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The emergence of born-in-the-cloud resellers has posed some problems for vendors with established channel programmes that do not have the capacity to cater for the start-ups.
In a traditional gold, silver and bronze model some of the born-in-the-cloud might look like sub bronze based on staff size and revenues but might well be the future top-tier partners in the years to come.
Responding to some of the changes in the market is one of the main priorities of Oracle's recently appointed head of alliances and channels for UK and Ireland Simon Hill.
Hill has been in the post since the start of September and inherits an 800 strong partner base that is increasingly moving towards the cloud.
Those numbers continue to grow with the vendor keen to work with the next generation of channel specialists to make sure it has a fresh wave of talent taking its products out to the SME market.
Hill said that the messaging coming out of Oracle had moved much more around the cloud and it had taken steps, including handing the license annuity process to the partner, to make sure it was working for the channel.
"The corporate strategy is around integrated cloud and converged systems around the digital transformation," he said.
"We are looking to work with more partners that can go on this digital and cloud journey," he added "We are actively recruiting new paretners, those that are born-in-the-cloud, and we are very keen to attract these partners."
He said that it had asked its distribution partners to react to the changes in the market and help it reach partners that it had previously not had a relationship with.
To make it easier for born-in-the-cloud firms to find a home with Oracle the vendor has created specific accreditation's for those with the right cloud skills.
"There are lots of things we are doing on the Oracle Partner Network. If you just looked at what is happening with cloud then we have all of the specialisations,"he said.
Aside from channel expansion the other challenge for Hill is working with existing partners to widen the customer base in the small and medium segments. Traditionally the focus has been on the larger enterprises but with cloud providing smaller firms the chance to use technology that might have been previously too price prohibitive that is changing.
"We have created a different model to build out this volume business ton make sure we reach the smaller and medium businesses," said Hill.
Heading into next year the expectation is that the momentum around cloud will continue as will the efforts to reach out to SMEs and bring more emerging channel players onboard.