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EXCERPT

                                                               Channel and ISV Partner Program Review: Oracle
                                                               PartnerNetwork
                                                               Darren Bibby                          Christine Dover


                                                               IN THIS EXCERPT
                                                               The content for this excerpt was taken directly from the IDC Vendor Profile Report,
                                                               Channel and ISV Partner Program Review: Oracle Partner Network, by Darren Bibby
www.idc.com




                                                               and Christine Dover (Doc # 226493). All or part of the following sections are included
                                                               in this excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook,
                                                               Vendor Profile, and Essential Guidance. Also included are Table 1,2 and 3
F.508.935.4015




                                                               IDC OPINION
                                                               Oracle Corp., from its beginnings in 1977 as a four-person start-up with an idea
                                                               based on research done by IBM, has grown into the "world's most complete, open,
P.508.872.8200




                                                               and integrated business software and hardware systems company" by its own
                                                               description. Oracle's reputation for being an overly direct, partner-unfriendly vendor
                                                               continues to slowly fade away. It has made definite strides forward in the past five
                                                               years to become a vendor that partners would want to do business with. Many of the
                                                               most significant changes to the Oracle PartnerNetwork (OPN) have come in the past
Global Headquarters: 5 Speen Street Framingham, MA 01701 USA




                                                               two years with the launches of Enablement 2.0 in 2008 and OPN Specialized in 2009
                                                               and the consolidation of regional call centers and other resources into a centrally
                                                               managed team. These changes have brought alignment and consistency to partners
                                                               whose own businesses span the globe as well as cross multiple Oracle technology
                                                               and application solutions. A few highlights of OPN include:

                                                                OPN has a worldwide community of more than 20,000 partners.

                                                                Membership is open to all companies seeking to do business through and with
                                                                 Oracle. Depending on how they choose to work with Oracle, partners may
                                                                 choose to work as a Remarketer through a Remarketer Authorized Value-Added
                                                                 Distributor (VAD) or join OPN at the Silver or Gold level. Partners may move up
                                                                 to the Platinum level by achieving a minimum of five Specializations in areas
                                                                 such as Oracle Database 11g or Sun SPARC Enterprise High-End Servers..
                                                                 Specialization criteria are based on staff competency plus achievement of
                                                                 business criteria such as revenue, customer references, and/or validated
                                                                 integrations of partner products. In September 2010, Oracle announced the
                                                                 Diamond level, which is intended for the top-tier global partners.

                                                                Highlights of partner benefits for OPN members are Enablement 2.0 boot camps,
                                                                 offering partners a jump start to educating staff on Oracle technologies and
                                                                 applications; OPN Competency Center, offering role-based learning and
                                                                 assessments to guide the partner to the appropriate education; Partner Business



                                                               Filing Information: May 2011, IDC #226493E
                                                               : Excerpt
Center, providing partner support at all hours, around the globe, and in up to 24
       languages; and free Service Requests for partners that achieve Specialization.




IN THIS VENDOR PROFILE
This IDC Vendor Profile presents a review of the Oracle PartnerNetwork (OPN), the
overall program for all Oracle partner activities across all Oracle geographic divisions
and business units.



SITUATION OVERVIEW

Company Overview

Oracle has been a leader in the software industry since 1977 when Larry Ellison,
along with cofounders Bob Miner and Ed Oates of the company then known as
Software Development Laboratories, realized the business potential of the relational
database model. The team released Oracle version 2, the first commercial SQL
relational database management system in 1979 (version 1 was never released). In
1982, the company got a new name — Oracle Systems. Over the years, Oracle
continued to innovate database and application technology through its own efforts
and occasional acquisitions.

In 2004, Oracle launched an aggressive cycle of acquisitions beginning with rival
PeopleSoft, which launched an era of consolidation in the software industry. Since
2005, Oracle has completed more than 60 acquisitions and successfully merged the
acquired company products, processes, and employees into Oracle. Now in 2011,
and with the acquisition of Sun Microsystems in 2009, Oracle describes itself as the
"world's most complete, open, and integrated business software and hardware
systems company." Oracle's reach extends to 145 countries with approximately
105,000 employees on record as of May 31, 2010.

Table 1 provides a brief company snapshot.


    TABLE 1

    Oracle Company Snapshot

    Category                                              Details

    Company name                                          Oracle Corp.

    Head office                                           Redwood Shores, California

    Total company revenue                                 US$26.8 billion

    Total software revenue                                US$20.6 billion




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TABLE 1

 Oracle Company Snapshot

 Category                                                  Details

 Web site                                                  www.oracle.com

 Source: Oracle, 2010



Partner Program History

Oracle's programmatic partner management began as the Oracle Partner Program
(OPP) in 1998. The original program brought together disparate partner programs in
existence across the company into a single program with a consistent framework,
agreements, and processes. OPP was originally focused on partner companies that
were reselling Oracle technology products (i.e., database and application server); on
independent software vendors (ISVs) that were building their own packaged
solutions, which ran on the Oracle technology stack; and on systems integrators (SIs)
that were building custom technology solutions for their clients.

In 2003, the name of the program changed to the Oracle PartnerNetwork and the
Oracle E-Business Suite was made available to qualified partners for resale. In 2005,
as part of Oracle's acquisition strategy, OPN continued to grow and expand as the
acquired company products (e.g., PeopleSoft, Siebel, Hyperion, BEA, Retek, and
Sun) were made available to OPN members. Benefits and services were also
expanded particularly in the areas of partner enablement and competency. During
this time, Oracle continued to grow the size of the partner community from 13,000
companies in 2004 to more than 20,000 companies in 2010.


Partner Program Overview

OPN is Oracle's partner community, with membership of over 20,000 companies. The
program is global and supports Oracle's partners throughout their business life cycle.
The program is open to all types of companies, but the most common are
independent software vendors, value-added resellers (VARs), and systems
integrators.Table 2 offers quick access to some Oracle Partner Program data points.


 TABLE 2

 Oracle Partner Program Snapshot

 Category                                                                   Details

 Official name of the partner program                                       Oracle PartnerNetwork

 Main partner program Web site                                              www.oracle.com/partners

 Worldwide percentage of software revenue sold through partners             40.0%




©2011 IDC                                       #226493E                                              3
TABLE 2

    Oracle Partner Program Snapshot

    Category                                                              Details

    Worldwide percentage of software transactions sold through partners   80.0%

    Source: Oracle, 2010



Oracle PartnerNetwork Program Membership
The OPN program is global, with regional operations in North America; Latin America;
Europe, Middle East, and Africa; Asia/Pacific; and Japan. Alliance and channel teams
also report into the industry-based global business units such as retail, tax and
utilities, and communications. All partners join the global OPN program.

The OPN program marketing materials generally describe five levels at which
companies may engage with Oracle:

 Remarketer. The Remarketer level is often described as the entry level to OPN,
  although it is not actually an OPN membership level. Remarketers must be
  registered through a Remarketer Authorized VAD, may resell only from a specific
  list of selected Oracle technology products, and have no access to the secure
  OPN portal for tools and resources (although Remarketers can access some
  public information on the OPN portal). A Remarketer has no membership fees or
  partner agreement with Oracle.

 Silver. A partner may join OPN at the Silver level. This is a cost-effective and
  scalable way to get started with the Oracle product set. The Silver level also
  opens up the OPN Portal to partners and allows them to start taking advantage
  of software licenses and enablement resources.

 Gold. A partner may also join OPN at the Gold level. Actually, a partner that
  wants to work with more than just the 1-Click products must start at the Gold
  level. At the Gold level, partners start to develop their Specializations, which
  enable them to identify and increase their expertise and create differentiation in
  the marketplace. Gold partners are limited to earning four Specializations.

 Platinum. Partners earn the right to move up to the Platinum level by achieving
  five or more OPN Specializations. The Platinum-level partners receive the
  highest level of engagement, commitment, and benefits available in OPN
  Specialized. A Platinum partner must have at least five Specializations.

 Diamond. Announced in September 2010, the Diamond level is intended for the
  top-tier global alliance partners. The criteria are significant, but reflect what the
  target partners are already doing, and provide a clear road map for the partners
  that want to attain the Diamond status. Diamond-level partners must have at
  least 20 Specializations, and five of those Specializations must be Advanced
  Specializations (described in the sections that follow). The criteria also include
  annual cosell and resell revenue goals across three or more regions, have 15



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qualified solution offerings, and have dedicated business development
    representatives in each region.

There are two types of OPN membership — Standard and Worldwide with
Associates. Standard membership is very straightforward. It is one company
operating in a single country, although the partner's products may be sold globally.
Companies that operate in multiple countries could have their subsidiaries working as
associates of their worldwide partner.

Table 3 offers an at-a-glance breakdown of the worldwide reseller/SI, ISV, and other
memberships by program level. As of January 2011, there are over 1,000 partners
that have earned at least one Specialization. This number is growing rapidly with the
adoption of OPN Specialized.




 TABLE 3

 Oracle PartnerNetwork Worldwide Membership Breakdown

 Category               Reseller + SI     ISV                    Other                  Total

 Diamond                New               NA                     NA                     NA

 Platinum               700               800                    500                    2,000

 Gold                   5,600             6,400                  4,000                  16,000

 Silver                 700               800                    500                    2,000

 Remarketer             1,000             NA                     NA                     1,000

 Source: Oracle, 2011




Oracle PartnerNetwork Program Fees
The OPN program offers opportunities to engage with Oracle with and without
membership fees:

 Remarketer. There are no fees to begin reselling select Oracle software as a
  Remarketer..

 Silver. The annual fee for the Silver-level membership is US$500.

 Gold. The annual fee for the Gold-level membership is US$2,500. Additionally,
  Gold-level members can have their associate members join OPN for a 50%
  discount on the annual membership fee.

 Platinum. The annual fee for the Platinum-level membership is US$9,995, but
  there are a number of annual program benefits that offset that annual fee.
  Additionally, Platinum-level partners can have their associate members join OPN



©2011 IDC                                   #226493E                                             5
for free, which may represent a tremendous savings for partners with
    subsidiaries in multiple countries.

 Diamond. The annual fee for the Diamond level is US$9,995.

There are also some optional OPN offerings that may also have a fee or other cost for
participation.:

Oracle's acquisition strategy has been a key ingredient to Oracle's tremendous
growth since 2005. While not explicitly a benefit of OPN membership, Oracle partners
have and continue to benefit from this strategy. The strength of the larger and broader
OPN program often brings additional benefits than were available in the acquired
company program. Finally the partners, both organic OPN members and those new
from acquisition, have an opportunity to expand their business and explore the new
technology          solutions         acquired          by          Oracle         (see
www.oracle.com/us/corporate/Acquisitions/index.html).


Oracle PartnerNetwork Program Entry Requirements
OPN membership is open to all companies that choose to do business through
Oracle. Generally, companies apply for membership in OPN by creating an
oracle.com account, creating a company profile, completing an online application,
agreeing to the terms and conditions of the OPN Agreement, agreeing to adhere to
the Partner Code of Conduct and Business Ethics, and paying an annual fee.

To move up in the OPN program, primarily to earn Specializations and move to the
Platinum level, the partner needs to meet the Specialization criteria, which may vary
by Specialization. The Specialization criteria generally include staff competency,
customer references, and revenue. Finally, depending on the Specialization being
sought, the partner may need only one or as many as three Sales Specialists who
have passed the applicable exams.

With OPN Specialized, partners can differentiate themselves in more ways than just
by the OPN program levels of Silver, Gold, and Platinum. Now the partners can
distinguish themselves by spotlighting their strengths and special skills in 55
Specialization areas (as of December 2010, with many more scheduled through May
31, 2012). The following lists examples of available Specializations from each of the
five knowledge zone groupings:

 Database - Oracle Database release 11g

 Middleware – Service-Oriented Architecture release 11g

 Applications – Oracle E-Business Suite Financial Management release 12.1:

 Industries - Healthcare

 Server and storage systems – Oracle Sun SPARC Enterprise Entry Level and
  Midrange Servers:




6                                            #226493E                                     ©2011 IDC
Each of the Specializations requires individuals at the company to pass the following
types of exams (number of individuals varies by Specialization):

 Sales Specialist

 Presales Specialist

 Support Specialist

 Certified Implementation Specialist

 Industry Specialist (available only for industry-based Specializations)

In September 2010, Oracle announced Advanced Specializations that are intended to
recognize the depth of resources and bench strength. An Advanced Specialization,
which can be earned for any of the available Specializations, requires that the partner
has 50 or more Certified Implementation Specialists. This means that to earn an
Advanced Specialization in Oracle Database 11g, the partner must meet the usual
Specialization criteria, plus have sufficient qualified individuals who have passed at
least 50 applicable Certified Implementation Specialist exams.

Oracle counts the number of passed assessments and certifications, not the number
of individuals. It is possible that an individual pass more than one assessment in a
single Specialization area.. Finally, there are no country-based boundaries to meeting
the criteria. If the partner's resources are spread across the United States, India,
Belgium, and the Netherlands, they all count toward meeting the Specialization
criteria. What Oracle is looking at is the overall capability and knowledge base within
the partner company, not the number of people in a specific country.

An overview of Specialization, including the Specialization Competency Readiness
Guide (with a complete list of available and planned Specializations through May
2012)       is       available         at      www.oracle.com/partners/en/opn-
program/specialize/index.html.


Company Strategy

Partner Program Benefits
The sections that follow describe some of the the main benefits and resources for
partners in the OPN program. Note that the benefits described are core benefits of
the partner program that certain partner tiers, or even all partners, may access.
Benefits for very small subsegments of the partner community and other ad hoc
benefits for partners may not be listed here. The benefits fall into five key categories:
sales, marketing, technical, and partner development and relationship.


Partner Program Benefits — Sales

Distribution Rights and Resale
 Description: Partners earn top-line revenue by reselling Oracle products and
  services and profit from the margin between the sale price to the customer and



©2011 IDC                                     #226493E                                      7
the royalty to Oracle. Specific information about discount amounts is not publicly
    available. Additionally, Oracle may provide rebates or incentives for a limited time
    and for a select set of products. The following distribution opportunities are
    available to partners:

       Full Use Distribution Agreement (FUDA). The Full Use license is Oracle's
        least restrictive license type and grants the end user full rights to develop
        custom applications with the Oracle software and hardware. The FUDA is,
        generally speaking, the most appropriate distribution agreement for systems
        integrators and value-added resellers.

       Application Specific Full Use (ASFU) Program Distribution Agreement.
        The ASFU Distribution Agreement entitles partners to resell Oracle software
        as part of their named application package. An ASFU license may be used
        only with a single-named partner application package. The ASFU is the most
        appropriate license level for an independent software vendor.

       Embedded Software License (ESL) Distribution Agreement. An ESL is a
        restricted type of license sold primarily by an independent software vendor
        where Oracle technology is embedded in its application package. The
        Oracle products must not be apparent to the end user and may only be used
        by the end user to execute the solution provider's designated application
        package.

       Reselling Support. With each Oracle license distributed, partners may also
        distribute the end user's right to receive first-year technical support from
        Oracle. The partner may decide how to price the first-year support but must
        also communicate Oracle's price for second-year support. Partners are not
        allowed to resell support for second and subsequent years.

       Reselling Oracle Support for ASFU and ESL. Partners must provide first-
        line end-user support on the Oracle programs contained in their application
        package to those end users that want technical support and may contact
        Oracle for assistance with a customer query that is related to an Oracle
        program using the CSI for the applicable OPN-supported development
        licenses. Fees for support are due to Oracle when partners provide support
        to their end users.

       Reselling Oracle Enterprise Linux and VM Support. Oracle allows its
        partners to resell Oracle Enterprise Linux and Oracle VM Support.

       Reselling Oracle Education. The Oracle University Reseller program
        enables qualified organizations to offer Oracle education products and
        training for resale.

 Requirements: OPN members at the Silver level have the ability to resell only
  the 1-Click products. Gold, Platinum, and Diamond OPN members may resell
  any of the products included in the knowledge zones to which their company is
  accepted, has achieved the reseller criteria, and has completed the appropriate
  distribution agreements. To resell Oracle University products and services, the




8                                            #226493E                                      ©2011 IDC
partner needs to submit an application and complete an OPN Education
    Distribution Agreement.


Open Market Model
 Description: In an effort to optimize its distribution channel, Oracle instituted the
  Open Market Model (OMM) that offers three distinct initiatives, which
  acknowledge and reward partners for registering transactions with Oracle:

        Resale initiative. The resale initiative is open to all eligible OPN members
         to register net-new opportunities for any Oracle program, service, and/or
         license levels for which the partner has a valid Oracle distribution
         agreement. If Oracle closes the deal that was registered and accepted under
         the resale initiative, the registered partner will qualify for a fee from Oracle.
         The fee varies by product and/or geography but is generally 10% of the
         value of the opportunity with a cap at US$100,000.

        Referral initiative. The referral initiative is open to all OPN members that
         have knowledge of a net-new opportunity to license any Oracle programs
         and/or services. Upon successful closure of the transaction, Oracle will pay
         a fee to the approved referring partner. The fee varies by product and/or
         geography but is generally 5% or 10% with caps at US$25,000, US$50,000,
         or US$100,000.

        Non-commission cosell initiative. Sometimes it is necessary or
         appropriate for a partner to register a potential opportunity, but not be
         eligible for a fee or commission as is available in the resale and referral
         initiatives. The non-commission cosell initiative allows partners to register
         net-new opportunities, existing and active sales opportunities, or single large
         transactions that encompass a partner deal or supersede it. Registering
         these deals gains the partner important recognition within the OPN program
         and the Oracle sales teams.

    OMM offers an alternative to the Oracle partners to earn recognition and
    compensation for deals they found but did not have the opportunity to resell as
    described in the Distribution Rights and Resale section.

 Requirements: The Open Market Model is available to all OPN members. More
  complete   details  of    the    OMM       program       are  found    at
  www.oracle.com/partners/how-to-do-business/.


Partner Program Benefits — Marketing

Logos and Branding
 Description: Oracle provides a variety of logos to the OPN membership.
  Specific criteria must be met before the partner can download and use the logo:

        Oracle Partner is available to partners in the Silver level of membership in
         OPN or partners that choose only to work with the 1-Click products. This is
         the membership entry level.



©2011 IDC                                      #226493E                                      9
   Oracle Gold Partner is available to partners that have achieved the Gold
         level of membership in OPN and have begun on the path to Specialization.

        Oracle Platinum Partner is available to partners that have achieved the
         Platinum level of membership in OPN.

        Oracle Diamond Partner is available to partners that have achieved the
         Diamond level of membership in OPN. This is the most prestigious OPN
         logo.

        Oracle Validated Integration is available to partners that have had Oracle
         validate their solution with one of the Oracle applications.

        Oracle Accelerate Solution is available to partners that have their
         prepackaged bundle that pairs with Oracle E-Business Suite and JD
         Edwards EnterpriseOne applications reviewed and approved by Oracle.

        Oracle Certified Professional is available from Oracle University to those
         individuals who have passed the necessary OCP exams.

        Value-Added Distributor is available to partners that are authorized as
         Oracle's value-added distributors.

        Oracle PartnerNetwork Specialized Global Awards logos recognize
         partner excellence in a number of categories including technology,
         applications, industry, and midsize.

     The OPN logos provide recognized market credibility of the partner's relationship
     with Oracle. Partners use the logos on their own Web sites, presentations,
     marketing collaterals, business cards, and trade show booths.

 Requirements: OPN logos are available to all OPN members, although the logo
  varies based on partnership level. Additional logos for Specialization are
  available once the partner has met the specific Specialization criteria.


Market Development Funds
 Description: The OPN Market Development Funds (MDF) is a marketing budget
  allocated to fund partner marketing programs. MDF may be used toward Oracle-
  related revenue activities such as advertising, collateral, demand generation,
  events, and telemarketing. Platinum-level OPN members may apply for funding
  marketing activities that highlight the Oracle partnership and extend the Oracle
  message. Through MDF, Oracle will fund up to 50% of eligible costs for a joint
  partner/OPN activity and up to 30% of eligible costs if two partners are involved.

 Requirements: Only Platinum-level partners are eligible to apply for MDF
  benefits. Diamond-level partners receive an annual MDF allocation.


Joint Customer Success Stories
 Description: Gold- and Platinum-level partners can nominate their customer
  success story (having first obtained the customer's permission to do so). Once


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accepted, partners receive professional services to write and publish their
    customer success story. The story is made available on Oracle.com and linked to
    the partner Web site. The partner's market credibility is increased because the
    partner, Oracle, and the customer are publically validating the positive joint
    success.

 Requirements: Customer success stories are available only to Gold-, Platinum-,
  and Diamond-level members of OPN, although it is not clear that all of the
  partners listed on the Partner Success Stories have actually achieved this status.
  Including the OPN partner logos on this page would be a nice addition to
  continue        the      branding      of       OPN        Specialized        (see
  www.oracle.com/customers/partners/index.html).


Partner Program Benefits — Technical

Enablement 2.0 Boot Camps
 Description: To complement the training available from Oracle University, in
  2008, OPN developed the Enablement 2.0 Boot Camp series. The boot camp
  classes are role specific for sales, presales, and implementation, with
  implementation boot camps being the most commonly scheduled events. Most of
  the classes are in-person, but there are also live virtual events. Course
  descriptions generally state that the class provides an in-depth understanding of
  the architectural, technical, and functional content while providing an
  understanding of the installation, implementation, configuration, and/or extension
  of the product. Sample topics are:

       Database Security Options Implementation — 2 days

       Service-Oriented Architecture Implementation — 3 days

       E-Business Suite Financial Management 11i to 12i Delta Implementation —
        5 days

    

       Oracle VM Overview and Implementation — 2 days

    Oracle also has an innovative program that allows partners to improve the
    curriculum. Oracle uses "delivery partners" to develop and teach some of the
    boot camps. These partners have access to a delivery dashboard to access
    content and improve it. Also, partner staff members who attend OPN classes can
    provide feedback on courses or assessments through the OPN Competency
    Center.

 Requirements: Silver-level partners are eligible only for boot camps specific to
  the 1-Click products. Gold, Platinum, and Diamond partners may attend any of
  the boot camp offerings. Fees, ranging from free to US$2,250 for a five-day
  virtual class, vary based on boot camp topic and geographic region. See the
  current Boot Camp Schedule on the "Most Popular Resources" at
  www.oracle.com/partners.


©2011 IDC                                   #226493E                                   11
OPN Competency Center
 Description: The OPN Competency Center is an intuitive, easy-to-use tool that
  guides partner employees through a role-based path in order to learn how to sell,
  demo, implement, develop on, and support Oracle products. The model for the
  user interface is the London Underground map, with students choosing a "track"
  (Oracle calls them Guided Learning Paths [GLPs]) and stopping at courses on
  their journey. Preassessments are available so students can test their existing
  knowledge and determine where they should actually spend their time learning
  new subjects. Students can track their progress through the GLPs and then
  begin to earn "Specialization" by successfully completing an OPN Specialist
  assessment.

     The OPN Competency Center also includes a dashboard that the partner's OPN
     administrator can use to track overall progress toward achieving Specialization.
     The administrator may also create workgroups and assign training to employees
     to fulfill the education requirements for Specialization using a feature called
     Training Manager.

 Requirements: The OPN Competency Center is available to all OPN members.


Development and Integration Licenses
 Description: OPN provides an unlimited number of development and integration
  licenses to OPN members to enable partners to lower their development costs
  for building products that run on the Oracle stack or integrate to Oracle
  applications. These development and integration licenses also include software
  updates and patches, ensuring that the partner always has access to the most
  current Oracle software. The development licenses are limited to technology
  products (please note that development licenses are not available for application
  programs). Integration licenses are limited to the application programs identified
  in the knowledge zone(s) for which the partner has applied and been accepted.

 Requirements: Silver-level OPN members have access to development licenses
  for 1-Click products. Development licenses for technology products are available
  to all OPN members at Gold, Platinum, and Diamond levels. Availability of
  application integration licenses are limited to Gold-, Platinum-, and Diamond-
  level partners and to acceptance in applicable knowledge zones.


Support Discounts
 Description: There are times when access to self-service support tools and
  knowledge bases are not enough and the partner really needs to log a service
  request. Support resources are expensive, so this type of benefit is rarely offered
  at no cost. In detail:

        100 free Service Requests to use with development, demonstration,
         and integration licenses on any Oracle technology or application
         product. 100 free SRs are available to Platinum- and Diamond-level
         partners. Additionally, Specialized partners receive 50 free SRs per
         Specialization for use with development, demonstration, and integration



12                                          #226493E                                    ©2011 IDC
licenses for Oracle technology and application programs in addition to any
        free SRs received as part of the Support benefits discussed previously (up to
        a maximum of 250 free SRs per membership year). The free SRs are
        renewed each year.

       Purchase Service Request Packs at a discount. Gold-level partners that
        have not yet earned a Specialization, as well as partners that have used up
        their free SRs, may purchase packs of Service Requests for Oracle's
        application and technology products. SRs are sold in packs of 10 for
        US$650 and 25 for US$1,400 and may be purchased through the Partner
        Business Center.

       Free Service Requests for Oracle's Enterprise Linux Support. 100 free
        SRs are available to Gold Specialized partners, and 200 free SRs are
        available to Platinum- and Diamond-level partners. The free SRs are
        renewed each year.

       Discount on Oracle's Enterprise Linux Support. Gold-level partners that
        have not yet earned a Specialization, as well as partners that have used up
        their free SRs, may purchase packs of Service Requests for Enterprise
        Linux Support. SRs are sold in packs of 10 for US$650 and 25 for US$1,400
        and may be purchased through the Partner Business Center.

    At the Platinum and Diamond levels, the annual renewal of free SRs is a terrific
    benefit. Plus, Oracle provides some number of free SRs to the Gold-level
    partners that have achieved at least one Specialization. Most large software
    vendors require partners to pay for this generous level of support.

 Requirements: Free service requests are provided to Gold Specialized,
  Platinum, and Diamond partners only. All other service requests may be
  purchased at a discount. These service requests are only for use with the
  partner's demonstration, development, and integration licenses. They are not to
  be used for customer projects or Oracle products that may be used internally by
  the partner.


Oracle University Discounts
 Description:

       Discounts on products and services. Through its partnership with Oracle
        University, OPN offers discounts of 20% to Silver partners and 25% to Gold,
        Platinum, and Diamond partners on all Oracle University products and
        services including classroom training and self-study CDs.

       Learning Credit discounts. If a company can plan ahead for its training
        requirements, it often makes sense to prepurchase Learning Credits. If
        purchased within 30 days of signing up or renewing an OPN membership,
        OPN members can purchase Learning Credits at a 35% discount. However,
        these Learning Credits must be purchased within the first 30 days of OPN
        membership or renewal and must be used by the next renewal date or within
        12 months, whichever is earlier.



©2011 IDC                                   #226493E                                    13
   Live virtual discounts. Platinum- and Diamond-level OPN members are
         offered an additional 5% discount, over the regular 25% discount, for these
         live virtual events.

        Oracle University Knowledge Center Passport. Typically accessed via
         the OPN Competency Center, the OUKCP is the library of online courses
         and assessments. The courses are developed by Oracle University, Oracle's
         product development and support organizations, Oracle Consulting, Oracle
         Sales, and the OPN Enablement team.

 Requirements: The OUKCP is available to all OPN members, as are the
  additional discounts for purchasing learning credits. Discounts on Oracle
  University products and services vary by partner level. It is important to note that
  these training discounts are for use with the development of the partners' own
  skills in developing and deliver solutions to their customers, not as a pass
  through to customers.


Oracle Certified Professional Assessments/Exam Vouchers
 Description: The Oracle Certified Professional is one of the most established
  badges of credibility for an individual in the information technology industry.
  Oracle provides a wide variety of OCP programs through Oracle University.
  Exams, for which there is a fee ranging from US$125 to US$300, may be taken
  at testing centers worldwide. Complete details are available at
  education.oracle.com.

 Requirements: The OCP voucher is available only to Gold- (two vouchers per
  year) and Platinum/Diamond-level (six vouchers per year) OPN members.
  Partners receive two additional vouchers once they achieve their first
  Specialization.


Partner Program Benefits — Relationship and
Development

Partner Business Center
 Description: Stationed in four business centers (Bangalore, India; Beijing,
  China; Bucharest, Romania; and Buenos Aries, Argentina), the Partner Business
  Centers provide around-the-clock partner support in up to 24 languages, via
  phone, email, and Twitter. The team provides a variety of services including
  business and administrative support, site navigation, membership updates, order
  placement, and technical support assistance:

        Silver. Free inbound call and email assistance including assistance logging
         Service Requests

        Gold. Proactive outbound engagement including                business    and
         administrative support functions and priority renewal

        Platinum. Dedicated virtual account management and channels to optimize
         the Oracle PartnerNetwork and Specialized benefits, development of joint



14                                           #226493E                                    ©2011 IDC
business plans, and top priority renewal (The most senior members of the
        team staff use these dedicated phone lines.)

    The Partner Business Center uses a methodology titled Programmatic Partner
    Enablement (PPE) to work proactively with new OPN partners to help them get
    started using their OPN membership benefits, meeting resale criteria, developing
    business plans, and so on. It's a very structured process that moves the partners
    toward their first and subsequent sale of Oracle technology. This PPE process
    has been in place since 2007 and has proved to be a very effective way to get
    the partners to grow their business and become self-sufficient while also growing
    Oracle's business.

 Requirements: The Partner Business Center is available to OPN members at all
  levels, but the specific benefits vary by level as described previously. Partners
  are nominated by the field to participate in the Programmatic Partner Enablement
  process.


Assigned Oracle Global Alliance Manager and Global Oracle Executive
Sponsor
 Description: The assigned Global Alliance Manager is often the most valued
  benefit of any partner program. The addition of the Global Oracle Executive
  Sponsor provides direct access to Oracle's executive management team.

 Requirements: Assigned Oracle Global Alliance Managers and Global Oracle
  Executive Sponsors are available only to Diamond-level partners.


Social Media
 Description: The OPN team has been very active in using social media as a
  method of communication with the OPN membership. OPNhasbecome a leader
  among the software vendors in using these types of tools. OPN primarily uses
  the following resources — Oracle wiki, Facebook, Twitter, LinkedIn, and
  YouTube:

       Oracle wiki. The Oracle wiki has an active section for OPN Specialized
        program (see wiki.oracle.com/page/Oracle+PartnerNetwork).

       Facebook. The OPN group on Facebook is named "Oracle
        PartnerNetwork". The postings include lots of event announcements, links to
        blogs, and media announcements.

       Twitter. Oracle has two Twitter groups for OPN. @oraclepartners is the
        official Twitter group for OPN. The Oracle Partner Business Center manages
        the Twitter group @ORCLPartnerBiz. Many of the postings are event
        announcements, but issues and queries are also posted by OPN members.

       LinkedIn. The OPN team manages a corporate group named "Oracle
        Partner Network". The LinkedIn group is primarily used for event
        announcements and training offers from Oracle, but there is some good




©2011 IDC                                   #226493E                                    15
participation on discussions for OPN benefit utilization and improvements,
         meeting agendas, and so on.

        YouTube. OPN is an active user of YouTube, with many video blogs,
         interviews, and tutorials, on a specific Oracle PartnerNetwork YouTube
         channel.

 Requirements: The Oracle wiki, Oracle PartnerNetwork on Facebook,
  ORCLPartnerBiz on Twitter, Oracle Partner Network on LinkedIn, and Oracle
  Partner Network on YouTube are public groups.



FUTURE OUTLOOK
As announced at the OPN PartnerForum during Oracle OpenWorld in September
2010, Oracle is continuing to follow through on the commitment to Specialization. The
announcements of the Diamond-level and Advanced Specializations emphasize this
commitment. Oracle has also made public commitments to adding and maintaining
the number of available Specializations through May 2012 and, it is expected,
beyond. Oracle will continue to fold regional initiatives (e.g., the Pillar program) into
Specializations. IDC applauds this decision as it makes the overall partner program
consistent and easier for the partners to decide how best to work with Oracle.

In October 2010, the Sun PartnerAdvantage program ceased to exist and the Sun
partners needed to decide if they were going to join OPN if they want to continue to
work with the Sun products. It is expected that Oracle will continue with its acquisition
strategy and its practice of absorbing the acquired partners into the OPN program.
The OPN team has developed a smooth and effective process for managing these
acquisitions and is very efficient at it.

Oracle has long had a broad number of products available for partners to work with.
The acquisitions have and will continue to increase the number of products. A major
focus in the future will be getting the partners to cross-sell more of these products to
their customers. For example, if the partner is only selling Sun hardware solutions
today, they will be encouraged to add higher-margin database products to the mix. All
of this helps the partners and Oracle to continue to grow their mutual businesses.



ESSENTIAL GUIDANCE

Recommendations for Oracle

The OPN Specialized launch in October 2009 was long needed for Oracle's partner
community. Oracle has created a strong program with clear guidelines and criteria for
moving up in the membership levels and differentiated benefits for the partners that
do the work to achieve the Specializations. Achievement of a Specialized status
allows partners to be recognized for the breadth of knowledge, while the addition of
Advanced Specializations in September 2010 provides a way for partners to clearly
demonstrate their depth of resource. The move from Partner, Certified Partner, and
Certified Advantage Partner to Silver, Gold, and Platinum is much easier to
understand by the Oracle sales teams, the partner community and, most importantly,


16                                            #226493E                                      ©2011 IDC
the customer base. The September 2010 announcement of the Diamond level is also
    extremely welcome. For too long, the criteria to be one of the truly top-tier global
    partners was unpublished and unclear. Oracle's openness about the criteria will
    strengthen these partners and provide clear direction for those emerging partners that
    aspire to these levels.

    However, as it launched OPN Specialized, Oracle initially relabeled its existing
    Certified Advantage Partners as Platinum and the Certified Partners and many of the
    partners as Gold. Oracle gave the partners until December 2010 to actually achieve
    the Specialization criteria required by the updated program (although some partners
    have longer depending on their membership agreement dates). It is important that
    Oracle stick to its guns and demand that the criteria be met to maintain the coveted
    Platinum status. Other software vendors have caved in the past in this situation and
    slipstreamed partners into top levels based on long-ago achievements.

    Additionally, Oracle needs to maintain the differentiation of benefits by partner levels.
    It is tempting for the regional teams, let alone the marketing and development
    organizations, to make exceptions and grant Platinum-level benefits to lower-level
    partners.


    Recommendations for Partners

    Oracle is a huge and complex organization, so it's easy to feel lost. But the OPN
    Specialized program has a lot to offer to the partners that really want to drive their
    business forward and not just have another vendor plaque on the wall of their lobby.

    What's important at Oracle is revenue and transactions. This is what gets you noticed.
    Beginning as a Remarketer and at the Silver level, you have the opportunity to do lots
    of transactions and a growing amount of revenue. Transactions are important as they
    create volume and an opportunity to develop customer relationships that grow
    revenue.

    Gold-level partners should also seriously look at the Specializations and focus on
    earning those that make sense for their business. The Oracle field sales organization
    has been very receptive to the concept of Specialization, and its trust in the channel is
    growing.

    Current and potential OPN members at the Gold and Platinum levels today should
    ensure that they meet the criteria to earn and retain the Platinum status. The annual
    fee at the Platinum level seems high, but the benefits really provide an excellent
    return on investment.



    Contact Us

    If you have any feedback on this document, contact Christine Dover at
    cdover@idc.com    or     Darren     Bibby      at     dbibby@idc.com.




    ©2011 IDC                                     #226493E                                      17
Copyright Notice

This IDC research document was published as part of an IDC continuous intelligence
service, providing written research, analyst interactions, telebriefings, and
conferences. Visit www.idc.com to learn more about IDC subscription and consulting
services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please
contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or
sales@idc.com for information on applying the price of this document toward the
purchase of an IDC service or for information on additional copies or Web rights.

Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.




18                                           #226493E                                   ©2011 IDC

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Oracle Partner Net

  • 1. EXCERPT Channel and ISV Partner Program Review: Oracle PartnerNetwork Darren Bibby Christine Dover IN THIS EXCERPT The content for this excerpt was taken directly from the IDC Vendor Profile Report, Channel and ISV Partner Program Review: Oracle Partner Network, by Darren Bibby www.idc.com and Christine Dover (Doc # 226493). All or part of the following sections are included in this excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook, Vendor Profile, and Essential Guidance. Also included are Table 1,2 and 3 F.508.935.4015 IDC OPINION Oracle Corp., from its beginnings in 1977 as a four-person start-up with an idea based on research done by IBM, has grown into the "world's most complete, open, P.508.872.8200 and integrated business software and hardware systems company" by its own description. Oracle's reputation for being an overly direct, partner-unfriendly vendor continues to slowly fade away. It has made definite strides forward in the past five years to become a vendor that partners would want to do business with. Many of the most significant changes to the Oracle PartnerNetwork (OPN) have come in the past Global Headquarters: 5 Speen Street Framingham, MA 01701 USA two years with the launches of Enablement 2.0 in 2008 and OPN Specialized in 2009 and the consolidation of regional call centers and other resources into a centrally managed team. These changes have brought alignment and consistency to partners whose own businesses span the globe as well as cross multiple Oracle technology and application solutions. A few highlights of OPN include:  OPN has a worldwide community of more than 20,000 partners.  Membership is open to all companies seeking to do business through and with Oracle. Depending on how they choose to work with Oracle, partners may choose to work as a Remarketer through a Remarketer Authorized Value-Added Distributor (VAD) or join OPN at the Silver or Gold level. Partners may move up to the Platinum level by achieving a minimum of five Specializations in areas such as Oracle Database 11g or Sun SPARC Enterprise High-End Servers.. Specialization criteria are based on staff competency plus achievement of business criteria such as revenue, customer references, and/or validated integrations of partner products. In September 2010, Oracle announced the Diamond level, which is intended for the top-tier global partners.  Highlights of partner benefits for OPN members are Enablement 2.0 boot camps, offering partners a jump start to educating staff on Oracle technologies and applications; OPN Competency Center, offering role-based learning and assessments to guide the partner to the appropriate education; Partner Business Filing Information: May 2011, IDC #226493E : Excerpt
  • 2. Center, providing partner support at all hours, around the globe, and in up to 24 languages; and free Service Requests for partners that achieve Specialization. IN THIS VENDOR PROFILE This IDC Vendor Profile presents a review of the Oracle PartnerNetwork (OPN), the overall program for all Oracle partner activities across all Oracle geographic divisions and business units. SITUATION OVERVIEW Company Overview Oracle has been a leader in the software industry since 1977 when Larry Ellison, along with cofounders Bob Miner and Ed Oates of the company then known as Software Development Laboratories, realized the business potential of the relational database model. The team released Oracle version 2, the first commercial SQL relational database management system in 1979 (version 1 was never released). In 1982, the company got a new name — Oracle Systems. Over the years, Oracle continued to innovate database and application technology through its own efforts and occasional acquisitions. In 2004, Oracle launched an aggressive cycle of acquisitions beginning with rival PeopleSoft, which launched an era of consolidation in the software industry. Since 2005, Oracle has completed more than 60 acquisitions and successfully merged the acquired company products, processes, and employees into Oracle. Now in 2011, and with the acquisition of Sun Microsystems in 2009, Oracle describes itself as the "world's most complete, open, and integrated business software and hardware systems company." Oracle's reach extends to 145 countries with approximately 105,000 employees on record as of May 31, 2010. Table 1 provides a brief company snapshot. TABLE 1 Oracle Company Snapshot Category Details Company name Oracle Corp. Head office Redwood Shores, California Total company revenue US$26.8 billion Total software revenue US$20.6 billion 2 #226493E ©2011 IDC
  • 3. TABLE 1 Oracle Company Snapshot Category Details Web site www.oracle.com Source: Oracle, 2010 Partner Program History Oracle's programmatic partner management began as the Oracle Partner Program (OPP) in 1998. The original program brought together disparate partner programs in existence across the company into a single program with a consistent framework, agreements, and processes. OPP was originally focused on partner companies that were reselling Oracle technology products (i.e., database and application server); on independent software vendors (ISVs) that were building their own packaged solutions, which ran on the Oracle technology stack; and on systems integrators (SIs) that were building custom technology solutions for their clients. In 2003, the name of the program changed to the Oracle PartnerNetwork and the Oracle E-Business Suite was made available to qualified partners for resale. In 2005, as part of Oracle's acquisition strategy, OPN continued to grow and expand as the acquired company products (e.g., PeopleSoft, Siebel, Hyperion, BEA, Retek, and Sun) were made available to OPN members. Benefits and services were also expanded particularly in the areas of partner enablement and competency. During this time, Oracle continued to grow the size of the partner community from 13,000 companies in 2004 to more than 20,000 companies in 2010. Partner Program Overview OPN is Oracle's partner community, with membership of over 20,000 companies. The program is global and supports Oracle's partners throughout their business life cycle. The program is open to all types of companies, but the most common are independent software vendors, value-added resellers (VARs), and systems integrators.Table 2 offers quick access to some Oracle Partner Program data points. TABLE 2 Oracle Partner Program Snapshot Category Details Official name of the partner program Oracle PartnerNetwork Main partner program Web site www.oracle.com/partners Worldwide percentage of software revenue sold through partners 40.0% ©2011 IDC #226493E 3
  • 4. TABLE 2 Oracle Partner Program Snapshot Category Details Worldwide percentage of software transactions sold through partners 80.0% Source: Oracle, 2010 Oracle PartnerNetwork Program Membership The OPN program is global, with regional operations in North America; Latin America; Europe, Middle East, and Africa; Asia/Pacific; and Japan. Alliance and channel teams also report into the industry-based global business units such as retail, tax and utilities, and communications. All partners join the global OPN program. The OPN program marketing materials generally describe five levels at which companies may engage with Oracle:  Remarketer. The Remarketer level is often described as the entry level to OPN, although it is not actually an OPN membership level. Remarketers must be registered through a Remarketer Authorized VAD, may resell only from a specific list of selected Oracle technology products, and have no access to the secure OPN portal for tools and resources (although Remarketers can access some public information on the OPN portal). A Remarketer has no membership fees or partner agreement with Oracle.  Silver. A partner may join OPN at the Silver level. This is a cost-effective and scalable way to get started with the Oracle product set. The Silver level also opens up the OPN Portal to partners and allows them to start taking advantage of software licenses and enablement resources.  Gold. A partner may also join OPN at the Gold level. Actually, a partner that wants to work with more than just the 1-Click products must start at the Gold level. At the Gold level, partners start to develop their Specializations, which enable them to identify and increase their expertise and create differentiation in the marketplace. Gold partners are limited to earning four Specializations.  Platinum. Partners earn the right to move up to the Platinum level by achieving five or more OPN Specializations. The Platinum-level partners receive the highest level of engagement, commitment, and benefits available in OPN Specialized. A Platinum partner must have at least five Specializations.  Diamond. Announced in September 2010, the Diamond level is intended for the top-tier global alliance partners. The criteria are significant, but reflect what the target partners are already doing, and provide a clear road map for the partners that want to attain the Diamond status. Diamond-level partners must have at least 20 Specializations, and five of those Specializations must be Advanced Specializations (described in the sections that follow). The criteria also include annual cosell and resell revenue goals across three or more regions, have 15 4 #226493E ©2011 IDC
  • 5. qualified solution offerings, and have dedicated business development representatives in each region. There are two types of OPN membership — Standard and Worldwide with Associates. Standard membership is very straightforward. It is one company operating in a single country, although the partner's products may be sold globally. Companies that operate in multiple countries could have their subsidiaries working as associates of their worldwide partner. Table 3 offers an at-a-glance breakdown of the worldwide reseller/SI, ISV, and other memberships by program level. As of January 2011, there are over 1,000 partners that have earned at least one Specialization. This number is growing rapidly with the adoption of OPN Specialized. TABLE 3 Oracle PartnerNetwork Worldwide Membership Breakdown Category Reseller + SI ISV Other Total Diamond New NA NA NA Platinum 700 800 500 2,000 Gold 5,600 6,400 4,000 16,000 Silver 700 800 500 2,000 Remarketer 1,000 NA NA 1,000 Source: Oracle, 2011 Oracle PartnerNetwork Program Fees The OPN program offers opportunities to engage with Oracle with and without membership fees:  Remarketer. There are no fees to begin reselling select Oracle software as a Remarketer..  Silver. The annual fee for the Silver-level membership is US$500.  Gold. The annual fee for the Gold-level membership is US$2,500. Additionally, Gold-level members can have their associate members join OPN for a 50% discount on the annual membership fee.  Platinum. The annual fee for the Platinum-level membership is US$9,995, but there are a number of annual program benefits that offset that annual fee. Additionally, Platinum-level partners can have their associate members join OPN ©2011 IDC #226493E 5
  • 6. for free, which may represent a tremendous savings for partners with subsidiaries in multiple countries.  Diamond. The annual fee for the Diamond level is US$9,995. There are also some optional OPN offerings that may also have a fee or other cost for participation.: Oracle's acquisition strategy has been a key ingredient to Oracle's tremendous growth since 2005. While not explicitly a benefit of OPN membership, Oracle partners have and continue to benefit from this strategy. The strength of the larger and broader OPN program often brings additional benefits than were available in the acquired company program. Finally the partners, both organic OPN members and those new from acquisition, have an opportunity to expand their business and explore the new technology solutions acquired by Oracle (see www.oracle.com/us/corporate/Acquisitions/index.html). Oracle PartnerNetwork Program Entry Requirements OPN membership is open to all companies that choose to do business through Oracle. Generally, companies apply for membership in OPN by creating an oracle.com account, creating a company profile, completing an online application, agreeing to the terms and conditions of the OPN Agreement, agreeing to adhere to the Partner Code of Conduct and Business Ethics, and paying an annual fee. To move up in the OPN program, primarily to earn Specializations and move to the Platinum level, the partner needs to meet the Specialization criteria, which may vary by Specialization. The Specialization criteria generally include staff competency, customer references, and revenue. Finally, depending on the Specialization being sought, the partner may need only one or as many as three Sales Specialists who have passed the applicable exams. With OPN Specialized, partners can differentiate themselves in more ways than just by the OPN program levels of Silver, Gold, and Platinum. Now the partners can distinguish themselves by spotlighting their strengths and special skills in 55 Specialization areas (as of December 2010, with many more scheduled through May 31, 2012). The following lists examples of available Specializations from each of the five knowledge zone groupings:  Database - Oracle Database release 11g  Middleware – Service-Oriented Architecture release 11g  Applications – Oracle E-Business Suite Financial Management release 12.1:  Industries - Healthcare  Server and storage systems – Oracle Sun SPARC Enterprise Entry Level and Midrange Servers: 6 #226493E ©2011 IDC
  • 7. Each of the Specializations requires individuals at the company to pass the following types of exams (number of individuals varies by Specialization):  Sales Specialist  Presales Specialist  Support Specialist  Certified Implementation Specialist  Industry Specialist (available only for industry-based Specializations) In September 2010, Oracle announced Advanced Specializations that are intended to recognize the depth of resources and bench strength. An Advanced Specialization, which can be earned for any of the available Specializations, requires that the partner has 50 or more Certified Implementation Specialists. This means that to earn an Advanced Specialization in Oracle Database 11g, the partner must meet the usual Specialization criteria, plus have sufficient qualified individuals who have passed at least 50 applicable Certified Implementation Specialist exams. Oracle counts the number of passed assessments and certifications, not the number of individuals. It is possible that an individual pass more than one assessment in a single Specialization area.. Finally, there are no country-based boundaries to meeting the criteria. If the partner's resources are spread across the United States, India, Belgium, and the Netherlands, they all count toward meeting the Specialization criteria. What Oracle is looking at is the overall capability and knowledge base within the partner company, not the number of people in a specific country. An overview of Specialization, including the Specialization Competency Readiness Guide (with a complete list of available and planned Specializations through May 2012) is available at www.oracle.com/partners/en/opn- program/specialize/index.html. Company Strategy Partner Program Benefits The sections that follow describe some of the the main benefits and resources for partners in the OPN program. Note that the benefits described are core benefits of the partner program that certain partner tiers, or even all partners, may access. Benefits for very small subsegments of the partner community and other ad hoc benefits for partners may not be listed here. The benefits fall into five key categories: sales, marketing, technical, and partner development and relationship. Partner Program Benefits — Sales Distribution Rights and Resale  Description: Partners earn top-line revenue by reselling Oracle products and services and profit from the margin between the sale price to the customer and ©2011 IDC #226493E 7
  • 8. the royalty to Oracle. Specific information about discount amounts is not publicly available. Additionally, Oracle may provide rebates or incentives for a limited time and for a select set of products. The following distribution opportunities are available to partners:  Full Use Distribution Agreement (FUDA). The Full Use license is Oracle's least restrictive license type and grants the end user full rights to develop custom applications with the Oracle software and hardware. The FUDA is, generally speaking, the most appropriate distribution agreement for systems integrators and value-added resellers.  Application Specific Full Use (ASFU) Program Distribution Agreement. The ASFU Distribution Agreement entitles partners to resell Oracle software as part of their named application package. An ASFU license may be used only with a single-named partner application package. The ASFU is the most appropriate license level for an independent software vendor.  Embedded Software License (ESL) Distribution Agreement. An ESL is a restricted type of license sold primarily by an independent software vendor where Oracle technology is embedded in its application package. The Oracle products must not be apparent to the end user and may only be used by the end user to execute the solution provider's designated application package.  Reselling Support. With each Oracle license distributed, partners may also distribute the end user's right to receive first-year technical support from Oracle. The partner may decide how to price the first-year support but must also communicate Oracle's price for second-year support. Partners are not allowed to resell support for second and subsequent years.  Reselling Oracle Support for ASFU and ESL. Partners must provide first- line end-user support on the Oracle programs contained in their application package to those end users that want technical support and may contact Oracle for assistance with a customer query that is related to an Oracle program using the CSI for the applicable OPN-supported development licenses. Fees for support are due to Oracle when partners provide support to their end users.  Reselling Oracle Enterprise Linux and VM Support. Oracle allows its partners to resell Oracle Enterprise Linux and Oracle VM Support.  Reselling Oracle Education. The Oracle University Reseller program enables qualified organizations to offer Oracle education products and training for resale.  Requirements: OPN members at the Silver level have the ability to resell only the 1-Click products. Gold, Platinum, and Diamond OPN members may resell any of the products included in the knowledge zones to which their company is accepted, has achieved the reseller criteria, and has completed the appropriate distribution agreements. To resell Oracle University products and services, the 8 #226493E ©2011 IDC
  • 9. partner needs to submit an application and complete an OPN Education Distribution Agreement. Open Market Model  Description: In an effort to optimize its distribution channel, Oracle instituted the Open Market Model (OMM) that offers three distinct initiatives, which acknowledge and reward partners for registering transactions with Oracle:  Resale initiative. The resale initiative is open to all eligible OPN members to register net-new opportunities for any Oracle program, service, and/or license levels for which the partner has a valid Oracle distribution agreement. If Oracle closes the deal that was registered and accepted under the resale initiative, the registered partner will qualify for a fee from Oracle. The fee varies by product and/or geography but is generally 10% of the value of the opportunity with a cap at US$100,000.  Referral initiative. The referral initiative is open to all OPN members that have knowledge of a net-new opportunity to license any Oracle programs and/or services. Upon successful closure of the transaction, Oracle will pay a fee to the approved referring partner. The fee varies by product and/or geography but is generally 5% or 10% with caps at US$25,000, US$50,000, or US$100,000.  Non-commission cosell initiative. Sometimes it is necessary or appropriate for a partner to register a potential opportunity, but not be eligible for a fee or commission as is available in the resale and referral initiatives. The non-commission cosell initiative allows partners to register net-new opportunities, existing and active sales opportunities, or single large transactions that encompass a partner deal or supersede it. Registering these deals gains the partner important recognition within the OPN program and the Oracle sales teams. OMM offers an alternative to the Oracle partners to earn recognition and compensation for deals they found but did not have the opportunity to resell as described in the Distribution Rights and Resale section.  Requirements: The Open Market Model is available to all OPN members. More complete details of the OMM program are found at www.oracle.com/partners/how-to-do-business/. Partner Program Benefits — Marketing Logos and Branding  Description: Oracle provides a variety of logos to the OPN membership. Specific criteria must be met before the partner can download and use the logo:  Oracle Partner is available to partners in the Silver level of membership in OPN or partners that choose only to work with the 1-Click products. This is the membership entry level. ©2011 IDC #226493E 9
  • 10. Oracle Gold Partner is available to partners that have achieved the Gold level of membership in OPN and have begun on the path to Specialization.  Oracle Platinum Partner is available to partners that have achieved the Platinum level of membership in OPN.  Oracle Diamond Partner is available to partners that have achieved the Diamond level of membership in OPN. This is the most prestigious OPN logo.  Oracle Validated Integration is available to partners that have had Oracle validate their solution with one of the Oracle applications.  Oracle Accelerate Solution is available to partners that have their prepackaged bundle that pairs with Oracle E-Business Suite and JD Edwards EnterpriseOne applications reviewed and approved by Oracle.  Oracle Certified Professional is available from Oracle University to those individuals who have passed the necessary OCP exams.  Value-Added Distributor is available to partners that are authorized as Oracle's value-added distributors.  Oracle PartnerNetwork Specialized Global Awards logos recognize partner excellence in a number of categories including technology, applications, industry, and midsize. The OPN logos provide recognized market credibility of the partner's relationship with Oracle. Partners use the logos on their own Web sites, presentations, marketing collaterals, business cards, and trade show booths.  Requirements: OPN logos are available to all OPN members, although the logo varies based on partnership level. Additional logos for Specialization are available once the partner has met the specific Specialization criteria. Market Development Funds  Description: The OPN Market Development Funds (MDF) is a marketing budget allocated to fund partner marketing programs. MDF may be used toward Oracle- related revenue activities such as advertising, collateral, demand generation, events, and telemarketing. Platinum-level OPN members may apply for funding marketing activities that highlight the Oracle partnership and extend the Oracle message. Through MDF, Oracle will fund up to 50% of eligible costs for a joint partner/OPN activity and up to 30% of eligible costs if two partners are involved.  Requirements: Only Platinum-level partners are eligible to apply for MDF benefits. Diamond-level partners receive an annual MDF allocation. Joint Customer Success Stories  Description: Gold- and Platinum-level partners can nominate their customer success story (having first obtained the customer's permission to do so). Once 10 #226493E ©2011 IDC
  • 11. accepted, partners receive professional services to write and publish their customer success story. The story is made available on Oracle.com and linked to the partner Web site. The partner's market credibility is increased because the partner, Oracle, and the customer are publically validating the positive joint success.  Requirements: Customer success stories are available only to Gold-, Platinum-, and Diamond-level members of OPN, although it is not clear that all of the partners listed on the Partner Success Stories have actually achieved this status. Including the OPN partner logos on this page would be a nice addition to continue the branding of OPN Specialized (see www.oracle.com/customers/partners/index.html). Partner Program Benefits — Technical Enablement 2.0 Boot Camps  Description: To complement the training available from Oracle University, in 2008, OPN developed the Enablement 2.0 Boot Camp series. The boot camp classes are role specific for sales, presales, and implementation, with implementation boot camps being the most commonly scheduled events. Most of the classes are in-person, but there are also live virtual events. Course descriptions generally state that the class provides an in-depth understanding of the architectural, technical, and functional content while providing an understanding of the installation, implementation, configuration, and/or extension of the product. Sample topics are:  Database Security Options Implementation — 2 days  Service-Oriented Architecture Implementation — 3 days  E-Business Suite Financial Management 11i to 12i Delta Implementation — 5 days   Oracle VM Overview and Implementation — 2 days Oracle also has an innovative program that allows partners to improve the curriculum. Oracle uses "delivery partners" to develop and teach some of the boot camps. These partners have access to a delivery dashboard to access content and improve it. Also, partner staff members who attend OPN classes can provide feedback on courses or assessments through the OPN Competency Center.  Requirements: Silver-level partners are eligible only for boot camps specific to the 1-Click products. Gold, Platinum, and Diamond partners may attend any of the boot camp offerings. Fees, ranging from free to US$2,250 for a five-day virtual class, vary based on boot camp topic and geographic region. See the current Boot Camp Schedule on the "Most Popular Resources" at www.oracle.com/partners. ©2011 IDC #226493E 11
  • 12. OPN Competency Center  Description: The OPN Competency Center is an intuitive, easy-to-use tool that guides partner employees through a role-based path in order to learn how to sell, demo, implement, develop on, and support Oracle products. The model for the user interface is the London Underground map, with students choosing a "track" (Oracle calls them Guided Learning Paths [GLPs]) and stopping at courses on their journey. Preassessments are available so students can test their existing knowledge and determine where they should actually spend their time learning new subjects. Students can track their progress through the GLPs and then begin to earn "Specialization" by successfully completing an OPN Specialist assessment. The OPN Competency Center also includes a dashboard that the partner's OPN administrator can use to track overall progress toward achieving Specialization. The administrator may also create workgroups and assign training to employees to fulfill the education requirements for Specialization using a feature called Training Manager.  Requirements: The OPN Competency Center is available to all OPN members. Development and Integration Licenses  Description: OPN provides an unlimited number of development and integration licenses to OPN members to enable partners to lower their development costs for building products that run on the Oracle stack or integrate to Oracle applications. These development and integration licenses also include software updates and patches, ensuring that the partner always has access to the most current Oracle software. The development licenses are limited to technology products (please note that development licenses are not available for application programs). Integration licenses are limited to the application programs identified in the knowledge zone(s) for which the partner has applied and been accepted.  Requirements: Silver-level OPN members have access to development licenses for 1-Click products. Development licenses for technology products are available to all OPN members at Gold, Platinum, and Diamond levels. Availability of application integration licenses are limited to Gold-, Platinum-, and Diamond- level partners and to acceptance in applicable knowledge zones. Support Discounts  Description: There are times when access to self-service support tools and knowledge bases are not enough and the partner really needs to log a service request. Support resources are expensive, so this type of benefit is rarely offered at no cost. In detail:  100 free Service Requests to use with development, demonstration, and integration licenses on any Oracle technology or application product. 100 free SRs are available to Platinum- and Diamond-level partners. Additionally, Specialized partners receive 50 free SRs per Specialization for use with development, demonstration, and integration 12 #226493E ©2011 IDC
  • 13. licenses for Oracle technology and application programs in addition to any free SRs received as part of the Support benefits discussed previously (up to a maximum of 250 free SRs per membership year). The free SRs are renewed each year.  Purchase Service Request Packs at a discount. Gold-level partners that have not yet earned a Specialization, as well as partners that have used up their free SRs, may purchase packs of Service Requests for Oracle's application and technology products. SRs are sold in packs of 10 for US$650 and 25 for US$1,400 and may be purchased through the Partner Business Center.  Free Service Requests for Oracle's Enterprise Linux Support. 100 free SRs are available to Gold Specialized partners, and 200 free SRs are available to Platinum- and Diamond-level partners. The free SRs are renewed each year.  Discount on Oracle's Enterprise Linux Support. Gold-level partners that have not yet earned a Specialization, as well as partners that have used up their free SRs, may purchase packs of Service Requests for Enterprise Linux Support. SRs are sold in packs of 10 for US$650 and 25 for US$1,400 and may be purchased through the Partner Business Center. At the Platinum and Diamond levels, the annual renewal of free SRs is a terrific benefit. Plus, Oracle provides some number of free SRs to the Gold-level partners that have achieved at least one Specialization. Most large software vendors require partners to pay for this generous level of support.  Requirements: Free service requests are provided to Gold Specialized, Platinum, and Diamond partners only. All other service requests may be purchased at a discount. These service requests are only for use with the partner's demonstration, development, and integration licenses. They are not to be used for customer projects or Oracle products that may be used internally by the partner. Oracle University Discounts  Description:  Discounts on products and services. Through its partnership with Oracle University, OPN offers discounts of 20% to Silver partners and 25% to Gold, Platinum, and Diamond partners on all Oracle University products and services including classroom training and self-study CDs.  Learning Credit discounts. If a company can plan ahead for its training requirements, it often makes sense to prepurchase Learning Credits. If purchased within 30 days of signing up or renewing an OPN membership, OPN members can purchase Learning Credits at a 35% discount. However, these Learning Credits must be purchased within the first 30 days of OPN membership or renewal and must be used by the next renewal date or within 12 months, whichever is earlier. ©2011 IDC #226493E 13
  • 14. Live virtual discounts. Platinum- and Diamond-level OPN members are offered an additional 5% discount, over the regular 25% discount, for these live virtual events.  Oracle University Knowledge Center Passport. Typically accessed via the OPN Competency Center, the OUKCP is the library of online courses and assessments. The courses are developed by Oracle University, Oracle's product development and support organizations, Oracle Consulting, Oracle Sales, and the OPN Enablement team.  Requirements: The OUKCP is available to all OPN members, as are the additional discounts for purchasing learning credits. Discounts on Oracle University products and services vary by partner level. It is important to note that these training discounts are for use with the development of the partners' own skills in developing and deliver solutions to their customers, not as a pass through to customers. Oracle Certified Professional Assessments/Exam Vouchers  Description: The Oracle Certified Professional is one of the most established badges of credibility for an individual in the information technology industry. Oracle provides a wide variety of OCP programs through Oracle University. Exams, for which there is a fee ranging from US$125 to US$300, may be taken at testing centers worldwide. Complete details are available at education.oracle.com.  Requirements: The OCP voucher is available only to Gold- (two vouchers per year) and Platinum/Diamond-level (six vouchers per year) OPN members. Partners receive two additional vouchers once they achieve their first Specialization. Partner Program Benefits — Relationship and Development Partner Business Center  Description: Stationed in four business centers (Bangalore, India; Beijing, China; Bucharest, Romania; and Buenos Aries, Argentina), the Partner Business Centers provide around-the-clock partner support in up to 24 languages, via phone, email, and Twitter. The team provides a variety of services including business and administrative support, site navigation, membership updates, order placement, and technical support assistance:  Silver. Free inbound call and email assistance including assistance logging Service Requests  Gold. Proactive outbound engagement including business and administrative support functions and priority renewal  Platinum. Dedicated virtual account management and channels to optimize the Oracle PartnerNetwork and Specialized benefits, development of joint 14 #226493E ©2011 IDC
  • 15. business plans, and top priority renewal (The most senior members of the team staff use these dedicated phone lines.) The Partner Business Center uses a methodology titled Programmatic Partner Enablement (PPE) to work proactively with new OPN partners to help them get started using their OPN membership benefits, meeting resale criteria, developing business plans, and so on. It's a very structured process that moves the partners toward their first and subsequent sale of Oracle technology. This PPE process has been in place since 2007 and has proved to be a very effective way to get the partners to grow their business and become self-sufficient while also growing Oracle's business.  Requirements: The Partner Business Center is available to OPN members at all levels, but the specific benefits vary by level as described previously. Partners are nominated by the field to participate in the Programmatic Partner Enablement process. Assigned Oracle Global Alliance Manager and Global Oracle Executive Sponsor  Description: The assigned Global Alliance Manager is often the most valued benefit of any partner program. The addition of the Global Oracle Executive Sponsor provides direct access to Oracle's executive management team.  Requirements: Assigned Oracle Global Alliance Managers and Global Oracle Executive Sponsors are available only to Diamond-level partners. Social Media  Description: The OPN team has been very active in using social media as a method of communication with the OPN membership. OPNhasbecome a leader among the software vendors in using these types of tools. OPN primarily uses the following resources — Oracle wiki, Facebook, Twitter, LinkedIn, and YouTube:  Oracle wiki. The Oracle wiki has an active section for OPN Specialized program (see wiki.oracle.com/page/Oracle+PartnerNetwork).  Facebook. The OPN group on Facebook is named "Oracle PartnerNetwork". The postings include lots of event announcements, links to blogs, and media announcements.  Twitter. Oracle has two Twitter groups for OPN. @oraclepartners is the official Twitter group for OPN. The Oracle Partner Business Center manages the Twitter group @ORCLPartnerBiz. Many of the postings are event announcements, but issues and queries are also posted by OPN members.  LinkedIn. The OPN team manages a corporate group named "Oracle Partner Network". The LinkedIn group is primarily used for event announcements and training offers from Oracle, but there is some good ©2011 IDC #226493E 15
  • 16. participation on discussions for OPN benefit utilization and improvements, meeting agendas, and so on.  YouTube. OPN is an active user of YouTube, with many video blogs, interviews, and tutorials, on a specific Oracle PartnerNetwork YouTube channel.  Requirements: The Oracle wiki, Oracle PartnerNetwork on Facebook, ORCLPartnerBiz on Twitter, Oracle Partner Network on LinkedIn, and Oracle Partner Network on YouTube are public groups. FUTURE OUTLOOK As announced at the OPN PartnerForum during Oracle OpenWorld in September 2010, Oracle is continuing to follow through on the commitment to Specialization. The announcements of the Diamond-level and Advanced Specializations emphasize this commitment. Oracle has also made public commitments to adding and maintaining the number of available Specializations through May 2012 and, it is expected, beyond. Oracle will continue to fold regional initiatives (e.g., the Pillar program) into Specializations. IDC applauds this decision as it makes the overall partner program consistent and easier for the partners to decide how best to work with Oracle. In October 2010, the Sun PartnerAdvantage program ceased to exist and the Sun partners needed to decide if they were going to join OPN if they want to continue to work with the Sun products. It is expected that Oracle will continue with its acquisition strategy and its practice of absorbing the acquired partners into the OPN program. The OPN team has developed a smooth and effective process for managing these acquisitions and is very efficient at it. Oracle has long had a broad number of products available for partners to work with. The acquisitions have and will continue to increase the number of products. A major focus in the future will be getting the partners to cross-sell more of these products to their customers. For example, if the partner is only selling Sun hardware solutions today, they will be encouraged to add higher-margin database products to the mix. All of this helps the partners and Oracle to continue to grow their mutual businesses. ESSENTIAL GUIDANCE Recommendations for Oracle The OPN Specialized launch in October 2009 was long needed for Oracle's partner community. Oracle has created a strong program with clear guidelines and criteria for moving up in the membership levels and differentiated benefits for the partners that do the work to achieve the Specializations. Achievement of a Specialized status allows partners to be recognized for the breadth of knowledge, while the addition of Advanced Specializations in September 2010 provides a way for partners to clearly demonstrate their depth of resource. The move from Partner, Certified Partner, and Certified Advantage Partner to Silver, Gold, and Platinum is much easier to understand by the Oracle sales teams, the partner community and, most importantly, 16 #226493E ©2011 IDC
  • 17. the customer base. The September 2010 announcement of the Diamond level is also extremely welcome. For too long, the criteria to be one of the truly top-tier global partners was unpublished and unclear. Oracle's openness about the criteria will strengthen these partners and provide clear direction for those emerging partners that aspire to these levels. However, as it launched OPN Specialized, Oracle initially relabeled its existing Certified Advantage Partners as Platinum and the Certified Partners and many of the partners as Gold. Oracle gave the partners until December 2010 to actually achieve the Specialization criteria required by the updated program (although some partners have longer depending on their membership agreement dates). It is important that Oracle stick to its guns and demand that the criteria be met to maintain the coveted Platinum status. Other software vendors have caved in the past in this situation and slipstreamed partners into top levels based on long-ago achievements. Additionally, Oracle needs to maintain the differentiation of benefits by partner levels. It is tempting for the regional teams, let alone the marketing and development organizations, to make exceptions and grant Platinum-level benefits to lower-level partners. Recommendations for Partners Oracle is a huge and complex organization, so it's easy to feel lost. But the OPN Specialized program has a lot to offer to the partners that really want to drive their business forward and not just have another vendor plaque on the wall of their lobby. What's important at Oracle is revenue and transactions. This is what gets you noticed. Beginning as a Remarketer and at the Silver level, you have the opportunity to do lots of transactions and a growing amount of revenue. Transactions are important as they create volume and an opportunity to develop customer relationships that grow revenue. Gold-level partners should also seriously look at the Specializations and focus on earning those that make sense for their business. The Oracle field sales organization has been very receptive to the concept of Specialization, and its trust in the channel is growing. Current and potential OPN members at the Gold and Platinum levels today should ensure that they meet the criteria to earn and retain the Platinum status. The annual fee at the Platinum level seems high, but the benefits really provide an excellent return on investment. Contact Us If you have any feedback on this document, contact Christine Dover at cdover@idc.com or Darren Bibby at dbibby@idc.com. ©2011 IDC #226493E 17
  • 18. Copyright Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved. 18 #226493E ©2011 IDC