EMEA PAB
March 2nd 2010
ISVs and Oracle
Agenda EMEA PAB, Dubai
2nd March 2010
Time
09:00
09:20
09:30
10:30
10:45
12:00
13:00
13:45
14:30
15:00
15:45
16:15
16:30
Topic
Welcome
Intro ISV's and Oracle
ISV's and Oracle - Country Feedback
Coffee
ISV's and Oracle - Discussions
Lunch
OPN Specialized
Feedback/discussions on OPN Specialized
Coffee
Partner Communication
Wrap-up
AOB
Meeting end
Responsible
Stein/ Mark
Peter Stenz
All
Judson/Stein
Penny
All/Penny & Judson
Sylvie
Mark
Dinner at the Palm – Atlantis hotel – Levantine
Departure from the Park Hyatt at 18:00
LEVANTINE restaurant –
Middle Eastern concept infused with an explosion of
colours and Arabian inlfuences
Oracle Partner Advisory Board
Partnering
“Partnering requires all Partners to
transform their businesses in terms of
relationships, behaviours, processes,
communications and leadership.
Neither participant can succeed without
the other.”
OUTCOME OF THE PAB SESSION
Oracle and ISV engagement
Outcome of meeting
• ISV and Oracle share of the customer wallet does not seem
equitable
–
–
–
–
Pricing of EE
Flexible licensing model / Commercial proposal for ISVs
Revenue Recognition
License certificate
• There is a lack of recognition for ISVs for the Oracle license
sales they ‘enable’
– Promotion of big wins and snow ball effect
– Competition with Oracle sales
• Support issues
– No value to sell for ISVs past Year 1
– Pre-payment
– Share Support revenue w/ ISV
Oracle and ISV engagement
Outcome of meeting
• Oracle vertical acquisition strategy can provide unfair
competition
–
–
–
–
Complex organization - Contact person
Exclusivity for ISV for a period of time
Migration tool
Insight program for partners – Scalability?
• Knowledge transfer of new technology
– No issue – All is well
• Lack of visibility and promotion of ISV products available by
sales team
– ISVs are Competition
– Internal & External Communication of ISV
– Oracle branding for ISVs
•
Oracle and ISV engagement
Outcome of meeting
• Impact of Oracle specialized programme on ISVs
– Vertical specialization – Industry specialization
• Upgrade paths on new products
– Commercial “change of plumbing”
– PTS
• SUN
– Next PAB topic
• VMWare
– Roadmap for Oracle VM
– Taskforce on Virtualization
FEEDBACK FROM LOCAL PABS
Local PAB Feedback – UK (1)
• Agree with observations from pre-meeting
– Discussed at UK PAB and validated with Oracle UK SIG
• Arnaud Lagarde UC4, Fiona Martin IBM, Faisal Khan 3i
Infotech
– Escalating locally
• Mike Thompson presented at UK PAB
• On-going discussions with Mike Thompson
• Planned executive round table
Local PAB Feedback – UK (2)
• Oracle’s strategy for ISVs needs clarification
– Focus on larger partners only?
– In UK managed out of ’Tech’ team as leverage database,
but more affinity with ’Apps’
– Does it vary by geography or vertical?
• Specialized programe needs more focus on ISVs
– Perceived not as well thought through for ISVs (what were
design goals?)
– ISVs not have coverage in every country to be specialized in
each
– ISV measured by quality of solution for industry not by skills
• How does Validated and AIA fit in with Specialized?
Local PAB Feedback – UK (3)
• Communication
– Difficulty in communicating with different sizes of ISVs
• Administrator often contact
– CXO round table planned for 18th March
– Ensure attendance and Oracle open discussion
• Incentivise ISVs to leverage more Oracle add-ons
• Oracle competitors perceived to be more ISV friendly
– Perceived cultural issue around promoting ISVs
– Are ISVs a technology influencer of channel partner?
– BM have technology teams for technology enablement and
industry interlock
– Who has MBO around ISV satifaction?
– ISVs important as many Oracle acquisitions used to be ISVs
Local PAB Feedback – UK (4)
• How does success of ISV get measured in OMM
– Improve customer satisfaction with Oracle and thus renew
– Is value of ISV sale tracked?
• ISVs don’t get same discount as ’direct’
– So influence not as apparent
• SUN programme for ISV perceived as good
– What is planned?
Oracle and ISV engagement
UK PAB Top 5 Key Priorities
1. Review of ’specialised’ design goals in respect of
ISVs
2. Review use of AIA, Validated and other
programmes
3. Communication – how are right people reached in
ISVs. Good programmes not being effective
4. Better understanding of what is Oracle strategy for
ISVs
5. Improve culture of lack of interest/ appreciation of
ISVs by Oracle
Local PAB Feedback - Russia
• ISVs in Russia agree that almost all the issues
raised do exist and some of them are quite
significant for the local market..
• In other cases the ISVs see these issues as part of
the sales process and do not see the need to
escalate them further.
Oracle and ISV engagement
Russia - PAB Top 5 Key Priorities
1. Support issues – requirement of the revenue 12 months in
advance does not abide by the Russian law when the service
is to be delivered first and then paid for. Payment on at least
a quarterly basis is preferable.
2. Licencing mechanisms like software as a service are very
interesting. But there are no examples of such practice in
Russia so it is not clear if it abides by the Russian law.
3. Product upgade determination – it would be fair if Oracle
could provide some compensation scheme for ISVs in those
cases (upgrade paths).
4. Oracle vertical acquisition strategy can result in unfair
competition.
5. Lack of visibility and promotion of ISV products available by
sales team.
Local PAB Feedback – Turkey (1)
• ISV and Oracle share of the customer wallet does not seem
equitable
– This is particularly critical in the lower end of the market.
– Proposal: Special discount programs for certain verticals/segments
which are strategic to Oracle, particularly on a local level.
– Proposal: Special ASFU icensing scheme where license is defined
as percentage of ISV license, in effect, royalty.
• There is a lack of recognition for ISVs for the Oracle license sales
they ‘enable’
– We are hopeful this will improve with new OPN. However, a solution
is still needed for named accounts.
• Support issues
– This is critical and has to be solved. This is costing Oracle revenue,
as partners have no incentive to encourage customers to take on
support following initial year.
Local PAB Feedback – Turkey (2)
• Licensing mechanisms like ‘software as a service’ are either not
available or difficult to agree with Oracle.
– Current pricing unrealistically expensive.
– Proposal: Pricing should be proportional to ISV service fees, not Oracle
license prices.
• Oracle vertical acquisition strategy can provide unfair competition
– Proposal: The situation may be improved by establishing industry based
specialization. Such specialized ISV’s may then be given priority in
partnering with new product lines.
• Knowledge transfer of new technology
– There is an incubation program for partners, which should be extended and
made available to wider audience.
– Proposal: Early adopter partners should be rewarded by giving them priority
in sales, perhaps time based exclusivity.
Local PAB Feedback – Turkey (3)
• Lack of visibility and promotion of ISV products available by
sales team
– Proposal: Local roadmaps for industry verticals, including ISV
solutions.
– Proposal: Trainings for Oracle sales force on key verticals and ISV’s.
• Impact of Oracle specialized programme on ISVs
– Proposal: Certification for ISV products, perhaps based on category:
“Oracle Security Certified, Oracle SOA certified....” Microsoft model
may be a starting point.
– Proposal: Reference based certification, ie ISV or product is certified
based on number of successful customer project completions.
Customers confirm reference on web.
– Proposal: Oracle Apps certified products (extensions). Eg Oracle eBusiness suite certified Payroll application, etc.
•
Local PAB Feedback – Turkey (4)
• Upgrade paths on new products
– Major issue.
– Proposal: “n days of planning and migration consulting free at certain
OPN partnership level.” (see Microsoft model)
– Extend Oracle PTS team. Same team can also do ISV and product
certification.
Oracle and ISV engagement
Turkey - PAB Top 5 Key Priorities (in no
particular order)
•
•
•
•
•
ISV and Oracle share of the customer wallet does
not seem equitable
Support issues
Lack of visibility and promotion of ISV products
available by sales team
Impact of Oracle specialized programme on ISVs
Upgrade paths on new products
Local PAB Feedback – MEA (1)
• At large local ISV face similar issue in addition to some
specific issues that relate to ME such as :
• Issues related to ASFU licensing model
– Oracle sales team offers a lower price for full use that
impact the Partner business
– Oracle sales team some times introduce a fulfillment
partner that accept orders at very low margin.
– Customers Require License Certificate ( not provided by
Oracle)
• in a joint activity deals, Oracle Sales team in many cases
send proposals to the customer without informing the partner.
Local PAB Feedback – MEA (2)
• We are not seen as a partner by Oracle Sales but as a
competitor
• Customer Engagement Program ( local ME Program) create
major issues with the customers.
• Oracle Support becoming a liability rather than benefit to the
partner
• Oracle sales Team may provide unneeded discount to meet
quarterly commitment, Partner lose their margin.
• No efforts from Oracle to publish partners’ success stories
• Oracle Sales team sometimes interpret the license policy to
increase Technology Revenue but kill the sale
– Pricing of Disaster Recovery License
Local PAB Feedback – MEA (3)
• Lack of coordnation between Oracle and newly acquired
sloutions partners create problems for SI and the customer
– Oracle acquired SPL more than 2 years ago but still
customers see two diffrent entities.
• Engagment Model with Oracle Counsulting
– Oracle insist on Time and Material & customer insist on
Fixed cost Partner is being squeezed in the middel
• Deploying New Releases of Oracle put the Partner sometimes
in finacial difficulty
– The spped of fixcing bugs and respond to supprot calls
cause delay in Partner colleting his finacial dues from the
customers.
Oracle and ISV engagement
MEA - PAB Top 5 Key Priorities
1. Partners are not getting the excepted financial Return
from Oracle Relationship.
2. Sales Team interest conflicts with The partner Interest
3. Oracle global policy need to consider local issues
4. Oracle Support Model
Highlights
• Partners highly trust Oracle local management
• Respond Quickly to issues raised by partners
• Local Oracle management is Accessible
Local PAB Feedback – Benelux (1)
• ISV and Oracle share of the customer wallet does not seem
equitable
– GB pricing of Oracle Enterprise Edition too high
• Is this perception fed by competition?
– ISVs see opportunity with Embedded model as it is not supported by
Oracle TSR/SSR
– Cost of licenses, VMware policy is threatning business and partnership
• There is a lack of recognition for ISVs for the Oracle license
sales they ‘enable’
– ISVs currently selling Full Use licenses, however they are looking to
move to SAAS, ASFU/ESL model due to pricing
– Oracle license sales not willing to support SAAS, Hosting
• Eg. Hosting licenses for Local Gov with Centric
–
Local PAB Feedback – Benelux (2)
• Support issues
– ISVs want to receive part of the support revenue (as in the past)
– End Users expect support from ISV and not have different support contracts
• Licensing mechanisms like ‘software as a service’ are either not
available or difficult to agree with Oracle.
– SAAS license structure not supported by Oracle sales – difficult model
• Oracle vertical acquisition strategy can provide unfair competition
– GBUs seen as a threat/challenge as local Oracle management has no control
on aligning the activities with GBUs
• Knowledge transfer of new technology
– Great support from Oraacle pre-sales, training and PTS
Local PAB Feedback – Benelux (3)
• Lack of visibility and promotion of ISV products available by
sales team
– Specific Industry Branding, such as ”Retail partner”, local government
partner” would help ISVs
– Lack of vertical/market specialization is not helping ISVs business
– ISVs cannot reach Platinium although they used to be CAP partners –
Felt as lack of recognition
• Impact of Oracle specialized programme on ISVs
– Lack of vertical/market specialization is not helping ISVs business
– ISVs cannot reach Platinium although they used to be CAP partners –
Felt as lack of recognition
• Upgrade paths on new products
– Large ISVs carry out upsell with their install base and are not interested with
free upgrade path
– Free upgrade would help smaller ISVs to expand coverage in GB