Oracle 2015 Annual Report Download - page 15

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Table of Contents
Oracle also offers certain of these mobile development capabilities via the Oracle Cloud, including Oracle Mobile Cloud Service.
Java
Java is the computer industry’s most widely-used software development language and is viewed as a global standard. The Java programming language and platform
together represent one of the most popular and powerful development environments in the world, one that is used by millions of developers globally to develop
business applications. Oracle Fusion Middleware software products and certain of our Oracle Applications are built using our Java technology platform, which we
believe is a key advantage for our business. Customers may license the use of Java or access Java through Oracle Java Cloud Service.
Java is designed to enable developers to write software on a single platform and run it on many other different platforms, independent of operating system and
hardware architecture. Java has been adopted by both independent software vendors (ISV) that have built their products on Java and by enterprise organizations
building custom applications or consuming Java-based ISV products.
Software License Updates and Product Support
We seek to protect and enhance our customers’ current investments in Oracle application and platform technologies by offering proactive and personalized support
services, including Oracle Lifetime Support and product enhancements and upgrades. Software license updates provide on-premise new software license customers
with rights to unspecified 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 on-premise new software licenses and renew their software license
updates and product support contracts annually.
Cloud Infrastructure as a Service (IaaS)
Our cloud infrastructure as a service segment, which is a part of our cloud and on-premise software business, represented 2% of total revenues in each of fiscal
2016 and 2015 and 1% of total revenues in fiscal 2014. Our cloud IaaS segment includes Oracle Cloud IaaS and Oracle Managed Cloud Services offerings.
Oracle Cloud IaaS is designed to deliver enterprise-grade, hosted and supported IT environments within the Oracle Cloud to perform elastic compute, storage and
networking services for enterprise workloads. Organizations can also deploy certain of these IaaS offerings locally at their data center through our Oracle Cloud at
Customer program. We continue to invest in IaaS technologies to simplify customer migration to the Oracle Cloud as well as to provide customers with flexibility
of running workloads on, and portability to shift workloads between, on-premise IT environments and the Oracle Cloud. Oracle Cloud IaaS offerings include,
among others:
• Oracle Compute Cloud Service, which is designed to allow organizations to quickly enable virtual compute environments and run them at scale on the
Oracle Cloud with predictable, consistent performance and network isolation;
• Oracle Storage Cloud Service, which is designed to be a secure and scalable object storage solution for storing and accessing data from any environment
connected to the internet; and
• Oracle Network Cloud Service, which offers site-to-site virtual private network secure extension and high bandwidth connection services.
Oracle Managed Cloud Services provide comprehensive software and hardware management and maintenance services for customer IT infrastructure for a fee for a
stated term that is hosted at our Oracle data center facilities, select partner data centers or physically on-premise at customer facilities.
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