Please install fonts before using · Core-hrs / mth based on server utilissation 20K hrs 142K hrs 20K hrs 142K hrs 13K hrs 94K hrs Core-hrs / mth based on ExaCC Cloud Economics 187K

Ruchir KalraSenior Director – APAC Cloud Insight, Oracle

The following is intended to outline our general 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. The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

Statements in this presentation relating to Oracle’s future plans, expectations, beliefs, intentions and prospects are “forward-looking statements” and are subject to material risks and uncertainties. A detailed discussion of these factors and other risks that affect our business is contained in Oracle’s Securities and Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q under the heading “Risk Factors.” These filings are available on the SEC’s website or on Oracle’s website at http://www.oracle.com/investor. All information in this presentation is current as of September 2019 and Oracle undertakes no duty to update any statement in light of new information or future events.

Safe Harbor

http://www.oracle.com/investor

Un

it C

ost

Demand

Enterprise spend on technology continues to rise as data and compute demand surges despite ongoing cost saving efforts

Private cloud

Virtualisation

Process improvements

First wave of cost efficiencies

Peripheral workloads to public cloud

Business Critical workloads to public cloud

Overall cost remains elevated as gains are eroded by increased demand

Over 60% of enterprise workloads remain on-premise as transitions to public cloud have focused on the periphery

75% of peripheral workloads have moved to the cloud

Source: Ovum, Logic Monitor, Oracle research

Only 20% of business critical workloadshave migrated – 60% of workloads overall remain unaddressed

However, business critical workloads make up the majority of the enterprise technology footprint

Business criticalPeripheral

Public cloud

Un-addressed workloads

Public cloud

On-prem

Cloud Economics is similar to Factory Economics; but services are delivered at Elastic Scale with a Pay Per Use value proposition

Economy of Scale:

• Moore’s law says Compute Power doubles every 24 months

• Bezos’s Law (enabled by Moore's law) says that “price of a unit of computing power is reduced by 50 percent approximately every three years.”

Benefits Tempo:

Better economics means the Provider (e.g. Oracle, AWS, Azure) can scale elastically and deliver services at reduced cost whilst maintaining profitability

Better economics for the Consumer is based on a Pay per Use Model that enables the Consumer to also scale at lower costs than their On-Premise IT Models

Learning curve effect:

• Reduction in unit cost through cumulative learning/experience of adopters of public cloud

• Maximum workload efficiencies achieved through technology, operations, commercial and risk avoidance levers

A set of comprehensive levers needs to be applied in concertation, not piecemeal, to transform the cost base for business-critical workloads

Technology

Operational

Commercial

Risk (Avoidance)

Workload Resource Consolidation

Workload Variabilization

Product Substitution

Dynamic Scaling


Technology

77% reduction in compute capacity based on workload variablization

15K hrs

Core-hrs / mth based on Working-Day (9-5 M-F etc.)

51K hrs 202K hrs202K hrsCurrent Available Capacity

(cores x hrs / mth)494K hrs

Core-hrs / mth based on server utilissation

20K hrs

142K hrs

20K hrs

142K hrs

13K hrs

94K hrsCore-hrs / mth based

on ExaCC Cloud Economics

187K hrs

171K hrs

114K hrs

-77%

ITE

Reference

Pre-Prod

Production

DR

Example




Dynamic Scaling

Technology

Ops Automation & Autonomization

Migration Velocity


Operational

Bathtub curve effect: ROI depends on Migration cost and velocity

Take-aways:

• Migration Speed Key to Making the Economics Compelling

• Reduced friction and cost to provide Rapid RoI

• Sizeable savings post migration are possible

• Typically there is a ramp in spend for Yr-1

Project Spend Comparison

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

-14.1%

-6.3%

18.4%20.8% 20.5%

Bathtub Curve

Confidential – © 2019 Oracle Internal/Restricted13

Savings

Example

Clo

ud

Re

ad

y

Can BeConsolidated

Can BeMigrated Now

Cannot BeTouched

2 4

1

Ap

pli

cati

on

Clo

ud

R

ea

din

ess

Can BeConverted

Le

ga

cy

Legacy

3

Cloud Platform Suitability

Convertibility

Discovery Migration Strategy Selection Prioritization and Economics Evaluation

Workload rationalization assessment can help identify cloud candidates for migration

Example




Dynamic Scaling

Technology


Migration Velocity

Operational

Repurposing On-Premise Software

Re-purposing Software Support


Commercial




Dynamic Scaling

Technology


Migration Velocity

Operational



Commercial

Fixing Baseline Cost

Intra-Cloud Flexibility


Risk (Avoidance)





Dynamic Scaling

Technology


Migration Velocity

Operational



Commercial

Fixing Baseline Cost

Intra-Cloud Flexibility

Risk (Avoidance)

Cost base transformation with Cloud Economics is an on-going and an iterative process

A. Priorities and constraints

B. Dependencies and Sequencing

C. Key Challenges / Capability Gaps

Execution Roadmap (Committed)

ScrumITERATIONS

STRAWMAN

Dependency / Risk: Items expanded by team

Intentions and Strategy

Product PortfolioSpend and Deployments

Insight has perfected the process to help you get to a target state solution in just 10 weeks

Customer Roadmap

Q1 Q2 Q3 Q4

NON PROD

Risk Mitigation Assessment

Critical Cloud Capabilities

Migrated Workloads 180 426 672 918 1164 1410 1656 1902

• OCI

• PaaS: OIC,

Terraform

CDD

• MAA /

GoldenGate

• Edition-

based

Redefinition

• 3 Fault

Domains

• ADW for

OACS

• 2 AD’s

• Replication

DR

• Identity Cloud

Service

Q1 Q2 Q3 Q4

EBS / SCM

IDENTITY

ANALYTICS

CER MAA Capability

DR / UAT ENV

.DR GO LIVE PROD GO

LIVE

THIRD PARTY WORKLOADS

NON PROD UATACTIVE –ACTIVE

.Parallel OPS

PROD GO LIVE

OACS TrialData Source Replication

Use Cases Integrations w OCI DB’s

Trial Reporting / Analytics Use Cases

NON PROD

MAA Capability

DR / UAT ENV

EBS Integrations DR GO LIVE

LOWLOW MED HIGH MED MED MED LOW

PROD GO LIVE

OACS GO LIVE

RISK

Example

Enterprise Cloud Economics Engagement Offer

Step 1 Step 2 Step 3

Thank you

Documents

Please install fonts before using · Core-hrs / mth based on server utilissation 20K hrs 142K hrs 20K hrs 142K hrs 13K hrs 94K hrs Core-hrs / mth based on ExaCC Cloud Economics 187K