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  1. 1. Strategic Alliances –Strategic Alliances Sequent & Oracle
  2. 2. SequentSequent Our Business is Your Success Copyright © 2004 - 2010 Cendix Page 2
  3. 3. Sequent History Timeline & Milestones Sequent started 100 GB Oracle RDBMS - Sequent: 136 - HP: 7 Balance (NS 320xx) Symmetry (Intel x86) Symmetry 2000 - Sun: 2 y y ptx/Cluster Symmetry 5000 NUMA-Q (STiNG)U Q (S G) IBM 1983 1985 1987 1989 1991 19951993 1997 1999 Copyright © 2004 - 2010 Cendix Page 3
  4. 4. Oracle Program (1995) Sequent/Oracle Relationship Program Sequent/Oracle Leverage Revenue Relationship Management sqnt: $300m (75%) oracle: $57m (3%) Oracle the Sequent Customer sqnt: $5m (1%) $300m leverage Oracle Sequent the Oracle $300m leverage oracle: $57m leverage Oracle Applications Customer sqnt: $30m (7.5%) oracle: $15m (1%) sqnt: $30m leverage oracle: $0 (0%) $15m leverage Copyright © 2004 - 2010 Cendix Page 4 g
  5. 5. Strategic Alliances Multi-Layer Partnership Model Public Relations Copyright © 2004 - 2010 Cendix Page 5
  6. 6. Strategic Alliances Multi-Layer Partnership Model Sales & Marketing Copyright © 2004 - 2010 Cendix Page 6
  7. 7. Strategic Alliances Multi-Layer Partnership Model Product Development Copyright © 2004 - 2010 Cendix Page 7
  8. 8. Strategic Alliances Multi-Layer Partnership Model Reciprocal Customers Copyright © 2004 - 2010 Cendix Page 8
  9. 9. Strategic Alliances Multi-Layer Partnership Model Strategic Alignment The Core Copyright © 2004 - 2010 Cendix Page 9
  10. 10. Strategic Alliances Sequent/Oracle Relationship Public Relations - Periodic press releases Reciprocal Customers - Oracle ran their business on SequentPeriodic press releases - Publish benchmark results - Publish strategic customer wins Sales & Marketing Oracle ran their business on Sequent - Oracle developed core software on Sequent - Sequent ran most benchmarks on Oracle - Sequent largest Oracle App’s site g - Joint training & team building - Joint product collateral - Success stories - Bundled product offers Strategic Alignment - Regular executive briefings - Joint strategic initiatives (VoD, TB+ DB, …) Executive outings & customer callsp - Reciprocal customer visits Product Development - Hardware specific development to increase Oracle performance (e.g. PQO) - Executive outings & customer calls - Joint demo’s & benchmarks a d a e spec c de e op e t to c ease O ac e pe o a ce (e g QO) - Sequent Engineers on-site in the Oracle core development group - Specific project groups for strategic initiatives and benchmarks - Oracle released first on Sequent (reference platform) - Sequent Engineers on-site in the porting group Copyright © 2004 - 2010 Cendix Page 10 q g p g g p - $10M+ Sequent owned hardware on-site
  11. 11. Market Forces Cost/Value Natural Selection Model $$$ competitive pressure: IBM Stratus U i Cost of Solution $$ competitive pressure: volumes drive down unit R&D cost Unisys Sequent Solution $ Dell Compaq Sun HP Value (Completeness) 0 Dell Copyright © 2004 - 2010 Cendix Page 11 ( p )
  12. 12. Applied Business Strategy Lessons Learned • Strategic Alliances can be a Competitive Advantage • Returns Require Investment (time/resources) • Strategic Alliances are not Created Equal • Create a portfolio of partners • Group based on strategic importance • Set investment level based on importance• Set investment level based on importance • Retain Holistic Market View • Natural selection can be your friend• Natural selection can be your friend • Natural selection can be your end • Don’t become an entree Copyright © 2004 - 2010 Cendix Page 12

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