a project report on orgniziation study of oracle

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Organisational Study IT INDUSTRY PROFILE Introduction Companies in and outside the information technology (IT) industry employ information technology workers. While one might think of the typical IT worker as employed by a major software company or systems developer, the reality is that nine out of t en IT workers are found in banks, insurance companies, manufacturing plants or other non-IT businesses. A new survey by the Information Technology Association of America (ITAA) shows that not only are IT workers found mostly outside the IT industry, but that the outlook and prospects for the two groups is likely to be far different. In previous years, characterized by double digit growth and anxious investors betting on the next new thing, careers inside the IT industry appeared to be the way to go—at least for those on the professional fast track. Much has changed since 2001, even as the economy slowly recovers and the overall size of the IT workforce approaches its historic high point of 10.4 million. The employment footing outside the IT industry seems surer, less turbulent. Non-IT companies are more likely to hire according to plan, far less likely to move jobs overseas, more apt to increase—not cut—compensation. Whether non-IT companies offer IT workers long-term career advantages or just a temporary “port in the storm” remains to be seen. IT companies are hard pressed by customers to field cost Babasabpatilfreepptmba.com 1

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Page 1: A project report on  orgniziation study of oracle

Organisational Study

IT INDUSTRY PROFILE

Introduction

Companies in and outside the information technology (IT) industry employ information

technology workers. While one might think of the typical IT worker as employed by a major

software company or systems developer, the reality is that nine out of ten IT workers are found in

banks, insurance companies, manufacturing plants or other non-IT businesses. A new survey by

the Information Technology Association of America (ITAA) shows that not only are IT workers

found mostly outside the IT industry, but that the outlook and prospects for the two groups is

likely to be far different. In previous years, characterized by double digit growth and anxious

investors betting on the next new thing, careers inside the IT industry appeared to be the way to

go—at least for those on the professional fast track. Much has changed since 2001, even as the

economy slowly recovers and the overall size of the IT workforce approaches its historic high

point of 10.4 million. The employment footing outside the IT industry seems surer, less turbulent.

Non-IT companies are more likely to hire according to plan, far less likely to move jobs overseas,

more apt to increase—not cut—compensation.

Whether non-IT companies offer IT workers long-term career advantages or just a temporary

“port in the storm” remains to be seen. IT companies are hard pressed by customers to field cost

effective solutions. The pressure on IT companies to cut costs is clearly reflected in this survey.

This survey is a continuation of the ITAA series of reports on the IT workforce. Since 1997,

ITAA has tracked employer demand for IT workers. In the run up to the year 2000, IT talent was

scarce and demand exceeded supply. Because of the talent crunch, ITAA focused on the skills

most demanded by employers and the education and training alternatives for gaining those skills.

With job market conditions changing, ITAA’s survey has evolved to explore how trends like

offshore development may be changing the employment landscape.

This survey reports findings in nine areas:

• Total IT workforce size

• Future demand for IT workers

• Demand in specific job categories

• Hiring and layoff activity

• Success at hiring to plan

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• Skills attainment

• Recruitment

• Offshore development

• Compensation

MAJOR PLAYERS

IBM strive to lead in the invention, development and manufacture of the industry's most

advanced information technologies, including computer systems, software, storage systems and

microelectronics.

http://www.ibm.com/ibm/us/

Computer Associates International, Inc. (NYSE: CA), one of the world's largest management

software companies, delivers software and services across operations, security, storage, life cycle

and service management to optimize the performance, reliability and efficiency of enterprise IT

environments. Indeed, our solutions touch many areas of everyday life, from ATM transactions to

airport security to online sales, customer service and medical information. http://www.ca.com/

As the world's third-largest independent software provider, SAP delivers business solutions to

more than 28,200 customers in more than 120 countries around the world. We owe our success to

the experience and expertise of our employees and the quality and effectiveness of our solutions.

It's no wonder the best-run businesses run SAP.

http://www.sap.com/company/index.epx

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http://www. m icrosoft.co m /traincert / .

Founded in 1975, Microsoft is the worldwide leading software, services and Internet

technologies for personal and business computing. The company offers a wide range of

products and services designed to empower people through great software – any time, any

place and on any device.

The Oracle Corporation is the world's largest enterprise software company. For more than 25

years, Oracle has worked on ways to help its customers manage critical information. The

company has built the only unbreakable database, with 15 international security

evaluations. Oracle was the first software company to move its business application

products to the Internet (www.oracle.co m ).

Siebel offers 23 industry-specific applications and more than 100 industry-specific solution sets.

These pre-built solutions contain best practices and business processes to address the unique

business needs and challenges of your industry.

Siebel industry solutions minimize customization, enable rapid deployment, and significantly

reduce total cost of ownership. http://www.siebel.com/

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Cisco Systems is the worldwide leader in networking for the Internet. Cisco is committed

to working with educational institutions around the globe to ensure that today's students master

the necessary skills for success in the Internet economy. http://www.cisco.co m /edu .

Dice Inc. (Nasdaq: DICE, http://about.dice.co m ) is the leading provider of online recruiting

services for technology professionals. Dice Inc. provides services to hire, train and

retain technology professionals through dice.com, the leading online technology-focused job

board.

The ITT Technical Institutes are leading providers of technology-oriented postsecondary

degree programs, serving approximately 31,000 students. The 70 campuses located across

the U.S. offer the information technology disciplines of Computer Network Systems,

Multimedia, Software Applications and Programming and Web Development, Technical

Project Management for Electronic Commerce is offered online (http://www.itt-tech.ed u ).

SRA is a leading provider of information technology services and solutions - including

strategic consulting; systems design, development, and integration; and outsourcing and

operations management - to clients in national security, health care and public health, and civil

government markets. (www.sra.co m ).

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TRENDS

Study Findings

The total IT workforce peaked in size in 2000. The economy shed 500,000 IT jobs in 2001,

caused largely by the stock market reverses and consequent investor flight, the elimination of

many dot.com and telecom firms (and the high tech businesses supporting those firms), large-

scale capital expense reductions, the Year 2000 “overhang” of new systems and software

implemented to replace older, date vulnerable assets and the recession.

The IT workforce appears to have bottomed out at the start of 2002, with small but steady

quarter to quarter gains since then (See Figure 1).

Figure 1

Workforce

10.4

10.3

10.2

10.1

10

9.9

9.8

9.7

Baseline 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003

The U.S. economy begins 2003 with 10.3 million IT workers, up 4.2 percent from the start of

2002 (but less than one percent from last quarter). ITAA calculates workforce size by netting

out the total number of IT workers hired and dismissed in the survey period from its baseline

year measurement. Comparing quarter to quarter, the economy added 86,406 IT workers in the

first three months of the year. While that is good news, the net gain in jobs is actually smaller

than year-end 2002, where employers hired 97,118 more people than they released.

The picture presented by these numbers is a marketplace slowly reapportioning its human

resources (Figure 2). Gains have been made not so much in response to companies adding new

workers but to a slow down in the rate at which workers have been let go.

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INDIAN IT INDUSTRY PROFILE

The Indian software Industry has grown from a mere US $ 150 million in 1991-92 to a

staggering US $ %.7 billion (including over $ 4 billion worth of software export) in 1999-

2000. No other Indian industry has performed so well against the global competition.

The annual growth rate of India’s software export has been consistently over 50% since

1991. As per the projections made by the National Association of Software and service

Companies (NASSCOM) for 2000-01 (April 1, 2000 – March 31, 2001), India’s software

export would be around $ 6.3 billion, in addition to $ 2.5 billion in domestic sales.

Today, India exports software and services to nearly 95 countries around the world. The

share of North America (US & Canada) in India’s software export is about 61%. In 1999-

2000, more than a third of Fortune 500 companies outsource their software requirements

to India.

NASSCOM’s survey during 1999-2000 indicates a reversal in the mode of services

offered by India. In 1991-92, offshore services accounted 5% and on-site service 95% of

the total exports. However, during 1999-2000 offshore services contributed over 40% of

the total exports.

INDUSTRY INFRACTURE

ANNUAL TURNOVER NO. OF COMPANIES

Above Rs. 1000 Cr. 5

Rs 500 – Rs 1000 Cr. 5

Rs 250 – Rs 500 Cr. 15

Rs 100 – Rs 250 Cr. 27

Rs 50 – Rs 100 Cr. 55

Rs 10 – Rs 50 Cr. 220

Below Rs 10 Cr. 2483

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The NASSCOM – McKinsey report on India’s IT Industries

According to NASSCOM-Mckinsey report, annual revenue projections for India’s IT

Industries in 2008 are US $ 87 billion and market openings are emerging across four

broad sectors, IT Services, Software Products, IT Enables Services and e-Businesses thus

creating a number of opportunities for Indian Companies. In addition to the export

market, all of these segments have domestic market components as well

Other key findings of this report are:

Software & Services will contribute over 7.5% of overall GDP growth of India.

IT export will account for 35% of the total exports from India.

Potentials for 2.2 million jobs in IT by 2008

IT Industry will attract FDI of US $ 4.5 billion.

Market capitalization of IT shares will be around US $ 225 billion.

PROJECTED REVENUES – 2008

($ US Billion)

India

Based

India

Centric

Sub-Total

(International

)

Domestic Total 1998

IT

Services 23 7* 30 8.5 38.5 2.1

Software

Products 8 2 10 9.5** 19.5 0.6

IT-enabled

Services 15 2 17 2 19 0.4

e-Business

4 1 5 5 10 0.2

Total

50 12 62 25 87 3.3

Exports of $50 billion in 2008

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* Legacy/Client server, ERP and Package work and Internet all have different

proportions of work outside India where revenue are not export revenues.

** Resale of imported products included.

Promotion of IT – Government Incentives:

With the formation of new ministry of IT, Govt. of India (GOI) has taken a major step

towards promoting the domestic industry and achieving the full potential of the Indian IT

entrepreneurs. Constraints have been comprehensively identified and steps taken to

overcome them and also to provide incentives.

Thus for example, venture capital has been the main source of finance for the software

industries around the globe. However, the majority of the software units in India are in

the small and medium enterprise sector and there is a critical shortage of venture capital

kind of support. In order to alleviate this situation and to promote the Indian IT industry,

the GOI has set up a National Task Force on IT and Software Development to examine

the feasibility of strengthening the industry. The Task Force has already submitted it

recommendations, which are under active consideration. Norms for the operations of

venture capital funds have also been liberalized to boost the industry. The GOI is also

actively providing fiscal incentives and liberalizing norms for FDI and raising capital

abroad.

Recently, an It committee was set up by the Ministry of Information Technology, GOI,

comprising of non-residential Indians (NRI) professionals from the United States to seek

expertise and advice and also to step up U.S. investments in India’s IT sector. The

committee is chaired by Minister of Information Technology,GOI, and the members

include Secretary, Ministry of Information Technology and a large number of important

Indian American IT entrepreneurs.

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The group will:

Monitor global IT development and refine Indian IT policy to meet global

requirements. Specifically, this will help angel investors, venture creators and

incubation

Promote the growth of human resource development in the IT sector with the aim

of creating quality-based education.

Promote R&D in the sector by identifying thrust areas and drawing up a blueprint

for action.

India’s most prized resource in today’s knowledge economy is its readily available

technical workforce. India has the second largest English-speaking scientific

professionals in the world, second only to U.S. It is estimated that India has over 4

million technical workers, over 1832 educational institutions and polytechnics, which

train more than 67,785 computer software professionals every year. Government of India

is stepping up the number and quality of training facilities in the country to capitalize on

this extraordinary human resource. It is the knowledge industry that will help take the

Indian economy to a sustained higher rate of growth and the policy makers are full aware

of this.

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HISTORY OF ORACLE CORPORATION

Almost thirty years ago, Larry Ellison saw an opportunity other companies missed when

he came across a description of a working prototype for a relational database and

discovered that no company had committed to commercializing the technology. Ellison

and his co-founders, Bob Miner and Ed Oates, realized there was tremendous business

potential in the relational database model--but they may not have realized that they would

change the face of business computing forever.

Today Oracle (NASDAQ: ORCL) is still at the head of the pack. Oracle technology can

be found in nearly every industry around the world and in the offices of 98 of the Fortune

100 companies. Oracle is the first software company to develop and deploy 100 percent

internet-enabled enterprise software across its entire product line: database, business

applications, and application development and decision support tools. Oracle is the

world's leading supplier of software for information management, and the world's second

largest independent software company.

Oracle has always been an innovative company. It was one of the first companies to make

its business applications available through the internet--today, that idea is pervasive. Now

Oracle is committed to making sure that all of its software is designed to work together--

the suite approach--and other companies, analysts, and the press are beginning to

acknowledge that Oracle is right. What's in store for tomorrow? We will continue to

innovate and to lead the industry--while always making sure that we're focused on

solving the problems of the customers who rely on our software.

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Time Chain

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VISION STATEMENT:

Principles of the Information-Driven Enterprise

Adhering to three principles has saved Oracle more than US$1 billion in operating costs

—so far. With these principles, which are incorporated into the design of our software,

we have coordinated and streamlined all our business processes worldwide

Simplify: Speed information delivery with integrated systems and a single database

Standardize: Reduce cost and maintenance cycles with open, easily available components.

Automate: Improve operational efficiency with technology and best practices

At Oracle, we believe that our customers get more from their information by using

Oracle's software and services and applying these principles. Many have already

improved their ability to use information and IT as strategic assets and are now able to

share data and processes, measure results for continuous improvement, align

stakeholders, and communicate a single truth to all their constituents.

SUMMARY OF ORACLE BUSINESS VALUES

Certain core values are essential to Oracle’s business:

INTEGRITY: Oracle employees demonstrate honesty and sound ethical behavior in all

business transactions and personal integrity in all dealings with others.

MUTUAL RESPECT: Oracle employees consistently treat individuals with respect and

dignity.

TEAMWORK: Oracle employees work together as a team for the collective interests

Of Oracle.

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COMMUNICATION: Oracle employees share information widely and effectively with

each other, except when confidentiality is required.

INNOVATION: Oracle employees seek innovative and creative approaches to problem

solving.

CUSTOMER SATISFACTION: Oracle employees consistently treat customer

satisfaction as a top priority.

QUALITY: Oracle employees make excellence and quality a part of day-to-day work

processes and seek continuous improvement in all that they do.

FAIRNESS: Oracle employees are committed to dealing fairly with customers,

suppliers,

and one another.

COMPLIANCE: Oracle employees comply with all laws and regulations that govern

Oracle’s business.

BUSINESS CONDUCT: Oracle employees observe the standards that have been

established by Oracle and act ethically in their approach to business decisions.

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Oracle in the Community Mission Statement

Oracle as a corporation, and Oracle employees as individuals, works actively to improve

the quality of life for people and address community needs. By preferring to solve

problems, rather than managing their consequences, we take action to effect positive

change in our communities.

About Oracle Diversity

Oracle's diversity vision starts with cultivating an environment that is inclusive of all

employees. Individual differences present us with opportunities to examine business

issues from varying perspectives. Incorporating these different viewpoints gives us

greater agility and creativity.

To effectively compete on a global scale, we believe it will take the strength of a unified

workforce fully engaged in meaningful work. Valuing diversity -- by using effective

communication skills and demonstrating mutual respect -- is simply good business. At

Oracle, we can make our diversity vision the way we do business every day, world-wide.

Oracle believes in a workforce comprised of qualified individuals with ample support

opportunities. To this end, we promote our Equal Employment Opportunity and diversity

recruitment programs, and provide continuous training and mentoring to our employees.

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Corporate Governance at Oracle Corporation

The Board of Oracle Corporation has throughout its history developed corporate

governance practices to fulfill its responsibility to Oracle Corporation stockholders.

Although recent events involving corporate accounting fraud has brought much attention

to corporate governance principles, having good practices in place is not novel at Oracle.

The composition and activities of the Company's Board of Directors, the approach to

public disclosure and the availability of ethics and business conduct resources for

employees exemplifies the Company's commitment to good corporate governance

practices, including compliance with new standards.

As part of these practices, the Board has adopted the following Corporate Governance

Guidelines to help ensure that it has the necessary authority and procedures in place to

oversee the work of management and to exercise independence in evaluating Oracle

Corporation's business operations. These guidelines allow the Board to align the interests

of directors and management with those of Oracle Corporation's stockholders. These

guidelines are subject to future refinement or changes as the Board may find necessary or

advisable for Oracle Corporation in order to achieve the above objectives.

Oracle continually applies good corporate governance principles to multiple areas of the

Company. In addition to these guidelines Oracle has had a Code of Ethics and Business

Conduct since 1996, which was recently modified in 2001. The Board has also adopted

charters for each of the following standing Board Committees: Finance and Audit

Committee, Independent Committee, Committee on Compensation and Management

Development, and Nomination and Governance Committee.

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Oracle Executives

Lawrence J. Ellison has been Oracle's Chief Executive Officer and a director since he co-founded the Company in June 1977. Mr. Ellison served as Chairman of the Board from May 1990 until October 1992.

Safra A.Catz has been a member of Oracle's Board of Directors since October 2001, serves on Oracle's Executive Management Committee, and is responsible for global operations.

Gregory B. Mafei has been a member of Oracle's Board of Directors since June 1995 serves on Oracle's Executive Management Committee and is also an Executive.

Charles E. Phillips, Jr. has been a member of Oracle's Board of Directors since January 2004, serves on Oracle's Executive Management Committee, and is responsible for field.

Oracle Board of Directors

Dr. Michael J. Boskin: Professor of Economics at Stanford University Jeffrey Berg: Chairman and Chief Executive Officer of International Creative

Management. Joseph Grundfest: Professor of Law and Business at Stanford Law School  Donald L. Lucas: Venture capitalist since 1960  Jack F. Kemp: Co-director of Empower America and former member of the US

Congress.  Hector Garcia-Molina: Professor of computer science engineering, Stanford

University  H. Raymond Bingham: Executive Chairman of Cadence Design Systems, Inc.

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The Oracle in India story

The Beginning

More than fifteen years ago, before India became recognized as the dynamic force in

information technology that is known to be today, Oracle was one of the first

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multinational software companies to set up operations in India. Beginning with a

distributorship through Tata Consultancy Services in 1987, the company established

direct operations with a liaison office in 1991, and in 1993 formed Oracle India Private

Ltd., a wholly-owned subsidiary of Oracle Corp., focused on the sales and marketing of

Oracle software in India. In recognition of the significant pool of highly educated

software development engineers based in India, Oracle opened its India Development

Center (IDC) in Bangalore in 1994. This early commitment to the country marked

Oracle's vision for India as both a domestic market and a center for research and

development. The company became the first multinational company to establish core

software development operations in India to support its global product development

strategy and to address the needs of the local market. Initially, the India Development

Center took on development work on a project basis for different development divisions

as determined by the company's headquarters in Redwood Shores, California. As word

spread throughout the company of the India team's record delivery time of development

projects that met the highest standards of quality, the IDC was tasked with more strategic

projects and increasingly demanding requirements. Today Oracle has its India

Development Centre located at Bangalore and Hyderabad and sales and marketing offices

across six Indian cities.

A Turning Point

In 1996, the India development team was challenged with taking on a strategic research

and development project. Ultimately the team's success on the project would propel the

IDC into the development spotlight at Oracle. The India team was given three months to

develop the first version of what would become the basis of Oracle's Internet computing

technology, driving the shift to simplified, low-cost computing machines which could

access information stored on larger, professionally managed servers.

With no additional resources, the IDC, having been asked only to show version one of the

technologies, delivered instead a second-generation version three months to the day from

the start of the project. Concurrently, the team also met all deadlines and quality

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standards for the other 16 projects with which the IDC was tasked with at that time. The

world-class development abilities of the India development team were impressed upon

the highest levels of the company, garnering praise and recognition from Oracle founder

and CEO, Larry Ellison. This became a turning point for the India organization,

transforming the India Development Center into a growth engine, integral to the future

and vision of the world's largest enterprise software company. From that point forward

the India Development Center was integrated into Oracle's global software development

organization, working on the latest technology for Oracle customers around the world. At

the same time, Oracle's increasing success in the country established the company as the

dominant provider of database and enterprise software to the government and corporate

sectors in India.

Oracle India Factsheet

1. Oracle has been operating in India for more than 15 years.2. Oracle is one of the largest multinational employers in India with over 6,700

employees.3. India is Oracle's fifth-largest market in Asia in terms of revenue.4. India accounts for Oracle's largest research and development investment outside

the United States.5. India also hosts several of Oracle's global divisions and services including global

consulting, global support, Oracle On-demand, Internet sales and financial accounting and analysis.

6. The entire Oracle product family - Oracle Database 10g, Oracle Application Server 10g, Oracle Collaboration Suite and Oracle E-Business Suite are available in India. Oracle Database 10g supports transactions and interfaces in 13 major Indian languages including Assamese, Bengali, Gujarati, Hindi, Kannada, Malayalam, Marathi, Oriya, Punjabi, Telugu and Tamil.

7. Oracle is committed to the Indian market through its extensive network of more than 200 channel and alliance partners in India under the Oracle PartnerNetwork, including iflex Ltd., Infosys, Satyam, Sonata, Tata Consultancy Services and Wipro.

8. Oracle currently has more than 6000 technology customers and 400 applications customers

9. India is home to more than 220,000 members of Oracle's online developer community, Oracle Technology Network.

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Oracle India Milestones

1987 Oracle Corp. begins operations in India through a distributorship with a local partner.

1991 Oracle establishes a liaison office to better serve customers.

1993 Oracle forms a wholly owned subsidiary focused on the sales and marketing of Oracle software in India.

1994 Oracle opens the India Development Center (IDC) in Bangalore, becoming one of the first multinational software companies to set up a development center in India.

1996 IDC successfully delivers the first version of Oracle's Internet computing technology.

1998 Oracle India establishes a second development center in Hyderabad dedicated to developing enterprise business applications

2002 Business Today- Hewitt survey recognized Oracle as one of the best employers in India.

2003 Oracle and HP launch an "E-Governance Centre of Excellence" in Gurgaon to support E-Governance initiatives by central, state and local government bodies in India.

2003 Oracle India launches Oracle Collaboration Suite, Oracle E-Business Suite Special Edition and Oracle Database Standard Edition One.

2004 Oracle India grows to more than 6,700 employees. Recognized among the top 25 best employers in the Hewitt - CNBC Best Employers Award

ORNAGIZATION STRUCTURE

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MANAGING DIRECTOR

PUBLIC SERVICEDirector – Public Srvice

FSIGeneral Manager-Sales

TELCOGeneral Manager-Sales

MANUFACTURINGGeneral Manager-Sales

GENERAL BUSINESSGeneral Manager-Sales

ALLIANCE & CHANNELSDirector- Allc. & Channels

E BUSINESSSr Director - eBusiness

CC & R Director – CC & R

ORACLE DIRECT

SALES INTERACTION CENTREGenaral Mannager

PRE SALES

SALES CONSULTINGDeveloper Sales ConsultingManager, Oracle Direct

CONSULTINGDirector - Consulting

EDUCATIONDirector - Education

SUPPORT SERVICESr Director - OSS

HUMAN RESOURCEDirector – HR

FINANCEAdmin.

MARKETINGDirector - Marketing

LEGALLegal Councel & Co. Secretary

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Oracle India Organization Culture:

Oracle promotes a culture that can be best described by the following behaviour

Achievement focused

Humanistic and valueing diversity

Collaborative

Innovative and flexible

Taking responsibility

Accountability (doing what customer say customer’ll do)

Working with on going change and ambiguity

Committed to ongoing self learning

Underpinning and embedded within these cultural trait are our core value of

Trust, Respect, Integrity, Innovation, Customer Centricity and Value Creating

Organization.

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Oracle people management processes are designed to support and reinforce our values

and culture. Oracle’s Selection, Induction, Performance & Recognition processes

incorporates and reinforces its value and culture. Its professional and management

development programmes and tools support the ability to individualy lead and champion

our values and culture. At an organizational level Oracle Corporation has a number of

programs in place to develop its culture and measure the extent to which Oracle

Corporation are “living our values”.

Oracle India Values and Human Resource

Values at Oracle Corporation

The reputation of an organization can be its greatest asset or its greater liability. Oracle

Corporation’s reputation is largely determined by how it does business. How Oracle

Corporation does its buseiness, is a reflection of values inportant to them. Having shared

corporates values that act as a filter, or provide a framework to guide employee in making

decisions. Understanding Oracle Corporation’s corporates values will assist both

personally and professionally align employees with the corporate direction. Every

individual has his or her own personal values, without having shared values (the

corporate filter) Oracle Corporation would be missing that overall framework to guide

our responses, behaviour and decisions.

Let’s look at our individual values and explore each further:

Respect

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Trust

Customer Centricity

Integrity

Innovation

Value Creating Organization

Training programs at Oracle Corporation.

Human Resource development is a part of the company’s overall business strategy and

links employee’s development with the company’s continous improvement efforts.

Training gives employees the skills to continue their learning and transfer of knowledge

or skills from one work situation to another.

Objectives of training activities:

To delelop knowledge and skills of employees

To help employees perform productively and effectively in their current job

assignment

To prepare employees for challenging work involving higher responsibility

All trainings will be based on need identified either during the annual performance

assessment or recommendation by the Functional Head / Manager. Training could be for

technical, professional or personal development of employees. Employees may also be

nominated for employees and management development programs run by Corporate HR

at various locations in the world based on identified needs.

Oracle Corporation offers the following training programs:

Internal Training

The company organises internal programs to address the needs of the employees.

Includes formal training and development programs, vendor training or any other training

for the purpose of acquiring skills and knowledge. Various In-House training will be

available to suit the training needs of various lines of business. Information regarding in-

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house course is usually dessiminated through the Head of Deapartment and/or Human

Resource. Employes who would like to attend the in-houseproduct training need to obtain

approval from their managers and the Head of the Department.

Overseas Training

Employees may be nominated to attend training overseas with dues approval.

Public Scheduled Courses

Employees could attend the local short courses for some specific specialized skills.

Mandatory Training Programs

Data Privacy Awareness Training.

Code of Ethics & business Conduct Course

Oracle Corporation Acceptable Usage Policy

EEO/AA

Oracle's Equal Employment Opportunity: We believe in treating each employee and

applicant for employment fairly and with dignity. We base our employment decisions on

merit, experience, and potential, without regard to race, color, national origin, sex,

marital status, age, religion, disability, veteran status, or sexual orientation. Our Equal

Opportunity policy is founded on the philosophy that our employees and applicants for

employment must be treated equitably. We do not discriminate based on personal

preference or physical characteristics, and our experience confirms that supporting

policies and practices with a strong commitment to equal employment opportunity is a

good business practice.

Recommended Training

Oracle offers a suite of training products to enhance the personal development of all

employees within a diverse work place. Tailored to meet the needs of our distributed,

global organization, this program is presented through various media, including

facilitated workshops as well as multimedia self-study courses. Because we view

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diversity as a business reality, diversity concepts and values are integrated into all

employee and management development training.

Mentoring

Oracle actively supports the practice of mentorship. We see mentoring as a business tool

to grow and transfer skills and knowledge among employees. Mentoring relationships

and programs range from formal and structured to informal information sharing and

networking.

Recruiting

Oracle has embarked on an aggressive recruitment strategy and conducts an average of

more than 50 recruitment fairs per year. With the excellent pool of talented IT skills in

India, Oracle prospective employees undergo a competitive evaluation process. The

company extends employment offers only to those candidates that meet rigorous quality

standards and have excellent qualifications, skills, aptitude and passion. Oracle received

applications from more than 200,000 candidates over an average 18-month period.

Seeking the best the industry has to offer, Oracle hires less than one percent of the

applicants. Ensuring a challenging and rewarding environment, Oracle India offers an

unparalleled opportunity to define the next wave of technology and business innovation.

New recruits are inducted into Oracle India with comprehensive technical and soft skills

training, including team building and managerial effectiveness. Committed to employee

development, Oracle India makes every effort to make employees successful through a

range of innovative programs including professional development, internal focus groups,

work-life balance initiatives, and employee focused health programs. Through these

initiatives and a continuing focus on the latest technology and learning, attrition rates are

less than half the industry average.

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Oracle Diversity identifies job fairs, recruiting events, community and professional

organizations, which target women, minorities, people with disabilities and other under-

represented groups to recruit qualified applicants nation-wide.

Employment Relationship

Oracle makes no express or implied commitment that your employment will have a

minimum or fixed term, that Oracle may take adverse employment action only for cause,

or that your employment is terminable only for cause. Either you or Oracle may terminate

the employment relationship at any time for any reason. Additionally, Oracle may take

any other employment action at any time for any reason. No one at Oracle may make,

unless specifically authorized in writing by the Board of Directors, any promise, express

or implied, that employment is for any fixed term or that cause is required for the

termination of or change in the employment relationship.

Steps to hiring a candidate:

Regular Employee

Post your open position internally on Oracle iRecruitment. The position must be

posted internally for 14 days before an offer can be generated.

To hire a candidate from an external recruiting firm you must submit a requisition

to pay for the placement fees.

Interview consistently and fairly by asking similar questions of each applicant

Candidates should fill out the Offer Letter Request, via the Web Offer Letter

Generator under Candidate Offers in Self Service Applications.

A Background check will be initiated at this time. Background checks are

required for all new and rehired employees, unless they have a completed

favorable background check with Oracle within the previous 12 months or have a

valid Government Issued Security Clearance issued within the previous two years.

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HR will generate an offer letter once HR Offers receives all of the following:

completely approved offer request, valid jobpost number (in offer request), and

complete applicant tracking paperwork

Once the offer letter is sent to the candidate, you will receive an ‘Offer Sent’

notification via email.

If your candidate accepts, go to your Notifications in Self Service Applications

and select the "Accept" decision button to complete the workflow. The new hires

can start employment with Oracle. Hiring managers should respond to the "New

Hire Start Date" email sent by the HRSSC, Please respond with his/her official

Oracle start date, so that we may complete the hiring process.

If your candidate declines, go to your Notifications in Self Service Applications

and select the ‘decline’ decision button to complete the workflow.

Oracle Temporary

Submit Applicant Tracking paperwork: an Applicant Tracking Form and

resume(s) to your HR Representative.

Obtain appropriate approvals through the Workflow.

Once the final approvals reach HROFFERS, a Temporary Hire Packet will be sent

to the hiring manager for their temporary employee. The hiring manager is

responsible for making sure the packet is filled out and returned to Oracle HR

If your candidate accepts, HR Operations will enter your Oracle Temporary into

the database, assign an employee id number, and generate an Oracle Alert.

Internal Transfer

Minimum Time In Position Guidelines

Role Minimum Time in Position

Individual Contributor &

Management12 months

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India 24 months*

*India has a 24-month requirement until further notice.

It is the hiring manager's responsibility to discuss the following areas with the

releasing manager before completing the "Transfer/Internal Job Offer" form in

Oracle Self Service HR:

o Employee's performance

o Effective Date of Transfer

o Transfer Process Details

Transferring employees may not begin work in their new positions until the

transfers have been fully approved. The manager is to release the employee within

thirty days from the initiation of the "Transfer/Internal Job Offer" form.

International Transfers

An international transfer is a "permanent" transfer to an Oracle entity outside of

the employees’ home country. Please log into Self Service Applications, click on

Candidate Offers, and complete the template. Before an International Transfer is

complete all required approvals must be obtained.

BUSINESS CONDUCTS

General Guidelines

Oracle sets moral standards and upholds ethical business practices.

Ethical Standards

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At Oracle Corporation one must understand and conform to law, to custom, if within the

law, and to human values. Oracle's values of integrity, mutual respect, teamwork,

communication, and innovation are the overriding principles that guide us in our business

conduct. Because one’s behavior on the job and in conduct of Oracle business is a direct

reflection on the company, one should avoid or correct any situation in which your

actions might adversely affect, publicly embarrass, or discredit Oracle.

Insider Trading

Executive Officers of the Company continue to be prohibited from engaging in any

speculative transactions, such as short sales, puts, calls, straddles or similar transactions.

Extending/ Receiving Business Coutesies

Oracle recognizes that accepted business practice and common courtesy sometimes

require you to extend entertainment, favors, and small gifts to prospects and customers.

Export Copliance

Federal controls regulate exports of products and technical data from the U.S. and the re-

export of these items from one foreign destination to another. Oracle products are subject

to these controls.

Protecting Confedential Information

Besides its people, Oracle's most important assets are its intellectual property: copyrights,

patents, trademarks, and trade secrets. When you joined Oracle, you signed a Proprietary

Information Agreement obligating you to safeguard company and customer confidential

information and trade secrets. The agreement precludes you from directly or indirectly

using or disclosing, except as necessary in the ordinary course of business, confidential

information obtained during the course of your employment. These obligations continue

throughout your employment and after you leave.

Conflict of Interest

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A conflict of interest describes any circumstances that could cast doubt on your ability to

act with total objectivity regarding Oracle's interests. You should avoid financial,

business, or other relationships, which might oppose Oracle's interests or might conflict

with the performance of your duties.

Expenses Reporting and Accounting

Oracle adheres to the highest standards of financial reporting and disclosure, and we

expect the same of you. All information and reports you submit-such as timesheets,

vacation reports, product order or shipment reports, expense reports, purchase

requisitions-should be accurate to the best of your knowledge. False, misleading, or

dishonest reporting inside or outside the company is strictly prohibited.

Records Retention Policy

The Oracle Records Retention Policy and Schedule sets forth the guidelines governing

your retention and disposal of Oracle records. This policy and schedule is intended to

ensure that Oracle maintains company records in accordance with applicable legal,

regulatory and business requirements. You are responsible for understanding and

complying with the Records Retention Policy and Schedule, which is located on Legal's

webpage.

Travel and Entertainment

Oracle Travel (managed by Carlson Wagonlit Travel) provides Oracle employees with

complete business travel services, including agent-assisted reservations and e-Travel

support and fulfillment.

WORK ENVIRONMENT

Workplace Security

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Oracle cares about your safety. We maintain security services at most of our facilities and

limit vendor and visitor access within the company. Security personnel can assist you in

most emergency situations, report incidents, and resolve lost-and-found issues.

Workplace Safety

Oracle supports an active health and safety program. We expect you to support these

efforts by reporting any unsafe conditions or practices, helping to minimize hazards and

accidental injuries and responding to directives and procedures in an emergency.

No Smoking

The use of tobacco products in the workplace is prohibited at all facilities. Employees

may smoke in designated outdoor areas only.

Substance Abuse

Oracle is concerned about situations where the use of alcohol or drugs interferes with an

employee's health or performance, adversely affects the health, safety, or performance of

others, or becomes detrimental to Oracle's business.

Flexible Work hours

Each of us runs on a different internal clock. Flexible work hours enable you to work

when you are at your best when you can produce your highest quality and quantity of

work. This flexibility, available to most full-time employees, allows you to efficiently

schedule personal business, commute time, and volunteer commitments around your

work responsibilities. Your manager must review and approve any flexible work-hours

arrangement you propose.

Telecommuting

Oracle supports telecommuting, on a part- or full-time basis, with your manager's

approval. Your ability to telecommute depends on the nature of your job and whether

telecommuting promotes departmental goals as determined by your manager.

Telecommuting may be a temporary or long-term work option or used for a specified

time to accommodate a special project.

Transportation Program

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You can take advantage of vanpool and carpool options, daily shuttles that operate

between Oracle buildings and CalTrain stations, transit ticket sales, and bike lockers. We

also offer Transportation Hotline and supply transportation information in the lobby

kiosks.

Oracle in the Community

Oracle believes in upholding its responsibility to the communities and environments in

which we work. As part of this responsibility, Oracle sponsors programs that allow

employees and the company to contribute time and resources to a variety of social

interests.

BENEFITS ORACLEFlex

Oracle offers a comprehensive benefits plan, called Oracleflex that enables eligible

employees to choose the benefits and coverage levels that best meet their needs and those

of their eligible dependents.

Employee Stock Purchase Plan

Oracle's Employee Stock Purchase Plan lets you purchase Oracle common stock at a

discounted market price. By enrolling in the plan prior to any offering period, you may

contribute up to 10% of your cash compensation (salary, bonus, and commission) through

payroll deductions.

Employee Assistence Program

EAP services may help with stress, depression, and difficulties with children, divorce,

alcohol abuse, drugs, job worries, marital, financial, or legal problems.

Life Solution Program

A free employee benefit designed to help you balance your work, family, and personal

responsibilities. The LifeSolutions Program is an easy way for you to receive practical

advice, useful materials and referrals, including:

o Information on a variety of topics, such as becoming a parent, understanding the process of adoption, caring for elderly relatives or relatives with disabilities, managing your time effectively, or creating a living will;

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o Customized referrals to confirmed openings at child and elder care programs;

o Personalized reports about public and private schools, colleges and financial aid; and

o Practical advice on a variety of topics.

Workers Compensation

This insurance is provided to protect you if you are injured or become ill and the injury or

illness arises out of and in the course of your employment. Workers' Compensation

insurance provides benefits including medical care and wage-loss reimbursement which

is paid by Oracle.

Vacations

Employees working at least 35 hours per week accrue 13 days of vacation a year (which

calculates to approximately 4.33 hours per pay period) for your first three years of

employment, and 18 days a year (6 hours per pay period) after three years.

Holidays

Oracle offers seven paid holidays a year. They are:

New Year's Day

Memorial Day

Independence Day

Labor Day

Thanksgiving (2 days)

Christmas

COMPENSATIONS

Pay Schedule

Oracle pays you semi-monthly, on the 15th and the last business day of the month.

Applicable deductions, including federal, state, and local income and payroll tax

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withholdings are taken out of each payment. If your employment terminates, you are paid

through the last day you work.

Timesheet

All Non-exempt employees are required to record all hours, including starting and ending

work time and meal periods in order to be properly compensated. They also must report

all exception time including, overtime (if any), vacation taken, jury duty pay, military

pay, and shift premiums each week.

Overtime

An employee works in a nonexempt position; he or she is eligible for overtime pay. The

employee's manager must authorize overtime work in advance.

Focal Salary Review

This process facilitates compensation budgeting, accurate competitive analysis, and

timely review of all employees. Salary increases are based on your productivity and

contributions, company performance, market comparisons with competitor companies,

and other factors Oracle may wish to consider at its sole discretion.

Performance Bonus Program

Twice a year, in June and December, Oracle management reviews all eligible employees'

performance for possible cash bonus rewards. Bonuses are not considered entitlements.

Bonuses are discretionary. They are included as earnings in your paycheck.

Patent Award

o Oracle maintains an active Patent Award Program. Report potentially

patentable developments to Patent Operations in the Legal Department for

evaluation as soon as practical. Information on patents and the patent

program can be found at http://legal.us.oracle.com.

Employee Referral Program

Oracle's Referral Bonus program pays the following amounts to those

who refer people who are hired for work at Oracle:

Salary Amount for new hire Amount of Referral Bonus

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$0-$39,999 $500

$40,000 and up $1000

The referral bonus amount may be different if the new hire's division is running a special

referral bonus program.

EMPLOYMENT POLICIES

Employment Eligibility

As a new employee, you must submit a completed, verified Form I-9 within three

working days of your starting date, or you cannot continue to work. Any Oracle Manager

or Human Resources employee may review your identity and work eligibility documents

and sign your form

Employment Catagories

Most positions at Oracle require full time commitment. Some jobs, however, are better

suited for part time or temporary employment.

Open Communication

To enhance open, honest, and regular communication, we encourage one-on-one

meetings between you and your manager. These meetings are an opportunity for mutual

learning and information exchange, and they provide a chance to explore ideas and

issues. Feel free to discuss candidly complaints and concerns with your manager to

prevent or quickly resolve them.

Equal Employment Opportunities

We believe in treating each employee and applicant for employment fairly and with

dignity. We base our employment decisions on merit, experience, and potential, without

regard to race, color, national origin, sex, gender, marital status, age, religion, disability,

or sexual orientation.

Harassment

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Oracle is committed to providing a work environment that is free of discrimination.

Oracle does not tolerate harassment of any kind, including harassment based on sex,

gender, race, color, religion, age, mental or physical disability, national origin, marital

status, veteran status, sexual orientation, or any other characteristic protected under

federal or state law or local ordinance. Unlawful harassment may take many forms,

including verbal, visual, or physical conduct that creates an offensive, hostile, or

intimidating work environment.

Personal Relation In Work Place

Personal relationships between employees, although not encouraged, are acceptable as

long as the employees maintain workplace conduct consistent with effective and efficient

work performance. Personal relationships in the workplace should be mutually

consensual and should not affect Oracle's business in any way

Non-Oracle Employment

We strongly discourage you from seeking additional employment outside of Oracle.

Before accepting outside employment, review the Proprietary Information Agreement

you signed when you joined the company.

Personal Information

Your personnel file contains personal and job-related information about you. We use this

information for internal purposes only. We will not release it, except as required by law,

to any external person or agency without your written permission.

International Transfers and Assignments

International assignments are Company initiated and may be short or long term,

extending from three months to three years, with a possible extension to four years. All

international assignments require the appropriate senior management approvals.

Relocation

Oracle pays for certain relocation expenses if they are included as part of your written

employment offer. Relocation benefits are generally specified in the offer letter or

transfer approval. All relocation reimbursement are subject to current IRS eligibility

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guidelines. You should consult your tax advisor about the potential tax implications of

your move.

MARKETING & FINANCIAL

STRATEGIES

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Oracle Corporation Marketing Strategy for SMBs

The biggest challenge for Oracle Corporation is to tap the SMB segment, where there

seems to be an enormous growth potential and the segment not being tapped well by the

major players. Oracle has formed strategies for entering this segment and the same can be

discussed as below:

Oracle into SMB Segment

E-Business Suite Special Edition of the Oracle Corporation will be a channelonly

product. The vendor being applications-focused company and key element of its SMB

applications market on its ability to mobilize the channel. The company’s commitment to

SMB partners rests on the foundation built over the past few years.

Challenges:

The development of a more comprehensive partner road map that defines

rewards and commitments at each level of the partner program specific to this

initiative.

Greater emphasis on mentoring new partners in the sales consulting and

implementation processes via training and the creation of close working links

between new partners and its consulting group.

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New SMB Application Strategy

Oracle has made significant structural and procedural shifts in its partnering strategy and

channel field practices, that include broader partner access to Oracle’s product line and

higher levels of accountability for field execution. Oracle is making commitments to

partners in the success of specific partner initiatives meaningful to the company’s

strategic direction. That’s what makes the company’s E-Business Suite Special Edition

channel strategy so important.

How Does It Work?

When defining channel versus direct sales territory, most application vendors use a

"hard deck" defining channel territory as the ability to sell to any company below a

preset annual revenue threshold (e.g., SAP defines the territory for small business

partners as any company having less than $75 million in annual revenue).

The bases of this initiative are:

Partners have exclusive access to the E-Business Suite Special Edition

implementation tools and supporting collateral. Direct sales reps cannot sell the

product and must work with partners to sell and implement the product.

Partners have exclusive access to customers with less than $75 million in annual

revenue (considered one of the target audiences for the offer). If partners find an

opportunity with a customer above that revenue threshold, they can either attempt

to position/sell the Special Edition version with an Oracle field sales rep or

provide the lead to an Oracle rep to position the full product (the more likely

scenario). In providing the lead to Oracle, the partner qualifies for a referral fee

and can position it to fulfill the related services.

Partners are provided access to Oracle Accelerators (OAs), a set of

implementation best practices built around specific business processes that

partners can use to speed deployment.

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Benefits for Partners:

1. Benefit from having access to an open market, with no competing partners or

interference from the Oracle direct sales force in accounts under $75 million.

2. Each partner is assigned a dedicated account manager that is tasked with and

compensated for helping partners close deals.

3. The brand and tools to help partners enter new markets and win more clients,

specifically smaller ones that would not have previously been prospects for E-

Business Suite Special Edition.

4. Allows a partner to reduce traditional implementation processes to a level that

supports SMB customer expectations around time and cost.

5. Allow partners to refocus resources on winning new accounts and expanding

customer footprints through upselling and cross-selling additional Special Edition

modules.

6. Smaller customers make decisions fast; still smaller accounts are unaccustomed to

the more formalized sales and implementation approach of multifunctional,

businesswide applications. Partners will point out that these customers don’t have

the same rigor as larger ones in evaluating and implementing software to their

specific needs.

7. The partner must educate the customer at each stage with strong project

management skills.

Oracle is also making its Application Demonstration Services (ADS) available to partners

for support in running demos out of its Redwood Shores facility. This is something

partners have been after for years and will allow them to perform a wider array of demos

more quickly in order to improve close cycles.

SMB Market Segmentation: Oracle has segmented the SMB market into three tiers: the

lower tier (companies with less than $100M in annual revenue), mid-tier (companies

from $101M to $500M in annual revenue), and upper tier (companies with more than

$500M in revenue). The SMB products sold to each of these Segments are as follows:

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Oracle E-Business Suite Special Edition will be available to the low end through

the growing Special Edition Partner Channel.

Oracle’s newly acquired EnterpriseOne product will be available to companies in

the low and mid-tiers through the former J.D. Edwards Partner Channel.

Oracle E-Business Suite will be available to companies in the mid- and upper tiers

through the Oracle direct sales force.

Conclusion: SMBs should certainly consider Oracle when they are looking for new

applications. The products and associated tools and services are very competitive on

functionality and price, but the marketing and channels are still a work in progress.

In the field, Oracle is likely to struggle with selling, supporting, and positioning

overlapping products. This is never easy, and Oracle’s salesforce and field management

have grown accustomed to direct selling a single product line. Choosing which product

and which channel are best for a particular opportunity, and then explaining it to the

prospect, can be difficult.Oracle marketing has a major hurdle. In order to help grow the

SMB and midmarket business, it has to address the following issues:

The perception that Oracle’s applications and technology are designed for very

large enterprises

The lack of market visibility of its SMB products and channels

The confusion associated with positioning multiple product lines and channels in

overlapping size and vertical segments

E-Marketing

Enterprises are recognizing e-marketing's role in their businesses, and they are looking

for solutions that will integrate online marketing with other marketing activities, instead

of approaching the Internet as a "siloed" business segment. There's a greater emphasis on

addressing e-marketing as part of an integrated marketing solution, and less focus on e-

marketing-related functionality — for example, affiliate marketing and online

advertisement management — which is more-frequently addressed by function-specific

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point solutions. Therefore, several vendors that are not traditionally considered e-

marketing players, but have their e-channel functionality transparently woven into their

multichannel marketing solutions.

With Siebel Systems and Oracle well-positioned to enter this quadrant in the next 12

months. Market leadership requires not only the ability to execute, but also a compelling

vision that drives the market, supports customer demand for competitive differentiation

and forces other vendors to seek to match what leaders are doing.

FINANCIAL SUMMARY

Oracle has consolidated its financial systems into a single instance supported by four

shared service centers, initially as part of a much-publicized cost-reduction drive. As a

result of this project, Oracle also improved corporate governance by standardizing its

financial processes.

Oracle's transition from 52 separate financial systems to a single global instance

supported by shared service centers has been a challenging and, at times, painful project

due to the magnitude of the change to established systems and processes. Cost savings

have been realized and the intangible benefits have also been significant. ). Additionally,

Oracle's CEO was focused on the single-instance strategy and the optimal use of the

Oracle E-Business Suite. Other organizations without these advantages may face

additional challenges to achieve the same benefits as Oracle when consolidating their

financial systems.

Objective 

Oracle initiated a project in 1998 to rationalize its application infrastructure. A key part

of this program was to consolidate the financial systems into a single instance of Oracle

Applications 11i with a global chart of accounts, implement standardized financial

management processes and centralize financial functions into shared service centers. In

this project, Oracle hoped to realize significant economies of scale by reducing

infrastructure and staff costs, while at the same time improving control of financial

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processes, reducing close times and improving data integrity. This would also give senior

executives better visibility into business performance.

Approach 

Oracle's approach to consolidating its financial management systems and processes had

three main elements.

1. Design and implement a global chart of accounts in a single instance of the

Oracle E-Business Suite.

2. Standardization of all financial management processes.

3. Development of shared service centers to centralize transaction processing.

Results 

Oracle identified a possible staff reduction of 25 percent and a potential 30 percent

reduction in costs in the financial function. The increased emphasis on value-added

services, governance and compliance means that Oracle has achieved a substantial part of

its target but not the full goal of 30 percent cost reduction in finance.

In addition to the tangible cost savings, Oracle realized many intangible benefits,

including:

Global visibility into financial information, giving managers a clearer

understanding of their performance and reducing their demands for information

from the finance function.

Data quality and consistency has significantly improved through the combination

of a single instance and self-service applications (for example, employees enter all

their expenses online, and consultants enter their time sheets via the Internet).

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The definition and implementation of standardized financial processes meant that

audit costs were reduced and operating reviews were conducted more effectively,

making operating reviews and audits easier

Oracle increased the value provided by the finance function. Once the shared

service centers were live, Oracle realized there was an opportunity to create

value-added services in certain process areas. For example, staffing in the general

ledger area has actually increased because Oracle added more qualified staff to

focus on higher-value activities, such as balance sheet management (this includes

proactively managing cash flow and treasury positions.

Balance Sheet for Oracle Corporation for the last 3 years

FINANCIAL SUMMARY

2002

USD in

thousands

2003

USD in

thousands

2004

USD in

thousands

 Net Sales   9,673,000  9,475,000  10,156,000

 EBITDA   3,885,000  3,767,000  4,103,000

 EBIT   3,506,000  3,423,000  3,869,000

 Net Profit   2,224,000  2,307,000  2,681,000

 Intangibles   446,000  345,000   

 Long Term Invest.   406,000  233,000  60,000

 Fixed Assets   987,000  1,062,000  1,068,000

 Current Liabilities   3,960,000  4,158,000  4,272,000

 Long Term Debt   298,000  175,000  163,000

 Total Shareholder Eq   6,117,000  6,320,000  7,995,000

 Cash   3,095,000  4,737,000  4,138,000

 KEY RATIOS 2002 2003 2004

 Net Profit Margin   22.99  24.35  26.40

 ROE   35.89      

 Cur. Ratio   2.2000  2.2200  2.6500

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 Debt/Capital   0.0300  0.0300  0.0100

PRODUCTS

AND

SERVICES

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Oracle Corporation Products and Services

1. ORACLE DATABASE

2. ORACLE APPLICATIONS

3. ENTERPRISE MANAGEMENT

4. MIDDLEWARE

Oracle Database

With Oracle Database 10g, the first relational database designed for Grid Computing,

your information is always available and secure. Oracle Database 10g lowers the cost of

ownership through automated management while providing the highest possible quality

of service. And with Release 2, Oracle builds on Release 1's foundation to further

improve efficiencies and reduce the cost of information management. Oracle is the best

choice for large enterprises, small and midsize businesses, and departments alike.

Enterprise Edition

Oracle Database Enterprise Edition offers industry-leading scalability and reliability in

clustered as well as single-system configurations. It provides comprehensive features for

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online transaction processing (OLTP) and business intelligence and delivers the lowest

total cost of ownership.

Standard Edition

Oracle Database 10g Standard Edition is a full-featured database for small to midsize

businesses and departments that require performance, availability, and security in a low-

cost package. Available on single or clustered servers (up to four processors in total),

Oracle Database 10g Standard Edition offers fast installation, simple configuration, and

automated management.

Standard Edition One

Oracle Database Standard Edition One is a full-featured database packaged for small to

midsize businesses and departments. As part of the complete Oracle Database family,

Oracle Database Standard Edition One offers full compatibility and scalability to tackle

your biggest challenges and is available for only US$149 per user (minimum five users).

Lite Edition

Oracle Database Lite is a complete, integrated, secure database for building, deploying,

and managing mobile applications for a broad range of mobile devices.

Real Application Clusters

Oracle Real Application Clusters (Oracle RAC), an Oracle Database option product, can

run packaged or custom applications unchanged in a cluster of low-cost servers.

 Oracle Applications

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Oracle’s business is information — how to manage it, use it, share it, protect it. Oracle

applications deliver the information foundation and complete functionality you need to

grow your information-driven business. Oracle applications enable information-driven

business processes that connect and automate your organization

Corporate Performance Management Solutions

Oracle’s Corporate Performance Management and applications enable organizations to

achieve world-class performance by aligning the right information and resources to

strategic objectives. Oracle’s integrated solutions provide a complete understanding of

the business and communicate business metrics throughout the organization to drive

accountability for performance at all levels. Built-in business intelligence delivers

personalized, relevant information that allows business leaders to evaluate risk and make

adjustments to minimize risk.

Customer Relationship Management Solutions

Oracle offers three, best-in-class CRM solutions that are specific to your businesses'

individual requirements. Regardless of your industry focus, your size of business, or your

individual selling model, Oracle has just the solution you need for leveraging and using

enterprise information for maintaining focused and profitable customer relationships.

Oracle Financial Management Solutions

Oracle Financial Management applications empower finance organizations to drive

enterprise value with better information for targeting growth and a platform for

sustainable compliance. Oracle Financial Management provides:

Visibility

Improve transparency of business, financial, and compliance performance. Drive business

performance and enable better management decisions through more accurate forecasts,

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visibility into relevant and timely management information, and a closed-loop plan-to-

measure process.

Control

Strengthen financial discipline and governance best practices. Confidently and efficiently

comply with company and regulatory policies using control-based business and

compliance applications.

Efficiency

Improve business processes, sustain compliance, and reduce costs. Reduce complexity,

risk, and costs by consolidating information and streamlining and standardizing global

processes.

Oracle Human Capital Management Solutions

Achieving workforce excellence requires HR to transform from a predominantly

administrative department to a function that develops and delivers programs to improve

worker efficiency, effectiveness, and productivity. HR transformation requires adoption

of a comprehensive Human Capital Management (HCM) strategy to drive programs

development, process redesign, and technology implementations. Oracle HCM Solutions

enable effective HCM strategy execution to align the workforce with strategic objectives

and achieve workforce excellence.

Oracle Procurement Solutions

Oracle offers integrated suites of procurement applications that can dramatically cut all

supply management costs. Oracle applications enable organizations to reduce spend on

all categories of goods and services, streamline procurement processes, and enforce

policy compliance.

Oracle Project Management Solutions

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Oracle applications for enterprise Project Management enable project-centric

organizations and departments to establish core operational processes that support full

project lifecycle management—across operations and finance—from project selection,

planning and staffing, through execution, charging, and analysis. Oracle provides a

single, accurate view of all project-related activities so you can choose and prioritize the

right projects, assign the right resources, proactively streamline execution, and track

profitability via accurate budgeting, forecasting, and billings/chargebacks.

Oracle Supply Chain Management Solutions

Regardless of your industry focus-high technology, automotive, aerospace and defense,

life sciences, etc.-your type of business, or your individual supply chain model, Oracle

has just the right supply chain management solution for you

Oracle Enterprise Manager

Oracle Enterprise Manager with Oracle Grid Control provides a single, integrated

interface for administering and monitoring applications and systems based on the Oracle

technology stack. Enterprise Manager includes complete monitoring, performance

management, distributed database and application server administration, enhanced

diagnostics, automated tuning, and an architecture that allows administrators to manage

from anywhere.

MIDDLEWARE

Oracle Fusion Middleware is a family of standards-based, customer-proven products

including Oracle Application Server and related tools and options, Oracle Collaboration

Suite, and Oracle Data Hubs. Oracle Fusion Middleware enables organizations to get

more out of their existing investments and more out of middleware—delivering the

broadest and most tightly integrated infrastructure software offering available.

Oracle Fusion Middleware Family

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Application Server (All Editions) Developer Suite JDeveloper

BPEL Process Manager Files Portal

Business Intelligence Forms and Reports TopLink

Collaboration Suite Identity Management    

Data Hubs Integration

Oracle Application Server

Oracle Application Server 10g offers a comprehensive solution for developing,

integrating, and deploying your enterprise's applications, portals, and Web sites, all based

on a powerful and scalable J2EE server, complete business integration and business

intelligence suites, and best-of-breed portal software. As the only platform designed for

grid computing and providing full Service-Oriented Architecture (SOA) lifecycle

support, Oracle Application Server gives you unmatched scalability, availability,

manageability, and security.

Oracle Integration

Oracle Integration provides everything you need to integrate data, enterprise applications,

and business processes within your organization and with trading partners. Built on

Oracle's grid infrastructure, it delivers enterprise-strength performance, scalability, and

manageability. And with tight integration with the Oracle E-Business Suite, it is the best

product for integrating Oracle applications with third party applications, B2B protocols,

and Web services.

Oracle Services

Globalization. Simplification. Standardization. Automation. Innovation. These five

principles underlie everything we do at Oracle.

Oracle Services help you get the most from your technology investment. Working with

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you every step of the way, Oracle provides a variety of services that span the complete

solution life cycle. Whether you need consulting, financing, outsourcing, support or

education, you can get it from the experts who know Oracle best.

Oracle Consulting

Oracle Consulting builds creative solutions for modern businesses. Drawing on industry

best practices and specialized software expertise, Oracle consultants help you assess your

current infrastructure, create your enterprise computing strategy, and deploy new

technology.

Oracle University

Learn Oracle from Oracle. Oracle University delivers the expert-led training to benefit all

our Oracle communities through their Oracle relationship.

Oracle on Demand

Oracle on Demand delivers Oracle software as a service to Oracle customers around the

world. Your Oracle software is managed by Oracle experts—at Oracle, at your location,

or at a third party—to improve the performance, reliability, scalability and security of

your information. Increase the efficiency of your business processes and systems with

Oracle's industry-leading technology and let Oracle On Demand handle your upgrades,

patches and maintenance. Now you can focus staff on strategic projects, deploying

resources and technology for better user productivity and satisfaction.

Oracle Support

Oracle Support is the largest and most advanced support organization in the world. The

global team of over 8,000 developers and 6,000 support professionals drives better results

for our customers by ensuring that Oracle technology and applications deliver optimal

performance.

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No other support organization can match Oracle's breadth and depth of technical

expertise, advanced support technologies, or global reach. Ongoing updates and

enhancements keep your products and systems up-to-date and running smoothly.

Technical information and expert advice help you resolve problems quickly and

effectively so that your Oracle technology and applications are always available and

always running at peak performance. Ultimately, Oracle's Support Services offer you a

superior ownership experience.

Oracle Financing

Oracle financing and leasing offerings are competitive, comprehensive—and one of the

easiest ways to affordably acquire the right solution for your business.

We offer quick approvals and simple documentation, and you can buy your entire

solution of hardware, software and services from multiple vendors using a single

payment structure from Oracle Financing.

Oracle Corporation Customers

Top Organizations in India run Oracle software

Banking

ICICI, HDFC Bank, State Bank of India, Punjab National Bank, UTI Bank, IDBI Bank

Insurance

General Insurance Corporation, Life Insurance Corporation, National Insurance

Corporation, New India Assurance

Telecommunications

BSNL, Bharti, Hutch, MTNL, Satyam Infoways, Spice

Manufacturing

Coates India, Cummins, Hindalco, Hindustan Levers Limited, Indal, Kirloskar Oil

Engines Limited, Lakshmi Machine Works, Maruti Udyog Limited, MRF Tyres

Government

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Airport Authority, Indian Airforce, Andhra Pradesh Government, Central Bureau of

Investigation, Gujarat Government, Indian Railways, Police departments, West Bengal

Government, Coimbatore Municipal Corporation

Major Customers - WorldWide

Oracle Database

Amazon.com Ohio Savings Bank

Colgate-Palmolive Roman, Inc.

Dell Eurostar Southwest Airlines

Eastman Chemical

Company Talk America

Mainstream

Technologies

USGS Water Resource

Discipline

Oracle Applications

Atari LG.Philips LCD

C-COR Corp OTE

EMC) Pella

GE Energy POSCO

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John I. Haas USDOT

Oracle Enterprise Manager

BT Group plc. Student Loans Company

Dell GEDIS Swiss Federal Railways

Deutsche Bank Telstra

Electronic Arts TUSC

Fannie Mae USGS Water Resource Discipline

SWOT ANALYSIS

STRENGTHS

1. A well known global brand in software technology.

2. It’s the world’s second largest software company after MicroSoft and world’s

leading supplier of software for information management.

3. It is one of the first companies to make its business application available through

internet.

4. It has strong finincial position, with $ 9 Billion as its revenue in the last finincial

year.

5. It is the number one brand in the database market.It is the market leader with

39.1% of the market share.

6. It is the biggest ‘Enterprize Brand‘in the world market.

7. It has managed to cut its IT cost by almost 80% in the next fiscal year.

8. Oracle Corporation technology can be found in nearly every industry around the

world and in offices of 98 of the fortune 100 companies.

9. It has been the market leader in Relational Database

10. Oracle brand is strong enough to drive sales beyond the core database system,

even through database sales represent 70% of Oracle's revenue. Business

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applications represent 20%, middleware 8%, and other software products such as

tools 2%

11. In the area of database scalability and reliability, Oracle is leading the market with

its Real Application Clusters, Gartner analyst Donald Feinberg said. RAC lets

customers use Oracle on large clusters or grids of low-cost servers, gaining

reliability and scalability at a reasonable cost.

12. "They have their hands on the tiller, they understand what market segment they

are selling into, and they are executing with strong financial management" of the

company.

WEAKNESS

1. Brand Image of being an ‘Enterprize Organisation’ is making it hard for Oracle

Corporation to penetrate into the small and medium businesses.

2. It depends heavily on North America market.

3. Oracle Strong in Databases, But It Must Execute On Applications.

- Oracle, arguably the dominant database vendor, is bent on expanding its

sales in middleware and applications. But any stumbles in its plan to

merge three sets of business applications will benefit its chief competitor,

SAP.

4. The sometimes-disjointed air of Oracle's initiatives is reflected in the fact that the

11i series of its E-Business application suite hasn't yet been certified internally to

run on the Oracle 10g database system, which has been out for a year, Comport

pointed out.

5. While Oracle is consistently strong in database sales, its application revenue has

been "up and down, erratic,"

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6. Oracle products apply the patches to supported versions. If older editions are in

use, such as 7.x or 8.0x, they advised companies to either upgrade immediately or

switch to a rival database.

7. Oracle Needs To Come Clean On Vulnerability

- Although keeping mum is Oracle's standard policy, the analysts took the

company to task for not spelling out the consequences of not applying the patch,

and more important, whether the vulnerabilities affect older, non-supported

versions of Oracle's Database Server, Application Server, and Enterprise

Manager.

"At worst, [this means] records in every Oracle database you own could be

vulnerable,"

. "System administrators don't have enough information to decide which servers

to prioritize or which data is most vulnerable."

OPPORTUNITIES

1. Small and Medium Businesses(SMBs) market is the biggest opportunity for

Oracle, because this market is untapped and recent studies shows that SMB’s will

be increasing their IT spending more than any other business sector.

2. There would be 20% increase in the demad for ERP and SCM products in the

World Marke. Oracle Corporation has plans to capatalise on these opportunities.

3. "The challenge for Oracle is to move from individual products into an overall

message" that sums up what it does for the customer, Comport said. That message

hasn't emerged yet as Oracle engages in acquisition battles, such as the hostile

takeover of PeopleSoft Inc. and the bidding war for retail software supplier Retek

Inc.

4. "The challenge for Oracle is to move from individual products into an overall

message," one that sums up what Oracle does for the customer.

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THREATS

1. IBM is the biggest competitor of Oracle Corporation in Large Business Sector.,

especially in Database and Application Server market.

2. In SMB’s, Oracle Corporation is facing still competition from Microsoft, the

leader in the market space.

3. Misconceptions like Oracle are expensive and not user friendly is the biggest

threat for Oracle Corporation in SMB market.

4. Oracle remains the dominant database vendor, but will face challenges as it tries

to expand its middleware and applications sales. The slightest misstep when

trying to merge its recent acquisitions will only serve to benefit its key

competitor, SAP.

RECOMMENDATIONS / SUGGESTIONS

A) SMB market is a highly upcoming market, thus Oracle Corporation can leverage

on this opportunity.

B) Oracle Corporation should partner with more ISV’s (Independent Software

Vendors) for better distribution of its product.

C) Oracle Corporation must extensively promote awareness programs to clear the

misconcepetion about its Product, which it is only for big enterprises.

D) Oracle Corporation’s image in the large business segment can be used to

influence small and medium businesses that have large business as their clients.

This will help Oracle Corporation penetrate in small and medium business

segments.

E) Oracle Corporation should device schemes and strategies to tackle competitors in

both large and small business segments.

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F) Industries in the various territories that have not yet been penetrated must be

looked with appropriate marketing strategies and captured.

G) The price perception of Oracle Corporation’s products must be removed from the

minds of SMB market through various activities such as mass media, journals,

technology fest, i-seminar, etc.

COMPETITORS ANALYSIS

Oracle Corporation being the leaders of database vendors of the world, the biggest

competition comes in when there is a competition with its primary product, the database

market.

Recent reports from both IDC and Dataquest paint a picture of the database market, with growth projected to average around 6% per year. This limited growth as a bad sign for Oracle Corporation, since a great deal of our revenue comes from our database product.

Although the overall market may be growing conservatively, there is a pronounced shift in the allocation of the spending within that market – a shift that favors Oracle’s database.

The basicsThere are three basic facts that lay at the root of this analysis

1. the existence of a shift in the overall database market,

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2. the technical platforms involved in this shift,3. the cost of the shift to individual organizations

The shiftThe Unix database market, which is based on propietary hardware, has been losing market share, while that segment of the market that is based on low cost, commodity hardware (the x86 architecture) has been gaining. The driving force behind the shift is easy to see – x86 servers are typically dramatically less expensive than other server architectures.

The destinationsOnce an organization decides they will try and capture the benefits provided by commodity hardware, their next decision is which operating system to use on this low cost hardware. There are two chief destinations – Microsoft Windows and Linux. Of course, the Linux option is relatively new, but the existence of choice in this area has changed the position of Windows as the only platform that can leverage the cost advantages of commodity servers to one of two choices.

The processThe price/performance advantages of using an x86-based server have been clear for many years. If this is so, why is the Unix market segment still so large? After all, the Unix database market, even today, after several years of decline, is still almost 30% of the overall market.

Answer : Migrating to another database platform is an expensive and somewhat risky

proposition. Even if the database migration process itself is straightforward, there are still the

additional factors of acquiring expertise and honing administrative capabilities on another platform.

Most organizations do not make a migration decision lightly, even in the face of significant price benefits.

The questionThe database market is shifting. Migration is a resource intensive and somewhat risky task. Couple these two facts with one other, and you get an important determinant of the future direction of the market.

This final piece of the puzzle comes from a realization that Windows and Linux, as a platform for database servers, are relatively equal. Because of this equality, there is little

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reason why an organization would migrate from Windows to Linux, or Linux to Windows. The cost of the migration is still present, but the benefits are not.

This realization leads to the salient question concerning database market share in the future – which operating system is the target of more of these migrations? Since there is little reason to move from Windows to Linux, the destination of the moves is a decision that will affect the database market on an ongoing basis.

EvidenceThis chart also shows that Linux has been growing faster than Windows in terms of dollar amount. But neither of these comparisons can help to determine if people are moving from Unix to Windows or Linux.

You can determine the impact of migrations by comparing the overall growth of the Windows market and the *nix market1.

If the growth in the Windows platform were higher than the *nix platform, more people were moving to Windows from Unix than to Linux from Unix.

If the *nix market grew faster than Windows, the number would indicate that more organizations were moving to Linux than Windows. The next chart presents these numbers for the market for the past two years.

Keep in mind what this chart shows. This is not simply the growth in Linux, but that growth offset by the decline in the traditional Unix market.

ImplicationThe data is striking. In the course of two years, the growth in the combined *nix market went from being barely a third of the growth in the Windows market to being almost 25% more. Although this data is only from the past three years, Linux has only had an appreciable effect on the database market

1 The overall growth in database sales comes from both organic growth of existing databases on a platform as well as migrations. Since the overall market for

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0

100

200

300

400

Mill

ion

s

2003 2004

Source: Dataquest

Gross market growth

Windows

Linux

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since 20022. The relative newness of the Linux platform makes the results stand out in even sharper contrast – as Linux gains maturity and enterprise acceptance, the swing may very well become more pronounced.

The implication presented by this number is clear - the destination of Unix migrations is shifting from Windows to Linux.

Vendor implications

IBMThe shift in the database market does not appear to help IBM’s position in the market. IBM is essentially tied with Oracle for the top market share, as of 2004. But the numbers from that year paint a disappointing story for IBM’s future prospects.

In 2004, most of IBM’s growth came from the mainframe, a platform they own and which is not the target of growth from migrations, and Unix. IBM’s sales increased over 4% on traditional Unix platforms, while the overall revenue for the platform decreased over 1%.

IBM did not do well on the target platforms for Unix migrations. For the second year in a row, IBM actually decreased their revenue on Windows. In 2004, IBM database products produced less than 85% of the revenue they produced on Windows in 2002, while the overall revenue for this platform grew 15% over the same period.

On Linux, IBM is faring even worse. Although their revenue on Linux increased by more than 61% on this platform over two years, this increase was dwarfed by the overall growth on the platform of almost 465%. The following chart compares relative market share on Linux for Oracle and IBM vividly illustrates IBM’s relative lack of success on Linux in comparison to Oracle.

With the database market undergoing a shift from traditional platforms to Linux and Unix, market share numbers demostrate that IBM is unable to take advantage of this shift. IBM’s market share has

Windows and *nix are approximately equal, and since the growth of a database is not platform-dependent, this type of growth should be approximately equal for the two platforms. If anything, this natural growth should be greater for Windows, since the Unix market place is mature and declining, while the Windows market is much younger, where more rapid natural growth takes place.2 In 2002, Linux only accounted for 1.4% of the overall market. By 2004, this percentage had grown to 8.4%.

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decreased from 35.7% to 34.1% in the past two years, and indications are that this erosion will continue.

MicrosoftMicrosoft, however, is much better positioned to benefit from the shift in database platforms. They own one of the targets of these migrations – Windows – and maintain a leading market share on that platform of 50.9%.

However, even dominance on Windows will not be enough for Microsoft to capture the top spot in the database market. Their strength on the Windows platform is offset by their lack of support for Linux. As the charts earlier in this report indicate, the database market is shifting to Linux more rapidly than they are to Windows, a trend that may very well accelerate as Linux becomes a more robust and safe choice.

If IBM’s slide in these key migration markets continue, Microsoft may become the number two database vendor, but they have little chance of claiming the top spot in the database market.

Oracle Although our traditional strength has been in the Unix market, our market share in the Linux arena is even better. Last year, Oracle captured over 80% of new Linux licenses. In addition, Oracle’s market share grew on the Windows platform.

Most importantly, Oracle’s ability to run on both target migration platforms makes them a safer choice than Microsoft. With IBM declining and Microsoft limited to Windows, Oracle becomes the logical selection as a migration target.

Even if, as Microsoft contends, the growth in Linux is due to migrations from Unix, Oracle will remain the leading database vendor by capturing the majority of these migrations, while Microsoft has to depend on the internal growth of databases on only the Windows platform, which is a much slower process. These simple facts point the way to Oracle’s continued role as the leading database vendor in the world. DB2 is slipping in the growth markets for database servers, and Microsoft has no solution for the Linux platform. Oracle’s continuing dominance over Microsoft is due to the combination of three factors

Oracle continues to have significant market share on the Windows platform Oracle completely dominates the Linux platform Even if Oracle cannot maintain it’s 81% market share in the Linux market, the

accelerating growth of this market as the target destination of Unix migrations

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will make Linux dominance more valuable than Windows dominance, giving Oracle an edge over Microsoft.

Oracle is the only major database vendor to see its revenue increase on both commodity hardware operating systems. By offering this popular choice, Oracle stands to benefit the most from the ongoing shift in the database market and maintain its dominant position.

The following is the statement of the market standing and the revenue earned over the

years by these top players in United States and also is shown the growth of these

organizations over the years and the proposed growth in the comin years with a graph

INCOME 2005 2004 2003 2002

MS $12,254,000 $8,168,000 $9,993,000 $7,829,000

Oracle $2,886,000 $2,681,000 $2,307,000 $2,224,000

SAP   $1,788,075 $1,356,776 $533,180

CA $11,000 $25,000 ($267,000) ($1,102,000)

IBM   $8,430,000 $7,583,000 $3,579,000

SIEBEL   $110,668 ($5,191) ($35,704)

SYBASE   $67,950 $87,266 ($94,669)

INCOME GR IN 03 GR IN 04 GR IN 05 GR IN 06

MS 28% -18% 50% 20%

Oracle 4% 16% 8% 9%

SAP 154% 32% N/A N/A

CA -76% -109% -56% -80%

IBM 112% 11% N/A N/A

SYBASE -192% -22% N/A N/A

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-250%

-200%

-150%

-100%

-50%

0%

50%

100%

150%

200%

MS Oracle SAP CA IBM SYBASE

YEARS

INC

OM

E G

RO

WT

H

GR IN 03

GR IN 04

GR IN 05

GR IN 06

Analysis through Porters Forces Model:

The competitive forces in the industry can be better veiwed with the help of Porter’s five-

force model for competitive strategy. These forces determine the intensity of competition

and hence the profitability and attractiveness of an industry. The objective of corporate

strategy should be to modify these competitive forces in a way that improves the position

of the organization.

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Intensity of Competition: For many of the firms in E-Business, the level of industry

competition is very high, but in other areas of the economy there are often low intensity

areas in which competitors are content to share along geographic or product niche lines.

The data base industry is a good example of a very high intensity competitive

environment. Oracle and IBM DB2 are fierce competitors with each holding about 30%

of the overall market. Microsoft SQL is the fastest growing database in this market, but

has about half the market share of the two largest competitors. Microsoft appears to be

growing at the expense of the smaller suppliers, creating a classic three horse race. On

the other hand the threat of new entrants into the database appears to be quite small. The

competitors are well established with an intense competitive position and huge installed

bases. The switching costs for someone who is already using en enterprise database are

huge. Reprogramming, conversion, and training costs are nearly prohibitive. An

organization has to develop a compelling reason to switch. Absent a game changing

strategy, there appears to be little likelihood of new entrants gaining a foothold in this

market.

Bargaining Power of the Customers: However, if the enterprise is acquiring a data base

for a new function that does not already have an entrenched system, the bargaining power

of the customer is quite large. With two firms (IBM and Oracle) battling for market

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leadership and another (Microsoft) trying to eat into their leadership, corporations are in

the driver’s seat in negotiations for new database procurements. Firms often employ a

diversification strategy to keep from being trapped by high switching costs. A firm may

decide to put some of their database systems on one supplier and the rest on another.

This usually leads to a little higher cost and complexity of operations, but it helps to keep

the switching costs down for additional procurements.

Bargaining Powers of the Suppliers The power of suppliers to the database industry

also appears to be quite small. Database producers do not depend upon suppliers for any

significant parts of their products.But again; suppliers can be vewied from two

perspectives, firstly, intellectual supply and secondly outsourcing. It is estimated an

overall 5% increse in the IT spending compared to 2004. A 3% rise will be seen in the

enterprise segment, marked by stong rise in the SMB segment.Cheif Information Officers

anticipate steady growth of hiring IT professionals.According to the Robert Half

Technology Hiring Index a net 12% increase in hiring is anticipated, this will be the

largest hiring since 2002.Therefore due to a steep rise in demand, the demand-supply

equillibrium will shift its locus.

Threat of New Entrants: With regard to database, applications and middleware, there is

no immediate threat as there is a large entry to barrier in terms of the size of the existing

players.The threat of new entrant is minimum at this point of time, until and unless there

is a technological revolution.

Threat of Substitute: These are not obvious at this time, but that situation is indeed

subject to change. To a certain extent the rise of the World Wide Web represented a

potential substitute for traditional databases. During the middle part of the 1990s, huge

quantities of corporate data were put on line in web formats. Much of the early material

was stored in static HTML files, but the trend is clearly back to databases. By putting the

information in databases, companies can personalize the customer’s experience with the

web site. There are now excellent tools for gathering the information from corporate

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Organisational Study

databases, assembling it into personalized web pages and then delivering the targeted

material to the users. This has opened up controlled access to huge legacy databases and

put the database back at the center of the eBusiness universe.

Therefore it can be ideally seen that only one of the forces is applicable at this point of

time. The other forces are not deterministic varibles while developing competitive

strategies.Oracle Corporation is critically placed, by adopting market consolidation

strategy thereby raising the entry barriers to new entrants and stifling the existing players.

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