|Exam Name||:||Oracle Exadata Database Machine and Cloud Service 2017 Implementation Essen|
|Questions and Answers||:||72 Q & A|
|Updated On||:||May 24, 2019|
|PDF Download Mirror||:||1Z0-338 Brain Dump|
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Test Code : 1Z0-338
Test Name : Oracle Exadata Database Machine and Cloud Service 2017 Implementation Essen
Vendor Name : Oracle
Q&A : 72 Real Questions
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(EDGAR on-line by way of COMTEX) -- item 2. management's dialogue and analysis of economic situation and results of Operations
We start administration's discussion and evaluation of monetary situation and consequences of Operations with a top level view of our agencies, key working segments and demanding trends. This overview is adopted with the aid of a abstract of our critical accounting policies and estimates that we accept as true with are vital to realizing the assumptions and judgments integrated in our pronounced monetary effects. We then deliver a greater detailed analysis of our results of operations and fiscal situation.
Oracle employer gives items and capabilities that address all points of company counsel technology (IT) environments-application, platform and infrastructure. Our Oracle Cloud choices deliver a finished and wholly built-in stack of software, platform, compute, storage, and networking functions in all three primary layers of the cloud: software as a provider (SaaS), Platform as a carrier (PaaS) and Infrastructure as a service (IaaS). Our on-premise choices encompass Oracle database and middleware software, utility utility, hardware (Oracle Engineered programs, servers, storage, networking and business-particular items), and connected support and capabilities. We provide our cloud and on-premise choices to clients worldwide by way of deployment models that most appropriate swimsuit their wants.
Our finished and wholly built-in stack of SaaS, PaaS and IaaS offerings combine the application, hardware and capabilities on the valued clientele' behalf in IT environments that we installation, support and control for the client. Our integrated Oracle Cloud offerings are designed to be swiftly deployable to enable customers shorter time to innovation; with ease maintainable to cut back integration and checking out work; connectable among differing deployment fashions to permit interchangeability and extendibility between cloud and on-premise IT environments; appropriate to effortlessly move workloads between on-premise IT environments and the Oracle Cloud; competitively priced by means of requiring lower upfront client investment; and relaxed, requirements-primarily based and authentic. we are a leader within the core technologies of cloud IT environments, together with database and middleware application as well as business applications, virtualization, clustering, tremendous-scale systems management and related infrastructure. Our items and capabilities are the constructing blocks of our Oracle Cloud capabilities, our partners' cloud capabilities and our consumers' cloud IT environments.
moreover featuring a wide spectrum of cloud offerings, we enhance and sell our items and functions to our clients worldwide to be used in their world statistics facilities and on-premise IT environments. a crucial element of our company approach is to proceed our investments in, and innovation with appreciate to, our items and functions that we offer via our cloud and on-premise application, hardware and services organizations. we now have a deep understanding as to how all accessories inside IT environments-application, platform and infrastructure-engage and function with one an extra. We focus our construction efforts on enhancing the performance, safety, operation and integration of those differing applied sciences to make them more competitively priced and simpler to deploy, control and preserve for our valued clientele and to enrich their computing performance relative to our competitors. After the initial purchase of Oracle items and capabilities, our consumers can proceed to take talents of our analysis and development investments and deep IT competencies with the aid of procuring and renewing Oracle help choices, which may also include product enhancements that we periodically deliver to our software items, among others, and through renewing their SaaS, PaaS and IaaS contracts with us.
As valued clientele install with the Oracle Cloud, many are adopting a hybrid IT mannequin whereby definite of their IT elements are deployed and managed through the Oracle Cloud, whereas other of their IT elements are deployed and managed on-premise,and both units of supplies will also be managed as one. We center of attention the engineering of our products and features to most efficient join these distinct deployment models to permit flexibility, ease, agility, compatibility, extensibility and seamlessness.
Our selective and lively acquisition software is one more crucial point of our company method. We accept as true with that our acquisitions raise the items and capabilities that we can present to shoppers, extend our customer base, provide improved scale to accelerate innovation, grow our revenues and revenue, and enhance stockholder price. In fresh years, we now have invested billions of bucks to acquire a number of agencies, items, features and applied sciences that add to, are complementary to, or have otherwise improved our current offerings. all through the 2d quarter of fiscal 2017, we received NetSuite Inc. (NetSuite), which contributed to the growth in our cloud
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SaaS and PaaS revenues, amongst others, from the date of acquisition. be aware 2 of Notes to Condensed Consolidated financial Statements, protected in other places during this Quarterly report, offers more information involving our acquisition of NetSuite. We are expecting to proceed to acquire corporations, items, functions and technologies to further our corporate method.
we now have three agencies that carry our application, platform and infrastructure technologies: cloud and on-premise utility, hardware and capabilities. These organizations can be further divided into definite operating segments (observe 12 of Notes to Condensed Consolidated fiscal Statements, protected somewhere else during this Quarterly report, provides additional information regarding our working segments). each of our organizations and operating segments has unique characteristics and faces distinct opportunities and challenges. a top level view of our three corporations and linked operating segments follows.
Cloud and On-Premise software company
Our cloud and on-premise utility company, which represented 80% of our complete revenues on a trailing 4-quarter groundwork, is made out of three working segments: (1) cloud utility and on-premise utility, (2) cloud IaaS and
Cloud application and On-Premise utility: Our cloud software and on-premise application line of enterprise markets, sells and offers a wide spectrum of software and platform technologies through our SaaS and PaaS choices, which might be definite of our application applications and systems that are delivered via a cloud-primarily based IT atmosphere that we host, manipulate and assist. Our cloud software and on-premise application line of business also licenses our application items together with Oracle functions, Oracle Database, Oracle Fusion Middleware and Java, among others, for on-premise and different IT environments.
We believe that the comprehensiveness and breadth of our SaaS, PaaS and on-premise application offerings provide superior improvement to our purchasers and differentiates us from many of our opponents that offer more restrained or really good software choices. Our SaaS and PaaS choices are designed to be interoperable with one one other, thereby limiting the combination and tuning of multiple cloud applications from distinct providers. Our SaaS and PaaS choices are designed to bring relaxed information isolation and versatile improvements, self-carrier access controls for users, a carrier-Oriented architecture (SOA) for integration with on-premise systems, and a high efficiency, excessive availability infrastructure based on our infrastructure technologies including our Oracle Engineered techniques. Our on-premise utility offerings are radically designed to function on both single server and clustered server configurations for cloud or on-premise IT environments, and to support a choice of operating systems including Oracle Solaris, Oracle Linux, Microsoft windows and third party UNIX products, among others. Our dedication to industry requirements consequences in utility offerings that work in customer environments with Oracle or non-Oracle hardware or software accessories and that can also be tailored to satisfy specific trade or enterprise wants. We focal point the engineering of our products and features to most effective join cloud and on-premise deployment models to allow flexibility, ease, agility, compatibility, extensibility and seamlessness. All of these methods are designed to support customer option and cut back client risk. Our valued clientele encompass groups of many sizes, govt corporations, academic associations and resellers. We market and sell our cloud utility and on-premise application offerings to these customers with a revenue force placed to offer the combos that top of the line healthy client needs. We permit clients to adapt and transform to significantly any IT ambiance at some thing pace is most acceptable for them.
Our SaaS and PaaS revenues and new utility licenses revenues are plagued by the power of customary financial and business conditions, governmental budgetary constraints, the method for and aggressive place of our utility choices, our acquisitions, our capability to carry and renew our SaaS and PaaS contracts with our current valued clientele and international foreign money fee fluctuations. In recent periods, we've placed significant strategic emphasis on growing to be our cloud SaaS and PaaS revenues, which has affected the growth of our cloud SaaS and
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PaaS revenues and our new utility licenses revenues and the connected charges. We predict these developments will continue. Our SaaS and PaaS arrangements are often one to a few years in duration and we try to resume these contracts when they're eligible for renewal. The vast majority of our new utility license transactions are characterized by way of lengthy sales cycles and the timing of just a few big application license transactions can greatly affect our quarterly new software licenses revenues.
Cloud utility and on-premisesoftware revenues represented 27% of our complete revenues on a trailing 4-quarter basis. Our cloud software and on-premise software phase's margin has historically trended upward over the course of the four quarters within a particular fiscal yr due to the historical upward style of our new software licenses revenues over those quarterly periods and because the majority of our expenses for this phase are predominantly mounted within the short term. As mentioned further beneath under "Supplemental Disclosure involving certain charges," our cloud software and on-premise application phase's margin has been and may continue to be affected by the fair price adjustments concerning the cloud SaaS and PaaS tasks that we assumed in our company combos and by means of the amortization of intangible assets linked to companies and technologies that we've received.
Cloud Infrastructure as aService: Our cloud IaaS segment, which represented 2% of our total revenues on a trailing 4-quarter groundwork, provides Oracle Cloud IaaS offerings, that are infrastructure cloud capabilities that are business-grade, hosted and supported within the Oracle Cloud to operate elastic compute, storage and networking services on a subscription groundwork. Our cloud IaaS phase also presents Oracle Managed Cloud features, which might be complete software and hardware management and renovation features for customer IT infrastructure for a price for a cited term that are hosted at our Oracle information middle amenities, opt for accomplice statistics facilities or physically on-premise at customer facilities. We trust that our Oracle Cloud IaaS choices complement our SaaS and PaaS choices and permit us to present clients extra alternatives to entry Oracle technologies throughout the Oracle Cloud to fulfill their IT wants.
software License Updates andProduct guide: utility license updates and product support revenues are generated in the course of the sale of utility help contracts relating to on-premise new application licenses bought through our shoppers. shoppers that buy utility license updates and product assist are granted rights to unspecified product upgrades and preservation releases and patches released throughout the time period of the support length, in addition to technical support information. Our utility license updates and product guide contracts are frequently 12 months in length. greatly all of our on-premise application license valued clientele renew their application license updates and product guide contracts yearly. The growth of application license updates and product assist revenues is primarily influenced by using four factors: (1) the percentage of our software guide contract consumer base that renews its software aid contracts; (2) the quantity of new software guide contracts offered in connection with the sale of new application licenses; (3) the amount of new utility license revenues offered; and (4) the volume of utility help contracts assumed from corporations we have received.
Our application license updates and product support section, which represented 51% of our total revenues on a trailing four-quarter basis, is our highest margin business unit. Our application help margins over the trailing 4-quarters have been 93% and accounted for 87% of our total margins over the equal length. Over the long run, we accept as true with that application license updates and product help revenues and margins will develop for here motives:
appreciably all new software licenses transactions result within the sale of application license updates and product assist contracts, which add to our software guide contract base;
noticeably all of our on-premise new application license customers, together with purchasers from bought companies, renew their utility aid contracts when eligible for renewal; and
our acquisitions have increased our application help contract base, as neatly because the portfolio of items obtainable to be licensed and supported.
Our hardware business is made out of two operating segments: (1) hardware items and (2) hardware guide. Our hardware enterprise represented 12% of our total revenues on a trailing four-quarter groundwork. We expect our
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hardware business to have decrease operating margins as a percent of revenues than our cloud and on-premise software enterprise due to the incremental prices we incur to supply and distribute these items and to supply support capabilities, together with direct substances and labor fees. We are expecting to make investments in analysis and construction to increase current hardware products and services and to develop new hardware items and functions.
Hardware products: We provide a extensive choice of hardware and linked functions, together with Oracle Engineered methods, servers, storage, networking, workstations and linked gadgets, trade-specific hardware, virtualization application, operating techniques, and management utility to support distinct IT environments, together with cloud computing environments. We engineer our hardware products with virtualization and administration capabilities to enable the swift deployment and effective management of cloud and on-premise IT infrastructures. Our hardware items aid many of the world's greatest cloud infrastructures, including the Oracle Cloud.
Our hardware items are designed to be simpler to install, manage and preserve for our shoppers and to enrich computing efficiency relative to our opponents' offerings. We design our hardware products to seamlessly connect cloud and on-premise IT environments to further permit interoperability, interchangeability and extendibility and to work in client environments that may also encompass other Oracle or non-Oracle hardware or software components. Our flexible and open approach gives Oracle valued clientele with a large range of choices in how they install our hardware products, which we agree with is a precedence for our customers.
Oracle Engineered programs are core to our hardware offerings and are essential elements of our information center and cloud computing choices together with the Oracle Cloud. These pre-integrated products are designed to combine numerous Oracle technology components to work collectively to bring greater efficiency, availability, protection and operational efficiency relative to our competitors' products; to be upgraded conveniently and successfully; and to simplify renovation cycles through featuring a single answer for software patching. Oracle Engineered programs are confirmed before they're shipped to valued clientele and delivered capable-to-run, enabling customers to shorten deployment time to production. We present definite of our Oracle Engineered methods technologies through bendy deployment alternate options including as a cloud carrier and for on-premise IT environments.
We offer a wide range of server products the use of our SPARC microprocessor. Our SPARC servers run the Oracle Solaris operating gadget and are designed to be differentiated by way of their reliability, security and scalability. Our mid-size and big servers are designed to present enhanced efficiency and decrease complete charge of possession than competitive UNIX programs for enterprise critical applications, for purchasers having extra computationally intensive wants, and as structures for constructing cloud computing IT environments. Our SPARC servers are also a core part of the Oracle SuperCluster, one in every of our Oracle Engineered techniques.
We additionally present commercial enterprise x86 servers. These x86 servers are based on microprocessors from Intel enterprise and are compatible with Oracle Solaris, Oracle Linux, Microsoft windows and different working programs. Our x86 servers are additionally a core part of many of our Oracle Engineered systems including the Oracle Exadata Database desktop, Oracle Exalogic Elastic Cloud, Oracle Exalytics In-reminiscence machine and the Oracle big statistics appliance.
Our storage products are engineered for the cloud and designed to securely save, control, protect, archive, backup and recover clients' mission critical records property. Our storage products include disk, flash, tape, digital tape and hardware-linked software including file programs software, returned-up and archive utility, hierarchical storage management software and networking for mainframe and heterogeneous methods environments. We also offer definite of our storage offerings as a cloud service.
Our networking and information center cloth items, together with Oracle digital Networking, and Oracle InfiniBand and Ethernet technologies, are used with our server and storage items and are built-in into our management equipment to assist business purchasers increase infrastructure performance, cut back can charge and complexity and simplify storage and server connectivity.
We present hardware products and functions designed for definite particular industries. Our point-of-sale hardware choices include point-of-sale terminals and related hardware that are designed for managing groups inside the food and beverage, lodge and retail industries, among others. Our hardware items and features for
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communications networks encompass network signaling, policy control and subscriber facts management options, and session border manage expertise, among others.
nearly all of our hardware products are sold via indirect channels, including impartial distributors and cost-added resellers.
to produce our hardware products, we count on each our internal manufacturing operations as well as third birthday party manufacturing companions. Our internal manufacturing operations consist essentially of substances procurement, meeting, checking out and nice manage of our Oracle Engineered programs and certain of our enterprise and information core servers and storage items. For all other manufacturing, we generally count on third birthday party manufacturing companions to provide our hardware-connected add-ons and hardware items and we can also contain our internal manufacturing operations in the closing assembly, testing and nice handle techniques for these add-ons and items. We distribute most of our hardware products both from our amenities or companion facilities. We strive to reduce costs by using simplifying our manufacturing processes through expanded standardization of components across product varieties and a "construct-to-order" manufacturing method during which items generally are constructed best after shoppers have positioned company orders.
Our hardware products revenues, can charge of hardware items and hardware working margins that we report are plagued by our approach for and the competitive place of our hardware items, the power of widespread financial and enterprise circumstances, governmental budgetary constraints, definite of our acquisitions and overseas forex fee fluctuations.
Our quarterly hardware items revenues are problematic to foretell. The timing of client orders and delays in our potential to timely manufacture or convey a number of enormous hardware transactions, among other factors, could extensively have an effect on the volume of hardware products revenues, prices and working margins that we report.
Hardware support: Our hardware help offerings provide purchasers with utility updates for application components which are elementary to the performance of our hardware products, akin to Oracle Solaris and certain other application products, and may include product repairs, renovation services and technical guide functions. typically, our hardware help contract arrangements are priced as a percentage of the internet hardware products expenses, are invoiced to the consumer firstly of the help period and are 12 months in period. We continue to conform hardware support strategies which are intended to proactively determine and resolve great considerations and to increase the volume of latest and renewed hardware support contracts bought in connection with the revenue of our hardware items. Our hardware help revenues that we report are influenced via a few factors, together with the extent of purchases of hardware items, the pricing and blend of hardware items purchased, whether valued clientele decide to purchase hardware help contracts at or in close proximity to the time of hardware product sale, the percent of our hardware guide contract client base that renews its aid contracts and our acquisitions. considerably all of these factors are closely influenced by our consumers' selections to either maintain or upgrade their present hardware infrastructure to newly developed technologies that can be found.
Our capabilities business, which represented eight% of our total revenues on a trailing 4-quarter basis, is comprised of the remainder of our working segments. Our services business has lessen margins than our cloud and on-premise application and hardware corporations. Our capabilities revenues are impacted by our approach for and the aggressive position of our services, certain of our acquisitions, customary financial circumstances, governmental budgetary constraints, personnel discounts in our customers' IT departments, tighter controls over discretionary spending, our strategic emphasis on transforming into our cloud revenues and the increase in our software and hardware offerings. Our features enterprise' choices include:
consulting features that are designed to support our consumers and international system integrator companions extra successfully architect and deploy our offerings, together with IT strategy alignment, commercial enterprise structure planning and design, initial cloud and software implementation and integration, and ongoing software enhancements and upgrades. We utilize a global, blended delivery model to optimize value for our clients and partners, consisting of on-premise consultants from local geographies, industry consultants and consultants from our world birth and answer centers;
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schooling features for Oracle products and features, together with working towards and certification classes which are provided to customers, companions and employees via a number of codecs, together with teacher-led classes at our schooling facilities, are living digital training, self-paced on-line practicing, inner most routine and customized practicing.
Our selective and energetic acquisition software is another critical point of our corporate approach. In contemporary years, we have invested billions of dollars to purchase a few complementary agencies, items, features and applied sciences.
we have obtained certain companies and technologies all over the fiscal 2017 and 2016 durations introduced during this Quarterly document, including NetSuite. notice 2 of Notes to Condensed Consolidated financial Statements included in different places during this Quarterly record gives additional information regarding our fresh acquisitions.
We consider that our acquisition application strengthens our aggressive place, enhances the products and capabilities that we are able to present to purchasers, expands our customer base, gives more advantageous scale to accelerate innovation, grows our revenues and earnings and raises stockholder value. We expect to continue to acquire corporations, items, features and technologies in furtherance of our company method.
We agree with that we can fund our pending and future acquisitions with our internally purchasable cash, money equivalents and marketable securities, money generated from operations, further borrowings or from the issuance of additional securities. We estimate the monetary have an impact on of any abilities acquisition with reference to revenue, operating margin, money movement and return on invested capital objectives before figuring out to stream forward with an acquisition.
crucial Accounting policies and Estimates
Our consolidated financial statements are organized in response to U.S. generally approved accounting concepts (GAAP) as set forth within the fiscal Accounting necessities Board's (FASB) Accounting necessities Codification (ASC), and we agree with the a considerable number of body of workers accounting bulletins and other applicable information issued by way of the U.S. Securities and exchange fee. GAAP, as set forth in the ASC, requires us to be sure estimates, judgments and assumptions. We trust that the estimates, judgments and assumptions upon which we depend are within your means based mostly upon tips attainable to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the pronounced quantities of assets and liabilities as of the date of the financial statements as smartly as the reported amounts of revenues and fees all through the intervals offered. To the extent that there are adjustments between these estimates, judgments or assumptions and genuine results, our monetary statements will be affected. The accounting guidelines that mirror our extra colossal estimates, judgments and assumptions and which we believe are probably the most critical to aid in completely figuring out and evaluating our said fiscal outcomes encompass:
Goodwill and Intangible assets-Impairment Assessments;
Accounting for revenue Taxes; and
criminal and other Contingencies.
in lots of circumstances, the accounting medicine of a particular transaction is peculiarly dictated through GAAP and does not require management's judgment in its utility. There are also areas wherein administration's judgment in picking out . . .
Mar 17, 2017
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