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Understand Your Support Options and What They Mean To Your Organization’s Internal Roadmap

Frank RenekeGroup Vice President, Corporate Strategy

freneke@riministreet.com

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The Software Maintenance Problem

Agenda

The Five Things You Need to Know

Q&A

PeopleSoft Upgrade Value- An Objective Assessment

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The Software Maintenance Problem

High Cost, Low Value Maintenance Expenses Limit Innovation

20%New IT Initiatives

80%Ongoing Operations

and Maintenance

*Gartner; “Gartner's Top Predictions for IT Organizations and Users, 2012 and Beyond: Control Slips Away”, November 23, 2011

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Your Enterprise Software World Has Changed

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Software Vendor Support Not Relevant

Vendor support does not address the majority of issues in today’s mature, stable software related to customized code

85%of Priority 1 issues are

related to custom code

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A New Support Model is Needed

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What are Your Total Maintenance Savings?

PeopleSoft Upgrade Value- An Objective Assessment

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Perception versus RealityPeopleSoft 9.2 Perception:• 1000 new features, functions and enhancements• Improved user experience• Embedded Analytics• Reduced total cost of ownership

PeopleSoft 9.2 Reality:• Many new features are enhancements to earlier releases• Features are nice to haves with no meaningful ROI.• Enhancements leverage Fusion Middleware components.

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• 11g Database

• Oracle Bi Publisher

• Oracle OBIEE

• Oracle User Interface

• ADF Mobile

• Oracle Identity Management

Many New Features are OFM Enhancements

* “Why Oracle Fusion Middleware is the best middleware for PeopleSoft Applications”, Oracle Corporation White Paper, April 2010

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Many of the features and functions like look and feel, pivot grids and context sensitive search are actually 11g technologies that have to be licensed and adopted. * “73% Oracle customers upgrade to stay supported, no reported ROI”, ZDNET, March 9 th, 2012

PeopleSoft Support TimelinesChoices Need to be Made

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Future Proof your Application Strategy

• Each upgrade will further locks you into Oracle’ application and technology stack offering

• Eventual move to next-generation system will be full reimplementation cost; keep options open to retain flexibility and reduce risk.

• Money spent on Coexistence lost?

• Vendor upgrade path requires expensive upgrades and maintenance fees for 5-10 years until future systems are built, widely deployed and tested

Next-Generations

System Options

Select Best Fit Next-Generation System

Third-Party

Support$

Adopt Innovative Solutions as Needed

The Five Things You Need to Know

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Vs. Fusion• Using latest technologies and

processes• Incomplete and unproven suite needs

time to mature• No compelling reasons for adoption**• Oracle may eventually “force”

customers to Fusion, in various ways• Coexistence is the best option

Applications Unlimited• Mature and highly functional

applications• High maintenance costs• Expensive to upgrade• Diminishing enhancements• Expected finite timeline*• 73% upgrading just to stay

supported**

CIO’s Faced With a DilemmaChoosing between Apps Unlimited and Fusion

* “ERP Upgrades: What’s Your Philosophy?”, OAUG Research Line, February 2012

Fusion ApplicationsOracle Fusion Financials

Oracle Fusion ProcurementOracle Fusion Human Capital Management

Oracle Fusion Governance, Risk and ComplianceOracle Fusion Customer Relationship Management

Oracle Fusion Project Portfolio ManagementOracle Fusion Supply Chain

** “Oracle’s Dilemma: Applications Unlimited Versus Oracle Fusion Applications”, Forrester Research, Inc. February 11, 2013 and OAUG member survey

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Strategic Choices are NeededShort, Medium and Long Term

Short Term• Ensure systems solidly

support business needs• Adopt innovation to drive

competitive advantage

Long Term• Position organization to

take advantage of best next-generation software platform

• Adopt solutions that are proven

1-3 Years 4 - 6 Years 7 – 15 Years

Medium Term• Maximize return on

investment• Be prepared to adapt to

new trends with solutions from current and new vendors

• Begin positioning for next-gen platform

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Fusion is Not Ready

• Fusion is not complete today*• Started 2005• Halfway in 2007• Released 2012

• Fusion is a mix-and-match of Software, a hundred plus modules

• Oracle customers must “Consider All Available Options”**

• What happens if Oracle Fails?* Oracle’s Dilemma: Applications Unlimited Versus Oracle Fusion Applications”, Forrester Research, Inc. February 11, 2013 ** “Oracle Customers must ‘Consider All Available Options’, The Wall Street Journal, June 5th, 2013

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Upgrading is Not Right for Everyone*• Apps Unlimited is a road paved with Oracle technology• Oracle Fusion Middleware and Oracle Engineered Systems = LOCKIN**

* “Oracle’s Dilemma: Applications Unlimited Versus Oracle Fusion Applications”, Forrester Research, Inc. February 11 th, 2013** “Oracle PeopleSoft Applications and Oracle Fusion Middleware”, Oracle Corporation White Paper, April 2010

Questions & Answers