IBM Software License Prices and Lodestar Project Rates for 2024

IBM Software License Prices and Lodestar Project Rates for 2024
IBM Software License Prices and Lodestar Project Rates for 2024
Written by Mike Bernaiche, October 27th, 2023

These are the blogs I’m not a fan of writing but feel it necessary to provide you with the latest information from IBM and Lodestar regarding IBM Software Licenses and project rates.

As you are aware, the US has experienced significant rate increases in almost everything from insurance, labor, and operating expenses. As such, we want to inform you about some crucial updates related to IBM software licenses and our project rates for the upcoming year, 2024, so you can budget appropriately.

IBM Software License Prices:

Effective January 1, 2024, IBM will be implementing a 6% price increase for their software licenses. To assist you in managing your budget effectively, we recommend considering any upcoming licensing needs before December 23, 2023. By making your purchase before the year-end, not only will you ensure seamless continuity of your software licenses, but you will also enjoy significant cost savings.  See IBM Announcement

Additionally, for those anticipating an expansion of their licensing requirements in 2024, this proactive step will safeguard you against the price increase, helping you make the most of your IT budget.

We understand the importance of budget planning for your organization. We encourage you to take advantage of our end-of-year discounts. If you anticipate needing additional licenses in 2024, purchasing them before December 23, will not only grant you access to the lower 2023 pricing but also offer special discounts as part of our year-end promotion.

Project Rates Adjustment:

Starting January 1, 2024, we will be making a modest adjustment to some of our project rates, resulting in an approximate 5% increase. Please be assured that this adjustment will not impact the terms of your current statements of work. We remain steadfast in our commitment to providing you with the exceptional quality of services that you have come to expect from us.  This increase will not be across the board on services, only certain services will see this increase.  Our rates remain very competitive in the industry, and we believe the value we provide far outweighs the cost.

We provide the following services:

  • Technical Support – This includes upgrades, installation of new IBM Analytics software, database work, security, and much more.  Ask us about our upgrade bundles to save you money.
  • Planning Analytics and Cognos Analytics Consulting Including - architecture, modeling, model redesign, end-user reporting, and dashboard creation.
  • Power BI Consulting – data, creating reports, and visualizations.
  • Tableau Consulting - data, creating reports, and visualizations.
  • Training – Cognos Analytics and Planning Analytics training for both the novice and experienced. Including both modeler and end-user training.

Speaking of training – coming soon is a public virtual Cognos Analytics training class.  You can find all the important info here.

Summary

If you have specific licensing requirements or need assistance understanding how these changes might affect your organization, please contact us at your earliest convenience. We are here to assist you in finding the most cost-effective solutions tailored to your unique needs.

Please feel free to contact me directly at mbernaiche@lodestarsolutions.com with any questions or concerns you may have. We value your partnership and are dedicated to supporting you through this transition.

Thank you for choosing Lodestar Solutions as your technology partner. We are excited about the opportunities that 2024 holds and look forward to continuing to support your organization's growth and success.

How the IBM Teaming Agreement for IBM Partners Really Works

How the IBM Teaming Agreement for Partners Really Works
How the IBM Teaming Agreement for Partners Really Works
January 21st, 2021

In our last blog we discussed the IBM Teaming Agreement process and how beneficial it is for IBM Partners and their clients.  Now we will share how the IBM Teaming Agreement for IBM Partners really works.  This is information Lodestar Solutions learned the hard way and is the process we use for teaming with other boutique IBM software partners to add more value to our clients.  If you are an IBM partner that sells software other than Analytics, we want to connect with you.  We are looking for IBM software partners that are experts in their niche.  Contact Services@lodestarsolutions.com.

Not an IBM partner yet but looking to become one.  Check out IBM partner world.

Before we dive into the Lodestar’s partner teaming process, let’s give a little refresher.

What is the IBM Teaming Agreement for Partners?

The IBM Teaming Agreement Program was launched by IBM in May 2020.  And, I think I can say, we all missed it because, well the world was changing.  For over 16 years I have owned an IBM Business Partner firm and have been hoping IBM would figure a way to allow boutique business partners like Lodestar who specializes in IBM Analytics to partner with other boutique partners that have other areas of expertise, like security.  My clients know I don’t know everything, but they also know I am very connected with other experts.  So, they come to me seeking advice on areas that I am not the expert.  I love to connect clients with other IBM Partner firms, so they benefit from the best resources available.  In May 2020 IBM, led by John D’Arco, approved a new IBM Teaming Agreement Program that allows two partners to work together to better serve IBM clients, especially the mid-market.  The partner that has the client connect can team up with a partner that has a different expertise and sell the client IBM software products that are out of their usual area.  See our earlier blog on the benefits of this.

The Process of IBM Teaming

After our last blog was released several people reached out to us to learn more about partnering with Lodestar Solutions.  Even some IBMer’s called asking how it works, so below I share my notes on how the IBM process works for partners like Lodestar that want to partner with other experts and boutique IBM resellers.

The Players:

  1. An opportunity is discovered by an IBM Partner that is outside of their approved brands.  This may happen when an existing client expresses, they need help with IBM software products that the partner does not typically work with.  We will call the originating partner or lead Partner, Partner L.  Partner L finds a partner that has expertise in the IBM software products and services the client needs.  This partner we will call the expert partner or Supplying Partner, Partner S.   Partner L and Partner S agree to work together to win the deal and provide services to the clients benefit.
  2. Partners enter a Letter of Understanding as to who does what work and the distribution of proceeds.  This is not an agreement; this is between the partners.  At Lodestar Solutions we drafted our own version of a Letter of Understanding and are happy to share with our Partners.

Involving IBM

3. Partner S needs to send IBM an email requesting a Teaming Agreement Document  nachops@sk.ibm.com with the following information:

a. The subject line must be "Teaming Relationship".
b. The legal name, CEID and Distributor Partner S sending the request. 
c. The Product Family for the teaming relationship. Note IBM will tell you they need the IBM software products but it’s really the product family.  And the contracts they send will most likely state any IBM Software in Passport advantage, so I am not sure why they ask.  The rules for system are different. This blog covers software only.
d. The legal name, CEID and Distributor of Partner L who will participate in a teaming relationship. 
e. An employee contact name and email of the participating Reseller.
f. Identify who is the Lead BP and Supplying BP.

4. IBM will send both partners a copy of their respective teaming agreements to sign.  There are two documents for each program and could be four if you want reciprocating agreements.

5. Signed Teaming Agreement is sent to IBM nachops@sk.ibm.com for acceptance.

IBM Deal Registration:

6. Partner S will register the opportunity in MYSA to receive approval for CVR margins including Solutions if appropriate.  Partner S will have to have an approved solution, and contracts and invoices for services should reference the solution.

7. Partner L sets up a discovery call with the Client and Partner S and explains the relationship with Partner S.  Beginning the sales process where both firms work together. 

a. Both firms should be able to show two-way communication with the client and document their sales process to be able to meet IBM sales audit standards.

Obtain a Special Bid:

b. IBM Partners work together on the configuration and request a special bid from IBM which is sent to IBM Partner S.  Bid request must reference IBM Partner L and their CEID in the comments or justification section and show the client as the end user not IBM Partner L.

8. IBM Partner S sends a copy of the quote to IBM Partner L with any special terms, so that IBM Partner L can provide a quote to the client and include terms. 

a. Note the price the client is quoted by IBM Partner L to the client MUST match the entitled price IBM quoted for the client and the quote should reference any IBM approved solutions that will be provided.

Order is Processed.

9. Client sends the PO to IBM Partner L for processing.

10. IBM Partner L sends a PO to IBM Partner S for the entitled price less agreed upon margin that IBM Partner S and L agree to for IBM Partner L’s sales efforts.  This should have been agreed to in the letter of understanding (LOU).

11. IBM Partner S sends a PO to their VAD for processing.

12. IBM Pays IBM Partner S any CVR payments.  

a. Note IBM has no visibility to IBM Partner S.  IBM Partner S and IBM Partner L decide how to the share the transaction margins and incentives in the LOU and do not have to disclose it to IBM.

Service Agreements.

13. IBM Partner L sends the client a services agreement with a detailed SOW that includes that the services are being provided by IBM Partner S a subcontractor of IBM Partner L, and that the services include IBM Partner S’s IBM approved solutions.

a. Note IBM Partner L can provide their services invoiced as a line item.  If an IBM Product requires Reseller S to provide associated services for that Product to an End User, Reseller S provides those services to the End User and may invoice those services to Reseller L.  Reseller L must invoice those associated services to the End User referencing Reseller S as performing those services. 

Notes from the CVR Team:

Notes from the CVR Team

14. Client signs IBM Partner L’s service agreement

15. IBM Partner L and IBM Partner S sign a SOW for IBM Partner S to provide services to client.

16. IBM Partner L provides detailed billing to client so that if IBM decides to do a sales audit on IBM Partner S’s sales transaction, IBM Partner L can provide the details to IBM Partner S.

a. Services should reference who is doing the work (IBM Partner S) and any IBM approved solution included.

Yes, that is a lot of steps, but the most important thing is to know that if you know the steps it’s not difficult.  The IBM Partner Teaming Agreement works even if the IBM Partners use different distributors or VADs. 

Renewals Under an IBM Teaming Agreement

In the future the renewal will be assigned to IBM Partner S as the incumbent because in IBM’s eyes they acquired the software from the distributor.  But we learned that as long as IBM partner L provides an email from the client asking them to quote the renewal in the future year, they can quote the renewal. 

In Conclusion

Lodestar Solutions is looking for IBM Software Partners that specialize in all areas of IBM software!  We want to help you grow your business and introduce you to our clients.  We are discriminating as we only want to work with the best in their area of specialty.  Are you the best?  Are you looking to grow your IBM Software business?  We shared how the IBM Teaming Agreement for IBM Partners really works.  Now we ask you contact us and share your details.  We can all grow through partnering and better serve our clients.  Email us at services@lodestarsolutions.com.

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