Oracle 2006 Annual Report Download - page 11

Table of Contents
support for Linux, addresses customer demand for true enterprise-quality Linux support. The Oracle
Unbreakable Linux support program delivers fully tested, high-quality, comprehensive and integrated support
solutions to our customers using the Linux operating system. With Oracle solutions on Linux, our customers
benefit from high performance, reliability and data security at a fraction of the cost of proprietary platforms.
Oracle Unbreakable Linux also allows us to offer end-to-end support for our customers’ entire software
“stack,” including enterprise applications, middleware, database and operating system.
Our software license updates and product support revenues represented 46% of total revenues in both fiscal
2007 and 2006 and 45% of total revenues in fiscal 2005.
Services Business
Consulting
Oracle Consulting assists our customers in successfully deploying our applications and technology products.
Our consulting services include business strategy and analysis; business process optimization; product
implementation, enhancement, and upgrades; and ongoing managed services. These services help our
customers to achieve measurable business results, manage their total cost of ownership, and reduce their
deployment risk.
Oracle Consulting deploys professionals globally utilizing our blended delivery capabilities, including use of
onsite consultants and personnel from our offshore delivery centers and applications solutions centers to
leverage economies of scale for our customers. Consulting revenues represented 16% of total revenues in
fiscal 2007 and 15% of total revenues in both fiscal 2006 and fiscal 2005.
On Demand
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 our data center facilities or at a
site of our customer’s choosing. We recently expanded our Oracle On Demand offerings to include our
PeopleSoft, Siebel Business Intelligence and retail applications. 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. On Demand revenues represented 3% of total revenues in fiscal 2007,
2006 and 2005.
Education
We provide training to customers, partners and employees as part of our mission of accelerating the adoption
of our technology around the world. We currently offer thousands of courses covering all of Oracle’s product
offerings. 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. In
addition, we also offer a certification program certifying database administrators, developers and
implementers. Oracle University also offers User Adoption Services designed to provide comprehensive
training services to help customers get the most out of their investment in Oracle. Education revenues
represented 2% of total revenues in fiscal 2007, 2006 and 2005.
Marketing and Sales
Sales Distribution Channels
We directly market and sell our products and services primarily through our subsidiary sales and service
organizations. In the United States our sales and service employees are based in our headquarters and in field
offices throughout the United States. Outside the United States, our international 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.
7
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠