itX not worried by Ingram appointment

itX not worried by Ingram appointment

Distributor won't be losing sleep over new Oracle competitor

ASX-listed distributor, itX (ASX:ITX), will not be losing any sleep after Oracle announced the appointment of Ingram Micro as a second distributor in the Australian market.

itX general manager, Greg Newham, had been aware of the software giant's plans for a couple of months and was ready for the challenge.

"Are we worried? We certainly won't be losing any sleep," he said. "Oracle is a very complex product set and I think they're trying to get some new products into the lower end of the market.

"Time will tell if they can do that with Ingram but they've had other distributors in the past that haven't been successful."

Ingram has been granted full access to Oracle's technology suite, which includes database products and options, middleware such as its application server, identity management and enterprise content management products, and its business intelligence products.

Oracle technology alliances and channels director, Fred King, said the new partnership would initially be focused on driving its Standard Edition technology products into SMB and the mid-market.

Including ISVs, King said Oracle already had about 1000 partners in Australia signed up to its PartnerNetwork. But a newly launched Remarketer Program would enable resellers to access product through distribution without a formal agreement with the vendor.

"This arrangement is designed for organisations that make ad hoc enquiries and limited sales per year," King said. "Ingram Micro sells to many thousands of resellers - those most likely to see our strong value proposition will have software licensing as part of their portfolio because there are good opportunities to make reasonable margins on our products.

"They will also be attractive to partners selling services and we are keen to nurture that."

King downplayed the threat of overlap between Ingram and existing distributor, itX, expressing confidence that both could be successful relationships.

"itX has a number of very strong products like Sun and HP that they represent strongly and attract a certain type of reseller," he said. "Ingram is much broader and services a lot of the Microsoft, IBM and HP partners."

Although Oracle has historically been considered an enterprise vendor, King challenged this as a misconception and said the software maker would be working hard with its distributors to build presence among user organisations with more than 50 employees.

Last year Oracle committed to driving all of its commercial business, which it defines as everything bar named accounts, through channel partners.

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