SAP and Oracle's referral programs have different focus

By Victoria Ho, ZDNet Asia
Thursday, April 17, 2008 07:38 PM

Although their recently launched referral programs are similar, Oracle's is driven by financial gain while SAP's is focused on building relationships with its channel partners, says Ovum.

SAP earlier this month announced the launch of a business referral program targeted at small to midsize businesses (SMBs), in which it will pay for leads for new business. Channel partners will get a 5 percent cut of a deal's net software license value, according to SAP.

Oracle's program pays a similar 5 percent, capped at US$50,000.

Warren Wilson, Ovum research director, said in a statement the programs "should pay a double dividend" in bringing in new business and helping to identify new partners for the two software giants.

The program will offer the opportunity for the two rival companies to evaluate which of the partners will be most productive or can best fill gaps in their market coverage, said Wilson.

However, the differences between the two vendors' programs may be their emphasis, noted Wilson.

"Oracle's lead message is the money," said Wilson, adding that its programs focus on increasing deal volumes.

"SAP, by contrast, emphasizes deep engagement, building long-term relationships and two-way loyalty through co-innovation programs in which the partner helps to define the Web services that will underpin the solution.

"Which method is more effective is a question that the market will take years to answer," said Wilson.


WORTHWHILE?

0

0 votes
Blog

Talkback 0 comments

There are currently no comments for this post.


Tech Jobs Now!

Search for your ideal tech job:

A look at the Terminal Services Manager in Windows Server 2008

Windows Server

Terminal Services Manager has been around for a while, but Microsoft made some changes to the utility in Windows Server 2008. Here's what you'll find.


Read more »



Open source blog reloaded!

Blog thumbnail

This is with great pleasure that this "little corner of the Web" is resuming activities through another member of the (now famous ;-)) Beijing Linux User Group (BLUG) doing the..... by Fred Muller

Read more »

Tags

  1. acquisition
  2. acquisitions
  3. ceo
  4. china
  5. financial
  6. google inc.
  7. green it
  8. ibm corp.
  9. india
  10. industry
  11. information technology
  12. it outsourcing
  13. job
  14. microsoft corp.
  15. network
  16. outsourcing
  17. revenue
  18. singapore
  19. software
  20. u.s.