IBM International Passport Advantage Agreement

The IBM International Passport Advantage (PA) Agreement Attachment for Service Providers is required for IT service providers that acquire IBM software through a PA Agreement and retain license to the software for use to enable information technology (IT) services to customer end users.

The Attachment for Service Providers (Attachment) overrides the PA Agreement terms that prohibit the use of software to provide commercial hosting or other commercial information technology services to third parties. IT service providers that require the Attachment are typically described as xSPs where x is the variable describing the service provider’s business model (e.g., Asp for Application service provider).

Benefits to xSPs that are approved to execute the Attachment for Service Providers include the following:

• A commitment from IBM to acquire software under a new PA Agreement with the Attachment at not lower than PA RSVP Level D, regardless of initial software purchase. Additionally, for the PA Agreement with the Attachment for Service Providers, the xSP will not be re-leveled below PA RSVP Level D. The RSVP level can increase with purchase volume.
• The xSP has the ability to reuse a particular software license in support of more than one customer end user, as long as at any one time there are sufficient licenses in place to support all customer end users. Example: if the xSP completes an IT service provisioning engagement with one of their customer end users, the software used to provide services to that particular end user could then be used to the same extent to provide IT services to a different customer end user.

xSPs that have a business model which calls for them to be the licensee of the IBM software, and that offer an IT service to their customer end users which includes some significant value over and above the value of the IBM software are the target audience for the Attachment for Service Providers. In this business model, the xSP is responsible for software maintenance (product updates and technical support ) of the IBM software used by their customer end users in IT service provisioning engagements.

Some xSPs have a different business model in which they prefer to resell IBM software along with their own service offerings to customer end users. In this model, the customer end user of the xSP’s services would be the licensee of the IBM software, and the xSP would be considered as a software reseller. The Attachment for Service Providers is not designed for xSPs that are acting as software resellers. xSPs that have a business model in which they are not the licensee of the IBM software are encouraged to review other offerings that are available from IBM by contacting their IBM Sales Representative. 

To execute the Attachment for Service Providers offering, xSPs must:

• Provide documentation (e.g., external web site or sales literature) publicizing their IT service provisioning business model.
• Provide added value in customer engagements beyond the value of the IBM software used in IT service provisioning.
• Complete and submit the Request for Approval Form (available from xsw@us.ibm.com) to execute the Attachment for Service Providers and receive approval from IBM Establish a separate and distinct PA Agreement in conjunction with the Attachment for Service Providers for the acquisition of IBM software to be used solely in providing IT services to customer end users outside the xSP’s own Enterprise.

xSPs must accept and execute the terms and conditions of the IBM International Passport Advantage Agreement and the Attachment for Service Providers. The PA Agreement with the Attachment for Service Providers is used exclusively for the purpose of acquiring IBM software in support of the xSP’s IT service provisioning business, and may not be used to acquire software for internal use within the xSP’s own Enterprise.

Once the PA Agreement with the associated Attachment for Service Providers has been executed, the xSP may order software under this agreement for service provisioning to customer end users using the standard software fulfillment channels for Passport Advantage.

The Attachment for Service Providers may not be added to an existing PA Agreement which an xSP may already have established or plans to establish in the future in order to acquire software for internal use within their own Enterprise.

Certain IBM software products are not eligible for use in providing IT services under the Attachment for Service Providers (i.e., CEO part numbers and products listed at: Excluded programs.) Questions may be directed to xsw@us.ibm.com or your IBM Representative.