https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa...
Modification: IBM System x and System Storage Business
Partner growth incentives
Announcement Letter Number 508-441
January 23, 2008
The IBM®
System x™ Business Partner growth incentive has been modified, retroactive to January 1, 2008. The following changes are being
made with this announcement:
a System Storage™ growth incentive has been added, with a quarterly System Storage sales revenue target, Level One and
Level Two payments, System Storage over-achievement bonus, and Premier Partner recovery incentive
changes have been made to the lists of Eligible products
the quarterly System x sales revenue target has been changed
an additional System x over-achievement bonus has been added
the Options/storage ratio bonus has been removed
the title of these incentives has changed to reflect the addition of the System Storage growth incentive
All other terms and conditions remain unchanged.
This announcement supersedes Announcement Letter 507-698, dated November 5, 2007.
The offer
Eligible IBM Business Partners who are approved to remarket IBM System x, BladeCenter®, and IntelliStation® products can receive
a quarterly System x growth incentive payment if they:
have achieved Member, Advanced, or Premier level membership in PartnerWorld® no later than the end of the prior quarter,
and
reported a minimum of $25,000 in End-User sales revenue for the eligible IBM System x products (which include System x,
BladeCenter, and IntelliStation products) invoiced in the prior year or the prior quarter, and
meet a defined quarterly EDI or Web-based reported End-User sales revenue target for eligible IBM System x products.
-- and/or --
Eligible IBM Business Partners who are approved to remarket IBM System x, BladeCenter, IntelliStation, and System Storage
products can receive a quarterly System Storage growth incentive payment if they:
have achieved Member, Advanced, or Premier level membership in PartnerWorld no later than the end of the prior quarter,
and
reported a minimum of $25,000 in End-User sales revenue for the eligible IBM System x products (which include System x,
BladeCenter, and IntelliStation products) invoiced in the prior year or the prior quarter, and
meet a defined quarterly EDI or Web-based reported End-User sales revenue target for eligible IBM System Storage
products.
In addition, eligible IBM Business Partners can receive System x and System Storage over-achievement bonuses, and IBM Business
Partners who have achieved Premier level membership in PartnerWorld can receive System x and System Storage recovery
incentive payments, if they meet certain revenue objectives. Refer to the Additional information/conditions section of this
announcement for details.
Reported End-User sales revenue is defined as the total IBM Bid Index Price of the eligible products sold to an End User* on the
date of the sale to the End User (End-User invoice date).
Quarterly System x and System Storage revenue targets will be individually communicated to each eligible Business Partner within
the first 15 business days of each quarter.
Sales to Federal, State, and Local government entities do not qualify.
IBM Business Partners must purchase the eligible new products from IBM or an authorized IBM U.S. Distributor.
For a list of eligible products, refer to the Qualifying/Eligible products section.
1 of 5 1/23/2008 2:55 PM
https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa...
* as defined in the IBM Business Partner Agreement
Start and/or end dates
End-User invoices for the eligible products must have a date of on or after January 1, 2008.
EDI or Web-based sales transaction reporting must be received by IBM no later than the last calendar date in the calendar month
following the close of a quarter.
Who is eligible?
Provided they are members of PartnerWorld, the following IBM Business Partners are eligible for these incentives:
Solution Providers and Resellers who acquire products directly from IBM
Solution Providers and Resellers who acquire IBM products from IBM Business Partner -- Distributors
Systems Integrators
IBM Business Partner -- Distributors are responsible for making their IBM Business Partner -- Solution Providers and Resellers
aware of these incentives.
Where is it available?
These incentives are available only in the United States and its territories.
Qualifying/Eligible products
Eligible products
To access the Price List on PartnerWorld, visit the following Web site:
//www-1.ibm.com/partnerworld/pwhome.nsf/weblook/pat_sas_x.html
Under Shortcuts, select Price List.
Eligible System x products
Eligible System x products (which include System x, BladeCenter, and IntelliStation products) are defined as those products in the
following assortment modules as listed in the Price List and Assortment Module (AM) listing on the System x Product section on
PartnerWorld, excluding System x software Enterprise License Agreements (ELAs):
A101 through A109
A201 through A209
P000, P001, P011, P077
X000 through X014
X100 through X111
X150 through X177
X181 through X191
X200 through X211
X250 through X285
Eligible System Storage products
Eligible System Storage Systems are defined as those products in the following assortment modules as listed in the Price List and
Assortment Module (AM) listing on the Storage Product section on PartnerWorld:
T003, T004, T005, T006, T008, T009, T010
X130, X230, X285
Additional information/conditions
Products acquired for Business Partner internal use or for demonstration or development use do not qualify for payments under the
terms of these incentives.
Business Partners who sell directly to End Users and meet the reported sales revenue requirements are eligible to receive incentive
payments under the terms of these incentives.
IBM Business Partners with multiple business locations will qualify as a single entity. Only one payment will be made, per quarter, per
signed Business Partner Agreement.
2 of 5 1/23/2008 2:55 PM
https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa...
For information on how to achieve Premier level membership in PartnerWorld, IBM Business Partners should contact their IBM
Marketing Representative or call the PartnerWorld Contact Services Center at 800-426-7272.
IBM reserves the right to modify or withdraw these incentives at any time.
These incentives are subject to the terms and conditions of any applicable Agreements.
Quarterly System x targets and quarterly System x incentive payment amounts
Quarterly System x sales revenue targets for reported End-User sales of System x products (which include System x, BladeCenter,
and IntelliStation products) invoiced during a quarter are equal to a 6% uplift over the reported System x sales revenue for the
corresponding quarter in the prior year, or $25,000, whichever is greater.
There are two levels of System x growth incentive payments, based upon attainment of the quarterly System x sales revenue target
as follows:
System x Level One payment: 0.5% of the reported End-User sales of the eligible System x products in the quarter if the
reported End-User System x sales revenue is equal to at least 85%, but less than 100%, of the Business Partner's quarterly
System x sales revenue target, or
System x Level Two payment: 1.0% of the reported End-User sales of the eligible System x products in the quarter if the
Business Partner's quarterly System x sales revenue target is met or exceeded.
Quarterly System Storage targets and quarterly System Storage incentive payment amounts
Quarterly System Storage sales revenue targets for reported End-User sales of System Storage products invoiced during a quarter
are equal to a 25% uplift over the reported System Storage sales revenue for the corresponding quarter in the prior year, or $25,000,
whichever is greater.
There are two levels of System Storage growth incentive payments, based upon attainment of the quarterly System Storage sales
revenue target as follows:
System Storage Level One payment: 0.5% of the reported End-User sales of the eligible System Storage products in the
quarter if the reported End-User System Storage sales revenue is equal to at least 85%, but less than 100%, of the Business
Partner's quarterly System Storage sales revenue target, or
System Storage Level Two payment: 1.5% of the reported End-User sales of the eligible System Storage products in the
quarter if the Business Partner's quarterly System Storage sales revenue target is met or exceeded.
System x over-achievement bonuses
Business Partners who exceed their System x quarterly sales revenue target will receive an over-achievement bonus equal to .5% of
their reported End-User sales of the eligible System x products that exceed their System x quarterly sales revenue target.
Business Partners who meet or exceed 85% or their quarterly System x sales revenue target, and also meet or exceed 100% of their
quarterly System Storage sales revenue target will receive an over-achievement bonus equal to .5% of their reported End-User sales
of the eligible System x products for that quarter.
System Storage over-achievement bonus
Business Partners who exceed their System Storage quarterly sales revenue target will receive an over-achievement bonus equal to
2.5% of their reported End-User sales of the eligible System Storage products that exceed their System Storage quarterly sales
revenue target.
System x quarterly payment examples
A Business Partner has a System x quarterly sales revenue target of $10 Million, and actual System x sales of $12 Million. In
addition, they meet 100% of their System Storage quarterly sales revenue target. Their quarterly System x incentive payment would
be calculated as follows:
$12 Million x 1.0% (Level Two payment) = $120,000
$2 Million x .5% (Over-achievement bonus) = 10,000
$12 Million x .25% (Over-achievement bonus) = 30,000
Total payment = 160,000
A Business Partner has a quarterly System x sales revenue target of $10 Million, and actual sales of $8.5 Million. In addition, they
meet 85% of their System Storage quarterly sales revenue target. Their System x quarterly incentive payment would be calculated as
follows:
$8.5 Million x .5% (Level One payment) = $42,500
3 of 5 1/23/2008 2:55 PM
https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa...
Total payment = 42,500
System Storage quarterly payment examples
A Business Partner has a quarterly System Storage sales revenue target of $5 Million, and actual sales of $6 Million. Their quarterly
System Storage incentive payment would be calculated as follows:
$6 Million x 1.5% (Level Two payment) = $90,000
$1 Million x 2.5% (Over-achievement bonus) = 25,000
Total payment = 115,000
A Business Partner has a quarterly System Storage sales revenue target of $5 Million, and actual sales of $4.25 Million. Their
quarterly System Storage incentive payment would be calculated as follows:
$4.25 Million x .5% (Level One payment) = $21,250
Total payment = 21,250
Premier Partner recovery incentives
These incentives assist Premier Partners who fall short of their quarterly System x and/or System Storage sales revenue targets in
one or more quarters in a calendar year.
In order to qualify for a recovery incentive payment for a quarter, a Business Partner must have achieved Premier level membership
in PartnerWorld no later than the end of the quarter prior to the quarter for which the recovery incentive payment is applicable.
For System x, Premier Partners who meet or exceed the combined sum of their first and second System x quarterly sales revenue
targets by June 30, 2008 but miss one or more System x quarterly targets within the first and second quarter can receive 70% of the
difference between the System x quarterly incentive payment they received for the quarter (if any), and the System x quarterly
incentive payment they would have received had they achieved 100% of their System x quarterly sales revenue targets.
Premier Partners who meet or exceed the combined sum of their third and fourth System x quarterly sales revenue targets by
December 31, 2008 but miss one or more System x quarterly targets within the third and fourth quarter can receive 70% of the
difference between the System x quarterly incentive payment they received for the quarter (if any), and the System x quarterly
incentive payment they would have received had they achieved 100% of their System x quarterly sales revenue targets.
For System Storage, Premier Partners who meet or exceed the combined sum of their first and second System Storage quarterly
sales revenue targets by June 30, 2008 but miss one or more System Storage quarterly targets within the first and second quarter
can receive 70% of the difference between the System Storage quarterly incentive payment they received for the quarter (if any), and
the System Storage quarterly incentive payment they would have received had they achieved 100% of their System Storage
quarterly sales revenue targets.
Premier Partners who meet or exceed the combined sum of their third and fourth System Storage quarterly sales revenue targets by
December 31, 2008 but miss one or more System Storage quarterly targets within the third and fourth quarter can receive 70% of the
difference between the System Storage quarterly incentive payment they received for the quarter (if any), and the System Storage
quarterly incentive payment they would have received had they achieved 100% of their System Storage quarterly sales revenue
targets.
Sales transaction reporting
EDI or Web-based sales transaction reporting must be received by IBM no later than the last calendar date in the calendar month
following the close of a quarter, as per the following example:
Sales quarter Last reporting date
1Q 2008 April 30, 2008
2Q 2008 July 31, 2008
Transshipment of product between Business Partners does not qualify as a sale to an End User, and should not be reported as such
under the terms and conditions of these incentives.
Accruals and payments for these incentives will be reflected in your monthly ProPlan statement. IBM will debit any account for
returns or adjustments to reported sales. For questions pertaining to your statement, contact the IBM Promotional Support Center at
800-477-6756.
Any inquiries related to differences between Business Partner reported sales transactions and IBM's verified sales must be
documented, in writing, by the Business Partner to IBM within 90 days of the accrual period, or claims to any unpaid incentive
payments will be forfeited. Inquiries may be faxed to 800-477-6745.
Business Partners are responsible for ensuring the accuracy of their sales reporting. IBM reserves the right to request further data for
reconciliation, and will withhold payments subject to validation of the data, or recover monies already paid based upon changes to
previously submitted data.
4 of 5 1/23/2008 2:55 PM
https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa...
Incentive payments
Incentive payments will be made on a quarterly basis, in the form of a check to the Business Partner's headquarters location. Other
forms of payment, such as "credit on account" will not be considered. In addition, IBM will not assign or transfer an incentive payment
to another party.
IBM reserves the right to audit compliance with the terms and conditions of these incentives, and is the sole determiner of any and all
incentive payments due.
Need help?
Questions pertaining to this incentive should be directed to:
System x: Brian Kielty at bkielty@us.ibm.com, or Sean Whalen (Alternate) at swhalen@us.ibm.com
System Storage: storpgm@us.ibm.com
or PartnerWorld Contact Services at 800-426-9990.
Trademarks
IBM, BladeCenter, IntelliStation, and PartnerWorld are registered trademarks of International Business Machines Corporation in the
United States or other countries or both.
System Storage and System x are trademarks of International Business Machines Corporation in the United States or other countries
or both.
Other company, product or service names may be trademarks or service marks of others.
5 of 5 1/23/2008 2:55 PM