Published on 04 Nov 2019 

Team,

Client and market reaction to IBM Cloud Paks confirms Open is Smart.

Every client wants to understand how we can help them accelerate their journey to cloud... this is the value of IBM Cloud Paks. We have new capabilities being delivered continuously to existing Cloud Paks, and a new Cloud Pak is being launched in a couple of weeks. It's been a while since IBM has had something as exciting as Cloud Paks for clients. Additionally, as an IBM Business Partner, Cloud Paks bring significant earning opportunities for professional services as you help clients migrate and modernize their applications on the cloud.

There are three options for selling Cloud Paks in 4Q:


Committed Term Licenses enable clients to purchase IBM software as a subscription.

Committed Term Licenses offer a flexible license model that will provide a lower cost of entry for clients seeking to containerize workloads and modernize their applications. We piloted Committed Term Licenses in the third quarter through special bids and received excellent client feedback, drove significant revenue and created an impressive pipeline of opportunities. The introduction of Committed Term Licenses enables clients to purchase IBM software as a 12-, 24- or 36-month subscription, significantly reducing their up-front costs and providing them with scalability as they grow.

The marketplace interest around Cloud Paks will bring new clients your way as well. You may sell net new Cloud Pak Committed Term Licenses to any client that does not have current S&S on any of the component products of the relevant Cloud Pak. A new Cloud Pak Committed Term License order must be submitted as a special bid by an IBM rep, so contact your Partner Sales Manager or other IBM counterpart to begin the sales process. In addition to the normal channel discount through your VAD, net new Committed Term License sales are eligible for CVR Customer Focus and CVR Sales/Sales Assist incentives, if you are eligible and approved for the incentive.

IBM requires that both the Business Partner and the IBM rep initiating the deal must verify that the client purchasing the net new Committed Term License does not have current S&S on any of the component parts of the Cloud Pak. Business Partners selling Cloud Pak Committed Term Licenses leading to cancellation of existing S&S on any Cloud Pak component part could lead to termination of their Business Partner Agreement. If the client has current S&S on any of the Cloud Pak component products and you are a Partner of record having fulfilled the most recent license or S&S renewal within the last 12 months, you may sell a trade-up to a Cloud Pak perpetual license, still providing the client with the added value and flexibility of the Cloud Pak.

We encourage you to review the Business Partner Committed Term License Enablement deck to learn more. We will be publishing additional information on Committed Term Licensing to Seismic over the next several weeks. Check back often to learn the latest on this new license offering.

Regards,
Brian Fallon
Director of Worldwide Digital & Partner Ecosystem
IBM Cloud and Cognitive Software