Oracle Delivers Strong Applications Growth & Customer Momentum Across Asia Pacific and China In FY07

Demand for Oracle Applications continued to increase across Asia Pacific and Japan during the last fiscal year, as Oracle experienced a signifciant increase in the demand, new adoption and upgrades of its applications products from organizations of all sizes and across key industries in the region. Oracle has more than 6,000 applications customers across Asia Pacific today, of which more than 50% are small and medium businesses (SMBs).
China, an important market for Oracle’s overall business, is a key contributor to Oracle’s positive Applications business performance in Asia Pacific. Oracle is seeing rapid adoption of its industry-leading Applications products - including Human Capital Management (HCM), Supply Chain Management (SCM), Customer Relationship Management (CRM) - in China, as a growing number of organizations chose Oracle Applications as their strategic IT platform to run their operations. Oracle is also seeing a sharp rise in demand across key industries in China, including manufacturing, financial services, communications, utilities, government, healthcare, retail, distribution, consumer goods, automotive, travel and transportation.

“Oracle’s applications business in Asia Pacific continued to make big strides in FY07,” said Mark Gibbs, senior vice president for Applications, Oracle Asia Pacific. “We achieved solid organic growth and continued to grow our installed base across the region as well as in China. Our commitment to consistently deliver more innovation, more value and greater choice to our customers is paying off. We continue to gain market share and outperform the market.”

The rapid pace of growth of Oracle’s applications business in China reflects the significant demand for strategic IT from companies in China. A burgeoning number of enterprises in China are adopting information systems to gain a competitive edge in the market, especially after China’s accession into the World Trade Organization. China’s GDP in 2006 reached 20,940.7 billion RMB, up 10.7% from the previous year.

“One of the major drivers fuelling Oracle Applications momentum in the region is the growing preference, amongst large and small customers alike, for a strategic partner that can provide innovative, industry-specific solutions, to give them a competitive edge,” Gibbs said. “China’s World Trade Organisation acession was a reflection point for all Chinese businesses. Companies in China today recognize that business transformations that strategically leverage IT can enable them to achieve significant business improvements and a competitive advantage.”

Oracle’s Commitment to Applications Wins Customer Confidence Across Asia Pacific and China
Organizations in China and across the wider Asia Pacific region are increasingly choosing Oracle’s standards-based, industry-specific applications and integrated architecture, to run their operations and increase business agility. (See list below).

Oracle’s global leadership position as the number one provider of core applications - such as customer relationship management (CRM), human capital management (HCM), supply chain management (SCM) - and in industries - such as communications, financial services, government, healthcare and retail - is winning sales. A growing number of customers are also replacing their inefficient and costly proprietary systems from other vendors with Oracle’s open platform, service-oriented architecture (SOA) and applications.

Customer confidence has also been boosted by Oracle’s investments in initiatives to meet customer demand and accelerate innovation. These initiatives include: continued enhancements to the Oracle applications product lines - Oracle E-Business Suite, Siebel, PeopleSoft and JD Edwards - under the Applications Unlimited program; Oracle’s Lifetime Support policy; roll-out of advanced integration capabilities with Applications Integration Architecture; and, a continued focus on strengthening the breadth and depth of the Oracle Applications portfolio.

Gibbs said, “Customers across Asia Pacific are increasingly choosing Oracle not only for our best-of-breed, industry-specific applications, but also for the benefits that come with implementing the industry’s most integrated portfolio of enterprise applications, built on a common standards-based platform. Oracle’s strategy to offer choice and continued innovation, through initiatives such as Applications Unlimited, Lifetime Support, Applications Integration Architecture and service-oriented architecture, are helping customers reduce complexity and total cost of ownership.”

Oracle’s recent initiatives have been well received by the industry. According to industry analyst firm AMR Research(1): “Oracle is threading business process thinking through its application, integration, and middleware strategies. In about a year, it has cherry picked the most effective tools for creating business value with enterprise applications and woven its existing assets together into a very interesting platform. The Application Integration Architecture will satisfy customer demands for integration of its acquired applications, while creating a gradual migration path to the future Fusion Applications. The Process Integration Packs combined with BPM tools will give customers an opportunity to implement cross-functional business processes and then create a unique competitive advantage on top of standard enterprise applications.”

SMBs In Asia Pacific and China Adopt Industry-Specific Oracle Applications
Small and medium businesses across Asia Pacific are responding positively to the launch of Oracle Accelerate, a new portfolio of industry-specific applications solutions delivered by Oracle and more than 50 of its partners. The industry-specific solutions, which address the needs of more than 30 industry segments across 14 Asia Pacific countries, are specially designed, packaged and priced for SMBs. Oracle today serves more than 25,000 SMB customers in the Asia Pacific region.

SMBs that have adopted Oracle Applications to achieve efficient deployments, faster returns on investments (ROI) and reduced risk and costs, include: Champion Building Material Co. Ltd., China Paint Manufacturing, D-Link, Dharma Drum Mountain, Hebei Meihua Group, LeeWorld, Meike Corp, Neoglory Jewelry, Shanghai Bashi International Corp, Shanghai Hi-Tech Control System, Shanghai Kangwang Corporation, Shanghai Sinoview Co. Ltd, Suzhou DIO Corporation, Toneluck, WuXi Pharma Tech and Zhejiang Wansha Holding Co. Ltd.

Oracle continues to invest in growing its presence across China to better address customer and partner needs. Key investments include the opening of eight new branch offices in the high growth cities of Shenyang, Dalian, Nanjing, Jinan, Xi’an, Chongqing, Hangzhou and Fuzhou.

Key Oracle Applications Customer Wins And Go Lives in China
Oracle continues to grow its installed base in Asia Pacific with customer wins and go lives across key solution areas and major industries in FY07, including:

Human Capital Management (HCM): Alibaba, Andong Oil, Bank of Nanjing, Beijing Metro, Beijing Municipal Bureau of Culture, Bo Hai Bank, ChangAn Automobile, Changde Tobacco, China University of Political Science & Law, Dongfeng Motorsteel, Guangzhou Metro, Guangzhou Toyota Motor, Hisoft Technology, Hua Xia Bank, Matsushita Electric (China), Ningbo City Commercial Bank, PingAn Insurance, Shenzhen HYT Science and Technology, and Worksoft Creative Technology

Supply Chain Management (SCM): BBK Electronics Corp., Foxlink Design, Giant Hope Ltd, GuangDong Airport Authority, Hangzhou Eastcom, Huaneng Power International, Inc., Hunan Hengyang Steel Tube (Group) Co. Ltd, JiangXi Province Power Grid Co. Ltd, North China Grid Co.Ltd, SDIC Yunnan Dachaoshan Hydropower Co. Ltd, ShenYang LiMing Aero-Engine Group Corporation, Suguna Poultry Group, Tai Ping Carpets, Wah Shing Toy Manufacturing, Taiyuan Heavy Machinery (Group) Co. Ltd, Vanke Group, Wistron NeWeb Corporation, Zhejiang Energy Group Co., Ltd.

Customer Relationship Management (CRM): Bank of Nanjing, Beijing Housing Loan Guarantee Center, China Telecom (including its branch Xinjiang Telecom & ZheJiang Telecom), Giti Tire, Industrial Bank, Loreal China, Motorola (China), Ningbo City Commercial Bank, Nokia (China), PICC Health Insurance, Shandong Foton Heavy Industries Company Ltd., Shanghai General Motors, Sinosteel, Sinotrans, Virgin Mobile (Shanghai) Ltd, Weichai Power, YunNan Bai Yao Group

Communications & Media: China Mobile Communications, China Mobile Group Guangdong Co Ltd, China Telecom, Chongqing Telecom Company, Gansu Telecom, Guizhou Telecom, Shanxi Telecom, Sichuan Telecom Company, Virgin Mobile (Shanghai) Ltd, Xinjiang Telecom, Yunnan Telecom

Utilities: Guohua Power Co., Huadian International Power Co., Huaneng International Power Co., Jiangxi Power Grid Co., North China Grid Co., SAC, Yunnan DCS Hydropower Co., Zhejiang Energy Group Co. Ltd.

Financial Services: An Bang Insurance, Aviva-Cofco, Bank of Nanjing, Bo Hai Bank, China Construction Bank, China Insurance, China Reinsurance, Chongqing Commercial Bank, Guo Hua Insurance, Hua Tai Insurance, Hua Xia Bank, Industrial Bank, Ningbo City Commercial Bank, PingAn Insurance

Government, Education & Healthcare: Beijing Municipal Bureau of Culture, China University of Political Science & Law, Beijing Housing Loan Guarantee Center

Hi-Tech: BBK Electronics, Hangzhou Eastcom, Huawei 3com, Intex Optoelectronics, LG Electronics (China), Midea Holding, Matsushita Electric (China), NEC Telecommunications, Shanghai Hi-Tech Control System, Shenzhen HYT Science & Technology, Sony Ericsson, UT Starcom, ZTE

Industrial Manufacturing: Chevron Holdings, Dongfang Steam Turbine Works, Giti Tire, Guidian Nanjing Automation, Jianshe Group, Nanjiang Aerosun, Shenyang Liming Aero Engine, Shenyang Machine Tool, Tianjin Tiange Textile, Tianzheng Group, Weichai Power

Professional Services: Alibaba, Hisoft Technology, Worksoft Creative Technology

Natural Resources: Andong Oil, Guangdong SYP Glass, Hengyang Valin Steel, Linfen Steel, Sinosteel, XianTan Steel, Shanghai Baosteel Baoshan Steel, Wuyang Iron & Steel, Yuexiu Cement, Zhangjiagang POSCO Stainless Steel

Automotive: ChangAn Automobile, Dongfeng Motor, First Auto Works, Guangzhou Toyota Motor, Jiangling Motor Holding, Shanghai General Motors

Pharmaceuticals/Chemical: Beijing Pharmaceutical, China Paint Manufacturing, NICE Group, Wuxi PharmaTech, Yunnan Baiyao Group

Engineering & Construction: China State Construction and Engineering Group, Guangzhou City Construction and Development, Hangxiao Steel Construction, Vanke Group

Travel & Transportation: Beijing Metro, China Eastern Airline, Guangzhou Baiyun International Airport, Guangzhou Metro, New Times International Transport Services, Shenzhen Shun Feng Express, Travelsky

Consumer Packaged Goods & Retail: Amway (China), Bright Dairy & Food, C&U Group, Changde Tobacco, Inner Mongolia Yili Dairy Group, Longfeng Group, Mary Kay (China), TESCO Stores (China), TsingTao Beer, Suzhou DIO Group