Matthew C. YearlingVice PresidentOracle OutsourcingOracle Corporation

Get Better Service:Oracle Collaboration Suite Outsourcing

Agenda

The IT Challenge Oracle Collaboration Suite Outsourcing Case Study How We Do It

Where Is Your Information?

Business Systems (ERP, CRM)

Collaborative Assets: Customer records, Contracts, Email,

Voicemail, Memos, Web Conferences, Data Sheets, Instant Messages, Planning

Documents, Forecasts, Quotes, etc.

Transactions, Legacy Applications

70%

30%

The IT Challenge

Strategic Value Security Spam/Virus/Worms Keeping Software Current Distributed Systems Availability Productivity Regulatory Compliance Cost

IT Budgets Dominated by Cost of Management

79% of Budget Spent on Managing ExistingSystems

Software

Why?

App Admin

DB Admin

Sys Admin

HW Admin

AvailabilitySecurity

PerformanceProblem

Change

“ When you consider the annual costs of managing performance,

changes, and availability, it is most likely significantly greater than the application purchase

price.”

Cost of Managing Any Software

-IDC October 15,2002

“Customers can spend up to 4 times the cost of their software license per year to own and manage their applications.”

-Brian ZrimsekResearch Director, Gartner, Inc.

January 2003

Cost of Managing Any Software

Cost of Managing Any Software

Software Price

$1M one time

Management Cost

(4x)

$20M over 5 years

Cost of Managing Any Software

“Microsoft says that the initial purchase is usually only 5% of the total cost of owningand maintaining a program.”

The Wall Street Journal Microsoft Wages Campaign Against Using Free Software

December 9, 2002

The Solution

Oracle Collaboration Suite 10g

Calendar

E-mail

Voicemail

Files

Search

OutlookOutlookFaxFax VoiceVoice

WirelessWirelessWebWeb

Web Conferencing

Collaboration Suite Outsourcing

Applications

Prod Support

Implementation

Apps Admin

DB/AS Admin

Sys Admin

HW Admin

Traditional Outsourcing

CustomerCustomer

CustomerCustomer

CustomerCustomer

CustomerCustomer

CustomerCustomer

CustomerManages:Availability

SecurityPerformance

ChangeProblems

Partner

@Customer

Oracle Manages:Availability

SecurityPerformance

ChangeProblems

Customer Tools

User & Group Management Privileges & Access Management Quota Assignment Resource Management Alias/list Management Data Migration

Application & Database Administration Virus & Spam Filtering Rules Queue Management Domain Configuration Install/Upgrade Software 24x7 Availability and Performance Monitoring Security Management Backup and Recovery Management Patching and Upgrade Management Log and Trace File Management Capacity Planning and Monitoring Environment Startup and Shutdown Management

System Administration

Operating System Installation System Configuration and Files Management 24x7 Monitoring of System Availability and

Performance System Availability Management System Performance Management OS Security and User Management Backup Media Management Patch and Upgrade Analysis Automated Patching and Upgrades of Operating

System

Hardware Administration

Hardware Acquisition, Installation and Maintenance Hardware/software Vendor Relationship Management

– Service Contract Management

Data Center Provisioning Physical Security Hardware Capacity Planning Hardware Disaster Recovery Tape Mounting/Vaulting

Predictable Outsourcing Price

Option $/User/Month*

Oracle Collaboration Suite 10g

@Oracle $12.50

@Customer $8.50

Email, Files, or Web Conferencing

@Oracle $9.85

@Customer $6.85

Option $/User/Month*

Oracle Collaboration Suite 10g

@Oracle $12.50

@Customer $8.50

Email, Files, or Web Conferencing

@Oracle $9.85

@Customer $6.85

* Minimums & additional priced options not included

Customer Case Study

E-Commerce Solutions

Customizable, Scalable, Integrated

Consumer Good Merchants– Retailers, Manufacturers, Distributors– eBay Power Sellers

Online Marketing Automation Engine

Inventory, Order, Customer Acquisition and Management

InfopiaMerchantFlow

Infopia Challenges Lack of Expertise & Resources

– Database & App Server Management– Security, Hardware & OS, Network, Firewall & VPN

Scalability Costs– Upgrades and Maintenance

Downtime and Security Problems

Insufficient Email System for Projected Growth

No File Collaboration Solution

No Calendaring System

Problems with 3rd Party Demo Software

Oracle Solution Oracle Collaboration Suite Outsourcing

– Email– Webmail– Gateway SPAM Filtering– Files (planned)– Calendaring (planned)– Web Conference (planned)

Oracle Technology Outsourcing

RAC Database

Oracle Application Server– HTTP Server– OC4J Containers– Web Cache– Enterprise Manager

Key Benefits

30% Cost Savings 30% Productivity Gains Email Volume Reduced Scalable Infrastructure Increased Security 24/7 Expert & Global Support Team Faster & Newer Hardware Proactive vs. Reactive Maintenance

How We Do It

World-Class Data Center

1 Acre of Computer Room Space

Middle of the US Dual Power Feeds Five 2-Megawatt Diesel

Backup Generators Three 600 Ton Chillers Dual Redundant OC12

Ring to RMDCOracle’s Austin Data Center

Oracle Grid Computing

Capacity on Demand Balance All Types of Workloads Across Servers Unified Management of Everything Reliability and Performance at Low Cost

Storage Grid Database Grid

Application Server

Grid

Grid

Control

Deploy a ‘Slice’ of the Grid7x24 By Default

Americas

Asia/Pac

Europe

CertifiedCertified

ConfigurationConfiguration

Cust.

TransitionTransition

InitializationInitialization

ProductionProductionImplementationImplementation

SalesSales

UpgradeUpgrade

Outsourcing Lifecycle

Focus on.. RepetitionSpecializationAutomationDisintermediation

– Eliminate the Middleman

Repetition & SpecializationRelease Upgrades for the 100th Time

R.6R.3 R.8R.4R.2 R.8

R.5R.3 R.7R.6R.3 R.8

R.6R.3 R.7R.4R.2 R.8

R.6R.3 R.8R.6R.2 R.8

R.5R.3 R.7R.4R.3 R.7

TITLE: NO.:Security Patches (SP) Process 042403

Create a patch.Send 'security

patch' notifications.Post patches

internally.

SP1 : OracleDev elopment

Create a patch.Send 'security

patch' notifications.Post patches.

SP2 : Vendors

Subscribe tosecurity alerts. Testpatches. Approvefor publication.Publish security

alerts. Maintain upto date l ist of

patches.

SP3 : Security Of f icer

Post approvedpatches on

Metalink. Confirmposted patches.

SP4 : OracleDev elopment

Apply patches toCC. Publish a listof patches applied

to CC.

SP5 : CC creator

Apply outstandingpatches to

customer's envduring Initialization.Update a patch l ist.

SP6 : GIT (env .creator)

Apply outstandingsec patches to all

environmentsduring

Implementation.Update a patch l ist.

SP7 : AMS

Apply outstandingsec patches to

customer's TESTenv on weekly basisduring Production.Update a patch l ist.

SP8 : AMS

Test patches.Approve forProduction.

SP9 : CustomerApply outstanding

patches tocustomer's PROD

env. Update a patchlist.

SP10 : AMS

Maintain arepository of

patches IDs in allOutsourcing envs.

SP11 : AMS

SP1-20 : Oracle alerts

SP2-10 : Vendorexternal repository ofpatches

SP1-10 : Oracleinternal repository ofpatches

SP2-20 : Vendoralerts

SP3-10 : List ofapprov ed patches

SP4-10 : Metalinkrepository of Oraclepatches

SP3-20 : Oracle &Vendor patch list

SP5-10 : CC w/latestpatches

SP5-20 : List ofpatches applied on CC

SP6-10 : Customer'senv . w/latest patches

SP6-20 : List ofpatches applied duringInitialization

SP7-10 : Customer'senv . w/latest patches

SP7-20 : List ofpatches applied duringImplementaiton

SP8-10 : TEST env w/latest patches

SP8-20 : List ofpatches applied byAMS

SP9-10 : Test to Prodapprov al

SP10-10 : List ofpatches applied byAMS

SP11-10 : Repositoryof patches IDs

SP11-20 : Metrics ofcustomer's env s.

SP4-20 : Conf irmationthat patches applied

Automation

CustomerCustomer

Eliminate the Middleman

Oracle R&DOracle R&DAmericas

Time

Asia/PacTime

EuropeTime

The End Result Being…

More Reliable Service

Outage avoidance– 60% of issues resolved

without customer involvement

Proactive maintenance– 50% fewer issues

reported

Faster resolution– 50% faster resolution of

service requests

Source: Oracle Support Tracking SystemSource: Oracle Support Tracking System

Cost Savings

Fixed, predictable monthly cost 50% average cost savings versus in-house

Source: IDC, 2002Source: IDC, 2002

What Analysts Are Saying

"Given the challenges, expense and "Given the challenges, expense and importance of keeping collaboration systems importance of keeping collaboration systems highly available,outsourcing makes a lot of highly available,outsourcing makes a lot of sense. Since Oracle develops, supports and sense. Since Oracle develops, supports and manages the software, Oracle Collaboration manages the software, Oracle Collaboration Suite Outsourcing looks like an attractive Suite Outsourcing looks like an attractive offering for customers." offering for customers."

-David Ferris, -David Ferris, President of Ferris Research, Inc. President of Ferris Research, Inc.

Ferris ResearchFerris Research

"The new Collaboration Suite Outsourcing "The new Collaboration Suite Outsourcing service is the latest example of how Oracle service is the latest example of how Oracle Outsourcing's model of better service at a Outsourcing's model of better service at a lower cost can deliver value to customers. lower cost can deliver value to customers. Given the pain companies are feeling when Given the pain companies are feeling when it comes to managing and upgrading email it comes to managing and upgrading email systems, Collaboration Suite Outsourcing systems, Collaboration Suite Outsourcing might be the right prescription." might be the right prescription."

-Laurie McCabe-Laurie McCabeSummit Strategies Summit Strategies

Summit StrategiesSummit Strategies

For More Information…

Visit us at: – www.oracle.com/outsourcing/cso

Infopia:– www.infopia.com

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