Software Value Plus FAQ

The start of a new year, introduced a new IBM business model Software Value Plus (SVP), which was officially annouced during thel IBM webcats January 25th 2010. As a result of  these changes which impact  also SVI and VAP,we boiled down a top 10 of most frequently asked questions to help you with your business.

1) What is SVP?

Software Value Plus is the new name for Growth through skills (GTS). The idea of SVP is creating more value by increasing the awareness and knowledge of a BP (Business Partner) to avoid less appropriate licenses by pointing out to the right products and leveraging the IBM Software (SGW) by up sell.

2) What is Authorized distribution?

Authorized distribution is the new nomenclature for Closed Distribution or Controlled Distribution which covers all product licenses for which a BP needs to be certificated, when selling licenses from this product group(s).

Everyone can get certified for the 5 brands by obtaining

• 2 technical Certificate (Prometrics Center)
• 1 sales Certificate

NOT everyone can get certified for Valuenet Products by obtaining

• Requesting IBM to be allowed
• # tech. Certificates depending on product but higher than for the traditional brands
• # sales Certificates depending on product but higher than for the traditional brands

Authorized distribution can be split up in 2 big segments

• For more info: IBM_Software_Value_plus.pdf
• See also Official IBM Website

3) What is Open distribution?

Open distribution is every licensing which resides not under Authorized distribution (see point 2) and can be sold without any certification.
As a rule of the thumb, open distribution products can be regarded as easier products, requiring less knowledge, less parameterization and can be sold and installed relatively easy. For these products, protection of knowledge between business partners by certification is less or not effective.

4) How do we exactly know what is authorized or Open?

Regardless the rule of the thumb described in (3), only a check with your VAD or IBM can give you proof. We have however a simple part list, containing article number, description and classification which explicitly states under which product group a certain article number resides.

For more info Partlist_Controlled_Distri.xls

5) We do not have certificates what can we sell?

Only product licenses from open distribution can be sold by a BP with no certifications.

6) Which new licenses can we sell?

Only product licenses from open distribution and the product groups for which you are certified can be sold. If you have other new licenses which covers non certified products, even in combination of certified product group license in the same deal, than these non-certified product licenses may not be sold by the BP.

Solution: BP X has to check with his VAD which other BP Y he may team (partner) with to be able to sell the whole solution towards this End User. BP X may decide if he wants to work with this BP, determine the conditions and even negotiate a NDA (Non-disclosure Agreement) to obtain a good understanding and protect BP X investment in this End User.
In some cases it can even be that there is a need of yet a third or more BP(s) to cover the whole solution with all necessary certifications
So the End User will receive two or more PoE (Proof of Entitlement(s))!

Notes:
- Transaction Agreements (TA) will not be made as an exception!
- Even a sell with 0% (i.e. at List price) will not be possible!

7) Which S&S licenses can we sell?

S&S means Subscription & Support, i.e. renewals and reinstatements.

Only product licenses from open distribution and the product groups for which you are certified can be sold. Other S&S licenses which cover non certified products can not be sold, UNLESS these non covered licenses are combined in one deal with at least one article which resides in a certified product group; this one article might be a new license or an S&S.

BE AWARE however that these S&S articles which reside under the non certified product groups will have only a limited base margin discount, no GB (General Business) instant Rebate or other rebates will apply! This rule has been applied to allow the BP to maintain his position towards the end user, but at the same time to encourage him to certify for the intended authorized product group(s).

The articles in open and certified product groups however will maintain the normal discounts.

8) We lost our overview and don’t know which certificates we need

We as VAD can provide you with an overview of whom and which certificates you have as well as what you should have to be able to maintain your business.

See for more info on the very straight forward skills guide explaining Software certifications for Authorized resellers group
Technical & sales skills navigation guide

9) Where can I do the exams and at what cost?

Sales certification exams can be done online;
Technical Sales en technical certifications must be done in a Prometrics Test Center.

Cost sales certification:
no charge

Cost tech certification:
75€+10€ administration cost
-75€ to be claimed if you passed the exam
You pass, we (IBM) pay

10) When does the new system of Authorized distribution starts?

Theory = 1 January 2010
Practical = 24 January 2010 2pm local time (to be able to process all “old way” deals before 25 January 2010

For further information, please do not hesitate to contact us by phone on +32 (0)2 663 49 10 or by email on software@arrowecs.be