oracle cloud strategy 2014 2015

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confiden?al – Internal/Restricted/Highly Restricted 6

Oracle Cloud Strategy

Mark Hurd June 25, 2014


"Safe Harbor" Statement: Statements in this press release rela/ng to Oracle's future plans, expecta/ons, beliefs, inten/ons and prospects, including statements regarding our cloud subscrip/on run rate, the /ming of the delivery of our 10,000th Engineered Systems unit, and our plans to increase our focus on the Cloud and become number one in SaaS and PaaS, are "forward-‐looking statements" and are subject to material risks and uncertain/es. Many factors could affect our current expecta/ons and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expecta/ons: (1) Economic, poli/cal and market condi/ons, including the con/nued slow economic recovery in the U.S. and other parts of the world, can adversely affect our business, results of opera/ons and financial condi/on, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reduc/ons in transac/ons, fewer large transac/ons in a par/cular quarter, unan/cipated fluctua/ons in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (3) Our cloud compu/ng strategy, including our Oracle Cloud SoTware-‐as-‐a-‐Service, PlaUorm-‐as-‐a-‐Service and Infrastructure-‐as-‐a-‐Service offerings, may not be successful. (4) If we are unable to develop new or sufficiently differen/ated products and services, or to enhance and improve our products and support services in a /mely manner or to posi/on and/or price our products and services to meet market demand, customers may not buy new soTware licenses, cloud soTware subscrip/ons or hardware systems products or purchase or renew support contracts. (5) Our interna/onal sales and opera/ons subject us to addi/onal risks that can adversely affect our opera/ng results, including risks rela/ng to foreign currency gains and losses. (6) If the security measures for our soTware, hardware, services or Oracle Cloud offerings are compromised or if such offerings contain significant coding, manufacturing or configura/on errors, we may experience reputa/onal harm, legal claims and financial exposure. (7) We have an ac/ve acquisi/on program and our acquisi/ons may not be successful, may involve unan/cipated costs or other integra/on issues or may disrupt our exis/ng opera/ons. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-‐K and Form 10-‐Q, par/cularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contac/ng Oracle Corpora/on's Investor Rela/ons Department at (650) 506-‐4073 or by clicking on SEC Filings on Oracle’s Investor Rela/ons website at hdp://www.oracle.com/investor. All informa/on set forth in this press release is current as of June 25, 2014. Oracle undertakes no duty to update any statement in light of new informa/on or future events.

Safe Harbor Statement


One Goal: #1 in the Cloud

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Oracle Cloud Strategy

PaaS on Market Leading Tech Stack

Modern & Best of Breed SaaS Porcolio Applica?ons.

Placorm.

Infrastructure.

One Goal: #1 in the Cloud

Highly Differen=ated Unmatched Breadth & Depth


Ready to Lead the Applica?ons Market into the Cloud

Oracle Confiden?al – Internal/Restricted/Highly Restricted 10

37% FY14 Bookings Growth. Posi=oned to Accelerate in FY15.

$74B in Addressable Market •  Significant Greenfield Expansion

Opportuni?es in Marke?ng, Service & ERP

•  $10B+ ARR Poten?al in Large Apps Customer Base. Less than

5% penetra?on

Opportunity

Global Scale •  Thousands of SaaS Sales Reps in

60+ Countries

•  900+ Cloud Partners •  19 Global Data Centers

PorQolio Reach

Complete & Best of Breed •  18 Leaders Ra?ngs equal to SAP,

SFDC & WDAY Combined

•  1,200+ Ac?ve Customer Reference. Added Hundreds in

Last Year.


$74B in SaaS Addressable Market


$80B

$40B

Oracle SAP SFDC Workday

$60B

$20B

$74B

$20B

$29B

$19B

Service

E-‐Commerce

Financials

SCM

Marke=ng

Projects

EPM Service

Sales

Marke?ng E-‐Commerce

HCM

SCM

Sales

HCM

Financials

Greenfield

Installed Base

Significant Share Gain

Extend Leadership & Share

Source: Gartner Group, Oracle Marke?ng Intelligence

Sales & CPQ

HCM & Talent

ERP


$10B of Poten?al ARR in the Oracle On-‐Premise Base


On-‐Premise ARR Poten=al Extend Migrate

5K+ CRM Customers $2B Add Marke?ng, CPQ & Social Core Sales & Service to Cloud

7K+ HCM Customers $3B Add Talent Management Core HR & Payroll to Cloud

15K+ ERP Customers $5B Add Budge?ng & Planning,

Procurement Subsidiaries to Cloud

Core Financials to Cloud

Customer 2 Cloud Program

Financial Incen=ves Re/re support & shiT investment to cloud

Rapid Start-‐Up Services Fixed /me & price cloud

migra/on services

Packaged Integra=ons PorUolio of integra/ons

between on-‐premise & cloud


18 SaaS Leader Ra?ngs Equal to Top Compe?tors Combined


20

10

Oracle SAP Workday

15

5

18

8

1 Salesforce.com

9

Source: Gartner Group, Forrester Research Published Reports


Mature Global Sales Organiza?on


7 Core Sales Teams Aligned to Win in Each Key Market

FY13 FY15

500

Sales Coverage

1,000 2,000

Thousands+++

Sales Produc=vity

Oracle Sales Academy

Engineered Selling Process

R5 R6

R7 R9 R8 Product

Innova=on

R10

Thousands++

1.   Marke=ng 2.   Sales 3.   Service 4.   ERP & SCM 5.   EPM 6.   HCM 7.   Mid-‐Market


900+ Partners Specialized on Cloud Solu?ons


Marke=ng -‐ 487

Service & E-‐Commerce -‐ 4919

ERP -‐ 4317

HCM -‐ 5229

Sales -‐ 3848

Social -‐ 190

18,990 Cloud Specialists

200+ Partner Solu?ons

(Templates & Integra?ons)


Establishing Oracle as a Leading Cloud Brand

CloudWorld

41,052 Registered Aeendees

Chicago Paris

São Paulo

New Dehli

Bogotá

= FY14

= FY13

Sydney

Tokyo

Dubai

Singapore

Munich London

Mumbai

Mexico City

Los Angeles New York

Melbourne

Moscow

San Francisco

Beijing

= FY15 planned

Frankfurt

London


Strong Growth in FY14, Posi?oned to Accelerate in FY15


37%

Growth in Bookings

23%

Growth in Revenue

25-‐35%

Growth in Revenue

FY14 Q4 FY14 Q1 FY15


PaaS & IaaS: Maintain & Extend Leadership in Enterprise Technology

Highly Differen=ated PlaQorm

Unmatched Breadth & Depth of Services Expanding Sales

Java #1 Database

Built-‐In Mobile, Social, Big Data

Thousands+ Tech Reps

Thousands+++ Apps Reps

+ +


One Goal: #1 in the Cloud Simplify IT and Accelerate Innova=on


Highly Differen=ated in SaaS & PaaS Unmatched Breadth & Depth

Share Gain Large Installed Base Poten=al

Mature & Referenceable Products Scale, Trained Sales Force

oracle cloud strategy 2014 2015

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