1. Enterprise Cloud Computing: What, Why and How

2. © 2010 Oracle2 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.

3. © 2010 Oracle3 Everyone Is Talking About Cloud

4. © 2010 Oracle4 Cloud Is at the Peak of the Hype Curve Source: Gartner "Hype Cycle for Cloud Computing, 2009" Research Note G00168780

5. © 2010 Oracle5 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: Source: NIST Definition of Cloud Computing v15NIST Definition of Cloud Computing v15 3 Service Models SaaS PaaS IaaS 4 Deployment Models Public Cloud Private Cloud Community Cloud Hybrid Cloud 5 Essential Characteristics On-demand self-service Resource pooling Rapid elasticity Measured service Broad network access

6. © 2010 Oracle6 SaaS, PaaS and IaaS Applications delivered as a service to end-users over the Internet Infrastructure as a Service Platform as a Service Software as a Service App development & deployment platform delivered as a service Server, storage and network hardware and associated software delivered as a service

7. © 2010 Oracle7 Public Clouds and Private Clouds INTERNETINTERNET Public Clouds IaaS PaaS SaaS INTRANETINTRANET Private Cloud Users 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 Both offer: High efficiency High availability Elastic capacity 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 IaaS PaaS SaaS

8. © 2010 Oracle8 44% of Large Enterprises Are Interested In Building An Internal Cloud Source: Cloud Computing, Compute-As-A-Service: Interest And Adoption By Company Size, Forrester Research, Inc., February 27, 2009

9. © 2010 Oracle9 Why Are Enterprises Interested in Cloud? What Are the Challenges Enterprises Face? Speed Cost QoS Fit Security BenefitsChallenges/Issues Source: IDC eXchange, "IT Cloud Services User Survey, pt. 2: Top Benefits & Challenges," (http://blogs.idc.com/ie/?p=210), October 2, 2008

10. © 2010 Oracle10 Cloud Computing: Oracle’s Perspective Characterized by real, new capabilities, but based on many established technologies Compelling benefits as well as serious concerns Enterprises will adopt a mix of public and private clouds

11. © 2010 Oracle11 Oracle Cloud Strategy

12. © 2010 Oracle12 Oracle Cloud Computing Strategy Public Clouds IaaS PaaS SaaS INTRANETINTRANET Private Cloud Users Our objectives: Ensure that cloud computing is fully enterprise grade Support both public and private cloud computing – give customers choice IaaS PaaS SaaS INTERNETINTERNET Offer Technology to build private clouds or run in public clouds IaaS PaaS IaaS PaaS Offer Applications deployed in private shared services environment or via public SaaS SaaS

13. © 2010 Oracle13 Oracle Cloud Computing Strategy Public Clouds IaaS PaaS SaaS INTRANETINTRANET Private Cloud Users IaaS PaaS SaaS INTERNETINTERNET IaaS PaaS IaaS PaaS SaaS Oracle Technology in public clouds Oracle Applications On Demand Oracle Applications Oracle Private PaaS

14. © 2010 Oracle14 Oracle Cloud Computing Strategy Public Clouds IaaS PaaS SaaS INTRANETINTRANET Private Cloud Users IaaS PaaS SaaS INTERNETINTERNET IaaS PaaS IaaS PaaS SaaS Oracle Technology in public clouds Oracle Applications On Demand Oracle Applications Oracle Private PaaS

15. © 2010 Oracle15 Oracle Private PaaS: What, Why and How

16. © 2010 Oracle16 Why Enterprise Private PaaS Why Cloud? -Agility and speed -Efficiency and cost Why Private? -Security -Compliance -Control (particularly over QoS) -Easiest evolution of existing expertise and practices Why Platform? -Maximizes component re-use -Minimizes hand coding -Maximizes flexibility and control PaaS IaaS Built by user Provided by IT Built by user Provided by IT IaaSPaaS

17. © 2010 Oracle17 What: Oracle Cloud Platform for PaaS Platform as a Service Infrastructure as a Service Oracle VM for x86 Operating Systems: Oracle Enterprise Linux Cloud Management Oracle Enterprise Manager Configuration Mgmt Lifecycle Management Application Performance Management Application Quality Management 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 Oracle Enterprise LinuxOracle Solaris Oracle VM for SPARC (LDom) Solaris Containers Servers Storage Physical and Virtual Systems Management Ops Center Oracle Applications Third Party Applications ISV Applications

18. © 2010 Oracle18 Private PaaS Lifecycle Self-Service Interface Shared Components Set up PaaS Set up self- service portal Set up shared components Dept App Build app using shared components Central IT Department App Owner Deploy using self service App Users 1. Cloud Set Up 2. App Set Up 3. App Use App Owner 4. App Admin Use app Oracle VM Oracle Enterprise Linux Oracle Database Oracle Fusion Middleware Oracle Enterprise Manager Manage app Adjust capacity Review chargeback

19. © 2010 Oracle19 Private PaaS Conceptual Demo Demo

20. © 2010 Oracle20

21. © 2010 Oracle21

22. © 2010 Oracle22

23. © 2010 Oracle23

24. © 2010 Oracle24 How: Enterprise Evolution To Cloud Private Cloud Evolution Public Cloud Evolution PaaS SaaS IaaS Public Clouds Hybrid Federation with public clouds Interoperability Cloud bursting App1App2App3 Private IaaS Private PaaS Virtual Private Cloud Hybrid PaaS SaaS IaaS Private Cloud Self-service Policy-based resource mgmt Chargeback Capacity planning App2App3 Private IaaS Private PaaS App1 Silo’dGrid Physical Dedicated Static Heterogeneous Virtual Shared services Dynamic Standardized appliances App1App2App3 App1App2App3 Private IaaS Private PaaS

25. © 2010 Oracle25 Evolving From Silos to Grid From Physical to Virtual Physical, dedicated silos Sized for peak load Difficult to scale Expensive to manage Virtualized, shared resources Improved utilization Scale as needed Efficient to manage

26. © 2010 Oracle26 Grid Computing: Virtualization & Clustering Cloud Is Not Just Server Virtualization

27. © 2010 Oracle27 Sharing and Consolidation with Grid Computing Server AServer BServer CServer D Application AApplication BApplication CApplication D Workload Avg Utilization <20% Applications A, B, C, D, E Net Workload Avg Utilization 70% Freed capacity to deploy elsewhere Take advantage of complementary workload peaks Higher utilization rates and efficiency Lower CapEx & OpEx Green footprint Oracle Shared Instance Server E Application E Server AServer BServer CServer DServer E Virtualization and clustering enable consolidation

28. © 2010 Oracle28 Elastic Scalability with Grid Computing Applications A, B, C, D, E Net Workload If utilization too high, increase capacity Pay-as-you-go scale-out -Lower upfront CapEx and ongoing OpEx -Green footprint Rightsized capacity planning -Smaller, standard machines running at higher utilization Defer equipment procurement -Exploit advances in hardware price-performance and energy efficiency Oracle Shared Instance Server AServer BServer CServer D World-class clustering at all levels: database, middleware, storage Add/Remove nodes on-demand Scale out as workload increases Scale-out on-demand

29. © 2010 Oracle29 Quality of Service with Grid Computing Applications A, B, C, D, E Net Workload Systematic high Quality of Service Reliability through redundancy Predictable performance at any scale High availability – every application gets HA Oracle Shared Instance Server AServer BServer CServer D Load balancing Failover Active-Active operation High performance and availability Server E Disaster recovery Rolling upgrades

30. © 2010 Oracle30 Most Complete Grid Stack in the Industry Grid Computing in All Tiers Middleware Application Grid -WebLogic Server -Coherence In-Memory Data Grid -JRockit Real Time -Tuxedo Database Real Application Clusters In-Memory Database Cache Sun Oracle Database Machine Storage Automatic Storage Management Exadata Storage Server Infrastructure Oracle VM Oracle Enterprise Linux Management Oracle Enterprise Manager

31. © 2010 Oracle31 Oracle IT Evolution to Cloud Case Study

32. © 2010 Oracle32 Oracle IT: Oracle Development Self-Service Private Cloud Self-Service Application Job Mgmt Virtualization Priority Match Making Resource Mgmt Enterprise Manager Grid Control Submit Notifications Developer Metadata / Label Servers Results Hosts

33. © 2010 Oracle33 Oracle IT: Oracle Development Self-Service Private Cloud Implementation Overview: -Scope/Scale - Over 2600 physical servers with over 6000 Virtual Servers used by over 3500 developers -Activations – Processing over 70 jobs per day, this translates into over 45,000 jobs processed supporting production and test requirements. -Utilization – Rates on these servers averages 80% 7 days a week and can reach 90% during peak times. Results/Benefits: -Increase in development productivity -Self-Service system for creation of development environments -Cleaner code lines as environments are created quickly for more thorough testing/validation. -Physical Server/Environmental Reduction by 75% -Server/Apps Deployment reduced by 80%

34. © 2010 Oracle34 Oracle IT: Oracle University Dynamic Provisioning with Grid Computing Education Services 2,300 environments automatically provisioned weekly 1/10 th the hardware CPU utilization increased from 7% to 73% Floor space reduced 50% Power consumption reduced 40% Servers: Administrator ratio increased 10X Revenue/Server increased 10X

35. © 2010 Oracle35 Oracle Cloud Computing Strategy Public Clouds IaaS PaaS SaaS INTRANETINTRANET Private Cloud Users IaaS PaaS SaaS INTERNETINTERNET IaaS PaaS IaaS PaaS SaaS Oracle Private PaaS Oracle Technology in public clouds Oracle Applications On Demand Oracle Applications

36. © 2010 Oracle36 Oracle in Public Clouds 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

37. © 2010 Oracle37 Oracle VM Oracle Enterprise Linux Oracle Database Oracle Fusion Middleware Oracle Enterprise Manager Oracle Applications Deployed on Shared Services Private PaaS Shared Components Industry Applications Private PaaS

38. © 2010 Oracle38 Oracle On Demand Flexible Deployment Options Remote Management Hosted & Managed Multi-Tenant SaaS Single-Tenant SaaS On-Premise Pay-per-useLicensed OpExCapEx & OpEx Off-premiseOn-premise Managed by vendor Managed by Customer Vendor scheduled maintenance Customer scheduled maintenance PublicPrivate

39. © 2010 Oracle39 Summary

40. © 2010 Oracle40 Oracle Leadership in Cloud Computing Oracle provides most complete, open and integrated cloud vision, strategy and offerings in the industry Cloud is the evolution of capabilities Oracle has been working on for more than a decade: grid computing, virtualization, shared services and management systems Oracle offers: -Technology to build private clouds or run in public clouds -Applications deployed in private shared services environment or via public SaaS

41. © 2010 Oracle41© 2009 Oracle – Proprietary and Confidential41