Oracle Corporation: SWOT Analysis & Company Profile by BusinessReview

VIEWS: 295 PAGES: 28

More Info
									Oracle Corporation

_________________________________________________________________________________




Oracle Corporation: SWOT Analysis &
Company Profile


Reference code: BRTC032CP10-Q4

Published: Nov 2010




Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813



___________________________________________________________________________________________

Oracle Corporation - SWOT Profile                                                   Page 1
Oracle Corporation

__________________________________________________________________________________________


Oracle Corporation - Company Overview

Oracle Corporation (Oracle) is one of the largest enterprise software companies in the world. The company is principally
engaged in developing, manufacturing, marketing, distributing and servicing database and middleware software, software
and hardware systems. Oracle’s hardware products comprise computer server and storage products. It is also engaged in
offering IT consulting services, and financial services, besides offering training programs as part of its Oracle University
business line. The company’s relational database, the Oracle stack includes Oracle VM, Oracle Enterprise Linux, and
Oracle Fusion Middleware. Oracle serves over 370,000 customers located in over 145 countries across the globe. The
company is headquartered in Redwood City, California, the US.


Financial Performance

The company reported revenue of USD 26,820 million during the fiscal year ended May 2010. The company's revenue
grew at a CAGR of 9.35% during the period 2008-2010 with a year on year growth of 15.34% over fiscal year 2009.
During the fiscal year 2010 its operating margin was 33.79% as against the operating margin of 35.79% in fiscal year
2009. During the fiscal year 2010 the company registered a net margin of 22.87% as against the net margin of 24.05% in
the fiscal year 2009.




Oracle Corporation - Key Facts

Oracle Corporation, Key Facts

                                  500 Oracle Parkway, Redwood
                                  City, California (CA), 94065,     Ticker Symbol, Stock
Corporate Address:                                                                                   ORCL (NASDAQ)
                                                                    Exchange
                                  United States


Telephone                         + 1 650 5067000                   No. of Employees                 105,236



Fax                               + 1 650 5067200                   Financial Year End               May



URL                               www.oracle.com                    Revenue (in USD Million)         26,820.00


                                  Clean Technology , Technology
Industry
                                  and Communications

                                  Australia, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, China, Democratic People's Republic
                                  of Korea, Fiji, Hong Kong Special Administrative Region of China, India, Indonesia, Japan, Malaysia,
                                  Maldives, Myanmar, Pakistan, Philippines, Republic of Korea, Singapore, Taiwan, Thailand,
Locations                         Vietnam, Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany,
                                  Hungary, Russian Federation, Spain, Sweden, Switzerland, Turkey, United Kingdom, United Arab
                                  Emirates, Canada, United States, Argentina, Brazil, Chile, Colombia, Costa Rica, Peru, Puerto Rico,
                                  Trinidad and Tobago, Venezuela
Source: Annual Report, Company Website, Primary and Secondary Research




___________________________________________________________________________________________

Oracle Corporation - SWOT Profile                                                                                            Page 2
Oracle Corporation

__________________________________________________________________________________________


Oracle Corporation - Business Description

Oracle Corporation (Oracle) is a US-based enterprise software company. The company develops, manufactures, markets,
distributes and maintains database and middleware software, software and hardware systems. As of May 31, 2010, the
company employed about 105,000 people.

The company operates through seven reportable segments, which are categorized into three businesses, namely,
Software, Hardware Systems and Services. The Software business comprises two segments, namely, New Software
Licenses and Software License Updates and Product Support, while the Hardware Systems business comprises two
segments, namely, Hardware Systems Products, and Hardware Systems Support. The company’s Services business
consists of three segments, namely, Consulting, On Demand, and Education.

The company's New Software Licenses segment offerings include licensing of database and middleware software which
includes Oracle Databases, Oracle Fusion Middleware, and Applications software. Oracle Database is provided in four
editions, namely, Standard Edition One, Express Edition, Standard Edition, and Enterprise Edition. Besides these four
editions, the company offers Oracle TimesTen In-Memory Database, Oracle Berkeley DB, and Oracle Database Lite. In
addition, Oracle offers Oracle Enterprise Manager, Oracle Exadata, and Oracle Audit Vault. Oracle's technology supports
a wide range of operating systems including Linux, Windows and UNIX.


The offerings in Oracle Fusion Middleware include Application Server and Application Grid, Business Intelligence, Identity
and Access Management, Content Management, Portal and User Interaction, Service-Oriented Architecture and Business
Process Management, Data Integration, and Development Tools. Application software developed by Oracle comprises
Enterprise Resource Planning, Customer Relationship Management, Enterprise Performance Management, Enterprise
Project Portfolio Management, Product Lifecycle Management, and industry-specific applications During the fiscal year
ended May 2010, the New Software Licenses segment contributed 27.83% towards the total revenues of the company,
generating USD 7,525 million.

The company's Software License Updates and Product Support segment provides customers proactive and personalized
support services along with product enhancements and upgrades. During the fiscal year ended May 2010, the Software
License Updates and Product Support segment contributed 48.73% towards the total revenues of the company,
generating USD 13,175 million.


Under the Hardware Systems Products segment, the company offers computer server and storage products based on
Intel Xeon microprocessors and SPARC family of microprocessors. The company’s servers range from high performance
servers to entry-level servers based on Solaris Operating System, and Linux. The company also offers storage products
based on tape, disk and networking solutions, which help manage, protect, archive and restore data assets. During the
fiscal year ended May 2010, the Hardware Systems Products segment contributed 5.52% towards the total revenues of
the company, generating USD 1,493million.

Through the Hardware Systems Support segment, the company provides software updates essential to the functionality of
Oracle hardware systems and storage products. It also offers product repairs, maintenance services, and technical
support services to the customers. During the fiscal year ended May 2010, the Hardware Systems Support segment
contributed 3.37% towards the total revenues of the company, generating USD 912 million.

Under the Consulting segment, the company offers a host of services including business process simplification,
business/IT strategy alignment, solution integration, and product implementation, enhancements, and upgrades. During
the fiscal year ended May 2010, the Consulting segment contributed 10% towards the total revenues of the company,
generating USD 2,705 million.


The company's On Demand segment offers Oracle On Demand and Advanced Customer Services. Oracle On Demand
offers multi-featured software and hardware management, and maintenance services while Its Advanced Customer
Services include solution lifecycle management services, database and application management services, industry-
specific solution support centers, and remote and on-site expert services. During the fiscal year ended May 2010, the
Consulting segment contributed 3.28% towards the total revenues of the company, generating USD 887 million.

Oracle's Education segment offers training to customers, partners, and employees. These training sessions comprise
thousands of courses covering all of its product offerings. It also offers certification programs certifying database
administrators, developers, and implementers. Further, Oracle University offers virtual class education. During the fiscal
year ended May 2010, the Education segment contributed 1.24% towards the total revenues of the company, generating
USD 337 million.



Geographically, the company operates under seven segments, namely, the US, the UK, Japan, Germany, France,
Canada, and Other countries. During the fiscal year 2010, the US segment of the company contributed 42.77% to
								
To top