Oracle cultivates partners

Firm that structures best model for partners will win market share, says analyst

Oracle is ramping up its channel focus, following analyst predictions that getting channel strategy right could decide the winners and losers in the mid-market business software space.

Last year, Oracle saw a 10 per cent increase in the share of software it sold indirectly, and launched a packaged version of its ERP software, e-Business Suite Special Edition, which is aimed at SMEs and sold only through the channel. The firm is now trying to build on this.

Oracle said that over the next year it will add 25 engineers to its European channel support. It is also increasing online support for training channel partners and developing leads.

The vendor recently appointed Stein Surlien as its vice president of alliance and channels in EMEA.

Ian Langley, Oracle sales manager at systems integrator CompleSolve, said Oracle's commitment to reducing channel conflict has been vital in developing a relationship with the firm. "We need to know that we won't get competition on the consulting side," he said.

Tony Mulligan, senior director of channel sales at Oracle EMEA, said: "Progress hasn't been as fast as I'd have liked. But we're getting partners through our accreditation programme, and expect more to come online in the next few months."

But the battle for channel partners is far from over, according to Nigel Montgomery, research director at analyst AMR Research. "Oracle has not had a strong channel emphasis for a while. It has the opportunity to structure it well, but it will need good management.

"This is the year of the channel. Everyone is chasing the same VARs. The firm that structures the best model for partners will win market share," he said.

With software strategies set, vendors will do battle through their channel strategies, Montgomery added.