Oracle Dynamic Hybrid Bundles...

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

Oracle Dynamic Hybrid Bundles Initiative VAR BRIEFING

Global Channel Sales March, 2016

CONFIDENTIAL. Access limited to Oracle Employees and Current Members of OPN. Not for general distribution.


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



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?


Copyright © 2016, Oracle and/or its affiliates. All rights reserved. | 6

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



Dynamic Hybrid Bundles Initiative: Hardware and Metered Cloud Services

Development Environments

Testing Environments

Back Up / Archiving

Integration Services



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



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



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



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

11 CONFIDENTIAL. Access limited to Oracle Employees and Current Members of OPN. Not for general distribution.

http://www.oracle.com/partners/en/products/index.html




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



Quote to Order Process



• 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



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



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



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)



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)



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 #).



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



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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