Oracle 2007 Annual Report Download - page 13

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Table of Contents
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. We
also offer Oracle Unbreakable Linux Support, which provides enterprise level support for the Linux operating system
and, in fiscal 2008, we introduced support for Oracle VM server virtualization software.
Our software license updates and product support revenues represented 46% of total revenues in fiscal 2008, 2007
and 2006.
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,
enhancements, and upgrades; and ongoing managed services. These services help our customers 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 global delivery centers and applications solutions centers to leverage economies
of scale for our customers. Consulting revenues represented 15%, 16% and 15% of total revenues in fiscal 2008,
2007 and 2006, respectively.
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
over the internet our database, middleware and applications software delivered either at our data center facilities, at
select partner data centers or at customer facilities. CRM On Demand is a service offering that provides our
customers with our CRM software functionality delivered via a hosted, web-based 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 2008, 2007 and 2006.
Education
We provide training to customers, partners and employees as a part of our mission of accelerating the adoption of our
technology around the world. We currently offer thousands of courses covering all of our 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. Our acquisition of BEA further enhanced our educational offerings in middleware.
Education revenues represented 2% of total revenues in fiscal 2008, 2007 and 2006.
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.
We also market our products worldwide through indirect channels. The companies that comprise our indirect channel
network are members of the Oracle PartnerNetwork. The Oracle PartnerNetwork is a global program that
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Source: ORACLE CORP, 10-K, July 02, 2008 Powered by Morningstar® Document Research℠