Oracle Strengthens Mid-Market Initiative in China
Expansion to 26 tier-2 cities, more local partners, and availability of affordable product offerings that range from free to enterprise-class are key components
BEIJING, China 09-MAR-2006 Oracle China (registered as Beijing Oracle Software Systems Co., Ltd.) today announced plans to build a footprint into 26 tier-2 cities and recruit more partners to support the needs of mid-market organizations across key industries in China.
Under the initial phase of its mid-market initiative, Oracle China plans to reach 11 cities, primarily within the provincial capitals. They are Nanjing, Hangzhou, Xiamen and Fuzhou in East China, Shenyang and Ji’nan in North China, Xi’an, Urumqi and Chongqing in West China and Zhengzhou and Wuhanin Central China. With populations ranging from 2 million to 30 million, they are among the fastest growing cities in China, enjoying GDP growths of 12% to 16% in 2004, well above China’s 9.5% national GDP growth in 2004.
According to a 2005 status report by the State Development and Planning Commission on small- and medium-sized businesses (SMB), China’s SMBs hire 75% of the country’s total workforce cities and towns and contribute over 50% of the national GDP.
“Our mid-market business has been one of the key drivers for Oracle’s overall business growth in China,” said Roger Li, Managing Director, Oracle North China. “Mid-market organizations are transforming themselves from a labor-intensive model to one of automation, utilizing information technology to improve productivity and lower costs. Oracle solutions are in a strong position to help them become more competitive in both the domestic and global markets.”
Oracle’s goal is to establish presence in 15 more tier-2 cities across China in 2006. Oracle China currently operates out of four offices: Beijing, Shanghai, Guangzhou and Chengdu. Oracle also has two development centres, in Beijing and Shenzhen.
“Our tier-2 city expansion plan is a concrete action taken by Oracle to respond to the Chinese government’s effort to ’develop the western region, revitalize the central region and empower the northeastern industrial base using IT technology,” said Li. “Putting our investment in tier-2 cities, we are also helping accelerate the local software industry, which will ultimately promote the development of the local economy.”
Partner Network to Broaden and Deepen Oracle Capabilities
In its nearly 16 years of history in China, Oracle has conducted more than 90% of its business through partners. As another key part of the new mid-market initiative, Oracle will establish partnerships in tier-2 cities with leading independent software vendors (ISVs) that have strong capabilities to expand geographic coverage and penetrate vertical industries. Oracle will work with current key partners such as Digital China in its mid-market initiative, including identifying and recruiting local ISVs. Equipped with the world-leading development tools from Oracle as well as technical know-how, appointed ISVs will build tailored SMB solutions on top of the powerful Oracle technology platform.
“ISVs are a critical part of Oracle’s business ecosystem. By partnering with Oracle, they can enjoy the benefit of learning the latest technologies and best practices, while lowering development costs,” said Lee Thompson, Senior Director, Mid-Market Technology Business, Oracle Asia Pacific.
Oracle solutions for organizations of all sizes, needs, requirements
Oracle has the most comprehensive menu of products and services for organizations of all sizes, needs, and requirements. Oracle offers four database versions, which range from its free version, Oracle Database 10g Express Edition, all the way up to its enterprise edition, Oracle Database 10g Enterprise Edition. Its business applications solutions give customers an unequalled level of choice in the market, and include the Oracle E-Business Suite, JD Edwards, PeopleSoft and Siebel product lines.
For small-to-midsize businesses, Oracle offers a series of lower-priced database and middleware products, including Oracle Database 10g Standard Edition One, Oracle Application Server 10g Standard Edition One, Oracle Database 10g Standard Edition, and Oracle Application Server 10g Standard Edition. These products are not only easy to install, use and manage, but also have enterprise-class functionality, security and scalability.
Oracle Database 10g Standard Edition and Standard Edition One are full-featured databases for small-to-midsize businesses that require the performance, availability, and security of the world’s No.1 database at a lower cost. Oracle Application Server 10g Standard Edition and Standard Edition One are the first application servers designed for grid computing and provide the foundation for adapting existing applications to a service-oriented architecture, making software assets more flexible in a shifting marketplace.
“Tier-2 cities in China will have an unprecedented level of choice in enterprise software, which is critical to its emerging companies,” said Thompson. "We plan to work with companies in China’s tier-2 cities, but now feel it necessary to provide them on-the-ground support from Oracle and its partners. We strongly believe that these emerging companies will form the backbone of China’s future economic growth and as such will need world-class support and services to manage their business and IT infrastructure.
“Oracle’s Lifetime Support Policy is an example of how customers not only have the best products to run their business, they also enjoy unrivalled product support and rights to future releases to evolve their systems and stay competitive in this dynamic marketplace,” Thompson added. Oracle’s Lifetime Support Policy can be found at www.oracle.com/support/premier/lifetime-support-policy.html
Technology Forums to Help SMBs Better understand IT’s role in Helping Business
Addressing the pressing need of China’s SMBs to understand and appreciate the importance of information technology in their business, Oracle China today rolled out the first series of technology forums to discuss what bottlenecks China’s SMBs face as they grow and how Oracle’s superior solutions can help remove the bottlenecks. The forums will be held in 11 tier-2 cities from March to May 2006 in cooperation with partners, covering Nanjing, Xi’an, Hangzhou, Fuzhou, Ji’nan, Wuhan, Chongqing, Shenyang, Zhengzhou, Urumqi and Xiamen. More forums are planned in 15 other cities by the end of the year.
China is one of the fastest growing markets for Oracle today. Globally, China climbed to 6th position in new license revenues in FY2005 ended May 31, 2005, up from 10th three years before. In Asia Pacific, excluding Japan, Oracle China toped the region in terms of new license revenues in FY2005.
Key SMB customers for Oracle China include: Shandong Provincial Hospital, Shangdong Aishuren Audio, Video and Book Distribution Company (CNASR), Xiamen City Commercial Bank, Xiaolanzhen Township Information Center, Hangzhou City Information Office, People’s Procuratorate of Hangzhou, Sha’anxi Gear Factory, Xi’an Aero Engine (Group) Ltd., Nanjing Normal University, and Changjiang Waterway Bureau Nanjing Branch.
“We are confident that by executing this initiative, we will enhance our leadership in the mid-market in China,” Thompson said.
Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
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