On March 4 and October 28, 2008 (IBM^® U.S. Business Partner Announcement Letters 508-762 and 508-988), IBM announced the ability for IBM Remarketers to market eligible IBM Products to Resellers of Industry Solutions. Effective today, the Industry Solution Reseller (ISR) approval criteria for IBM System x™, System p^®, System i^®, Power Systems™, and IBM Storage Products has been expanded to include public sector solutions and selected services related offerings.

Firms who market public sector application solutions, implementation or support services to local or state government end users may be eligible to establish an Industry Solution Reseller relationship with IBM Remarketers to market IBM Products.

IBM Remarketers should verify their ISR candidates are able to meet the following qualifications before submitting an Industry Solution Reseller application to IBM:

The ISR must market an IBM approved public sector solution or IBM Products with public sector-related services as listed above to local or state government end users. Firms with a United States federal, state or local government designated Small Disadvantaged Businesses (SDB), Historically Underutilized Business Zone (HUBZone), certified Minority or Women Business Enterprises (MBE/WBE), or other government disadvantaged business classification may market IBM products with at least one of the public sector-related services listed above. If the ISR is marketing public sector-related services only, their IBM remarketer must be approved for the applicable Public Sector category VAE. The ISR application must include a description of the public sector-related services offerings in lieu of an industry application solution. One or more of the above public sector-related services must be entered in the "Name of the industry application or industry hardware/software solution(s)" ISR application question. The ISR candidate firm, or their IBM Remarketer must submit an ISR application at the following web site: http:// www.ibm.com/partnerworld/isr.

ISR candidate firms who wish to market public sector-related services solutions must provide proof of their Small Disadvantaged Businesses (SDB), Historically Underutilized Business Zone (HUBZone), certified Minority or Women Business Enterprises (MBE/WBE), or other government disadvantaged business classification status in the ISR application by including references to official local, state or US Government web sites where IBM can verify a firm's classification status. The reference web sites must be specific, and not general, links to the firm's classification status that are available via the internet. The specific internet links, where IBM can verify a firm's certification status with one click, must be included in the company description or comments section within the ISR application. IBM may request the ISR firm provide copies of their classification status through e-mail requests if specific internet sites are not provided or IBM was unable to locate a firm's classification information via the internet.

For ISRs approved to market IBM products with one of the public sector-related services listed below, the definition of an Industry Solution referenced in the IBM Attachment for Marketing to Resellers of Industry Solutions (Z125-7867) does not require a firm to own and develop an application solution. The ISR's public sector-related services offerings listed below will replace the requirement to own and develop an industry application solution. The ISR must market IBM Products in conjunction with either a public sector application they own and develop or at least one of the following public sector-related services which will be considered as an industry solution.

The public sector-related services includes:

Even though there is no Billed Value Measurement (BVM) requirement, IBM Products that require a Value Added Enhancement (VAE) and are marketed with one of the above public sector-related services, must be marketed with the applicable Public Sector category VAE. IBM Remarketers must specify the Public Sector category VAE, including approved state(s), when they submit an ISR application. The IBM Remarketer must be approved for the appropriate Public Sector category VAE before submitting an ISR application. The VAE requirement does not apply to System x or System Storage sales.

If an IBM Systems Integrator is marketing IBM Products to an ISR, the IBM Systems Integrator or the ISR must provide systems integration services, as defined in the IBM Business Partner Agreement Systems Integrator Attachment, for the development of a solution which is the reason for the local or state government end user's acquisition of the products and services marketed by the ISR.

IBM Remarketers are responsible for all the terms and conditions contained in the IBM Business Partner Agreement and the IBM Attachment for Marketing to Resellers of Industry Solutions.

IBM Remarketers approved to market to ISRs under the guidelines set forth in this announcement must ensure their ISRs only market IBM Products to local or state government end users and may not market products under this approval to commercial end users.

IBM reserves the right to limit the number of ISRs per state for an IBM remarketer who is approved to market IBM Products to an ISR.

IBM Products marketed to local and state government end users are not eligible for IBM promotional rebates. The IBM Remarketer may not claim a rebate or incentive for IBM Products marketed by an ISR or their channel resellers to a local and state government end user.

IBM reserves the right to modify or withdraw the terms of this announcement upon written notice.

For more information on the Industry Solution Reseller, terms and conditions, refer to IBM Business Partner announcements 508-762, dated March 4, 2008 and 508-988, dated October 28, 2008.

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