Oracle calms culling fears in UK channel

Oracle US is trying to discourage its resellers from buying through distribution, raising fears in the UK that the vendor is planning a channel rationalisation.

The database vendor announced last week that it was planning to pull market development funds from any authorised US resellers which buy through distribution. It said it wanted to discourage resellers from pure fulfilment.

But Allen Swann, Oracle UK alliances director, said there were no plans to apply the strategy in the UK.

'Our strategy within the UK general business unit is to have all our partners buying through distribution.'

UK partners expressed surprise at the move. Steve Smith, technical director at Elcom, said he thought the decision was 'an odd move', although he did not anticipate any effects on UK resellers. But one source said: 'It sounds like Oracle is going to rationalise channels on a worldwide basis.'

In September, the vendor began a revamp of its sales channels on a worldwide scale. Oracle UK officials confirmed that the UK company would accredit its resellers, following the example of the US.

Swann said Oracle UK would announce its accreditation programme imminently, but declined to give details.