Oracle 2006 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2006 Oracle annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 133

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133

Table of Contents
Software Business
New Software Licenses
New software licenses include the licensing of database and middleware software, which consists of Oracle
Database and Oracle Fusion Middleware, as well as applications software. Our technology and business
solutions are based on an internet model comprised of interconnected database servers, application servers,
web servers and computers as well as mobile devices running web browsers. This architecture enables users
to access business data and applications through a universally adopted web browser interface, while providing
enterprises the most efficient and cost effective method of managing business information and applications.
In an internet model, database servers manage and protect the underlying business information, while
application servers run the business applications that automate a myriad of business functions. We have
focused on concepts such as global single instance application deployment that involve fewer, high quality
databases of important business information, rather than dozens or hundreds of disparate databases that are
difficult to synchronize and coordinate. Our integrated architecture provides high quality business information
and can be adapted to the specific needs of any industry or application. Oracle technology operates on single
server or clustered server configurations, and supports a choice of operating systems including Linux, UNIX
and Windows. In fiscal 2007, we introduced a program to support the Linux open source operating system for
our customers’ information technology (IT) platforms.
New software license revenues include fees earned from granting customers licenses to use our software
products and exclude revenues derived from software license updates and product support. The standard end
user software license agreement for our products provides for an initial fee to use the product in perpetuity
based on a maximum number of processors, named users or other metrics. We also have other types of
software license agreements restricted by the number of employees or the license term. New software license
revenues represented 33%, 34% and 35% of total revenues in fiscal 2007, 2006 and 2005, respectively.
Database and Middleware Software
Our grid software provides a cost-effective, high-performance platform for running and managing business
applications for small and mid-size businesses and large global enterprises. With an increasing focus by
enterprises on reducing their total cost of IT infrastructure, Oracle’s grid software is designed to
accommodate demanding, non-stop business environments, using clusters of low cost servers and storage that
can incrementally scale as required. The unique ability to assign computing resources as required simplifies
our customers’ computing capacity, planning and procurement in order to support all of their business
applications. With an Oracle grid infrastructure, our customers can lower their investment in IT hardware,
reduce their risk of IT infrastructure downtime and easily cope with sudden increases in demand on their IT
environments during high traffic periods. New software license revenues from database and middleware
products represented 71%, 73% and 81% of new software license revenues in fiscal 2007, 2006 and 2005,
respectively.
Database
As the world’s most popular database, Oracle’s relational database enables the secure storage, manipulation
and retrieval of all forms of data including structured data that resides in business applications, XML data,
analytics data, spatial data and other unstructured data such as documents, spreadsheets and images. Designed
for enterprise grid computing, the Oracle Database is available in four editions: Express Edition, Standard
Edition One, Standard Edition and Enterprise Edition. All editions are built using the same underlying code,
which means that database applications can easily scale from small, single processor servers to clusters of
multi-processor servers.
Options to Oracle Database Enterprise Edition are available to meet specific requirements in the areas of
performance and scalability, high availability, security and compliance, data warehousing, unstructured data
integration and systems management. Examples of these options include: Oracle Real Application Clusters,
which consolidates a single, scalable and fault tolerant database that is shared across an interconnected cluster
of servers (also available on our other database editions); Oracle Partitioning, which supports large
transaction processing and business intelligence database systems and cost effectively manages data
throughout its lifecycle; and Oracle
2
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠