Global Efficiency The Oracle Way Avi Spiegelman Finance

Global Efficiency: The Oracle Way Avi Spiegelman Finance Director Oracle Israel Sept. 14, 2006

Oracle Corp. – Key Facts Largest enterprise database software vendor Founded 1977; Public 1986 Corporate offices – Redwood Shores, CA 145 Countries; 70+Subsidiaries 56, 133 employees worldwide (May 2006) Annual revenues $14. 4 Billion 275, 000+ Customers

Oracle Israel – Key Facts Subsidiary established in 1996 Represented 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

Oracle Corporation Growth Trend In Millions $ 14, 380 9, 673 7, 144

Oracle Corporation Growth Trend In Millions $ 4, 736 3, 571 1, 244 3, 381 2, 224 814 Op Mgn: 17% 21% 30% 35% 37% 36% 38% 34% 33% Net Mgn: 11% 15% 20% 24% 23% 24% 26% 24%

Oracle Before 97 Servers Worldwide; Multiple Domains 1998 ORACLE AE AR AT AU BE BR CA CH CL CN CO CR CZ DE DK ECE ES FI FR GR HK HR HU ID IE IL • 24 x 7 staffing per center • Duplication of tasks • Servers underutilized • Data replication NODE 1 NODE 2 NODE 3 NODE 4 NODE 5 NODE 6 NODE 7 NODE 8 NODE 9 NODE 10 NODE 11 NODE 12 NODE 13 NODE 14 NODE 15 NODE 16 NODE 17 NODE 18 NODE 19 NODE 20 NODE 21 NODE 22 NODE 23 NODE 24 NODE 25 NODE 26 NODE 57 NODE 60 NODE 61 NODE 63 NODE 62 NODE 64 NODE 65 NODE 66 NODE 67 NODE 68 NODE 69 NODE 70 NODE 71 NODE 77 NODE 78 NODE 79 NODE 80 NODE 81 NODE 82 NODE 83 NODE 84 NODE 85 NODE 86 NODE 87 NODE 88 NODE 89 NODE 90 NODE 91 NODE 92 NODE 93 NODE 94 NODE 95 NODE 96 NODE 97

IT Consolidation The Oracle Story Eliminate complexity Improve efficiency 120 97 70 32 2 4 2 5

Oracle After Single 2 x. Server Cluster; Single Domain 1999 • BIG $$$ savings • Easier administration • Improved availability, reliability • Reduced hardware costs

Shared Services at Oracle Rocklin Dublin Colorado Springs Bangalore 3500+ Global Concurrent Users Sydney " "מה שיכול להיעשות מכאן – ניתן להיעשות משם

Shared Services at Oracle The Benefits • Corporate Governance • GLOBAL Business Intelligence • ECONOMIES of Scale • CONSISTENT Business Processes

Oracle’s $1 Billion Savings Consolidate IT Sales & Support Purchasing Self Service, HR, Finance & Admin. Total Note: Based on Oracle estimates. Goal $M $200 $550 $100 $1, 000

Support Case Study The Oracle Story (3 years ago - present) Total Support Activity 200% Online Requests (% of all requests) > 78% Phone Volume 66, 000 Headcount (per Qtr) 517, 000 14%

Provide Employees with Self-Service • • • Action Reporting Payslips Purchasing Expenses Training Orders Hiring Travel bookings Benefits Approve Manager Submit Employee

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.

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