Oracle releases pending dealer incentives after six months

Oracle Software India Ltd, through its marketing fulfillment agency--Solutions Integrated--launched a scheme nicknamed, Hi-Flier, in March 2001 which lasted till May end. Under the scheme, the targets were set which at the end of it were suppose to fetch the dealers a free trip to exotic locations like Bangkok, Dubai and Singapore. But as it has been happening to most vendor schemes in past few months, even after six months since the scheme ended, the Oracle dealers have not been taken to any tour (rather they feel they have been taken for a ride). But as per the Oracle officials, they all shall be paid their dues within this week, though not the trip but the cash recompense that totals to the expense of a decent and a comfortable trip.

As DQW News Bureau spoke to Somesh Bhagat, Head (Marketing), Oracle India, regarding the same, he informed that the payments have been dispatched and would reach the dealers any day from now. "As per our information, everybody who qualified for the scheme has been paid in full and final, though there is a possibility that few may not have received their cheques as of now, as they may be in courier. This much I can assure with 100 percent guarantee. Solutions Integrated is no more our marketing agency, but still we have ensured that they have paid all the incentives they promised to our dealers. Still should anybody have any concern or unaddressed issue, they can get back to me anytime, and we promise to resolve them to their satisfaction."

Dealers complained of zero positive replies and unjustified delay in the payments. As per Ashish Aggarwal, Director, Trifin Technologies, "The only way I can describe the working of Oracle in India and especially for this Hi-Flier scheme is--several reminders, many assurances and absolutely no work. The company no doubt is very good as far as the technology and the product portfolio is considered, but then surely, Oracle is definitely not a channel-driven company. Their performance in this regard is quite disappointing. May be we can justify that by saying that Oracle does not inherent the channel characteristics, as it has always been into direct sales and so at channels they are really bad. I am also not willing to believe that they have dispatched the incentive cheques, once they reach me, will I only trust this."

Adding his complaint to the notebook, Alok Gupta, Director, Softmart Solutions, said, "After the scheme got over on May 31, I sent many reminders to people behind the scheme, that included people from Oracle as well as Solutions Integrated. But the response that I received from them was on September 5 when I was given an impression that something is progressing on this front. But actually it is after the six months of the completion of the scheme that we people are actually hopeful of getting our due incentives."

Insiders reveal that the delay was caused due to a misunderstanding between Oracle and Solutions Integrated over some issue. Oracle has also withdrawn its contract from Solutions and Channel Strategy is the new marketing agency for the MNC now.

Apart from this particular scheme, dealers also complained of frequent price fluctuation in Oracle prices. Explained S Pullareddy, MD, SP Software in Hyderabad, "As about the targets, the kind of targets Oracle sets for its dealers, are so difficult to meet, that we have actually stopped vowing for them. So I have no idea about this information of not paying back their dealers. But yes, though SP Software is the biggest dealer for Oracle in Hyderabad, and third largest distribution agent in South India, the kind of price fluctuation that Oracle has, is slowly becoming something very difficult to stand by."

He added, "To quote that with an example, the price of Internet Developer Suite was initially set at Rs 50,000. Then suddenly they raised it to Rs 2 lakh and dealers picked it in good number. And then all of a sudden they crashed the price down to Rs 50,000 and the dealers who bought it at Rs 2 lakh, obviously had to suffer major losses. Similar kind of thing happened for a suite priced at Rs 25,000 and it was once hiked till Rs 50,000 and then crashed back to Rs 25,000. So price fluctuation is something which is regular and very annoying on Oracle's part."