Oracle puts marketing top of channel investment list

Oracle UK has revealed plans of how it will spend its share of the $500 million allocated by its parent company to increase its worldwide channel marketing programme.

Proposed methods include the establishment of a dedicated channel marketing team within the vendor's general business unit, the recruitment of additional personnel and a reallocation of financial resources to concentrate on marketing support for Oracle resellers.

The plans were outlined to resellers at the UK channel launch of Oracle 8i last week.

Jenny Edmondson, marketing manager at Oracle responsible for implementing the scheme, said at least 15 per cent of the business unit will be dedicated to channel marketing. Recent recruits to the team include Nigel Thomas, internet marketing manager at Oracle, who will become head of channel marketing.

Edmondson said the changes were made in response to reseller requests and the vendor's desire to broaden the customer base that is targeted by the channel. The ceiling for channel-only sales is #200 million. Oracle deals directly with customers that have higher revenues.

'We intend to increase this bar so that a larger proportion of the market is served exclusively by third parties,' said Edmondson. With regard to the allocation, she added: 'This represents a radical increase in resources set aside for the specific purpose of supporting resellers' marketing efforts. While I can't release actual figures, I can tell you that seven per cent of the general business unit's budget will go directly to Oracle resellers.'

She added the vendor was shifting the focus of channel investment from sales support to marketing, 'to help generate user demand for Oracle products supplied through resellers and destroy the perception that Microsoft is the only alternative for mid-market customers. Revenue in this area has increased by 130 per cent since last year, so it makes sense to focus our efforts on a growing market.'