Oracle’s Application Strategy Charles Courquin Senior Director Application Solutions Delivering Business Value, Continuity, and Choice

Safe Harbor Statement Per Sarbanes-Oxley Sec. 404, the following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Oracle Corporation – The Stats Largest Enterprise Software Vendor $11.8 Billion Revenue, FY05 275,000 Customers 56,000 Employees Operating in 145 Countries 230,000 Database Customers #1 Database Market Share #1 Market Share on Linux 26,000 Apps Customers #1 in North America #1 in HRMS globally #1 in SCM globally #1 in CRM globally

CIO Advisory Board Customer Surveys Customer Care Services User Groups CAB’s Fusion Strategy Council Customer Events Oracle Partner Network Executive Sponsors Product Quality & Roadmap Cost & Maintenance Relationship Management Talk, Listen, and Work with Customers and Partners Oracle’s Approach

PROTECT Your Existing Investment EXTEND the Value of Your Applications EVOLVE You to the Next-Generation Oracle Applications Strategy Simply Put …

Protect.

You Have A Significant Investment In Your IT Systems Your Investment PeopleSoft Enterprise JD Edwards EnterpriseOne Oracle E-Business Suite JD Edwards World $ $ $ $ Siebel Enterprise $

Your Investment PeopleSoft Enterprise JD Edwards EnterpriseOne Oracle E-Business Suite JD Edwards World $ $ $ $ 2013 Supported Until at Least Which Will Be Preserved Into The Future 2013 Siebel Enterprise $ 2013

Or With the New Lifetime Support Offering, Your IT Investment Can be Supported Indefinitely

Extend.

Since the PSFT Acquisition Was Announced, New Versions of E, E1, World & EBS Have Been Released Version 8.9 Version 8.11 Current Version Version 11i.10 PeopleSoft Enterprise JD Edwards EnterpriseOne Oracle E-Business Suite JD Edwards World Version A7.3 & A8.1 Version 7.8 Siebel Enterprise

New Versions are Strong “We recently went live on PeopleSoft Enterprise Performance Management 8.9 and every level of the organization has given it a big thumbs up.” - Lori Austin, CFO Kansas City Board of Public Utilities “Our implementation of JDE EnterpriseOne 8.11 was on time and on budget. With the improved functionality and usability, we expect to improve efficiencies and gain competitive advantage.” - -Phil Walton, Group Director of IT, Spirent Communications “ With the 11i.10 release, we can fully integrate our training programs into the Oracle HRMS platform and leverage a rich new set of business intelligence and analysis capabilities." - Jim Richardson, Dir. Bus Process Engineering, Millipore Enterprise 8.9 EnterpriseOne 8.12 E-Business Suite 11i.10

Version 9 Version 8.12 Version 12 Next Version …And the Extension of All Product Lines Will Continue into the Future Version 8.9 Version 8.11 Current Version Version 11i.10 PeopleSoft Enterprise JD Edwards EnterpriseOne Oracle E-Business Suite Version A9 Version A7.3 & A8.1 JD Edwards World Version 8 Version 7.8 Siebel Enterprise

Evolve.

Although the Applications Product Lines Will be Protected and Extended into the Future… 2013 Version 9 Version 8.9 PeopleSoft Enterprise Version 8.12 Version 8.11 JD Edwards EnterpriseOne Version 12 Version 11i.10 Oracle E-Business Suite Version A9 JD Edwards World Version A7.3 & A Version 8 Version 7.8 Siebel Enterprise

… A New Generation of Business Applications Will Be Created and Released In Parallel & Next Generation Applications 2013 Version 9 Version 8.9 PeopleSoft Enterprise Version 8.12 Version 8.11 JD Edwards EnterpriseOne Version 12 Version 11i.10 Oracle E-Business Suite Version A9 JD Edwards World Version A7.3 & A Version 8 Version 7.8 Siebel Enterprise

Oracle’s Next Generation of Business Applications is Called Fusion Applications

Fusion Applications Will Include the “Best of” Functionality From E, E1, World, Siebel and EBS Best Practices Oracle Fusion Applications Best Practices PeopleSoft Enterprise JD Edwards EnterpriseOne JD Edwards World Oracle E-Business Suite Siebel Enterprise

Graphical Hierarchies (Trees) Shared Reference Data (SetID) Open Item Reconciliation Processing Rules-Based Engine for AP Matching Comprehensive Budgetary Controls Centralized Inter-Unit Setup and Processing Multi-level, Flexible Cash Positioning Travel Authorizations and Cash Advances “ Best of ” Functionality: Finance Example Some Benefits to Enterprise Customers Some Benefits to EBS Customers Subledger Accounting XML Publisher Cash Basis Accounting Broader Localization Coverage Bill Presentment Architecture Credit Management Advanced Collections Out-of-the-Box Credit Card Processor Integrations

New Manager Self-service Transactions (e.g., Country Extensions, VOE) Compensation Workbench / Total Comp Statement Objectives Management Global Benefits Solution Localizations: Nordics, Middle East, Eastern Europe, Korea Enhanced Multiple Job Capabilities Interview Management, Employee Referral Layoff and Recall Functionality Payroll to Accounts Payable Integration Expenses to Payroll Integration Localizations – Brazil, Switzerland, Malaysia “ Best of ” Functionality: HCM Example Some Benefits to Enterprise Customers Some Benefits to EBS Customers

CRM Product Strategy Q: Which product line will form the basis for Oracle Fusion CRM Applications? A: Siebel CRM will be the centerpiece of Oracle’s Fusion CRM Application strategy. As part of Oracle Fusion Applications, we will evaluate all of Oracle’s CRM product lines to define the best functionality, data model, and design points required to meet the requirements of the diverse industries, geographies, and company sizes that Oracle currently supports. Siebel products will form the baseline for most product areas and we will then add any important functionality that exists in Oracle E-Business Suite, PeopleSoft CRM, and JD Edwards CRM to CRM Fusion Applications Source: FAQ on Oracle.com/SiebelFAQ

Oracle Fusion Applications Fusion Applications Design Principles Greatest Business Insight Deep & Adaptive Industry Processes Superior Ownership Experience

Common data model for single source of truth, but open for heterogeneity Centralize data with additional data hubs Analytics embedded in transaction application; summaries and transactions in one place Management reports accessible via role-based operational dashboards Real-time analysis with the ability to take related actions Includes industry specific KPIs Open to third party data Greatest Business Insight Information You Can Trust Design Principle 1:

Deep & Adaptive Industry Processes Information You Can Use Tailorable business process automation: flow definition and management Standards-based extensibility Broad API / web services support BPEL Certification Service: Financial Services, Business & Professional Services, E&C, Retail, Wholesales / Distribution Design Principle 2: Asset Intensive: Comms, T&T, Utilities, Oil & Gas, Natural Resources Public Services: Public Sector, Education & Research, Healthcare Manufacturing: High Tech, Industrial, Automotive, A&D, Life Sciences, Consumer Products, Chemicals Continued Build Out of Industry-Specific Capabilities:

Automated, tailored installs Functional components for individual upgradeability; minimal downtime upgrades Real-time activity monitoring Self-supporting, self-tuning Packaged integration…from server technology, middleware, to applications Superior Ownership Experience Information You Can Manage Design Principle 3: A Complete Lifecycle Management Approach to Continually Lower TCO

Oracle Will Provide Migration Scripts to Automate Much of the Move From E, E1, World, Siebel and EBS to Fusion Applications Releases Fusion Applications PeopleSoft Enterprise JD Edwards EnterpriseOne XE XE Automated Upgrades 11i i Oracle E-Business Suite JD Edwards World A7.3 A8.1 A9 A7.3 A8.1 A Siebel Enterprise

Enhanced Support Fusion Middleware Certification ORCL 11i.10 CUs PSFT 8.9 JD Edwards - - E World A7.3 CU Retek Integration Fusion Architecture ORCL 12 Siebel 8 PSFT 9.0 JD Edwards - - E World A8.1 CU Use of BPEL / BAM Operational Dashboards Data Hubs / Trx Bases Fusion Applications Suite JDE World A9 Individual Fusion Applications The Fusion Timeline…

Oracle Offers You Choice… You can stay on your current E, E1, World, Siebel or EBS system which will be protected and extended into the future -- Or -- Based on your timeline, when you are ready, you can migrate to Fusion Applications targeted for 2008

Protect. Extend. Evolve. The Value of Your Software Investment.

Middleware & Architecture A Look at…

A portfolio of leading technology products ranging from J2EE and developer tools; to integration services, business intelligence, and collaboration; to content and identity management Fusion Middleware Fusion Architecture The application foundation based on a service oriented architecture, open standards, and a common data model The Other Dimensions of “Fusion”

Fusion Middleware A Proven Middleware Platform Best of Breed Middleware -Ranked #1 by Forrester Research -Placed in Gartner’s Magic Quadrant Awards Patents Based on Open Standards -J2EE, WS-*, WS-SCA, UDDI, AJAX, Java Server Faces, DHTML, BPEL, LDAP, SAML, ….

Fusion Middleware Based on 25 Years of Open Standards Leadership

J2EE Enterprise Application Server Development Tools Process Orchestration Business Intelligence Collaboration Tools Data Hubs Security / Identity Management Enterprise Portal Web Services Management Comprehensive, Hot-Pluggable, Unbreakable The Foundation for Oracle Fusion Architecture Fusion Middleware A Portfolio of Leading Technology Products

An Open, SOA-Based Foundation Service Oriented Standards-Based Model Driven Event Enabled Information Centric Performant, Scalable Secure Grid Ready Fusion Architecture Unified Portal Business Process Orchestration Process Models BPEL Engine Fusion Service Bus Multi-Protocol Routing Message Transformation Services and Event Mediation Fusion Service Registry Application Integration Services Process Integration Services Data and Metadata Services ActivityMonitoringBusinessIntelligence Oracle Apps Custom Apps ISV Apps Grid Computing ClusteringSecurity ProvisioningConfiguration Data ManagementDirectories Identity ManagementWeb Cache ClusteringSecurity ProvisioningConfiguration Data ManagementDirectories Identity ManagementWeb Cache Application Development Framework Lifecycle Management

Fusion Architecture Process… Enables industry-specific business agility through rapid adaptation Platform… Offers a reliable, scalable, and secure IT infrastructure at the lowest cost Information… Offers insight and analysis of business critical information Unified Portal Business Process Orchestration Process Models BPEL Engine Fusion Service Bus Multi-Protocol Routing Message Transformation Services and Event Mediation Fusion Service Registry Application Integration Services Process Integration Services Data and Metadata Services ActivityMonitoringBusinessIntelligence Oracle Apps Custom Apps ISV Apps Grid Computing ClusteringSecurity ProvisioningConfiguration Data ManagementDirectories Identity ManagementWeb Cache ClusteringSecurity ProvisioningConfiguration Data ManagementDirectories Identity ManagementWeb Cache Application Development Framework Lifecycle Management

Great Plan… How’s Progress? Halfway to Fusion

Fusion Middleware Progress Fusion Middleware is Available Today! Broad Customer Adoption - 28,500+ Customers Across All Industries of the Global of the Fortune 50 Broad Partner Adoption - 7,500 Partners - 4,780 ISVs Even SAP Users Can’t Get Enough

In Fact, 72% of SAP Customers use Fusion MW Fusion Middleware Progress A Few SAP Applications & Fusion Middleware References

Fusion Applications Progress We’re Well on Our Way to Delivering Fusion Applications Application architecture and standards defined Cross-product functional assessments complete Lifetime support offered for all existing product lines All existing product lines certified on Fusion middleware Upgrade work underway Plan to deliver Fusion components beginning in 2006

Fusion Applications Progress Fusion Component Example 1: Reporting Standardize on high performance, high fidelity, standards-based tool Easy, intuitive, end-user report development within desktop applications. Open to any data source, across the enterprise Allows customers to adopt the Fusion reporting technology now Planned for 2006: Begin delivery of libraries of Fusion reports in EnterpriseOne, Enterprise, and E-Business Suite

Oracle, PeopleSoft, JD Edwards integration services repository delivered Standardized access integration points across the Oracle portfolio Compliant with Web Services standards (e.g., UDDI) Organized by business process and by industry Planned for 2006: Extended directory for Fusion services Mapping to current integration repositories Fusion Applications Progress Fusion Component Example 2: Web Services Repository

Enable business analysts to model and adapt processes to accommodate changing business requirements - Processes - Rules - Functionality Layered configuration to protect adaptation through upgrades Planned for 2006: BPM for Siebel and additional industry solutions Example: HCM Employee Onboarding Fusion Applications Progress Fusion Component Example 3: Business Process Flows

Setting the Record Straight

Myth: Oracle is merging code lines -- different technologies, standards, protocols Truth: Oracle is not merging code lines -- rather, creating a new code line based on a service oriented architecture, open standards, and “best of” functionality Dispelling Myths Myth: Oracle is starting from scratch, a blank sheet Truth: Oracle is already halfway to Fusion -- middleware and tools are ready, leveraging the world’s best data model, business requirements and processes are understood, and customers and partners are heavily involved

Dispelling Myths Myth: Large, unanticipated costs for customers Truth: Moving to Fusion is not a re-implementation -- it is an upgrade, an automated upgrade Myth: This has never been done before Truth: Introducing next generation applications is what Oracle does, and has done successfully for 20 years

Summing It Up…

Applications, Middleware, & Architecture A Complete Offering -- Integrated, Manageable, Secure Fusion The Fusion Effect… The sustainable competitive advantage achieved by the continuous blending of business processes and insight Automated Upgrade to Fusion Apps Service Oriented, Standards-Based Common, Consistent Data Model “Best of” Industry Processes Best in Class User Interface Actionable, Embedded Analytics