Oracle Cloud Computing Strategy Dhruv Singhal Sr. Director Oracle Fusion Middleware Sales Consulting

The following is intended to outline our general product direction 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remain at the sole discretion of Oracle.

AGENDA What is Cloud Computing Oracle’s Strategy for Cloud Computing Where we can Work Together Private Cloud Public Cloud

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What Is Cloud Computing 5

NIST Definition of Cloud Computing Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of: 5 Essential Characteristics On-demand self-service Resource pooling Rapid elasticity Measured service Broad network access 3 Service Models SaaS PaaS IaaS 3 Deployment Models Public Cloud Private Cloud Hybrid Cloud One of the areas of confusion is the definition of Cloud Computing. There are many definitions of Cloud Computing out there. Here is one of them that seems to represent the most commonly held view. It’s from the National Institute of Standards (NIST) and seems to be gaining in popularity, not only in the US, but also the rest of the world as well. The definition is essentially about “on-demand access to a shared pool of computing resources.” Breaking it down, cloud computing is composed of: 5 essential characteristics 3 service models 4 deployment models The 5 essential characteristics are key: On demand self-service – provisioning, monitoring, management control Resource pooling – implies sharing and a level of abstraction between consumers and services Rapid elasticity – the ability to quickly scale up/down as needed Measured service – metering utilization for either internal chargeback (private cloud) or external billing (public cloud) Broad network access – typically means access through a browser on any networked device I’ll cover the 3 service models and 4 deployment models on the next few slides. Source: NIST Definition of Cloud Computing v15

SaaS, PaaS and IaaS Applications delivered as a service to end-users over the Internet Software as a Service App development & deployment platform delivered as a service Platform as a Service “Software as a Service” generally refers to applications that are delivered to END-USERS over the Internet. There are hundreds of SaaS providers out there covering a wide variety of applications. Oracle CRM On Demand is an example of a SaaS service. Another example is Salesforce.com “Platform as a Service” generally refers to an application development and deployment platform delivered as a service to DEVELOPERS, allowing them to quickly build and deploy a SaaS application to end-users. These platform are often built on a grid computing architecture and include database and middleware. They are often specific to a language or API. For example Google AppEngine is Java and Python. EngineYard is Ruby on Rails. Salesforce.com’s Force.com is a proprietary variation of Java. Finally, “Infrastructure as a Service” generally refers to computing hardware (servers, storage and network) delivered as a service. This typically includes the associated software as well: operating systems, virtualization, clustering, etc. The best known example of this is Amazon Web Services, which offers Elastic Compute Cloud (EC2) for compute servers and Simple Storage Service (S3) for storage. Server, storage and network hardware and associated software delivered as a service Infrastructure as a Service

Public Clouds and Private Clouds Used by multiple tenants on a shared basis Hosted and managed by cloud service provider Limited variety of offerings Exclusively used by a single organization Controlled and managed by in-house IT Large number of applications I N T E R I N T R A E SaaS SaaS PaaS PaaS IaaS IaaS Users Both offer: High efficiency High availability Elastic capacity Animated slide. Let’s look closer at the distinction between public and private clouds. [CLICK] A public cloud is shared by multiple tenants, whereas a private cloud is for the exclusive use of a single organization. A public cloud is hosted and managed by the cloud service provider, and a private cloud is controlled and managed by in-house IT (of course, it’s also possible to outsource this, so there are such things as “hosted private clouds” or “virtual private clouds” but for the sake of simplicity, it’s easier to think of private clouds as in-house. A third observation is that public clouds usually offer a very limited variety of offerings, in order to be efficient, while a private cloud may need to provide a large number applications. Within a large enterprise, there are typically hundreds to thousands of apps. The NIST model includes “community clouds” which are essentially semi-private clouds for use by a group related organizations, such as all the schools in the University of California system, all the branches of the military, or all the parts suppliers to Ford or GM. And a hybrid cloud is some combination of the other three…typically for a single application. (if an organization has 1 app in a private cloud and a different app in a public cloud, that’s not considered a hybrid cloud). [CLICK] Each has its own unique advantages, and they have some common advantages as well. Because both public and private clouds are based on virtualization and grid computing, they enjoy high efficiency and utilization rates, elastic capacity for limitless scale-out and pay-as-you-go equipment procurement, and also high availability for maintaining high user service levels and business continuity. Public clouds are often faster and cheaper to get started, since there’s nothing to install. They offer economies of scale which the provider can pass on to customers. They don’t require IT to manage and administer, update, patch, etc. And they are paid for as Operating Expense, which can be simpler from a budgeting standpoint. Private clouds offer greater control over security and data privacy, compliance (this can be a big issue since there are some regulatory requirements about where data resides, audit trails, etc. that public clouds cannot meet today), and also quality of service, since private clouds can manage network bandwidth and implement optimizations that public clouds don’t allow. Private clouds also provide easier integration with other systems that are on-premise. They are potentially lower cost over the long term…breakeven is in 2 or 3 years. After that, public clouds become more expensive. And private clouds are paid for as both Capital Expense (with depreciation) and Operating Expense. Enterprises will make these trade-offs and will likely run a mix of public and private clouds. Even Oracle, which operates one of the biggest private clouds internally, also uses Amazon EC2 for some things, such as marketing demos. One popular use case is Dev & Test…engineering can use public cloud resources to set up development and test machines without waiting for IT to set them up. Another interesting use case is doing disaster recovery offsite in a public cloud. Public Clouds: Lower upfront costs Economies of scale Simpler to manage OpEx Private Cloud: Lower total costs Greater control over security, compliance & quality of service Easier integration CapEx & OpEx

Why Are Enterprises Interested in Cloud? Benefits of Cloud Computing Speed Cost What are the key benefits that enterprises see in Cloud Computing? Here’s are some recent results from a survey by IDC. Benefits: the top reason to use cloud computing is speed/ease of deployment, and the next 3 are all related to lower costs. Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008

What Are the Challenges Enterprises Face? Challenges of Cloud Computing Security QoS Fit And what are the key concerns that enterprises see in Cloud Computing? Here’s are results from the same survey by IDC. Issues: Security is the top issue. The next 2 (Perf & Avail) relate to Quality of Service. The next 2 relate to concerns about how well the cloud application fits the business requirements. There is also concern about long-term costs, lock-in and regulatory compliance. Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008

Oracle Cloud Strategy 11

Oracle Cloud Computing Strategy Our objectives: Ensure that cloud computing is fully enterprise grade Support both public and private cloud computing – give customers choice Public Clouds Private Cloud Offer Applications deployed in private shared services environment or via public SaaS SaaS SaaS I N T E R N E T I N T R A E SaaS Offer Technology to build private clouds or run in public clouds IaaS PaaS PaaS PaaS This slide has animations/builds. So, what is Oracle’s overall cloud computing strategy? Our objectives are first to ensure that cloud computing is fully enterprise grade, that is, that is high performance, scalability, reliability, availability, security and standards-based for portability and interoperability. All the “ilities”… Secondly, we will support both public and private cloud computing in order to give customers choice. To accomplish this objectives, we have a 2-pronged strategy: [CLICK] First, we offer Technology to enable enterprises to build private clouds or run in public clouds [CLICK] Second, we offer Apps that are deployed in either a private shared services environment or public SaaS Let’s drill down into each of these… IaaS IaaS Users

Oracle Cloud Computing Strategy Oracle Applications On Demand Oracle Applications Public Clouds Private Cloud SaaS SaaS I N T E R N E T I N T R A E SaaS SaaS Oracle Technology in public clouds PaaS PaaS PaaS PaaS IaaS IaaS IaaS IaaS This slide has animations/builds. First for Technology: [CLICK] We offer Technology to enterprises building Private Clouds. We will talk in depth about the “Oracle Private PaaS” [CLICK] We also offer enterprises the ability to run Oracle Technology in public clouds like Amazon and Rackspace. Then for Applications: [CLICK] We offer Oracle Applications running in a shared services private cloud, and [CLICK] We also offer a number of Applications as public cloud services from our Oracle On Demand business. We’re now going to talk more about each of these 4 areas. The axes are Public and Private, Tech and Apps. But we will focus more on the Technology side in this presentation and the following presentations. Users Oracle Private PaaS

Oracle Cloud Platform for PaaS Application 1 Application 2 Application 3 Database Grid: Oracle Database, RAC, ASM, Partitioning, IMDB Cache, Active Data Guard, Database Security Application Grid: WebLogic Server, Coherence, Tuxedo, JRockit Shared Services Integration: SOA Suite Security: Identity Mgmt Process Mgmt: BPM Suite User Interaction: WebCenter Platform as a Service Cloud Management Application Quality Management Application Performance Management Configuration & Compliance Lifecycle Management Oracle Enterprise Manager Now let’s talk about WHAT is a Private PaaS. A Private PaaS is made up of a number of critical building blocks. Oracle has the most comprehensive set of building blocks in the industry, the most “complete, open and integrated” set of building blocks. From the bottom up, this includes Oracle VM for server virtualization, Oracle Enterprise Linux our OS, the Oracle Database grid (made up of RAC, ASM, In-Memory Database Cache, and other database options and features). Then on top of that, Oracle offers our application grid, which includes WebLogic Server, Coherence, Tuxedo and JRockit, and on top of that, a number of value-added services: SOA and BPM for integration and process management, identity and access management for security, and WebCenter our portal for user interaction. We also offer very comprehensive “Cloud Management” capabilities based on Oracle Enterprise Manager. EM has very comprehensive capabilities to manage the full “Cloud Platform” stack including middleware, database, OS and virtualization. For example, Real User Experience Insight (RUEI) enables us to manage top-down from the application end-user’s perspective things like performance, availability and behavior patterns…something that’s useful for SLA/QoS management for private clouds. Our second Keynote explains Private PaaS in more depth, and we have a separate session to talk more about Cloud Management. Infrastructure as a Service Operating Systems: Oracle Enterprise Linux Virtualization: Oracle VM Servers Storage

Applying Cloud’s Greatest Value Infrastructure or Platform? “Conventional” Cloud Wisdom Rethinking the Value of Cloud Cloud Implementation Cloud Implementation PaaS (FMW, DB) PaaS (FMW, DB) Where should you focus your cloud efforts? IaaS (virtualization) De-position cloud = virtualization thinking. Consider your cloud implementation- where do you want to focus your efforts- on servers or applications? PaaS adds far more value to business than IaaS. IaaS (Virtualization) Applications, not infrastructure, drive your business

Oracle SaaS Applications Available Today CRM Wide range of applications Integrated Enterprise-grade Oracle offers a portfolio of SaaS applications today which span a wide range of enterprise processes, are fully enterprise-grade thanks the fact they are built on Oracle’s leading infrastructure software, which is complete, open standards-based and pre-integrated (C-O-I). Currently (October 2009), our 3 SaaS offerings are: CRM On Demand Beehive On Demand (enterprise collaboration) Oracle Argus On Demand (for drug safety / adverse incident reporting) More to come… Collaboration Life Sciences: Drug Safety 16

Oracle On Demand Flexible Deployment Options Multi-Tenant SaaS Single-Tenant SaaS Hosted & Managed Remote Management On-Premise Public Private Pay-per-use Licensed Oracle On Demand is the name of a wide spectrum of service offerings from Oracle that give customers the choice of deploying on-premise in the own data centers or in Oracle’s data centers, managed by Oracle or by the customer, and how maintenance and optimization get done. At the far right is the traditional software license and on-site deployment model where the customer licenses the software and deploys and manages it themselves in their own data centers. Moving over towards the left, Oracle On Demand offers a remote management service where we can manage the software for you – the software is still deployed in your own data centers. Oracle will also do hosting and management at Oracle’s data centers – in this model, the customer buys a perpetual license and annual maintenance, and pays Oracle a fee to provide hosting/management services. The two models at the far left of this are both considered SaaS, meaning the customer is paying-per-use of the software. A rental. Or a longer-term lease. One is a single-tenant model where the customer gets a dedicated system, which can be optimized for the customer and for which the customer has a degree of control, such as specifying when maintenance gets done for example. In a multi-tenant model, the customer shares resources with other customers, so the cost is lower, but the vendor must treat the group of customers exactly the same in order to get the cost efficiencies out of this model. Oracle On Demand offers the 4 deployment options towards the left side of this picture. OpEx CapEx & OpEx Off-premise On-premise Managed by vendor Managed by Customer Vendor scheduled maintenance Customer scheduled maintenance 17 17

Pre Requisites for Cloud Computing Virtualisation & Grid Computing Provisioning Strong Management Capabilities Rapid Business Process Configuration Grid Enabled Data Center

Virtualization - Storage, Server, Application Storage Virtualization Server Virtualization Application Virtualization Automated Storage Mgmt. Oracle VM Oracle VM Compression Solaris Containers Assembly Builder Storage Connect Dynamic Domains Built in Multi-Tenancy Open Storage

Provisioning Life Cycle 2. App Set Up Department App Owner 1. Cloud Set Up Central IT Build app using shared components Set up self-service portal 3. App Use Dept App Deploy using self service Set up shared components Set up PaaS App Users Use app 4. App Admin Shared Components Self-Service Interface App Owner I would like to use this slide showing the lifecycle of how a private cloud would work within an enterprise. Note the different roles. 1. You have [click] a central IT function that initially sets up the platform, [click] installing the private PaaS, [click] building the self-service Web-based interface perhaps as a portal, and [click] creating some shareable components (may be services, processes or UI components). 2. Next, a departmental app owner [click] can take advantage of the PaaS and shared component to more quickly assemble the app [click] and deploy it through self-service [click]. If their role entitles them to make that request, it is automatically provisioned. If not, it gets routed to their management and/or IT for workflow approval…just like a procurement process. 3. Then you have [click] the users of the department apps, who may also employees within that department, other departments, partners, or customers. 4. Finally, there’s application administration [click]. An app owner goes through self-service to manage the app in the private cloud. The owner can monitor and manage the app, adjust capacity if necessary and tracks usage (metering) and how much they are being charged for use of the cloud resources. So, this PaaS shows some of the key characteristics of cloud computing: self-service, shared services, dynamic provisioning, elastic scalabilty and metering/chargeback. Oracle VM Oracle Enterprise Linux Oracle Database Oracle Fusion Middleware Oracle Enterprise Manager Manage app Adjust capacity Review chargeback

Key Enterprise Manager Capabilities for Cloud ‘Out-of-the-Box’ Cloud Solutions Capacity & Consolidation Planner Policy-based Workload Management Self-Service Application Cloud Setup Metering & Chargeback Assembly Packaging Foundation Capabilities Lifecycle Management Configuration and Compliance Application Performance Management Application Quality Management Dynamic Resource Management Compliance Dashboards Real User Monitoring Functional/Load Testing Patching Application Configuration Management SOA, Java, JVM Real Application Testing Oracle Enterprise Manager offers capabilities today that can help customers on the left side of the previous slide. It also has capabilities today to help customers who identified themselves on the right hand side of the previous slide. We will cover these areas. We will also cover some very exciting new capabilities that are upcoming. The new capabilities will enable you to deploy out-of-box cloud management solutions. It is important to note that unless the foundational capabilities are in place, you will not maximize the benefits of cloud computing. So it pays to be honest about your own IT management capabilities and set realistic objectives to ensure your path to the cloud offers the maximum benefit. Provisioning Collection, Tracking, History Diagnostics, Tuning Data Masking Key: Existing Capability Planned Capability Major Enhancement 21

Data Center Architecture 1 Oracle Exalogic Elastic Cloud 1 Oracle Exadata Database Machine 100s of Application Server Machines 100s of Database Server Machines

Oracle Exadata X2-8 Fastest for Data Warehouse & OLTP Oracle Database Server Grid 2 8-Socket Intel Servers 128 Cores 2 Terabyte DRAM Fastest for Data Warehouse & OLTP Best Data Warehouse & OLTP Cost/Performance 100% Fault Tolerant & Scalable On-Demand Software Breakthroughs Exadata Storage Grid Smart Flash Cache Hybrid Columnar Compression Secure Database Machine Unified Server/Storage Network 40 Gb/sec Infiniband Links 880 Gb/sec Aggregate Throughput 10 Gigabit Ethernet to Data Center Exadata Storage Server Grid 14 Storage Servers 5TB flash storage 336 TB Disk Storage

Oracle Exalogic Elastic Cloud Fastest Java Performance Best Java Cost/Performance 100% Fault Tolerant & Scalable On-Demand Software Breakthroughs Network Performance with Zero Buffer Copies Parallel Workload Scheduling Dynamic Workload Balancing and Transaction Affinity with Database Built in Application & Network Isolation for Consolidation Oracle Weblogic Server Grid 30 Compute Servers; 360 Cores 2.8 TB DRAM 960 GB Solid-state Disk Infiniband Network 40 Gb/sec Inifiband Links 1.2 micro second latency 10 Gigabit Ethernet out Integrated Storage Appliance Software Images & Application Files Patch Centrally 40 TB SAS Disk Storage Caches

Customer: Credit Suisse Reduce Cost: Standardized Application Platform on WebLogic Customer Use Case Single integrated set of components and processes to support application development and operations Solution WebLogic Server Key Product Capabilities Used Scripted WLS instance creation Automatic generation of application server configurations Enterprise Messaging (JMS) Provides a Self-tuning platform WebLogic Portal on roadmap Environment Custom JEE applications Underlying Problems Handcrafted heterogeneous servers were expensive to build, maintain. Each application server type required unique admin. App server maintenance a key challenge. Audit and regulatory compliance at risk. Developers assisting production support issues Benefits for Customer Demonstrated server consolidation ration of 1:7 across 200 applications. One-time development costs reduced by 30% Recurring development costs reduced by 35% Applications more secure, fault tolerant, consistent

Customer: HP Solution Customer Use Case Key Product Capabilities Used Reduce Cost: Consolidate on WebLogic Server Customer Use Case Consolidation of application infrastructure to create a shared services platform Solution WebLogic Server Key Product Capabilities Used Standardization of middleware stack. WebLogic Server versions limited to 9.2 and 10.3 Real Operations Automation Standards based administrative /operational scripting languag Recording of WebLogic Server console interactions as a runnable script Automated patch staging / application Self-tuning platform Self tuning application server Environment Custom JEE applications Underlying Problems Applications deployed and maintained by individual business units Multiple versions of the middleware stack in use Existing development platform complex and costly to manage and maintain Low hardware utilization Benefits for Customer Centralized Infrastructure. Centralized Management Reduced cost of operations – admin resources reduced from 50 to 5. Approximately 200 apps including PeopleSoft HR on 1800 instances of WLS Much improved QOS

Running Oracle in Public Clouds At Oracle OpenWorld 2008, Oracle announced that we would enable customers to run Oracle products in public clouds. The first was Amazon’s Elastic Compute Cloud (EC2), part of Amazon Web Services (AWS), and our intent is to support other public IaaS cloud providers as well. Specifically, we allow customers to use their existing licenses or purchase new licenses for Oracle Database, Oracle Fusion Middleware and Oracle Enterprise Manager, and run those in either the own data centers or in EC2. Oracle will provide support for our products running in EC2. You will soon be able to run Oracle Technology in Rackspace as well. They are building a public PaaS offering based on Oracle’s Technology stack including WebLogic Server, Oracle Database RAC, Oracle Enterprise Linux and Oracle VM. Oracle Database, Fusion Middleware & Enterprise Manager supported on EC2 Amazon Machine Images (AMIs) Oracle Database Secure Backup to S3 Self-service Public PaaS based on Oracle VM, Oracle Enterprise Linux, Oracle Database RAC and Oracle WebLogic Server

Rackspace Self-Service Public PaaS WebLogic Server, Oracle Database, RAC, Oracle Enterprise Linux, Oracle VM © 2009 Oracle 28 28

Where We can Work Together 29

Private Cloud Consolidate Data Centers Standardise Database and Application Server Use Virtualisation to optimise use of H/W resources Use Grid Computing to ease allocation/de-allocation Automate Provisioning/De-Provisioning Self Service Portal for H/W and S/W environments Charge Back to User Departments/Companies

Opportunities for Public Cloud Computing State Data Centers Can host applications of multiple government departments on a public/private cloud Educational Institutes Peak Load on declaration of Results, Filing of applications Campus Based solutions Pan-India applications used by different states Same application being used by different states can be centrally hosted on a cloud eg. Public Distribution System (PDS) application Public clouds hosted by System Integrators/ISVs Can provide cloud as a service Can host various applications for customers on a cloud On Demand Environments for Load Testing, Migration