OpenWorld 2016

OPN InFocus Session

Build Your Cloud Business
Session #THT7663

Tim Dwyer
Director-Cloud Go To Market
Programs
World Wide Alliances and Channels
September, 2016

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole discretion of Oracle.

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Program
Agenda Agenda
1

How far we have come

Program Overview

Show me the Money

Partner Engagement

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Oracle Channel Strategy: We need our partners

to sell, where we dont
have selling capacity

to drive incremental
revenue via registration

to sell stack-based
solutions, and implement
them on Oracle
Infrastructure and Platform
Cloud services.

to wrap those solutions

with value-added services
AND drive consumption

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | Confidential Oracle Internal & Value Added Distributors Only

The business of the cloud is very different (2013)

Cloud Revenue

On Premise
Revenue

Past

3 years ago

Future
Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

The business of the cloud is very different (where we are)

Cloud Revenue

On Prem
Revenue

Past

Today
Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Future
7

Cloud Partner Program

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

OPN Program Structure

Progressive Opportunities to Differentiate

oracle.com/partners/goto/cloud-program
Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Pivot to the Cloud

Oracle enables partners to build a cloud business within their business

Referral
Program

Co-Sell
Implementation

Resale
Program

Easy participation while

building experience

Provide value add

implementation services

Maximize return through

recurring revenue

Comprehensive array of
programs designed to meet
partners needs based on
resources, skills and experience

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

10

Oracle Cloud Services Resale Program

Resale
Program

Resale
Recurring revenue from on-going Cloud Service Subscription

Own the relationship; add-on, upgrade and renew the service

Transact through your Value Added Distributor or Direct with Oracle

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

11

Two-Tier Cloud Resale Transaction Model

VADs and VARs must meet specific Cloud Service training criteria to Distribute, Resell and Implement

QUALIFIED CLOUD VAD

QUALIFIED CLOUD RESALE PARTNER

Resale Discount

VAD Pays Oracle

CUSTOMER

Cloud Service Invoice

Partner Pays VAD

Customer Pays Partner

Service and Support Delivery

Oracle Cloud Services Agreement

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

12

Requirements
Refer

Active OPN Member

Co-Sell
Gold OPN Member
Resell

Cloud Registered - PaaS/Iaas only

Gold or higher All Cloud Services
MDA (Master Distribution Agreement)
CSDA (Cloud Services Distribution Addendum)
VAD Designation Letter (With Cloud Services)
Resell Criteria

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Acquiring Resale Rights

Complete CSDA via click wrap from the Partner Store

For Public Sector request a PS addendum to the CSDA

Complete VAD Designation Letter with Cloud Language

oracle.com/partners/goto/cloud

Select the Resell tab and scroll down and click to the specific Cloud
Service to view resell criteria for that service Cloud Resell
Review the available products
Criteria requirements vary by Cloud Service Complexity
Complete the resell criteria training
Apply for resell rights

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

14

Resale Rights Tab Example

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

15

Two Cloud Subscription Models

SaaS and Non-Metered Subscription Model

Oracle Cloud SaaS and Un-Metered Subscriptions are a way for customers to
subscribe to a Cloud Service based on a volume Tier

Subscription price is based on a unit per month and discounted for higher volumes
Subscriptions are invoiced quarterly; billed in arrears for some Public Sector (Highly Managed)
Standard Subscription Terms are One or Three Years
Subscriptions to SaaS and Un-Metered Cloud services available to partners at a discount

Metered Pre-Paid Subscription Model (Cloud Credits)

Oracle Cloud Metered Pre-Paid Subscriptions are a way for customers to

purchase a pool of funds that can be flexibly deployed based on need

1 Oracle Cloud Metered Pre-Paid Subscription priced at 1 USD

Burned down over a 12 Month Term
Unused credits at the end of the term are forfeited
Resale of Cloud Metered Pre-Paid Subscriptions available to partners at a discount

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

16

Database-as-a-Service: Metered vs Non-Metered

Metered

NON-Metered

Very Flexible
Only charged for actual usage
Adjust for Seasonality

Very Specific
Buy exactly what you need
One to One when comparing with existing
environment

Access to all services in that family

Let projects dictate what you need vs which
specific license you have
Agile
Change as you go. Add a service or shut down a
service

Less Expensive
Priced lower due to less flexibility
Known service
Know exactly what service they have and what
they can use

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

17

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Sales Best Practices:

Modernize Sale and Marketing

Separate Cloud Group

Integrated Group

Traditional Sales

Integrated Sales

Cloud Sales

Make sure you include ongoing program management

IDC White Paper, sponsored by Oracle, Partner Cloud Success Guide, January 2015

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

19

Cloud Delivery Best Practices:

Optimize your operations

Produce Value for the Customer Quickly:

Many say in less than 90 days

Especially true for SMB
To Do This:

Have fixed scope projects

Stick to the plan, limiting change orders
Stay Engaged for the entire lifecycle of the customer:

Bring value through usage/consumption

Look for add on and upgrade opportunities
Make sure to focus on and plan for renewals
IDC White Paper, sponsored by Oracle, Partner Cloud Success Guide, January 2015

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

20

Leverage Oracle Resources-Oracle Consulting

Oracle Consulting has
introduced new partner
friendly programs to help your
customers go live faster and
reduce risk in your projects.

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

21

Partner Engagement Model

Industry Expertise
Solution Expertise
Pre-Sale Resources
C-level Access
POCs
Demos
Competitive Intelligence
ROI Analysis
Independent 3rd Party

2 Partner Resells Deal

4 Partner Drives Consumption for Renewal

Bundled Pricing
Public Sector GSA Contract Holders
Customer Purchasing Preference
Managed Services Contracts
Packaged Services & Products

Fixed-price Implementation
Custom Integration Services
Bespoke Applications
Administration
Project Management & Planning
Assessment Tools
End User Training & Support

New Opportunities
Demand Generation
Marketing Campaigns
Extended Relationship Maps
Proven, Repeatable Solution

1 Partner Registers Deal (Referral or Resale*)

3 Partner Delivers Value-Add Services and IP

Note*: Rebates & Incentives Limited to Commercial Broad Market (CBM)

Customers, Public Sector & Top Accounts May Not Qualify

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

22

Monetize !
Value Add Services

$$$
$$$
$$$

Rebates

Resell Margin

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Renewal

Partner Cloud Resale Financial Model

Partner Refers or
2
Resells Deal
Front-End Margin
Rebates thru VAD*

Partner Drives
Consumption for Renewal
Front-End Margin on Renewal
Rebates thru VAD*

Recurring Revenue
(ARR)

Initial
Transaction

Partner Registers Deal

Partner Paid by Customer for

Value-Add
Implementation
Managed Services
IP: Integrations/Apps

* Rebates may vary by Cloud Service and are subject to change; Public Sector
transactions do not qualify for rebates.
Copyright 2016, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal and Partners Only

OPN Incentive Program

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Cloud Rebates

3%

7%

Registration
Rebate

Emphasis
Product Rebate

Important!
o Initial Transaction
o Rebates are earned & paid only on 2-tier resale business
o Confidential to Oracle Partner Network members
Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Partner Financial Model Examples

Oracle Database Cloud Service Enterprise Edition High Performance General Purpose
2 instances for 12 months
Initial Transaction
Metered Prepaid Subscriptions

Non-metered Subscriptions

$4,000/OCPU per month

$2,000/Hosted Environment

Metered

Non-Metered

List Price
Discount (No Street Price)

$96,000

List Price

Non-Metered

$48,000

0%

Street Price Discount

15%

Final Customer Price

$96,000

Final Customer Price

$40,800

VAR Revenue

$96,000

VAR Revenue

$40,800

VAR Cost

$86,400

VAR Cost (25% off list)

$36,000

VAR Margin

$9,600

VAR Margin

$4,800

VAR Rebate*

$8,208

VAR Rebate*

$3,420

Total VAR Margin

$8,220

Total VAR Margin

Total VAR %

$17,808
19%

Total VAR %

Renewal

20%

List Price

Metered

$48,000

$96,000

15%

0%

Final Customer Price

$40,800

$96,000

VAR Revenue

$40,800

$96,000

VAR Cost

$36,000

$86,400

$4,800

$9,600

Discount (No Street Price)

VAR Margin
VAR Rebate for PaaS Metered Only

Total VAR Margin

Total VAR %

*Rebates calculated on estimated Net to Oracle

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

N/A

$8,208

$4,800

$17,808

10%

19%

Partner Resale Model: Cloud as an Annuity

Example: Metered Cloud Credit with published 10% partner discount & New Sale Rebate
New Sale

Replenishment

Replenishment

Replenishment

Year 4

After 4 Years

Invoice - $500K
$50K margin
+
$45K New Sale rebate

Invoice - $500K
$50K margin

Invoice - $500K
$50K margin

Invoice - $500K
$50K margin

$245K in
ARR

New Sales

Replenishment

Replenishment

Invoice - $500K
$50K margin
+
$45K New Sale rebate

Invoice - $500K
$50K margin

Invoice - $500K
$50K margin

New Sales

Replenishment

Invoice - $500K
$50K margin
+
$45K New Sale rebate

Invoice - $500K
$50K margin

Year 1

Year 2

Year 3

$500K in new
ARR sold

$500K in new
ARR sold

Cloud Rebates

$500K in new
ARR sold

Opportunity must be registered to Qualify

Customer must be in the Broad Market
Opportunity must be new to Oracle
Rebates available through VADs Only; paid net to Oracle
Rebates offered for New Sales on all SaaS, PaaS and IaaS Services
Additional Replenishment Rebate available for PaaS Metered only

Cumulative Revenue

$680K

New Sales

$500K in new
ARR sold
Invoice - $500K
$50K margin
+
$45K New Sale rebate

Build your Annual Recurring Revenue (ARR) through your partner portfolio
Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Oracle Confidential Internal and Partners Only

Join the Conversation

Join the Community

oracle.com/cloudconnection

Cloud Partner Program

oracle.com/partners/goto/cloud

Cloud Platform Community community.oracle.com/groups/cloud-platform-partner-community

Cloud Products

cloud.oracle.com

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Copyright 2016, Oracle and/or its affiliates. All rights reserved. |

Copyright 2016, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential Internal/Restricted/Highly Restricted

32