Confidential

Jean-Gabriel Henry & Carlos CamargoCollaborative Marketing

399 Main StreetLos Altos, CA 94022

650-949-4882April 1999

Oracle Support ServicesCustomer Requirements for Support Services

North America

A custom research project for Oracle Support Services

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Roadmap

Introduction & MethodologyIntroduction & Methodology

High Level Findings

Conclusions &Recommendations

Detailed Findings

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Objectives

• Assess support services currently in use - What do customersexpect from Oracle today? How well is Oracle meeting its customers’expectations?

• Characterize the market segments - What are the segments? Howare they different when it comes to support services?

• Develop model for “best practices” - What support services doOracle customers want Oracle to develop?

• Identify the right bundled of services -How can services bebundled to best satisfy groups of Oracle customers?

• Identify the gaps between current offering and customerrequirements - Where are the gaps in Oracle delivering at level of“best practices”?

• Propose solutions to fill gaps - What can Oracle do to become thebest service and support vendor?

Oracle asked Collaborative Marketing to conduct in-depth interviews withservice and support users to build insights into the following:

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Methodology

Project KickoffProject Kickoff

Oracle Internal InterviewsOracle Internal Interviews

Interviews with customers of competing vendors

Interviews with customers of competing vendors

Oracle Customer Interviews Oracle Customer Interviews

Weekly MeetingsWeekly Meetings

Synthesis and Analysis to form Recommendations

Synthesis and Analysis to form Recommendations

• Senior VP of Operations• Senior Director• Senior Manager• IT Director• Manager of Enterprise Data

Systems• Manager IT• Director of System

Administration• Team Leader• IS Manager• Application Manager• Senior DBA

Collaborative Marketing targeted senior levelindividuals who manage their companies’applications and databases. The titles of therespondents included:

Collaborative Marketing interviewed Oraclecustomers as well as customers of competingvendors to establish what best practices arefor support services

Collaborative used a qualitative(exploratory) approach to conducting thisresearch rather than a quantitative(deterministic) one with the goal ofsurfacing the key issues forunderstanding the Oracle SupportServices market. Once these issueshave been identified, quantitativeresearch can be designed to answerspecific questions. We used senioranalysts to conduct in-depth, open-endeddiscussions with high-level IT managersthat yielded insights that we would nothave found using quantitative research.

Research Methodology

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Why was qualitative research used?

Qualitative Research Quantitative ResearchMotive • Exploratory

• To identify issues and to define rightquestions

• For discovering underlying motivations,feelings, values, attitudes andperceptions

• Deterministic• To answer specific questions such as how

many? How much?

Who conducts theinterviews?

• Led by senior research analyst • Low level analyst or e-mail

What is the structure ofthe interview?

• Open ended discussions • Preset questions and defined surveyresponses

How deep are theinterviews go?

• In depth interviews • Quick, cursory interviews

What are the strengths? • Open to new insights (surprises)• Allows for refining of areas of

exploration as study progresses

• Completely representative• Statistically valid

What are the limitations? • Not statistically projectable• Small sample sizes

• Inflexible• Tests only established understandings and

hypotheses. May miss important insightsoutside of general hypothesis

• Relies upon asking the right questionsWhen is the projectcomplete?

• When our understanding of the issuesare such that we know how the nextinterviewee will answer questions beforewe ask them

• When sample size reached to deliverresults accurate to a per determined marginof error

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Respondent Profile

Gold 17%

Silver44%

Bronze39%

Oracle Customers

86%

Non-Oracle Customers

14%

Oracle vs. Competitor Mix

43 Oracle customers only

43 Oracle customers only

All Interviews

Database 60%

Application & Database

40%

Product Mix

40 Oracle customers only, excludes Oracle developers

Enterprise52%

Developer9%

General Business

39%

Respondent Company Size(Oracle customers)

Service Level Mix(Oracle customers)

Total of 51 interviews conducted

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General Business Enterprise

Database

Applicationsand Database

• Micro Media Systems• Industrial Computer• 1-800-BAR-NONE• American Medical Network• Lifeline Systems• Flir Systems• BBS Corp• Cattle Fax• Goodmark Foods• Brocade Communications• Bar Plan Insurance• Barth Electric Company• Charles Stark Draper Laboratories• Gallatin Steel Company

• Sperry Marine• MCI• UPS• Binney & Smith• British Telecom• Blue Cross Blue Shield Maine• Goldman Sachs• Hibernia Management & Development• Novartis• Axciom Corporation• Grummann Aerospace• Los Angeles Times-Mirror• American Stores• American Automobile Association• Russell Stover Candies• Time, Inc.

• Capital Metro• Attorney’s Liability Assurance Society• Billing Concepts• Great Lakes Pulp & Fiber

• Nova Scotia Power• Astra Merck • NAV Canada• BMC Software• NAV Canada• MNBA American Bank• US Steel• BMI• Biogen• Health Canada • GreatWest Life Annuity• Acclaim Entertainment• du Pont

Respondent Profile - breakdown by segment

Tools /Developers• InfoPower• Computer Systems• Bicron• IT Financial

Oracle Customers

CompetitorCustomers

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Deliverables

• Executive Presentation

• Written Report

• Interview Journal

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Roadmap

Introduction & MethodologyIntroduction & Methodology

High Level Findings

Conclusions &Recommendations

Detailed Findings

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What did we learn?

• Oracle is not meeting customer expectations forservice and support quality - customers’ high expectations leadto disappointments when not fulfilled

• There is a clear opportunity to sell additional supportservices

• Existing segmentation model doesn’t work - Enterpriseversus General Business and Database versus Application &Database are poor indicators of Oracle support needs

• A better way - Viewing customer needs together withcustomer capabilities is a better way to determine additionalsupport services requirements

Let’s take a closer look at segmentation

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Current segmentation model is a poor predictor of support services needs

There is very little correlation between current segments (productsand company size) and customer support bundle requirements

• Every time we believed that we had found the ‘right’ bundle of services basedupon company size or product, we found almost as many companies within thatsegment that needed a completely different bundle of support services

• It is difficult to determine how much outside Oracle help a company will needbased upon either the size of the company or the Oracle products the companyis using

• Segmenting by company size takes us only a part of the way there. It can beused to determine which customer probably wants more from Oracle SupportServices but it cannot be used to determine what that ‘more’ looks like - whichbundle is best suited for that customer

• Segmenting by product tells us that Oracle’s application & database customershave greater expectations from support services and are less satisfied with theirexperiences than Oracle database only customers. However this segmentationmodel sheds little light on what other services they need

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Proposed segmentation model - based upon customer needs

• Partnership Buyer• looking for strategic help

• wanting business and industry consulting

• Solution Buyer• looking for project-based technical help

• wanting to offload some responsibility

• Expertise Augmentation• looking for task specific technical help

• wanting help in between ‘expensive’consulting and telephone support

• Insurance Buyer• looking for the least help

• wanting to become more self-reliant

More Oracle HelpNeeded

We characterized four buyer types as follows:

There is a high correlation between customer needs/customer capabilities and their bundle requirements

Company’s Oracle Needs

Company’s Internal Oracle

Capabilities

Oracle Help NeededBundle Requirements

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Lets take a closer look at the four buyer types

Factors ofComparison

Insurance Buyer Expertise Augmentation Buyer Solution Buyer Partnership Buyer

High level • Most self-sufficient• Utilizes Oracle Support Services exclusively

to answer specific technical questions thatindividual hasn’t been able to solve onhis/her own

• Looking for help that falls between simpletechnical support and “expensive” onsiteconsulting

• Looking for a quick technical ‘shot in thearm’

• Willing to pay the price to haveconsultants on site all of the time

• Consultants provide a full array ofservices

• Looking

• Looking for strategic business andindustry knowledge

• Expecting to succeed or fail in partbased upon its decision to go withOracle

Internal Oraclecapabilities

• Has the technical breadth, depth andexperience to support themselves most of thetime

• Has small gap between needs andcapabilities

• Has larger gap between needs andcapabilities

• Looking for lots of outside help

• May or may not have gaps betweenneeds and capabilities

• Looking for lots of outside helpControl • Desires to maintain tight control

• Takes ownership of problems

• Unwilling to give up control• Wants to have own staff actively

involved/kept informed.• Wants knowledge to stay with company

after outside help leaves

• Often willing to give up control ofspecific project and or application

• Looks to offload some responsibility• May give reins entirely to consultant• Doesn’t want to be ‘the guy’ in all areas

• Unwilling to give up control,• Looks for partner.

Self-sufficiency • Most self sufficient• Calls technical support infrequently• Most active user of MetaLink• Keeps abreast of new releases and patch

information• Checks MetaLink before calling support• Checks TAR status on the WEB• Participates in user groups

• Less self-sufficient• Call support more frequently• Less active user of MetaLink

• Less self-sufficient• Call support more frequently• Onsite consultants often call support on

company’s behalf• Less active user of MetaLink

• Less self-sufficient• Call support more frequently• Less active user of MetaLink

Environment • Lots of safety nets• Lots of test servers• Mission critical and non-mission critical

• Has fewer safety nets• May be without test servers• Risks huge costs if system goes down• Probably running mission critical database

• Has fewer safety nets• May be without test servers• Risks huge costs if system goes down• Probably running mission critical

database

• Risk huge costs if system goes down• Probably running mission critical

database

Outside consultinghelp

• May have consultants for DBA.• These consultants used as virtual extensions

of staff - “Replaceable staff”• Does not desire to have Oracle come onsite

• Open to “consultant on demand”• Has likely used outside. Consultants on a

case-by-case basis

• Needs extends beyond task quick taskspecific help

• May have outside consultants on staff• Uses high value, high cost consultants

• May or may not have outsideconsultants on staff

Type of help • Little additional help desired• Some would drop Bronze support for

upgrades only were that an option

• Looks for technical help from Oracle• Desires task specific help• Augments expertise with outside services

for tasks and projects• Looks for help with specific problems at

specific times

• Looks for technical help from Oracle• Looks for help on a project basis• Not looking for help with a piece of the

solution. Instead wants help with thewhole thing

• “Build me a solution”

• Looks for strategic help from Oracle• Looks for help with how to best use

Oracle to run their business.

Timing of help • Not applicable • Near-term • Medium Term • Long-termExample of questioncustomer asks

• “Where should I go to find out about thestatus of a TAR?”

• “We are about to do an upgrade of SAP.Does Oracle offer a have experts to helpus immediately should we run intotrouble?”

• My databases is growing very quickly,what can you suggest?

• How do I consolidate these servers?

• What are companies in industries likeme doing?

• What data recovery solution should I gowith?

Value to OracleSupport Services

• Oracle will get better return on selling newservices to other buyer types first

• Least taxing of Oracles Support Services

• Best opportunity for Oracle to selladditional, fixed price, short-term supportservices

• Best opportunity to sell more traditionalproject-based ‘consulting services’

• Members of the ‘Oracle Family’• Close relationship• First shot at fulfilling needs for new

products and services

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Examples of the four buyer types

Insurance Buyers want little help beyond what they get today

“We do not call Oracle support often. We are pretty much self-sufficient over here. We do not want a more proactiveOracle. We want our calls to support to be short and sweet.” Scott Withers, Blue Shield Blue Cross Maine

Expertise Augmentation Buyers want help with specific problems

“I would have liked Oracle to have been more involved with installation & upgrade….I would have liked to have been ableto call into a “Install group” or an “Upgrade group” — people who would know ahead of time the types of problems that Iwill likely run into.” Richard Dahlstedt, Acclaim Entertainment

“We want ‘consultants on demand’ to help us at particular planned times. For example, we recently upgraded our SAPapplication to the top flight SAP and we wanted experts from Oracle and then SAP onsite to be there in case things wentwrong. We want that Oracle person there to avoid a crisis and we are willing to pay for that.” Allan Kerley, HiberniaManagement & Development Corporation

Solution Buyer want help either for a project or on a ongoing basis

“We have had Oracle consultants onsite for the past two plus years. They provide a full array of services from developingthe application to preparing the system for deployment to optimization to resolving open TARs. We are willing to pay tohave them here all of the time.” David Sherwin, US Steel

Partnership Buyers want to a have strong, close relationship with Oracle

“I would like to better understand their future plans and how their plans will influence what we decide to do. For example,we need help from Oracle to develop a good migration plan from 8.0 to 8i. I want them very involved and aware of ourbusiness. I expect Oracle to become accountable for our business. I expect Oracle to help us increase availability andimprove performance and dependability.” Tim Donar, Axciom, Corporation

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Expertise Augmentation

30%

Solution 14%

Partnership14%

Insurance42%

43 Oracle customers

Buyer Types

Segment UnfulfilledNeed

FulfilledNeed

Total

InsuranceBuyer

4 14 18

ExpertiseAugmentationBuyer

7 4 11

SolutionBuyer

4 4 8

PartnershipBuyer

6 0 6

Annual monitoring is important because customers’ needs do shift

How did the study participants break out against the new segments?

Numbers represent the distribution of 43 responses

Half of respondents need more help with their Oracle products

A big opportunity exists for Oracle to sell additional support services

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How does each study participants breakout against the new segments?

EnterpriseDatabase only

EnterpriseApplication &Database

General BusinessDatabase only

General BusinessApplication &Database

Developer

InsuranceBuyer

• Novartis• Sperry Marine• British Telecom• Blue Cross / Blue

Shield of Maine

• BMC Software• MBNA• Biogen

• Charles StarkDraper Laboratories

• 1-800-Bar None• Micro Media

Systems• BBS Corporation• Broacade

Communications• Bar Plan Insurance• Barth Electric

• Attorney’s LiabilityAssurance Society

• InfoPower• Enesco• Bicron

ExpertiseAugmentationBuyer

• GrummanAerospaceCorporation

• HiberniaManagement &Developmentcorporation

• Goldman Sachs

• Astra Merck• Acclaim

Entertainment

• Industrial Computer• Cattlefax• Goodmark Foods• Lifeline Systems

• Great Lakes Pulp &Fiber

• Billing Concepts• Capital Metro

• Computer Systems

Solution Buyer • Health Canada• Binney & Smith

• NAV Canada• US Steel• BMI

• Flir Systems

PartnershipBuyer

• MCI• Axciom

Corporation• UPS

• Greatwest LifeAnnuity

• Nova Scotia PowerCorporation

• American MedicalNetwork

Existing Segmentation Model

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It is difficult to determine the amount and type of support a customer desires using theexisting segmentation model

It is difficult to determine the amount and type of support a customer desires using theexisting segmentation model

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Best support practices are relative to buyer type

Best Practices InsuranceBuyer

ExpertiseAugmentation

Buyer

SolutionBuyer

PartnershipBuyer

Rich Web site High High Medium HighSelf-help tools High Medium Low MediumStrong user group community High Medium Low MediumSeamless support High High High HighDe-escalation of telephone support High Medium Low MediumAnnual reviews Low High High HighCursory needs analysis Low High Medium MediumDetailed needs analysis Low Low High HighActive customer management Low Medium Medium HighOnsite presence Low Medium High HighOracle customer alignment Low Low Low HighMultiple vendor leader Low Low High HighBusiness expertise Low Low Medium HighIndustry expertise Low Low Medium High

Importance of support practices to buyer type

Less work Lots of work

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What bundle of services should Oracle sell to its customers?

Bundle InsuranceBuyer

ExpertiseAugmentation

Buyer

SolutionBuyer

PartnershipBuyer

Oracle MetalsBronze High High Low LowSilver High High High HighGold Low High High HighSolution Support Centers Low Low Low High

Additional SupportServices Offerings

Support Web Site High High Medium HighEducation of Offerings Medium High High HighAnnual Remote Reviews Medium High Low LowAnnual Onsite Reviews Low Low High HighCursory Needs Analysis Low High Medium MediumDetailed Needs Analysis Low Low High HighRemote Personalized Support Low High Low LowOnsite Personalized Support Low High High HighInstallation Support Low High Low MediumUpgrade Support Low High Low MediumPerformance Tuning Low High Medium MediumRemote DBA Low Medium High MediumBest Practices Roadmap Low Low Medium HighDaily Operations Manager Low Low High LowProject-based Consulting Low Low High High

This segmentation model can predict which bundle of services a customer is likely to want from OracleThis segmentation model can predict which bundle of services a customer is likely to want from Oracle

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What to ask to determine what buyer type a customer belong to?

1) How frequently does your staff call Oracle technicalsupport?

¨ Never¨ Rarely¨ Occasionally¨ Frequently

2) Besides telephone-based technical support, whatadditional type of assistance might you be interested inreceiving from the Oracle Support Services Division?(check all that apply)

¨ None¨ Technical expertise (onsite staffing, contracting

services i.e. We know what new product we wantto install, help us install it most effectively.)

¨ Business expertise (i.e. We need help withstrategic planning for business growth.)

¨ Industry expertise (i.e. We are a financial servicescompany, help us figure out how to gain acompetitive advantage using Oracle.)

3) Would you want Oracle to come onsite as an additionaltype of assistance?

¨ No, it’s very unlikely¨ Maybe for task specific situations (example: for

Technical Support for a product upgrade)¨ Yes, frequently

4) When do you use outside technical consultants?¨ Never¨ Staff augmentation¨ Task based¨ Project based¨ Turn-key solutions

5) Are you currently using Oracle consultants?¨ No¨ Yes

6) If you could choose, who would you want to own theresponsibility for the operations of your Oracle databaseand/or Oracle applications?

¨ 100% In house¨ 10% Outsourced¨ 50% Outsourced¨ 75% Outsourced¨ 100% Outsourced

7) Are Oracle products mission critical to your business?¨ No¨ Yes

8) Do you have any Test Servers available or do you upgradedirectly on to production machines?

¨ Test servers first¨ Production machines only

9) Are you anticipating your Oracle Support needs changingover the next 6 months?

¨ No¨ Yes, because:

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Roadmap

Introduction & MethodologyIntroduction & Methodology

High Level Findings

Conclusions &Recommendations

Detailed Findings

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Where is Oracle exceeding expectations?

• Responsiveness to mission critical problems• Web site - MetaLink• Skill level of Oracle consultants• Reputation of Oracle’s database products• Oracle support representatives when onsite

(FSRs and Technical personnel)• Australian technical phone support

Oracle receives high praises from its customers for:

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Weak Strong

Strong

Weak

PerceivedProductQuality

Perceived Service & Support Quality

SAP

Peoplesoft

Microsoft

Oracle databaseIBM

BAAN

JD Edwards

Dell

Informix

Oracle’s database product quality is perceived to be higher than its service & support quality

Oracle application

Sun

Customer’s perceptions

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Where are customer expectations not being met?

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Inconsistent technical support

Lengthy resolution time

Missing information about new services and products

No one managing relationship

Basic information about customers is not being captured

Continual Oracle Reorganization

Exasperating contract renewal process

Continual TAR status checking

Eventual level of service

Technical support response design

Confusing distribution of documentation

Weak Oracle support of user groups

De-supporting versions too quickly

Let’s take a closer look at these key issues

Missing notification of upgrades and patches

Why do I learn that there is an important fix only after I call tech support withthe problem?Why do I have to talk to multiple people, many who lack the skills tosupport me before I get help?Why does it take so long to get Oracle to figure out my problem? Theymust have seen this problem before.Why is there no one keeping me informed about what Oracle is doing? Ishouldn’t have to read the rags to find out.I only see someone from Oracle here when they are trying to sell mesomething. What about finding out about my needs first?I do not expect to have to give all of my contact and account informationeach time I call in for technical support.

It seems there is always a different group or Oracle person calling on me

What is wrong with those people? They get everything wrong - name,license, address,and account size

My staff spends half of their time checking on outstanding TARs. Whycan’t Oracle follow up with us?

My problems don’t get answered in a timely manner.

Why is there no “Install” group? If I do not know specifically what myproblem is, it is tough to get help from Oracle.

Why does all mail come through me without the name of the person whorequested the information on it?

Why doesn’t Oracle help match me up with users like myself?

Why is Oracle forcing us to make changes faster than we would like?

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Send out target e-mail based upon customer profile

Inconsistent technical support

Lengthy resolution time

Missing information about new services and products

No one managing relationship

Basic information about customers is not being captured

Continual Oracle Reorganization

Exasperating contract renewal process

Continual TAR status checking

Eventual Level of service

Technical support response design

Confusing distribution of documentation

Weak Oracle support of user groups

De-supporting versions too quickly

Action Items- How Oracle can close the gaps

Missing notification of upgrades and patches

No action required-very few missed expectations here

Capture the name of the person who requested information

Market user groups - help bring like peopletogether

No action required as few people raised this concern

Market expert offerings - these people want more than techsupport but don’t know about the Expert offerings

Be proactive, many don’t know they can check status on the Web

Improve training and develop self-monitoring program

Make invisible to customer

Make it universally accessible within Oracle

Have more contact with customer than just annual service renewals

Manage expectations, let customers know why it is taking time

Reduce escalation by tracking customer skill levels

Let your customers know about what might be important to them

Confidential

• Basic Information about the customer is not beingcapturedCustomers are amazed that they are being asked to supplybasic information in addition to name and CSI number suchas telephone number, fax number, e-mail address, mailingaddress each time the call support. Customers are dismayedby how little Oracle seems to use its own databasetechnology - solution. Customers expect Oracle to know whatOracle products their company has purchased.

• Exasperating contract renewal processCustomers are exasperated with the process. They describenumerous examples of incorrect licenses, incorrect names,misspelled names, wrong sum, and wrong dates.

• Confusing distribution of documentationCustomers complain that they receive Oracle material withno names associated with it. They often have no idea whichDBA within their company requested the information.

Fundamental

Expected from Oracle

Best Practices

Fundamental Gaps

Customers are surprised that they encounter these problems. They considersolving these problems as fundamental.

Customers are surprised that they encounter these problems. They considersolving these problems as fundamental.

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• Customer Account InformationCustomers expect Oracle to capture information abouttheir staffs. Who is procurement, who is management,who is database administration, who is theapplications administrator.

• Missing notification of upgrades and patchesCustomers resent being told that a solution exists onlyafter calling Oracle with a problem.

• Missing information about new products andservicesCustomers feel they are out of the loop. They wouldlike to be kept informed about new products andservices that relate to their existing infrastructure.

• Continual TAR status checkingCustomers fear their TAR would be abandonedwithout their continuous follow-up. They want Oracleto proactively provide status updates.Fundamental

Expected from Oracle

Best Practices

Gaps in Oracle Support Service offerings that customers expect Oracle to have solved

Customers view Oracle as a leading technology provider with one of the best-of-kind products. They set the bar for support services just as high.

Customers view Oracle as a leading technology provider with one of the best-of-kind products. They set the bar for support services just as high.

Bestpracticesdepend onBuyer Type

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Based on:19 General Business Interviews22 Enterprise Interviews

General Business Enterprise

General Profile• Have history with Oracle• Have relationship with

other vendors compar-able to Oracle

• More onsite expertise

General Profile• Likely to have less

history with Oracle• May not have

relationships with othervendors of comparablesize

How do they differ fromGeneral business?

• More adamant aboutwanting to be keptbetter informed

• More likely to expectOracle to havefundamental &“expected from Oracle”problems resolved

How do they differ fromEnterprise?• Generally have lower

expectation for supportservice because a) theyknow they are small b)no other vendor tocompare with Oracle

• More likely to wantOracle to help with siteperformance tuning

How do Enterprise and General Business Customers Differ?

Enterprise customer expectations are shaped by Oracle’s position and their experienceswith other vendors.

Enterprise customers are less forgiving of what theyview as Oracle’s poor customer relationshipmanagement than are GB customers.

Enterprise customers are less forgiving of what theyview as Oracle’s poor customer relationshipmanagement than are GB customers.

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Oracle continues toreorganize

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Technical Support• With few exceptions, not

developing individualrelationships withcustomers

• Customers do not expectthem to manage thisrelationship

Contract Renewals• Often the only Oracle representative

a customer hears from over thecourse of a year or two

• Customers complain of ineptitude

Respondents felt that no one is managing the relationship from Oracle’s side

Product Sales• Only visits when trying to

make a sale• Customers complain that

they don’t hear customer’sneeds

• Not there for accountmanagement

Consulting• When on site, clearly the

liaison between thecompany and Oracle

• However, when contract isover, relationship betweenOracle and customerdissolves

Field Service Representatives• Not enough of them• Only one of the 43 Oracle

customers interviewed had evermet an FSR

• When customers get called by Oracle, the calls come from many different people from different divisionswithin Oracle.

• More critical for enterprise than general business, but still important to both groups.

• When customers get called by Oracle, the calls come from many different people from different divisionswithin Oracle.

• More critical for enterprise than general business, but still important to both groups.

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Oracle applications & database customers are less satisfied and less patient with technicalsupport than database customers.

Database

Applications& Database

General Profile

• Either less demandingor believe that they arebeing well served orboth

Problems they see withOracle Support Services

• Fewer problems raised• More satisfied that

Oracle’s technical supportitself is functioning as itshould be

General Profile• Chose Oracle for both

applications anddatabases on the beliefthat there would befewer problems

Problems they see withOracle Support Services• Are less satisfied than

database only• Less patient/ i.e., more

frustrated when thingsdon’t work well

• Partly due to productimmaturity application

Based on:15 Database interviews24 Application & database interviews

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There was no significant difference between how thetwo groups within the segment responded toquestions related to greater Oracle involvement.

There was no significant difference between how thetwo groups within the segment responded toquestions related to greater Oracle involvement.

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Enterprise

General Business

Where do you want more from Oracle support services? (application & database versus database only)

Where do you want more from Oracle support services? (Enterprise versus General Business)

Segmentation by size and or product does not serve as a good predictor of where acustomer would want more help from Oracle.

Contrasting customer support services desires bycompany size is slightly more telling than by producttype. For the issues customers care about most, thetwo groups responded very similarly.

Contrasting customer support services desires bycompany size is slightly more telling than by producttype. For the issues customers care about most, thetwo groups responded very similarly.

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Lack of awareness of Oracle’s support capabilities

Customers don’t know about Oracle's servicesoutside of the metals and MetaLink

• Only 2 out of 43 Oracle customers interviewed werefamiliar with other Oracle Support Services offerings(OracleExpertise & OracleLifecycle)

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Canadian customers appear to be getting better support than US customers

• Respondents appear to know who to call for help (by name).• They are better at navigating the Oracle organization to get what

they need.• Oracle Canada appears to be more organizationally stable.• Canadian customers believe that Oracle’s Canadian Web site is not

as current as its U.S. site. This adds to their perception that supportis better in the U.S. than in Canada.

(Based upon interviews with four Canadian customers)

Ironically, Canadian customers believe that their UScounterparts get better support than they are getting

Ironically, Canadian customers believe that their UScounterparts get better support than they are getting

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Roadmap

Introduction & MethodologyIntroduction & Methodology

High Level Findings

Conclusions &Recommendations

Detailed Findings

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Recommendation for Oracle Support Servicessegmenting by buyer types more effectively matchescustomers with support bundles. Buyer types thatemerged were (1) insurance, (2) expertise augmentation,(3) solution and (4) partnership.

Customers Aren’t Awareof Support ServicesOutside of the Metals

Customers Aren’t Awareof Support ServicesOutside of the Metals

Big Opportunity Existsto Sell New SupportServices

Big Opportunity Existsto Sell New SupportServices

Current SegmentationModel Doesn’t Workfor Support Services

Current SegmentationModel Doesn’t Workfor Support Services

Conclusions and Recommendations

Customer Have HighExpectations that FeelOracle is Not Meeting

Customer Have HighExpectations that FeelOracle is Not Meeting

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Segmentation

Recommendations for Oracle Support Services

• Step 1 - Fix the support and services fundamentals that customers expect from all companies. Fundamentalsinclude (1)accurate customer registration information, (2) efficient contract renewal, and (3) getting the rightinformation into the right hands.

• Step 2 - Substantiate Oracle’s advantageous positioning by delivering what customers expect from Oracle SupportServices. This includes (1)detailed knowledge of the customer account, (2) notification of new patches andupgrades, (3) new product and service information, and (4) a proactive TAR reporting system.

• Oracle Customer Service needs to show up immediately after the license sale and annually thereafter.• Implement a CRM capability that will insulate customers from Oracle’s structural and personnel changes.• Advance and promote Expert Packages and Expert Online (remote dba)• Segment by buyer types to more effectively match customers to support bundles. Buyer types that emerged were

(1) insurance, (2) expertise augmentation, (3) solution and (4) partnership.

• Customers had difficulty separating onsite Support Services fromConsulting.

• Most respondents were unaware of any Oracle services beyondthe Metals and MetaLink.

• Many respondents believe that Oracle’s ability to deliversatisfaction has been hurt by Oracle’s organizational turbulence

• Customers had difficulty separating onsite Support Services fromConsulting.

• Most respondents were unaware of any Oracle services beyondthe Metals and MetaLink.

• Many respondents believe that Oracle’s ability to deliversatisfaction has been hurt by Oracle’s organizational turbulence

• There is a strong opportunity for Oracle to sell additional supportservices to its customers

• Customers want help from Oracle beyond technical telephone support• Buyer types are a good indicator of which bundles customer will prize.

• There is a strong opportunity for Oracle to sell additional supportservices to its customers

• Customers want help from Oracle beyond technical telephone support• Buyer types are a good indicator of which bundles customer will prize.

• Current segmentation (Enterprise vs. General Business & Database vs.application) does not predict how much Oracle help they will need fromsupport services or the most suitable service bundle.

• Oracle must learn more about its customers’ capabilities in order to matchcompanies with bundles

• Enterprise customers expressed higher dissatisfaction with Oracle’s CRMcapabilities than did General Business.

• Customers using both apps and database are more demanding.

• Current segmentation (Enterprise vs. General Business & Database vs.application) does not predict how much Oracle help they will need fromsupport services or the most suitable service bundle.

• Oracle must learn more about its customers’ capabilities in order to matchcompanies with bundles

• Enterprise customers expressed higher dissatisfaction with Oracle’s CRMcapabilities than did General Business.

• Customers using both apps and database are more demanding.

Taking a closer look at conclusions and recommendations

• Oracle’s excellent positioning is both a blessing and a cursebecause customers’ high expectations lead to disappointment whennot fulfilled.

• Customers are most frustrated by issues that they expect acompany like Oracle to have solved.

• Oracle is viewed as absent at critical stages in the relationship,especially to enterprise customers. Customers expect much morecontact with Oracle Support Services than they currently receive.

• Oracle’s excellent positioning is both a blessing and a cursebecause customers’ high expectations lead to disappointment whennot fulfilled.

• Customers are most frustrated by issues that they expect acompany like Oracle to have solved.

• Oracle is viewed as absent at critical stages in the relationship,especially to enterprise customers. Customers expect much morecontact with Oracle Support Services than they currently receive.

Customers’ Knowledge of ServicesOpportunity to bundle services

Customer Expectations

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Next Steps - Selling additional services to Oracle customers based upon buyer typesegmentation

¬ Develop survey questionnaire to be used to segment existing customer base

¬ Develop response analysis model to convert survey responses into buyer types

¬ Distribute survey questionnaire by E-mail, fax or Web to categorize Oracle customers by buyertype

• Customers are willing to share this information with Oracle, especially if they know it will lead to bettertailored services for them

¬ Categorize customers by buyer types

¬ Annual monitoring/review will be important because customer needs do shift• New application suite/change in direction

• Staff turnover: losing a key individual can change their requirements from being an insurance buyer tobeing an expertise augmentation buyer

¬ Sell according to buyer type• Insurance buyers

– Educate them to better help themselves

– Keep informed about new products and services

• Expertise Augmentation Buyers– Second detailed survey to determine specific help required

– Introduce to expertise offerings

• Solution Buyers– Onsite needs analysis

– Demonstrate Oracle’s capabilities and strengths

• Partnership Buyers– Determine if partnership has value to Oracle

– If yes, onsite presence required

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Appendix

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Contact Information

Company Industry Name Title Phone #Oracle General BusinessCustomers

1-800-BAR-none Services (loan consolidator) Scott Crouse IT Director (408) 501-1405

American Medical Network Service James Kraugh Senior Manager (407) 679-0304

Attorney’s LiabilityAssurance Society

Service (Legal) Tom Myers (312) 697-6983

Bar Plan Insurance Insurance Tom Burch Director of MIS 314-965-3333

Barth Electric Co. Utilitities Mike Thomas IS Manager 317-924-6226

BBS Consulting Engineers /Waste Management Design

Don Fisher IS Manager 614/888-3100

Billing Concepts Telecom Biff Coons UNIX System Administrator /Oracle DBA

210-949-7527

Brocade Communications Fiber Channel Switches Steve Rathod Systems Analyst 408-487-8115

Capital Metro Transportation (government) Rob Turner Manager of IS (303) 694-0333

Cattlefax Financial Dave Robson/Ross Simpson Project Leader/MIS Manager (303) 694-0333

Charles Stark DraperLaboratories

R&D Steve Sledjeski Senior Manager (617) 258-2754

Flir Systems Manufacturer: ImagingSystems

George Lester Senior SystemsAdministrator

503-372-6369

Goodmark Foods Food Manufaacturer Bob Anderson Systems and ProgrammingManager

919-80-9940

Great Lakes Pulp & Fiber Manufacturing (paper) Jay D’Auria DBA 906-864-9130

Industrial Computer Hi-Tech Keith Hinckle/Mark Lovett DatabaseAdministrator/Manager

619-677-0877

Lifeline Systems Personal EmergencyResponse

Mary Bonish / Mike Boligan : Manager Enterprise DataSystems / DBA

617-679-1047

Micro Media Systems Software Developers Jennifer DeYoung Database Manager (605) 357-0400

Oracle Enterprise CustomersAcclaim Entertainment Entertainment Richard Dahlstedt Manager of Programming

Services and SystemAdministration

516 656-5000

Acxiom Corporation Data warehousing for creditcard companies

Tim Donar Senior Manager IT (501) 336-1000

Astra Merck Pharmaceuticals Kevin Loney/Steve Rhody Director/Application Manager (610) 695-1000/1363

Binney & Smith Manufacturer (Toys) Jim Brown Manager of Data Operations/ Data Resources

610-253-6271 x4433

Biogen Pharmaceuticals Dan Madden Application Manager 617/679-3575

Blue Cross Blue Shield ofMaine

Healthcare Scott Withers Team Leader Data ServicesGroup

207-822-7613

BMC Software Government agency that hasbeen spun out

John Smith Manager (713) 918-8800

British Telecom / MCI Telecom Mike Spak Senior DBA 408-922-6275

Broadcast MusicIncorporated (BMI)

Entertainment Bob Barone Sr. Vice PresidentOperations / IT

615/401-2000

Goldman Sachs Finance Steve Constantino Vice President 212-902-3194

Greatwest Life Annuity Financial Services Alan Bowden Associate Manager ofSystems

(303) 689-3064

Grummann Aerospace Manufacturing (Aerospace) Pat Zinn Software Engineer Specialist (407) 752-8421

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Contact Information

Company Industry Name Title Phone #Oracle Enterprise Customers

Novartis Chemicals Karen Link/Gretchen Fulner Senior DBA/DBA (336) 632-7723 & (336) 294-5677

Sperry Marine Marine technology andmanufacturing

Phil Goodwill Manager IT 804 974-2000

UPS Shipping Rich Clark Senior DatabaseAdministrator

502-329-3000

US Steel Manufacturing : David Sherwin Director of the OrderFulfillment Project

412-433-5438

DevelopersBicron Corporation Software Developer Joe Kastelei Oracle Administrator

(consultant to Bicron and 4other companies)

440-248-7400

Computer Systems Software Developer Holm Dietz Project Manager 559-431-8100

InfoPower Software Developer Dan Niswander Senior Developer (616) 530-5550

Enesco Software Developer Matt Capuano Lead Designer 407-254-4122

Oracle EmployeesOracle Hi-Tech Arnold Espos Product Manager Worldwide

Customer Support Services650-506-5816

Oracle Hi-Tech Faith Velshow Sr. Product Manager 650-506-7000

Oracle Hi-Tech Grant Brigden Manager, Global SupportField Marketing-Canada

650-506-7000

Oracle Hi-Tech Jeanna Fox EMEA Services MarketingManager

+44 (0)1344-860066

Oracle Hi-Tech Kim Boyle Product Manager 650-506-7000

Oracle Hi-Tech Mojdeh Eskandari Senior Director Marketingand Product ManagementOracle Support Services

650-506-4856

Oracle Hi-Tech Nate Rhodes Sr. Director, Support FieldMarketing

650-506-7000

Oracle Hi-Tech Rebecca Tom Senior Product ManagerOracle Support Services

650-506-4772

Oracle Hi-Tech Robert Pearson Director, ProductManagement WorldwideCustomer Support Services

510-733-9707

Oracle Hi-Tech Scott Gaw Senior Product ManagerOracle Support Services

650-506-0597

Oracle Hi-Tech Shera Mikelson Program Director, OSSs 650-607-0547

Oracle Hi-Tech Steven Donovan Product ManagementConsultant Oracle SupportServices

650-506-0784

Competitor’s CustomersGeneral Business - Sybase user migrating to Oracle. Gallatin Steel Company Manufacturing Vernon Harrison 606 567-3139

Enterprise JD Edwards Reference Account American AutomotiveAssociation

Insurance Dan Johannes Director of SystemsAdministration

407 444-7000

EnterprisePeopleSoft reference account

American Stores Retail Tom Lauritzen Vice President PayrollServices, Technical ProjectManager for ChangingTechnology

602-547-5080

EnterpriseIBM BD2 Reference Account

E.I. du Pont deNemours/ComputerSelection Corporation

Hi-Tech Terry Boyd Manager of GlobalComputing &Telecommunication Service

302 391 6221

EnterpriseSybase Reference Account

Los Angeles Times Mirror Publishing Tom Elsesser Advertising SystemsManager

213-237-3700

EnterpriseBaan Reference Account

Russell Stover Candies Consumer GoodsManufacturing

Robert Maach VP Operations 816-855-2293

EnterprisePeopleSoft reference account

Time, Inc Publishing Leslie Schlesinger Assistant Director, EmployeeSystems

212-522-2953

Developer Bankers Trust/IT Financial Finance Terry Smith Product Manager 212 250-9282