Oracle Corporation et al v. SAP AG et al

Filing 1022

Declaration of Tharan Gregory Lanier in Support of 1021 Response filed by SAP AG, SAP America Inc, Tomorrownow Inc. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21)(Related document(s) 1021 ) (Froyd, Jane) (Filed on 12/23/2010) Modified on 12/27/2010 (kc, COURT STAFF).

Oracle Corporation et al v. SAP AG et al

Doc. 1022 Att. 3

EXHIBIT 3

Dockets.Justia.com

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

CERTIFIED COPY
BEFORE THE HONORABLE PHYLLIS J. HAMILTON, JUDGE ) ) PLAINTIFFS, ) ) VS. ) ) SAP AG, ET AL., ) ) DEFENDANTS. ) ____________________________) ORACLE CORPORATION, ET AL. JURY TRIAL NO. C 07-01658 PJH VOLUME 5 PAGES 754 - 946 OAKLAND, CALIFORNIA MONDAY, NOVEMBER 8, 2010

TRANSCRIPT OF PROCEEDINGS

APPEARANCES: FOR PLAINTIFFS: BY: BINGHAM MUCCUTCHEN LLP THREE EMBARCADERO CENTER SAN FRANCISCO, CALIFORNIA 94111-4607 ZACHARY J. ALINDER, HOLLY A. HOUSE, GEOFFREY M. HOWARD, DONN P. PICKETT, ATTORNEYS AT LAW BOIES, SCHILLER & FLEXNER LLP 1999 HARRISON STREET, SUITE 900 OAKLAND, CALIFORNIA 94612 DAVID BOIES, STEVEN C. HOLTZMAN, ATTORNEYS AT LAW

BY:

(APPEARANCES CONTINUED NEXT PAGE)

REPORTED BY:

RAYNEE H. MERCADO, CSR NO. 8258 DIANE E. SKILLMAN, CSR NO. 4909

RAYNEE H. MERCADO, CSR, RMR, CRR, FCRR, CCRR [phone]

856 CATZ - DIRECT / MS. HOUSE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 INCREMENTAL CUSTOMER IS CLOSER TO A HUNDRED PERCENT. Q. A. WHAT DOES ORACLE THEN DO WITH THOSE MAINTENANCE PROFITS? THIS IS WHAT WE SPEND ON EITHER PUTTING THE MONEY INTO R&D AND THAT'S WHAT OUR ACQUISITIONS ARE FUNDED

OR ACQUIRING R&D.

WITH, QUITE FRANKLY, ADDITIONAL R&D. Q. A. AND DOES THAT R&D HAVE ANY IMPACT IN TERMS OF JOBS? OH, YEAH. I MEAN, WE HAVE, AS YOU HEARD, WE HAVE A WE HAD WHAT, 50,000

HUNDRED THOUSAND EMPLOYEES AT THAT TIME. AND SO IT IS A LOT OF JOBS, OF COURSE. Q.

IS ORACLE THE ONLY COMPANY IN THE SOFTWARE BUSINESS THAT

EARNS HIGH SUPPORT MARGINS AND THEN TURNS AROUND TO FUND R&D WITH THOSE? A. NO, THAT IS ACTUALLY THE MODEL. THAT'S WHAT IBM AND SAP,

THAT'S WHAT WE ALL DO. Q.

THIS IS HOW YOU DO IT.

NOW LOOKING AT THE NEXT PAGE IN THE MODEL, YOU -- IT SAYS

IN THE SECOND HALF ON THE BOTTOM IT SAYS, "OPERATING EXPENSE BUILDUP". AND THE FIRST LINE OF DATA SHOWN UNDERNEATH SAYS

"R&D COSTS". CAN YOU EXPLAIN TO THE JURY WHAT IS INCLUDED IN THAT LINE ITEM ON THE LEFT-HAND SIDE? A. SO, R&D COSTS ARE THE DEVELOPERS WHO ACTUALLY BUILD THE

SOFTWARE AND BUILD ALL THE FIXES AND DO THE SECURITY FIXES AND THE REGULATORY UPDATES. BUT THESE ARE THE GUYS, GUYS AND GALS, AND AS YOU CAN SEE,

ACTUALLY, THAT BUILD THE PRODUCTS.

PEOPLESOFT WAS SPENDING A LITTLE MORE THAN 500 MILLION A YEAR

DIANE E. SKILLMAN, OFFICIAL COURT REPORTER, USDC [phone]

946

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TUESDAY, NOVEMBER 9, 2010 ___________________________________ DIANE E. SKILLMAN, CSR, RPR, FCRR ___________________________________ RAYNEE H. MERCADO, CSR, RMR, CRR, FCRR, CCRR CERTIFICATE OF REPORTER WE, RAYNEE H. MERCADO AND DIANE E. SKILLMAN, OFFICIAL REPORTERS FOR THE UNITED STATES COURT, NORTHERN DISTRICT OF CALIFORNIA, HEREBY CERTIFY THAT THE FOREGOING PROCEEDINGS IN C07-01658PJH, ORACLE USA, INC., ET AL. V. SAP AG, ET AL., WERE REPORTED BY US ON, MONDAY, NOVEMBER 8, 2010, CERTIFIED SHORTHAND REPORTERS, AND WERE THEREAFTER TRANSCRIBED UNDER OUR DIRECTION INTO TYPEWRITING; THAT THE FOREGOING IS A FULL, COMPLETE AND TRUE RECORD OF SAID PROCEEDINGS AS BOUND BY US AT THE TIME OF FILING. THE VALIDITY OF THE REPORTER'S CERTIFICATION OF SAID TRANSCRIPT MAY BE VOID UPON DISASSEMBLY AND/OR REMOVAL FROM THE COURT FILE.

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