Oracle plans to revamp its software licensing and pricing policy over the next 18 months in an attempt to make it quicker and easier to do business with it.
The move is part of the supplier's attempt to move to an ebusiness model of operating, which Larry Ellison, chairman and chief executive, hopes will strip $1 billion in costs out of the organisation.
As a result, rather than writing individual licensing agreements for each customer as is the case now, Oracle will encourage them to sign up to a socalled shrinkwrapped licence on its Web site and will standardise its pricing model across the board.
Mark Jarvis, Oracle's senior vice president of worldwide marketing, said: "Customers said it was hard to do business with Oracle and they had to go through a lot of negotiation due to licensing and pricing. We've been working on it now for nine months, but we'll continue looking at it for another 18 months with the aim of making it easier for the customer to buy."
He continued: "There are lots of ways of looking at price. If we give customers a 75 per cent discount now, why not just charge them the 25 per cent to begin with? This isn't giving price cuts - it's about how to make it easier for the customer. But we'll continue to change the pricing policy and we're looking at it all the time."
"The goal is to push more volume through the Oracle Store Web site by shutting down other ways of doing business. We currently sell between 10 and 15 per cent of our licences that way, but the goal is to sell up to 80 per cent by the end of this fiscal year," he added.
As a result, the role of sales staff will change, with the focus being less on closing deals, and more on building relationships with accounts, educating them on new products and providing integration and support services.
Actual order taking, in future, will be either done by the sales staff themselves or by customers using the Oracle Web site. "It will be done by whoever can fill in the form. The goal is to take the complexity out of the sale," Jarvis claimed.
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