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Linux & Open Source Usage In The Fortune 500
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Agenda

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World’s Largest Enterprise Software Company
                  300,000 Global Customers
                USD$22.4B in Revenue, FY08
                     (MYR$78.8 Trillion)
IT Functions at Oracle




                DEVELOPMENT
Supporting 84,000 Employees               Oracle.com
                                  Oracle Technology Network
Operating in 145 Countries          Oracle Partner Network

50+ acquisitions in 4 years



>1 Mil Emails per day
35+ Mil Security events per day
                                    ERP, CRM, HR,…
8,500 Internet facing hosts
DEVELOPMENT




                                 Oracle Product Development Grid
20,000 Developers
32,000 servers with 6 Petabytes of storage
Developing > 900 Products
Continuous Development and Test
320,000 students trained per year
670 classes per week
1200-1400 Virtual environments
provisioned per week
3.6 million users
$557M revenues, FY08
40% growth, year over year     Applications

                               Middleware

                                Database

                             Operating System

                               Infrastructure
DEVELOPMENT


P3$$+$=&,$Q
        84,000+ Internal Users | GN&K+99+,$&O40%-$#9&F>%->

   7,000 Network Devices | 10,000 TB Storage | 42,000 Servers
Some Lessons Learned…..
• Several years back it use to take a couple of hours to patch or
  upgrade each box, this certainly wasn!t scalable. We!re now able to
  do it in minutes. For example, our development community in a
  recent weekend upgraded 10,000 Linux boxes in 24 hours
• In the Oracle On demand business 10% of non-Linux servers account
  for over 90% of all support and maintenance costs
• Recently a very large Oracle customer had issues with a multi node
  RAC deployment, (Problem was isolated to NFS attribute caching ).
  With the help of Oracle Linux Kernel engineering a patch was made
  available to the customer and deployed in less than 24 hrs
   • No Finger Pointing between Vendors == Happier Customers
• Leveraging essentially standardized, commodity hardware, we are
  able to rapidly swap boxes should a problem occur. A 1% investment
  in additional hardware upfront has eliminated need for any type of
  premium h/w support (cost 5% to 12% over the 5 years).
Consolidation & Standardization at Oracle


      Organization             40 Data Centers
                                to 3


      Network                  Many Email
                               Instances to 1

      Processes                52 Applications
                                Instances to 1


      Self Service             Collaboration
Result: Increased Profitability and Growth

                            De-centralized IT                                                                        Consolidated IT                                                                           Corporate
                                                                                                                                                                                                               Expansion
   $30.0                                                                                                                                                                                                                                        50.0%

                                                                                                                                                                                                                                                40.0%
   $20.0
                                                                                                                                                                                                                                                30.0%

                                                                                  Operating Margin (%)                                                                                                                                          20.0%
   $10.0
                                               1998 - 2002                                                                                                                                      2004 - 2008
  Total                                                                                                                                                                                                                                         Operating
 Revenue                                                                                                                                                                                                                                         Margin
($Billions)                                                                     Total Revenue ($Billions)                                                                                                                                         (%)
                                  1998                 1999                  2000                 2001                  2002                 2003                  2004                 2005                  2006                 2007   LTM




   Note: All figures after FY2004 are provided on a non-GAAP basis. GAAP to non-GAAP reconciliations are included in our earnings releases, which are available on the Oracle Investor Relations website at www.oracle.com/investor.
Virtualization Changes the Game

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        Interaction        Systems      Provisioning
         Interface        Management     Interface


                                Monitoring &
               Services          Metering
               Catalog
Server Virtualization: Oracle VM
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Oracle On Demand – Virtualization
        Deployment Profile
                                                18 months

                    Original State                Consolidation                 Virtualization

                     6 systems                       4 systems                   2 systems
                                                                                    2QC x 32
                2 x 8 MT       2 x 8 DB       2DC x 16 MT       2DC x 16 DB
                                                                                   MT and DB
             Prod Instance   Prod Instance    Prod Instance     Prod Instance
                                                                                  Prod Instance
                2 x 8 MT       2 x 8 DB       2DC x 16 MT       2DC x 16 DB
              Dev Instance   Dev Instance      Dev & Test        Dev & Test         2QC x 32
                                               Instances         Instances         MT and DB
                2 x 8 MT       2 x 8 DB
                                                                                    Dev & Test
             Test Instance   Test Instance
                                                                                    Instances


                             Original State                   Consolidation          Virtualization
Space                         12 rack units                    4 rack units           2 rack units
Power @ Idle                   1518 watts                       960 watts              480 watts
Power @ 100% Load              2010 watts                      1180 watts              660 watts
Case Study: Oracle University

U+0quot;&M-+7V
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   ^_
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   +$/-%#>%7&W`_                    Enterprise      Real Application Clusters
                                     Manager



                                                 Automatic Storage Management
Vision
for the
Future
Oracle’s Involvement with Linux
                                                                                                      2006
                                                                                                 Oracle Validated
                                                                                                 Configurations
                       1998                          2002                2004
Linux History




                                     2001                                                           Unbreakable
                       First                       Launch of     Oracle 10g on Linux:
  at Oracle




                                  First 64-bit                                                         Linux
                   Commercial     Linux Port      Unbreakable      Foundation for
                   Database for                      Linux         Enterprise Grid        2005
                      Linux                                                        Oracle On Demand
                                                                                      Adopts 64-Bit
                                                                      9,000 Person       Linux
                                                                      Development
                                                                          Team
Linux Datacenter
   Workloads




                                                                                     Data
                    Development                  Single Use Production               Warehouse
                    Systems                      Deployments              General
                                                                          Purpose
                                                                          ERP/CRM

                   1998              2000                 2002              2004                  2006
Oracle Unbreakable Linux Support
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Complete,
  Open,
Integrated
Support For Open Standards
Integrating Oracle Private Source And Open Source
Oracle and Open Source

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   Oracle is committed to supporting, developing, promoting,
      and adopting viable open source technologies that
    complement our other software and service businesses
Oracle and the Open Ecosystem
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     #&>3>0#+$#)9%&#7B#$0#=%
                  Bottom line: “It’s business as usual” …
               Compete by best meeting customer requirements
Oracle’s Open Source Strategy
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    >,<0(#-%&+7%#>
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                                                               •26
Oracle’s Open Source Journey
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  /,A6,$%$0>?



                                                                   •27
Where is
the Global
1000 going
with Open
 Source?
Open Source Trends…..

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    N'0quot;%->
Q&A
Open Source is Positive for Oracle
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                                                                                 •32
Open Source is Positive for Oracle
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                    Oracle gains a sustainable advantage
                by engaging with the open source ecosystem

                                                                                       •33
<Insert Picture Here>



Oracle Products
    and the
Open Ecosystem




                                •34
DEVELOPMENT




     84,000+ Internal Users | GN&K+99+,$&O40%-$#9&F>%->

7,000 Network Devices | 10,000 TB Storage | 42,000 Servers

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Linux & Open Source Usage in the Fortune 500

  • 1.
  • 2. Linux & Open Source Usage In The Fortune 500 !quot;#$%&'(%$)* !%$+,-&.+-%/0,-&11&2+$345&'6%$&!,3-/%5&#$7&8+-03#9+:#0+,$
  • 3. &;quot;%&<,99,(+$=&+>&+$0%$7%7&0,&,309+$%&,3-&=%$%-#9 6-,73/0&7+-%/0+,$?&&@0&+>&+$0%$7%7&<,-&+$<,-A#0+,$ 63-6,>%>&,$9*5&#$7&A#*&$,0&)%&+$/,-6,-#0%7&+$0,&#$* /,$0-#/0?&&&@0&+>&$,0&#&/,AA+0A%$0&0,&7%9+B%-&#$* A#0%-+#95&/,7%5&,-&<3$/0+,$#9+0*5&#$7&>quot;,397&$,0&)% -%9+%7&36,$&+$&A#C+$=&63-/quot;#>+$=&7%/+>+,$>? ;quot;%&7%B%9,6A%$05&-%9%#>%5&#$7&0+A+$=&,<&#$* <%#03-%>&,-&<3$/0+,$#9+0*&7%>/-+)%7&<,-&'-#/9%D> 6-,73/0>&-%A#+$>&#0&0quot;%&>,9%&7+>/-%0+,$&,<&'-#/9%?
  • 4. Agenda E F>%&,<&'6%$&!,3-/%&!,<0(#-%&+$>+7%&'-#/9% E G&.+>0+$/0&=-,36>&,<&'-#/9%&@;&H3$/0+,$>&I&0quot;%+-&3>%&,<&'6%$&!,3-/% E J,(&'6%$&!,3-/%&quot;%96%7&'-#/9%D>&'6%-#0+$=&K#-=+$ E '6%$&!,3-/%&8+-03#9+:#0+,$&1&Lquot;#$=%&0quot;%&M#A% E '-#/9%D>&'6%$&!,3-/%&I&'6%$&!0#$7#-7>&!0-#0%=* E '6%$&!,3-/%&;-%$7>&,<&0quot;%&H303-%
  • 5. World’s Largest Enterprise Software Company 300,000 Global Customers USD$22.4B in Revenue, FY08 (MYR$78.8 Trillion)
  • 6. IT Functions at Oracle DEVELOPMENT
  • 7. Supporting 84,000 Employees Oracle.com Oracle Technology Network Operating in 145 Countries Oracle Partner Network 50+ acquisitions in 4 years >1 Mil Emails per day 35+ Mil Security events per day ERP, CRM, HR,… 8,500 Internet facing hosts
  • 8. DEVELOPMENT Oracle Product Development Grid 20,000 Developers 32,000 servers with 6 Petabytes of storage Developing > 900 Products Continuous Development and Test
  • 9. 320,000 students trained per year 670 classes per week 1200-1400 Virtual environments provisioned per week
  • 10. 3.6 million users $557M revenues, FY08 40% growth, year over year Applications Middleware Database Operating System Infrastructure
  • 11. DEVELOPMENT P3$$+$=&,$Q 84,000+ Internal Users | GN&K+99+,$&O40%-$#9&F>%-> 7,000 Network Devices | 10,000 TB Storage | 42,000 Servers
  • 12. Some Lessons Learned….. • Several years back it use to take a couple of hours to patch or upgrade each box, this certainly wasn!t scalable. We!re now able to do it in minutes. For example, our development community in a recent weekend upgraded 10,000 Linux boxes in 24 hours • In the Oracle On demand business 10% of non-Linux servers account for over 90% of all support and maintenance costs • Recently a very large Oracle customer had issues with a multi node RAC deployment, (Problem was isolated to NFS attribute caching ). With the help of Oracle Linux Kernel engineering a patch was made available to the customer and deployed in less than 24 hrs • No Finger Pointing between Vendors == Happier Customers • Leveraging essentially standardized, commodity hardware, we are able to rapidly swap boxes should a problem occur. A 1% investment in additional hardware upfront has eliminated need for any type of premium h/w support (cost 5% to 12% over the 5 years).
  • 13. Consolidation & Standardization at Oracle Organization 40 Data Centers to 3 Network Many Email Instances to 1 Processes 52 Applications Instances to 1 Self Service Collaboration
  • 14. Result: Increased Profitability and Growth De-centralized IT Consolidated IT Corporate Expansion $30.0 50.0% 40.0% $20.0 30.0% Operating Margin (%) 20.0% $10.0 1998 - 2002 2004 - 2008 Total Operating Revenue Margin ($Billions) Total Revenue ($Billions) (%) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 LTM Note: All figures after FY2004 are provided on a non-GAAP basis. GAAP to non-GAAP reconciliations are included in our earnings releases, which are available on the Oracle Investor Relations website at www.oracle.com/investor.
  • 15. Virtualization Changes the Game E P#6+7&.%69,*A%$0&3>+$=&M-+7&0%/quot;$+R3%>&#$7&'-#/9%&8K E K#>>+B%&%9#>0+/+0*&-%>6,$7+$=&0,&-%#91(,-97&7%A#$7> Interaction Systems Provisioning Interface Management Interface Monitoring & Services Metering Catalog
  • 16. Server Virtualization: Oracle VM E S%(&>%-B%-&B+-03#9+:#0+,$&>,<0(#-%&#$7&>366,-0 E '-#/9%&8K&!%-B%-&T&,6%$&>,3-/% E '-#/9%&8K&K#$#=%-&T&6-+B#0%&>,3-/% E H-%%&0,&7,($9,#75&3>%&#$7&7+>0-+)30% E '-#/9%&,<<%->&O$0%-6-+>%1R3#9+0*&>366,-0
  • 17. Oracle On Demand – Virtualization Deployment Profile 18 months Original State Consolidation Virtualization 6 systems 4 systems 2 systems 2QC x 32 2 x 8 MT 2 x 8 DB 2DC x 16 MT 2DC x 16 DB MT and DB Prod Instance Prod Instance Prod Instance Prod Instance Prod Instance 2 x 8 MT 2 x 8 DB 2DC x 16 MT 2DC x 16 DB Dev Instance Dev Instance Dev & Test Dev & Test 2QC x 32 Instances Instances MT and DB 2 x 8 MT 2 x 8 DB Dev & Test Test Instance Test Instance Instances Original State Consolidation Virtualization Space 12 rack units 4 rack units 2 rack units Power @ Idle 1518 watts 960 watts 480 watts Power @ 100% Load 2010 watts 1180 watts 660 watts
  • 18. Case Study: Oracle University U+0quot;&M-+7V E WXY0quot;&0quot;%&quot;#-7(#-% E LZF&30+9+:#0+,$&+$/-%#>%7&<-,A [&0,&[] E P%B%$3%&6%-&>%-B%-&+$/-%#>%7 Data Grids Mid-Tier clusters ^_ E !%-B%->&0,&#7A+$+>0-#0,-&-#0+, +$/-%#>%7&W`_ Enterprise Real Application Clusters Manager Automatic Storage Management
  • 20. Oracle’s Involvement with Linux 2006 Oracle Validated Configurations 1998 2002 2004 Linux History 2001 Unbreakable First Launch of Oracle 10g on Linux: at Oracle First 64-bit Linux Commercial Linux Port Unbreakable Foundation for Database for Linux Enterprise Grid 2005 Linux Oracle On Demand Adopts 64-Bit 9,000 Person Linux Development Team Linux Datacenter Workloads Data Development Single Use Production Warehouse Systems Deployments General Purpose ERP/CRM 1998 2000 2002 2004 2006
  • 21. Oracle Unbreakable Linux Support E !366,-0&<,-&0quot;%&2+$34&,6%-#0+$=&>*>0%A E aB#+9#)9%&0,&#$*&/3>0,A%-b&$,0&c3>0&'-#/9%&3>%-> E .%7+/#0%7&7%B%9,6A%$05&0%>05&#$7&7%9+B%-*&0%#A> E d#/C%7&)*&(,-97D>&9#-=%>0&>,<0(#-%&>366,-0&0%#A E P%#7*&eG4[&+$&WG^&/,3$0-+%>&#$7&e[&9#$=3#=%> E O$0%-6-+>%1R3#9+0*&>366,-0&#0&9,(%-&6-+/% E a7,60+,$&quot;#>&%4/%%7%7&,3-&%46%/0#0+,$>
  • 23. Support For Open Standards Integrating Oracle Private Source And Open Source
  • 24. Oracle and Open Source E U%&#7,60V E '-#/9%&-3$>&,$&2+$34? E U%&+$0%=-#0%&#$7&/,$0-+)30%V E 2+$345&ZJZ5&Z%-95&P3)*&,$&P#+9>5&O/9+6>%5&a6#/quot;%5&Q E U%&7%B%9,6&#$7&7+>0-+)30%V E 2+$345&ZJZ5&O/9+6>%5&a6#/quot;%5&d%-C%9%*&.d5&@$$,.d E U%&>%-B+/%V E F$)-%#C#)9%&2+$345&'-#/9%&d%-C%9%*&.d5&@$$,.d5&Q Oracle is committed to supporting, developing, promoting, and adopting viable open source technologies that complement our other software and service businesses
  • 25. Oracle and the Open Ecosystem E @$/-%#>+$=9*5&'-#/9%&6-,73/0>&#-%&7%69,*%7&#9,$=>+7%&,6%$&>,3-/%&6-,73/0>&#$7 0%/quot;$,9,=+%> E M#-0$%-D>&f3$%&e``[&A#-C%0&>quot;#-%&-%6,-0&>3==%>0>&,6%$&>,3-/%&+>&=-,(+$=&0quot;% 7#0#)#>%&A#-C%05&#$7&$,0&%-,7+$=&'-#/9%D>&>quot;#-% E '6%$&>,3-/%5&6-+B#0%&>,3-/%&#$7&,6%$&>0#$7#-7>&/,%4+>0 E '-#/9%&#7,60>5&+$0%=-#0%>5&7%B%9,6>5&7+>0-+)30%>&#$7&>366,-0>&,6%$&>,3-/% E U%&7,&0quot;%&>#A%&(+0quot;&6-+B#0%&>,3-/% E '6%$&>0#$7#-7>&-%A#+$&/-3/+#9&1&'6%$&!,3-/%&!,A%0+A%>&1&'6%$&!0#$7#-7>&a9(#*> E '-#/9%&#7,60>5&+$0%=-#0%>5&7%B%9,6>5&7+>0-+)30%>&#$7&>%-B+/%> ,6%$&>,3-/%&0%/quot;$,9,=+%>&0,&quot;%96&7-+B%&>#9%>&,<&'-#/9%&6-,73/0> E L3>0,A%->&B#93%&+$0%=-#0%75&>366,-0%7&>,930+,$>&0quot;#0&(,-C E 2+$34&+>&>0-#0%=+/&<,-&'-#/9%&#$7&(%&,<<%-&,6%$&>,3-/%&0%/quot;$,9,=+%>&+$&,3-&6-,73/0> E '-#/9%D>&6-,73/0&)-%#70quot;5&A#-C%0&>quot;#-%&#$7&#//%>>&0,&,6%$&>,3-/%&0%/quot;$,9,=*&=+B%&3> #&>3>0#+$#)9%&#7B#$0#=% Bottom line: “It’s business as usual” … Compete by best meeting customer requirements
  • 26. Oracle’s Open Source Strategy E Z-,A,0%&#$7&>366,-0&6,639#-&,6%$&>,3-/%&6-,c%/0> E O4#A69%>V&2+$345&a6#/quot;%&U%)&!%-B%-5&O/9+6>% E L,$0+$3#99*&%$quot;#$/%&/3>0,A%-&>366,-0&%46%-+%$/% E Z-,B+7%&#&>+$=9%&>,3-/%&<,-&6,639#-&%$0%-6-+>%&'!! E !6%%7&36&0+A%10,1+$$,B#0+,$ E OA)-#/%&/,A69%A%$0#-*&'!!&6-,c%/0>&0quot;#0&6-,B+7%&/-%#0+B%&$%( >,<0(#-%&+7%#> E O46#$7&0quot;%&7%B%9,6%-&/,AA3$+0* E L,AA+0A%$0&0,&,6%$&>0#$7#-7>5&+$0%-<#/%> E !366,-0&3>%&,<&,6%$&>,3-/%&0,,9> •26
  • 27. Oracle’s Open Source Journey E !0#-0%7&(+0quot;&2+$34 E 2,(&L,>0&gquot;X(&I&>X(h&J+=quot;&i3#9+0*&MP@.&'! E L,A6,$%$0&,<&!/#9%&'30&a-/quot;+0%/03-%&1&Z-,B%$&A+>>+,$&/-+0+/#9&+$ A#c,-&M9,)#9&W```&O$0%-6-+>%>&(+0quot;&'-#/9%&PaL E 2+$34&#>&#&>0#$7#9,$%&/,A6,$%$0&+$&O$0%-6-+>%&.#0#&L%$0%-> E d3+97&,$&0quot;%&>3//%>>&,<&2+$34&0,&%469,-%&a6#/quot;%5&'6%$ !,3-/%&f#B#&/,A6,$%$0>5&O/9+6>%5&'-#/9%&d%-C%9%*&.d5 %0/ E '-#/9%&8K&1&d3+90&,$&'6%$&!,3-/%&I&Z-+B#0%&!,3-/% /,A6,$%$0>? •27
  • 28. Where is the Global 1000 going with Open Source?
  • 29. Open Source Trends….. E '6%$&!,3-/%&/,7%&,-&'6%$&!,3-/%&.%B%9,6A%$0 K%0quot;,7,9,=*j E JZ&'6%$&!,3-/%&.%B%9,6A%$0&B>&JZ&@$0%-$#9&L,A6#$* L,99#),-#0+,$ E @$73>0-*&2%#7%->&c,+$+$=&<,-/%>&0,&7%B%9,6&#&k/,AA,$ <,3$7#0+,$D E aKiZ&1&a7B#$/%7&K%>>#=+$=&i3%3+$=&Z-,0,/,9 E W``&'6%$&a90%-$#0+B%&0,&@dK&Ki!%-+%>&,-&;+)/,&P%$7%:B,3> E fZ&K,-=#$5&L-%7+0&!3+>>%5&M,97A#$&!#/quot;>5&.%30>/quot;%&d#$C5 N'0quot;%->
  • 30. Q&A
  • 31.
  • 32. Open Source is Positive for Oracle E 2+$34&A#03-+0*&,$&0quot;%&>%-B%-&quot;%96>&'-#/9% E L3>0,A%->&/quot;,,>+$=&2+$34&>%-B%->&%9+A+$#0%>&K!H;&%$0+-%&>0#/C E '6%$>&7,,-&<,-&'-#/9%&F$)-%#C#)9%&2+$34 E L#$&9,(%-&/,>0>&<,-&/3>0,A%-> E 2+$34X,6%$&>,3-/%&=-,(0quot;&,$&0quot;%&7%>C0,6&+>&=,,7&<,-&'-#/9% E P+>+$=&+$0%-%>0&73%&0,&K!H;&8+>0#&#$7&A,$,6,9*&/,$/%-$> E S,&'-#/9%&69#*&,$&0quot;%&7%>C0,6 E d-,(>%-1)#>%7&#66>5&K!H;1<-%%&7%>C0,6&>3+0&'-#/9%&#-/quot;+0%/03-% E '-#/9%&,<<%-+$=>&#-%&A#03-%&#$7&6-,B%$ E '-#/9%&7+<<%-%$0+#0,->&6-,B+7%&3$+R3%&B#93%&$,0&+$&,6%$&>,3-/%&6-,73/0> E '-#/9%D>&6-+B#0%&>,3-/%&6-,73/0>&/,A6%0%&(%99&B>&,6%$&>,3-/%&#90%-$#0+B%> g<%#03-%>5&<3$/0+,$>5&-+>C5&;L'h E '6%$&>,3-/%&6-,73/0>&#$7&0%/quot;$,9,=+%>&%46#$7&0quot;%&A#-C%0&,B%-#99 •32
  • 33. Open Source is Positive for Oracle E '6%$&>,3-/%&/,A69%A%$0>&'-#/9%D>&>0-,$=&>366,-0&<,-&,6%$&>0#$7#-7> E a77-%>>%>&/3>0,A%->D&-%#9&$%%7>V&+$0%-,6%-#)+9+0*5&<9%4+)+9+0*5&&#B,+7&9,/C1+$Q E 2%>>&%A,0+,$5&<%(%-&l#)>,930%&A#$7#0%>m&quot;%96>5&0,, E '6%$&>,3-/%&6-,73/0>&%B#93#0%7&>%9%/0+B%9*5&<,-&<+0$%>>&,<&63-6,>% E K,-%&<3$/0+,$#9&#$7&A#03-%&g%?=?5&6-+B#0%&>,3-/%h&6-,73/0>&/#$&(+$ E P%#9+>A&9%B%9>&0quot;%&69#*+$=&<+%97b&+0D>&#),30&;L'5&$,0&c3>0&#/R3+>+0+,$&/,>0 E !%9%/0+B%&3>%&,<&,6%$&>,3-/%&9%#B%>&-,,A&<,-&6-+B#0%&>,3-/% E '6%$&>,3-/%&=-,(0quot;&+>&$,0&#0&0quot;%&%46%$>%&,<&6-+B#0%&>,3-/% E '-#/9%D>&7#0#)#>%&A#-C%0&>quot;#-%&=-,(+$=&B>?&,6%$&>,3-/%&,B%-#99 E 2+$34&7#0#)#>%&A#-C%0&=-,(+$=&<#>0%-&0quot;#$&F$+45&U+$7,(> E '-#/9%&A#-C%0&>quot;#-%&,$&2+$34&=-,(+$=&<#>0%-&0quot;#$&,6%$&>,3-/% Oracle gains a sustainable advantage by engaging with the open source ecosystem •33
  • 34. <Insert Picture Here> Oracle Products and the Open Ecosystem •34
  • 35. DEVELOPMENT 84,000+ Internal Users | GN&K+99+,$&O40%-$#9&F>%-> 7,000 Network Devices | 10,000 TB Storage | 42,000 Servers