Oracle Insight for Investors: Oracle Communications Strategy PresentationForward looking information is subject to change without notice at Oracle's sole decretion.
Oracle Insight for Investors: Oracle Communications Strategy October 27, 2009
Bhaskar Gorti Senior Vice President and General Manager, Oracle Communications Global Business Unit
Safe Harbor Statement "Safe Harbor" Statement: Statements in this presentation relating to Oracle's or its Board of Directors’
future plans, intentions and prospects are "forward-looking statements" and are subject to material risks
and uncertainties. Many factors could affect our current expectations 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 expectations: (1) Economic, political and
market conditions, including the recent global economic and financial crisis, could adversely affect our
business, operating results or financial condition, including our revenue growth and profitability, through
reductions in customer IT budgets and expenditures and through the general tightening of access to
credit. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in
transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency
exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for
software license updates and product support. (3) We cannot assure market acceptance of new products
or services or new versions of existing or acquired products or services. (4) We have an active acquisitionor services or new versions of existing or acquired products or services. (4) We have an active acquisition
program and our acquisitions may not be successful, may involve unanticipated costs or other integration
issues or may disrupt our existing operations. (5) Our international sales and operations subject us to
additional risks that can adversely affect our operating results, including risks relating to foreign currency
gains and losses and risks relating to compliance with international and U.S. laws that apply to our
international operations. (6) Intense competitive forces demand rapid technological advances and frequent
new product introductions and could require us to reduce prices or cause us to lose customers. 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, particularly under the heading "Risk
Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's
Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle’s Investor
Relations website at http://www.oracle.com/investor. All information set forth in this presentation is
current as of October 27, 2009. Oracle undertakes no duty to update any statement in light of new
information or future events.
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
Safe Harbor Statement
The development, release, and timing of any features
or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
Oracle Communications Opportunity
• High-Growth Geos: Asia, EE, Middle East, Africa
• New Segments: Media, Content, Advertising
• Business, System and Network Transformations
• Convergence: Wireless, Wireline, content, media, apps Demand
• Convergence: Wireless, Wireline, content, media, apps
• Service explosion: IPTV, WiMax, Web 2.0, Mobile Data
Demand Drivers
• Back Office (OSS): Order Orchestration, Inventory Mgmt., Service Activation, Configuration Mgmt.
• Network (SDP): Converged App Server, Service Exposure
Industry Dynamics
Communications Pivotal to Communications Pivotal to SocioSocio--Economic GrowthEconomic Growth
GDP in developing countries grow GDP in developing countries grow in line with mobile penetrationin line with mobile penetration
Industry Dynamics
Communications Pivotal to Communications Pivotal to SocioSocio--Economic GrowthEconomic Growth
GDP in developing countries grow GDP in developing countries grow in line with mobile penetrationin line with mobile penetration
Low ARPU in Growth MarketsLow ARPU in Growth Markets China ($10) vs. U.S. ($50)China ($10) vs. U.S. ($50)
Industry Dynamics
Communications Pivotal to Communications Pivotal to SocioSocio--Economic GrowthEconomic Growth
GDP in developing countries grow GDP in developing countries grow in line with mobile penetrationin line with mobile penetration
Low ARPU in Growth MarketsLow ARPU in Growth Markets China ($10) vs. U.S. ($50)China ($10) vs. U.S. ($50)
India adding 15M subscribers per India adding 15M subscribers per Rapid Subscriber GrowthRapid Subscriber Growth
India adding 15M subscribers per India adding 15M subscribers per monthmonth
Industry Dynamics
Communications Pivotal to Communications Pivotal to SocioSocio--Economic GrowthEconomic Growth
GDP in developing countries grow GDP in developing countries grow in line with mobile penetrationin line with mobile penetration
Low ARPU in Growth MarketsLow ARPU in Growth Markets China ($10) vs. U.S. ($50)China ($10) vs. U.S. ($50)
India adding 15M subscribers per India adding 15M subscribers per Rapid Subscriber GrowthRapid Subscriber Growth
India adding 15M subscribers per India adding 15M subscribers per monthmonth
NonNon--incumbents Proliferateincumbents Proliferate New spectrum spurs home grown New spectrum spurs home grown
operatorsoperators
Communications Pivotal to Communications Pivotal to SocioSocio--Economic GrowthEconomic Growth
GDP in developing countries grow GDP in developing countries grow in line with mobile penetrationin line with mobile penetration
Low ARPU in Growth MarketsLow ARPU in Growth Markets China ($10) vs. U.S. ($50)China ($10) vs. U.S. ($50)
India adding 15M subscribers per India adding 15M subscribers per Rapid Subscriber GrowthRapid Subscriber Growth
India adding 15M subscribers per India adding 15M subscribers per monthmonth
NonNon--incumbents Proliferateincumbents Proliferate New spectrum spurs home grown New spectrum spurs home grown
operatorsoperators
Shift in Service Provider FocusShift in Service Provider Focus From technology to customer From technology to customer
drivendriven
•• Low Cost InnovationLow Cost Innovation
•• PrePre--integrated Business integrated Business ProcessesProcesses
•• Configurable Service Configurable Service EnablersEnablers
Industry Dynamics
•• Low Cost InnovationLow Cost Innovation
•• PrePre--integrated Business integrated Business ProcessesProcesses
•• Configurable Service Configurable Service EnablersEnablers
Industry Dynamics
•• Differentiated servicing Differentiated servicing modelsmodels
•• PrePre--integrated Service integrated Service Creation & Delivery Creation & Delivery EnablersEnablers
•• Rapid Rollout and Rapid Rollout and Rollback CapabilityRollback Capability
EnablersEnablers
DB, FMW, BI
Oracle’s Advantage
BSS, OSS, SDP
Open
EnterpriseEnterprise Domain ExpertiseDomain Expertise
Open
Integrated
u s to
m e rs
FY 2009 CGBU Business Highlights
• 140+ Customers Total Amdocs (26), SAP (9), HP (9), IBM (5)
• 43 New Customers
• 34% of Total Revenue from New Customers, 66% from Existing Base66% from Existing Base
• 40% Growth in Transactions Greater than $1M
• 45% of Oracle Communications License Revenue Includes other Oracle Apps/Tech Products
• Pull Through of ~2.5X CGBU Revenue
FY 2009 Customer Go Lives
Q1 FY09
Value
Days
2006-8
Expected Benefits
•• PrePre--sized, presized, pre--configured, preconfigured, pre--testedtested Value
Days
2006-8
Today1977 Tomorrow
•• Turn it on and it worksTurn it on and it works
•• Dramatically Lower Cost of PerformanceDramatically Lower Cost of Performance