Beth Brdoerson

1
Oracles Vision for the Future of Enterprise
Applications Guest Lecture to 2nd year,
Enterprise Applications Systems
Subject University of Melbourne 13 October 2004
2

• Peter Stubbings
• Sales Manager Public Sector, Victoria and
  Tasmania
• Jason Leonidas
• Solution Architect - Public Sector, Victoria and
  Tasmania

3
Agenda

• Introductions
• Oracle Corporate Overview (Very brief)
• What is Oracle about ?
• Oracles Solution Suite
• Key Challenges for the CIO
• Major Trends
• Oracle Strategies
• Q A

4
Brief Corporate Overview

• Founded 1977
• Year ended 31 May 2004 - US10Bn Revenue,
  US2.6bn Net Income
• 40,000 Employees Major Development, Support
  and Consulting organisations
• 00,000s Customers using underpinning
  Technology and Business Applications
• 145 countries
• Highly Innovative a technology maker, good at
  picking and exploiting major shifts in the use of
  technology

5
Moments in Oracles History

• 80s / 90s huge sales growth, Oracle doubles
  revenues year after year
• Early 90s Oracle borders on bankruptcyuncontro
  lled growth
• Heritage in RDBMS but 1st major release of
  Oracle ERP in early 90s
• Massive growth in Client Server - ERP market
  place late 90sup to Y2K
• SAP dominates
• right product at the right time, right sales
  methodology, right partners, best footprint
• Other players also enjoy good growth eg JDE,
  PeopleSoft etc
• mid - late 90s Oracle bets the farm and
  completely re writes our technology and
  applications for the internet
• Early 2000s - Oracle is first to release full
  function/full suite of ERP applications and
  technology based on internet technology
• Competitors very late to move some still havent
• 2002 - A truly global organisation eat our own
  dog food
• Post Dot-Com bust (2001) Consolidation of
  Application providers
• September 2004 Oracle gets the OK to proceed
  with PeopleSoft Acquisition

6
What is Oracle About ? Oracles Product Suite
7
Information Access

• Personalized access to information, applications
  and people, in context.
• Unified view of all information.

Information Access
Business Processes
Data Hub
Oracle Information Architecture
8
Information Access Components
9
Business Processes
Integrated business flows and intelligence Increas
e business velocity while reducing compliance and
integration burden
Information Access
Business Processes
Data Hub
Oracle Information Architecture
10
Complete Business Process Automation
Best-in-Class Functionality
Order Management Order Management Configurator iSt
ore TeleSales Receivables Advanced
Pricing Quoting Proposals Trade
Management Release Management Sales
Contracts Supply Chain Planning MRP/Supply Chain
Planning Manufacturing Scheduling Demand
Planning Advanced Supply Planning Constraint
Optimization Global Order Promising Inventory
Optimization Collaborative Planning Transportation
Planning
Procurement Purchasing Payables iProcurement Sourc
ing iSupplier Portal Procurement
Contracts Manufacturing Discrete Manufacturing
- Project Manufacturing - Flow Manufacturing
- Project Contracts - Shop Floor
Management Process Manufacturing Logistics Invent
ory Management Mobile Supply Chain Apps Warehouse
Management Transportation Execution
Service TeleService Depot Repair Field Service
- Spares Management - Advanced Scheduler -
Mobile Field Service iSupport Service
Contracts Maintenance Mgmt Enterprise Asset
Mgmt Property Manager Product Lifecycle
Mgmt Advanced Product Catalog CADView-3D Project
Mgmt / Collab. Suite Supply Chain
Intelligence Supply Chain Intelligence
11
Complete Business Process Automation
Best-in-Class Functionality
Finance General Ledger Payables Receivables Cash
Management Assets iPayment Internet
Expenses iReceivables Balanced Scorecard Activity
Based Management Financial Sales
Analyzers Credit Management Property
Manager Advanced Collections Treasury Lease
Management Customers Online Data
Librarian Customer Data Model Financials
Intelligence Enterprise Planning
Budgeting iAssets Internal Controls Manager
Human Resources Human Resources Payroll
Self-Service HR Training Administration Advanced
Benefits Time Labor iLearning iRecruitment HR
Intelligence
Marketing Sales Marketing Incentive
Compensation iStore Trade Management Partner
Manager Proposals TeleSales Advanced
Pricing Field Sales Sales Offline Quoting Cont
racts for Sales
Projects Project Costing Project Billing Project
Management Project Collaboration Project Resource
Mgmt Project Contracts Project Intelligence
Interaction Center Advanced Inbound Advanced
Outbound Scripting eMail Center Survey
12
Data Hub

• Create standard business definitions customers,
  products, employees for all applications.
• Acts as single source
• of truth.

Information Access
Business Processes
Data Hub
Oracle Information Architecture
13
Single Customer View with Oracle Customer Data
Hub

• Master customer definition
• Centralized and configurable
• Search, create, update
• Fast synchronization
• Batch near real-time
• Embedded data cleansing
• Identification and merge
• Enterprise-wide viewer
• All transactions
• Any source system

CustomerData Hub
SAP Siebel PeopleSoft Microsoft
Industry Partners
Legacy Custom
14
Grid Infrastructure
Coordinated use of many small servers acting as
one large computer.
Information Access
Business Processes
Data Hub
Power on demand. Reliable. Secure.
Grid Infrastructure/Database
Oracle Information Architecture
15
Grid Infrastructure Components
16
Key Challenges for the CIO
High Cost of ownership, Fragmented systems, Very
High Integration costs
Easily develop your applications and integrate
with existing applications using consistent
architecture
Provide satisfying service level to end
users (high performance, high availability)
Achieve fast and accurate global data processing
17
Fragmented Systems a Real example
18
Major Trends

• Ever expanding Solution footprint
• Increasing Vertical Market specialisation
• Standards-based integration
• Software as a Service
• Push towards SME market with pre- configured
  offerings, Rapid Implementations
• Consolidation of Vendors

19
(No Transcript)
20
1. Expand the solution footprint

• Develop the solution footprint
• Pure Oracle development
• Customer Advisory Boards
• Market Pressure/Market requirements
• Buy back Customer Customisations, embed in core
  product
• Acquisition
• Integrate to the 3rd Party
• And - or - then
• Rebuild/redevelop in Oracle, embed in core product

21
Eliminate Integration ButYou Have to Spend Less
Oracle E-Business Suite
Typical Environments Today
Marketing Sales
Projects
Finance
HR
Maintain
Develop
Service
Global Enterprise Information
Orders SupplyChain
Service Contracts
Market
Fulfill
Sell
Make
Order
Procure
Plan
Financials HR
One Architected Suite
Many Interface Points to Maintain
22
2. Vertical Market Specialisation to Meet
Industry Requirements

• Healthcare
• High Technology
• Higher Education
• Industrial Manufacturing
• Life Sciences
• Professional Services
• Retail
• Travel Transportation
• Utilities

• Aerospace Defense
• Automotive
• Chemicals
• CPG/Consumer
• Communications
• Energy
• Engineering Construction
• Financial Services
• Government

23
3. Open to Non-Oracle Systems

• Integrate with other applications services
• Oracle delivers standards-based integration

24
Oracles Web Services Strategy

• Offer a Comprehensive Solution
• Tools, Application Server, Business Applications
• Development Tools Framework
• To Develop and Enable SOA
• Application Server
• To Deploy, Integrate, Manage SOA
• Business Applications
• To Enable as SOA

25
Service Oriented Architecture Defined
Service Oriented Architecture is an
architectural style whose goal is to achieve
loose coupling among interacting software agents.
A service is a unit of work done by a service
provider to achieve desired end results for a
service consumer. Dr. Hao He, W3C Web Services
Architecture Working Group
26
Web Services are a SOA Enabler
WSDL
Points to description
UDDI Registry
Points to service
Finds Service
Describes Service
Web Service (J2EE, PL/SQL,.NET,C/C,Legacy )
Web Service Client (J2EE, .NET,PL/SQL )
SOAP
Invokes with XML Messages
27
Oracles Commitment to Web Service Infrastructure

• Dec 2000
• Web Services Runtime (Dynamic Services)
• Jun 2001
• SOAP and WSDL conformance (Oracle9iAS R1)
• May 2002
• Platform Web services (Oracle9iAS R2)
• September 2002
• Oracle9iAS 9.0.3 with extended J2EE Web services

• Jan 2003
• OmniPortlet for Web service composition
• Jun 2003
• Reference implementation for WSRP
• Aug 2003
• J2EE 1.4 Web Services Preview
• Dec 2003
• OracleAS 10g Process integration with Web
  services

28
4. Software as a Service
IDC reports thatworldwide spending onIT
services totaled 346 billion in 2001 and
forecasts that it will increase to 572 billion
by 2006, a compound annual growth rate (CAGR) of
10.6. IS outsourcing will surpass systems
integration (SI) as the single largest IT
services market in 2003. While much of this
change can be attributed to the dearth of new
technologies, this shift also underscores an
important shift in how enterprises are
provisioning IT.
29
Delivery modes
IT Service Offerings
Solution Offerings
Strategic Outsourcing
Products

• Outsourcing

• Best Practices

• Infrastructure Facilities

• Product

• Infrastructure management outsourcing
• Printing Services
• Business Processes
• Licence usage
• Application management services

• Infrastructure Management Services
• Printing services
• licence usage

• Application Solution
• Management Software
• Computing facilities
• Disaster recovery

• Licence

30
Oracles On Demand Options
Someone else does it
You do it
IT Outsourcer
Applications Sale License Product
Support Application Dbase Mngt OS Hosting
Management Network eBiz CC HW
Procurement Application Implementation
31
5 Pre-Configured for the Mid-Market

• Start simply and build a foundation for growth
• Fixed scope, affordably priced
• Rapid implementation usually under 30 days

Financial Management
Inventory Management
Purchasing Management
Sales Order Management
32
6 - Vendor Consolidation

• Hardware Industry (Mainframe, Mid range and
  Servers)
• 10 years ago say 10 major global suppliers
• 4 years ago say 5 major global suppliers
• Today
• IBM
• HP Compaq
• Sun
• Dell
• What next ?
• Software Industry
• Fall out from Dot com bust
• 300 mergers/acquisitions in 2003, in Europe and
  USA
• Niche players what was a product and a
  business is now a feature
• 2003 PeopleSoft merges with JDE
• September 2004 Oracle gets the OK to proceed
  with PeopleSoft Acquisition
• Middle tier vendors exposed ?

33
Fifty Percent of Software Vendors will be gone by
2004
2000
2000
Innovators ofInternet BoomBurn Themselves and
VC Cash
Big brand stacks slow down their innovation
products mature
2004
2004
Oligopoly of Few Vendors
Most surviving small firms just complement the
big brand stacks
2007
2007
Return of Innovation,New Entrants, and Big VC
Cash
2010
2010
Source Gartner
34
Renewed Battle for Software Infrastructure Control
?
Packaged Applications
Packaged Applications
Packaged Applications
Packaged Applications
Packaged Applications
Packaged Applications
Development Platform
Development Platform
Development Platform
Development Platform
Development Platform
Development Platform
- - - - 2006 - - - -
APS
APS
APS
APS
APS
APS
DBMS
DBMS
DBMS
DBMS
DBMS
DBMS
- - - - 2006 - - - -
- - - - 2004 - - - -
File System
OS/File System
OS/File System
OS/File System
File System
OS/File System
OS
OS
Network
Network
Network
Network
Network
Network
Hardware
Hardware
Hardware
Hardware
Hardware
Hardware
Open Source Technology
IBMs Technology Stack
Microsofts Technology Stack
SAPs Technology Stack
Siebels Technology Stack
Oracles Technology Stack
Source Gartner Symposium November 2003
35
Questions and Answers