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Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
15. SEGMENT INFORMATION
FASB Statement No. 131, Disclosures about Segments of an Enterprise and Related Information, establishes
standards for reporting information about operating segments. Operating segments are defined as components
of an enterprise about which separate financial information is available that is evaluated regularly by the chief
operating decision maker, or decision making group, in deciding how to allocate resources and in assessing
performance. Our chief operating decision maker is our Chief Executive Officer. We are organized
geographically and by line of business. While our Chief Executive Officer evaluates results in a number of
different ways, the line of business management structure is the primary basis for which the allocation of
resources and financial results are assessed. We have two businesses, software and services, which are further
divided into five operating segments. Our software business is comprised of two operating segments: (1) new
software licenses and (2) software license updates and product support. Our services business is comprised of
three operating segments: (1) consulting, (2) On Demand and (3) education.
The new software license line of business is engaged in the licensing of database and middleware software as
well as applications software. Database and middleware software includes database management software,
application server software, identification management and access, analytics, development tools and
collaboration software. Applications software provides enterprise information that enables companies to
manage their business cycles and provide intelligence in functional areas such as financials, human resources,
maintenance management, manufacturing, marketing, order fulfillment, product lifecycle management,
procurement, projects, sales, services, enterprise resource planning and supply chain planning. The software
license updates and product support line of business provides customers with rights to unspecified software
product upgrades and maintenance releases, internet access to technical content, as well as internet and
telephone access to technical support personnel during the support period. The software license updates and
product support line of business also offers customers Oracle Unbreakable Linux Support, which provides
enterprise level support for the Linux operating system.
The consulting line of business provides services to customers in business strategy and analysis, business
process optimization, and the implementation, deployment and upgrade of our database, middleware and
applications software. On Demand includes Oracle On Demand, CRM On Demand and Advanced Customer
Services. Oracle On Demand provides multi-featured software and hardware management and maintenance
services for customers that deploy our database, middleware and applications software at Oracle’s data center
facilities or at a site of our customer’s choosing. CRM On Demand is a service offering that provides our
customers with our Siebel CRM Software functionality delivered via a hosted solution that we manage.
Advanced Customer Services consists of solution support centers, business critical assistance, technical account
management, expert services, configuration and performance analysis, personalized support and annual on-site
technical services. The education line of business provides instructor led, media based and internet based
training in the use of our database, middleware and applications software.
We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating
segments.
102
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠