1 Modernizing Government in the CloudScott Spencer Sr. Director, Alliances & Channel Sales Oracle North America Public Sector
2 Why Does Cloud Matter to You?
3 The Cloud Market TransformationGovernment agencies are rapidly moving to and embracing the Cloud to reduce operational complexity, increase agility, deliver new services, improve security, and lower costs. This market transformation is creating a unique opportunity for forward-thinking, Cloud- savvy solution providers to develop and deliver innovative services and solutions that will enhance their customer value proposition and fuel the growth of their business. The Cloud Market Transformation Creating A Unique Opportunity For Forward-thinking, Cloud-savvy Solution Providers To Elevate Their Business
4 The Old IT Paradigms are Breaking DownDelayed upgrades = outdated innovation Siloed and disparate systems As a result – of this complex silo problem you have an inability to scale quickly. on-premises upgrade cycles are slow and prevent innovation as they innovations you intended to receive are already dated or even out of date. Disparate systems and clouds increase complexity to manage and maintain Costs to integrate all of this can be costly Often you have fewer internal resources that can help you upgrade these disparate systems. Other Challenges Big staff cuts with aging IT systems. No budget directly allocated to IT Department for Patches, Upgrades, Fixes, Refreshes. Required to seek Line of Business approval to spend outside personnel costs. Inability to sunset despite its technical obsolescence. Difficulty finding new talent that knows older technology. Large and growing technical debt High integration costs Legacy processes Complexity No resources Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
5 DISRUPTION It’s been our four-decade-long commitment to help our customers through every major transformation—from mainframe to client server to the rise of the Internet to mobile, and now the cloud. And we’re still on that journey with them today with cloud Oracle started out as a little company with a big idea We believed that companies that set out to change the world should stand for something, something that matters We began with the belief that the foundation of information technology was actually managing that information and providing customers with the tools to take advantage of it. We imagined the power those tools could have to impact change And we began with data at the heart of what we do. As we grew, we expanded our portfolio and nearly a decade ago began transitioning our apps to cloud. And when you look at Oracle over those nearly 40 years, who we are and the core beliefs that drive us haven’t changed over that entire time Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
6 SAIC breaks up into two firmsCopyright © 2017, Oracle and/or its affiliates. All rights reserved.
7 CSC spins off U.S. Government businessCopyright © 2017, Oracle and/or its affiliates. All rights reserved.
8 Lockheed Martin sells off IT Services businessIt’s been our four-decade-long commitment to help our customers through every major transformation—from mainframe to client server to the rise of the Internet to mobile, and now the cloud. And we’re still on that journey with them today with cloud Oracle started out as a little company with a big idea We believed that companies that set out to change the world should stand for something, something that matters We began with the belief that the foundation of information technology was actually managing that information and providing customers with the tools to take advantage of it. We imagined the power those tools could have to impact change And we began with data at the heart of what we do. As we grew, we expanded our portfolio and nearly a decade ago began transitioning our apps to cloud. And when you look at Oracle over those nearly 40 years, who we are and the core beliefs that drive us haven’t changed over that entire time Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
9 HPE sells off IT Services businessIt’s been our four-decade-long commitment to help our customers through every major transformation—from mainframe to client server to the rise of the Internet to mobile, and now the cloud. And we’re still on that journey with them today with cloud Oracle started out as a little company with a big idea We believed that companies that set out to change the world should stand for something, something that matters We began with the belief that the foundation of information technology was actually managing that information and providing customers with the tools to take advantage of it. We imagined the power those tools could have to impact change And we began with data at the heart of what we do. As we grew, we expanded our portfolio and nearly a decade ago began transitioning our apps to cloud. And when you look at Oracle over those nearly 40 years, who we are and the core beliefs that drive us haven’t changed over that entire time Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
10 Xerox spins off IT Services businessIt’s been our four-decade-long commitment to help our customers through every major transformation—from mainframe to client server to the rise of the Internet to mobile, and now the cloud. And we’re still on that journey with them today with cloud Oracle started out as a little company with a big idea We believed that companies that set out to change the world should stand for something, something that matters We began with the belief that the foundation of information technology was actually managing that information and providing customers with the tools to take advantage of it. We imagined the power those tools could have to impact change And we began with data at the heart of what we do. As we grew, we expanded our portfolio and nearly a decade ago began transitioning our apps to cloud. And when you look at Oracle over those nearly 40 years, who we are and the core beliefs that drive us haven’t changed over that entire time Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
11 Ciber files for bankruptcyIt’s been our four-decade-long commitment to help our customers through every major transformation—from mainframe to client server to the rise of the Internet to mobile, and now the cloud. And we’re still on that journey with them today with cloud Oracle started out as a little company with a big idea We believed that companies that set out to change the world should stand for something, something that matters We began with the belief that the foundation of information technology was actually managing that information and providing customers with the tools to take advantage of it. We imagined the power those tools could have to impact change And we began with data at the heart of what we do. As we grew, we expanded our portfolio and nearly a decade ago began transitioning our apps to cloud. And when you look at Oracle over those nearly 40 years, who we are and the core beliefs that drive us haven’t changed over that entire time Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
12 IT Industry Leaders
13 Oracle’s Cloud JourneyTransform Partner Ecosystem Build out Cloud Infrastructure on global scale Re-engineer Oracle Sales Force Launched new Cloud and MSP programs, boot camps, online training Let’s take a look at the 3 key growth strategies that Oracle has been executing for over the last 10 years.. Oracle has been in the applications business for “much” longer than a decade. (Founded its applications division in ) In 2004, started acquiring, PSFT, Siebel, etc And created our Applications Unlimited program That assures on-premises software customers ongoing innovation & support even TODAY! Then about 8 years ago, began to develop FROM THE GROUND UP: Best in class CLOUD APPS Consumer-like UI Complete business processes Built-in analytics All built on one standards based cloud platform (Platform as a Service) And made key cloud acquisitions to bring you even more in the cloud Then to help u get to the cloud more easily, we created PRACTICAL PATH PROGRAMS and support One program called: Customer 2 Cloud Helping you to shift your existing Oracle investment to the cloud With rapid start-up services And fixed cost/fixed scope implementations Next slide… Built out 19 global data centers, created Cloud Ops team, developed service automation Selectively Acquire Cloud Companies Rebuild SW/HW Assets for the Cloud Retrained sales organization, adjusted Comp Plans, created new teams Acquired RightNow, Taleo, Eloqua, Netsuite, and 20 other cloud vendors Completed comprehensive effort to develop Fusion Applications and Tech Software for the Cloud
14 Oracle Cloud Revenue 50% CAGR
15 What We Built Oracle Cloud Complete application suite and platformPersonalized, connected, data-driven Having the confidence to pursue your own path is critical But that confidence can only come from the knowledge that you have a complete, strongly-built, tightly connected cloud to support you It comes when your cloud gives you choices to change course as you need to, and when you have the openness and freedom to add to your cloud however you want Finally, it comes from knowing you’re safe and secure every step of the way Oracle offers a complete integrated cloud platform that provides unprecedented ability to take meaningful steps toward genuine business transformation via cloud Secure with global scale Industry-focused, Modern Best Practice Built-in mobile, social, analytics 1515
16 Expected Cloud Adoption Rates20% SaaS Applications 10% Private Cloud 20% Retired Workloads PaaS/IaaS 10% Retained Legacy 40%
17 Modern, Complete Suite of Cloud ApplicationsDesigned to grow with you 18 Leader Marketing Sales Configure, Price & Quote Commerce Service Social CX Cloud ratings in SaaS Categories Global HR Talent Management Payroll Workforce Management Work Life HCM Cloud Oracle’s Modern Cloud applications are designed to grow with you: a complete suite of cloud applications that can be consumed incrementally, with a common unified data model and architecture that can be tailored to individual preferences. The most comprehensive offering of cloud applications in the market today. Oracle designed Modern best of breed SaaS applications within a suite from the ground up. And, you don’t have to compromise on quality, you get BEST-IN-CLASS capabilities in each application. In fact our portfolio of cloud applications has been recognized as “leading” in 18 categories by industry analysts*. You get best-in-class functionality With a modern user experience That can be consumed incrementally That are all part of a unified, cohesive cloud All built on one standards based cloud platform Next Slide… ________________________________ * Forrester’s Waves, Gartner’s MQs, IDC’s Marketscapes Financials Governance, Risk & Compliance Project Portfolio Management Procurement ERP Cloud Planning & Collaboration Manufacturing Order Management Inventory & Logistics PLM Procurement SCM Cloud DaaS for Marketing DaaS for Sales DaaS for Customer Intelligence Data Cloud Apps Marketplace Enterprise Planning Financial Reporting Account Reconciliation Financial Consolidation & Close EPM Cloud
18 Oracle PaaS/IaaS Cloud ServicesComprehensive Integrated Data management Application development Open Oracle is the leading enterprise platform today – How you store your data, build your applications, run your company And our customers are moving to the cloud, and Oracle will be the infrastructure provider to our customers Key foundation for Cloud Platform is IaaS Everything you need up the stack is either given to you by the underlying infrastructure, or you don’t have it. All of that comes from Infrastructure A comprehensive, integrated portfolio of PaaS and IaaS solutions, built on open standards, available in the Oracle Cloud or in your Data Center. Hybrid Cloud: Oracle’s leading database and middleware technology in the Oracle Cloud but also available on prem in your data center with our Oracle Customer offering Comprehensive: Broadest, Easy to Use, PaaS & IaaS. Everything you need to build cloud and mobile apps for your customers and employees, extend SaaS apps. Integrated: Identity, Infrastructure, Management. To secure, operate and manage hybrid cloud applications. Open: Standards-Based (Java, SQL, JavaScript, REST, etc.) It OPERATIONS management Enterprise integration Hybrid Deployment PaaS data integration identity & security Content & Experience BUSINESS ANALYTICS IaaS Compute Storage Network Oracle Data Center Oracle Public Cloud Your Data Center Oracle Cloud at Customer
19 Oracle’s Cloud ExpansionBrazil Canada US West US Central US East US Gov US DOD UK North UK South UK Gov Japan East Japan South EU Singapore China Middle East Germany West ANZ Central, ANZ East 28M+ Active Users 55B+ Database Transactions/Day 68,000 Enterprise Tenants 35 Languages 124,000 VMs 1,800 Cloud Operations Staff (Note: Does not include Netsuite footprint yet ) Today Oracle Cloud has global regional coverage and we use a regional designation to depict our data centers. We offer high availability within regions through the multi-data center deployments called Availability Domains. Oracle Cloud has 19 REGIONS with multiple data centers in each region around the world –10 in planning. In North America, we have a western-region location near Phoenix, a central region in Chicago, and an eastern region near Ashburn, Virginia. For Canada, we currently have a primary/DR data center relationship between Toronto and Calgary, respectively, and we will be deploying an Availability Domain region in Canada by early FY18. In Latin America, we're currently in Campinas and will be opening up a second data center for PaaS services in São Paulo, Brazil FY17-Q4. Oracle Cloud currently has an Availability Domain region in London, and will be adding Frankfurt as the continental Availability Domain Region by FY18-Q1. In addition, SaaS offering for continental Europe is served out of Amsterdam, and we have deployed a Primary/DR relationship in Frankfurt and Munich for German customers using SaaS. We have a location in the Middle East under development, five locations in Asia, two in Australia, and two in Japan. We're opening a data center in China with a partner. We have a location in Singapore, and we're evaluating data centers in Korea, Turkey, and India. So we have broad coverage around the world. How are these data centers deployed across locations for redundancy and maximum coverage for our cloud customers? In each region such as the US western region in Phoenix, we typically have three locations on three separate power grids, so if one power grid goes down, the other two locations keep running. We call that availability domains. Each availability domain is connected to the others over dark fiber so you get less than 100 milliseconds latency, and each region is connected with other regions over a fiber ring. So there are different degrees of redundancy and high availability that can be designed within a region or across regions. Source: Speaker notes are from Thomas Kurian interview with Corp Comms Sept 2017 OOW with tweaks. “10MS corrected to 100MS per Cloud Ops drawing” 19 Data Center Regions
20 Oracle Cloud@Customer: Complete Cloud Deployment ChoiceSame Standards & Technology Deployment Choice & Portability Unified Management Same subscription & pay-as-you-go pricing ORACLE PUBLIC CLOUD Oracle IaaS Database, Exadata, Big Data Java, Integration Oracle A complete cloud running behind your firewall on a single appliance Great for latency-sensitive and compliance-oriented workloads Pay for what you use, opex not capex, remote administration and patching, etc. Get the benefits of the cloud even where compliance, regulation, or regional availability makes public cloud adoption either challenging or farther out in time Easier first step in pathway to public cloud The same PaaS services work behind your firewall and in Oracle’s public cloud platform Countries with strict data residency and data jurisdiction laws Workloads that require special ops staff clearance Very low latency requirements between workloads on prem General unease with public cloud and multitenancy ON-PREMISES / BEHIND FIREWALL Dev/Test in Oracle Cloud, deploy in production on-premises Burst from on-premises to Oracle Cloud for flex capacity on demand
21 Oracle IaaS Combines the Best of First-gen and On-premises2nd Gen Modern Cloud Infrastructure Bare metal servers in minutes Extreme performance without hypervisor overhead Pay for what you use Integrated services - compute, storage, database, identity, load balancing, audit Low-latency private network Enterprise-level governance High availability for mission-critical workloads All features usable via console or API First-generation IaaS (e.g. AWS, Azure) Adding capacity takes minutes Only pay for what you use On-premises or Managed Hosting (e.g. Rackspace, Softlayer) Raw iron performance Dedicated hardware
22 Latest Technologies Enable Enterprise-Class Cloud InfrastructureTechnology Benefit Availability domains Enables enterprise-level high availability Flat, non-blocking network Enables predictable high bandwidth, low latency; eliminates “noisy neighbors” Off-box IO virtualization & automated hardware wiping Enables secure deployments of bare metal servers without Oracle management software overhead Direct-attached NVMe storage Enables highest IO workloads
23 Region / Availability Domain TopologyRegions -- serve different geographies, provide Disaster Recovery Availability Domains – independent data centers, providing a High Availability foundation in a Region Availbility Domain 1 Availability Domain 2 Availability Domain 3 Region 1 Availability Domain 1 Region 3 Region 2
24 Compute Services
25 Next Generation Infrastructure: The Network
26 Policy Services
27 Inside a Region – High Availability Building BlocksMultiple fault-decorrelated, completely independent datacenters – Availability Domains (ADs) Predictable low latency & high speed, encrypted interconnect between ADs Low RTT latency, 1Tb/s bandwidth Enables zero-data-loss architectures (e.g. Oracle MAA) and high availability scale-out architectures (e.g. Cassandra) Region Availability Domain 1 Availability Domain 2 Availability Domain 3 Datacenters
28 Inside an AD – High Scale, High Performance NetworkNon-oversubscribed Clos network – flat, fast, predictable Very high scale – ~1 million network ports in an AD Predictable low latency & high speed interconnect between hosts in an AD < 100µs RTT latency, Gb/s bandwidth Physical Network Region Availability Domain 1 Availability Domain 2 Availability Domain 3 Datacenters
29 Comprehensive Virtual Network with Off-box VirtualizationHighly configurable private overlay networks – moves management and IO out of the hypervisor and enables lower overhead and bare metal instances Virtual Network Physical Network Region Availability Domain 1 Availability Domain 2 Availability Domain 3 Datacenters
30 Cutting-edge, High IO Hardware TechnologyHigh Performance Compute Systems 36 Cores per Server Standard: Non-NVMe SSD, 256 GB RAM High I/O: 12.8 TB NVMe SSD, 512 GB RAM Dense I/O: 28.8 TB NVMe SSD, 512 GB RAM More cores More RAM 2X Storage 6X Write IOPS Same price vs. AWS Highest IO Offering (i3.16XL Dedicated) High Performance Storage Systems Local NVMe: up to 28.8 TB/Server, ~4 Million 4K Read IOPs Block Storage: 256GB-2TB, 1.5K-6K IOPs per Volume Object Storage – High Throughput, Strong Consistency
31 Putting it All Together – Reliable, Predictable, Flexible, FastBare metal w/NVMe ? Compute & Storage Bare metal hosts VMs Engineered Systems Any middlebox – IDS/IPS,… Virtual Network Physical Network Region Availability Domain 1 Availability Domain 2 Availability Domain 3 Datacenters
32 Application Development Enterprise IntegrationCustomer Experience ERP HCM IoT Cloud Solutions for Every Enterprise IT Category Data Integration Application Development Data Management Enterprise Integration With Oracle’s broad collection of available services, there isn’t just one solution or one path to the cloud Only Oracle offers a full technology continuum to enable customers wherever they might be on their journey The customer’s ultimate end goal is what’s most important This is where we’re able to move organizations to a cloud-IT model, one that is professionally managed, secured, and fully maintained in the cloud Our Platform as a Service offering is not just about the different services but at the end of the day it’s the multiple use cases we support that can differentiate us, as well Be that trusted advisor, identify those use cases and drive that cloud usage Each of these core PaaS services can work in various key use cases, joined as solutions For example, you can move Java and database workloads to the cloud for dev/test use cases You can combine services which support unstructured data and Hadoop for bringing a better picture of your big data through business analytics We offer multiple integration styles that can work with on-premises and hybrid cloud environments We can extend your SaaS apps We can simplify and enable enterprise and mobility, especially for those enterprise legacy apps that have long tails, but we need to move them forward—bring them forward and mobilize them Sharing in the cloud and Business Intelligence in the cloud —we can support all these things, and as we engage with customers we need to really understand these use cases Only Oracle offers the ability to drive more business value (again its about being greater than the sum of the parts) Management Security Big Data Business Analytics Storage Engineered Systems Compute Networking Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
33 SLED Entities Moving to the Oracle Cloud
34 SLED Entities Moving to the Oracle Cloud
35 What Is Your Path to the Cloud?Ultimately, Oracle Cloud is about providing a path In other words, what we’ve built is a way for companies to finally see a path to cloud that works— specifically for them Supporting all stages of their journey to cloud. It’s not someone else’s vision for the cloud. It’s not a one- size-fits-all, cookie-cutter cloud It’s a personalized cloud path that suits their individual needs Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
36 Execute Engage Explore EvaluateCopyright © 2017, Oracle and/or its affiliates. All rights reserved. 36
37 Evaluate Complete SWOT AnalysisEvaluate existing customer base and current/target market(s) Evaluate Cloud growth potential available through your existing vendors Evaluate financial position, cost/revenue projections and access to capital Evaluate
38 Explore Explore strategy and offerings of new Cloud vendorsExplore benefits of vendor partner programs Explore resources available through your VAD Participate in Industry events Pilot new technology/products Explore
39 Engage staff to develop training objectives and participate in learning opportunitiesCollaborate with one of your strategic vendors on GTM strategy Engage customers in Cloud roadmap conversations Discuss potential teaming arrangements Engage
40 Choice Execute Complete initial technical/sales trainingObtain any necessary vendor agreements and/or certifications Conduct initial sales prospecting Develop and present Cloud proposals to receptive accounts Complete initial POCs and/or projects Develop reference accounts Choice Execute Choice creates opportunities While it’s true some companies are moving to cloud as fast as possible, many others—for various reasons—haven’t been able to do so We focus the engineering of our products and services to best connect private cloud, public cloud, public cloud on premises (Oracle Cloud Machine), and hybrid cloud to enable flexibility, ease, agility, compatibility, extensibility, and seamlessness We feature consumption models and entry points for all businesses Migrate and adoption paths—resource, workloads, projects, integrations, extensions, development, production Same environments preserve existing IT investments Journey to cloud isn’t a one-way street, so Oracle built a bridge Also, innovation is how we delivered this The technology stack of the cloud is completely different from what enterprises have invested in on premises, which poses a great challenge to our customers Innovation is how we can leverage a customer’s prior investment in technology while allowing them to enjoy the benefits of the new model seamlessly, painlessly Innovation number one: no writing of applications, no modifications of VMs, while providing bi-directional portability to the cloud and back Innovation number two: customers can leverage their existing IT processes, their architectural blueprints, their complicated network topology in the cloud Innovation number three: the operational excellence of our data centers allows a level of fast performance in all cloud service operations that few, if any, companies can match Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
41 Key Drivers Impacting Cloud Adoption$ Changing User Expectations Customers/constituents expect modern, mobile applications Painful & Costly Upgrades Orgs are deciding they never want to go through another major upgrade ever again Complex IT Environments IT orgs are deciding they want to get out of the infrastructure business Budget Pressures Orgs need to reduce costs & move to more predictable cost curves
42 By 2025 … 100% of new dev/test will be in the cloud80% of IT budgets will be spent on Cloud, rather than traditional systems Enterprise clouds will be the most secure IT environment in the world What people are really asking us for is this…. They want us to help them simplify their IT departments. Aggregate their Data so they can use it Make better use of the abundance of information See the signals and adapt faster—continuously learn and improve Run our organizations more intelligently Recruit and engage employees more intelligently Predict what our customers will need and respond to It’s about more than technology—it’s about enhancing our lives in ways we’ve never imagined Examples… What if you could move to paperless totally automated systems, and automate the manual and error-prone tasks associated with running your business What if you could completely understand your business and have common tools for viewing, and acting on the data in an intelligent way What if you could better manipulate the information that is coming at you from all directions (sprinkler heads, your car, the machines plant floor, shipping containers, etc) What if you could be able to match patterns of data simply and easily without having to be a data scientist? (All of these technologies around self-learning are great but they can’t operate without consistency of the data) What if you could manage and secure everything in your environment from the transactions to the applications to the data itself, no matter where it lives in your own on-premises or Cloud providers Mark Hurd, Oracle OpenWorld 2016 Copyright © 2017, Oracle and/or its affiliates. All rights reserved. Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
43 Oracle – Supporting Your JourneyAnd we’re still on that journey today $5B+ Annual R&D Investment Complete Cloud Portfolio Large Customer Base Oracle PartnerNetwork (OPN) Program Entitlements and Benefits Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
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