Oracle 2013 Annual Report Download - page 15

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Table of Contents
communications, consumer goods, education, energy, engineering and construction, financial services, healthcare, life sciences, manufacturing,
professional services, public sector, retail, travel, transportation and utilities. Our ability to offer applications to address industry-specific
complex processes provides us an opportunity to expand our customers’ knowledge of our broader product offerings and address customer
specific technology challenges.
Cloud Infrastructure-as-a-Service
Our cloud infrastructure-as-a-
service segment, which represented 1% of our total revenues in each of fiscal 2014 and 2013 and 2% in fiscal 2012
provides deployment and management offerings for our software and hardware and related IT infrastructure, including:
Software License Updates and Product Support
We seek to protect and enhance our customers’ current investments in Oracle software by offering proactive and personalized support services,
including Oracle Lifetime Support and product enhancements and upgrades. Software license updates provide customers with rights to software
product upgrades and maintenance releases and patches released during the term of the support period. Product support includes internet and
telephone access to technical support personnel located in our global support centers, as well as internet access to technical content through “My
Oracle Support”. Software license updates and product support contracts are generally priced as a percentage of the net new software license
fees. Substantially all of our customers purchase software license updates and product support contracts when they acquire new software licenses
and renew their software license updates and product support contracts annually. Our software license updates and product support revenues
represented 47%, 46% and 43% of our total revenues in fiscal 2014, 2013 and 2012, respectively.
Hardware Systems Business
Our hardware systems business consists of our hardware systems products segment and hardware systems support segment.
Hardware Systems Products
We provide a broad selection of hardware systems and related services including servers, storage, networking, virtualization software, operating
systems and management software to support diverse IT environments, including cloud computing environments. We engineer our hardware
systems with virtualization and management capabilities to enable the rapid deployment and efficient management of cloud and on-premise IT
infrastructures. Our hardware products support many of the world’s largest cloud infrastructures, including the Oracle Cloud.
Our hardware products and services are designed to work in customer environments that may include other Oracle or non-Oracle hardware or
software components. This flexible and open approach provides Oracle’s customers with a broad range of choices in deploying hardware
systems, which we believe is a priority for our customers. Our hardware products and services also help to meet customers’ demands to manage
growing amounts of data and business requirements to meet increasing compliance and regulatory demands and to reduce
11
•
our virtual machine instance services in which we deploy, secure, provision, manage and maintain certain of our hardware products for
our customers to provide them with a set of cloud-based core infrastructure capabilities like elastic compute and storage services to run
workloads in the cloud;
•
our hardware and related support services offerings for certain of our hardware products that are deployed at our customers’
data centers
for a monthly fee that includes the option of elastic compute capacity on demand and Oracle Platinum and PlatinumPlus Services for a
higher level of support and advisory services designed to ensure these hardware products remain configured and tuned correctly with
quarterly automated assessments for performance, availability and security; and
•
our comprehensive software and hardware management and maintenance services for customers hosted at our Oracle data center
facilities, select partner data centers or physically on
-
premise at customer facilities.