ARMONK, NY–( EMWNews – April 1, 2008) – In recognition of the important role business

partners play in the growth and success of its software business, IBM

(NYSE: IBM) today announced an initiative for financially rewarding

business partners in next generation economies based on their role in the

sales cycle. The Software Value Incentive (SVI) program represents one of

the most simplified incentive approaches in the industry, enabling

companies to increase profits by delivering higher value software solutions

to their customer base. With today’s news, IBM will also offer enhanced

localized co-marketing support to equip companies in these emerging

economies to respond to local market demands.

Looking for ways to help business partners boost their profit margins when

selling software, IBM has seen a tremendous response on its recently

launched SVI program. Initially launched as a pilot in the United States,

Canada, United Kingdom and Australia, IBM today is announcing that the SVI

program is available to business partners in 122 countries, with special

focus on emerging economies, such as such as Vietnam, Egypt, South Africa

and United Arab Emirates, where IBM continues to nurture the growth of new

companies.

An initiative designed to financially reward business partners based on

their role in the sales cycle, SVI aims to recognize companies that invest

time into identifying opportunities early on in the sales cycle, and help

drive them through to completion. Nearly 2,000 worldwide business

partners have already participated in the pilot launch, representing

millions of dollars in realized profits. As a result, many of these

companies have been able to re-invest revenue in future growth initiatives.

By bringing together companies at various stages of the sales cycle, SVI

also enables businesses to expand their ecosystem and identify partners

that have complementary skills, services, business models and distribution

channels. The SVI program significantly increases the incentives for

business partners that are involved earlier in the sales process — at the

identify and sell stages — independent of whether they’re involved with

fulfillment activity. Additionally, SVI offers incremental incentives for

partners who sell solutions into the high growth small or medium-sized

business (SMB) customer segment, another key growth area for the IBM

business. In fact, 60% of SVI transactions have been SMB space, given IBM’s

focus on this market.

For instance, Texas-based Ascendant Technology, a growing mid-sized

business Service-Oriented Architecture (SOA) portal, and business

integration solutions, has successfully generated over $2 million in

revenue from the SVI program alone in less than 2 years. Looking for

unique ways to partner with other companies and expand their customer base,

Ascendant Technology turned to IBM’s SVI program as a way to get involved

and add value to deals at different stages of the sales cycle.

As a result, Ascendant Technology is able to use their expertise and

consulting assets to help close deals and retain a high profit margin,

while also ensuring their investment of time, money and resources in the

deal is protected. In fact, because the SVI program protects the

investments of each partner, it has allowed Ascendant to pursue

opportunities they wouldn’t have necessarily sought out before.

“We were thrilled when IBM launched the SVI program. This is singularly

one of the most important channel programs that supports value-added

players like us,” said Jim Deters, president, Ascendant Technology. “One of

the greatest benefits of the SVI program is that we are financially

rewarded for the value that Ascendant Technology brings across various

stages of the sales cycle. The SVI program is a huge success for our firm,

and we are using the profits to re-invest into the future growth of our

business.”

Further enabling companies around the world to increase their revenue while

better serving the needs of customers, IBM today also announced that it has

extended its Grow Your Business initiative to business partners in Japan.

Due to strong demand for increased localized support, IBM also is

translating the tool into French, Spanish, German, Italian, Portuguese,

Korean and Chinese. Initially launched in October 2007, Grow Your Business

with IBM Software provides specific cross brand sales scenarios across IBM

Software Groups’ vast product portfolio. The tool facilitates cost

effective growth by recommending scenarios that utilize Business Partners’

existing areas of expertise and available skills. With this initiative,

business partners gain access to an online analysis of software products,

descriptions of their business value and provides an instant estimate of

their return on investment.

“As part of its own growth strategy, especially in emerging economies, IBM

is helping business partners boost the margin they see from the sales of

IBM middleware,” said Mike Borman, vice president, Worldwide Software

Sales, IBM. “With programs such as SVI and Grow Your Business, IBM is

leapfrogging the competition by offering the most comprehensive incentive

programs to the widest range of partners, including ISVs, system

integrators and resellers, including those in emerging economies who are

leading with IBM’s middleware portfolio of offerings.”

For more information, please visit: www.ibm.com/partnerworld.

On April 30th, IBM will bring together its most strategic partners from

around the world for a two-day session to discuss topical issues, trends,

strategic directions and opportunities for growth. For more information on

IBM’s Business Partner Leadership Conference, please visit:

http://www-1.ibm.com/partnerworld/pwhome.nsf/weblook/2008_conference.html.

Contact: Faye Abloeser IBM 908-770-0762 [email protected]