2. © 2004 Oracle Corporation Laurent Sandrolini Vice President Systems Platform Division Oracle Corporation

3. © 2004 Oracle Corporation UNIX/RISC Adoption Rates High-touch Pioneering implementation Hard to find skill set Detailed reference Medium-touch Experienced implementers Broader skill set Easier reference Mass-market enterprise Broadly available skill set No references required

4. © 2004 Oracle Corporation Skill Set Dispossession  Required skill set transfer, from mainframe skill sets  Very expensive process  Took a decade to complete Early 1990 ’ s MVS, VM, VSE, VAX/VMS Unix/RISC

5. © 2004 Oracle Corporation Proposed Dispossession  Compelling low-cost x86 architecture  Move to a Windows Server platform  Repeat of expensive skill set transformation Late 1990 ’ s Unix/RISCWindows Server

6. © 2004 Oracle Corporation Proposed Retention  Take advantage of low-cost x86 platform  Retain skill set investment  Leverage existing skill-set to lower cost deployment Early 2000 ’ s Unix/RISCLinux/x86

7. © 2004 Oracle Corporation Linux Adoption Rates High-touch Pioneering implementation Hard to find skill set Detailed reference Medium-touch Experienced implementers Broader skill set Easier reference Mass-market enterprise Broadly available skill set No references required

8. © 2004 Oracle Corporation Rapid Rate Catalysts  True enterprise-class support  No skill set dispossession  Deployment on low-cost commodity infrastructure  Higher consolidation vs. Unix/RISC fragmentation  True choice in supplier of the O/S and hardware  A complete ecosystem around Linux

9. © 2004 Oracle Corporation Linux at Oracle Global IT 2/3 of systems migrated to Linux Oracle R&D Applications + 10g =1,000 ’ s engineers Dedicated Linux Kernel Development Dedicated Linux Program Office Oracle On Demand 600+ Linux systems Deployed Hardened Linux Solutions

10. © 2004 Oracle Corporation Evolution of IT Mainframe Client-Server Internet Computing Departmental Servers

11. © 2004 Oracle Corporation “Today’s IT shops are criminally inefficient, running assets at a small fraction of their capacity.” Frank E. Gillett Forrester Research, October 2002

12. © 2004 Oracle Corporation The Experts on IT Today… “CIO’s report that server utilization is only 60%” - Forrester Research “75% of costs come from staffing & maintenance.” - Business Week “IT infrastructure is massively underutilized” - IDC “Companies can save 20% or more through consolidation” - Giga Research

13. © 2004 Oracle Corporation Traditional Deployments New application identified New system uniquely sized and configured += Unique System 1Unique System 2Unique System 3Unique System 4

14. © 2004 Oracle Corporation Traditional Deployments New application identified New system uniquely sized and configured += Unique System 1Unique System 2Unique System 3Unique System 4

15. © 2004 Oracle Corporation Problems with IT  Islands of computation – Configured for peak loads – Limited scalability – Availability < 99.x% – Fragmented security  Escalating costs  Affects all businesses  Decentralized management

16. © 2004 Oracle Corporation GRID The True Linux Opportunity

17. © 2004 Oracle Corporation New Opportunity: Standard Building Blocks Old Question: What size server does this new application need and what is the best server and O/S combination? New Question: How many standard building blocks does this new application need? 2 Processor4 Processor4 Node Cluster

18. © 2004 Oracle Corporation The True Linux Opportunity  Change the entire deployment model  Identification of standards consolidation as a true cost inhibitor  Driving the commoditization of the hardware platform  Delivering a lower operational cost to our customers

19. © 2004 Oracle Corporation Unique Convergence  Low-cost, high performing processors from Intel and AMD  Maturing and development investment in Linux  Clustering product offerings from Oracle  Global, enterprise-class support from Oracle  New deployment model with opportunity to provide leadership

20. © 2004 Oracle Corporation Oracle’s Leadership  Oracle Real Application Clusters – Unique clustering technology allowing any application to scale across a clustered architecture  Linux development and support model – Unique code-level support across the entire software stack – apps, database and O/S  10 g and enterprise grid with grid control – Automatic provisioning and deployment of compute resources to a specific task

21. © 2004 Oracle Corporation Foundation for the Grid is Oracle on Linux