Global Efficiency:The Oracle Way

Avi SpiegelmanFinance DirectorOracle IsraelSept. 14, 2006

Oracle Corp. – Key Facts

Largest enterprise database software vendorFounded 1977; Public 1986

Corporate offices – Redwood Shores, CA

145 Countries;70+Subsidiaries

56,133 employees worldwide (May 2006)

Annual revenues $14.4Billion

275,000+ Customers

Oracle Israel – Key Facts

Subsidiary established in 1996Represented by distributor in Israel since 1986

200 Employees

Sales and Marketing, Support and Consulting (R&D in USA, India & …Israel)

Localization team

>2000 database customers,

>120 ERP customers

Running Oracle on Oracle!

ושקיפות מלאה ריכוזיות

קשיחות" כמאפשרת גמישות, מיקוד, התייעלות "!וצמיחה

Oracle Corporation Growth TrendIn Millions $

0

5,000

10,000

15,000

200620052004200320022001200019991998

Revenue

9,673

7,144

14,380

Oracle Corporation Growth TrendIn Millions $

0

1,000

2,000

3,000

4,000

5,000

200620052004200320022001200019991998

Operating income & Net Income

Net income

Operating income

Op Mgn: 17% 21% 30% 35% 37% 36% 38% 34% 33%

Net Mgn: 11% 15% 20% 24% 23% 24% 26% 24% 24%

4,7363,571

1,244

3,381

814

2,224

Oracle Before97 Servers Worldwide; Multiple Domains

1998

• 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

NODE5

7

IT ConsolidationThe Oracle Story

0

20

40

60

80

100

120

EMAIL SVR EMAIL DB ERP SVR ERP DB

Pre-EBS

After-EBS

Eliminate complexity Improve efficiency

9797

120120

22 443232

22

7070

55

Oracle AfterSingle 2xServer Cluster; Single Domain

• BIG $$$ savings• Easier administration • Improved availability, reliability• Reduced hardware costs

1999

Colorado SpringsColorado Springs

Bangalore

Sydney

Rocklin

3500+ Global Concurrent Users3500+ Global Concurrent Users3500+ Global Concurrent Users3500+ Global Concurrent Users

Shared Services at Oracle Shared Services at Oracle

Dublin

מה שיכול להיעשות מכאן – ניתן להיעשות ""משם

Shared Services at OracleThe Benefits

• Corporate Governance

• GLOBAL Business Intelligence

• ECONOMIES of Scale

• CONSISTENT Business Processes

Goal $M

Consolidate IT $200

Sales & Support $550

Purchasing $150

Self Service, HR,

Finance & Admin. $100

Total $1,000

Goal $M

Consolidate IT $200

Sales & Support $550

Purchasing $150

Self Service, HR,

Finance & Admin. $100

Total $1,000

Note: Based on Oracle estimates.

Oracle’s $1 Billion Savings

Support Case Study The Oracle Story (3 years ago - present)

Total Support Activity 200%

Online Requests (% of all requests) > 78%

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

Headcount 14%

Provide Employees with Self-Service

Employee

Manager Submit

Approve

Action• Reporting• Payslips• Purchasing• Expenses• Training• Orders• Hiring• Travel bookings• Benefits

Global View of the Customer

,"שקיפות המאפשרת מעבר מ"תחושות

"הלוואי" ו"רצון טוב"

! בהתאםתוצאות ומדויקותלתכניות עבודה

Where are we now?

Key decisions at Global Corporation.

Management reporting – one version of the truth.

Global standard processes.

Transaction processing in Shared Service Center.

Local Finance focused as business advisors.

Monthly close process fast.

Acquisitions integrated FAST (weeks/months)

Good corporate governance/SOX compliance.

AQ&