Oracle 2005 Annual Report Download - page 9

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Table of Contents
New software license revenues from applications software represented 27%, 19% and 18% of new software license revenues in fiscal 2006, 2005 and 2004,
respectively.
Fusion Applications
Oracle Fusion Applications represent the next generation of Oracle Applications, based on a service-oriented platform, built on open industry standards,
extensible by customers and partners and interoperable with third party and existing installations. Fusion is being designed to leverage the best functionality and
combine the best features, flows and usability traits of the Oracle E-Business Suite, PeopleSoft, JD Edwards and Siebel application products into one product
line. We believe the resulting suite of applications will deliver a superior ownership experience through improved usability, adaptive business process
automation, built-in business intelligence and industry-specific capabilities.
Applications Unlimited
We recently announced that we would continue to invest in enhancements to our current Oracle E-Business Suite, PeopleSoft, JD Edwards and Siebel
applications products beyond the delivery of Oracle Fusion Applications. With the Applications Unlimited program, customers will not be required to migrate to
Fusion Applications, but may choose to stay with their current product lines that will have dedicated development and support teams.
Software License Updates and Product Support
We seek to protect our customers’ current investments in Oracle technology and applications by offering lifetime support, product enhancements and upgrades.
Software license updates provide customers with rights to unspecified software product upgrades, maintenance releases and patches released during the term of
the support period, which is typically one year. Product support includes internet access to technical content, as well as internet and telephone access to technical
support personnel. Product support typically is provided by our global support centers. Software license updates and product support are generally priced as a
percentage of the new software license fees. Substantially all of our customers purchase software license updates and product support when they acquire new
software licenses. In addition, substantially all of our customers renew their software license updates and product support contracts annually. Software license
updates and product support revenues represented 46%, 45% and 44% of total revenues in fiscal 2006, 2005 and 2004, respectively.
Services Business
Consulting
Oracle Consulting assists customers in accessing the business value in our applications and technology using business requirements analysis, design,
configuration as well as support and other services such as preconfigured business flows. We deploy professionals globally through various blended delivery
capabilities, including use of personnel from offshore delivery centers and applications solutions centers to leverage economies of scale for our customers.
Consulting revenues represented 15%, 15% and 16% of total revenues in fiscal 2006, 2005 and 2004, respectively.
On Demand
On Demand (formerly advanced product services) includes Oracle On Demand and Advanced Customer Services. Oracle On Demand provides multi-featured
software and hardware management and maintenance services for our database, middleware and applications software. We recently expanded our Oracle On
Demand offerings with the addition of Siebel’s CRM On Demand. We believe Oracle On Demand enables our customers to lower information technology costs
and improve their business efficiency by having us manage for them the availability, security, performance and change management for our software. Advanced
Customer Services consists of configuration and performance analysis, personalized support and annual on-site technical services. On Demand revenues
represented 3% of total revenues in fiscal 2006, 2005 and 2004.
6
Source: ORACLE CORP, 10-K, July 21, 2006 Powered by Morningstar® Document Research℠