Matthew C. Yearling Vice President Oracle Outsourcing Oracle Corporation

Get Better Service: Oracle Collaboration Suite Outsourcing

Agenda  The IT Challenge  Oracle Collaboration Suite Outsourcing  Case Study  How We Do It

Where Is Your Information? Business Systems (ERP, CRM) Collaborative Assets: Customer records, Contracts, , Voic , Memos, Web Conferences, Data Sheets, Instant Messages, Planning Documents, Forecasts, Quotes, etc. Transactions, Legacy Applications 70% 30%

The IT Challenge  Strategic Value  Security  Spam/Virus/Worms  Keeping Software Current  Distributed Systems  Availability  Productivity  Regulatory Compliance  Cost

IT Budgets Dominated by Cost of Management 79% of Budget Spent on Managing Existing Systems

Software Why? App Admin DB Admin Sys Admin HW Admin Availability Security Performance Problem Change

“ When you consider the annual costs of managing performance, changes, and availability, it is most likely significantly greater than the application purchase price.” Cost of Managing Any Software -IDC October 15,2002

“Customers can spend up to 4 times the cost of their software license per year to own and manage their applications.” -Brian Zrimsek Research Director, Gartner, Inc. January 2003 Cost of Managing Any Software

Software Price $1M one time Management Cost (4x) $20M over 5 years

Cost of Managing Any Software “Microsoft says that the initial purchase is usually only 5% of the total cost of owning and maintaining a program.” The Wall Street Journal Microsoft Wages Campaign Against Using Free Software December 9, 2002

The Solution

Oracle Collaboration Suite 10g Calendar Voic Files Search Outlook Fax Voice Wireless Web Web Conferencing

Collaboration Suite Outsourcing Applications Prod Support Implementation Apps Admin DB/AS Admin Sys Admin HW Admin TraditionalOutsourcing Customer Customer Manages: Availability Security Performance Change Problems Oracle Manages: Availability Security Performance Change Problems

Customer Tools  User & Group Management  Privileges & Access Management  Quota Assignment  Resource Management  Alias/list Management  Data Migration

Application & Database Administration  Virus & Spam Filtering Rules  Queue Management  Domain Configuration  Install/Upgrade Software  24x7 Availability and Performance Monitoring  Security Management  Backup and Recovery Management  Patching and Upgrade Management  Log and Trace File Management  Capacity Planning and Monitoring  Environment Startup and Shutdown Management

System Administration  Operating System Installation  System Configuration and Files Management  24x7 Monitoring of System Availability and Performance  System Availability Management  System Performance Management  OS Security and User Management  Backup Media Management  Patch and Upgrade Analysis  Automated Patching and Upgrades of Operating System

Hardware Administration  Hardware Acquisition, Installation and Maintenance  Hardware/software Vendor Relationship Management – Service Contract Management  Data Center Provisioning  Physical Security  Hardware Capacity Planning  Hardware Disaster Recovery  Tape Mounting/Vaulting

Predictable Outsourcing Price Option$/User/Month* Oracle Collaboration Suite $8.50 , Files, or Web $6.85 Option$/User/Month* Oracle Collaboration Suite $8.50 , Files, or Web $6.85 * Minimums & additional priced options not included

Customer Case Study

E-Commerce Solutions  Customizable, Scalable, Integrated  Consumer Good Merchants – Retailers, Manufacturers, Distributors – eBay Power Sellers  Online Marketing Automation Engine  Inventory, Order, Customer Acquisition and Management

Infopia Merchant Flow

Infopia Challenges  Lack of Expertise & Resources – Database & App Server Management – Security, Hardware & OS, Network, Firewall & VPN  Scalability Costs – Upgrades and Maintenance  Downtime and Security Problems  Insufficient System for Projected Growth  No File Collaboration Solution  No Calendaring System  Problems with 3 rd Party Demo Software

Oracle Solution  Oracle Collaboration Suite Outsourcing – – Webmail – Gateway SPAM Filtering – Files (planned) – Calendaring (planned) – Web Conference (planned)  Oracle Technology Outsourcing  RAC Database  Oracle Application Server – HTTP Server – OC4J Containers – Web Cache – Enterprise Manager

Key Benefits  30% Cost Savings  30% Productivity Gains  Volume Reduced  Scalable Infrastructure  Increased Security  24/7 Expert & Global Support Team  Faster & Newer Hardware  Proactive vs. Reactive Maintenance

How We Do It

World-Class Data Center  1 Acre of Computer Room Space  Middle of the US  Dual Power Feeds  Five 2-Megawatt Diesel Backup Generators  Three 600 Ton Chillers  Dual Redundant OC12 Ring to RMDC Oracle’s Austin Data Center

Oracle Grid Computing  Capacity on Demand  Balance All Types of Workloads Across Servers  Unified Management of Everything  Reliability and Performance at Low Cost Storage Grid Database Grid Application Server Grid Control

Deploy a ‘Slice’ of the Grid 7x24 By Default Americas Asia/Pac Europe CertifiedConfiguration Cust.

Transition Initialization Production Implementation Sales Upgrade Outsourcing Lifecycle

Focus on..  Repetition  Specialization  Automation  Disintermediation – Eliminate the Middleman

Repetition & Specialization Release Upgrades for the 100th Time R.6R.3R.8 R.4R.2R.8 R.5R.3R.7 R.6R.3R.8 R.6R.3R.7 R.4R.2R.8 R.6R.3R.8 R.6R.2R.8 R.5R.3R.7 R.4R.3R.7

Automation

Customer Eliminate the Middleman Oracle R&D Americas Time Asia/Pac Time Europe Time

The End Result Being…

More Reliable Service  Outage avoidance – 60% of issues resolved without customer involvement  Proactive maintenance – 50% fewer issues reported  Faster resolution – 50% faster resolution of service requests Source: Oracle Support Tracking System

Cost Savings  Fixed, predictable monthly cost  50% average cost savings versus in-house Source: IDC, 2002

What Analysts Are Saying

"Given the challenges, expense and importance of keeping collaboration systems highly available,outsourcing makes a lot of sense. Since Oracle develops, supports and manages the software, Oracle Collaboration Suite Outsourcing looks like an attractive offering for customers." -David Ferris, President of Ferris Research, Inc. -David Ferris, President of Ferris Research, Inc. Ferris Research

"The new Collaboration Suite Outsourcing service is the latest example of how Oracle Outsourcing's model of better service at a lower cost can deliver value to customers. Given the pain companies are feeling when it comes to managing and upgrading systems, Collaboration Suite Outsourcing might be the right prescription." -Laurie McCabe Summit Strategies -Laurie McCabe Summit Strategies Summit Strategies

For More Information…  Visit us at: –  Infopia: –

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