Channel ups Oracle profits

Database giant attributes success to reseller partners

Despite the continuing challenging economic climate, Oracle has praised its indirect partners and revealed plans to grow its channel even further over the coming years.

Earlier this year, the database software vendor revealed it had recruited 300 value-add resellers (VARs) in the first year of its channel programme, with indirect sales increasing by 50 per cent.

"Most VARs enjoyed a profit [working with Oracle]. Some have seen significant growth in the past year," said Trudy Norris-Grey, vice president of multi-channel sales at Oracle UK.

"Our strategy is to continue learning where things need to be improved and to communicate with VARs."

Norris-Grey added that Oracle has seen growth in the public sector, retail and also the mid-market, and generated 1,800 leads for resellers over the past 12 months.

Unlike other vendors that seem to be cutting back their channel, Oracle is doing the opposite, she claimed.

"We are constantly reviewing the skills level of partners to help them enhance their offering and we are always looking to take on new partners," she said.

Although she declined to comment on the specific details of Oracle's ongoing bid for rival vendor PeopleSoft, Norris-Grey said that the channel should be prepared for more consolidation.

"Customers are really keen to understand who will be around in the long term because they are not only interested in the products and services but in the stability factor," she said.

James Governor, principle analyst at RedMonk, said all major vendors are wooing the channel.

"It is obvious there is not any headroom in the enterprise market for growth, so vendors need SMEs, and that means the channel," he said.

"For Oracle it is even more important that it puts processes in place to prevent channel conflict, because a lot of firms that sell applications on Oracle infrastructure are nervous about its excursions into the apps market."