Avnet Technology Solutions (NYSE: AVT) has become the only distributor of Oracle Corp.’s (NASDAQ: ORCL) health sciences solutions in Canada and the U.S., the company announced this week.
“This is Avnet moving into the applications environment,” said Chris Swahn, vice-president and general manager for Avnet’s Oracle Solutions group in the Americas. “This is taking us into the next realm of solutions distribution.”
The distributor will now offer its partners Oracle’s recently upgraded Health Information Exchange (HIE) and Enterprise Healthcare Analytics products. The two communication and business intelligence offerings are particularly useful to healthcare organizations trying to manage growing data and comply with electronic health records requirements and best practices, the companies say.
“You don’t want to enter a marketplace that’s matured or declined, you want to enter at the inertia of the technology ramp,” Swahn said. By capitalizing on an area of healthcare with growing potential, Avnet will increase both its partners’ profitability and their loyalty, he argued.
Related story: Vertical specialization key to success in business analytics
“These were two very, very important elements that will be changing the healthcare space,” Swahn said.
Avnet will later add other solutions from Oracle’s health sciences business to its portfolio. The offerings will become part of Avnet’s HealthPath practice, the healthcare element of its vertically-focused SolutionsPath program.
It currently has seven partners signed on to offer these Oracle solutions, including Ottawa-based Maplesoft Group. That number will likely grow to between 20 and 30 partners. “I’m not going to put a cap on the program,” Swahn said. “We’ll expand when we find the right customers or there’s a need we can fulfill,” while avoiding creating competition and overlap among partners.
Avnet partners will target small and mid-sized healthcare organizations, while Oracle will continue its direct business with large organizations. “It’s very clear in the conversation with Oracle that they see the partner base, the channel, as a huge asset because this opportunity is going to far outgrow their ability to go direct.”
Avnet is now about 90 days into a lead generation campaign for this deal. It has an Exadata appliance with all the middleware and software available to partners for demo purposes, and will also be adding more advanced courses to partners selling the HIE and healthcare analytics offerings.
The companies began talks for this deal nearly two years ago and has been working on the details for the past nine months.
