Oracle Partner Strategy

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Oracle On Demand

• Glenn P. Lim
• Vice President

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Agenda

• Biggest Challenge In IT Today
• What Is The Software Industry Doing About it?
• Oracles Transition To An On Demand Model
• Why ISVs Should Build An On Demand Business
• How To Leverage Oracle On Demand Infrastructure

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What is the biggest challenge in IT today?
Cost to Operate is Removing the Ability to
Innovate
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Corporate IT Budgets Dominated by Managing
Software
83 spent managing existing systems, 17
innovating
Source Gartner IT Spend Survey
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Cost of Managing SAPSoftware

• The management cost for a single SAP concurrent
  user is 16,424 per year (or 1,300 per user
  per month)

Source Gartner 2003
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Cost of Managing Any Software

• Customers can spend up to 4 times the cost of
  their software license per year to own and
  manage their applications

Source Gartner 2003
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What is the Software Industry Doing About This?
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Industry in Transition

• Software as a Service
• No Price Pressure
• Better Service
• Predictable Costs
• More Flexibility
• WebEx
• SalesForce
• NetSuite

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Software On Demand is Real

• We believe that 2004 will be the year the
  software industry will hit a critical inflection
  point and move closer to being consumed as an On
  Demand service.
• Very simply put, software in an On Demand world
  will change the way customers buy, vendors sell
  and investors invest.
• We are launching the Merrill Lynch On-Demand
  Index or MLODI. MLODI is designed to help
  investors to better track, measure, and
  understand the transformation of the software
  industry to an On Demand model.

Jayson Maynard, Merrill Lynch Software Goes On
Demand February 2004
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Oracle On Demand Business Profile

• Oracles fastest growing business, on track to be
  the next billion dollar business
• Investments include multi-million dollar Tier 4
  data center
• 82,000 square feet, fully redundant
  infrastructure, comprehensive security systems
• Serving 250,000 E-Business Suite users
• Customers in over 25 countries
• Managing all Oracle software
• E-Business Suite
• Technology
• Collaboration Suite

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Oracle On Demand

• Named as the Leader in IDCs annual ASP
  Leadership Grid for Second Consecutive Year
• Oracle named as one of the Top 3 vendors (with
  IBM and EDS) customers are looking to today for
  application management and outsourcing
• Oracle named as one of the Top 2 vendors (with
  IBM) to merit future consideration of customers
  for application management and On Demand

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Benefits of Going On Demand

• Recurring revenue stream
• 3 year license equivalent value
• 70 revenue growth over the past year
• High renewal rate
• Better customer service
• 50 faster
• Preventing P1 issues 92 of the time
• More customer references

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Rearchitect the Supply Chain
Traditional
RD
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Technology On Demand
ISV
ISV

• ISVs manage their own apps
• Build incremental revenue streams over multiple
  years

ISV
ISV
App Support Implement App Admin DB/AS
Admin Sys Admin HW Admin
Oracle Availability SecurityPerformance Change
Problems
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Oracle Data Center

• Backup Diesel Generators
• Five 2 MW, expandable to Seven
• Fuel Storage 80,000 Gallons
• Water Storage 50,000 Gallons
• 90 Watts/SF to Raised floor
• Four 600-ton chillers expandable to Six
• Thermal Energy storage system

• Largest installation of Dell computers
• Largest installation of NetApp Storage
• 1.5 Pedabytes
• 42,000 SF raised floor, expandable to 82,000 SF
• 1140 19-inch racks
• Primary Power Supply
• Dual power feeds one active, one standby
• Uninterruptible Power Supply
• Fully redundant, 4.8 MW

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Oracle On Demand Grid
Application

• 1,200 servers
• 300 TB storage
• Automation Platform

OracleTechnology
Linux
ADC
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Get Plugged IntoThe Oracle Grid
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Oracle TechnologyOn Demand

• Pre-staged Oracle infrastructure
• LinTel Grid
• Managed by Oracle
• Availability
• Performance
• Security
• Problem
• Change

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Availability ManagementDisaster Recovery
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Security ManagementSAS 70 Type II

• Independent examination of a service
  organizations control objectives and control
  activities
• Developed by AICPA
• Performed by an independent accounting and
  auditing firm who produces a report on their
  findings
• Type I Report Completed April 2003
• Auditors review and attest to documentation of
  internal controls
• Type II Report Completed January 2004
• auditors review and attest to the actual
  processes and procedures that are in practice

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Leverage Oracle On Demand Infrastructure

• Oracle provides managed infrastructure that ISVs
  can plug into
• Demonstration systems
• Implementation
• Development
• Prototyping
• ISV manages ISV application
• Minimizes time, resources and cost
• Shortens sales cycle, more competitive
• Represents real life availability, performance
• Move customer into production seamlessly
• Just keep it on the Oracle Grid

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Predictable Costs

• Database
• 2,000 per processor per month
• Applications Server
• 1,000 per processor per month
• 6,000 minimum per month
• 1 year agreement, 30 day cancellation

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Case Study - Infopia

• eCommerce solutions for SMB market
• Provider of e-marketing services and solutions
  across multiple online marketing channels for
  consumer-goods retailers and manufacturers
• Integrated web services, inventory management,
  order processing and fulfillment, customer
  management, payment gateways, shipping providers
  and other 3rd party applications for specific
  business functions
• Proprietary Marketplace Manager solution helps
  clients automate and maximize the exposure of
  their products on existing online auctions,
  marketplaces, comparison-shopping sites and
  search engines
• All solutions running on Oracle platform

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On Demand Services Used by Infopia

• Technology On Demand
• Oracle Databases, RAC, Application Servers
• Development, testing and production environments
• Collaboration Suite On Demand
• Files Online
• Email/calendar
• Conferencing for sales, training and tech support

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Why Infopia is Partnering with Oracle On Demand

• Reduction in total cost
• World class data center
• Infrastructure, upgrades and scaling on demand
• Quality improvement
• 24/7 support to assist in managing systems
• Allows Infopia to focus on their core
  competencies
• Ability to use single infrastructure to power an
  ASP model

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"Oracle On Demand gives us peace of mind while
dramatically reducing total cost of ownership.
It allows us to focus our people and financial
resources on building software applications
directly on top of a world class infrastructure.
Bjorn Espenes President CEO Infopia
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Summary

• Leverage Oracle infrastructure
• Predictable cost model
• Disaster Recovery
• SAS 70 Type I and Type II
• Oracle manages Oracle technology
• ISV manage ISV Application
• Build incremental revenues

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Its Not A CD-ROM Anymore
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