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Enterprise Cloud Computing: What, Why & How

The Transformation

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CaseStudy

The Transformation PayoffThe Ability to Drive Profitable, Sustainable Growth

Operating Margin % (Non-GAAP)

Oracle’s Business Transformation

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Oracle Key BenchmarksIT expense as % of revenue

Pre-Sun Acquisition Statistics

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1999 2003 & Evolving• Autonomous Countries • Multi National Corporation

• Geographic Functions • Global Functions

• Country Infrastructure • Simplified Global Infrastructure

• 100s of Instances • Global Single Instance (ERP)

• Abundance of Applications • Oracle E-Business Suite

• Inconsistent Processes • Global Processes

• Local Support • Shared Service Centers

• Local Decision Making • Centralized Decision Making

• Fragmented Data • Global Information System

• 40 Datacenters • 2 Datacenters >> 5 Datacenters

The Oracle Transformation – Then & Now

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Private Cloud• Self-service• Policy-based

resource management

• Chargeback• Capacity planning

Silo’d Grid• Physical• Dedicated• Static• Heterogeneous

• Physical/Virtual• Shared services• Dynamic• Standardized

appliances

App2 App3

Private IaaS

Private PaaS

App1

App1 App2 App3

App1 App2 App3

Private IaaS

Private PaaSConsolidateStandardize

Datacenter EvolutionFrom Consolidation to Cloud

11 yrs 2 yrs

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Business Drivers for the Cloud

• Continued cost reduction- Capital Expenditure- Operation expense

• Improved Customer Satisfaction- Reduced Time to Delivery

• Revenue Opportunity- Faster Deployment of Solutions- Expand on Demand

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DEVELOPMENT

4M+ External Users

42,000 Servers

84K+ Internal Users |

10,000 TB Storage |

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Oracle Information Technology – 4 Major Functions

TRADITIONAL

ORACLE ON DEMAND

DEVELOPMENT

ORACLE UNIVERSITY

Supporting 100K+ internal users & 1.2M+ external users in 145 countries

Supporting over 4.5M users over 3,700 environments

Supporting 21K developers building over 3K products globally

Supporting 352K students resulting in 41,000 classes annually in 24 languages

• Global voice & network infrastructure• Global data center operations• Oracle employee support• Computing device management & support• Information Technology Risk & Compliance

• Operation, administration & management of Production business systems

• Operation of Development-managed compute spaces

• Management & support of specialized development computing devices

• Operation, administration & management of customer facing computing resources

• Administration & management of computing architecture & standards

• Business continuity operation & planning

• Operation, administration & management of computing resources supporting delivery of curriculum & classroom content

• Administration & management of computing architecture & standards

• Business continuity operation & planning

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CaseStudy

Oracle UniversitySelf Service – Broad Network Access – Resource Pooling

ORACLE UNIVERSITY

• 2,300 environments automatically provisioned weekly

• 1/10th the hardware

• CPU utilization increased from 7% to 73%

• Revenue per server increased 10X

• Servers to administrator ratio increased 10X

234 physical servers | 2,300 Virtual Machines | 3,447 templates/modules

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Oracle IT: Oracle Dev/TestSelf-Service Private Cloud

Self-ServiceApplicationSelf-ServiceApplication

Job MgmtJob Mgmt VirtualizationVirtualization

PriorityPriority Match MakingMatch Making

Resource MgmtResource Mgmt

Oracle Enterprise Manager

Oracle Enterprise Manager

Submit

NotificationsDeveloper

Metadata / Label Servers

Results

Hosts

• 12000 physical servers, 36000VMs,

• 80% utilization 7x24

CaseStudy

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Oracle Production ApplicationsConsolidation with Grid Computing

casestudy

• Migration from Silo to Virtual Cloud

• Centralized Self Service Administration

• Server Deployment Time Reduce by 80%

• Reduced Physical Footprint by 75%

• Centralized Configuration Management

• Simplified Version Control

• Increase Server Utilization

• Service Level Reporting – End to End View

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Next Generation Cloud Drivers

• Cloud Services Matched to Consumer Function- Production/Non-production- Disaster Recovery/HA Appropriate- Capacity, Flexibility, Integration Matched- Security Appropriate

• End User Services- Desktop in the Cloud- Training in the Cloud

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Summary of BenefitsCloud Service at Oracle

STAKEHOLDER

• Initial capital outlay 80% less per environment

• Environment operating expenses 80% less

• Environments available far more quickly

• Active hosting capacity solely based on current stakeholder needs

ORACLE

• Total outlay on compute power across all stakeholders significantly reduced

• Far more efficient use of scarce Data Center capacity

• Powerful showcase of Oracle@Oracle

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Key Takeaways – From Oracle’s Transformation

Business Transformation IT Transformation

Optimize at the enterprise level Consolidate Application instances, Manage IT from a business perspective

Commit to the fewest possible ways to execute core processes

Consolidate Datacenters

Create shared service centers to execute standard processes

Standardize hardware/management and virtualize

Invest in Global Process Owner function

Shift the organization to ITSM

Adopt self service wherever possible Move compute to Cloud Services model

© 2009 Oracle – Proprietary and Confidential 15

Oracle Cloud ComputingSummary

• Oracle’s cloud computing strategy is to offer:

1. SaaS and Managed Services (Oracle On Demand)

2. Technology to other cloud service providers (Oracle Platform for SaaS)

3. Technology that customers can run in either public and private clouds

• Oracle best positioned to help enterprise data centers evolve to become private cloud service providers- Thanks to our years of investment in developing Grid technologies- Oracle provides Grid capabilities in every layer of the stack –

Infrastructure to Applications

• Oracle offers a comprehensive set of building blocks for building and managing public and private clouds from applications to disk