Oracle Corporation

Oracle Corporation
Type Public (NASDAQ: ORCL)
Founded California, USA (1977)[1]
Headquarters Redwood City, CA
Key people Larry Ellison, Co-founder and CEO
Jeffrey O. Henley, Chairman
Safra A. Catz, President/CFO
Charles Phillips, President
Industry Software & Programming
Products Oracle Communications
Oracle Database
Oracle Rdb
Oracle eBusiness Suite
Oracle Application Server
Oracle JDeveloper
Oracle Application Framework
Oracle ADF
Oracle Beehive
TimesTen
Oracle Collaboration Suite
Oracle Enterprise Manager
Oracle Application Express
Oracle Designer
Oracle Developer Suite
Market cap $84,43 billion USD (2008)
Revenue $22.43B billion USD (2008)
Operating income $7.844 billion USD (2008)
Net income $5.521 billion USD (2008)
Employees 74,757 (as of 4 November 2008 (2008 -11-04))
Website http://www.oracle.com

Oracle Corporation (NASDAQORCL) specializes in developing and marketing enterprise software products — particularly database management systems. Through organic growth and through a number of high-profile acquisitions, Oracle enlarged its share of the software market. By 2007 Oracle ranked third on the list of largest software companies in the world, after Microsoft and IBM.[2] Subsequently it became larger than IBM after its acquisition of Hyperion and of BEA.

The corporation has arguably become best-known due to association with its flagship Oracle database. The company also builds tools for database development, middle-tier software, enterprise resource planning software (ERP), customer relationship management software (CRM) and supply chain management (SCM) software.

The founder and CEO of Oracle Corporation, Larry Ellison, has served as Oracle's CEO throughout the company's history. Ellison also served as the Chairman of the Board until his replacement by Jeffrey O. Henley in 2004. Ellison retains his role as CEO.

Ellison took inspiration from the 1970 paper written by Edgar F. Codd on relational database systems named "A Relational Model of Data for Large Shared Data Banks".[3] He had heard about the IBM System R database from an article in the IBM Research Journal provided by Ed Oates (a future co-founder of Oracle Corporation). System R also derived from Codd's theories, and Ellison wanted to make his Oracle product compatible with System R, but IBM stopped this by keeping the error codes for their DBMS secret. Ellison co-founded Oracle Corporation in 1977 under the name Software Development Laboratories (SDL). In 1979 SDL changed its name to Relational Software, Inc. (RSI). In 1982, RSI renamed itself as Oracle Systems[4] to align itself more closely with its flagship product Oracle Database. At this stage Robert Miner served as the company's senior programmer.

Contents

Overall timeline

Technology timeline

RDBMS release timeline

Oracle acquisitions

As became apparent with the acquisition of PeopleSoft in January 2005, Oracle has made acquisitions an important component of its growth strategy.

Company Date Industry Valuation
millions USD
Thinking Machines Corporation 01999-06 June 1999 Darwin, Datamining technology N/A sm=n
Toplink 02002-01 January 2002 Object relation mapping technology N/A sm=n
NetForce 02002-01 January 2002 Adverse Event Reporting System N/A sm=n
Steltor 02002-06 June 2002 Enterprise calendaring system N/A sm=n
Phaos 02004-05 May 2004 Identity Management N/A sm=n
Collaxa 02004-06 June 2004 Business Process Management N/A sm=n
PeopleSoft 02005-01 January 2005 Enterprise Software $10,300
Oblix 02005-03 March 2005 Identity Management N/A sm=n
Retek 02005-04 April 2005 Retail Industry Solutions $630
TripleHop 02005-06 June 2005 Context-sensitive Enterprise Search N/A sm=n
TimesTen 02005-06 June 2005 Real-time Enterprise Solutions N/A sm=n
ProfitLogic 02005-07 July 2005 Retail Industry Solutions N/A sm=n
Context Media 02005-07 July 2005 Enterprise Content Integration N/A sm=n
i-flex (Oracle Financial Services) 02005-08 August 2005 Banking Industry Solutions $900
G-Log 02005-09 September 2005 Transportation Management Solutions N/A sm=n
Innobase 02005-10 October 2005 Discrete Transactional Open Source Database Technology N/A sm=n
Thor Technologies 02005-11 November 2005 Enterprise-wide User Provisioning Solutions. N/A sm=n
OctetString 02005-11 November 2005 Virtual Directory Solutions N/A sm=n
Temposoft 02005-12 December 2005 Workforce Management Applications N/A sm=n
360Commerce 02006-01 January 2006 Retail Industry Solutions N/A sm=n
Siebel Systems 02006-01 January 2006 Customer Relationship Management Solutions $5,850
Sleepycat 02006-02 February 2006 Open Source Database Software for Embedded Applications N/A sm=n
HotSip 02006-02 February 2006 Communications Infrastructure Solutions N/A sm=n
Portal Software 02006-04 April 2006 Communications Industry Software Suite $220
Net4Call 02006-04 April 2006 Communications Industry Service Delivery Platform N/A sm=n
Demantra 02006-06 June 2006 Demand-driven Planning Solutions N/A sm=n
Telephony@Work 02006-06 June 2006 IP-based Contact Center Technology N/A sm=n
Sigma Dynamics 02006-08 August 2006 Real-time Predictive Analytics Software N/A sm=n
Sunopsis 02006-10 October 2006 Enterprise Integration Software N/A sm=n
MetaSolv Software 02006-10 October 2006 Communications Service Providers Solutions $219
Stellent 02006-11 November 2006 Content Management Solutions $440
SPL WorldGroup 02006-11-03 November 3, 2006 Revenue and Operations Management Software N/A sm=n
Hyperion Solutions 02007-03-01 March 1, 2007 Enterprise Performance Management $3,300
AppForge
(intellectual assets only)
02007-04 April 2007 Cross-platform handheld development N/A sm=n
Agile Software Corporation 02007-05-15 May 15, 2007 Product Life Cycle Management Software $495
Bharosa 02007-07-18 July 18, 2007 Identify Theft $495
NetSure Telecom Ltd. 02007-09-02 September 2, 2007 Network intelligence and optimization software Undisclosed sm=n
Bridgestream 02007-09-05 September 5, 2007 Enterprise Role Management N/A sm=n
LogicalApps 02007-10-09 October 9, 2007 Compliance software N/A sm=n
Moniforce 02007-12-06 December 6, 2007 End-user experience management software N/A sm=n
BEA Systems 02008-01-16 January 16, 2008 Middleware software Company $8,500
Captovation 02008-01-16 January 16, 2008 Document capture software N/A sm=n
Empirix (Web) 02008-03-27 March 27, 2008 Web application testing software N/A sm=n
LODESTAR Corporation 02007-04-24 April 24, 2007 Utility software solutions N/A sm=n
AdminServer 02008-05-13 May 13, 2008 Insurance policy administration software N/A sm=n
Skywire Software 02008-06-23 June 23, 2008 Insurance software N/A sm=n
Global Knowledge Software 02008-07-31 July 31, 2008 Technical Writing/Training Authoring software N/A sm=n
ClearApp 02008-09-02 September 2, 2008 Application management solutions for composite applications software N/A sm=n
Primavera Systems 02008-10-09 October 9, 2008 Project Portfolio Management solutions software N/A sm=n
Haley Limited 02008-10-29 October 29, 2008 Policy modeling and automation software N/A sm=n

Products and services

Technology products

Various databases

Main article: Oracle Database

In 2004 Oracle Corporation shipped release 10g ("g" standing for "grid") as the then latest version of Oracle Database. (Oracle Application Server 10g using Java EE integrates with the server part of that version of the database, making it possible to deploy web-technology applications. The application server comprises the first middle-tier software designed for grid computing. The strong interrelationship between Oracle 10g and Java has enabled the company to allow developers to set up stored procedures written in the Java language, as well as those written in the traditional Oracle database programming language, PL/SQL.)

Release 11g has started to replace release 10g.

BerkeleyDB offers embedded database processing.

Oracle Rdb, a relational database system, runs on OpenVMS platforms. Oracle acquired Rdb in 1994 from Digital Equipment Corporation. Oracle has since made many enhancements to this product and development continues today.

TimesTen features in-memory database operations.

Oracle Fusion Middleware

Main article: Oracle Fusion Middleware

Oracle Enterprise Manager

Main article: Oracle Enterprise Manager

Some database administrators (DBAs) use Oracle Enterprise Manager (OEM) to manage the DBMS. With Oracle Database version 10g, Oracle Corporation introduced a web-based rewrite of OEM called "Oracle Enterprise Manager Database Control". Oracle Corporation has dubbed the super Enterprise Manager used to manage a grid of multiple DBMS and Application Servers as "Oracle Enterprise Manager Grid Control".

Oracle Secure Enterprise Search

Oracle Beehive

From 2008, Oracle Beehive provides an integrated set of collaborative software services built on a single, scalable, open, and enterprise-class collaboration platform.[9]

Oracle Collaboration Suite

Oracle Collaboration Suite contains messaging, groupware and collaboration applications.

Development software

Oracle Corporation's tools for developing applications include (amongst others):

Many external and third-party tools make the Oracle database administrator's tasks easier.

Application products

Besides databases, Oracle also sells a suite of business applications. The Oracle eBusiness Suite includes software to perform financial- (Oracle Financials), manufacturing-, enterprise resource planning and HR- (Human Resource Management Systems) related functions (Oracle HR). Users can access these facilities through a browser interface over the Internet or via a corporate intranet.

Consequent to a number of high-value acquisitions beginning in 2003, especially in the area of applications, Oracle Corporation currently maintains a number of product lines:

Main article: Oracle eBusiness Suite
Main article: PeopleSoft
Main article: Siebel Systems
Main article: J.D. Edwards

Development of applications commonly takes place in Java (using Oracle JDeveloper) or through PL/SQL (using, for example, Oracle Forms and Oracle Reports). Oracle Corporation has started a drive toward "wizard"-driven environments with a view to enabling non-programmers to produce simple data-driven applications.

Services

Marketing

Sales practices

In 1990 Oracle laid off 10% (about 400 people) of its work force because of a mismatch between cash and revenues. This crisis, which almost resulted in Oracle's bankruptcy, came about because of Oracle's "up-front" marketing strategy, in which sales people urged potential customers to buy the largest possible amount of software all at once. The sales people then booked the value of future license sales in the current quarter, thereby increasing their bonuses. This became a problem when the future sales subsequently failed to materialize. Oracle eventually had to restate its earnings twice, and also settled (out of court) class-action lawsuits arising from its having overstated its earnings. Ellison would later say, in 1992, that Oracle had made "an incredible business mistake".[14]

Competition

Although IBM dominated the mainframe relational database market with its DB2 and SQL/DS database products, it delayed entering the market for a relational database on UNIX and Windows operating systems. This left the door open for Sybase, Oracle, and Informix (and eventually Microsoft) to dominate mid-range and microcomputers.

Around this time, Oracle technology started to lag technically behind that of Sybase. In 1990-1993 Sybase became the fastest-growing database company and the database industry's darling vendor, but soon fell victim to its merger mania and to technical issues with System X. Sybase's 1993 merger with PowerSoft resulted in its losing its focus on its core database technology. In 1993, Sybase sold the rights to its database software running under the Windows operating system to Microsoft Corporation, which now markets it under the name "SQL Server."

In 1994 Informix Software overtook Sybase and became Oracle's most important rival. The intense war between Informix CEO Phil White and Ellison made front-page news in Silicon Valley for three years. Ultimately, Oracle defeated Informix in 1997. In November 2005 a book detailing the war between Oracle and Informix appeared. The Real Story of Informix Software and Phil White provides a detailed chronology of the battle of Informix against Oracle, and how Informix Software's CEO Phil White landed in jail because of his obsession about overtaking Ellison.

Once it had overcome Informix and Sybase, Oracle Corporation enjoyed years of dominance in the database market until the rise of Microsoft SQL Server in the late 1990s and IBM's acquisition of Informix Software in 2000 (to complement its DB2 database). Today Oracle's competes for new database licenses on UNIX, Linux, and Windows operating systems primarily against IBM's DB2 and Microsoft SQL Server (which only runs on Windows). IBM's DB2 still dominates the mainframe database market.

In 2004, Oracle's sales grew at a rate of 14.5% to $6.2 billion, giving it 41.3% and the top share of the relational-database market (InformationWeek - March, 2005), with market share estimated at up to 44.6% in 2005 by some sources.[15] Oracle Corporation's main competitors in the database arena remain IBM DB2 and Microsoft SQL Server, and to a lesser extent Sybase and Teradata [1], with open-source databases such as PostgreSQL and MySQL also having a significant share of the market. EnterpriseDB, based on PostgreSQL, has recently made inroads[2] by proclaiming that its product delivers Oracle compatibility features at a much lower price-point.

In the software applications market, Oracle Corporation primarily competes against SAP. On March 22, 2007 Oracle sued SAP, accusing them of fraud and unfair competition.[16]

Due to the expanding market for business-intelligence software, many other software companies — small and large — have successfully competed in quality with Oracle and SAP products. Some commentators expect that more products and business intelligence services will appear within the next 10 years.

Oracle and SAP

Oracle Corporation and the German company SAP AG had a decade-long history of cooperation. This cooperation began in 1988, with the integration of SAP's R/3 enterprise application suite with Oracle's relational database products. The marketplace regarded the two firms' products as complementing one another, rather than as substitutes. Despite the current SAP partnership with Microsoft, and the increasing integration of SAP applications with Microsoft products (such as Microsoft SQL Server, a competitor to Oracle Database), Oracle and SAP continue their cooperation. According to Oracle Corporation, the majority of SAP's customers use Oracle databases.[17]

In recent years, however, competition between Oracle and SAP has increased, and as a result, the rivalry between the two companies has grown, even developing into a feud between the co-founders of the two companies, where one party would frequently voice strong negative comments about the other company.

In 2004 Oracle began to increase its interest in the business of enterprise applications (in 1989, Oracle had already released Oracle Financials). A series of acquisitions by Oracle Corporation began, most notably those of PeopleSoft, Siebel and Hyperion).

SAP recognized that Oracle had started to become a competitor in a market where SAP had the leadership, and saw an opportunity to lure in customers from those companies that Oracle Corporation had acquired. SAP would offer those customers special discounts on the licenses for its enterprise applications.[18] Oracle Corporation would resort to a similar strategy, by advising SAP customers to get "OFF SAP" (a play on the words of the acronym for its middleware platform "Oracle Fusion for SAP"),[19] and also by providing special discounts on licenses and services to SAP customers who chose Oracle Corporation products.

Currently Oracle and SAP also compete in the third-party enterprise software maintenance and support market (the latter through its recently acquired subsidiary TomorrowNow). On March 22, 2007 Oracle filed a suit against SAP. The complaint alleged that TomorrowNow, which provides discount support for legacy Oracle product lines, used the accounts of former Oracle customers to systematically download patches and support documents from Oracle's website and to appropriate them for SAP's use.[20] [21] Some analysts have suggested the suit could form part of a strategy by Oracle Corporation to decrease competition with SAP in the market for third-party enterprise software maintenance and support.[22][23]

On July 3, 2007 SAP admitted that TomorrowNow employees had made "inappropriate downloads" from the Oracle support web site. However, it claims that SAP personnel and SAP customers had no access to Oracle intellectual property via TomorrowNow. SAP's CEO Henning Kagermann stated that "Even a single inappropriate download is unacceptable from my perspective. We regret very much that this occurred." Additionally, SAP announced that it had "instituted changes" in TomorrowNow's operational oversight.[24]

Slogans

Controversies

Trashgate

In 2000 Oracle gained attention from the computer industry and the press after hiring private investigators to dig through the trash of organizations involved in a antitrust trial involving Microsoft.[25] The Chairman of Oracle Corporation, Larry Ellison, staunchly defended his company's hiring of an East Coast detective agency to investigate groups that supported rival Microsoft Corporation during its antitrust trial, calling the snooping a "public service". The investigation reportedly included a $1,200 offer to janitors at the Association for Competitive Technology to look through Microsoft's trash. Asked how he'd feel if others were looking into Oracle's business activities, Ellison said: "We will ship our garbage to Redmond, and they can go through it. We believe in full disclosure."[26]

"Can't break it, can't break in"

Oracle Corporation markets many of its products using the slogan "Can't break it, can't break in", or "Unbreakable". This signifies the increasing demands on information safety. Oracle Corporation also stresses the reliability of networked databases and network access to databases as major selling points.

However, two weeks after its introduction in 2002, David Litchfield, Alexander Kornbrust, Cesar Cerrudo and others demonstrated a whole suite of successful attacks against Oracle products.[27][28] Commentators criticized the slogan as unrealistic, and as an invitation to crackers. But Oracle Corporation's chief security officer Mary Ann Davidson portrayed the criticism as unfair. Rather than representing a literal claim of Oracle's products' impregnability, she saw the campaign in the context of fourteen independent security evaluations[29] that Oracle Corporation's database server passed.

Relationship with John Ashcroft

In 2004, then-United States Attorney General John Ashcroft sued Oracle Corporation to prevent a contract acquisition. Then, in 2005, Oracle hired Ashcroft's recently-founded lobbying firm, The Ashcroft Group, LLC. Oracle, with Ashcroft's lobbying, then went on to acquire the contract, a multi-billion dollar intelligence application.[30]

Headquarters

Oracle headquarters

Oracle Corporation has its world headquarters on the San Francisco Peninsula in the Redwood Shores area of Redwood City, adjacent to Belmont, near San Carlos Airport (IATA airport code: SQL).

Oracle HQ stands on the former site of Marine World Africa USA, which moved from Redwood Shores to Vallejo in 1986. Oracle Corporation originally leased two buildings on the site, moving its finance and administration departments from the corporation's former headquarters in Davis Drive, Belmont, California. Eventually, Oracle purchased the complex and constructed a further four main buildings.

The Oracle Parkway buildings featured prominently as the futuristic headquarters of the fictional company "NorthAm Robotics" in the Robin Williams film Bicentennial Man (1999).[31]

Sponsorships

On 20 October 2006, the Golden State Warriors and the Oracle Corporation announced a 10-year agreement in which the Oakland Arena would become known as the Oracle Arena.

Larry Ellison's yachting sponsorship uses the "Oracle" name: Oracle BMW Racing.

People

Bruce Scott, one of the first employees at Oracle (then Software Development Laboratories), subsequently co-founded Gupta Technologies (which later became Centura Software) in 1984 with Umang Gupta, and later became CEO and founder of PointBase, Inc. Bruce served as the co-author and co-architect of Oracle V1, V2 and V3. He originated the sample schema "SCOTT" (containing tables like EMP and DEPT) with the password defaulted to TIGER (apparently named after his cat).

In 1997, Larry Ellison became a director of Apple Computer after Steve Jobs came back to that company. Ellison resigned in 2002, saying that he did not have the time to attend necessary formal board meetings.

Trivia

See also

Notes

  1. 1.0 1.1 Oracle.com FAQ, oraFAQ.com
  2. Software Top 100: "The World's Largest Software Companies"
  3. Codd, E.F. (1970). "A Relational Model of Data for Large Shared Data Banks". Communications of the ACM 13 (6): 377–387. doi:10.1145/362384.362685. http://www.acm.org/classics/nov95/toc.html. 
  4. Oracle anniversary timeline, page 4. Retrieved 2008-05-15
  5. "Oracle Sues SAP". Oracle Corporation. Retrieved on 2008-11-11. "On March 22, 2007, Oracle filed a lawsuit in U.S. Federal District Court in the Northern District of California against SAP. Among the claims made against SAP are violations of the Federal Computer Fraud and Abuse Act and California Computer Data Access and Fraud Act, Unfair Competition, Intentional and Negligent Interference with Prospective Economic Advantage and Civil Conspiracy."
  6. Oracle to Acquire BEA Systems
  7. Oracle Introduces The HP Oracle Database Machine: Delivering 10x Faster Performance Than Current Oracle Data Warehouses
  8. Physical user guide
  9. "Oracle Beehive". Oracle Technology Network. Oracle Corporation (2008). Retrieved on 2008-11-11. "Oracle Beehive provides an integrated set of collaboration services built on a single, scalable, open, and enterprise-class collaboration platform."
  10. "Global Customer Support Security Practices" (PDF) 1. Oracle Corporation (2008-04-01). Retrieved on 2008-08-25. "Your registration on MetaLink uses a unique Customer Support Identifier (CSI) linked to your Support contract."
  11. "Global Customer Support Security Practices" (PDF) 1. Oracle Corporation (2008-04-01). Retrieved on 2008-08-25. "GCS is a global operation, with Service Request (SR) management based on global competencies"
  12. "Oracle Introduces Next-generation Customer Support Platform: My Oracle Support". Oracle Press releases. California: Oracle Corporation (2008-09-22). Retrieved on 2008-09-25. "My Oracle Support integrates Oracle's [...] support portal, Oracle® MetaLink, with its [...] configuration management platform, Oracle Software Configuration Manager, to deliver [..] support capabilities"
  13. Critical Patch Updates and Security Alerts. Retrieved 2008-05-15.
  14. Gilbert, Alorie (2002-06-20). Oracle cuts rewards for last-minute deals. CNET News. Retrieved on 2008-11-01 from http://www.zdnetasia.com/news/software/0,39044164,39048963,00.htm.
  15. http://www.oracle.com/corporate/analyst/reports/infrastructure/dbms/idc-201692.pdf
  16. Karen Gullo and Connie Guglielmo (March 22, 2007). "Oracle Claims Rival SAP Stole Software and Data (Update4)", Bloomberg. Retrieved on 2007-03-22. 
  17. "Oracle – the #1 Database for Deploying SAP Applications". Oracle Corporation. Retrieved on 2008-11-11. "Two thirds of SAP customers around the world, in every industry, choose to run their applications on Oracle databases."
  18. Safe Passage Program
  19. Oracle press release
  20. http://www.oracle.com/corporate/press/2007_mar/sapsuit.html
  21. http://www.oracle.com/sapsuit
  22. Gohring, Nancy; Elizabeth Montalbano. "Maintenance Contracts at Heart of Oracle, SAP Dispute". CIO India. http://www.cio.in/news/viewArticle/ARTICLEID=3017. Retrieved on 2008-06-09. 
  23. The lawsuit As barometer: SAP finally scores big with TomorrowNow | Enterprise Anti-matter | ZDNet.com
  24. SAP Responds to Oracle Complaint
  25. Oracle Rethinks Its Dumpster-Diving Ways
  26. Swing Shift Column, San Jose Mercury News (San Jose, California) (via Knight-Ridder/Tribune Business News) (December , 2000)
  27. The Register: "Oracle security claim"
  28. The Register: "How to hack unbreakable Oracle"
  29. Oracle list of major Security certifications Oracle list of major Security certifications
  30. Chicago Tribune: "Ashcroft breaks with tradition by lobbying, has earned $269,000"
  31. IMDb: Trivia for Bicentennial Man

External links