Midsize Opportunities with Oracle
By Editorial Staff

For software vendors operating in the midsize or considering moving into it, there has never been a better time to start working with Oracle, according to the company's vice president of Alliances & Channels, Stein Surlien.

"Oracle has really proved its strength in the midsize market over the last couple of years," he says. "Not only have we introduced a suite of horizontal business applications for this sector, but we have also revised our database pricing to make it accessible to even the smallest organisations."

The efforts have paid off. Companies that previously thought their only affordable database option was Microsoft are discovering the benefits of the secure, scalable, reliable Oracle Database - often coupled with the stability of Linux. And now that Dell is selling the Oracle Standard Edition One database with its SME PowerEdge servers, Oracle's technology footprint in the midsize could be set to explode.

It's a compelling opportunity for ISVs, according to Surlien. "Oracle's approach to the midsize is pretty much channel-only," he says. "In fiscal 2004, fully 40 per cent of our EMEA revenues came through the channel. This is a huge figure, and really underscores the earning potential for midsize ISVs working with Oracle."

Not only do Oracle's midsize ISV partners benefit from basing their solutions on the world's favourite relational database, but there is also a major opportunity to resell licences for the Oracle Application Server, Oracle Collaboration Suite and Oracle E-Business Suite.

"Midsize ISVs with a vertical industry solution can benefit from integrating their applications with the Oracle E-Business Suite," says Surlien. "Our suite of integrated horizontal applications are complementary to many industry-specific applications, and gives the ISV a large chunk of added-value for a low initial investment."

Oracle has also introduced embedded licensing for its technology stack, allowing ISVs to choose between buying Oracle licenses at a discount or at a percentage of the published list price of their own applications. ISVs can now sell the award-winning Oracle technology to new customers who have limited budget and technical resources - both major characteristics of midsize customers.

Partner Support

Oracle also has a comprehensive support system in place to help midsize ISVs grow their business. "We increased our partner support resources dramatically in FY04," says Surlien. "There are more than 100 people in our OracleDirect telesales and telemarketing division focused on generating demand and managing leads for our ISV partners' solutions, and this number will continue to increase."

Indeed, millions of dollars are now being spent on marketing to, with and through partners, according to Surlien. "Oracle organises a huge number of global, regional and local events, either for partners to learn more about Oracle, or for Oracle and its partners to demonstrate their joint proposition to a target audience."

Examples of the former include Oracle Hackers' Nights and Hackers' Weekends, where Oracle experts help partners to migrate their solution to an Oracle platform. In the latter category, ISV partners regularly present their solutions at Oracle events large and small - from very targeted industry roundtables to the annual OpenWorld events, attended by thousands of customers and prospects. Oracle also dedicates considerable time, resource and funding to helping partners' own marketing initiatives - from providing speakers at partner events and engineers on partner exhibition stands to conducting large-scale market research and telemarketing campaigns on partners' behalf.

Oracle's global presence can also be a very compelling proposition for ISVs. The company can help ISVs expand into overseas markets, and its huge distribution network and relationships with major hardware vendors like Dell, hp, Sun and Fujitsu-Siemens provide a ready channel to market for ISVs. "We can take ISVs where they want to go," says Surlien.

Oracle's own sales force, too, has been thoroughly educated about the value of partners and about working in co-operation rather than conflict: "Partnering is a core competency of Oracle's these days," says Surlien. "It is at the heart of everything we do - because it is the only way we are going to be successful, particularly when it comes to the midsize."

The bottom line: "We want to hear from you," says Surlien. "There are huge opportunities opening up for Oracle ISVs in the midsize and we want as many partners on board as possible to help us address the demand. Give us a try - you won't be disappointed."

Further Resources
Try the Oracle Standard Edition One Database today: click here for your free copy
Oracle Embedded Software Licences: bring your solution to a wider market