MPower Systems, a value-added distributor of Oracle, has signed a new agency agreement with AJS Computer Services, which is set to strengthen Oracle's presence in the manufacturing sector.
An agency agreement differs from a typical reseller agreement in that the value-added distributor does the bulk of the technical work while the agent takes a commission for introducing new customer relationships.
AJS Computer Services specialises in selling ERP and CRM systems into the manufacturing sector, and will now begin pitching Oracle solutions to its clientele. As an agent, it does not need to be certified with Oracle, since MPower is an Oracle Certified Solutions Partner.
MPower provides AJS's customers with direct pre-sales and post-sales support, but MPower business development manager David Hood said the distributor and agency sign an agreement that protects the agent's interests with that customer. "If the client wishes to deal direct with us in future, we pay a commission to the agent to make sure they are still kept in the loop," he said.
Hood said many solution providers that MPower approaches do not want the hassle of dealing with another software vendor. The agency agreement allows them to expand their market and gain more revenue from existing customers but does not force them to invest time and resources in acquiring an intimate knowledge of the new products.
"It's a hassle-free entry into the Oracle market," he said.