Digital Transformation in the Cloud

Mark Hurd Chief Executive Officer, Oracle

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

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Earnings Continue To Grow Through Cost CuttingRevenue Growth Is Stalled Across The Economy

S&P 500 Sales per Share <1% CAGR

S&P 500 Earnings per Share ~5% CAGR

Customer Satisfaction and Stock Price Correlation

$ /

Shar

e

Source: Dow Jones Inc.

2008 2009 2010 2011 2012 2013 2014 2015

Estimated 5.1% Spending Decline In 2015 AloneWorldwide IT Spending Decelerated Over Last Five Years

2011 2012 2013 2014 20153.3

3.5

3.8

-6%

-4%

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2%

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6%5.0%

1.3% 1.5%1.0%

-5.1%

5-Year Total IT Spend Trends

Rev (UST) Y/Y Growth

$US

Trill

ionTotal IT = SW, HW,

Telecom, Services, Devices

Source: Independent Analyst Estimates

Global Growth

* Public cloud only, cloud above includes SaaS/PaaS/IaaS. Minor calculation differences can be due to rounding.

4

Global Y/Y Growth, All Markets, 2016

Cloud Software WW

On Premise Software WW

Total Software Market WW

25.0%

3.1%

6.2%

Cloud Opportunity for LAD

1.3% LAD Total IT SpendingMarket Growth Slow

LAD Public Cloud Adoption

Source: Gartner IT Spend for Enterprise Forecast, 2016Q1

Source: IMF, World Economic Outlook Database, April 2016. CAGR 2015-2020

of LAD Enterprises Deployed a Cloud Service by end of 2015

Over 70% of LAD Enterprises Believe Cloud Services Make Organization More Agile. This is more than any other region

CAGR (2015-2019)

rank Country $ trillion 5 yr CAGR1 United States 17.9 4.0%2 China 11.0 8.0%3 Japan 4.1 3.1%4 Germany 3.4 3.4%5 UK 2.8 2.7%6 France 2.4 3.0%7 India 2.1 9.7%8 Italy 1.8 2.5%9 Brazil 1.8 -0.3%10 Canada 1.6 2.3%

GDP Rank

LAD Public Cloud Market

Source: Gartner Geographic Differences Among Buyers, 2016. Numbers rounded from chart.

SaaS: 24.3%PaaS: 22.5%IaaS: 29.1%

Source: IDC Public Cloud Forecast, May 2016.

Top10

23.7%CAGR (2015-2019)

Stagnant Overall Growth Vibrant Cloud Growthbut

94%

VISION 2025

Prediction 1: By 2025 80% of Production Apps Will Be in the Cloud

• Public Cloud SaaS is 24% of the Applications market today.• 85% of all new applications today are

architected for SaaS.

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $-

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SaaSPaaS & IaaS

Total Public & Private Cloud Markets (US$ billions)

Full Suite Requires 100’s of Applications:• Customer Experience Suite• Human Capital Management Suite• Enterprise Resource Planning Suite• Enterprise Performance Management Suite• Supply Chain Management Suite• Data Suite

Shared, extensible schemas across suites significantly reduce the cost and complexity of integration.

Enterprise SaaS Suites

80%

SaaS Point Solutions

20%

SaaS Market In 2025

Prediction 2:By 2025 Two Suite Providers Will Have 80% of the Saas Apps Market

• One of the least managed and governed areas in IT • Dev/Test suites offering rich standards-based

frameworks and languages will dominate• Dev/Test suites include:– Integrated development environment– Support popular languages– Mobile dev tools– SOA dev tools– Database dev tools– Integration dev tools– And much more ….

• 30% to 40% of IT spending is Dev/Test, making it an attractive Cloud workload for cost savings.

20%

70%

100%

Today

In 2020

In 2025

Prediction 3:100% Of New Dev/Test Will Be Cloud In 2025

• More data is already stored in clouds than in traditional storage systems.• 10’s of billions of IOT devices will generate

massive amounts of new enterprise data using modern cloud-based applications.• Public cloud storage capacity will be sourced

by service providers directly from component manufacturers, not existing storage vendors.

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5,000 Public CloudPrivate CloudTraditional IT

PBytes of Storage Installed

Prediction 4:By 2025 Virtually All Enterprise Data Will Be Stored In Clouds

Prediction 5:By 2025 Enterprise Clouds Will Be The Most Secure IT Environments. Oracle Is There Today.

OF ORGANIZATIONS TAKE 3 MONTHS+ TO PATCH

Source: Verizon Data Breach Investigations Report, 2015; IOUG Data Security Survey, 2014

74%

OF 2014 EXPLOITS HAD PATCH AVAILABLE FOR MORE THAN ONE

YEAR

99.9%

• Oracle uses its full security IP to run its Cloud• Full encryption by default• Implement latest patches rapidly across entire infrastructure• More secure than anyone

Why Cloud Computing Oracle Will Lead the Transition• Lowest cost• Least complex• Most reliable• Best security• Rapid innovation• Simple

• We will lead decade long transition to the cloud• Best of Breed SaaS Suite

built on Standards• Platform designed

for extensibility• We are in a class alone• Only IT company capable

of coexisting on-prem or in cloud• EXCITING NEW

ANNOUNCEMENT FOR BRAZIL

Complete: One Cloud for Your Entire Business

Social

User Experience & Mobile

Content & Collaboration

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Value Chain

EPMMarketplaceDAASIndustrySolutions

HCMCX ERP

ANNOUNCING – NOW AVAILABLE IN PORTUGUESE