Oracle Corporation et al v. SAP AG et al
Filing
657
Declaration of Zachary J. Alinder in Support of 649 MOTION for Partial Summary Judgment filed byOracle International Corporation, Oracle USA 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, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54 - 1, # 55 Exhibit 54 - 2, # 56 Exhibit 55, # 57 Exhibit 56, # 58 Exhibit 57, # 59 Exhibit 58, # 60 Exhibit 59, # 61 Exhibit 60, # 62 Exhibit 61, # 63 Exhibit 62, # 64 Exhibit 63, # 65 Exhibit 64, # 66 Exhibit 65, # 67 Exhibit 66, # 68 Exhibit 67, # 69 Exhibit 68, # 70 Exhibit 69, # 71 Exhibit 70, # 72 Exhibit 71, # 73 Exhibit 72, # 74 Exhibit 73, # 75 Exhibit 74, # 76 Exhibit 75, # 77 Exhibit 76, # 78 Exhibit 77, # 79 Exhibit 78, # 80 Exhibit 79, # 81 Exhibit 80, # 82 Exhibit 81, # 83 Exhibit 82, # 84 Exhibit 83, # 85 Exhibit 84, # 86 Exhibit 85, # 87 Exhibit 86, # 88 Exhibit 87, # 89 Exhibit 88, # 90 Exhibit 89, # 91 Exhibit 90, # 92 Exhibit 91, # 93 Exhibit 92, # 94 Exhibit 93, # 95 Exhibit 94, # 96 Exhibit 95, # 97 Exhibit 96, # 98 Exhibit 97, # 99 Exhibit 98, # 100 Exhibit 99, # 101 Exhibit 100, # 102 Exhibit 101, # 103 Exhibit 102, # 104 Exhibit 103, # 105 Exhibit 104, # 106 Exhibit 105, # 107 Exhibit 106, # 108 Exhibit 107, # 109 Exhibit 108, # 110 Exhibit 109, # 111 Exhibit 110, # 112 Exhibit 111, # 113 Exhibit 112, # 114 Exhibit 113, # 115 Exhibit 114, # 116 Exhibit 115, # 117 Exhibit 116, # 118 Exhibit 117)(Related document(s) 649 ) (Howard, Geoffrey) (Filed on 3/3/2010)
<![CDATA[
Oracle Corporation et al v. SAP AG et al
Doc. 657 Att. 44
Case4:07-cv-01658-PJH Document657-45
Filed03/03/10 Page1 of 18
EXHIBIT 45
Dockets.Justia.com
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Business Case TomorrowNow
Gerd Oswald
February 18, 2004
BOARD PRESENTATION CONFIDENTIAL
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Executive Summary: TommorowNow
Objectives of Today's Presentation
Q1: 10 additional FTEs in US (Denver) TEUR 1.300 Q2: 16 additional FTEs. Thereof Ireland 6 FTEs (TEUR 270); US 4 FTEs (TEUR 400); India 6 FTEs (TEUR 126)
Decision Meeting
I
Approval of additional headcount of 26 FTEs for Q1 and Q2 only. Total cost for full year 2005: TEUR 2,1 Mill.
Context customer base consists of 12.500 customers, approximately 2000 joint SAP/PSFT customers 500 new customers in 2005 reflects only 4% of PSFT customer base Expected 350 customers on core TNow business; additional 150 on SAP`s Safe passage offering Revenue will grow to 11,4 Mill in 2005 and will be more than trebled in 2006 ( 36 Mill)
PSFT`s
Recommended Approach Partly release of additional budget request: 2,1 Mill for 26 FTEs (total additional budget request for full year 2005 is 5,5 Mill; 113 FTEs)
Benefits/ Rationale/ Impact With additional 26 FTE`s TNow is able to support 1100+ customers globally Generate additional Maintenance Revenue for SAP Use Maintenance offering as enabler for future licences revenue
Tradeoffs/ Risks to SAP Avoid conflicts with intellectual property of PSFT (Oracle) Convincing customers on a global base for scalability ncrease HC costs
© SAP AG 2004, Title of Board Presentation, Author, BOARD CONFIDENTIAL / 1
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Proposed Action Plan
Issue Risk of losing approx. 500 customers as well as endangering an additional revenue potential of approx. 12 Mill. in 2005 Action To Be Taken Board approval needed for hiring of 26 FTEs asap Owner Thomas Ziemen Due Date asap
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Board Decision Summary: Topic for Today
FOR MEETING MINUTES Decision 1. Approval for 26 additional FTEs; Costs for full year 2005: 2,1 Mill 2. ... 3. ... 4. ... 5. ... Yes No Defer Refinements/ Comments Approved by Werner Brandt ... ... ... ... ... ... ... Owner
...
Implementation Highlights Overall Board sponsor Overall Implementation owner: Next follow-up with Board Next major milestone(s) 30.06.2005; all hires for Q1 and Q2 are on board and active? Gerhard Oswald Thomas Ziemen
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Back-up Materials
TomorrowNow Business Case Divider Page Section B Divider Page Section C Divider Page Section D
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TomorrowNow Business Case
Version 1.2
Service & Support Operations February 18, 2005 SAP AG
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Investment overview 2005
TomorrowNow Investment Overview 2005
in TEUR
TomorrowNow
Migration
Integration
Total
External Revenue TOTAL EXPENSES Contribution Profitability
11.403 1 0 .2 2 1 1.182 10%
495 2 .0 0 0 -1.505 -304%
480 1 .1 0 0 -620 -129%
12.378 1 3 .3 2 1 -943 -8%
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Summary of TNow Business Case/Model
Business Case PSFT`s customer base consists of 12.500 customers, approx. 2000 joint SAP/PSFT customers 500 new customers in 2005 reflects only 4% of PSFT customer base Expected 350 on core TNow business; additional 150 on SAP`s Safe passage offering Revenue will grow to 11 M in 2005 and will be more than trebled in 2006 ( 36 M) Hiring 113 FTE to fulfill customers expectation (19 FTE per 100 Customers) in 2005 (add. 130 in 2006)
Business Model
TomorrowNow TNow TNow SAP SAP
serves as service delivery unit
offers mainly 17% product support offering will also include Consulting Services
does Lead Generation for TNow have a Support Cooperation with TNow customers signs contract with TNow Delivery done by TNow customer gain option on mySAP ERP licenses contract
PSFT
Service PSFT
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TomorrowNow TOP KPIs
Business
Number of Customers
1.000
+10 0 % +22 1 %
Maintenance Revenue (kEUR)
36.650
Key assumptions · # of customers Year TNow custom. = 10% fee 350 450 Safe Passage cust. = 17% fee 150 550
500
+82 6 % +27 0 %
54 2004
200
+10 0 %
400
+46 0 %
11.403 3.869 2005
+70 %
2.036
2006
+90 %
6.577
2005 2006
2005
2004
2006
·Average deal size per customer in 2005: 23kEUR ·Currency Exchange Rate USD / EUR: 76,92308
Original Plan by TomorrowNow SAP Plan based on Safe Passage
Original Plan by TomorrowNow SAP Plan based on Safe Passage
Headcount Release Plan & Budget 2005
APA E ME A US
in # of FTE
+113 FTE
+26 FTE released by Werner Brandt
148 (+47)
24 (+12)
Key assumptions · Transition Rate of customers to needed FTE TNow: 20 FTE for100 Customer (used: 19 FTE) · Currency Exchange Rate USD / EUR: 76,92308
101 (+40)
12 (+6) 12 (+6)
23 (+11)
61 (+16) 45 (+10)
35 45 (+10) Quarter 1
+6 +6
49 (+4) Quarter 2
77 (+28)
101 (+24)
Tasks of additional 113 FTE · 30 FTE Primary Support Engineer · 83 FTE Development Support Engineer Total Year 05 4.725 5.496 10.221 (+416%) (Compared to 2004) Actual 04 1.981 Prof. 05 10% Prof. 04 3%
in kEUR
Ac tual FTE
Quarter 3
Quarter 4
Baseline (incl. Salary incr.) Additional Costs Total Costs 2005
1.181 338 1.519
1.181 605 1.786
1.181 1.725 2.906
1.181 2.828 4.009
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Detailled Headcount Release Plan
Budget 2005 per Quarter Quarter 1
FTEs kEUR
Location Bryan
Actual FTE 35
TY Baseline Budget 2005 4.725
Quarter 2
FTEs kEUR
Quarter 3
FTEs kEUR
Quarter 4
FTEs kEUR
Total Year Budget 05
FTEs kEUR
to Baseline
FTEs kEUR
35 10
1.181 338
35 14
1.181 473
45 6 22 4
1.519 203 743 135
55 12 26 8
1.856 405 878 270
55 12 26 8
5.738 608 2.430 405
20 12 26 8
1.013 608 2.430 405
TomorrowNow
Atlanta Denver Pleasonton
Total US
Madrid Dublin
35
4.725
45
1.519
49
6
1.654
90
77
6 6
2.599
128 90
101
12 11
3.409
255 165
101
12 11
9.180
383 345
66
12 11
4.455
383 345
Total EMEA
Malaysia Bangalore
6
6 6
90
42 42
12
6 6
218
48 42
23
12 12
420
96 84
23
12 12
728
144 168
23
12 12
728
144 168
Total APA
12
90
24
180
24
312
24
312
Grand Total
35
4.725
45
1.519
61
1.786
101
2.906
148
4.009
148
10.221
113
5.495
+10 FTE
+16 FTE
+40 FTE
+47 FTE
Released by Werner Brandt
Remarks to Location Strategy: Selected locations offer ressources with Peoplesoft / JDE skills. Start hiring people where they are located today. Looking for cost savings, efficiency and synergies in 2006 and 2007.
Additional Cost Budget for hirings in 2005
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Summary Business case TNow
Business Case Old P&L 2004 Actuals 2005 Plan
Tomorrow Now
Business Case New 2005 Plan total Q1 873 -1.519 -646 -74%
Thomas Ziemen/Gerd Oswald
2006 Plan
2006 Plan Q4 5.333 -4.009 1.324 25% total
Q2 1.847 -1.786 61 3%
Q3 3.350 -2.906 444 13%
Revenue OPEX >> Operating Income % Interest, Tax, Fin. Income/Loss, ... >> Total Profit / Loss %
2.036 -1.963 73 3,6% -32,9 40,5 2,0%
3.869 -3.880 -11 -0,3% 9,0 -1,8 0,0%
6.577 -6.653 -76 -1,2% 38,4 -37,9 -0,6%
11.403 -10.221 1.182 10%
Other CAPEX
Headcount eop
35
148
45
61
101
148
info about customers, customer base, new-old customers, ... ... total customers (eop) 54 thereof TNow 54 thereof Safe Passage ... new cutomers thereof TNow thereof Safe Passage Average deal size 38
500 350 150 446 23
104 104 50 50 0
204 174 30 100 70 30
334 254 80 130 80 50
500 350 150 166 96 70
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Backup
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PSFT Migration Service: Business Opportunity
Amounts in T Q1 Costs for migration program (development & maintenance) Number of migration projects (customer) Revenue of migration projects (number of customer x 15 T per package) Contribution (revenue - cost) -500 0 Q2 -500 5
2005
Q3 -500 13 Q4 -500 15
Sum
2006
Q1 -50 20 Q2 -50 25 Q3 -50 30 Q4 -50 35
Sum
2007
Q1 -25 40 Q2 -25 50 Q3 -25 60 Q4 -25 70
Sum
-2000 33
-200 110
-100 220
0 -500
75 -425
195 -305
225 -275
495 -1505
300 150
375 225
450 300
525 375
1650 1450
600 575
675 650
900 875
1050 1025
3225 3125
In T 6 0 0 0
5000 4000 3000 2000 1000 0
Cos t s for migration program (development & maintenance) Revenue of migration projects (number of customer x 15 T per package)
Break-Even
Q1
Q2 Q3 2005
Q4
Q1
Q2 Q3 2006
Q4
Q1
Q2 Q3 2007
Q4
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PSFT Integration Service: Business Opportunity
Amounts in T Q1 Costs for migration program (development & maintenance) Number of integration projects (customer) Revenue of migration projects (number of customer x 10 T per package) Contribution (revenue - cost) -275 3 Q2 -275 5
2005
Q3 -275 15 Q4 -275 25
Sum
2006
Q1 -50 30 Q2 -50 30 Q3 -50 30 Q4 -50 30
Sum
2007
Q1 -25 30 Q2 -25 30 Q3 -25 30 Q4 -25 30
Sum
1100 48
-200 120
-100 120
30 -245
50 -225
150 -125
250 -25
480 -620
300 250
300 250
300 250
300 250
1200 1000
300 275
300 275
300 275
300 275
1200 1100
In T 3 5 0 0
3000 2500 2000 1500 1000 500 0
Cos t s for integration program (development & maintenance) Revenue of integration projects (number of customer x 10 T per package)
Break-Even
Q1
Q2 Q3 2005
Q4
Q1
Q2 Q3 2006
Q4
Q1
Q2 Q3 2007
Q4
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Detailed Budget Overview Migration/Integration 2005
Budget Migration Budget Integration Budget Total
Cost Types
Internal Development Costs (Base Line costs) External Development Costs (3rd-party support for development) Internal Cost of Infrastructure & Sales (incl. Marketing & Events) Other 3rd Party Expenses
(in 1000) 1000 630 300 70 2000
(in 1000) 400 400 250 50 1100
(in 1000) 1400 1030 550 120 3100
Sum
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Presentation Content: Checklist
Please include the Executive Summary, Action Plan, and the Board Decision Summary, and no more than 10 pages of presentation content
Checklist of questions to answer Issues
What issues need to be resolved? Why does the decision have to be made by the Board?
Impact
What are the core benefits of the decisions? What are the major risks, tradeoffs, or possible negative implications of the decisions? What historical decisions may be affected and how should this be managed? What other groups may be affected and how should this be managed? Are today's decisions consistent with SAP's strategy?
Resources
What resources are required? Is there an impact to the budget?
Implementation
Who is responsible for successful execution and follow-up? What are the actions required? When will they occur? Who is responsible for each? (see template provided) What internal and external stakeholders must be involved? How must they be engaged? Who has reviewed and approved of these recommendations?
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