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Oracle Dynamic Hybrid Bundles Initiative VAR BRIEFING
Global Channel Sales March, 2016
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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 Oracle’s products remains at the sole discretion of Oracle.
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Agenda
Go to Market
Quote to Order Process
Resources and Call to Action
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Go To Market
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Go-to-Market Topics
Strategic Context and Purpose of Initiative
Defining Dynamic Hybrid Bundles
Tech and Hardware Partners; Sample Blended Margins
Key Dates and Timelines
Why?
What?
Who?
When?
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Channel • VAD
• VAR
Broad Market • Mid Size
• Small Business
Products • Tech
Software
• Hardware
Cloud • PaaS • IaaS
Focused On Selling Attaching
Unified Solution to address both: Bundle metered Cloud Services with Hardware products to deliver a competitively differentiated solution that drives growth in Cloud footprint with competitive margins on systems
Market Trend:
Global analysts’ forecast across all vendors for growth across Infrastructure and Hardware segments in the channel is flat to declining with challenging margins for partners Channel Trend:
Partners are aggressively looking to expand their Cloud footprint to meet end user demand without abandoning their core business. Oracle’s Tech and Systems partners need a way to utilize their strength and knowledge to transition and succeed in the Cloud.
Addressing Channel Partner’s Concerns
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Dynamic Hybrid Bundles Initiative: Hardware and Metered Cloud Services
Development Environments
Testing Environments
Back Up / Archiving
Integration Services
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Use Cases for Engineered Systems and Cloud Bundles
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Engineered Systems Suggested Cloud Bundle Use Cases – Business Benefits
Exadata Database Machine
Cloud Credits for Testing and
Development
Run test/dev on same exact hardware as
production - CAPEX cost savings and agility
Cloud Credits for Database Backup
Oracle Database Backup/RMAN B/U provides
consistency across platforms – ODBS provides low
cost B/U for customer
Oracle Database Appliance
(ODA)
Cloud Credits for Testing and
Development
Test/Dev with DB as a Svc means no need for on-
prem H/W – Lowered CAPEX/better TCO
Cloud Credits for Database Backup Disaster Recovery w/DB as a Svc provides
cheapest, safest DR – Lower TCO due to no CAPEX
Private Cloud Appliance (PCA) Cloud Credits for Database Backup Burst load with DB as a Svc to add nearly instant
capacity for seasonal, etc., workloads – Meet SLAs
Oracle FS1 Flash Storage System Cloud Credits for Archive as a
Service
Free up flash storage space by storing archive cold
data in the Oracle Cloud
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Bundle Economics – Significant Blended Margin Solution Selling: Engineered Systems qualify for Discounted Metered IaaS/PaaS Cloud Services
Unprecedented Discount for Value Added Resellers • 35% incremental VAR discount off metered Cloud Service to
yield 45% total VAR discount • Discount is for the benefit of the VAR; end customers’ benefit
derived from volume driven burn rate discount • Metered Cloud Services are capped at 20% of net Eligible
Hardware Price and must be lower than US$100K
Hardware • Standard VAD discount
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Dynamic Hybrid Bundles – Reseller View of Profitability
Exadata ASP Standard Margins (un-bundled)
DHB Blended Front End Margin
DHB Blended Profitability (Margin + OPN IP Rebates)
Hardware $380K 1-4% 9-12% 12-14%
Cloud $74K 10%
PCA ASP Standard Margins (un-bundled)
Bundle Blended Margin DHB Blended Profitability (Margin + OPN IP Rebates)
Hardware $303K 1-4% 9-12% 16-18%
Cloud $59K 10%
ODA ASP Standard Margins (un-bundled)
Bundle Blended Margin DHB Blended Profitability (Margin + Rebates)
Hardware $68K 1-4% 9-12% 16-18%
Cloud $13K 10%
* Assumptions: - Average selling prices assumed based on global averages - Margins are approximate and only an illustration; actuals will vary based on VAD pricing to partner
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Criteria for Resale • VADs and VARs must be a qualified and current OPN partner at Gold level
or above and have all legal contracts in place at the time of transaction, specifically;
– Full Use Distribution Agreement (FUDA) or Value Add Distribution Agreement (VADA)
– Cloud Services Distribution Addendum (CSDA) • Access the CSDA through the Oracle Partner Store here:
• http://www.oracle.com/partners/en/partner-with-oracle/cloud-business-builder/refer-resell/resell/index.html
• Partners must meet all resale requirements and be approved for resale for each of the products in the bundle; as specified in the knowledge zones on OPN found here: – http://www.oracle.com/partners/en/products/index.html
• Engineered Systems and FS1 require Sales and PreSales online training
• Oracle Cloud Metered PaaS and IaaS has no online training requirements
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Key Dates and Timelines
Internal Readiness
VAD/VAR Briefings
VAD/VAR Briefing Invites
Pipeline Review & Quoting
March 10, 2016
VAD: March 8, 2016 VAR: March 15, 2016
VADs: March 17, 2016 VARs: March 22, 2016
March 28, 2016
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Quote to Order Process
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• Two separate transactions. One for hardware and one for Cloud services
• No specific discounts on hardware products pre-approved for this initiative
– Standard ADR process to request discount on hardware deal
• Unprecedented pre-approved discount on Eligible Cloud Services
– ADR approval by Channel Manager required to validate Cloud deal eligibility
• Booking of Eligible Hardware Order required for Cloud deal to be eligible for discount
– Contract language added to HW ordering document - right for VAD to place a one-time Eligible Cloud Order at approved discount for same VAR and end customer
– HW order must book prior to submission of ADR for Cloud deal
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Transacting Dynamic Hybrid Bundle Deals
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Eligible Hardware Order Eligible Cloud Order
• Same VAD, VAR and End Customer as HW Order
• Eligible Cloud services only. Metered Cloud Services (PaaS/IaaS)
• Registered and approved under OMM resale initiative
• List price for Eligible Cloud Services must not exceed 20% of net Eligible Hardware Price and must be lower than US$100K
• Must not exceed approved discount
• Must be placed within 30 days of effective date of HW order
• End User Burn Rate Discount Schedule for Oracle PaaS and IaaS must apply
• Transact through VAD
• Registered and approved under OMM resale initiative
• Include Eligible Hardware Products
– Engineered Systems
– FS1 Storage Systems
Dynamic Hybrid Bundles – Eligible Order Criteria
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Quote to Order Guidelines
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• OMM resale deal registrations (hardware and cloud)
• OPS Carts (hardware and cloud)
• NSRs (hardware and cloud)
• Orders
– Hardware order requires ordering document to include one-time right to order metered Cloud Services at approved discount
– Cloud order doesn’t require ordering document provided non-standard terms are not required. Non-standard terms unlikely to be approved
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Quote to Order Process (VAR View)
Creation and submission of OPS
Cart and NSR for HW deal to VAD (VAR)
Submission of OPS Cart and NSR for HW deal to Oracle (VAD)
Validation of eligibility of HW deal (ISS Rep)
Drafting of HW OD (Deal Manager)
Review of HW OD to insure inclusion of
contract option (ISS Rep and VAD)
Submission of HW order to VAD (VAR)
Submission of HW order to Oracle (VAD)
Booking of HW order (GOM)
Creation and submission of OPS
cart and NSR for Cloud deal to VAD (VAR)
Submission of OPS Cart and NSR for
Cloud deal to Oracle (VAD)
DAS Approval process (ISS Rep)
Quoting of approved pricing to VAR (VAD)
Submission of Cloud order to VAD (VAR)
Submission of Cloud order to Oracle (VAD)
Booking of Cloud order (GOM)
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Hardware NSR VAD Guidelines
• OPS - Cart Name field: add “Dynamic Hybrid Bundle”
• NSR Deal Summary section: include the following
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Request: one-time right to place an order with Oracle for prepaid cloud services credits at XX% discount for distribution to the same End Customer within 30 days of the effective date of the Eligible Hardware Order associated with this request. The maximum amount of prepaid cloud services credits to be purchased will not exceed 20% of the net Qualified Systems price of the Eligible Hardware Order associated with this request and will be lower than US$100K. Justification: this hardware deal is registered and approved under the OMM resale initiative with Oppty ID (Note to VAD: ENTER OPPTY ID) and includes the following eligible products for the Dynamic Hybrid Bundle initiative (Note to VAD: LIST ELIGIBLE ENGINEERED SYSTEMS PRODUCTS AND/OR FS1 PRODUCTS IN THIS CART)
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Cloud NSR VAD Guidelines
• OPS Cart Name field: add “Dynamic Hybrid Bundle”
• NSR - Deal Summary section: include the following
• NSR - Deal Summary section: include HW Cart ID
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Request: one-off right to order prepaid cloud services credits per discount approved on order (Note to VAD: ENTER HW ORDER #). Justification: This Cloud order qualifies for the Dynamic Hybrid Bundle initiative: •The VAD, VAR and end customer for this Cloud cart are the same as those in the eligible HW order number (Note to VAD: ENTER ELIGIBLE HW ORDER #). •This Cloud deal has been registered and approved under the OMM resale initiative with Oppty ID (Note to VAD: ENTER OPPTY ID). •The total list amount of metered Cloud Services ordered is (Note to VAD: ENTER TOTAL LIST AMOUNT OF METERED CLOUD SERVICES ORDERED), which doesn’t exceed the approved amount of $(Note to VAD: ENTER THE MAXIMUM AMOUNT OF PREPAID CLOUD SERVICES CREDITS THAT MAY BE PURCHASED PER THE ORDERING DOCUMENT FOR THE ASSOCITED HW ORDER) per the associated HW order number (Note to VAD: ENTER ELIGIBLE HW ORDER #).
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Approval of Cloud DAS Channel Manager Role
• Confirm items validated by ISS rep
1. That the referenced HW order has booked
2. That the VAD, VAR and end customer on the Cloud NSR (for the Cloud deal) are the same as in the referenced Eligible Hardware Order
3. That all Cloud services in the cart are Eligible Cloud Services
4. That the Cloud Oppty ID is valid and active
5. That the discount requested for the Eligible Cloud Services matches the approved VAD discount
• Validate the following:
1. That the total list amount of metered Cloud Services in the cart doesn’t exceed the approved amount per the Ordering Document for the Eligible Hardware Order (ISS will attach HW ordering document to DAS request)
2. That an eligible Cloud deal has not already been placed for the associated HW deal
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Call to Action and Resources • Visit the Dynamic Hybrid Bundles page on OPN and familiarize yourself with the initiative assets
• Work with your Channel team to identify your partner registered open opportunities for Eligible Hardware products to target for Dynamic Hybrid Bundles
Dynamic Hybrid Bundles page on OPN
http://www.oracle.com/partners/en/partner-with-oracle/market-and-sell/dynamic-hybrid-bundles/secure/index.html
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