Oracle 2006 Annual Report Download - page 14

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Table of Contents
In the sale of consulting and systems integration services, we both partner with and compete against
Accenture, Electronic Data Systems Corporation, IBM Global Services, Bearing Point, Inc., CapGemini
Group and many others.
Research and Development
We develop the majority of our products internally. In addition, we have acquired technology through
business acquisitions. We also purchase or license intellectual property rights in certain circumstances.
Internal development allows us to maintain technical control over the design and development of our
products. We have a number of United States and foreign patents and pending applications that relate to
various aspects of our products and technology. While we believe that our patents have value, no single patent
is essential to us or to any of our principal business segments.
Research and development expenditures were $2.2 billion, $1.9 billion and $1.5 billion, or 12%, 13% and
13% of total revenues, in fiscal 2007, 2006 and 2005, respectively. As a percentage of new software license
revenues, research and development expenditures were 37%, 38% and 37% in fiscal 2007, 2006 and 2005,
respectively. Rapid technological advances in hardware and software development, evolving standards in
computer hardware and software technology, changing customer needs and frequent new product
introductions and enhancements characterize the software markets in which we compete. We plan on
continuing to dedicate a significant amount of resources to research and development efforts to maintain and
improve our current product offerings including our database, middleware and applications software.
Employees
As of May 31, 2007, we employed 74,674 full-time employees, including 16,902 in sales and marketing,
6,775 in license updates and product support, 25,068 in services, 18,130 in research and development and
7,799 in general and administrative positions. Of these employees, 25,990 were located in the United States
and 48,684 were employed internationally. None of our employees in the United States is represented by a
labor union; however, in certain international subsidiaries workers councils represent our employees.
Available Information
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as
amended, are available, free of charge, on our Investor Relations web site at www.oracle.com/investor as
soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities
and Exchange Commission. The information posted on our web site is not incorporated into this Annual
Report.
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Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠