1. State of Technology Oracle ISM 611 Dr. Hamid Nemati 11/8/1999 Francis Andoh-Baidoo David S. Clark Daniel B. Madeja Phillip Planes Kevin Thompson Francis Andoh-Baidoo David S. Clark Daniel B. Madeja Phillip Planes Kevin Thompson

2. Oracle Corporation Overview Founded in 1977 $9.1 billion in revenue for Q1 2000 Second largest application software company Largest database software company Operations in 145+ countries Over 43,000 employees

3. Revenue$2.0 B 13% Net Income$237M 21% EPS$0.16 vs. $0.13 Pretax Margin22.6% vs. 20.5% Q1 Fiscal 2000

4. Oracle Corporation Q1 FY00 Revenue Highlights Total Revenue Up 13% Geographic Revenue Growth License and Other Revenue Up 9% Service Revenue Up 16% Americas Up 12% (LC 14%) Asia Pacific up 34% (LC 18%) Europe / Middle East / Africa Up 9% (LC 13%)

5. Revenue Distribution Q1 Fiscal Year 2000 Consulting and Education 32% Product Revenues 68% Total Revenue $9.1 Billion

6. Americas59% EMEA33% Asia Pacific 10% Q1 Fiscal Year 2000 Geographic Distribution

7. Oracle’s Two Businesses Q1 FY00 Y-Y $6.6 B19% $2.5 B25% Applications Database Total $9.1 B 20 %

8. Oracle Leads 5:1 in UNIX... Source: Dataquest, March 1999 1998 RDBMS Market Share on Unix

9. Database Growth Opportunities –E-business –Data Warehousing –Packaged Applications –Release of 8i –Middle Market

10. Nearly 2/3 of Fortune 100 Rely on Oracle for E-Commerce Others 36% Oracle 64% Source: Collaborative Research 1999

11. Data Warehouse Source: IDC, 1998 1997 WW Data Warehouse Data Management Revenue by Vendor

12. Oracle #1 in e-business 100% pure internet ERP applications 100% pure internet CRM applications 100% pure internet database 100% pure internet development tools The only company with:

13. “If the Internet turns out not to be the future of computing, we’re toast. But if it is, we’re golden.” Lawrence J. Ellison, Chairman and CEO of Oracle

14. Oracle & e-Business New Model for Business Based on the Internet Not just e-Commerce Components of e-Business: – Internet Platform – Enterprise-class Business Applications – Services to Implement, Support and Manage

15. Oracle’s Internet Platform Centered on Oracle 8i Built-in Java Virtual Machine Oracle Internet File System Oracle interMedia Development Tools – Jdeveloper – WebDB Oracle Application Server Oracle 8i Lite

16. Oracle Applications Customer Relationship Management ERP Procurement Self-Service Applications Financial Applications Human Resources Strategic Enterprise Management Applications

17. Application Service Providers Software is becoming a service ISP’s + ISV’s = ASP Oracle’s Business Online (world’s largest) Benefits of ASP’s – No local infrastructure / resources required – Predictable Costs – Service Expertise – Automatic Upgrades – Data Back-Up

18. Oracle’s Service Organizations Oracle Consulting Oracle Education Oracle Support Services

19. Oracle Consulting Leverages Oracle’s knowledge to develop individual business solutions Wide range of business solutions: expand markets by identifying new customers, creating new offerings, and extending the supply chain improve efficiencies by automating the value delivery chain, lowering channel costs, and improving productivity identify and retain profitable customers, build brand loyalty, and enhance customer service design and implement a comprehensive data warehousing solution

20. Oracle Education World’s second-largest IT training provider, with offices in more than 60 countries Offered training services: instructor-led training interactive distance learning network-based training computer-based CD-ROM courses in-depth seminars customized classes training needs assessment Certification programs Organizational Change Management

21. Oracle Support Services (OSS) Industry’s leading provider of support for information management systems More than 3,000 professionals support over 120,000 customers Support around-the-clock, seven days a week, worldwide, and for any given product Customers can choose between web-based support, phone support, on-site support, and large systems support Different comprehensive support options are available to meet individual requirements

22. Oracle’s MetaLink 2.0 A “change in Oracle’s support paradigm” MetaLink 2.0 is an Internet Support Tool Internet as a medium to deliver quality, personalized and timely customer service Provides end-users with personalized, flexible self-service options Allows end-users to log and update technical assistance requests (TARs) online, receive product updates and information tailored to their individual needs, and download solutions

23. Oracle’s MetaLink 2.0 (cont.) Empowers customers to prevent, analyze and solve problems with the same information sources used inside Oracle More than 180,000 customers use MetaLink Site is managed by more than 200 Oracle engineers that provide timely posting and updating of technical data

24. Oracle Warehouse Comprehensive Set of Products Designer and Enterprise Manager CWM and Repository Warehouse Builder Warehouse Builder Application Server Application Server ERP Data External Data Operational Data Express Discoverer Reports Oracle8i Darwin Oracle Business Intelligence Oracle 8i Source: Oracle, Darwin-Overview-WHT97.ppt

25. Oracle8i Internet Enabled Scalable (with data and users) Fast querying capability Partitioning and “rolling windows”

26. Warehouse Builder 2.0 Fast implementation Design, generation and loading Written completely in Java Graphical and wizard driven Tightly integrated with Oracle8i

27. Common Warehouse Metadata Enables interoperability among vendor tools Internet ready: – Uses Java programming language – XML for import/export – UML as modeling language Application Program Interface

28. Data Mart Suite 2.0 Data Mart Designer 2.1 Data Mart Builder 2.0 Oracle8 - Enterprise Edition Enterprise Manager 1.5 Oracle Discoverer 3.1 Webb App Server Reports and Reports Server 3.0

29. OLAP Tool: Oracle Express Server

30. Distributed over Web

31. Integrates with DBMS

32. Big picture and detail

33. Maintains high levels of data integrity

34. Integration with popular tools

35. Scalability

36. Backed with Oracle’s experience

37. Analytical functions

38. Oracle Business Intelligence Darwin Source: Oracle, Darwin-Overview-WHT97.ppt

39. Enterprise Manager

45. Business Intelligence Levels Corporate Data Analytical Tools Used Bottom-Up Methodology Hidden Data Mining for classification, clustering, and predictions Shallow Statistical & OLAP for summaries, analysis, & forecasting Top-Down Methodology Surface SQL (Structured Query Language) for simple queries and reporting Source: Oracle, Darwin-Overview-WHT97.ppt

46. Data Mining Source: Oracle - Darwin Multimedia Presentation - www.oracle.com

47. Oracle Darwin June 1999 - To improve data mining capability, Oracle purchases Darwin from Thinking Machines Corporation

48. Enterprise-wide Data Mining Software - Darwin Intuitive GUI “Wizards” to guide and automate Powerful, scalable, parallel UNIX server MS Excel integration Client: Windows Servers: – Sun Solaris – HP-UX – Windows NT (Release 4.0) Power and Ease of Use Source: Oracle, Darwin-Overview-WHT97.ppt

49. Data Management Access data – Data warehouses – Relational databases (ODBC) – Support for SQL queries – SAS files – Flat files Prepare data – sampling – randomization – computed fields – append, merge, select, project, explode data – replace and set form Source: Oracle, Darwin-Overview-WHT97.ppt

50. Model Building Classification & Regression Trees (C&RT) – Classification and prediction of binary, multiclass, and continuous variables – Decrease functions: gini and entropy – Prune functions: cost and gini Neural Networks – Classification and prediction of binary, multiclass, and continuous variables – Activation functions: sigmoid, hypertangent, and linear – Training algorithms: conjugate gradient, modified Newton, steepest descent, backpropagation, and genetic algorithm for optimizing neural networks k-Nearest Neighbors (Memory-Based Reasoning) – Trainable k-Nearest Neighbors approach – Classification and prediction of binary, multiclass, and continuous variables – User-definable weights for input fields Clustering – k-means – Interactive graphics + + + + + + + + - - - - - - - - Induction Tree Tree ? + + + + + + + + - - - - - - - - Neural Nets Net ? + + + + + + + + - - - - - - - - k-Nearest Neighbors Match ? Clustering Cluster ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Source: Oracle, Darwin-Overview-WHT97.ppt

51. Number of CPUs running in parallel Performance Speed-Up 1 2 3 4 5 6 7 8 123456789 Tree Net Match (train) Linear Scalability Data Size Model Accuracy Small Large Low High Enterprise-wide Data Mining Software Scalable, Parallel Performance and Model Accuracy Source: Oracle, Darwin-Overview-WHT97.ppt

52. New Features in Darwin Release 3.5 Data import wizard – Databases – Text Missing value treatment wizard Model Seeker Computed fields Tree display Key fields wizard Multi-model comparison Lift charts for Tree Editable workflow More... Cumulative Targets vs. Percent of Population Cumulative Targets Source: Oracle, Darwin-Overview-WHT97.ppt

53. Source: Oracle, 35New-40preview97.ppt Darwin Release 3.5 New Features Editable Workflow Interactive means of querying workflow objects Ability to edit workflow

54. New Features in Darwin Release 3.6 Clustering wizard – k-means ODBC write-back to the database Source: Oracle, Darwin-Overview-WHT97.ppt

55. Cumulative Targets vs. Percent of Population Cumulative Targets New Features in Darwin Release 4.0 Windows NT & UNIX servers Native database access Faster algorithms Better parallelism Enhanced clustering Source: Oracle, Darwin-Overview-WHT97.ppt

56. Benefits Summary Understand customer behavior – Who is likely to churn? – What are the profiles of my customers? – What is my expected profitability? – Where are my best retention and cross-sell opportunities? Mine more data, faster Build better models Generate business intelligence Improve customer relationship management Source: Oracle, Darwin-Overview-WHT97.ppt

57. Any Questions ???