Oracle 2013 Annual Report Download - page 17

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Table of Contents
tools to help enterprise customers improve infrastructure performance, reduce cost and complexity and simplify storage and server connectivity.
We also offer hardware and software networking products for the communications industry. Our communications networks solutions for service
providers include signaling, policy, and subscriber data management solutions.
Oracle Solaris and Oracle Linux Operating Systems, Virtualization and Other Hardware-Related Software
The Oracle Solaris operating system is designed to provide a reliable, secure and scalable operating system environment through significant
kernel feature development, networking, security, and file system technologies as well as close integration with hardware features. This design
provides us with an ability to combine Oracle Solaris with our own hardware components to achieve certain performance and efficiency
advantages in comparison with our competitors. The Oracle Solaris operating system is based on the UNIX operating system, but is unique
among UNIX systems in that it is available on our SPARC servers and x86 servers. We also support Oracle Solaris deployed on other
companies’ hardware products.
The Oracle Linux operating system with Oracle’s Unbreakable Enterprise Kernel is a Linux operating system for enterprise workloads including
databases, middleware and applications. Oracle’s Unbreakable Enterprise Kernel is designed to work well with Oracle products and enables
users to patch core operating systems without downtime.
Oracle provides a broad portfolio of virtualization solutions from the desktop to the data center. Oracle VM is server virtualization software for
both Oracle SPARC and x86 servers and supports both Oracle and non-Oracle applications. Oracle VM software is designed to enable different
applications to share a single physical system for higher utilization and efficiency and simplify software deployment by enabling pre-configured
software images to be created and rapidly deployed without installation or configuration errors. In addition, Oracle Solaris 11 provides
comprehensive, built-in virtualization capabilities for both SPARC and x86 servers, networking and storage resources.
In addition to Oracle Solaris and Oracle Linux operating systems and Oracle’s virtualization software, we also develop a range of other
hardware-related software, including development tools, compilers, management tools for servers and storage, diagnostic tools and file systems.
Hardware Systems Support
Our hardware systems support offerings provide customers with software updates for software components that are essential to the functionality
of our server and storage products, such as Oracle Solaris and certain other software products, and can include product repairs, maintenance
services and technical support services. We continue to evolve hardware systems support processes that are intended to proactively identify and
solve quality issues and to increase the amount of hardware systems support contracts sold and renewed 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 6% of our total revenues in each of fiscal 2014 and 2013 and 7% in fiscal 2012.
Services Business
We offer services solutions to help customers and partners maximize the performance of their investments in Oracle technology. Our services are
differentiated based on our focus on Oracle technology, extensive experience and broad set of intellectual property and best practices. Our
services business represented 10% of our total revenues in fiscal 2014 and 11% in each of fiscal 2013 and 2012. Our services business, which is
comprised of the remainder of our operating segments, offers:
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consulting services that are designed to help our customers and global system integrator partners more successfully architect and deploy
our products including IT strategy alignment, enterprise architecture planning and design, initial product implementation and
integration, and ongoing product enhancements and upgrades. We utilize a global, blended delivery model to optimize value for our
customers and partners, consisting of on-premise consultants from local geographies, industry specialists and consultants from our
global delivery and solution centers;