“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

Database, Server & Process Consolidation:

Oracle Case StudyNew York City Technology ForumNovember 1, 2005

“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

Brad ColeSales Engineering ManagerOracle Public SectorOracle USA

Agenda

Market Trends & Business Challenges

Consolidate & Simplify IT

Standardization of Processes

Shared Services

Accountability and Security

Keys to Success

Leveraging our Experience

Q & A

The Topic

Oracle embarked on a journey to consolidate all of our production Email, ERP and CRM systems. Our old "model" of separate geographically based systems simply couldn't provide the corporation with the information we needed to run our business.– How many people are employed by Oracle?– How much of what product did we sell today?

Rolling Countries into the Global SSCPhase One – Local Disparate Systems

Market Trends

Consolidation of Systems

Standardization of Processes

Move to Shared Service Centers

Focus on Security

Corporate Compliance

Do More With Less…

Business Challenges

Multiple Data Centers

Multiple Databases

Multiple Environments

Variety of Applications Deployed

Variety of platforms and Operating Systems

Inconsistent Usage of Applications and Business Practices

Multiple Support Groups

Transactional Vs. Informational Systems

Consolidate & Simplify IT

Why Consolidate & Go Global?

It’s all about INFORMATION– Quality – Availability/Access

Improving Service

Reducing costs– Hardware– Facilities– Headcount

Applications IT: Organization IT organization

– Business processes, solutions and support by LOB (Marketing, Sales, Finance, Support, Education, Consulting, HR)

Process Definition Solution Design Functional Support Implementations

– Systems Environments Performance Tuning Technical Support Data Migrations Patching

– Strategy, Planning and Operations– Applications Integration and Architecture

Cross LOB Products and functions (workflow, imaging, etc.)

Types of Consolidation

Each type of consolidation provides increasing levels of return– Hardware/System Services – Software/Databases – Business Processes – Shared Services/Process Administration

Consolidate As Much As Possible!

Oracle Case Study: Email “Before”97 Servers Worldwide; Multiple Domains

1997

• 24 x 7 staffing per center• Duplication of tasks• Servers underutilized• Data replication

ORACLE

AE NODE1AR NODE2AT NODE3AU NODE4BE NODE5BR NODE6CA NODE7CH NODE8CL NODE9CN NODE10CO NODE11CR NODE12CZ NODE13DE NODE14DK NODE15ECE NODE16ES NODE17FI NODE18FR NODE19GR NODE20HK NODE21HR NODE22HU NODE23ID NODE24IE NODE25IL NODE26

NODE60NODE61NODE62

NODE77NODE78NODE79NODE80NODE81NODE82NODE83NODE84NODE85NODE86NODE87NODE88NODE89NODE90NODE91NODE92NODE93NODE94NODE95NODE96NODE97

NODE63NODE64NODE65NODE66NODE67NODE68NODE69NODE70NODE71

NODE

57

Oracle Case Study: Email “After”Single 3xServer Cluster; Single Domain

• Saved $13M first year, $11M subsequent years • Easier administration • Improved availability, reliability• Reduced hardware costs

Established 1999

Started with . . . . . . . . . . . . . . . . 65+ (70+) instances (ERP)

January 2001 . . . . . . . . . . . . . . 20 instances (ERP)

January 2002 . . . . . . . . . . . . . . 10 instances (ERP)

January 2003 . . . . . . . . . . . . . . . 3 instances (ERP)

July 2003 . . . . . . . . . . . . . . . . . . 2 instances (ERP)

January 2004 . . . . . . . . . . . . . . . 1 instance (ERP)

October 2004 . . . . . . . . . . . . . . . 1 Suite instance (ERP & CRM)

June 2005 . . . . . . . . . . . . . . . . . 1 Suite instance (w/PeopleSoft)

Oracle’s Global Consolidation(Business Systems - ERP & CRM => GSI)

Oracle’s Global Single Instance (GSI) System Architecture

GSI: Global Single Instance Data Statistics 341 Million GL lines 374,000 People (all types) 1.45 Million Customers 307,000 Vendors 7.3 Million AR Invoices 42.7 Million AR Invoice lines 11 Million AP Invoices 4.7 Million Sales Orders 40.7 Million Sales Order lines 208,000 Projects

Linux in Production

Middle Tier 2002 Today

Hardware Sun Dell

# of Machines 5 54*

CPU’s per Machine 16-24 2

Speed of CPU’S 450 Mhz 3.06 Ghz

Approximate Total Cost $750,000$150,000*

Performance X 2X-3X

Middle Tier 2002 Today

Hardware Sun Dell

# of Machines 5 54*

CPU’s per Machine 16-24 2

Speed of CPU’S 450 Mhz 3.06 Ghz

Approximate Total Cost $750,000$150,000*

Performance X 2X-3X

* Replaced Original 5 Sun’s with 18 Linux boxes

System Configuration - GSIAP

Database Server:– 4-node RAC– 4 Sun 25K Machines– 144 X 1.2GHz CPUs– 576GB of Memory– EMC Disk (7 TB)

SGA:– 15.8 G total– Buffer Cache 9.5 GB– Shared Pool 6.4 GB

Middle Tier:– 54 Linux middle tier

machines– Dell 2650– 4 x 3.06 GHz – 6G Memory– NetApps Filer Cluster

Load Balancing:– BigIP

Application Code (Snap Mirror)

Oracle Home (Rsync)

Database(Dataguard)

Disaster Recovery

Network / Big IP / DNS(Manual)

Austin Data Center Colorado Springs Data Center

Standardization of Processes

Advantages of Standardized Processes

Reduced processing and per transaction costs

Ability to leverage best practices from different groups/regions

Better (smarter) information– Comparing like data

Better support across common processes

Simplification through standardization

Defining Standardized Processes

Organization and Approach– Business

Global Process Owners (GPO)­ Identify process flows working with IT ­ Divisional (regional) owners (DPO)­ Prioritization within Area

– Applications IT Global Solution Owners (GSO)

­ Mirror Business Process Organization (GSO/DSO)

– Steering Committees Communication, Progress Review and Decision Making Leadership & Escalation Resolution…Not Management by

Committee

Shared Services

Advantages of Shared Services

Increase Efficiency, Control, and QualityEfficiency, Control, and Quality• Blend of Centralization and Decentralization• Centralized Control of Key Areas (Accounting)• Focused Professionals Delivering Higher Quality

Services

• Lower CostLower Cost• Elimination of Redundant Structures• Economies of Scale• Move to Low-cost Cities, States, or Countries

Oracle’s Shared Service Functions

Tactical Purchasing

Accounts Payable

Order Administration

Accounts Receivable

Cash Management

Revenue Accounting

Revenue Recognition

General Accounting

Collections

Data Librarians– Customer Data

What Has Oracle Accomplished?

Previous New

Goal $ Mil Goal $ Mil

Consolidate IT $200 $250

Sell Side $550 $1,450

Buy Side $150 $200

Inside $100 $100

Total $1,000 $2,000

Note: Based on Oracle estimates.

Oracle’s $2 Billion Dollar Savings Target

The Oracle Experience

Achieved through consolidation, simplification, global processes, shared services and the use of standard product

HR StaffingThe Oracle Self Service Story

HR Administrator Ratio 1:1000 1:2000

HR Professional Ratio 1:350 1:600

Overall HR:Staff Ratio 1:125 1:225

HR Operations Staff 40 9

Support DeliveryThe Oracle Story - a 3 year comparison

Phone Volume 517,000 66,000(per Qtr)

Online Requests (% of all requests) > 78%

Headcount 14%

Total Support Activity 200%

Cost per Request 60%

Resolution Time

41%

Accountability and Security

IT Is Accountable To Management, Shareholders and The Public

To CEO and Board of Directors

To Employees

To the SEC or other regulatory agencies

To Agency heads and citizens who require services

To Taxpayers who fund programs

Standard Processes and Shared Services Increase Visibility of Operations

System Security

Consolidated System Benefits– Fewer Control Points Leads to Better Control– Less to Monitor Means More Detailed Monitoring– Fewer People to Maintain and Access– Single Set of Technology to Support & Leverage– Less Expensive and Complex for Disaster Recovery

Improved Control, Improved Monitoring, Simplified Infrastructure, Less Exposure

=

Improved Security!

Keys to Success

Keys to Success

Obtain & leverage executive/senior management commitment

Build a realistic plan

Organize centrally

Simplify and Consolidate as much as possible

Automate and centralize business processes

Deploy standard, out of the box products – Don’t customize, extend if necessary

Leverage shared services where appropriate

Don’t underestimate the hardest part-MANAGING CHANGE!

Leveraging Our Experience

Greatest Business Insight

• Embedded analytics, pre-built intelligence

• Deep and wide operational dashboards

• Industry-based KPIs

• Business intelligence tied to actions

• Open to third party data

Accurate and timely information for better decisionsAccurate and timely information for better decisions

Deep and Adaptive Industry Processes

• Industry-based configurations

• BPEL assisted configurations

• Modularized components

• Broad API / web services support

• User personalization

• Tailored business process flows

Meet changing business requirements to maintain competitive advantage

Meet changing business requirements to maintain competitive advantage

Superior Ownership Experience

• Automated, tailored installs

• Minimal downtime upgrades

• Active system and business monitoring

• Focus on documentation and training

• Packaged integration… from server technology, middleware, through to applications

Less complexity equals lower cost and riskLess complexity equals lower cost and risk

Conclusions about applying Oracle’s success to the Public Sector

An investment in e-Government, similar in scope to that of Oracle’s, would likely yield extremely attractive financial returns

Potentially more important, could be the impact it would have on organizational performance when viewed through the different Essential Factors

Implementing e-government solutions should be driven by senior leadership and accompanied by organizational transformation efforts

IT infrastructure improvement is a key first step and an enabler

Well focused, structured analysis should be performed early to guide the effort and secure both organizational buy-in and resources

“Everyone wants to transform….

nobody wants to change”

Questions?