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Oracle e-Business Outsourcing Overview John Honsa

Service Delivery Manager

Twin Cities Manufacturing OAUG March 18th, 2003

Current State of IT

<25%: Innovation

>75% Manage Existing Software

Software

Innovation

Manage Existing Software

Management

Software

Why? App Admin DB Admin Sys Admin HW Admin

Availability Security

Performance Problem

Change

But often this is the case…

Management

Software

App Admin DB Admin Sys Admin HW Admin

Availability Security

Performance Problem

Change

Software-as-Service On-Demand Computing

Servicing Software Online Services

Managed Services Application Hosting

Application Service Provider

Utlility Computing eBusiness on Demand

Evolution of the Industry

Traditional

IT (Operations, Management,

Administration)

Better Service Faster Service Lower Cost

Software Software

So, What is Oracle

doing?

eBusiness Suite Outsourcing Traditional @Oracle

Customer

®

®

®

®

®

Application Management

Database Management

System Management

Hardware Management

Application Product Support

Application Implementation Implementor Customer

Outsourcing Implementor

Transition

Initialization

Production Implement- ation

Sales New Customer

Upgrade

Outsourcing LifeCycle

E-Business Suite Outsourcing @Oracle

Ÿ But, customers wanted to have computers at their location…

®

Partner

Oracle Manages

Availability

Security Performance

Change Problems

eBusiness Suite Outsourcing @Customer @Oracle

Customer

®

®

®

®

®

®

Application Management

Database Management

System Management

Hardware Management

Application Product Support

Application Implementation Outsourcing Implementor

Outsourcing Implementor

eBusiness Suite Outsourcing

Application Management

Database Management

System Management

Hardware Management

Application Product Support

Application Implementation

@Customer

Customer

®

®

®

Outsourcing Implementor

®

®

®

Outsourcing Implementor

®

®

®

Outsourcing Implementor

@Oracle @Partner

Ÿ Large customers wanted to have more flexibility they need to add

–  Reports –  Integrations –  Forms –  …

Customers Wanted Flexibility…

App Support Implementation App Admin DB/AS Admin Sys Admin HW Admin

®

Partner

Oracle Manages

Availability

Security Performance

Change Problems

So We Added More Flexibility…

Ÿ 17 Classes Ÿ Configurations Ÿ Extensions Ÿ Modifications Ÿ Localizations Ÿ Integrations

®

C E M L I

App Support Implementation App Admin DB/AS Admin Sys Admin HW Admin

Partner

Oracle Manages

Availability

Security Performance

Change Problems

Why Oracle

Outsourcing?

Oracle Outsourcing: Benefits

App Prod Support Implementation App Admin DB/AS Admin Sys Admin HW Admin

Traditional

®

Customer

Customer

Customer

Customer

Customer

Manage

Availability Security

Performance Change

Problems

Partner

Outsourcing

®

®

®

®

®

Oracle Manages

Availability

Security Performance

Change Problems

• Better Service • Faster Service • Predictable Cost • Core Competence

Better Service Management App Admin DB/AS Admin Sys Admin HW Admin

®

®

®

Availability Security

Performance Problem

Change

Oracle Manages

Availability

Security Performance

Change Problems

Better Availability Management

Ÿ  1 Acre of computer room space

Ÿ  Middle of the US Ÿ  Dual power feeds Ÿ  Five 2-MegaWatt diesel

backup generators Ÿ  Three 600 ton chillers Ÿ  Dual redundant OC12

Ring to RMDC

Better Security Management

Ÿ  Physical Security @Oracle Ÿ  VPN-based Network Security Ÿ  SAS 70 Type 1 Audit Ÿ  SAS 70 Type 2 Audit Scheduled Ÿ  Specialized Audits

Better Problem Management 40-50% faster TAR resolution

Offline OnlineTraditional Outsourcing

Better Problem Management

Weekly Running Average (last 13 weeks)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

25-Jan 1-Feb 8-Feb 15-Feb 22-Feb 1-Mar 8-Mar 15-Mar 22-Mar 29-Mar 5-Apr 12-Apr 19-Apr

Week Ending Date

% P

erce

nt

ProactiveDetection- OutageAvoidanceAverage

CustomerInitiatedAverage

Better Change Management

r2

Traditional Large

Upgrade Cost Lost Opportunity to use the new SW

r2 r3 r4 r5 r6

Oracle Outsourcing

Fight to Achieve Stability

How?

How? Ÿ Repetition Ÿ Specialization Ÿ Automation Ÿ Disintermediation: Eliminate the

Middleman

Repetition & Specialization Release Upgrades for the 100th Time

11i.6 11i.3 11i.8 11i.4 11i.2 11i.8

11i.5 11i.3 11i.7 11i.6 11i.3 11i.8

11i.6 11i.3 11i.7 11i.4 11i.2 11i.8

11i.6 11i.3 11i.8 11i.6 11i.2 11i.8

11i.5 11i.3 11i.7 11i.4 11i.3 11i.7

Automation Outsourcing Automation Platform

Certified Configuration

Outsourcing Automation

Platform

Cust.

Americas Time

Asia/Pac Time

EMEA Time

Customers

Eliminate the Middleman

Oracle Development

Americas Time

Asia/Pac Time

EMEA Time

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

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