2. Matthew C. Yearling Vice President Oracle Outsourcing Oracle Corporation

3. Get Better Service: Oracle Collaboration Suite Outsourcing

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

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

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

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

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

9. “ 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

10. “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

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

12. 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

13. The Solution

14. Oracle Collaboration Suite 10g Calendar E-mail Voicemail Files Search Outlook Fax Voice Wireless Web Web Conferencing

15. 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 Partner @Customer Oracle Manages: Availability Security Performance Change Problems

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

17. 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

18. 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

19. 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

20. Predictable Outsourcing Price Option$/User/Month* Oracle Collaboration Suite 10g @Oracle $12.50 @Customer $8.50 Email, Files, or Web Conferencing @Oracle $9.85 @Customer $6.85 Option$/User/Month* Oracle Collaboration Suite 10g @Oracle $12.50 @Customer $8.50 Email, Files, or Web Conferencing @Oracle $9.85 @Customer $6.85 * Minimums & additional priced options not included

21. Customer Case Study

22. 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

23. Infopia Merchant Flow

24. 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 Email System for Projected Growth  No File Collaboration Solution  No Calendaring System  Problems with 3 rd Party Demo Software

25. Oracle Solution  Oracle Collaboration Suite Outsourcing – Email – 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

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

27. How We Do It

28. 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

29. 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

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

31. Transition Initialization Production Implementation Sales Upgrade Outsourcing Lifecycle

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

33. 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

34. Automation

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

36. The End Result Being…

37. 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

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

39. What Analysts Are Saying

40. "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

41. "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 email systems, Collaboration Suite Outsourcing might be the right prescription." -Laurie McCabe Summit Strategies -Laurie McCabe Summit Strategies Summit Strategies

42. For More Information…  Visit us at: – www.oracle.com/outsourcing/cso www.oracle.com/outsourcing/cso  Infopia: – www.infopia.com

43. A Q & Q U E S T I O N S A N S W E R S

44. Please remember to compete the online survey….