Oracle 2009 Annual Report Download - page 15

Table of Contents
Networking
We create networking components and products designed to efficiently connect and deploy server and storage clusters in data centers. The development of our
networking products includes both hardware and software development for the Infiniband and Ethernet technologies that are used with our server and storage
products and are integrated into our management tools.
Hardware Systems Support
Customers that purchase our hardware systems products may also elect to purchase our hardware systems support offerings. Our hardware systems support
offerings provide customers with software updates for the software components that are essential to the functionality of our systems and storage products, such as
Solaris, and can include product repairs, maintenance services, and technical support services. We are focusing on identifying hardware systems support
processes that are intended to proactively identify and solve quality issues and to increase the amount of new hardware systems support contracts sold in
connection with the sales of our hardware systems products. Hardware systems support contracts are generally priced as a percentage of the net hardware systems
products fees. Our hardware systems support revenues represented 3% of our total revenues in fiscal 2010.
Services Business
Our services business consists of consulting, On Demand and education. As a result of our acquisition of Sun, we expanded and enhanced our customer base and
services offerings.
Consulting
Oracle Consulting is designed to help our customers more successfully deploy our products. Our consulting services include: enterprise architecture design and
implementation; business/IT strategy alignment; business process simplification; solution integration; and product implementation, enhancements, and upgrades.
These services help our customers achieve their business goals, manage their total cost of ownership and reduce the risk associated with their product
deployment. Oracle Consulting employs consulting professionals globally to engage our customers directly, as well as to provide specialized expertise to our
global systems integrator partners. Oracle Consulting utilizes a global blended delivery model to achieve economies of scale for our customers. This global
delivery model consists of onsite consultants within the customer’s local geography as well as consultants in our global delivery and solution centers. Consulting
revenues represented 10%, 14%, and 15% of total revenues in fiscal 2010, 2009 and 2008, respectively.
On Demand
On Demand includes our Oracle On Demand and Advanced Customer Services offerings. Oracle On Demand is designed to provide multi-featured software and
hardware management and maintenance services for customers that are delivered at our data center facilities, select partner data centers or physically on-site at
customer facilities. Advanced Customer Services consists of solution lifecycle management services, database and application management services,
industry-specific solution support centers, and remote and on-site expert services. As a result of our acquisition of Sun, we increased the volume and breadth of
our Advanced Customer Services offerings, including onsite and remote operations management, hardware systems expert services, and packaged offerings that
support the installation and optimization of Sun systems. We believe that our On Demand offerings provide our customers flexibility in how they manage their IT
environments and an additional opportunity to lower their total cost of ownership and can therefore provide us with a competitive advantage. On Demand
revenues represented 3% of total revenues in each of fiscal 2010, 2009 and 2008.
Education
We provide training to customers, partners and employees as a part of our mission of accelerating the adoption and use of our software and hardware products
and to create opportunities to grow our product revenues. Our training is provided through a variety of formats, including instructor-led classes at our education
centers, live
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠