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Oracle Cloud Strategy
Mark Hurd June 25, 2014
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confiden?al – Internal/Restricted/Highly Restricted 7
"Safe Harbor" Statement: Statements in this press release rela/ng to Oracle's future plans, expecta/ons, beliefs, inten/ons and prospects, including statements regarding our cloud subscrip/on run rate, the /ming of the delivery of our 10,000th Engineered Systems unit, and our plans to increase our focus on the Cloud and become number one in SaaS and PaaS, are "forward-‐looking statements" and are subject to material risks and uncertain/es. Many factors could affect our current expecta/ons 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 expecta/ons: (1) Economic, poli/cal and market condi/ons, including the con/nued slow economic recovery in the U.S. and other parts of the world, can adversely affect our business, results of opera/ons and financial condi/on, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reduc/ons in transac/ons, fewer large transac/ons in a par/cular quarter, unan/cipated fluctua/ons in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (3) Our cloud compu/ng strategy, including our Oracle Cloud SoTware-‐as-‐a-‐Service, PlaUorm-‐as-‐a-‐Service and Infrastructure-‐as-‐a-‐Service offerings, may not be successful. (4) If we are unable to develop new or sufficiently differen/ated products and services, or to enhance and improve our products and support services in a /mely manner or to posi/on and/or price our products and services to meet market demand, customers may not buy new soTware licenses, cloud soTware subscrip/ons or hardware systems products or purchase or renew support contracts. (5) Our interna/onal sales and opera/ons subject us to addi/onal risks that can adversely affect our opera/ng results, including risks rela/ng to foreign currency gains and losses. (6) If the security measures for our soTware, hardware, services or Oracle Cloud offerings are compromised or if such offerings contain significant coding, manufacturing or configura/on errors, we may experience reputa/onal harm, legal claims and financial exposure. (7) We have an ac/ve acquisi/on program and our acquisi/ons may not be successful, may involve unan/cipated costs or other integra/on issues or may disrupt our exis/ng opera/ons. 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, par/cularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contac/ng Oracle Corpora/on's Investor Rela/ons Department at (650) 506-‐4073 or by clicking on SEC Filings on Oracle’s Investor Rela/ons website at hdp://www.oracle.com/investor. All informa/on set forth in this press release is current as of June 25, 2014. Oracle undertakes no duty to update any statement in light of new informa/on or future events.
Safe Harbor Statement
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One Goal: #1 in the Cloud
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Oracle Cloud Strategy
PaaS on Market Leading Tech Stack
Modern & Best of Breed SaaS Porcolio Applica?ons.
Placorm.
Infrastructure.
One Goal: #1 in the Cloud
Highly Differen=ated Unmatched Breadth & Depth
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Ready to Lead the Applica?ons Market into the Cloud
Oracle Confiden?al – Internal/Restricted/Highly Restricted 10
37% FY14 Bookings Growth. Posi=oned to Accelerate in FY15.
$74B in Addressable Market • Significant Greenfield Expansion
Opportuni?es in Marke?ng, Service & ERP
• $10B+ ARR Poten?al in Large Apps Customer Base. Less than
5% penetra?on
Opportunity
Global Scale • Thousands of SaaS Sales Reps in
60+ Countries
• 900+ Cloud Partners • 19 Global Data Centers
PorQolio Reach
Complete & Best of Breed • 18 Leaders Ra?ngs equal to SAP,
SFDC & WDAY Combined
• 1,200+ Ac?ve Customer Reference. Added Hundreds in
Last Year.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
$74B in SaaS Addressable Market
Oracle Confiden?al – Internal/Restricted/Highly Restricted 11
$80B
$40B
Oracle SAP SFDC Workday
$60B
$20B
$74B
$20B
$29B
$19B
Service
E-‐Commerce
Financials
SCM
Marke=ng
Projects
EPM Service
Sales
Marke?ng E-‐Commerce
HCM
SCM
Sales
HCM
Financials
Greenfield
Installed Base
Significant Share Gain
Extend Leadership & Share
Source: Gartner Group, Oracle Marke?ng Intelligence
Sales & CPQ
HCM & Talent
ERP
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
$10B of Poten?al ARR in the Oracle On-‐Premise Base
Oracle Confiden?al – Internal/Restricted/Highly Restricted 12
On-‐Premise ARR Poten=al Extend Migrate
5K+ CRM Customers $2B Add Marke?ng, CPQ & Social Core Sales & Service to Cloud
7K+ HCM Customers $3B Add Talent Management Core HR & Payroll to Cloud
15K+ ERP Customers $5B Add Budge?ng & Planning,
Procurement Subsidiaries to Cloud
Core Financials to Cloud
Customer 2 Cloud Program
Financial Incen=ves Re/re support & shiT investment to cloud
Rapid Start-‐Up Services Fixed /me & price cloud
migra/on services
Packaged Integra=ons PorUolio of integra/ons
between on-‐premise & cloud
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
18 SaaS Leader Ra?ngs Equal to Top Compe?tors Combined
Oracle Confiden?al – Internal/Restricted/Highly Restricted 13
20
10
Oracle SAP Workday
15
5
18
8
1 Salesforce.com
9
Source: Gartner Group, Forrester Research Published Reports
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Mature Global Sales Organiza?on
Oracle Confiden?al – Internal/Restricted/Highly Restricted 14
7 Core Sales Teams Aligned to Win in Each Key Market
FY13 FY15
500
Sales Coverage
1,000 2,000
Thousands+++
Sales Produc=vity
Oracle Sales Academy
Engineered Selling Process
R5 R6
R7 R9 R8 Product
Innova=on
R10
Thousands++
1. Marke=ng 2. Sales 3. Service 4. ERP & SCM 5. EPM 6. HCM 7. Mid-‐Market
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900+ Partners Specialized on Cloud Solu?ons
Oracle Confiden?al – Internal/Restricted/Highly Restricted 15
Marke=ng -‐ 487
Service & E-‐Commerce -‐ 4919
ERP -‐ 4317
HCM -‐ 5229
Sales -‐ 3848
Social -‐ 190
18,990 Cloud Specialists
200+ Partner Solu?ons
(Templates & Integra?ons)
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Establishing Oracle as a Leading Cloud Brand
CloudWorld
41,052 Registered Aeendees
Chicago Paris
São Paulo
New Dehli
Bogotá
= FY14
= FY13
Sydney
Tokyo
Dubai
Singapore
Munich London
Mumbai
Mexico City
Los Angeles New York
Melbourne
Moscow
San Francisco
Beijing
= FY15 planned
Frankfurt
London
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Strong Growth in FY14, Posi?oned to Accelerate in FY15
Oracle Confiden?al – Internal/Restricted/Highly Restricted 17
37%
Growth in Bookings
23%
Growth in Revenue
25-‐35%
Growth in Revenue
FY14 Q4 FY14 Q1 FY15
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
PaaS & IaaS: Maintain & Extend Leadership in Enterprise Technology
Highly Differen=ated PlaQorm
Unmatched Breadth & Depth of Services Expanding Sales
Java #1 Database
Built-‐In Mobile, Social, Big Data
Thousands+ Tech Reps
Thousands+++ Apps Reps
+ +
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
One Goal: #1 in the Cloud Simplify IT and Accelerate Innova=on
Oracle Confiden?al – Internal/Restricted/Highly Restricted 19
Highly Differen=ated in SaaS & PaaS Unmatched Breadth & Depth
Share Gain Large Installed Base Poten=al
Mature & Referenceable Products Scale, Trained Sales Force
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