Oracle SA has announced its independent software vendor (ISV) online strategy designed to enable companies active in the small to medium enterprise (SME) space to enter the Oracle technology fold.
In launching its Oracle ISV Online initiative, the company is also committing to the future of the application service provider (ASP) model with solutions delivered to users as an online service, says Craig Dawson, Channel marketing manager at Oracle SA.
Oracle ISV Online seeks to bring South African ISVs, hosting providers and systems integrators together to address the needs of the smaller SA business, by offering SME solutions on Oracle technology on a monthly, cost-per-user basis, via an ASP.
"We`re now actively recruiting ISVs operating in the SME space who want to get involved with this programme, which Oracle sees as a major market growth point," says Dawson.
"That growth will be in the SME market, and we believe that ISVs will have a unique selling proposition if they can offer their solutions on Oracle technology in a hosted environment, but without the significant up-front capital investments."
This latest move to expand its ASP channel operations follows Oracle`s extensive education drive among ISVs over the past year. This was aimed at explaining global ASP trends in the SME space and the benefits of hosting their solutions on an Oracle-based ASP model rather than to continue with outright software sales.
"This programme has been successfully implemented in the UK, and I believe it will be even better received here when SA-specific issues are taken into account," says Dawson. "These include the outflow of limited skills, pricing and companies increasingly wanting to focus on core competencies rather than support operations such as IT.
"I believe the timing of our ASP model is just right and that the next eight months will see the ASP market pick up momentum. It is going to take a bit of a mindset change for ISVs to move to annuity-based earnings rather than outright sales, but we are looking at means of helping them make that transition."
Dawson maintains bandwidth considerations are not a major issue with digital communications being able to meet most needs, as well as faster pipeline technologies on the horizon.
"The ISVs are very proactive in the SME space. We believe that in Oracle we have the fundamental technology suite that will enable the ISVs to increase their market share," concludes Dawson.
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