Solution Provider FY2018 Track Benefits & Requirements North America – Canada The information contained in this presentation is proprietary and considered Dell EMC Confidential information. THIS INFORMATION IS BEING PRESENTED FOR INFORMATIONAL PURPOSES ONLY AND ADDITIONAL TERMS AND CONDITIONS APPLY TO YOUR PARTICIPATION IN ANY OF THE PROGRAMS PRESENTED HEREIN. Dell EMC reserves the right to modify the terms of the Program and/or eligibility requirements applicable to the Program at any time or to terminate the Program at any time at its sole discretion. THESE MATERIALS MAY CONTAIN TYPOGRAPHICAL ERRORS AND TECHNICAL INACCURACIES. THE CONTENT IS PROVIDED AS IS, WITHOUT EXPRESS OR IMPLIED WARRANTIES OR GAURANTEES OF ANY KIND. © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution FY2018 Benefits & Requirements Introduction The Requirements and Benefits document provides Solution Providers a framework for understanding the rebates and tier requirements of the Dell EMC Partner Program. The program’s financial framework ensures a predictable and profitable experience so you can focus on driving richer and deeper engagements with your customers. Partner Program Regional Segmentation To best serve local markets, program requirements & benefits are based on four geographic regions. North America ZONE 1 ZONE 2 North America EMEA • USA • Canada This guide is focused on North America Zone 2 EMEA ZONE 1 ZONE 2 APJ • France • Rest of EMEA • UK • Germany Latin America ZONE 1 ZONE 2 • Brazil • Rest of LatAm APJ ZONE 1 ZONE 2 LatAm • Japan • Rest of APJ • ANZ (excluding China, Hong Kong and Taiwan) © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution 2 Program Overview Benefits and Eligibility at-a-Glance The Dell EMC Partner Program is structured to maximize our partners’ profitability as they further their investment in Dell EMC products and solutions. As partners grow their Dell EMC Revenue and complete Training Competencies, not only will their Tiers progress, but they will also be eligible for additional rebates. Simple. Predictable. Profitable.TM Tier Eligibility TIERS TITANIUM Revenue Requirement + Training Requirement = PLATINUM GOLD Rebate Eligibility Once Partners achieve a Tier, Base and Growth rebate eligibility begins based on Portfolio Competencies. For Services rebates, REBATES partner must be eligible to receive base rebate for respective eligible LOB. NBI does not require Portfolio Competencies. Base + Growth Product Revenue + Respective Portfolio Competency(s) = + Services + New Business © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution 3 Benefits As a Dell EMC Partner, you have greater profit potential, choice, and flexibility to grow your business. A powerful feature of the Dell EMC Partner Program is its comprehensive set of financial incentives, beginning at the first dollar of sales. With stackable rewards specific to various lines of business, Tiered Solution Providers have the opportunity to benefit financially with Dell EMC. Base Growth Services Rebates New Business Incentives Base rebates reward sales on eligible Growth rebates reward successfully By attaching services to opportunities, Additional incentives are awarded for lines of business and are paid back to growing your respective Dell EMC lines partners can earn additional rebates on bringing new customers to Dell EMC, dollar one with no caps. of business over time. top of the base rebates. and for expanding into new lines of business. FY18 Benefits Grid (Certain exclusions apply) · Paid from $1. · Differs by Partner Tier. Base · Rebate percentages vary by Tier and product. · Partners must hold the portfolio competency within the respective product category. · Includes attached legacy Dell Services & excludes all legacy EMC Services. + · Paid on incremental growth only. · Growth by LOB and varies by product. Growth · Two growth gate thresholds – 100% and 120% – applied for all LOBs. >100% or > 120% · Partners must hold the portfolio competency within the respective product category. · Includes attached legacy Dell Services & excludes all legacy EMC Services. + · Paid from $1. · Based on Services Goals (Penetration Rate = total services revenue/(total Dell EMC Revenue + Services Rev). Services · Service Goals vary by region and Tier. · Two gates: Gate 1 earns 0.5%, Gate 2 earns 1.0% of the total eligible Dell EMC product plus eligible services revenue (excluding EMC renewals). + · Paid on new customer/new LOB revenue only with an approved deal registration. · New Business is defined as partner sales to end customers who purchased below $10K in a given LOB over the past 24 months New Business for ISG or 12 months for CSG. · Same rebate percentage irrespective of type of New Business (new customer or new LOB). · NBI purchases qualify for 6 months from the initial transaction. MDF · Based on Tier. Titanium and Platinum eligible for earned MDF. Gold, Platinum and Titanium eligible for Proposal MDF. © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution 4 FY18 Benefits Grid CSG ISG Client Solutions Server Storage REQUIREMENT NW EI Certain exclusions apply A B C A B A B l TITANIUM 1.50% 0.75% 0.50% 4.00% 2.00% 4.00% 0.30% 4.00% 0.50% Base l PLATINUM 1.00% 0.50% 0.25% 3.00% 1.50% 3.00% 0.25% 3.00% 0.50% ($1) l GOLD 0.50% 0.50% - 2.00% 1.00% 2.00% 0.20% 2.00% 0.50% l TITANIUM 6.00% 6.00% 1.00% Gate 1: >100% l PLATINUM 0.50% 0.50% - 1.00% 2.00% 4.00% 4.00% Growth l GOLD - (on revenue above target) l TITANIUM 6.00% 6.00% Gate 2: >120%* 1.00% l PLATINUM 1.00% 1.00% - 1.50% 3.00% (500% cap) 4.00% 4.00% l GOLD - Services Penetration Gate 1 0.50% 0.50% 0.50% 0.50% - ALL TIERS ($1) Rate Target Gate 2 1.00% 1.00% 1.00% 1.00% - New Business l TITANIUM (New Logo / l PLATINUM 4.00% 4.00% 4.00% 8.00% 8.00% 8.00% 15.00% - LOB) l GOLD Vblock/Vxblock/VxRail/VxRack paid at Category A Storage rebate rates and are only eligible to partners authorized to resell Vblock/Vxblock/VxRail/VxRack (excludes NBI). Cloud Partner Connect (including Virtustream) paid at Category A Storage Base rebate rate. Virtustream paid on billings (quarterly in arrears). Virtustream Enterprise Cloud rebates are only paid to partners authorized to sell Virtustream Enterprise Cloud. Enterprise License Agreement/Transformational License Agreement (ELA/TLA) rebate rate is paid at the same rate as the EMC product it is sold with. *Growth Gates are not cumulative. Partner earns growth rebate at the highest achieved gate. (i.e. for Storage growth, Titanium partners earn 6% max.) © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution 5 Marketing Development Funds (MDF) FY18 Earned MDF Global Accrual Rates EARNED MDF PROPOSAL MDF Partner Type/Tier ISG Rate CSG Rate TITANIUM SOLUTION PROVIDER .95% .50% Reward qualified partners with earned and Discretionary fund PLATINUM SOLUTION PROVIDER .70% .50% predictable funding while intended to drive demand What is the intent of ensuring spend is aligned and awareness of Dell the fund? tightly to strategy and EMC products with demand (prescriptive strategic partners Eligible Products spend strategy) ISG: Titanium and Platinum partners will earn MDF on all ISG Product Who is eligible? Titanium, Platinum Titanium, Platinum, Gold purchases – excluding Services, VMware/Cisco components of Rack or Block and third-party products. Investments in partners Accrued based on What determines decided by Dell EMC product revenue/rates CSG: Titanium and Platinum partners will earn MDF on all CSG Product partner funds? teams based on based on type & tier proposals (including attached services) purchases. Proposals/Projects are Proposals approved approved only if aligned according to sales/ How are decisions to spend policy, quarterly marketing plans/partner made? sales goals and marketing growth opportunity and plans past performance Dell EMC reserves the right to not pay Incentives in certain circumstances, including, without limitation, where (a) Partner is merely acting as an agent, order fulfiller, or 90 days after the deposit fulfillment vehicle for another entity or (b) Partner has purchased products from 180 days after the is made (long term Dell EMC at pricing or discounts that are below Dell EMC’s standard pricing or (c) When do funds deposit is made (deposits planning based on annual Partner has purchased pursuant to special contract pricing between Partner and expire? are made in the quarter budget but quarterly Dell EMC. Note: Additional terms and conditions apply to the Dell EMC Earned MDF after they are earned) timeframes to drive spend Program. Please contact your account team with any questions or for the current aligned to priorities) program terms and conditions. © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution 6 Storage Deal Rebate Example Incremental storage deal (category A) example of an acquisition end customer demonstrating the rebate potential for each partner tier. End User is an Acquisition Growth Accelerator Competency Requirement Services Rebate account thus NBI eligible Already hit 100% of their growth target Obtained their Storage Portfolio Already hit Gate 2 of Services Rebate for the quarter Competency to be rebate eligible (thus growth rebate applies to total deal revenue) Services Rebate New Business Total incentive % on Base Payout + Storage Growth + + + MDF = Gate 2 Incentive incremental deal TITANIUM 4% + 6% + 1% + 8% + .95% = 19.95% PLATINUM 3% + 4% + 1% + 8% + .70% = 16.70% GOLD 2% + 4% + 1% + 8% + - = 15% MDF is a separate incentive to rebates and will be reimbursed to partners who drive marketing activities in alignment with the Dell EMC MDF Policy © Copyright 2017 Dell Inc. or its subsidiaries. All rights reserved. Strictly Confidential – Not for Distribution 7 Training and Competencies Dell EMC offers distinct, company-level competencies, which are comprised of individual certifications and credentials, with the flexibility to specialize in certain Dell EMC solution areas.