Nextgen distribution is generating significant new revenue through a joint venture partnership with Navicle which helps resellers structure the best deal around Oracle licensing.
The Oracle Licensing Optimisation Centre, which was launched last month, helps resellers structure large, complex deals.
It also provides consultation to help maximise margins and revenue around Oracle licensing, while also providing expert advice around audit, compliance and enablement.
Nextgen general manager Scott Caulfield told ARN it had already contributed 15 per cent to the company's overall revenue in its first full month.
"We have partnered with a business called Navicle," he said.
"The founders are two ex-senior guys from Oracle who have a deep understanding of the back end of the Oracle business.
He said Navicle stood for navigating Oracle.
"It's an incredibly large piece of the market, and Navicle brings deep understanding of the Oracle business on the compliance side, and they have done over 400 license audits," he said.
"What we bring to the table is the strong presales."
"We have a great ability help resellers connect to the right people, especially with some of these transactions, and the whole thing about this service is its targeted at the enterprise who are dealing with these big complex deals."
Caulfield said the concept came about after working on a big deal with Navicle worth several million dollars.
"We were working on a very large, complex deal, and after getting the original bill of materials, we reworked it a few times and the it changed the terms of the pricing, the margins and the opportunity put on the table," he said.
"We really came to the conclusion that there was really a need in the market to build some processes and some IP around how to structure these big deals and that's really how the whole concept came up."
Caulfield said OLOC was a proven process designed to protect margins.
"As we know with these big complex deals, as you get to the pointy end, a lot of pressure gets put on the price and it's very easy to squeeze both distribution and the partner and basically the value goes out of the deal," he said.
"So, the introduction of proven and proprietary negotiation processes is a very key part of the value add we bring to the table.
"It's an enablement service, it's a compliance service and it's consulting service."
Caulfield said interest for the service in the channel was strong.
"We have got a big pipeline, lots of interest," he said.
"There's a range of resellers that are taking to it, there's resellers who have traditionally been big infrastructure resellers and there's no secret that's a challenging part of the market," he said.
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