Oracle 2009 Annual Report Download - page 6

Table of Contents
PART I
Item 1. Business
General
We are the world’s largest enterprise software company. As a result of our acquisition of Sun Microsystems, Inc. (Sun) in January 2010, we are also a leading
provider of hardware products and services. We develop, manufacture, market, distribute and service database and middleware software, applications software
and hardware systems, consisting primarily of computer server and storage products, which are designed to help our customers manage and grow their business
operations.
Our goal is to be the world’s most complete, open and integrated enterprise software and hardware company. We offer customers scalable, reliable, secure and
integrated software and hardware solutions that are designed to improve transactional efficiencies, adapt to an organization’s unique needs and allow better ways
to access and manage information and automate business processes at a lower total cost of ownership. We seek to be an industry leader in each of the specific
product categories in which we compete and to expand into new and emerging markets.
We believe our internal, or organic, growth and continued innovation with respect to our software, hardware and services businesses are the foundation of our
long-term strategic plan. In fiscal 2010, 2009 and 2008 we invested $3.3 billion, $2.8 billion and $2.7 billion, respectively, in research and development to
enhance our existing portfolio of products and services and to develop new products, features and services. We also believe that an active acquisition program is
an important element of our corporate strategy as it strengthens our competitive position, expands our customer base, provides greater scale to accelerate
innovation, grows our revenues and earnings, and increases stockholder value. In recent years, we have invested billions of dollars to acquire a number of
companies, products, services and technologies that add to, are complementary to or have otherwise enhanced our existing offerings. We expect to continue to
acquire companies, products, services and technologies in furtherance of our corporate strategy.
Oracle Corporation was incorporated in 2005 as a Delaware corporation and is the successor to operations originally begun in June 1977.
Software, Hardware Systems and Services
With the acquisition of Sun, we are now organized into three businesses—software, hardware systems and services—which are further divided into seven
operating segments. Our software business is comprised of two operating segments: (1) new software licenses and (2) software license updates and product
support. Our hardware systems business consists of two operating segments: (1) hardware systems products and (2) hardware systems support. Our services
business is comprised of three operating segments: (1) consulting, (2) On Demand and (3) education.
Our software, hardware systems and services businesses represented 77%, 9% and 14% of our total revenues, respectively, in fiscal 2010. Prior to our acquisition
of Sun in fiscal 2010, we did not have a hardware systems segment. Our software and services businesses represented 81% and 19% of our total revenues,
respectively, in fiscal 2009 and 80% and 20% of our total revenues, respectively, in fiscal 2008. See Note 16 of Notes to Consolidated Financial Statements for
additional information related to our operating segments.
Software Business
Our software business consists of our new software licenses segment and software license updates and product support segment.
New Software Licenses
The new software licenses operating segment of our software business includes the licensing of database and middleware software as well as applications
software. As a result of our acquisition of Sun, we acquired software technologies that expanded and enhanced our existing database and middleware software
product offerings, including the Java technology platform.
2
Source: ORACLE CORP, 10-K, July 01, 2010 Powered by Morningstar® Document Research℠