Oracle’s Strategy for the

Communications Industry
Lars Wahlström
Group vice President
Communications Industry Trends
“How can I enable the business and the
Convergent
network for next generation services, to
Services drive profitable new revenue growth?”

“How can I improve customer satisfaction,

Customer-Centric
build brand loyalty and maximize the value
Business of each customer?”

“How can I improve profitability, cost control

Industry
and regulatory compliance across multiple
Consolidation business entities?”

“How can I transform my information

Next Generation
architecture to support the next generation
Networks network and services?”
Objectives for Service Providers

Transform Modernize
into a Lean Your
Operator Infrastructure

Optimal
Results

Deliver
Converged Build
Products & Brand
Services Loyalty
Barriers to Success
• System and information fragmentation
• Too many customized, legacy systems make it difficult to evolve
in a cost efficient way
• Services silos limit ability to bundle and cross-sell
• Lack of standardization
• Fragmented business data leads to poor data quality
• Legacy operational mindsets
• Belief that enterprise software is not carrier-grade
• More willing to customize software than change their business
processes and rationalize their products
• Lack of alignment between IT and network organizations on
Next Generation architecture
• IT vendor relationships are transactional, not strategic
• Too many relationship, too much risk
• Costs too much, takes too long
• Lacks service agility
 Does IT deliver enough value?

Spend as % Communications 9% IT spend in Comms is over

Revenue Other Industries 4% double industry average

Almost 70% of spend is on

Capital 33%
Spend Usage Operational 67%
operating existing IT
infrastructure

Services 79% IT deployments are highly

Build vs. Buy Software 7% services dependent

COTS $1918M 75% of application deployment

Deployment Bespoke $5992M spend is on custom software

Traditional $3/sub Traditional operators spend 10X

Comparison New Entrant $0.3/sub more on IT than new entrants
Oracle’s Vision

Streamline the mission-critical, end to end processes

enabling rapid time to market and improved
customer loyalty.

Accelerate the adoption of standard software to

deliver increased value from information technology.

Drive carrier grade enterprise software into the

network domain to improve business agility and
reduce total cost of ownership.
Concept to Cash
Billing &
6 Collections
• Customer and invoicing
• Trial billing
• Receivables and G/L
• Collections
• Partner settlements
Service Usage &
5 Charging
• Service Delivery & Usage
• Service Mediation
• Real-time charging and billing
• Discounts and promotions
1 Concept Creation
Service Design &
• Customer insight 2 Configuration
• Behavioral and revenue
analytics • Service definition &
• Segmentation analysis configuration
• Concept generation • Service pricing, bundles and
promotions
• Service network deployment
• Service trials and release
Campaign
3 Execution
4 Service Fulfillment • Campaign Management
• Sales Execution
• Inventory assignment • Real-time up sell/cross sell
• Order orchestration • Order Capture and Commit
• Provisioning
• Service Activation &
Configuration
 Strategic Planning to Service Capability
Building the infrastructure for Concept to Cash

Strategic Enterprise Service

1 Management 2 Planning

• Business Strategy Definition • Infrastructure Planning

• Market & Competitor Analysis • Service Creation Strategy
• Establish Value Chain & • Pricing & Revenue Analysis
Partner Relationships • Define Processes &
• Investment Planning Non-Physical Resources

Asset Implement Service Procurement &

5 Optimization 4 Capability 3 Supply Chain

• Asset Tracking • Manage Network Build Projects • Manage Vendor Relationships

• Asset Maintenance • Configure Host or Wholesale • Procurement & Logistics
• Asset Valuation, Depreciation & Capabilities • Supply Chain Planning &
Financial Reporting • Transfer Capability to Asset Execution
• Asset Retirement & • Commission Capability into • Negotiate Host or Wholesale
Decommissioning Service Resource Requirements
 Driving Adoption of Standard Software

Deliver increased value to

mission-critical, service Service Providers
oriented applications
Strategic Value of Software

• Flexibility & Agility Built-In

• Faster Time to Revenue
Packaged software
applications • Information Integrity
• Simplifying IT Infrastructures
Buy & customize
• Low Cost of Change
• Total Cost Reduction
User controlled
source code

Industry Maturity
Enterprise Software into the Network

Financial benefits:
IT Capabilities • Lower development and
Real-Time Charging operating costs
Service Delivery Platform • Lower development risks
Telecom Services
(e.g., Virtual PBX, VoIP,
Presence, IPTV) Business benefits:
HSS • Improved time to market
(Home Subscriber Server) for new services
• Improved interoperability
between services and
applications
Network Domain
Oracle Solutions for Communications
 How Approach and Enable Transformation?

Streamline Business Processes…

…align with business priorities

Business Processes

Replace disparate functions with generic components

spanning cross customers and products…

…avoid short term integrations

Functionality

Consolidate, cleansed, enterprise data entities into hubs and

enable data synchronization flows

…expose data as a service

Data
Case Study: Vodafone Pacific

Full Convergence
• Pre- and Post-Paid
• Mobile voice, data, 3G, SMS,
MMS, content and roaming
• Retail, corporate and MVNO
• 3 countries
• 11.7+ million handsets
• 34 million CDR per day
• Driving competitive
differentiation
• First to market with mobile TV
• First to roll out branded 3G
content
Case Study: Telenor

Enabling Next-
Generation Services
• Faster service development
• End-to-end content & device
management
• Synergy across multiple
affiliates
• Secure access to network
resources by content and
service providers
Case Study: TeliaSonera
Enabling Customer
Focus

• 360 view of Customers

• Multi Channel
• One Invoice
• Standardised and
automised processes
• Dramatically reduced
time to market
• Dramatically reduced
cost
Putting Service Providers in Control
Conventional
Solutions

Carrier-grade, standards-based, yes no

commercial-off-the-shelf products

Built for any service, network, payment yes no

type or partner relationship
Integrated across the complete
concept-to-cash business processes yes no

Comprehensive solution for network yes no

lifecycle management

Scaleable and Upgradeable yes no

Predictable, total cost of ownership yes no

<Insert Picture Here>

Dittberner Associates

"Today, Oracle is the best

positioned IT player to compete
in that future next generation
world where the line between
communications apps and IT
apps goes away."
Dittberner, Dec. 2006
<Insert Picture Here>

Caroline Chappell
Research Analyst
Light Reading

“I see Oracle's entry as the inflection

point for this market, as it tries to
make up its (market) mind whether to
adopt IT standards like J2EE or Telco
App Servers from traditional
suppliers.”

“Services Software Insider”

Light Reading

April 2006
<Insert Picture Here>

Karl Whitelock
Sr. Consulting Analyst,
Stratecast

“The announced acquisition of

MetaSolv is a solid move for Oracle,
enabling it to cement together its SDP
offering, CRM functionality from its
Siebel assets, and billing from its Portal
assets.”
“Oracle to Acquire MetaSolv Software – OSS/BSS Vendor Consolidation
Enhances Strategic Focus on Operations, “ Stratecast
10 November 2006
<Insert Picture Here>

Larry Goldman
Analyst, Oss Observer

“In the past year, Oracle has changed

from a company with no discernible
focus on telecommunications software
to a leading supplier.”
“Oracle’s Increasing Focus on Telecom,” OSS Observer
27 October 2006
What Oracle Customers Are Saying
“We have reduced the number of customers who need to
call us back, we have increased the call resolution rate,
and most importantly of all we make certain every
customer receives professional, great service.”
- using Siebel CRM

“Oracle Fusion Middleware enabled our providers to

develop scalable, multi-platform applications cost-
effectively… meeting the needs of our expanding
business.”
- using Oracle Fusion Middleware
“Oracle Communications Billing and Revenue Management
is quite easy to understand and work with from a user
perspective, and the product reliability and stability are
very good.”
- using Oracle Communications Billing and Revenue Management

“With our Oracle solution we have seen innovation in our

work processes and better use of our assets and
manpower.”
- using Oracle E business suite ERP