Reseller News

Oracle seeks channel boost

ORACLE New Zealand plans to launch demand-generating activities around its mid-market offerings to increase the amount of business it does through channel partners, but will not be increasing its number of resellers to do so.

This strategy is in line with the aims of the vendor globally as stated by company president Charles Phillips during the Australia/New Zealand leg of Oracle’s OpenWorld conference in Melbourne this month.

Phillips told delegates during the opening address of the event that Oracle is “here to stay” as regards working with channel partners.

“We’ve been in and we’ve been out [of the channel] during the last 15 years — now we are definitely in,” Phillips says.

According to Phillips, around 40% of new licence revenue globally is comes through channel sales and he is keen to increase that proportion in order to compete better with companies with large channels.

However, when asked by Reseller News what the ideal ratio between direct and channel-generated sales would be, Phillips said that would differ “wildly” from region to region.

In Asia-Pacific, 80% of revenue comes via channel partners, but New Zealand and Australia are lagging behind that figure with only around 19% of revenue in each country coming from the channel.

“We would like it to be higher [in Australia and NZ] and are launching some initiatives around it,” says Phillips.

According to New Zealand country manager Robert Gosling the initiatives include marketing activities to create demand for Oracle’s mid-market offerings, as well as working closer with independent software vendors (ISVs) that develop add-on solutions for Oracle software.

The company has also established a strategic partnership with hardware giant Dell, which will bundle Oracle database server software with its servers.

Meanwhile, Gosling aims to leverage off current partners to boost new business for the mid-market database and business application offerings, but says Oracle’s strategy does not include appointing additional resellers.

“We are satisfied with the number of partners we have and want to focus on mentoring them. With the size of the New Zealand market we do not want to create channel conflict.”

Gosling says that even when channel partners are not involved in the fulfilment of orders, around 70% of Oracle’s business includes partners in some fashion, such as service delivery, support or through ISV offerings.

Van Wyk attended Oracle OpenWorld as a guest of Oracle.