Oracle Corporation et al v. SAP AG et al

Filing 1206

Declaration of Nargues Motamed in Support of 1202 Statement Joint Statement in Support of Evidentiary Issues filed byOracle International Corporation. (Attachments: # 1 Exhibit A-0059, # 2 Exhibit A-6329-1, # 3 Exhibit A-0367, # 4 Exhibit A-5042, # 5 Exhibit A-5997, # 6 Exhibit A-6042-1, # 7 Exhibit A-6205-1, # 8 Exhibit A-5193, # 9 Exhibit A-5995, # 10 Exhibit A-5058, # 11 Exhibit A-5002-1, # 12 Exhibit A, # 13 Exhibit B, # 14 Exhibit C, # 15 Exhibit D, # 16 Exhibit E, # 17 Exhibit F, # 18 Exhibit G, # 19 Exhibit H, # 20 Exhibit I, # 21 Exhibit J, # 22 Exhibit K, # 23 Exhibit L, # 24 Exhibit M, # 25 Exhibit N, # 26 Exhibit PTX 0008, # 27 Exhibit PTX 0014, # 28 Exhibit PTX 0161, # 29 Exhibit O, # 30 Exhibit P, # 31 Exhibit Q, # 32 Exhibit R, # 33 Exhibit PTX 4809, # 34 Exhibit PTX 4819, # 35 Exhibit PTX 0012, # 36 Exhibit PTX 0024, # 37 Exhibit PTX 0960, # 38 Exhibit PTX 7028, # 39 Exhibit S, # 40 Exhibit T, # 41 Exhibit U, # 42 Exhibit V, # 43 Exhibit W, # 44 Exhibit PTX 8040, # 45 Exhibit PTX 2582, # 46 Exhibit X, # 47 Exhibit Y, # 48 Exhibit PTX 8112, # 49 Exhibit PTX 8111, # 50 Exhibit PTX 8108)(Related document(s) 1202 ) (Howard, Geoffrey) (Filed on 8/2/2012)

From:

Juan C. Jones [[e-mail]]

Sent:

Tuesday, August 29, 2006 12:11 PM

To:

Chris

Cc:

Yamilet Torres; OSSINFO - Kevin

Subject:

Fw: FW: Home Depot Executive Summary]

Mads~n

Approvals; Rick Cummins

Attachments: Executive Summary· Home Depot - 8-22-06.doc

It is clear that Home Depot is committed to SAP. While we considered them a loss last year, we were
able to renew them on a technicality. However, they have communicated to us their intent to have
TomorrowNow support them in the interim as they migrate HCM to SAP. So, it is clear that we do not
have a shot at retaining this customer in the future. And if they ever want to come back, they should
do so under standard Back Support and negotiated Reinstatement Fees.

Therefore, I am not supportive of the proposal to halve our Support to Home Depot (and approve
Support-only proposals) for the following reasons:
1. They've gone to SAP hook, line, and sinker so there is no turnaround opportunity here to even try
to salvage.
2. I believe a pricing strategy to match TomorrowNow only erodes our profits, and value prop, while
costing SAP next to nothing.
.3. A Support-only option carries significant financial risk to the rest of our Renewals portfolio when
word gets out: and it always does. On the 'possiblity' of this option alone, lam already getting a .
number of Support-only requests to compete with TomorrowNow. Customers might go to this option
en masse.
4. A Support-only option commoditizes our service (makes it break/fix maintenance only) and
eliminates the core value proposition of our Support agreement: Update/Upgrade rights.
5. If TomorrowNow (SAP) is going to win a bunch of maintenance-only customers with no plans to
upgrade for 5 years, such as Abitibi, then I don't think TomorrowNow will be too long for this world as
SAP won't make profitable money on these customers if they can't get them to implement SAP. (WE
took note of this long ago and someone at SAP is finally starting to look at the profit picture which is
why SAP Americas CEO Bill McDermott challenged every sales rep to get his approval if they are not
positioning the SAP Premium (22%) maintenance option as the standard to all customers.) To be
clear: we want EVERY renewal, but if TomorrowNow fills up with unprofitable laggards, then I'm not
sure that's actually a bad thing in the medium/long run.
That said, as a result of your exposing this to Juergen in the N. America Review and subsequent
PeopleSoft/JDE deep dive, and out of respect for your experience and professional opinion, I believe
a 'second opinion' so to speak, is in order for your position and concerns to be heard..
And given Juergen's knowledge and higher level view of the business and Oracle's strategies, he
may have some insight that warrants overriding my call: always his prerogative. Therefore, I have
copied OSSINFO so that Home Depot*, Olympus**, and Abitibi*** can be briefly reviewed with him.

ORCL00173509

Highly Confidential Information - Attorneys' Eyes Only

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA

Case No.

4:07-cv-01658 PllilEDL

DEFENDANT Exhibit No.
Date Admitted:
By:

A-0367
_
_

Nicole Heuerman, Deputy Clerk

We can follow-up on any questions or concerns after such review. Thanks.
Regards,
Juan
* Home Depot - Paying $1.3m, want $600k and no upgrade rights.
** Olympus - Paying $686k124% net, proposed with standard drop L & re-price $499k117%,want
$300k/10% net and no usage calls.
*** Abitibi - Paying $1.7m/19% net, want 50% reduction to $843k110% net and no upgrade rights.

----- Original Message -----

From: chris madsen appr

To: Jones,Juan ; Torres,Yamilel
Cc: .8J.C.K.Q!JMMJN.S.
Sent: Friday, August 25. 2006 7:27 PM
Subject: [Fwd:FW: Home Depot Executive Summary]

Approved, to reduce support to 600k to keep TN out of the account.
-------- Original Message -------Subject:FW: Home Depot Executive Summary
Date:Tue, 22 Aug 2006 17:05:25 -0600
From:Rick Cummins <ri9.ls;,.g.'!!mmin~.@.Qr~~l~.,~Qm?
To:chris.madsen [e-mail] <chris.madsen [e-mail]>
CC:LACHS ROBERT M <robert.lachs@oracle·.com>
Approved.
Chris,
Home Depot told us last year that they would not be renewing with us this year. We are being aggressive and trying to
get this back trom Tomorrow Now.
Regards,
Rick
Rick Cummins

OllACLE I Support Services
Senior Director. North America Support Services
One Technology Way
Denver, CO 80237
Phone: [phone]
Fax: [phone]

-----Original Message----From: Robert Lachs [mailto:[e-mail]
Sent: Tuesday, August 22,200612:27 PM
To: rick.cummins@or?lcle.com
Subject: Home Depot Executive Summary
RickThis executive summary represents a last resort attempt to salvage this year's support revenue with Home Depot. They
have otherwise, already communicated to me today, their intent to have TomorrowNow support them in the interim as
they migrate HRMS to SAP. The request represents an end-at-life approach.
Approver: HQApps

Highly Confidential Information - Attorneys' Eyes Only

ORCL00173510

Request:

1. Offer End of Life Term to Home Depot whereby, to match offer from TomorrowNow, support fees
are reduced from $1,307,084 (paid last year i€" September renewal), to $600,000. They would
provide cancellation notice that at the end of the renewed annual period, they would expire
support.
2. This support option would not entitle them to new releases/major upgrades. However, within the
annual support period, allow Home Depot the option, if their SAP implementation goes south, to
reinstate the upgrade option to support, by paying the delta of what would have been paid had
they renewed initially at full price, and to pay that delta based on the point at which they are
reinstating, and not retro to the beginning of the support year. We would also waive any additive
50% penalty fee.
Justification:
As is public Knowledge, aside from being a SEBL customer, Home Depot has made a very large enterprise
investment with SAP and is now migrating their lone PeopleSoft Enterprise schedule of products (HRMS) to
SAP.
In fact, last year they had provided cancellation notice, however we forced the renewal to occur, after months
of negotiations, due to their accidental use of support after the previous support period had expired. Ensuring
they do not make the same mistake this year they have come to us in advance of their September 27th
renewal, to inform us of their intent to go to TomorrowNow, as part of this safe passge migration. They have
left the door open, believing there is piece of mind to having Oracle support, if we can match Tomorrowa.€™s
Now pricing and provide the above.
If we cann'otat least offer the above, no more discussions with Home Depot are warranted, and we will
process the cancellation. If we can garner approval for the above request, we will at least get an audience and
a reasonable chance to retain them as a customer for one more year.

Highly Confidential Information - Attorneys' Eyes Only

ORCL00173511