Cloud program-for-partners

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

JD EdwardsSummit

Cloud Model ChoicePrivate, Hybrid, and Lesser-Known Models for Partners

Lee BankSenior Director of Alliances & ChannelsOracle FinancingJanuary 2015

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. 2

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Creating Competitive Advantage

• Give partners the option to provide perpetual license rights at the end of the service term• Drop software input costs to $0 for customer renewal terms• Allow customers to leverage existing software licensing and hardware

investments• Recover implementation costs upfront even when customer payment is

spread over the solution term

Cloud Model Choice for Partners


Program Agenda

Partner Choice

Any Cloud

Understanding and Benefiting from Component Break-up

Tradeoffs and Considerations for Each Model

Next Steps

1

2

3

4

5


Cloud Model Partner Choice

1) Oracle Public Cloud– SaaS applications (CRM, HCM, ERP… Taleo, Endeca, Eloqua, Responsys)– IaaS, PaaS, XaaS

2) “Synthetic SaaS” Model– Bring Your Own License (BYOL)– Portable SaaS

3) “SI’s Proprietary Solution” Model4) Business Process Services (BPS)

Public Cloud, Private Cloud, Hybrid and Lesser-Known Models


What Qualifies as a “Cloud” Solution?

?

Cloud / SaaS Solution Model

Off-Premise, Hosted

No IT or Data Center Resources Required

Seamless Bug Fixes and Upgrades

Fixed Term (with Termination Fee)

Monthly (or Periodic) Payments

No Ownership / No Capital Expense

(Services / OpEx Accounting Treatment)



Inside the Cloud “Black Box”

Off-Premise, Hosted








Implementation / Services

Support & Upgrades

Hardware

Data Center & Managed SvsDatabase

MiddlewareApplications

Software

Operating System


Support & Upgrades

Hardware



Software

Operating System

Traditional On-PremiseSolution Model

• All or only some “layers”• One-to-Many or One-to-One

(ISV or SI)• Single or Multiple Vendors


Decoupling Cloud Solution Components

Off-Premise, Hosted







Cloud / SaaS Decoupled Illustration


Support & Upgrades

Hardware



Software

Operating System


Support & Upgrades

Hardware



Software

Operating System

• All or only some “layers”• One-to-Many or One-to-One

(ISV or SI)• Single or Multiple Vendors


Contracting / Structuring Options by Component

• Traditional T&M or Fixed; billed as delivered• Incurred by partner “upfront,” but recovered over solution term

Cloud / SaaS Decoupled Acquisition / Contracting OptionsImplementation / Services

Support & Upgrades

Hardware

Data Center & Managed Svs

DatabaseMiddlewareApplications

Software

Operating System

• Direct with Oracle• Co-sell, Re-sell, or Pass-thru with Partner• Previous licensing transaction• ULA in midterm

• Proprietary, Private Label, Re-sell or Reference (Partner’s Partner)• Third-Party



1) Oracle Public Cloud– SaaS applications (CRM, HCM, ERP… Taleo, Endeca, Eloqua, Responsys)– IaaS, PaaS, XaaS

2) “Synthetic SaaS” Model– Bring Your Own License (BYOL)– Portable SaaS

3) “SI’s Proprietary Solution” Model4) Business Process Services (BPS)

Public Cloud, Private Cloud, Hybrid and Lessor-Known Models

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.


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Public Cloud, Private Cloud, Hybrid and Lessor-Known Models

Model Name (licensing model) Licensee (on Oracle Order) Price List / Products

1. Public Cloud Applications/Subscriptions (SaaS/subscription only, no perpetual rights)

End-customer only (direct, resell to be introduced, referral) Cloud only

2. “Synthetic SaaS” (subscription-structure option with perpetual rights) End-customer (direct, resell/co-sell) All Oracle Apps/Tech

3. “SI’s Proprietary Cloud Solution” (subscription-structure option with perpetual rights)

Partner (direct or resell from VAD and/or VAR) All Oracle Apps/Tech

4. BPS (Subscription only, no perpetual rights) Partner only Most all Oracle Apps*

2,3Operating or expense structure options 3Can include all software, hardware, partner services

$$$


Tradeoffs & Considerations

+ -“Synthetic SaaS”

• Any contract term (12-60 mos)• Customer (not partner) has all payment

risk• Allows for operating or capital expense

accounting treatment• Customer builds equity towards

perpetual license purchase option• No contractual obligation for partner to

provide or define “BPO Services”• Easy to include partner’s

implementation or other services• Customer can change hosting vendor or

take solution in-house (at end of term)

• Vendor contracts / pricing is exposed to customer

• Best only for IT-savvy customers• Least repeatable model



+ -SI’s Proprietary Cloud Solution

• Partner can offer any pricing / structure / terms

• Partner receives end-of-term purchase option (large profit upside with customer)

• Flexible terms for transfer of perpetual software license to customer (if desired)

• Reallocation of tech hosting licenses to a different customer (but not Apps licenses)

• Highly repeatable model

• Partner owns all payment risk• Difficult to include implementation

services



+ -BPS (Oracle Business Process Services Resell)

• Easy – standard price list• Pretty packaging (opaque pricing)• Operating expense payment match

revenue cash flows

• Smaller margin• Partner owns payment risk (except in

the case of customer bankruptcy)• BPO agreement required; Partner must

meet BPO Go-to-Market Program requirements and demonstrate BPO expertise and ability

• No ownership option; no equity / credit created towards purchase


Next Steps

• Schedule a Partner Cloud Models Workshop–Workshop/deep-dive into model tradeoffs and considerations– Customize the discussion to your and your customers’ requirements (one-to-one)

• It’s your choice– Don’t believe “That product/functionality isn’t offered as a SaaS/Cloud solution”– Use choice and flexibility to create competitive, economic or GTM advantage

• Contact info:– [email protected]– 305.531.8022


Data & Analytics

Cloud program-for-partners