1. Cloud Application Foundation App Server Market Segmentation

2. What is an Application Server?
Software framework for building Enterprise applications
App Server is the framing of a building
Provides a structure for other elements to be added to produce the desired functionality
Just like the construction industry specifies building standards, App Servers are designed to comply and interoperate with commonly accepted standard IT practices ….
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3. Oracle Cloud Application Foundation “Key” to Unlocking future Fusion Middleware Revenue
Traffic Director
Exalogic
Oracle Cloud
WebLogic Server
Coherence
Tuxedo
Virtual Assembly Builder
Foundation for Oracle Applications
Foundation for Fusion Middleware Solutions
Web
Social
Mobile
Commodity
User Engagement
Business Process Management
Content Management
Business Intelligence
Service Integration
Data Integration
Identity Management & Security
Development Tools
Cloud Application Foundation
Enterprise Management
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4. Oracle WebLogic Server: #1 in Market Share
IDC’s Worldwide Software Market Forecaster Reports:
39% Share for Oracle*
Oracle has increased its lead in application servers
Oracle’s growth is above that of the industry average
Number two player is growing in market-share below that of the industry average at 14.9%
Main point: If anyone still has doubts, IDC, another independent and extremely reputed analyst firm has concluded that Oracle is #1 in app server market share.
Script:
Also that Oracle has strengthened its lead in the market and that our growth is above the industry average. I think we can conclude with very high degree of confidence, based on analysis by these two extremely well reputed, independent analyst firms that not all app servers are created equal.
*Source: IDC, Worldwide Application Server 2010 Vendor Shares – Maureen Fleming – June 2011 – Based on total software revenue

5. Gartner Magic Quadrant: Enterprise Application Servers
For the past five years Oracle has been in the leader’s magic quadrant
In 2011, Oracle demonstrated superior execution and vision
This Magic Quadrant graphic was published by Gartner, Inc. as part
of a larger research note and should be evaluated in the context of
the entire report. The Gartner report is available here:
Source: Gartner, Magic Quadrant for Enterprise Application Servers – Massimo
Pezzini, Yefim V. Natis, Kimihiko Iijima, Daniel Sholler, Raffaella Faveta –
September 26, 2011

6. Cloud Application Foundation Key Differentiators#1
Standards Based Portability
Optimized for Engineered Systems
Multi Data Center Solution
Best of Breed Platform
Engineered / Commodity / Cloud
(Infrastructure is a customer choice)
Rapidly Growing Market Share
© 2011 Oracle Corporation – Proprietary and Confidential

7. Market Segmentation Oracle Products GlassFish/WebLogic Server SE
WebLogic Server EE,
WebLogic Suite
WebLogic on Exalogic
Oracle Products/Service GlassFish
Oracle Public Cloud
Oracle Products WebLogic SE
WebLogic Server EE
Small & Medium
Business
Medium Business
($200M - $1B in revenue)
Enterprise: Factory for
Simple Apps
Enterprise: Mission Critical
Multiple years in operations,
High QoS, Security, Manageability
Complex applications, business critical with customer/revenue impact
Use Open Source (free) technology
Would prefer to build on Cloud
Light Weight Container, Framework over Container
Cost/Density in Virtual Env.
Cheaper development using open source technologies
Light Weight Container, Framework over Container
Cost/Density in Virtual Env
Cheaper development using open source technologies
OPEX over CAPEX
Free Open Source Software (Liferay, Lucene, Tomcat, PHP,…)
App Servers considered Commodity
Spending on ADC and Virtualization
Extremely price sensitive ($2500/core market price)
Two-Tier Application Server Strategy
Cost a key factor – segmented by application complexity, app server features used and ‘ilites
Private cloud with focus on Density for packing many simple apps on virtualized server

8. Gartner Segmentation
Opportunity Oriented Projects (Internal/External Cloud Platform)
Rapid Application Development, Speed of deployment
Over Scalability, Availability or Manageability, even though often required once application is widely deployed
Mass Market Projects (Open Source, Internal/External Cloud Platform)
Typically simple Web Applications
Low cost, ease of deployment, support and management favored over richness of functionality, performance and scalability
Systematically oriented projects (EAS Sweetspot)
Complex applications, business critical with customer/revenue impact
Multiple years in operations, High QoS, Security, Manageability

9. Pick Your Battles Ours to Win Fight to Win May Not Be Theirs Anymore?
Mission critical (customer facing, Oracle Real Application Clusters Database, High Availability)
Complex application (uses Enterprise JavaBeans [EJB] technology, JMS)
Layered functionality (Oracle SOA, Oracle Coherence)
Oracle Applications (PeopleSoft, JD Edwards, Fusion Apps)
Fight to Win
WebLogic install base
Large deployment, non-mission-critical
Future opportunities for layered functionality
May Not Be Theirs Anymore?
Non-mission critical (employee portals, internal facing)
Simple Web apps (Servlets, small clusters)
Developer-driven
Small deployments
Work with your OD rep
FedEx
Deutsche Bank
Putnam
Avg. deal is <$60K
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10. Product Packaging and market trends
WebLogic Server SE
WebLogic Server EE
WebLogic Suite
Status: Low entry Java Server for non critical apps.
Competition (in order)
JBoss
Tomcat
SpringTC
Status: Credible default core Java Server for many Enterprise customers.
Competition (in order)
JBoss & OpenShift
SpringTC & Cloud Foundry
vCloud (Vmware or Cisco)
WAS on VMWare or zVM
Status: Low credibility as core Java server, deals mainly driver by the upper stack. RAC integration seems to change this trend.
Competition (in order):
JBoss & OpenShift
WebSphere

11. Summary: Why Standardize on WebLogic Server?
Reason #5: Powers Cloud
Reason #1: WebLogic Momentum with Customers
Reason #3: Application Aware Virtualization
Reason #4: Drive Innovation and Developer Productivity
Reason #2: Best Performance Ever
WLS
SOA Svc
Web
RAC
Web Cache
Oracle
IBM
Copyright © 2011 Oracle Corporation - Proprietary and Confidential