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Will Oracle's channel cuts impact Australia?

Will Oracle's channel cuts impact Australia?

Business as usual locally despite channel concerns

Mark Hurd - CEO, Oracle

Mark Hurd - CEO, Oracle

Following significant cuts to Oracle’s channel team in North America, concerns have been raised locally as to the vendor’s partner play across Australia.

Since laying off several channel and sales personnel, including its entire channel pre-sales technical support staff, industry speculation has been rife as to how the tech giant’s cloud strategy will play out in a channel context.

As reported by CRN globally, Oracle revealed plans to cut 225 and 300 members of its North America sales team, “including many sales engineers and sales consultants who worked closely with channel partners.”

Despite global speculation, NEXTGEN managing director, John Walters, insists it’s a case of “business as usual” in A/NZ.

Walters told ARN that the software vendor is continuing to invest in the channel going forward into FY17, based on recent briefings with Oracle vice president channels and alliances, Casey Poon.

"I attended Oracle’s EMEA channel conference in Prague three weeks ago and was also briefed on the financial year strategies for Oracle across Australia and New Zealand over the last few weeks," he said.

"From what I've been briefed on, Oracle's focus for FY17 is not in alignment with the speculative article."

Walters said Oracle’s global channel strategy going forward is focussing on the Cloud and as part of that, the vendor is looking to make specific hires to support that blueprint.

“There was talk in the media about focusing on a younger group being employed and it is a global strategy of Oracle to become even more focused on the Cloud," he added.

"As part of that, they need to bring on more ‘Born in the Cloud’ type of salespeople to drive that strategy. From a NEXTGEN perspective we see that Oracle continues to align with the channel and it is clear that Oracle believes it needs the channel in a Cloud environment more than ever.

"As a result of our 45 per cent plus growth in our Oracle portfolio across all lines of business, NEXTGEN is going to double down on the opportunity in the market across Australia and New Zealand."

ARN understands Oracle's newest distributor in Australia, Arrow, has recently completed its first Oracle deal.

Avnet, Oracle's other Australian distributor, was also contacted but was not available to comment at time of publication.

Oracle refused to comment for this story.


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