Oracle expects to boost sales 25% under new channels strategy

Thursday, August 11, 2011

Oracle (Nasdaq: ORCL) expects its Latin American sales to grow 25-30% for fiscal 2012, ending in May, thanks to the implementation of a new strategy, Oracle's Latin America channel and partners VP, Sandra Vaz, told BNamericas.

Oracle has changed its strategy and expects channel partners to focus on offering specific products, becoming specialists in the use and knowledge of the products as well as on the clients they provide for.

"Specialization - that's our goal," Vaz said, adding that Oracle has over 1,800 partners in the region and that the company expects to grow in terms of "quality, not quantity. We need to get an elite team that will specialize, because those partners that specialized sell more as well."

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According to Vaz, 55% of Oracle's sales come from the company's direct sales to clients. "This is something we want to change. The idea is 50% through us and 50% through channel partners."

In the last couple of years, Oracle has acquired more than 60 companies to fulfill demand for different products. The IT firm is focusing on three areas to add to its portfolio, Vaz said. One is for companies that provide specific solutions for the industry in general, another is for specialized technology companies, and the third is for software and hardware solutions.

Currently, Oracle is a provider for various verticals, including government, finance, retail, mining and transportation.

Regarding demand from specific verticals in Latin America, Vaz highlighted governments' technology requirements to streamline internal processes and provide better services to citizens. The educational sector is also requiring more technology, as governments seem to be increasing investments in this sector.

In retail, customer relationship management (CRM) is one of most in-demand products, "because the retailer wants to know who the clients are and what their preferences are, in order to retain their loyalty," Vaz said. E-commerce is also a big trend in the retail sector.

Oracle's Americas revenues surged 12.3% year-on-year in fiscal 4Q11, ended May 31, hitting US$5.49bn.

Yearlong revenues for the region totaled US$18.4bn, a 32% increase from US$13.8bn in fiscal 2010.