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Managed Service Provider (MSP) utility pricing offering for IBM Power Systems

Announcement Letter Number 312-133

November 20, 2012

Value proposition

To mitigate the risks associated with starting and/or extending a hosting services business, IBM® is making available, to qualified Managed Service Providers (MSPs), discounts for the components of a Cloud Infrastructure purchased with Power Systems™. To take advantage of the discounts, a Managed Service Provider must contract with IBM to pay for the use of the Cloud Infrastructure.

The offer

If eligible Managed Service Providers (MSPs)*, acquire a Cloud Infrastructure with IBM Power Systems solution for the purposes of providing private cloud hosting services on IBM Power Systems, they can receive a discount off the Single Unit Purchase Price (SUPP) and One-Time Charge (OTC) of the eligible Power Systems products they acquire.

Initial Cloud Infrastructure Purchases

For Initial Cloud Infrastructure Purchases, the products eligible for a discount are:

In order to qualify:

Additional Cloud Infrastructure Purchases

For Additional Cloud Infrastructure Purchases in which the MSP is adding products to a solution initially acquired under the terms of this offering, the products eligible for a discount are:

In order to qualify:

The MSP Hosting Infrastructure with Utility Pricing contract establishes a Maximum Amount Due, which is a fixed amount the MSP is required to pay for the use of the Cloud Infrastructure. Each quarter, the MSP must collect use metrics, calculate the amount owed for use, and purchase a quantity of Core User Features (billing features) that satisfy the quarterly amount owed. The quarterly payment is applied against the Maximum Amount Due until the Maximum Amount Due is fully paid.

For a list of eligible products, refer to the Qualifying/Eligible products section.

* defined as a company that is hired by clients outside such company’s Enterprise to perform certain information technology services, such as but not limited to hosting workloads, on an ongoing basis, for an agreed upon fee as specified in a service level agreement (SLA) or other contract.

Start and/or end dates

Orders for the eligible products must be received by IBM on or after November 20, 2012.

Where is it available?

This offering is available only in:

This offering is not available in the IBM - Caribbean North District.

Qualifying/Eligible products

Eligible Power Systems servers**

                      Machine          Minimum   Discount
Description           type     Model   SUPP      percent

BladeCenter® PS703 7891 73X $ 30,000 55% Express Power 720 Express® 8202 E4C 40,000 55% Power 740 Express 8205 E6C 55,000 55% Power 770 9117 MMC 210,000 65% Power 770 9179 MMD 210,000 65%

** RPQ 8A2060 must be ordered for each eligible new Power Systems server, model conversion to an eligible Power Systems server, and feature addition to an existing eligible Power Systems server.

Eligible Power Systems licensed programs

                                    Program    Discount
Description                         number     percent

AIX Express Edition V7 5765-G97 60% AIX Standard Edition V7 5765-G98 60% AIX Enterprise Edition V7 5765-G99 60% IBM i Operating System 5770-SS1 60% IBM i Per Processor Billing 5770-SSA 60% IBM i Application Server Billing 5770-SSB 60% IBM i Per User Billing 5770-SSC 60% Power VM Enterprise Edition 5765-PVE 60% SWMA for i5/OS® and Selected 5733-SPE 60% Products 3-Yr Extended Registration AIX Express Edition SWMA 3-Yr 5733-G90 60% 3-Yr SWMA for AIX® 5733-SM3 60% Enterprise Edition 3 Year SWMA 5733-AEZ 60% 3-Yr SWMA for IBM PowerVM® 5733-PVE 60% Enterprise Edition

Additional information/conditions

To take advantage of the offering discounts, a Managed Service Provider must contract with IBM to pay for the use of the Cloud Infrastructure. The contract that is signed by IBM and the MSP includes specific requirements the MSP must meet, in order to qualify for the discounts:

IBM reserves the right to modify or withdraw this offering at any time.

This offering is subject to the terms and conditions of any applicable Agreements.

IBM Global Financing

Financing may be available. Refer to the following IBM Global Financing Web site at:

ibm.com

For information on IBM special offers, refer to the following Web site:

Can this offer be combined?

This offering cannot be combined with other applicable IBM discounts or educational allowances on the eligible products.

Business Partner information

IBM Business Partner - Distributors; IBM Business Partner - Solution Providers and Resellers who acquire products from IBM; IBM Business Partner - Solution Providers and Resellers who acquire products from IBM Business Partner - Distributors; and IBM Business Partner - Systems Integrators may access information for the corresponding Business Partner offer. Due to participation eligibility, Business Partners may not be able to view every offer. PartnerWorld® ID and password required (use IBM ID).

Business Partner Announcement Letter 512-528, 512-529, 512-530, 512-531

Order now

To order, contact the Americas Call Centers, your local IBM representative, or your IBM Business Partner.

To identify your local IBM representative or IBM Business Partner, call 800-IBM-4YOU (426-4968).

      Phone:      800-IBM-CALL (426-2255)
      Fax:        800-2IBM-FAX (242-6329)
      Internet:   callserv@ca.ibm.com
      Mail:       IBM Teleweb Customer Support
                  ibm.com Sales Execution Center, Americas North
                  3500 Steeles Avenue East, Tower 3/4
                  Markham, Ontario
                  Canada
                  L3R 2Z1

Reference: YE001

The Americas Call Centers, our national direct marketing organization, can add your name to the mailing list for catalogs of IBM products.

Trademarks

IBM, AIX, BladeCenter, Express, PartnerWorld, Power, PowerVM, i5/OS, and ibm.com are registered trademarks of International Business Machines Corporation in the United States or other countries or both.

Power Systems is a trademark 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.