EXCLUSIVE: Oracle’s two-tiered channel model, rebate program pays off for partners

Software giant relies on distributor partnerships and update rebate program for partner growth

After Oracle’s fiscal year started in June, the software giant has put in place a much stronger two tiered model, according to Oracle Australia alliances and channels general manager, Patricia Nance, who says the company has made some region specific changes in the way it operates.

One of these changes was consolidating Oracle’s channel and alliances team.

“What we’ve done now is encourage our partners to work throughout two value added distributors [VAD] in the A/NZ region,” Nance said.

“We’re trying to focus in on partners that have been working closely with Oracle over the years, predominantly in the apps space.”

Nance says this transition has gone “really well” for Oracle in A/NZ, as well as for all of its partners, which have been encouraged to operate through the VADs.

“The reasons for that are they get a better credit term with the VAD, as well as more marketing and enablement money,” she said.

Total rebate

Oracle introduced a global rebate program for partners last year, and Nance says the Australian version is “going well.”

What Oracle Australia implemented in August this year was an extra margin rebate for resellers who purchase through the VAD and have registered the opportunity.

“There’s a range of three to eight per cent extra that they can get out of that rebate program depending on the product they are reselling, and that’s quite a change from what we used to offer,” Nance said.

The main benefits of this initiative is that partners get a better focus out of the marketing that Oracle is contributing to those two VADs, which the resellers can then use for events and other promotions.

“The VADs put a lot of money and effort in to doing those types of programs with resellers,” Nance said.

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