IBM Confidential
Rational SMB Whitespace Play
Description: / Quarter Play First Released: 4Q 2006Titles: CIO/VP/CTO; VP/Director of Development, Development Project Managers, QA Managers
Size: SMB
Industries: SMB
Locations: Worldwide
Objective:
Target SMB customers with teams of 10 – 30 developers that have 5 or fewer Rational licenses and that there are no current Rational opportunities. Mid-market customers of this size can be found in Engineering focused organizations. The delivery needs of Small and Medium Businesses. With business success in mind Rational provides this Whitespace Discount Incentive Sales to drive revenue and ensure client satisfaction by providing SMB with fully integrated and open standards-based software and services capabilities.
This promotion is designed to get Rational into accounts where no Rational licenses have been sold. The Play is not intended to help close/progress existing opportunities. Cannibalization of existing opportunities will be minimal due to the customer set being pure Whitespace plays for the brand. Because Rational is the only brand without "Express" products this Play will also help to assess pricing issues in SMB.
§ The brand attempting to increase reach into SMB and not to cannibalize add-on's to existing customers, or prospects already in the pipeline but to add net new clients with a special offer.
§ Our products being hard hit by open source alternatives (like Eclipse and Subversion) and other low-cost alternatives and we need to be more competitive to attract new accounts.
§ Microsoft is aggressively marketing Visual Studio Team Foundation and a price considerably below out tool prices.
§ Other competitors like MKS, Serena, HP/Mercury, Compuware and Borland continue to put on pricing pressure for SMB accounts.
Process:
§ For accounts to participate in this program would need to be pre-approved by the Regional Rational SMB Leaders; AG Central: Tom Hollowell, AG West: Ingrid Eheler, AG East: Denise Favorat, Canada: James Peng, LATAM: Carla de Almeida Carvalho, NE IOT - Pat Flisher, SW IOT: Anat Samra, AP: Jason Laufer
§ Each sales team will submit a list of accounts to which they would like to make this offer. The list will be limited to 40 approved accounts per sales team.
§ The SMB leaders will confirm that these accounts do not already have more than 5 Rational licenses and that there are no current Rational opportunities in Siebel.
Offer/Pricing:
§ Identify 40 whitespace accounts in each sales territory (with no more than 5 Rational licenses).
§ Offer an introductory discount with a maximum sale of $200,000 – pre-approved special bid anyone who wants to take advantage of this offer. Discount will be on a sliding scale based on deal size.
§ 25% discount for purchases with a Gross Order value between $12K to $20K
§ 40% discount for purchases with a Gross Order value between $20K and $40K
§ 50% discount for purchases with a Gross Order value between $40K and $200K
§ Gross order value is defined as the sale price after the customer’ entitled PA discount is applied.
§ Discounts are off of entitled price.
Part# / Description / Discount
Product Name (Lic+Maint 12 mo) / (See above)% off entitled PA band
Terms and Conditions
§ Play must be offered through a Software Sales Representative but can be fulfilled by a Business Partner Representative.
§ One offer per customer site.
§ Offer cannot be combined with any other play or special offer.
§ There are no changes to the base license agreements.
§ IBM reserves the right to audit compliance with these terms.
§ All purchases must be made by September 28, 2007
Field Pricing Guidance
§ Ensure the Terms and Conditions are met.
§ Geo pricing is allowed to further discount the entitled play price within their delegation, but would require support from SWG HQ Brand Pricing if beyond Geo delegations.
§ All terms and conditions in the product License Information remain unchanged
§ Entitlements are as described in the base license agreement.
§ Execution is via special bid.
Note: This play is effective until September 28, 2007.
Contact(s) Names and Notes IDs: Ingrid Eheler/Beaverton/IBM@IBMUS SWG Marketing: David R Locke/Boulder/IBM@IBMUS, Timothy M Barry/Raleigh/IBM@IBMUS
SWG Pricing: Kevin Robinson/Poughkeepsie/IBM@IBMUS
Products eligible for Play and Prices: All Rational products (Initial license and maintenance).
· L&M:
Part# / Description / DiscountAll / All Rational Products (Lic+Maint 12 mo only) / (See above)% off entitled PA band
· Annual Maintenance Part Numbers (if any): N/A