Value analysis: multi-tier multi-component B2B market offerings

Abstract

Oracle's Unbreakable Linux market offering is delivering a value of one-stop support for both operating system and application software support issues for enterprise customers. This is achieved through close networks with the vendor companies. Some of the key observations drawn from the value analysis of this offering are: Value is being delivered, however, the market offering does not incorporate any value based pricing. The value delivery IS dependent on good working relationships between the channel partners, namely, the vendors and Oracle. Hence, network forms a key component of this market offering. Partnership equations are bound to change in future and this would need redefining the key relationships Based on the observations, some recommendations are: There is a need to measure the actual value benefit of Unbreakable Linux offering. The customers are currently enjoying the cost benefits of moving from other Unix operating systems to Linux. However, the cost savings of moving from Unix to Linux only comprises of inexpensive hardware and relatively inexpensive OS software. The value of Unbreakable Lima support is not incorporated in this savings. The customers could be made aware of the advantages of Unbreakable Linux offering in monetary terms. This in turn would contribute to value-based pricing. There is a constant need to keep the partnerships intact, as the market offering requires smooth co-ordination between various vendors. While the current equation of the relationships may work in favor of Oracle due to its relative market strength, the company may have to always be on the lookout for trends, which might shift this equation.