Oracle 2015 Annual Report Download - page 19

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Table of Contents
cloud, traditional on-premise and hybrid cloud environments in a seamless manner via a single interface, which accelerates customer deployment of and transition
to the cloud with Oracle products. Oracle also enhances and integrates with certain key open technologies including OpenStack, which is broadly supported by
Oracle products for customers that require seamless integration with this method of cloud management and provisioning. The combination of Oracle’s
comprehensive solutions and investments in open standards allows Oracle customers to manage Oracle products efficiently across a range of IT offerings from
traditional on-premise environments to the most advanced cloud architectures.
Hardware Support
Our hardware support offerings provide customers with software updates for software components that are essential to the functionality of our hardware 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 support processes that are intended to proactively identify and solve quality issues and to increase the amount of new and renewed hardware
support contracts sold in connection with the sales of our hardware products. Hardware support contracts are generally priced as a percentage of the net hardware
products fees.
Services
We offer services solutions to help customers and partners maximize the performance of their investments in Oracle application, platform and infrastructure
technologies. We believe our services are differentiated based on our focus on Oracle technologies, extensive experience and broad sets of intellectual property and
best practices. Our services business represented 9% of our total revenues in each of fiscal 2016 and 2015, and 10% of our total revenues in fiscal 2014. Our
services business, which is comprised of the remainder of our operating segments, offers the following:
• consulting services that are designed to help our customers and global system integrator partners more successfully architect and deploy our offerings,
including IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, and ongoing software
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;
• advanced customer support services, which are provided on-premise and remotely to our customers to enable increased performance and higher
availability of their Oracle products and services and also include certain other services; and
• education services for Oracle products and services, including training and certification programs that are offered to customers, partners and employees
through a variety of formats, including instructor-led classes at our education centers, live virtual training, self-paced online training, private events and
custom training.
Marketing and Sales
We directly market and sell our products and services to businesses of many sizes and in many industries, government agencies and educational institutions. We
also market and sell our offerings through indirect channels. No single customer accounted for 10% or more of our total revenues in fiscal 2016, 2015 or 2014.
In the United States, our sales and services employees are based in our headquarters and in field offices throughout the country. Outside the United States, our
international subsidiaries sell, support and service our offerings in their local countries as well as within other foreign countries where we do not operate through a
direct sales subsidiary. Our geographic coverage allows us to draw on business and technical expertise from a global workforce, provides stability to our operations
and revenue streams to offset geography specific economic trends and offers us an opportunity to take advantage of new markets for our offerings. Our
international operations subject us to certain risks, which are more fully described in “Risk Factors” included in Item 1A of
17