Oracle 2005 Annual Report Download - page 10

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Table of Contents
Education
We provide training to customers, partners and employees as part of our mission of accelerating the adoption of our technology around the world. Our training is
provided primarily through public and private instructor-led classroom events, but is also made available through a variety of online courses and self paced media
training on CD-ROMs. Education revenues represented 2% of total revenues in fiscal 2006, 2005 and 2004.
Marketing and Sales
Sales Distribution Channels
In the United States, we market our products and services primarily through our own sales and service organization. Sales and service employees are based in our
headquarters and in field offices throughout the United States.
Outside the United States, we market our products and services primarily through our subsidiary sales and service organizations. Our subsidiaries license and
support our products in their local countries as well as within other foreign countries where we do not operate through a direct sales subsidiary.
We also market our products worldwide through indirect channels. The companies that comprise our indirect channel network are members of the Oracle Partner
Network. Our partners resell our products or combine our database, development tools and applications with computer hardware, software application packages
or services for subsequent redistribution and/or implementation.
The Oracle Partner Network allows us to pursue new business opportunities through partners as well as with direct customers. Partners in the program include
consultants, education providers, internet service providers, network integrators, resellers, independent software vendors and system integrators / implementers.
Partners can also participate in the Oracle Technology Network. This program is specifically designed for the database administrator, internet developer and
applications suite user communities. We provide applications, technology, education and technical support that enable our partners to effectively integrate our
products into their business offerings. The combination of Oracle’s infrastructure and applications and our partners’ expertise broadens our exposure in new
markets.
International Markets
We sell our products and provide services worldwide. Our geographic coverage allows us to draw on business and technical expertise from a worldwide
workforce, provides stability to our operations and revenue streams to offset geography-specific economic trends and offers us an opportunity to take advantage
of new markets for products. A summary of our domestic and international revenues and long-lived assets is set forth in Note 15 of Notes to Consolidated
Financial Statements.
Cyclicality and Seasonality
General economic conditions have an impact on our business and financial results. The markets in which we sell our products and services have, at times,
experienced weak economic conditions that have negatively affected revenues. Our quarterly results reflect distinct seasonality in the sale of our products and
services, as our revenues are typically highest in our fourth fiscal quarter and lowest in our first fiscal quarter. See “Quarterly Results of Operations” in Item 7 for
a more complete description of the cyclicality and seasonality of our revenues and expenses.
Customers
Our customer base consists of a significant number of businesses of many sizes and industries, government agencies, educational institutions and resellers. No
single customer accounted for 10% or more of revenues in fiscal 2006, 2005 or 2004.
7
Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠