Siebel is trumpeting the growth of its SMB partner channel and has signed up 91 partners since launching its SMB initiative in December 2004. It has signed up 56 channel partners and 35 technology alliance partners across three regions with a particular focus on Europe where it signed up 36 channel partners, plus 12 in North America, and eight in Latin America. These partners sell Siebel’s SMB-oriented packaged and on-demand CRM systems, and have helped the company rack up a total of 1,800 SMB customers worldwide.
Although Siebel said it expects to exceed its partner target for 2005, it has a long way to go to catch up with SAP whose SMB strategy is also partner-based and has a 1,300-strong channel. The channel is a critical component in vendors’ SMB strategies because it provides the only feasible way to reach the millions of SMB prospects.
A key difference between their approaches is that where Siebel has started building channel-friendly features into its software, including branding features in Release 9 and additional planned customization functionality, SAP is more focused on using its channel to add vertical functionality, and about 1,000 micro-vertical solutions are available. Both are trying to build a network that provides local reach.
Oracle Corp is also partner-centric where SMBs are concerned. It is looking for local reach but is also employing other go-to-market strategies. Its latest initiative is to offer an SMB portal. The SMB Network acts as a showcase for products from Oracle and its community of ISVs and resellers aimed at SMBs. Enrolled SMBs can carry out online searches across the whole community to identify the right product.
This approach could be particularly valuable when looking for specific vertical market solutions that are often provided by small partners with limited reach and market presence. The online search function effectively introduces a new distribution channel. As part of the initiative, Oracle funds print and online advertising and carries out telemarketing on behalf of the partner solutions featured in campaigns.
The Oracle SME Network has been piloted in France, Germany, and the UK over the past three months, and is now available in 17 European countries, in five languages. During the pilot, over 5,000 SMEs enrolled, and more than 1,000 ISVs are promoting their solutions through the SME Network.
