Oracle Corporation et al v. SAP AG et al

Filing 793

Declaration of Chad Russell in Support of 790 Memorandum in Opposition, to Defendants' Motions in Limine filed byOracle EMEA Limited, Oracle International Corporation, Oracle USA Inc., Siebel Systems, Inc.. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I, # 10 Exhibit J, # 11 Exhibit K, # 12 Exhibit L, # 13 Exhibit M, # 14 Exhibit N, # 15 Exhibit O, # 16 Exhibit P, # 17 Exhibit Q, # 18 Exhibit R, # 19 Exhibit S, # 20 Exhibit T, # 21 Exhibit U, # 22 Exhibit V, # 23 Exhibit W, # 24 Exhibit X, # 25 Exhibit Y, # 26 Exhibit Z, # 27 Exhibit AA, # 28 Exhibit BB, # 29 Exhibit CC, # 30 Exhibit DD, # 31 Exhibit EE, # 32 Exhibit FF, # 33 Exhibit GG, # 34 Exhibit HH, # 35 Exhibit II, # 36 Exhibit JJ, # 37 Exhibit KK, # 38 Exhibit LL, # 39 Exhibit MM, # 40 Exhibit NN, # 41 Exhibit OO, # 42 Exhibit PP, # 43 Exhibit QQ, # 44 Exhibit RR, # 45 Exhibit SS, # 46 Exhibit TT)(Related document(s) 790 ) (Howard, Geoffrey) (Filed on 8/19/2010)

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Oracle Corporation et al v. SAP AG et al Doc. 793 Att. 37 EXHIBIT KK Dockets.Justia.com TomorrowNow Global Leadership Meeting Lake Tahoe, January 11, 2007 Thomas Ziemen Service Solution Management, SAP AG SAP-OR00007470 Safe Passage Offering Safe Passage is a smooth way consisting of license credit, maintenance and productized migration support for constrained Oracle customers who want to escape uncertain waters and enter the safe haven of SAP. Applications Best-in-class mySAP business software applications Integration of your IT landscape (SAP NetWeaver) Recognition of your previous investments (up to 75% license credit) in Oracle, PSFT, JDE, Siebel or Retek Migration Services A flexible roadmap to the future, founded on SAP NetWeaver* Assessment of current Oracle, PSFT, JDE, Siebel or Retek implementation Free of charge migration tools and predefined content provided by SAP and Partners Maintenance Support for PSFT, JDE or Siebel via SAP subsidiary, TomorrowNow 50% savings on current support and maintenance fees * included with your mySAP license Source: SSM SAP AG 2006, Title of Presentation / Speaker Name / 16 SAP-OR00007485 Management Summary TommorowNow Value Proposition SAP View Hurt Oracle by taking away maintenance revenue Serves as bridge for future SAP license business for (smaller, not SAP-minded customers) Customer View Offer lower priced 24x7 maintenance alternative to PeopleSoft, JD Edwards, and Siebel customers with 50% savings on current support and maintenance fees Provide those customers with a choice to migrate to SAP (at their own pace) TomorrowNow established as cornerstone of the Safe Passage Program Business Case Analysis Safe Passage pipeline (403 opportunities currently in process), TomorrowNow pipeline (816 open opportunities), and revenues justify the cost of the acquisition and additional operating expenses Installed base grown to 216 customers with 228 TomorrowNow customer contracts signed in 2006 (139 new contracts and 89 renewals in 2006; 121 signed in 2005 with 75 new deals and 46 renewals) In total 41.4 million reduction of Oracle maintenance revenue since acquisition of TomorrowNow 9.0 million TomorrowNow stand-alone revenue in 2006 ( 3.5 million in 2005) Field: Another year needed to finalize global alignment with SAP Sales organization Lessons Learned Marketing: Oracle Disruption Campaign Q3/2006 resulted in high lead success rate for TomorrowNow, i.e. high return on marketing investments Oracle Turn up the Heat Campaign resulted in 150+ opportunities for TomorrowNow (17 contracts signed) F&A: Globalization of business in cooperation with SAP regions is a challenge and was underestimated as such Need to actively manage regional shared services for TNow TomorrowNow is a strategic investment and serves as strategic weapon against Oracle: Conclusion Take away maintenance revenue from Oracle Create pre-pipeline of future SAP customers TomorrowNow still operates at a loss in 2006 but Break-even is expected for 2008 after completion of globalization and business scoping in 2007 (in line with board assumption to become a profitable business within 2-3 years after acquisition) SAP AG 2006, TNow Acquisition Monitoring, 2 SAP STRICTLY CONFIDENTIAL SAP-OR00007497 KPI Framework TomorrowNow (Status December 31, 2006) TomorrowNow Opportunities (in CoD) 24 9 2 28 B ooked Won 74 816 In Process D i sconti nued Lost Cumulated Number of New Customers & Client Contracts in 2006 2005: 75 new customer contracts 121 total customer contracts 228 91 97 142 139 27 40 Q1/06 54 Q2/06 Q3/06 Q4/06 New Customer Contracts Total Customer Contracts 2006 Contract Volume (in M) 32,7 21,4 6,4 3,1 Q1/06 12,2 5,5 8,6 13,6 Cumulated* Maintenance Volume Taken Away From Oracle in 2006 (in M) 23,0 28,0 32,3 40,0 41,4 15,0 18,0 19,0 Q2/06 Q3/06 Q4/06 Q1/06 Q2/06 Q3/06 10.8M maintenance volume lost for Oracle in 2005 Q4/06 Plan Actual Multi-Year Contracts included Multi-Year Contracts excluded * Since Acquisition (doubled contract volume of newly signed TomorrowNow deals) Cost vs. Revenue in 2006 (Cumulative in M) 20,9 14,6 9,9 4,8 1,9 3,8 Q2/06 6,1 9,0 Customer Retention TR*IM Index 107 Overall Satisfaction 8.5 Acc. Mgmt: 8.7 S&S: 8.8 95% as References 97% likely Renewal rate Q1/06 Q3/06 Q4/06 Cost Revenue SAP AG 2006, TNow Acquisition Monitoring, 3 SAP STRICTLY CONFIDENTIAL SAP-OR00007498 Global Organization and Governance Model Andrew Nelson / Greg Tomb / Mark White TNow Board of Directors TNow President & CEO Andrew Nelson SAP Board Area GSS Gerd Oswald / Bernd Welz SAP TNow Global Biz Owner Thomas Ziemen Total No. of Offices: 10 Total No. of Employees: 95 by end of 2005 (+170%) 157 by end of 2006 (+ 65%) 209 by end of 2007 (+ 30%) TNow EMEA Entities / Offices: Amsterdam (NL) Maidenhead (UK) Employees: 14 by end of 2005 21 by end of 2006 Maidenhead Denver A tl a n t a Amsterdam P l e as o n t o n TNow Americas Brya n Entities / Offices: Bryan (USA) Mexico City Atlanta (USA) Denver (USA) Pleasonton (USA) Mexico City (Mexico) Sao Leopoldo (BRA) - planned for 2007 S i n g a p or e TNow APA Employees: 72 by end of 2005 116 by end of 2006 (Sao Leopoldo) Entities / Offices: Singapore Sydney Employees: 9 by end of 2005 20 by end of 2006 Sydney SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 4 SAP-OR00007533

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