Profile: Oracle Corp (ORCL.O)
20 May 2013
Oracle Corporation, incorporated in 2005, is a provider of enterprise software and computer hardware products and services. The Company's software, hardware systems, and services businesses develops, manufactures, markets, hosts and supports database and middleware software, applications software, and hardware systems, with the latter consisting primarily of computer server and storage products. The Company is organized into three businesses: software, hardware systems and services. Its software business consists of two segments: new software licenses and software license updates and product support. Its hardware systems business consists of two segments: hardware systems products and hardware systems support. The Company's services business consists of the remainder of the Company's segments and offers consulting services, managed cloud services, and education services. On January 25, 2012, it acquired RightNow Technologies, Inc. (RightNow). On April 5, 2012, the Company acquired Taleo Corporation (Taleo). Effective March 13, 2013, it acquired Nimbula Inc.
On July 18, 2011, the Company acquired Pillar Data Systems, Inc. (Pillar Data). During the fiscal year ended May 31, 2012 (fiscal 2012), it acquired certain other companies and purchased certain technology and development assets. Oracle Fusion Applications offer customers a choice of deployment models to run the Company's software applications in on-premise or cloud computing information technology (IT) environments. Oracle Cloud is a family of its cloud-based software subscription offerings that provides access to select Oracle software applications and software platforms on a subscription basis in a cloud computing environment. Oracle Cloud includes software applications as a service, such as Oracle Fusion Human Capital Management (HCM) Cloud Service and Oracle Fusion Customer Relationship Management (CRM) Cloud Service, and software platform services, such as Oracle Database Cloud Service and Oracle Java Cloud Service, among others. Oracle Engineered Systems include the Company's Oracle Exadata Database Machine, Oracle Exalogic Elastic Cloud, and SPARC SuperCluster products, amongst others.
The Company's Oracle software product and hardware-related software portfolio includes Oracle Fusion Applications in the cloud, Oracle SOA Suite and Oracle Business Process Management Suite, Oracle Identity Management and Oracle Database Security, Oracle VM for SPARC and x86, Oracle operating systems and management and Oracle Enterprise Manager. Oracle operating systems and management include Oracle Solaris and Oracle Linux. Oracle Enterprise Manager is designed to provide a complete management solution for clouds from application to disk, including infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings, and enables customers to plan and set up clouds; package, test and deploy applications on clouds; manage and monitor clouds and applications on clouds, and meter, charge and optimize clouds over time.
The Company's Oracle hardware product portfolio includes its Oracle Engineered Systems hardware, its SPARC and x86 based servers, and its storage and networking products. Software-as-a-service (SaaS) software that the Company offers on a subscription basis and delivers as a service to customers includes accesses, hosting, infrastructure management, the use of software updates and support, PaaS (it is an application development and deployment platform delivered as a service to developers who use the platform to build, deploy and manage applications) and IaaS (which consists of computing servers, storage and networking delivered as a service clouds. Oracle Cloud is a family of the Company's cloud-based software subscription offerings that provides its customers and partners subscription-based, self-service access to certain of its database and middleware, and applications software. Oracle Cloud provides many common services, including resource management and isolation, security, data exchange and integration, virus scanning, and centralized self-service monitoring.
Oracle Cloud provides customers to run its business applications in cloud computing or on-premise IT environments, and includes Oracle Fusion Customer Relationship Management (CRM) Cloud Service, Oracle Fusion Human Capital Management (HCM) Cloud Service and the Oracle Social Network. The Company also offers certain software applications via subscription-based, cloud computing delivery models, including Oracle RightNow Customer Experience and Oracle Taleo Talent Management Cloud Service. Oracle Cloud also provides the Company's software platforms as services, including Oracle Java Cloud Service and Oracle Database Cloud Service. Oracle Java Cloud Service provides customers with an open, Java application development and deployment platform built on Oracle's WebLogic Server functionality in a cloud environment that the Company manages and offers to customers via a subscription-based arrangement. Oracle Database Cloud Service provides customers with Oracle Database functionality in a cloud environment that the Company manages and offers to customers via a subscription-based arrangement. Oracle Database Cloud Service includes the Oracle Application Express (APEX) application development environment and a set of business productivity applications.
Oracle Engineered Systems are a part of the Company's hardware systems segment, and are pre-integrated products engineered to include multiple elements of Oracle software and hardware products. Oracle Engineered Systems provide the foundation for IT consolidation and cloud computing. Oracle Engineered Systems include Oracle Exadata Database Machine, Oracle Exalogic Elastic Cloud, Oracle Exalytics In-Memory Machine, SPARC SuperCluster, Oracle Database Appliance, and Oracle Big Data Appliance. Oracle Exadata Database Machine is a family of integrated software and hardware products that combines the Company's database, storage and operating system software with its server, storage and networking hardware. Oracle Exalogic Elastic Cloud is an engineered system that combines Oracle Fusion Middleware software with the Company's hardware to run Java and non-Java applications and provide customers with an applications platform for cloud computing.
The Oracle Exalytics In-Memory Machine is a single server that is designed to be configured for in-memory analytics for business intelligence workloads. Its SPARC SuperCluster is a general purpose engineered system. It is a mission-critical consolidation platform that is designed to run multiple tiers, from database to middleware to application, and to support multiple applications and operating systems side by side. Oracle Database Appliance is an integrated, fault resilient system of software, servers, storage and networking in a single box that is designed to deliver database services for a range of homegrown and packaged online transaction processing (OLTP) and data warehousing applications. The Oracle Database Appliance is designed to enable enterprises to consolidate OLTP and data warehousing databases up to four terabytes in size. Oracle Big Data Appliance is an engineered system designed for acquiring, organizing and loading unstructured data into an Oracle database.
The Company's software business consists of the Company's new software licenses segment and software license updates and product support segment. The new software licenses operating segment of the Company's software business primarily includes the licensing of database and middleware software, as well as applications software. The Company's software products are designed to operate on both single server and clustered server configurations for on-premise or cloud computing IT environments and to support a choice of operating systems, including, Oracle Solaris, Oracle Linux, Microsoft Windows and third party UNIX products. The Company's database and middleware software provide a range of offerings that are designed to provide a platform for running and managing business applications for midsize businesses, as well as large, global enterprises.
Oracle Database software is an enterprise database software. It is designed to enable storage, retrieval and manipulation of all forms of data, including transactional data, business information, and analytics; semi-structured and unstructured data in the form of weblogs, text, social media feeds, Extensible Markup Language (XML) files, office documents, images, video and spatial images, and other specialized forms of data, such as human genomic and medical data. Oracle Database software is used for a range of purposes, including packaged applications, custom application development, OLTP applications, data warehousing and business intelligence, and as a document repository or specialized data store. Oracle Database software is available in four editions: Enterprise Edition, Standard Edition, Standard Edition One and Express Edition.
The Company also offers customers in-memory database software, including Oracle TimesTen In-Memory, which is an in-memory database, and Oracle In-Memory Database Cache. Oracle TimesTen In-Memory Database is designed to deliver data management and transaction processing speeds for performance-critical applications, from complex analytical queries and speed-of-thought data visualization, to mission-critical, industry-specific applications, such as call centers, trading platforms, reservation systems, and smart meters. Oracle TimesTen In-Memory Database supports multiple computing platforms, is compatible with Oracle Database software, and can work as a standalone database at the applications tier. Oracle In-Memory Database Cache acts as a high performance cache for Oracle Database Enterprise Edition and is used to provide immediate access to historical data in existing Oracle Databases that are frequently accessed, such as customer and user lists, open orders, and product catalogs.
A number of optional add-on products are available with Oracle Database Enterprise Edition software to address specific customer requirements. In the areas of performance and scalability, the Company offers Oracle Real Application Clusters, Oracle Advanced Compression and Oracle Partitioning software options. In the area of data security, the Company offers Oracle Advanced Security, Oracle Database Vault, Oracle Audit Vault and Oracle Database Firewall software options. In addition to the four editions of Oracle Database, it also offers a portfolio of specialized database software products to address particular customer requirements, including MySQL, Oracle Berkeley DB and Oracle NoSQL Database. Oracle Fusion Middleware software is a family of integrated application infrastructure software products that is designed to form a reliable and scalable foundation on which customers can build, deploy, secure, access and integrate business applications and automate their business processes. Built with Oracle's Java technology platform, Oracle Fusion Middleware products can be used as a foundation for custom, packaged and composite applications-or applications that can be deployed in private or public cloud environments.
Oracle Fusion Middleware software is designed to protect customers' IT investments and work with both Oracle and non-Oracle database, middleware and applications software through its open architecture and adherence to industry standards such as Java Enterprise Edition (Java EE) and Business Process Execution Language (BPEL), among others. Oracle Fusion Middleware software is available in various software products and suites, including the following functional areas: application server and cloud application foundation; service-oriented architecture (SOA) and business process management; business intelligence; identity and access management; data integration; Web experience management, portals, content management and social networks, and development tools. The foundation of Oracle Fusion Middleware software is Oracle WebLogic Server. It is an application server that is compliant with the Java EE specification. In addition to Oracle WebLogic, it combines cloud infrastructure components into the Oracle cloud application foundation, including Oracle Virtual Assembly Builder, Oracle Coherence, Oracle JRockit, Oracle Tuxedo and Oracle GlassFish Server.
SOA is a software development and architecture methodology that creates a modular, re-usable approach to applications development. Oracle SOA Suite is a suite of middleware software products used to create, deploy and manage applications on a Service-Oriented Architecture, including Oracle JDeveloper, Oracle BPEL Process Manager, Oracle Web Services Manager, Oracle Business Rules, Oracle Business Activity Monitoring and Oracle Service Bus. Oracle Business Intelligence (BI) is a set of analytic software products designed to provide customers with the information they need to make better business decisions. Oracle's Business Intelligence software products include Oracle BI Suite Enterprise Edition, which is a query and analysis server; Oracle Essbase, which is an online analytical processing server; Oracle BI Publisher, which is a self-service production and operational reporting tool, and Oracle Real-Time Decisions. Users can access these tools from a range of user interfaces, including browser-based interactive dashboards; ad hoc query and analysis; proactive detection and alerts integrated with e-mail; Microsoft Office integration, including support for Excel, Word and PowerPoint, and mobile analytics for mobile and smart phones.
Oracle's identity and access management software products are designed to enable customers to manage internal and external users, secure corporate information from software threats and streamline compliance initiatives. These software products include a lightweight directory access protocol (LDAP) directory service to store and manage user identities and policies; identity provisioning to provision users and roles in multiple enterprise applications and systems; access management to manage access control and entitlements for customers, partners and employees; and identity analytics to audit and identify users attempting to access systems for which they are not authorized. Oracle's data integration offerings consist of Oracle GoldenGate, Oracle Data Integrator and Oracle Enterprise Data Quality products. Oracle GoldenGate is a high performance data movement and continuous availability solution. Oracle Data Integrator is an extract-transform-load (ETL) solution. Oracle Data Integrator also includes big data capabilities to transform and load unstructured data from non-Oracle environments into Oracle Database or Oracle Exadata. In addition, Oracle Enterprise Data Quality enables users to profile any type of data (customer or product-oriented) and to clean it using a range of automated matching and cleansing rules making the data more reliable and more accurate.
Oracle WebCenter is designed to deliver a complete user engagement platform for social business, connecting people and information. It brings together a portfolio of portal, Web experience management, content, social and collaboration technologies into a single product suite. Oracle WebCenter Content is an enterprise content management software suite. Oracle WebCenter Portal is a portal and composite applications solution that is designed to deliver intuitive user experiences for the enterprise that are integrated with enterprise applications. Oracle WebCenter social, which includes Oracle Social Network and Oracle WebCenter Real-Time Collaboration, enables secure social networking and enterprise collaboration tools for the enterprise. Oracle JDeveloper is an integrated software environment that is designed to facilitate development of a range of different types of applications using Oracle Fusion Middleware software and popular open source technologies. Oracle JDeveloper software provides support for developing Java applications; Web services, composite SOA applications and business processes; user interfaces using AJAX/DHTML and Flash technologies, and Websites using scripting languages. Oracle JDeveloper software also provides application lifecycle management facilities, including modeling, building, debugging, unit testing, profiling and optimizing applications and is integrated with the Oracle Application Development Framework software, which provides a declarative framework for building business applications and popular open source tools, including Eclipse and NetBeans.
Java is the computer industry's most widely-used software development language. Oracle Fusion Middleware software products and Oracle Fusion Applications are built using the Company's Java technology platform. 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. There are three primary editions of Java (Standard, Enterprise and Micro) that support a spectrum of usage ranging from mobile phones to desktop computers to server applications. Java can also be found embedded in a variety of devices and machines, including printers, cars, airplanes, tablets, digital versatile disc (DVD) players, set-top boxes, pens, smart meters and bank automated teller machines (ATMs), and JavaCard is designed for specialized use in smart cards. Certain of the Company's products are built primarily to enable customers to run Java applications on and with them, such as Oracle WebLogic Server and Oracle Coherence. Many more of the Company's products are built with and rely on Java, such as the Oracle Fusion Middleware software product family and Oracle Fusion Applications.
Oracle Enterprise Manager is Oracle's integrated enterprise IT management and cloud management family of products. Oracle Enterprise Manager is designed to combine the self-management capabilities built into Oracle products with its business-driven IT management capabilities to deliver a holistic approach to IT management across the entire Oracle technology portfolio, including Oracle Database and Oracle Exadata, Oracle Fusion Middleware and Oracle Exalogic Elastic Cloud, Oracle Applications, Oracle Solaris, Oracle Linux, Oracle VM and the Company's complete hardware portfolio. Oracle Enterprise Manager is designed to manage Oracle's software and hardware portfolio whether deployed using traditional IT architectures or in cloud computing architectures. In both cases, Oracle Enterprise Manager is designed to provide a complete IT lifecycle management approach, including configuring elements of an IT environment, monitoring service levels; diagnosing and troubleshooting problems, patching and provisioning IT environments, managing compliance reporting, and providing change management in a way across physical and virtualized IT environments.
Oracle VM is server virtualization software for both Oracle SPARC and x86-based servers, and supports both Oracle and non-Oracle applications. The Company also offers Oracle Applications, including its Oracle E-Business Suite, Siebel, PeopleSoft, and JD Edwards product families. The primary applications software offerings include: Human Capital Management; Customer Relationship Management; Financials; Governance, Risk and Compliance (GRC); Procurement; Supply Chain Management (SCM); Enterprise Project Portfolio Management (EPPM); Enterprise Performance Management (EPM); Business Intelligence / Analytic Applications; Web Commerce, and Industry-Specific Applications. The Company offers a portfolio of Human Resource and Talent Management applications, and flexible deployment options for on-premise or clouds computing IT environments. Its complete and integrated offerings provide core human resource transactions, workforce service automation and delivery, and complete enterprise talent management. Its global, Web-based, single system architecture is designed for organizations of every size, industry and region.
The Company’s portfolio of HCM solutions creates a range of offering for organizations to manage their human resource operations and employee careers, either via cloud offerings, such as Oracle Fusion HCM Cloud Service and Oracle Taleo Talent Management service; or on-premise solutions, including Oracle Fusion HCM (which is also cloud ready), Oracle E-Business Suite HCM, and PeopleSoft HCM. It offers a portfolio of CRM applications, including Siebel CRM, Oracle E-Business Suite CRM, PeopleSoft CRM, Oracle Fusion Applications for CRM, and Oracle RightNow CX Service Cloud. Its Oracle CRM On Demand and Siebel CRM offerings provide industry-specific features designed to support the specialized needs of users in key sectors, such as communications, consumer products, financial services, high technology, insurance, life sciences and the public sector. The Company's financial management and GRC solutions are designed to enable the Company's customers to meet fiduciary and statutory requirements. In addition to the Company's portfolio of financial management applications from Oracle E-Business Suite, PeopleSoft, and JD Edwards, it also offers Oracle Fusion GRC, a component of the Oracle Fusion Applications suite, to provide intelligence and insight into all GRC activities, end-to-end support for cross-industry and industry-specific GRC processes, and automated controls that work across multiple business applications.
The Company offers a portfolio of advanced procurement applications, including JD Edwards EnterpriseOne Supply Management, JD Edwards World Distribution Management and Supplier Self-Service, Oracle E-Business Suite Advanced Procurement, Oracle Fusion Procurement and PeopleSoft Supplier Relationship Management, among others. It offers a portfolio of supply chain management (SCM) applications, including Agile, Demantra, JD Edwards, Oracle E-Business Suite, and Oracle Fusion Applications, among others, that support supply chain management processes, such as demand management, order management, supply chain planning, sales and operations planning, procurement and sourcing to product development, manufacturing, transportation and warehouse management. Its SCM software offerings are designed to provide the Company's customers with the ability to forecast and fulfill demand for their products through end-to-end, integrated, yet modular software. The Company offers a portfolio of EPPM applications, including JD Edwards EnterpriseOne Project Management, Oracle E-Business Suite's family of Oracle Projects, Oracle Fusion Project Portfolio Management, PeopleSoft Enterprise Service Automation, and Primavera Project Portfolio Management. Oracle EPPM applications target project-intensive industries, such as engineering and construction, aerospace and defense, utilities, oil and gas, manufacturing, professional services, and project-intensive departments within other industries.
The Company's Oracle Hyperion Performance Management suite of products are a modular set of integrated applications that integrate with both Oracle and non-Oracle transactional systems to help organizations automate, integrate and administer a range of financial and operational management processes. The Company's EPM applications include Hyperion Strategy Management; Hyperion Financial Close and Reporting; Hyperion Planning, Budgeting and Forecasting; and Hyperion Profitability and Cost Management. The Company provides packaged business intelligence applications for cross-industry business processes, as well as industry-specific analytic applications. Each of the Company's business intelligence applications features packaged data models, packaged ETL processes, packaged key performance indicators (KPIs), and packaged dashboards to deliver insight that is tailored for specific business processes. The Company's business intelligence applications are built on Oracle's business intelligence technology, and source data from multiple versions of Oracle's portfolio of applications, as well as from non-Oracle data sources.
The Company's Web Commerce solutions are designed to enable enterprises to deliver a cross-channel buying experience through catalog, merchandising, marketing, guided search and navigation, personalization, automated recommendations and live-help capabilities. Oracle Applications offer customers a range of industry-specific solutions. The Company offers the financial services sector a suite of applications addressing cash management, trade, treasury, payments, lending, private wealth management, asset management, compliance, enterprise risk and business analytics, among others. It offers the retail sector software solutions designed to provide data among store, merchandising and financial operations. During fiscal 2012, the Company's software license updates and product support revenues represented 43% of its total revenues.
Hardware Systems Business
The Company's hardware systems business consists of two operating segments: hardware systems products and hardware systems support. The Company provides a complete selection of hardware systems and related services, including servers, storage, networking, virtualization software, operating systems, and management software to support diverse public and private cloud computing environments. The Company's hardware products and services are designed to be open, or to work in customer environments that may include other Oracle or non-Oracle hardware or software components. The Company's Oracle Engineered Systems include Oracle Exadata Database Machine, Oracle Exalogic Elastic Cloud, Oracle Exalytics In-Memory Machine, SPARC SuperCluster, Oracle Database Appliance and Oracle Big Data Appliance. By combining the Company's server and storage hardware with its software, its open, integrated products better address customer and cloud computing requirements for performance, scalability, reliability, security, ease of management and lower total cost of ownership. During fiscal 2012, the Company's hardware systems products represented 10% of its total revenues.
The Company offers a range of server systems using its SPARC microprocessor. Its SPARC servers run the Oracle Solaris operating system and are designed for the mission critical enterprise environments at any scale. SPARC servers are also a component of the SPARC SuperCluster, which is the Company's Oracle Engineered Systems. It also offers enterprise x86 servers. These x86 servers are primarily based on microprocessor platforms from Intel Corporation (Intel) and are also compatible with Oracle Solaris, Oracle Linux, Microsoft Windows and other operating systems. The Company's x86 systems are also a core component of many of Oracle Engineered Systems, including Oracle Exadata Database Machine, Oracle Exalogic Elastic Cloud, Oracle Exalytics In-Memory Machine and Oracle Big Data Appliance. The Company's storage products are designed to securely manage, protect, archive and restore customers' mission critical data assets and consist of tape, disk, hardware-related software, including file systems software, back-up and archive software and storage management software and networking for mainframe and open systems environments.
The Company's tape storage product line includes StorageTEK libraries, drives, virtualization systems, media and device software. The Oracle Solaris operating system is designed to provide an operating system environment through core feature development, networking, security and file system technologies, as well as close integration with hardware features. The Oracle Solaris operating system is based on the UNIX operating system, but is among UNIX systems in that it is available on the Company's SPARC servers and x86 servers that are based upon microprocessors from Intel. It also supports Oracle Solaris deployed on other companies' hardware products. Oracle provides a virtualization solution from the desktop to the data center. Oracle Solaris 11 provides built-in virtualization capabilities for the operating system, network and storage resources. In addition to its built-in virtualization capabilities, Oracle Solaris 11 is engineered for server virtualization on both x86 and SPARC based systems.
The Oracle Linux operating system with Oracle's Unbreakable Enterprise Kernel is a Linux operating system for enterprise workloads, including databases, middleware and applications. Oracle's Unbreakable Enterprise Kernel is designed to work well with Oracle products to patch core operating systems without downtime. In addition to Oracle Solaris and Oracle Linux operating systems, the Company also develops a range of other hardware-related software, including development tools, compilers, management tools for servers and storage, diagnostic tools, virtualization, and file systems. The Company's hardware systems support offerings provide customers with software updates for the software components that are essential to the functionality of its server and storage products, such as Oracle Solaris and can include product repairs, maintenance services and technical support services. During fiscal 2012, the Company's hardware systems support revenues represented 7% of its total revenues.
The Company's services business is comprised of the remainder of its segments and offers consulting services, managed cloud services and education services. During fiscal 2012, the Company's services business represented 13% of its total revenues. The Company's consulting services include business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration and ongoing product enhancements and upgrades. Oracle managed cloud services provide comprehensive software and hardware management and maintenance services, including deployment, management, monitoring, patching, security and upgrade services, for customers hosted at its Oracle data center facilities, select partner data centers, or physically on-premise at customer facilities. In addition, it provides support services, both on-premise and remote, to Oracle customers.
The Company provides training to customers, partners and employees. Its training is provided through a range of formats, including instructor-led classes at its education centers, live virtual training, self-paced online training, training via compact disc, read-only-memory (CD-ROM), private events and custom training. The Company's live virtual class offerings allow students anywhere in the world to receive real-time, interactive training online. In addition, it also offers a certification program certifying database administrators, developers, implementers, consultants and architects.
The Company competes with Microsoft Corporation (Microsoft), International Business Machines Corporation (IBM), Intel, Hewlett-Packard Company (HP), SAP AG and Salesforce.com.
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