Oracle China is planning to enter second-class markets in 26 cities in China's mainland and enlist more local partners to support the needs of mid-market organizations across key industries in the country.

Under the initial phase of its mid-market initiative, Oracle China plans to reach 11 cities, primarily within the provincial capitals, including Nanjing, Hangzhou, Xiamen and Fuzhou in East China, Shenyang and Ji'nan in North China, Xi'an, Urumqi and Chongqing in West China and Zhengzhou and Wuhan in Central China.

With populations ranging from 2 million to 30 million, they are among the fastest growing cities in China, with GDP growths of 12 percent to 16 percent in 2004, well above China's 9.5 percent national GDP growth in 2004.

According to a 2005 status report by the State Development and Planning Commission on small- and medium-sized businesses (SMB), China's SMBs hire 75 percent of the country's total workforce cities and towns and contribute over 50 percent of the national GDP.

"Our mid-market business has been one of the key drivers for Oracle's overall business growth in China," said Roger Li, Managing Director, Oracle North China. "Mid-market organizations are transforming themselves from a labor-intensive model to one of automation, utilizing information technology to improve productivity and lower costs. Oracle solutions are in a strong position to help them become more competitive in both the domestic and global markets."

Oracle's goal is to establish presence in 15 more second- tier cities across China in 2006. Oracle China currently operates out of four offices: Beijing, Shanghai, Guangzhou and Chengdu. Oracle also has two development centers, in Beijing and Shenzhen.

"Our second-tier city expansion plan is a concrete action taken by Oracle to respond to the Chinese government's effort to 'develop the western region, revitalize the central region and empower the northeastern industrial base using IT technology," said Li. "Putting our investment in second-tier cities, we are also helping accelerate the local software industry, which will ultimately promote the development of the local economy."

In its nearly 16 years of history in China, Oracle has conducted more than 90 percent of its business through partners. As another key part of the new mid-market initiative, Oracle will establish partnerships in second-tier cities with leading independent software vendors (ISVs) that have strong capabilities to expand geographic coverage and penetrate vertical industries.

Oracle will work with current key partners such as Digital China in its mid-market initiative, including identifying and recruiting local ISVs. Equipped with the world-leading development tools from Oracle as well as technical know-how, appointed ISVs will build tailored SMB solutions on top of the powerful Oracle technology platform.

"ISVs are a critical part of Oracle's business ecosystem. By partnering with Oracle, they can enjoy the benefit of learning the latest technologies and best practices, while lowering development costs," said Lee Thompson, Senior Director, Mid-Market Technology Business, Oracle Asia Pacific.

China is one of the fastest growing markets for Oracle today. Globally, China climbed to 6th position in new license revenues in FY2005 ended May 31, 2005, up from 10th three years before. In Asia Pacific, excluding Japan, Oracle China toped the region in terms of new license revenues in FY2005. From www.ccidnet.com, Page 1, Tuesday, March 14, 2006 info@SinoCast.com