Database, Server & Process Consolidation: Oracle Case Study New York City Technology Forum

1. Database, Server & Process Consolidation: Oracle Case Study New York City Technology Forum November 1, 2005 “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

2. Brad Cole Sales Engineering Manager Oracle Public Sector Oracle USA “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

3. Agenda • Market Trends & Business Challenges • Consolidate & Simplify IT • Standardization of Processes • Shared Services • Accountability and Security • Keys to Success • Leveraging our Experience • Q & A

4. 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?

5. Rolling Countries into the Global SSCPhase One – Local Disparate Systems

6. Market Trends • Consolidation of Systems • Standardization of Processes • Move to Shared Service Centers • Focus on Security • Corporate Compliance • Do More With Less…

7. 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

8. Consolidate & Simplify IT

9. Why Consolidate & Go Global? • It’s all about INFORMATION • Quality • Availability/Access • Improving Service • Reducing costs • Hardware • Facilities • Headcount

10. 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.)

11. 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!

12. Oracle Case Study: Email “Before”97 Servers Worldwide; Multiple Domains 1997 NODE77 NODE78 NODE79 NODE80 NODE81 NODE82 NODE83 NODE84 NODE85 NODE86 NODE87 NODE88 NODE89 NODE90 NODE91 NODE92 NODE93 NODE94 NODE95 NODE96 NODE97 AE NODE1 AR NODE2 AT NODE3 AU NODE4 BE NODE5 BR NODE6 CA NODE7 CH NODE8 CL NODE9 CN NODE10 CO NODE11 CR NODE12 CZ NODE13 DE NODE14 DK NODE15 ECE NODE16 ES NODE17 FI NODE18 FR NODE19 GR NODE20 HK NODE21 HR NODE22 HU NODE23 ID NODE24 IE NODE25 IL NODE26 NODE60 NODE61 NODE62 NODE63 NODE64 NODE65 NODE66 NODE67 NODE68 NODE69 NODE70 NODE71 NODE57 ORACLE • 24 x 7 staffing per center • Duplication of tasks • Servers underutilized • Data replication

13. Oracle Case Study: Email “After”Single 3xServer Cluster; Single Domain Established 1999 • Saved $13M first year, $11M subsequent years • Easier administration • Improved availability, reliability • Reduced hardware costs

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

15. Oracle’s Global Single Instance (GSI) System Architecture

16. 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

18. 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 * Replaced Original 5 Sun’s with 18 Linux boxes

19. 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 System Configuration - GSIAP

21. Disaster Recovery Austin Data Center Colorado Springs Data Center Network / Big IP / DNS (Manual) Application Code (Snap Mirror) Oracle Home (Rsync) Database (Dataguard)

22. Standardization of Processes

23. 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

24. 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

25. Shared Services

26. Advantages of Shared Services • Increase Efficiency, Control, and Quality • Blend of Centralization and Decentralization • Centralized Control of Key Areas (Accounting) • Focused Professionals Delivering Higher Quality Services • Lower Cost • Elimination of Redundant Structures • Economies of Scale • Move to Low-cost Cities, States, or Countries

27. Tactical Purchasing Accounts Payable Order Administration Accounts Receivable Cash Management Revenue Accounting Revenue Recognition General Accounting Collections Data Librarians Customer Data Oracle’s Shared Service Functions

28. What Has Oracle Accomplished?

29. The Oracle Experience Oracle’s $2 Billion Dollar Savings Target 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 Achieved through consolidation, simplification, global processes, shared services and the use of standard product Note: Based on Oracle estimates.

30. 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

31. Support DeliveryThe Oracle Story - a 3 year comparison 66,000 517,000 (per Qtr) Phone Volume Online Requests (% of all requests) > 78% Headcount 14% Total Support Activity 200% Cost per Request 60% Resolution Time 41%

32. Accountability and Security

33. 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

34. 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!

35. Keys to Success

36. 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!

37. Leveraging Our Experience

38. 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 decisions

39. 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

40. 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 risk

41. 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 performancewhen viewed through the different Essential Factors • Implementing e-government solutions should be driven by senior leadershipand accompanied by organizational transformationefforts • IT infrastructure improvement is a key first step and an enabler • Well focused, structured analysis should be performed earlyto guide the effort and secure both organizational buy-in and resources “Everyone wants to transform…. nobody wants to change”

42. Questions?