Oracle Continues to Increase Investments in China

Oracle China (registered as Oracle Beijing Software Systems Co., Ltd.) announced today that it is continuing with its commitment to make ongoing investments that drive economic growth, IT adoption and innovation in China.
Oracle’s new key investment and business initiatives in China include: setting up of new offices to meet growing demand in high-growth cities; investing in additional research and development (R&D) as well as technical support facilities to address customer and partner requirements; partnering with government ministries to support regional economic development plans; and, the launch of new leading-edge software solutions and education programs to build competitive businesses and a skilled workforce.(see details below).

These investments underscore Oracle’s deep commitment to the China market, by being a strategic IT and business partner for government organizations, customers, partners, software developers and academic institutions. Oracle is working closely with these key stakeholders on joint programs that contribute to China’s long-term growth and success.

“Oracle’s investments support our three-prong strategy to support China’s long-term growth and success,” said Roger Li, regional managing director for Oracle Greater China. “Our goal is to help accelerate the adoption of information technology (IT) in public and private organizations, the development of the software industry, and the cultivation of IT talent.”

“We accelerated the pace of our expansion in China during the past year and added new resources and capabilities to enable us to deliver world-class solutions and services across the country,” said Li. “Oracle’s achievements to date in China include driving significant value to our customers by offering industry leading software technologies and building successful partnerships to reach new markets. We have also successfully increased our support for government initiatives and our contribution to China’s wider community via innovative education programs.”

Oracle, the world’s largest enterprise software company, has been operating in China for 18 years. More than 7,000 organizations across key industry sectors in China are leveraging its world-class database, middleware and applications software and services to get better information for better decisions and results, at the lowest total cost of ownership. Small and medium businesses (SMBs) make up about 80% of Oracle’s total customer base in China.

In collaboration with more than 800 partners in China, Oracle provides innovative, industry-specific solutions that cater to China’s unique needs. More than 90% of Oracle’s business in China is fulfilled through its partners.

Oracle’s Investments To Drive “Localization, Partnership & Commitment” in China
Highlights of Oracle’s investments in China over the last 18 months (2006-2007), in line with the company’s “localization, partnership and commitment” strategy, include:

Delivering Significant Customer Value with Enhanced Regional Presence
Oracle ramped up its expansion in China by establishing a number of new facilities to provide greater support and meet growing demands from customers across the country. Oracle opened eight new branch offices in high-growth cities - Shenyang, Dalian, Ji’nan, Xi’an, Chongqing, Nanjing, Hangzhou and Fuzhou. These branch offices enable Oracle to engage more proactively with local customers, share its leading technologies and expertise with users, and promote IT adoption. Oracle now has a total of 13 branch offices in China, including Beijing as the head office for China, and another 16 representative offices across the country.

In 2006, Oracle established an Oracle Global Support Center in Dalian, in Northeastern China. The facility focuses on providing technical assistance primarily to Oracle customers in China. It also serves as a multi-lingual service desk to provide local-language assistance to Oracle customers in Taiwan, Korea and Japan.

In 2007, Oracle launched the Oracle Consulting China Solutions Services Center in Chengdu in Southwest China, to provide consulting services for customer projects in North Asia, including Japan, Korea, mainland China, Taiwan and Hong Kong. The center leverages its experienced consulting professionals in Chengdu to provide localization, customization and integration services for applications consulting projects. A similar center is being planned in Shenyang in Northeast China to take advantage of the availability of Korean and Japanese speaking software developers.

Partnering for Success
In 2007, Oracle announced the establishment of a second Partner Solutions Center in China. The center, which is located in Beijing, collaborates with the Partner Solutions Center in Shenzhen. The two partner solution centers enable Independent Software Vendors (ISVs) and System Integrators (SIs) to leverage Oracle’s in-depth product expertise, proven set of processes, tools and best practices, to build industry-specific solutions on Oracle’s technology and applications. (See separate press release: “Oracle Launches Second Partner Solution Center in China” - July 30, 2007)

Supporting Government Goals
Oracle signed more than ten Memorandums of Understanding (MOUs) with local governments over the last 18 months. These memorandums are tightly aligned to enable Oracle to support China’s goals to drive sustained high growth in the Eastern and Southern China regions, rejuvenate the traditional industrial Northeastern China region, and develop the inland Western China region. The MOUs with local governments in cities, such as Hangzhou, Nanjing, Fuzhou, Shenyang, Jinan, Xi’an and Chongqing, aim to speed up local IT adoption, software industry development and IT training.

Contributing to Education, Training and Skills Development in China
Since 2002, Oracle has made in-kind contributions of more than US$200 million to China’s education system. Oracle continues to put emphasis on empowering people and local communities through education and skills training across China.

Oracle held its Annual Education Conference in China for the second time in 2006. More than 90 educators, consultants and vendor representatives from 15 countries explored partnership opportunities in the field of education of e-business applications for various industries.

In 2007, Oracle and the Ministry of Education entered into a new five-year strategic partnership. The partnership is focused on assisting China to prepare its workforce for an increasingly competitive global economy. Oracle also launched the Introduction to Computer Science program, which is a component of Oracle’s education program offered by the Oracle Academy for senior vocational schools and universities in China. Participating students are able to take full advantage of the Introduction curriculum to learn foundational business, database programming and professional skills.

Building the Developer Community
Oracle held ’Oracle Develop’ - its conference for developers - in Beijing in 2007. Attracting more than 800 participants, this was the largest Oracle developer conference ever held in China. The Oracle Technology Network (OTN) - Oracle’s global online developer community - has more than 250,000 members in China today. China is now home to the second largest developer community for Oracle in Asia Pacific and the fourth largest worldwide. (See separate press release: “Oracle Technology Network in China Surpasses 250,000 Members” - July 30, 2007)

Extending Technology Leadership through Innovation
With the launch today of the Oracle Asia Research and Development Center Shanghai, Oracle now has three centers strategically located in China, in the cities of Beijing, Shenzhen and Shanghai. This brings localization benefits and real innovation to customers in China as they leverage innovative technologies to improve efficiencies, competitiveness and profitability. (See separate press release: “Oracle Opens New R&D Center in Shanghai” - July 30, 2007)

“China and other emerging economies in Asia Pacific are important contributors to Oracle’s global success,” said Derek Williams, chairman and executive vice president, Oracle Asia Pacific and Japan. “We continue to make strategic investments, develop the skills and expertise of our business partners and employees, and deliver innovative software solutions and education programs, to bring significant value to our customers in China and across Asia Pacific. Our investments will enable us to make the most of the opportunities to grow in China and Asia Pacific. Together, these reinforce Oracle’s position as the world’s leading enterprise software provider and a strategic partner to our customers and partners.”



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