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How Did We Get to Where We Are Today

Oracle Global IT Data Center Operations and Management Best Practices Bill Weils, Global IT Senior Director November 2007. Our Goal Accomplishments Corporate Business Challenge Our Strategy - Oracle Grid Architecture Standardization and Consolidation Austin Data Center Overview

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How Did We Get to Where We Are Today

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  1. Oracle Global IT Data Center Operations and Management Best Practices Bill Weils, Global IT Senior DirectorNovember 2007

  2. Our Goal Accomplishments Corporate Business Challenge Our Strategy - Oracle Grid Architecture Standardization and Consolidation Austin Data Center Overview Physical Security Automation (Operational Capability) Industry Best Practice Frameworks Questions How Did We Get to Where We Are Today

  3. Our Goal “Oracle Global IT strives to operate a world-class data center to support operations for 68,000+ Oracle employees and 500+ On Demand customers.”

  4. AccomplishmentsOperational Excellence & Achievements Data Center Award of the Year • Receive “Data Center of the Year Award” • Manage with Oracle Enterprise Manager 10g • Process and Technology stack tested first on internal Oracle business (“Oracle at Oracle!”) • Execute Tier 4 installation globally • Automate as many processes as possible for repeatability, scalability, and manageability • EPA “Green Company Award” 2005 • Become Oracle Grid & Network Attached Storage expert • 8000+ Processors in Grid architecture with RAC* • Network Appliance - 2.8 Petabytes of storage* *data as of 28th April 2005

  5. The Corporate Business Challenge • Reduce organization and infrastructure complexity • Reduce and effectively manage the IT budget • Increase systems availability and reliability • Improve overall asset utilization • Improve overall ease of services deployment • Simplify and standardize processes and procedures • Effectively scale to meet growing business needs

  6. The Oracle IT Dilemma Organization • Regionalized Staff • Specialized Service Areas • “Decision by Debate” Model Systems & Applications Finances • Inefficient • Wasteful • Specialized (Custom) Apps • Dedicated Server Farms • Server Farms/LOB • Server Farms/Geography Practices • Standardization: Low • Common Practices: Low • Knowledge Sharing: Low

  7. Our StrategyOracle Grid Architecture • Standardize • Low-cost components • Repeatable and reusable process and procedures • Improved Systems/Applications deployment and implementation • Consolidate • Manage from one central location • Leverage sharing of resources • Improve uptime (load balance & failover) • Automate • Eliminate human error • Consistent security • Repeatable, Repeatable, Repeatable • Virtualize • Increased system utilization • Flexibility to re-purpose assets • Flexibility to meet usage “spiking” • Find World Class Partners Who Share the Vision and Can Deliver on the Principles

  8. Our StrategyGlobal Data Center Standardization and Consolidation

  9. Our Strategy - NT Server EliminationGlobal Data Center Standardization and Consolidation Function End 1999 2003 2004 2005 NT Servers 1789 800 <200 <50 Employees 43,000 42,000 41,000 50,000+ NT Support Staff 400 200 75 <50 Global DHCP (join) Direct IP printing Collab Suite (OFO) Collab Suite File Sync Collaboration Suite • NT DHCP • NT printing • NT file sharing • NT local disk backup • NT software distribution

  10. Financial Impact Results • $12M in ERP annual savings • $18M in CRM annual savings • $11M in e-mail annual savings • $60M in desktop simplification annual savings • $13M in annual maintenance reductions • $100M in annual operating expense

  11. IT Spending Trends • $500M in FY1999 • $334M in FY2000 • $269M in FY2001 • $255M in FY2002 • $248M in FY2003 • $222M in FY2004 • $257M in FY2005** Increase due to PSFT M&A expenses • $291M in FY2006 • $313M in FY2007 • $335M in FY2008

  12. IT Spending Trends ** Oracle Acquisition Strategy – Start Point – 2004

  13. Oracle Global IT Today Organization • Globally Focused • Leveraged Expertise • Corporate Directed Model Systems & Applications Finances • Grid Infrastructure • Standard Technology • Standard Applications • Global Single Instance • Centrally Managed • < 35% of 1999 Budget • Highly Leveraged • Leading the Business Practices • Standardization: High • Common Practices: High • Knowledge Sharing: High

  14. Data Center Overview • Tier 4 and Tier 2 Data Centers • Tier 4: Austin, TX • Tier 2: Colorado Springs, CO • Austin Data Center • Primary data center for 68,000+ Oracle employees; on 82,000 SF of raised floor space • 22,000+ servers and 9.5+ PB storage • Adding 100+ servers/week • Hosts 500+ customers’ mission-critical apps • World’s largest Oracle application production environment supporting 1.7 Million+ users worldwide

  15. Actual Physical/Infrastructure Specifications

  16. Physical Security • 24x7 armed security Guards • Biometrics & retina scanner • X-ray, metal detectors • CCTV system for automatic camera call up: interior & exterior • Digital video recording systems • Global anti-passback (in/out) card readers • Single point of access via Mantrap • Weight and dual biometric verification system • Building perimeter: • Guard Gate • Armed Security Protection Unit • Protected with Electronic Intrusion Detection Systems • Glass protected by “BlastGARD” window film • Employee background checks

  17. <Insert Picture Here> Our Strategy:Automation (Operational Capability)

  18. Our Strategy - Oracle Grid ArchitectureLeveraging Grid to Improve IT Capability • Standardize • Low-cost components • Repeatable and reusable process and procedures • Improved Systems/Applications deployment and implementation • Consolidate • Manage from one central location • Leverage sharing of resources • Improve uptime (load balance & failover) • Automate • Eliminate human error • Consistent security • Repeatable, Repeatable, Repeatable • Virtualize • Increased system utilization • Flexibility to re-purpose assets • Flexibility to meet usage “spiking”

  19. Availability Management Security Management Operational CapabilityAvailability & Security Management • Security Patch Management: • Oracle has a process to guarantee that from the time a security patch is available from R&D it is applied to the production systems in a known period of time. • Audit Management: • Oracle delivers a process to insure that an independent audit is performed at least once a year. • 7x24x365 Availability Management: • Oracle provides a process to manage the availability of the applications, database, systems and hardware. • Disaster Management: • Oracle delivers a process to recover from a disaster in a predictable time with applications and data synchronized.

  20. Problem Management Performance Management Operational CapabilityProblem & Performance Management • Capacity Management: • Oracle provides a process to insure, on a periodic basis, there are adequate hardware and software resources to deliver a specified level of application performance. • Resource Management: • Oracle has a process to add and shed infrastructure (computers & people) as load increases and decreases. • Escalation Management: • Oracle provides a process to escalate problems to resolution. • Proactive Problem Management: Oracle provides a process to take high priority fixes from the development team and apply them in a predictable amount of time.

  21. <Insert Picture Here> Industry Best Practice Considerations

  22. Managed and maintained to industry standards Certified configurations with integration throughout the entire technology stack Third party applications part of certified configurations Defined solid Change Control Policies Created solid Configuration Management Dedicated Oracle experts available 24/7 by 365 to resolve and proactively identify service interruptions Software Industry FutureSoftware as a Service (SaaS)

  23. Processes and Controls “Organized Common Sense” -Bill Smith, 1989 • Quality Management • TQM, Six Sigma, Deming, International Standards (ISO) • Process Development and Refinement • ITIL/ASL, CMM/CMMI, SCOR • Governance • COBIT

  24. Audit • SAS 70 Type II Audit • 2 times a year • Dedicated Internal Audit • Global Information Security Audits • Customer Penetration Tests • Sarbanes-Oxley Compliance

  25. Q & A Q U E S T I O N S A N S W E R S

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