Oracle Cuts Partners In On Big 'Sub' Action

The Redwood Shores, Calif., vendor's Cover the Sub program promises to give dedicated Oracle partners entry into the database giant's biggest accounts. In a pilot program started in January, the database kingpin worked with select partners to win new business from the subsidiaries of its largest accounts, said Rauline Ochs, group vice president of North American Channels for Oracle.

Running from January to May, the pilot brought in $1 million in software license revenue. The program is now being opened up to the rest of Oracle's 2,500 North American partners, Ochs said.

Oracle's top 239 strategic accounts are covered by the company's vaunted -- and competitive -- direct sales team. But those 239 companies have 10,000 subsidiaries. Some 2,500 of those "subs" have buying authority, Ochs said. "We took our resellers in the pilot, they went in with our help and found 150 [subsidiaries] with net new business," she said. The partners worked with Oracle's telesales group, Oracle Direct.

Pilot partner participants included Oracle stalwarts TUSC of Chicago, Fusionstorm of San Francisco, Tenure of Dallas, TriCore Solutions of Quincy, Mass., and Computer Resource Team of Glen Allen, Va.

Dan Mori, vice president of Fusionstorm, was pleased with the effort. The program "will hopefully foster improved relationships between the Oracle sales force and channel partners," Mori said. "And from that perspective, it's a good revenue opportunity for both Oracle and the partner."

Oracle partners have long complained that Oracle's field sales force competes with them in accounts and are compensated in a way that fosters such competition. Oracle is now trying to foster better partner relationships and opportunities. Earlier this year it disclosed what it called new rules of engagement toward that end. While partners lauded the idea, many said the rules were nothing new. One said the rules contained "loopholes big enough to drive a truck through."

Ochs says the company is intent on building mutually beneficial and profitable relationships with partners and the company is committed to the rules and the Global Channel Opportunity Registration System that partners use to register leads and protect them from competition with Oracle.