The Business Case for Oracle Exalogic

1. The Business Case for Oracle Exalogic Stephane Moriceau Sr. Director Exalogic Product Management Andy Chow Sales Consulting Director APAC Enterprise Architecture Team

2. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

3. Agenda • Top 5 CEO business objectives • Oracle Exalogic – A brief description • Oracle Exalogic’s sweet spots • Customer success stories • Conclusion

4. Top 5 CEO business objectives and their correspondingIT challenges

5. Top 5 CEO business objectives And their corresponding IT challenges • IT Efficiency • Buy vs. Build for faster Time-to-Market/Time-to-Value • Streamline IT • Retire Legacy Systems • Scalability • Elastic Platform for rapid deployments of new channels, services, products. • High Availability • Extreme Performance • High speed scalable processing • High speed event processing • Low latency • Large Data Management • Big Data, Fast Data • Reduce Risk • Standardize to lower complexity • Integrated support/maintenance IT challenges • Increasing Enterprise Growth • Attracting and retaining new customers • Creating new products and services (innovation) • Restore brand loyalty and provide innovative services & products • Maximizing Revenue & Profitability • Manage growth in Emerging and Strategic markets • Real-time view of profitability and product performance • Reviving Financial Performance • Reducing operating costs • Shift spend to Transformation projects • Improving efficiency • Accelerate rate of change to lower Time to Value • Reduce risk • Data: manage growth & unlock potential • Data can easily grow to multiple Million messages/sec • Social Media Intelligence strategy (market sentiment)

6. Oracle Exalogic:Brief Introduction

7. Part I: The “Red” Stack Pluggable & Modular software architecture OracleIdentity Management OBIEE • Software Complete • Integrated Solution • Proven Oracle Middleware OTD OEP SOA Oracle Database Tuxedo WebLogic Coherence OGG ODI Java SE advanced

8. “People who are really serious about software should make their own hardware.” Alan Kay

9. Efficiency Scalability High Availability Extreme Performance Large Data Management Reduce Risk Part II: The Engineered Systems Software and Hardware engineered together Application & Middleware Integrated Tuned Optimized Identical OS Virtualization &Cloud Management Compute Networking 1 Engineered System Unpack to production in hours Storage Layer

10. Efficiency • Scalability High Availability Extreme Performance Large Data Management Reduce Risk Exalogic X3-2 Seamless Scalability Eighth Rack Quarter Rack Half Rack Full Rack Multi-Rack

11. Efficiency • Scalability • High Availability Extreme Performance Large Data Management Reduce Risk Built-in High Availability Fault Tolerant Exalogic Architecture Exalogic Rack • Dual Power Distribution Units (1+1) • Dual power supplies in each component (1+1) • N+1 cooling (fan) strategy • Redundant IB switches (1+1) • Dual HCA ports in every component (bonded, 1+1) • Redundant storage heads (1+1) • All SSD and HDD RAID 1+ Compute Nodes InfiniBand Gateways Storage System Management Switch Compute Nodes InfiniBand Spine Switch

12. Efficiency • Scalability • High Availability • Extreme Performance Large Data Management Reduce Risk Exabus Optimized Network Virtualization Standard Hardware I/O Exabus Application Application Application Application Application Buffer Application Buffer TCP IP Transport Copy Kernel 20% Buffer Copies 40% Transport Processing 40 % Kernel Context Switches Zero Buffer Copy Direct Memory Access Kernel Bypass 4X Throughput, 6X Lower Latency

13. Efficiency • Scalability • High Availability • Extreme Performance Large Data Management Reduce Risk Exalogic Middleware Optimization Identity Platform Cloud Application Foundation Traffic Director/Web Tier WebLogic Server Coherence Tuxedo Virtual Assembly Builder Exalogic Elastic Cloud

14. 960 Gigabits/second(Maximum: 24x InfiniBand QDR) • Efficiency • Scalability • High Availability • Extreme Performance Large Data Management Reduce Risk Oracle Exalogic and Exadata Together Designed for Seamless Interoperability, Unmatched Performance Exadata Exalogic • Exclusive: direct InfiniBand integration! • Extreme performance, reliability, security • Simple to deploy and manage Typical OLTP Performance gain 3X Active GridLink • Resource-aware load balancing • Instantaneous connection failover • Transaction affinity to RAC nodes • SQLnet optimized for InfiniBand SDP

15. Efficiency • Scalability • High Availability • Extreme Performance • Large Data Management Reduce Risk Exalogic Datacenter Integration Simple View Exalogic 10GbE Data CenterServiceNetwork Data CenterManagementNetwork InfiniBand Standard TOR/EOR 10GbE Switches GbE ZFSStorage Big DataAppliance Exadata

16. Efficiency • Scalability • High Availability • Extreme Performance • Large Data Management • Reduce Risk Oracle Support for Exalogic ORACLE PLATINUM SERVICES No Additional Cost Complete. Integrated. Proactive. • 24/7 support • Specialized Engineered Systems Support Team • 2-hour onsite response to hardware issues1 • New Updates and Upgrades for Exalogic Elastic Cloud Software, Storage, Network and OS software, drivers and firmware • My Oracle Support proactive support portal • "Phone home" automated service requests (ASR) • Only available for Engineered Systems • Oracle Engineers perform patching and updates • for certified configurations on Exalogic • Faster and better service during outages: 5 Minute Fault Notification 15 Minute Restoration or Escalation to Development 30 Minute Joint Debugging with Development

17. Oracle Exalogic:Sweet Spots

18. Exalogic Supports All Use Cases Traditional Silos Static Consolidation Fairly Static Private Cloud Very Dynamic • Private Cloud Capabilities • Infrastructure-as-a-Service (IaaS) • Multiple Accounts, Users and Apps, concurrent administration • Rapid provisioning of virtual machines, networks and storage through Self-service • Path to Platform-as-a-Service (PaaS) • Application Platform templates for repeated use in Dev-Test-Prod lifecycle • Application/Server Consolidation • Multiple apps in a system with secure app isolation (multi-tenancy) • Consolidate multiple physical servers on a single Exalogic system • Subcapacity Licensing • Apps with no need for complete node capacity are able to reduce licensing and support costs • Deployment Simplification • Use of OVM custom templates for production deployment simplification and improved consistency • Physical • Applicable for most customer requirements • Virtualization maturity of an organization – Readiness from people, process & technology perspective • Consolidating large applications – Applications having large processor and memory requirement • Risk Averse – Simplify the stack • Choice of Linux or Solaris operating system

19. Exalogic Sweet Spots

20. 340 340 PARTNER SOLUTIONS CERTIFIED ON EXALOGIC New Performance Record Set for EVERYAPPLICATIONTested

21. Oracle Exalogic:Customer Examples

22. Top 4 reasons why customers are buying

23. Solution Architecture Exalogic for Oracle MW Custom Developed - Internet Banking Portal Customer Problems • Expand of their “channel service platform’ to support growth • Platform relies heavily on the Internet Banking Portal of which performance and availability needs to be increased • Time to Market, Risk, and Cost ruled out the application rewrite option. Customer Profile • One of the largest private banks in Taiwan with 147 domestic branches and 67 outlets abroad • $64B total assets and $1.8B revenue Growth strategy: • Bolstering strategic product capabilities • Developing key overseas markets Production Servers Staging Server WebLogic Cluster Coh Cluster ApacheHTTPD ApacheHTTPD ApacheHTTPD /WebLogic Portal /Coherence WebLogicPortal WebLogicPortal Coherence Coherence Results • Internet Banking Portal (WL Portal) benchmark on Exalogic vs. equiv. env. • 7x lower response time • 6x higher thoughput • Coh*Web cust longer GC pauses by half • Start-up time reduced by 9x(full cache) Benefits • No application code changes • No delay to Time to Market • Increases output per core which significantly lowers cost of scaling • Future proof infra to support growth Exalogic OVM Hypervisor Solution • Existing Custom development Internet Banking Portal • Coherence EE • 1/8 rack EL (enough to support current load and extensible to support growth) to replace current platform (2 x Sun T5240 servers) CN01 CN02 CN03 CN04 Exalogic 1/8 Rack

24. Solution Architecture Exalogic for Oracle MW Custom Developed - Fast Data for M2M application Customer Profile • One of the leading high-tech manufacturers in Japan. • Their 3 main business domains are Printer, Copier, and Digital camera. • No.1 or 2 global market share. Customer Problems • Need to expand remote maintenance system with increasing sales of MFP • High operational cost due to the unconsolidated infrastructures • Need to manage HW EOL • Clacking DR site • Results • High Performance infrastructure • Implementation of a system that is able to handle high transaction volume when the number of devices is two million units. • Performance target is 1700TPS • Benefits • New architecture is able to support increasing number of MFP units. • Reduce cost by system consolidation • DR Site • Improve service quality. DR Solution Architecture • Solution • Multi-Function Printer remote distributed Management System • 2 x 1/8 Rack Exalogic • OEP • Coherence • WLS 24

25. Solution Architecture Exalogicfor Oracle MW ISV Application – Payments: FUNDtechGPP (JEE & Tuxedo version) Customer Profile • ISV application (GPP: Global PayPlus) for UK-based Tier 1 global bank. • 2 versions (JEE & Tuxedo) • Software and SaaS Provider in the Transaction Banking and the Corporate Treasury Industries. Customer Problems • Competition, routes to market, products, regulation, and volumes are driving Banks to chose between outsourcing payment processing or start making money on payments • Looking to boost payment business by increasing capacity and cost efficiency APPLICATION GPP-SP MassPayments GPP-SP High ValuePayments INFRASTRUCTURE SOFTWARE • Oracle Database • RAC • Advanced Security Option • Advanced Compression Option • Oracle Middleware • WebLogic • Tuxedo • Oracle Linux 5.5 Results • JEE: Achieved 9.35 M/ hour mass payments (baseline 6 M/hour) • JEE: Achieved 5.7 M/ hour single payments (baseline 4 M/hour) • Tuxedo: 14.5 M transactions in 56 min (baseline 240 min) • 6.25x faster than IBM equivalent Benefits • Integrated solution resulted in a highly streamlined installation enabling reduced time & cost to market • Increases the transaction output per core which significantly reduces both the TCA and TCO • Linear scalability ENGINEERED SYSTEMS Solution • Benchmark environments: • JEE: ¼ rack EL + ¼ rack ED • Tuxedo: 1/8 rack EL + 1/8 rack ED Exadata Database Machine ExaLogic Machine

26. Solution Architecture Exalogic for Oracle Applications Horizontal - Financials (FIN) Applications Customer Profile • One of the largest Health Benefits Provider in North America • Fortune 21 Company • Recognized leader in the health and well-being industry • Nationwide network includes 720,301 physicians and 5,622 hospitals Customer Problems • IT complexity - consolidate 3 prescription fulfillment systems onto single platform • Scalability by 5x in application performance • High volume high traffic periods with zero downtime Benefits • $10M savings in TCO – EL vs IBMp770 • $5M reduced software licenses • Stability: Existing IBM550 experienced outages • 7x increase transactions executed • 2x increase orders orchestrated with SOA Suite Results • System in place providing stability, scalability, to tackle growth in business • Scaled to handle growth from 2K to 3K concurrent users, from 2Mto 6M members • 3.3K concurrent users (Peak season) • Peak prescriptions per hour 17K Solution • 5 Exalogic Systems, SUN M8000 • Oracle EBS • SOA suite for integration • OLTP Workload • Supply chain management, global 24x7 operation

27. Exalogic for Oracle Applications Vertical – Flexcube Core banking Solution Architecture Customer Profile • Ranks among the top five in the Romanian banking-insurance sector • Retail and business banking services • With over 1.7 million customers, 500 branches, 6000 employees nationwide and $1.7B in annual gross revenues. Customer Problems • Selected Flexcube UBS Core Banking as their new Core banking solution • Identified banking card offering as a key driver for market share growth • Highly scalable, reliable, and performing hardware platform to support growth is a key element for success. Results • 4xbetter response time overSun T-Series • All response times < 2 sec vs 1-20 secforSun T-Series • 96%of the requests processed in< 1 second Benefits • Scaling banking card transactions without degradation of service • Availability increased with Platinium Support • Providing a higher end-user experience • Increasing market penetration Solution • Primary: ½ rack EL + full rack ED • Symmetric DR site identically sized • EL linux version • Flexcube UBS 11.4 with WL 10.3.4

28. Solution Architecture Exalogic for Cloud / Consolidation Extreme Throughput with Consolidation Customer Profile • Largest eCommerce company in Japan • Rapidly growing business - 10x growth by 2020 • 800processors of WebLogic • 300 processors of Coherence Customer Problems • Managing > 100 WebLogic domains across 370 physical servers today - complicated, expensive, inflexible • Unable to change quickly due to business needs • With 10x growth, current model was unsustainable Benefits • Annual Savings - $160M/yrprojected • Increased scalability - 280% better throughput per core compared with previous VM based IaaS Platform • More flexibility – Easy to convert from development env to prod env during heavy traffic period (a.k.a Super Sale) Results • Consolidated 370 physical servers into two half racks of Exalogic • Simplified operation by using Enterprise Manager. Easy to provision, Easy to Analyze. • Oracle helped form special Exalogic-specific ops team Solution • Two half racks of Exalogic, WebLogic, Coherence, Enterprise Manager • Already purchased Exadata in FY12 • Physical Exalogic deployment • Full Oracle support - A-Team, product management, services, pre-sales, etc

29. Conclusion

30. Takeaway • Oracle offers a complete solution for mission critical applications: • Custom developed on Oracle Middleware • Vertical and Horizontal Oracle Applications • ISV Applications • This solution provides the required: • Efficiency • Scalability • High Availability • Performance • Large Data Management • Risk Reduction • To enable customers achieve their business objectives: • Modernize to support growth, increase the rate of change, and mitigate risk • Enable tighter SLA (better performance, higher availability, and more scalability) to meet customer expectations • Reduce TCO to increase business model sustainability and revive financial performance

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