Oracle 2009 Annual Report Download - page 16

Table of Contents
virtual training, self-paced online training, training via CD-ROM, private events and custom training. Our live virtual class offerings allow students anywhere in
the world to receive real-time, interactive training online. In addition, we also offer a certification program certifying database administrators, developers,
implementers, consultants and architects. Education revenues represented 1% of our total revenues in fiscal 2010 and 2% of total revenues in fiscal 2009 and
2008, respectively.
Marketing and Sales
We directly market and sell our products and services primarily through our subsidiary sales and service organizations to businesses of many sizes and in many
industries, government agencies and educational institutions. We also market, and sell our products through indirect channels. No single customer accounted for
10% or more of our total revenues in fiscal 2010, 2009 or 2008.
In the United States, our sales and service employees are based in our headquarters and in field offices throughout the country. 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. Our geographic coverage allows us to draw on business and technical expertise from a global workforce, provides stability to our
operations and revenue streams to offset geography-specific economic trends and offers us an opportunity to take advantage of new markets for our products. A
summary of our domestic and international revenues and long-lived assets is set forth in Note 16 of Notes to Consolidated Financial Statements.
We also market our products worldwide through indirect channels. The companies that comprise our indirect channel network are members of the Oracle Partner
Network. The Oracle Partner Network is a global program that manages our business relationships with a large, broad-based network of companies, including
independent software and hardware vendors, system integrators and resellers who deliver innovative solutions and services based upon our products. By offering
our partners access to our premier products, educational information, technical services, marketing and sales support, the Oracle Partner Network program
extends our market reach by providing our partners with the resources they need to be successful in delivering solutions to customers globally. Prior to our
acquisition of Sun, the majority of Sun’s hardware systems products were sold through indirect channels. Although we plan to continue to sell our hardware
products through indirect channels, including independent distributors and value added resellers, we have begun enhancing direct sales coverage for our
hardware systems products and intend that our direct sales force will sell proportionately more of our hardware systems products in the future than they do
currently.
Seasonality and Cyclicality
Our quarterly results reflect distinct seasonality in the sale of our products and services. Our total revenues and operating margins are typically highest in our
fourth fiscal quarter and lowest in our first fiscal quarter. General economic conditions also have an impact on our business and financial results. The markets in
which we sell our products and services have, at times, experienced weak economic conditions that have negatively affected our revenues. See “Selected
Quarterly Financial Data” in Item 7 of this Annual Report for a more complete description of the seasonality and cyclicality of our revenues, expenses and
margins.
Competition
We face intense competition in all aspects of our business. The nature of the IT industry creates a competitive landscape that is constantly evolving as firms
emerge, expand or are acquired, as technology evolves and as customer demands and competitive pressures otherwise change.
Our customers are demanding less complexity and lower total cost in the implementation, sourcing, integration and ongoing maintenance of their enterprise
software and hardware systems, which has led increasingly to our product offerings being viewed as a “stack” of software and hardware designed to work
together in a standards-compliant environment—from “Applications to Disk.” Our enterprise software and hardware offerings compete directly with some
offerings from the most competitive companies in the world, including Microsoft Corporation (Microsoft), IBM Corporation (IBM), Hewlett Packard Company
(HP), SAP AG, and Intel, as well as many
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Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠