Oracle Plan Aims To Accelerate SMB Vertical Sales

The goal is to package Oracle's four apps lines up with related methodologies and rapid deployment tools so that partners can sell full vertical solutions to small and medium-sized businesses (SMBs) quickly.

Solution providers pick the application modules out of Oracle's four product lines--Oracle, JD Edwards, PeopleSoft and Siebel-- that are most pertinent to their customer's needs. They then add their customization and services, and sell the bundle as an Oracle-blessed Accelerate solution.

Oracle, Redwood Shores, Calif., says it relies on partners to build out their own domain expertise and that the combination can better penetrate the market than rival software companies and their partners.

Where Microsoft targets its ERP and CRM applicatoins mostly for SMBs and departments within enteprises, and SAP pitches Business One for smaller companies, All-in-One for the mid-market and MySAP for enterprises, Oracle says it fields full-featured code bases will cover a customer even if it grows from a small business itno a full-blown enterprise.

SMBs can "buy the same product a large company buys but partners can help implement it in weeks, not months," said Tony Kender, senior vice president of Oracle's Global SMB Business Unit. "The customer benefits from same strong system and can grow with that same system and our competitors can't say that. It's the best of both worlds, great for a small market [company] but also robust.'

"We put together a big matrix. Down the left side is 70 industries, across the top are the top 70 geographies. Also along the top are the four product lines within each geography. And we've invited our partners to choose where they want to be," Kender said.

Oracle said this builds on its Accelerate game plan announced at Oracle OpenWorld in October.

"This is really about accentuating what we've done over time. We've targeted 70 industry segments. We'll do not just communications [applications] but wireless and mobile communications, not just financial services, but banking. Because our partner ecosystem is competing down in the segment and competing across specific product lines," added Jeff Abbott, vice president of Global SMB Unit.

Mick Gallagher CEO of LS Technologies, a Fallbrook, Calif. Oracle partner is bullish. "They are correct about their pricing to move into the SMB e-business space. The good news it is very favorable in terms of partners controlling the discount," he noted.

Hal Hawisher, vice president of sales and alliances for Baytree Associates, is an early Accelerate participant. This program "lets us couple what we've done for years in consulting, project assets and [intellectual property]that we take from project to project, gives us additional assets—Oracle's best practices flows , and they allow us to quickly set up and configure the project," he said. This Charlotte, N.C., solution provider specializes in Oracle applications in professional services but plans add some other verticals.

Oracle is also discontinuing its E-Business Suite Special Edition. That downsized version of Oracle's full suite aimed for accounts with up to 50 users. One west coast partner lauded that decision, saying the company instead was making the full E-business Suite available to partners at a discount level that would allow them to make more money and still price it attractively for SMBs.

To minimize channel conflict, Oracle has segmented the market. "We've created two zones, one is a 'No fly' zone. Generally speaking it's [accounts with revenue of] $100 million and below. 'No fly' means Oracle reps do not go after those accounts. Then in accounts with $100 million to $500 million [in revenue, we have a co-sell zone, there if the partner finds it, it's theirs. If an Oracle person finds it, they can work it or give to partner," Abbott said.

Early partner adopters of the new Accelerate goods include Tier 1 Innovation of Denver, which fields public sector applications atop Siebel technology. Daz Systems, El Segundo, Calif., is building applications and services for consumer packaged goods on top of Oracle E-Business Suite.

Amazing USA, Baytree Associates, Business Technology Services, Solbourne and Syntax.net are also early participants.

The vendor is also adding a partner loyalty program to Oracle Accelerate later this year. Under that program, high-performing VARs can earn more training, promotion funds, and sales and marketing resources.

This story was updated Tuesday afternoon with information on the loyalty program and participating partners.