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Oracle to name distributors, spell out rebate changes

Microscope contributor

Oracle will tomorrow inform value added distributors if they feature in its future plans following an intensive four week request for information, a move that will signal a significant shift in the way reseller hardware rebates are handled.

In the UK, it is understood that Oracle will choose two partners with a number of distributors replying to the RFI document including Arrow ECS, Avnet Technology Solutions, Computer 2000 and Interface Solutions.

The written proposals were submitted by distributors in mid-July, these were reviewed by the local country operation days later after which they were escalated to the regional heads at the end of last week and then sent to US corporate.

"30 July is deadline day," said one source close to the situation, "the VADs find out who has made it and who has not."

The RFI is likely to lead to massive consolidation of distribution partners across EMEA where in Germany for example, Oracle and Sun have a total of nine VADs.

All resellers will be mandated to place orders for Sun hardware through the VADs  to eliminate back-office functions as Oracle moves to an assembly-to-order model and consolidates order flow and billing.

Distributors will also be asked to manage the Oracle Partner Network partner programme, covering rebates and MDF to align resellers with VADs. Rebates have not been paid to Sun dealers since the SPA scheme was canned on 1 June.

"Oracle will offer a much higher level rebate for driving growth in the non-named account space and negligible rebates in the named space," said a source.


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