Oracle Hosting Services Providers (OHSP) and Oracle

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Oracle Hosting Services Providers (OHSP)and
Oracle Outsourcing Services

• Kirk Williams
• Frontier Consulting, Inc.
• Senior Oracle Consultant

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Vision Statement

• Reduce support costs of Applications and become
  Independent of internal IS staffing (DBAs).
• Outsource hardware expenses and support of
  servers along with Managed Disaster Recovery.

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• Core Services Outsourcing
• E-Business Suite - Managed Hosting
• Core Services Corporation
• June 2003

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Goal and Objective

• Introduction
• Win Win Objective Customer and OHSP
• Bottom Line Impact of Financial Statements
• More Bang for the Buck
• Reduce Dependence of Internal Information Systems
  Staff

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Partners Working With Oracle Outsourcing

• Experience can pay off when working with Oracle
  Outsourcing with Implementations
• Issues working through a Migration Partners can
  focus on Project Consulting
• Partners can relieve the Consulting Resource
  Burden

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FAQs for OHSPs

• What is an Oracle Hosted Service Provider (OHSP)?
  What is an ASP?
• An Oracle Hosted Service Provider (OHSP) is a
  customer facing entity providing access to
  business applications, functions or processes on
  a subscriber basis from a centrally managed
  facility.
• An Application Service Provider (ASP) delivers
  advanced data center services to OHSPs by
  delivering the "power and ping", i.e., network
  components, hardware servers, security
  frameworks, and Oracle DBA services and often
  acts as second line support for the OHSP.

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• 2. How does OHSPs define an Online Service?
• OHSPs can deliver our E-Business Suite of
  Applications over the internet as an Online
  Service. We deliver Internet-enabled applications
  faster, more economically, and more reliably than
  a customer implementing offline.
• A complete and simple Online Service includes
  Oracle Applications, Implementation, Oracle
  Education, Oracle Support and Oracle Hosting.

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Cost Model
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Lowest TCO

• The average payback for an outsourced solution
  was 1.33 years.

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• 3. What are OHSPs Online Services comprised of?
• Not only are Oracle Applications and Oracle
  Hosting included, but Implementation, Oracle
  Education, and Oracle Support can be purchased
  for a complete service.

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In As Little As Five Days

• Features 90 pre-configured Oracle-only
  applications
• and bundled services designed to be implemented
• in five business days or less. Appropriate for
  customers with
• Single Organization
• Single Set of Books
• Single Reporting Currency
• No Custom Interfaces
• Fixed Workflow Settings
• Pre-defined Chart of Accounts
• Single Language
• Pre-defined Reports

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30-100 Days

• Moderately alterable workflow settings on
  Oracle-only applications and designed to be
  implemented in approximately 30-100 business
  days. Appropriate for
  customers with
• Single Organization
• Single Set of Books
• Single Reporting Currency
• No Custom Interfaces
• Fixed Workflow Settings
• Single Language

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100 Days

• Can be altered considerably and may include
  non-Oracle applications. Provides the highest
  level of flexibility and customization.
  Appropriate for customers with
• Multiple Organizations
• Multiple Set of Books
• Multiple Reporting Currencies
• Customized Reporting
• Multiple Languages
• Global Consolidation Support
• Integration with Non-oracle Applications

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Oracle Support

• Telephone Assistance available 24x7 (Global
  Toll-free Basis)
• Monitoring and Software Patches
• Electronic Services
• Oracle MetaLinkSM
• Online Support Offers rapid solutions to
  problems, patches, and general application
  support)
• Oracle Guarantee Any customer not satisfied for
  any reason during a given month will receive a
  20 credit for that month's hosting fees

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Oracle Education

• Includes comprehensive training,
  which varies by offering. May
  include
• On-site Training done by Oracle University
  instructors
• Variety of titles from Oracle's extensive library
  of technology-based training CDs
• Oracle TutorTM (Tutorial Software)

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• 4. What is OHSPs Online Strategy?
• OHSPs online strategy is to deliver enterprise
  applications faster, more economically, and more
  reliably than custom solutions traditionally
  implemented in-house. The software industry is
  clearly moving from an off-line, assemble
  yourself model, to an online service model. In
  the near future, Oracle anticipates most business
  applications will be purchased and implemented
  online.

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• 5. What are the Benefits of using OHSPs Online
  Services?
• Complete OHSPs provide an end-to-end,
  world-class e-business technology solution
  including Oracle Applications, Implementation,
  Oracle Support, Oracle Education and Oracle
  Hosting.
• Simple - OHSPs provide the technical staff and
  hardware, and manages the applications, upgrades
  and servers. Through its professionally managed
  sites, Oracle drives the day-to-day tasks of the
  IT infrastructure, thereby freeing customers to
  focus on strategic business issues and core
  competencies.

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• Fast - OHSPs get customers to market quickly and
  reliably.
• Support OHSP customers gain efficiency in
  Support Services. When Oracles online customers
  call in with problems, there is no standing in
  line while problems are reproduced, traced, and
  finally fixed. Instead, Oracle Support can go
  online and view which patch level the customer is
  on, where the problem is, and fix it in
  real-time.
• Attractively Priced - OHSPs provide ready access
  to industry-leading applications, with fewer IT
  issues, and with a decreased total cost of
  traditional deployment.

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Core Services An Oracle Applications Services
Provider

• 100 Oracle Applications Related Products
• Sun Microsystems
• EMC
• Cisco
• Checkpoint
• Optio
• Vertex
• Clear Orbit Bar Coding
• 11 Years Oracle Partner
• 59 Oracle Implementations completed
• 52 Oracle Applications Hosting Customer

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Deployed! 50 Customers
EMEA 5 Apps
NORTH AMERICA 42 Apps
ASIA PACIFIC 3 Apps
LATIN AMERICA 2 Apps
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Core provides delivery of enterprise applications
and technology through a network hosted in a
professionally managed environment.

• Data Center Locations
• Union, New Jersey
• Offices
• Union, New Jersey
• Chicago, Illinois
• Houston, Texas
• Orlando, Florida
• Beijing, China

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Core Services Selected by Oracle Corporation

• Core Services is one of only 32 Oracle Authorized
  Service Providers. Hand picked and approved by
  Oracle Corporation, the designation is Oracles
  highest partnership tier for applications.
• Oracle Awarded Core Services Best Overall for
  the Eastern US for year 2001.

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Why Host with Core? TAR resolutions with Core
Development

• Many times, Oracle Development requires
  additional information for troubleshooting
  purposes. These requests for information from
  Oracle Development are too often incomplete and
  fragmented.
• Core developers are versed at root cause analysis
  and can provide detailed bug descriptions to
  Oracle Development for faster turn-around times
  on most critical issues.
• Core has direct lines to many Oracle Developers.
  Core has worked hand and hand with Oracle
  Development solving issues for many customers. In
  fact, Core written code has helped Oracle
  Development solve customer issues.

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Core vs. Oracle Outsourcing

• Since we left oracle.com and are now with Core
  Services Core has shown us many improvements to
  application setups and we are now reaping the
  benefits of the system we thought we purchased
  all for a fraction of the monthly price.
• Don Stiers Power Medical Interventions

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Scope of Services Applications Management

• Installation
• Patch Application and Management with portal for
  customer inquiry
• Patch Validation and Test in conjunction with
  Customer
• Problem Reproduction and Diagnosis
• Concurrent Manager Management and Configuration
• Mange Applications Object Library (AOL)
• Manage Change Control Process
• Manage Printer Setup
• Software Release Upgrade Planning
• Oracle TAR Monitor and Resolution
• Application Bug Alerts

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6. What are Oracles Hosting Services?

• Availability Services
• Provision Maintenance of Server Hardware
• Uninterrupted Power Source (UPS)
• Multiple Internet Connections
• Raid
• 24x7x365 Monitoring

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• Capacity Management Services
• CPU Memory Utilization Monitoring
• Database Utilization Monitoring
• Database Space Allocation Configuration
• Network Bandwidth Monitoring

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• Security Services
• Defined User Account Creation
• Controlled Room, Root, D.B.and FTP Access
• Triple DES Encryption
• Firewall
• System Database Performance Tuning
• Automatic Notification of System Availability
  Problems

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• Production Management Services
• Scheduling Managing Database Backups
• Log File Rotation Analysis
• Aging of Reports and Logs
• Ad Hoc Restoration

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• 7. How much do OHSPs Online Services cost? What
  are the factors that determine the range in
  prices, i.e., implementation timeframes,
  customization?
• OHSPs Online Service pricing includes the
  cost of the Applications, Consulting, Support,
  Education and Hosting. A general price breakdown
  for Online Services is as follows

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• Application The application is owned by the
  customer. There are two types of licenses
  Perpetual or Term. Pricing is also dependent on
  the selected application(s). For specific
  application pricing, please visit the Oracle
  Store at http//www.oraclestore.com
• Support Support is 22 of the List License
  fee/year.

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• Education Education is a fixed price, depending
  upon the application.
• Consulting Consulting fees are dependent upon
  the implementation.
• Hosting Hosting is approximately 5 of
  license/month with a 12000 monthly minimum.

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• 8. How long will it take to go live with OHSPs
  Online Applications?
• Implementation varies by solution.
• 9. How long is the initial contracted Hosting
  Service?
• The initial hosting contract is a one-year term.

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• 10. What are my options once the Contract
  expires?
• The Standard Contract can be renewed in one-year
  increments. Contracts are valid for one year and
  are non refundable and non cancelable. If the
  customer decides to bring the processes in-house
  once the contract expires, Oracle will provide a
  complete copy of the installed applications and
  technology software as well as all customer data.

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• 11. Who is responsible for my Patches?
• During implementation, the Authorized Implementer
  (Oracle Consulting or Authorized Implementation
  Partner) is responsible for the initial set up.
  Once a customer is in production, these tasks are
  performed by Oracle Applications Management
  Support Services (AMS).

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• 12. What are the Disaster Recovery Procedures?
• OHSPs execute incremental backups every day and
  full backups once a week. Additional backups are
  performed each time a database or major
  application modification occurs. These backups
  are securely stored on-site. Long-term storage is
  held off site for additional disaster recovery.

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• 13. What PCs do I need to access OHSPs Online
  Services?
• Any computing device (PCs, Network Computers)
  with Java (v1.3 or greater) enabled browsers with
  the following recommended minimum configuration
• Pentium III processor running Windows 98, 2000 or
  XP
• 264 Mb RAM
• Java-compliant browser (Netscape 6.0 or Internet
  Explorer 6.0 and higher)

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• 14. Will OHSPs manage my Desktop environment?
• No. The customer is required to operate and
  maintain your own desktop and LAN infrastructure.

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• 15. How do International Users interact with
  OHSPs?
• Customers with International Users should use
  their existing network infrastructure to connect
  to the customers Network Hub in the U.S. The
  U.S. hub will be connected to Oracles Data
  Center, and the international users can access
  the applications through this connection.

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• 16. Who is responsible for the Data Line from
  OHSPs to the customer site?
• OHSPs are partnering with telecommunications
  providers to deliver reliable VPN connections
  from OHSPs to the customers site with the proper
  specifications. The telecommunications provider
  will be responsible for the data line and will
  engage the customer in delivery.

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• 17. Where can I get more information?
• You can get more information by visiting the web
  sites of the Oracle ASPs
• Also try web searches for Oracle ASP.

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Oracle Applications Delivered Online

• Hosting Access Policies
• Oracle Outsourcing Services Hosting
  AccessRevised February 2003
• Standard Hosting Offerings
• Oracle will provide Data Center Hosting
  Facilities to support remote customer access
  within approved parameters established by Oracle
  and provided to the customer. This is subject to
  the customer's agreement of Oracle policies
  regarding hosting operations and the hosting of
  Oracle Applications.
• Oracle will define the hosting services
  network and systems architecture, and the
  specification of hardware and software
  requirements.

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• Standard Hardware
• The Oracle Standard Server Configuration is
  designed to deliver optimal performance to each
  customer. As part of the standard hosting
  offering, Oracle will configure three printer or
  print server connections to support standard
  Hewlett Packard Model PCL 4 (and above) class
  printers. No other printer models are supported
  by the configuration. Each customer must provide
  an Internet Routable IP address for each print
  server or printer prior to configuration. Oracle
  will configure additional printers or printer
  server connections, provided that, prior to the
  configuration of such printer or printer
  connection, such customer (i) pays Oracle a one
  time set up fee of 1,000 for each additional
  printer or printer server required, and (ii)
  agrees to pay Oracle a yearly maintenance fee of
  1,200 for each additional printer or printer
  server required.

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• Standard Network
• The Oracle Hosting Network utilizes
  redundant firewalls configured to allow network
  traffic using the protocols, ports, and IP
  addresses originating from the customer
  router/Virtual Private Network (VPN).
• To provide our customers with a secure
  hosting environment, Oracle does not allow the
  following (i) clear Internet connections to the
  customer's instance, (ii) Simple Network
  Management Protocol (SNMP) read only or write
  access to Oracle provided network equipment
  installed on the customer's premise, and/or (iii)
  analog dial up access to the customer's hosting
  environment.

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• The Hosting Network is configured to
  facilitate prevention of data theft and
  unauthorized network access.
• For each customer, Oracle will configure a VPN
  Box for network connectivity for one customer
  location. Oracle will configure a VPN Box for an
  additional customer location, provided that prior
  to each such additional customer location
  configuration, such customer (i) pays Oracle a
  one time set up fee (including hardware and
  configuration) of 5,000 and (ii) agrees to pay
  Oracle a yearly maintenance fee of 1,200.
• Each customer is responsible for the
  acquisition, configuration, monitoring,
  maintenance and management of all hardware and
  software at customer locations (except for the
  VPN Box specified in the previous paragraph),
  including Local Area Networks (LAN), computers,
  software, telecommunications, and devices.

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• Each customer can use its current Internet
  Service Provider (ISP) to provide the network
  connection to Oracle.
• Oracle will not be responsible for the network
  connection or for issues, problems or conditions
  arising from or related to the network
  connection, including but not limited to
  bandwidth issues, network outages, and/or any
  other conditions that are caused by the ISP
  and/or the network connection.

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• Standard Service
• As part of the standard hosting offering, Oracle
  establishes the Database and Application Code
  Structure needed to facilitate hosting of the
  applications ("instance"). Three instances are
  established for each customer Test, Development
  and Production. Substitutions cannot be
  accommodated. Once a customer has commenced
  "live" use of the Hosting Services,
• Oracle will monitor the test instance for the
  purpose of facilitating troubleshooting of
  issues. If, as part of a multi-phased
  implementation, an additional test instance must
  be established, or if a customer requests any
  other additional instances, the customer will be
  required to pay additional fees as follows.

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• Oracle will establish additional Instances for a
  customer, provided that, prior to the
  establishment of such instances, such customer
  (i) pays Oracle a one time set up fee of 6,000
  for each additional instance and (ii) agrees to
  pay Oracle a monthly maintenance fee of 2,000
  per month, with a three month minimum maintenance
  requirement, for each additional instance.
• Oracle will review and apply appropriate
  Operating System Patches to support the hosting
  infrastructure. Application patches are reviewed
  and applied on an as-required basis to the
  production environment to facilitate a consistent
  and reliable application environment.

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• Application Upgrades
• It is the customer's responsibility to contract
  with an Authorized Implementer to perform
  application upgrades. Oracle will provide the
  Upgrade Environment (Network Access, Computing
  Environment, Storage, and access to the
  Application Code Tree) with a copy of the
  customer's production, test or development
  instance.
• Once the customer has completed the application
  upgrade and accepted the application
  functionality, the customer is then required to
  follow the Oracle Acceptance Criteria Process
  (specified in the Oracle Implementation Guide)
  for transition into production. Once the customer
  has accepted the criteria, Oracle will work with
  the customer and the Authorized Implementer to
  move the instance to the customer's production
  server.

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• Standard Refresh Allowance
• As part of the Standard Hosting Offering, Oracle
  will reload an image copy of a customer's
  database files ("refresh") once per week per
  instance in implementation phase, and once per
  month in production phase. Oracle will allow a
  customer additional refreshes provided that,
  prior to each refresh, such customer pays Oracle
  1,000.
• Oracle requires 48 hours notice for a refresh
  and customer must ensure that the instance is
  shut down and inaccessible by no later than 500
  p.m. Pacific Standard Time. Refreshes are only
  available Monday through Friday. Refreshes
  cannot be accumulated.

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• Backup Policy
• Backups currently occur during the hours of 900
  p.m. to 600 a.m. Pacific Standard Time. During
  this time, all non-production databases are
  unavailable. A customer in a time zone other than
  Pacific Standard Time may request a different
  9-hour window.
• Standard backups include data, databases,
  applications, and all configuration pieces
  required to restore the customer installation.
• Production backups are run daily, weekly,
  monthly and annually and are currently retained
  for 15 days, 5 weeks, 13 months and 8 years,
  respectively.

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• Non-production Backups are run daily and weekly
  and are currently retained for 15 days and 5
  weeks, respectively. Non-production special
  backups include
• 1) two backups during the implementation
  phase2) two backups during pre-production
  testing and3) a baseline backup prior to
  production.
• All non-production special backups are currently
  retained for 3 months.
• Oracle will run additional backups for a
  customer provided that the customer gives Oracle
  48 hours notice and prior to each such backup,
  customer pays Oracle 1,000 for each additional
  backup.

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• Hosting Services
• Oracles Hosting Services are designed to be
  available 24 hours a day, 7 days a week, 365 days
  a year, except during weekly system maintenance.
• A weekly system maintenance period occurs every
  Friday from 900 p.m. to 1200 a.m. Pacific
  Standard Time.
• In the event that emergency maintenance is
  required, Oracle will use commercially reasonable
  efforts to provide advance notification of the
  maintenance.

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• Licensing/Support
• Each customer is responsible for obtaining
  Oracle Program Licenses and Oracle Product
  Support and Update Subscription Service Support
  for licensed Oracle Application programs. In the
  event that Product Support or Update Subscription
  Service support terminates, hosting services will
  also terminate.
• Incident Recovery and Data Restoration
• Oracle is prepared to expedite data recovery
  from backup media in the event of a system
  failure or urgent data restoration request. Data
  restoration times will vary depending on the
  severity of the problem and backup tape location.
  

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• Termination
• Upon termination of hosting services, a customer
  will receive a data export, a list of patches
  that have been applied to such customer's Oracle
  programs, and copies of the following files
• 1) Application Environment Files2) Appltop
  Directory Files3) Oracle Application Server
  Configuration Files4) INIT.ora files
• In addition, upon termination, the customer must
  return to Oracle all equipment provided or owned
  by Oracle.
• These Hosting Access Policies Are Subject to
  Change.

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Online Services LifeCycle
Upgrade
Transition
Production
Initialization
New Customer
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Oracle.com Services LifeCycle
Components
Client
Oracle Sales
Business Operations
Oracle Applications
Sales
Initialization
Implementation
Transition
Production
Upgrade
Implementor
Oracle Education
Oracle Support
Oracle Hosting
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Oracle.com Services LifeCycle
Time Line
10 120 Days
CONTRACT TO GO LIVE
30 45 Days
Sales
5 10 Days
Initialization
5 120 Days
30 Days
Implementation
Transition
Ongoing
Production
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Oracle Outsourcing Services LifeCycle
Objective

• Articulate the key components required to
  successfully implement and service an online
  customer
• Key Components Include
• Life Cycle Phases
• Milestones in Online Life Cycle
• Timelines of Activities
• Roles and Responsibilities
• Methods of Communication between Organizations

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Todays Situation

• Increased Backlogs of Projects
• Dependence of IS Staff

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Summary

• Hosting Is Not for Every Customer Situation
• Advantages Disadvantages of Oracle Hosting
  Services
• Summarize Cost of Each Option

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Frontier Consulting, Inc. QA?