifiers Follow normal processes established for receiving, responding to, and reporting leads Respond to customer and lead passing system within 48 hours Update records within 6 days Regular communication on lead status

What else is in it for me?

What is the revenue opportunity?
Average e-business infrastructure engagement will be worth about $42,600, not including partner services Additional revenue streams and engagement opportunities possible after initial engagement Sales Support Material: Sales Guide, Customer Presentation and script, Customer Value Propositions, White Papers, Application Briefs, Survivability Test CD