BROCADE ALLIANCE PARTNER BROCADE ALLIANCE PARTNER OVERVIEW The new Brocade Network Subscription (BNS) enables your customers to acquire a state-of-the-art Brocade Network, without making any initial capital investment. Instead, they simply pay monthly as part of their operating expenditure. GUIDE KEY VALUE IDC states that 67 percent of customers prefer a vendor who offers financing alternatives. That said, Brocade Capital Solutions should enter the conversation with every customer. As a subset of BCS, Brocade Network Subscription leads the industry by offering a new level of financial agility: • • • • • • • • No down payment or capital required to install equipment Potential OpEx tax advantages No term limits Complete obsolesce protection, ability to upgrade at any time Scalability – expand or contract at any time Provision for future growth and only pay for current usage Total solution – services included in the monthly cost Align billing cycles to revenue SALES OPPORTUNITY Brocade Network Subscription (BNS) gives customers the ability to pay for their network on a monthly subscription basis: • • • • To dynamically expand or contract installed ports To provide options to use OpEx dollars for network equipment To maximize business flexibility To enable effortless migration to the latest technologies TARGET AUDIENCE & SOLUTION VALUE Early adopters include: • Cloud/Hosting & Managed Service Providers • Rapid provisioning to accommodate new service contracts • Pay monthly subscription fees for actual utilization • Excellent buffer against equipment and technological obsolescence • Dynamically Changing Corporate Customers • Enterprises where network performance is strategically important • Enterprises that manage business performance on ROA or ROIC • Early adopters who desire greater flexibility for IT upgrades by minimizing capital outlay • Enterprises with dramatic fluctuation in employees BROCADE NETWORK SUBSCRIPTION • CapEx Constrained Companies – Government • Easy adoption for companies with lengthy or unpredictable budgetary cycles • Enables organizations to make strategic IT investments while conserving capital • Reduce the risk of investing in new technologies, projects, and services COMPETITIVE DIFFERENTIATION PURCHASE LEASE BROCADE NETWORK SUBSCRIPTION Cash Flow One-time purchase payment Monthly, quarterly, or annual lease payment Monthly subscription payment Accounting Capital purchase Capital or operating lease Operating expense Budget Capital Capital or operating Operating Technology Refresh Tied to purchase cycle Tied to lease term Decoupled from acquisition cycle Support Optional Optional/may be required pending lease terms Included Investment Risk Unused equipment Obsolescence Unused equipment Obsolescence n/a Under the upcoming accounting rules, operating lease treatment of the cost may not be permitted by 2014. Lease cost recognition may mirror cash purchase. Any classification information presented is not intended to be definitive; customers should consult their tax advisor regarding their unique situation. POSITIONING • • • • Focus on Net New Customer Opportunities of $500,000 USD + MSRP Brocade Network Subscription Value Proposition Opens New Doors Select sub-group of Brocade IP products Brocade Capital credit worthy BROCADE ALLIANCE PARTNER BROCADE ALLIANCE PARTNER KEYS TO ADDITIONAL INFORMATION Brocade Capital Sales Team: Cathy Gisi – [email protected] 248-200-7457 (North-east, Central US & Canada) Kelly Meltzer – [email protected] 408-333-2841 (South-east & Western US) Brian Hunt –[email protected] +44-776-917-1062 (EMEA) GUIDE CUSTOMERS BENEFITS BUSINESS IMPACT FINANCIAL IMPLICATIONS BUSINESS IMPACT Cash flow No upfront capital Top line revenue Differentiated offering Empower long and short-term planning CapEx to OpEx Enhanced ability to sell Access to previously unattainable accounts Optimize usage Pay as you go Embedded partner benefits Full financial portfolio to meet customer demands Online Help Website: www.NoNetworkCapEx.com www.BrocadeKit.com or www.MyBrocade.com FISCALLY RESPONSIBLE BUSINESS FLEXIBILITY WHAT YOU’LL SELL •A ll Data Center, Service Provides and Application Delivery products •D ata Center SAN deals must be pre-approved by sales management or part of a sanctioned sales program •C ampus LAN – all products except: •FastIron® SX blades that support only IPv4 •FastIron® WS •FastIron® GS •FastIron® LS •FastIron® Edge BUSINESS IMPACT QUALITY OF SERVICE BUSINESS IMPACT Upgrade or adjust capacity at any time Technological agility Financial selling assistance – Brocade Capital Brocade financial experts to support sales activities Maximum uptime with instant access to software updates and support Bundled support plan One-stop resource for equipment & acquisition Single-source for all needs: equipment, support and capital CALL BROCADE CAPITAL BASIC PRICE PLANS •L arger Deals: deals financed through Brocade Capital on average are 24 percent larger than cash deals at Brocade Consumption Based Plan 100% Presumed Utilization Plan •B illed on ‘Per Port’ usage •C ustomer must submit validated monthly usage report •B uilt in floor guarantee of minimum monthly usage •F lat monthly rate for an established configuration •O ption to have built-in monthly or annual seasonality Benefits: • T rue ‘pay as you go’ model, aligning actual use to billing •E xcellent to provision for upside use potential •N o capital outlay •6 0-day return policy Benefits: •P redetermined monthly expenditure from OpEx funds •N o capital outlay •6 0-day return policy •F lat or step down payments available •N o monthly usage report required •C ustomer Growth: repeat customers statistically buy more – year-over-year Brocade Capital customers are on track to buy 154 percent more in 2013 •R epeat Business: 92 percent of Brocade Network Subscription customers expand their deployment within six (6) months BROCADE NETWORK SUBSCRIPTION PARTNER BENEFITS •C ontact Brocade Capital early in the sales cycle. Professionally present leasing and iBNS financial solutions to both open the door and respond to your customer’s economic/financial requirements © 2013 Brocade Communications Systems, Inc. All Rights Reserved. 01/13 CP-SG-110-00. Brocade, the B-wing symbol, BigIron, DCFM, DCX, Fabric OS, FastIron, IronView, NetIron, SAN Health, ServerIron, TurboIron, and Wingspan are registered trademarks, and Brocade Assurance, Brocade NET Health, Brocade One, Extraordinary Networks, MyBrocade, VCX, and VDX are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. Other brands, products, or service names mentioned are or may be trademarks or service marks of their respective owners.
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