Oracle 2011 Annual Report Download - page 7

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Oracle Exalogic Elastic Cloud
Oracle Exalogic Elastic Cloud is an engineered system that combines Oracle Fusion Middleware software with
our hardware to more effectively run Java and non-Java applications and provide customers with an applications
platform for cloud computing. Oracle Exalogic Elastic Cloud improves the performance of applications that run
on it and enables customers to consolidate multiple applications onto a single system designed to be scalable,
reliable and secure. As an integrated system, Oracle Exalogic Elastic Cloud simplifies routine maintenance, such
as software patching, by providing a single solution that covers the entire system.
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.
Our software solutions are designed to help customers reduce the cost and complexity of their IT infrastructures
by delivering solutions via an industry standards-based, integrated architecture. This standards-based architecture
enables our software products to work in customer environments that may include Oracle or non-Oracle
hardware or software components. This approach is designed to support customer choice, reduce customer risk
and be adapted to the specific needs of any industry or application. In this model, our database and certain of our
middleware offerings are designed to manage and protect a customer’s underlying business information, while
application servers run enterprise applications that are designed to automate multiple business functions and
provide intelligence in critical functional areas. Our software products are designed to operate on both single
server and clustered server configurations and to support a choice of operating systems, including, for example,
Oracle Solaris, Oracle Linux, Microsoft Windows and third party UNIX products.
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 generally provides for an initial fee to use the software product in perpetuity
based on a maximum number of processors, named users or other metrics. We also have other types of software
license agreements, including licenses that are restricted by the number of employees, licenses that provide for a
limited term and open source licenses. New software license revenues represented 26%, 28%, and 31% of total
revenues in fiscal 2011, 2010 and 2009, respectively.
Database and Middleware Software
Our database and middleware software offerings are designed to provide a cost-effective, high-performance
platform for running and managing business applications for midsize businesses, as well as large, global
enterprises. Our customers are increasingly focused on reducing the total cost of their IT infrastructure, and we
believe that our software offerings help them achieve this goal. Our software is designed to accommodate
demanding, non-stop business environments using clustered middleware and database servers and storage. These
clusters are designed to scale incrementally as required to address our customers’ IT capacity; satisfy their
planning and procurement needs; support their business applications with a standardized platform architecture;
reduce their risk of data loss and IT infrastructure downtime; and efficiently utilize available IT resources to meet
quality of service expectations.
New software license revenues from database and middleware products represented 72% of our new software
license revenues in each of fiscal 2011, 2010 and 2009.
Database Software
Oracle Database software is the world’s most popular enterprise database software. It is designed to enable the
secure storage, retrieval and manipulation of all forms of data, including transactional data, business information,
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