Oracle Cloud Strategy

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2 Oracle Cloud Strategy Mark Hurd June 25, 2014 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 6

3 Safe Harbor Statement "Safe Harbor" Statement: Statements in this press release rela/ng to Oracle's future plans, expecta/ons, beliefs, inten/ons and prospects, including statements regarding our cloud subscrip/on run rate, the /ming of the delivery of our 10,000th Engineered Systems unit, and our plans to increase our focus on the Cloud and become number one in SaaS and PaaS, are "forward- looking statements" and are subject to material risks and uncertain/es. Many factors could affect our current expecta/ons and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expecta/ons: (1) Economic, poli/cal and market condi/ons, including the con/nued slow economic recovery in the U.S. and other parts of the world, can adversely affect our business, results of opera/ons and financial condi/on, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reduc/ons in transac/ons, fewer large transac/ons in a par/cular quarter, unan/cipated fluctua/ons in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (3) Our cloud compu/ng strategy, including our Oracle Cloud SoTware- as- a- Service, PlaUorm- as- a- Service and Infrastructure- as- a- Service offerings, may not be successful. (4) If we are unable to develop new or sufficiently differen/ated products and services, or to enhance and improve our products and support services in a /mely manner or to posi/on and/or price our products and services to meet market demand, customers may not buy new sotware licenses, cloud sotware subscrip/ons or hardware systems products or purchase or renew support contracts. (5) Our interna/onal sales and opera/ons subject us to addi/onal risks that can adversely affect our opera/ng results, including risks rela/ng to foreign currency gains and losses. (6) If the security measures for our sotware, hardware, services or Oracle Cloud offerings are compromised or if such offerings contain significant coding, manufacturing or configura/on errors, we may experience reputa/onal harm, legal claims and financial exposure. (7) We have an ac/ve acquisi/on program and our acquisi/ons may not be successful, may involve unan/cipated costs or other integra/on issues or may disrupt our exis/ng opera/ons. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10- K and Form 10- Q, par/cularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contac/ng Oracle Corpora/on's Investor Rela/ons Department at (650) or by clicking on SEC Filings on Oracle s Investor Rela/ons website at hdp:// All informa/on set forth in this press release is current as of June 25, Oracle undertakes no duty to update any statement in light of new informa/on or future events. Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 7

4 One Goal: #1 in the Cloud Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 8

5 Oracle Cloud Strategy One Goal: #1 in the Cloud Highly Differen=ated Unmatched Breadth & Depth Modern & Best of Breed SaaS Porcolio Applica?ons. Placorm. PaaS on Market Leading Tech Stack Infrastructure. Copyright 2014 Oracle and/or its affiliates. All rights reserved.

6 Ready to Lead the Applica?ons Market into the Cloud 37% FY14 Bookings Growth. Posi=oned to Accelerate in FY15. Opportunity PorQolio Reach $74B in Addressable Market Significant Greenfield Expansion Opportuni?es in Marke?ng, Service & ERP $10B+ ARR Poten?al in Large Apps Customer Base. Less than 5% penetra?on Complete & Best of Breed 18 Leaders Ra?ngs equal to SAP, SFDC & WDAY Combined 1,200+ Ac?ve Customer Reference. Added Hundreds in Last Year. Global Scale Thousands of SaaS Sales Reps in 60+ Countries 900+ Cloud Partners 19 Global Data Centers Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 10

7 $74B in SaaS Addressable Market $80B $60B $74B Marke=ng Sales & CPQ Service Greenfield Installed Base Significant Share Gain Extend Leadership & Share E- Commerce $40B HCM & Talent Financials $29B $20B ERP SCM Sales E- Commerce $20B Marke?ng $19B Projects HCM Sales HCM EPM SCM Service Financials Oracle SAP SFDC Workday Source: Gartner Group, Oracle Marke?ng Intelligence Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 11

8 $10B of Poten?al ARR in the Oracle On- Premise Base On- Premise ARR Poten=al Extend Migrate 5K+ CRM Customers $2B Add Marke?ng, CPQ & Social Core Sales & Service to Cloud 7K+ HCM Customers $3B Add Talent Management Core HR & Payroll to Cloud 15K+ ERP Customers $5B Add Budge?ng & Planning, Procurement Subsidiaries to Cloud Core Financials to Cloud Customer 2 Cloud Program Financial Incen=ves Re/re support & shit investment to cloud Rapid Start- Up Services Fixed /me & price cloud migra/on services Packaged Integra=ons PorUolio of integra/ons between on- premise & cloud Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 12

9 18 SaaS Leader Ra?ngs Equal to Top Compe?tors Combined Oracle Salesforce.com SAP Workday 1 Source: Gartner Group, Forrester Research Published Reports Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 13

10 Mature Global Sales Organiza?on 7 Core Sales Teams Aligned to Win in Each Key Market 1. Marke=ng 2. Sales 3. Service 4. ERP & SCM 5. EPM 6. HCM 7. Mid- Market Oracle Sales Academy Thousands++ Engineered Selling Process Sales Produc=vity Sales Coverage Thousands R5 1,000 R6 2,000 R7 R8 R9 R10 Product Innova=on FY13 FY15 Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 14

11 900+ Partners Specialized on Cloud Solu?ons Marke=ng Service & E- Commerce ,990 Cloud Specialists 200+ Partner Solu?ons (Templates & Integra?ons) ERP HCM Sales Social Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 15

12 Establishing Oracle as a Leading Cloud Brand San Francisco Los Angeles Mexico City Chicago New York London London Paris Munich Moscow Frankfurt New Dehli Dubai Beijing Tokyo Bogotá Mumbai = FY15 planned São Paulo CloudWorld 41,052 Singapore Sydney = FY14 Registered Aeendees Melbourne = FY13 Copyright 2014 Oracle and/or its affiliates. All rights reserved.

13 Strong Growth in FY14, Posi?oned to Accelerate in FY15 FY14 Q4 FY14 Q1 FY15 37% Growth in Bookings 23% Growth in Revenue 25-35% Growth in Revenue Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 17

14 PaaS & IaaS: Maintain & Extend Leadership in Enterprise Technology Highly Differen=ated PlaQorm Unmatched Breadth & Depth of Services Expanding Sales #1 Database Java + + Thousands+ Tech Reps Built- In Mobile, Social, Big Data Thousands+++ Apps Reps Copyright 2014 Oracle and/or its affiliates. All rights reserved.

15 One Goal: #1 in the Cloud Simplify IT and Accelerate Innova=on Highly Differen=ated in SaaS & PaaS Unmatched Breadth & Depth Share Gain Large Installed Base Poten=al Mature & Referenceable Products Scale, Trained Sales Force Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confiden?al Internal/Restricted/Highly Restricted 19

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