•<Insert Picture Here>

George JacobGroup Vice President, CRM Applications

Real ROI: The Business Case for Upgrading to the Latest Release of Oracle’s Siebel CRM

Folia GraceVice President, Applications Product Marketing

Self-Service

• Communications E-Commerce

• Public Sector online case management applications

• Retail & Airline loyalty management

Customer Loyalty

• Complete loyalty management solution

• Personalized, relevant customer promotions

• Comprehensive point promotion and redemption

Deep Industry

• Comprehensive E-Commerce solution

• Enhanced online customer self-service solution

• Uses Fusion Middleware for flexible architecture

Announcing Siebel 8.1.1Complete CRM

Support Above and Beyond

Industry Standard Apps Unlimited

Previous two releases Unlimited support on key releases

No patches afterwardsSecurity and bug fixes as needed

Browser certifications

Forced upgrades No forced upgrades

Charge for new functionalityNo charge for new functionality: e.g.

Task-Based UI, Business Rules, Application Deployment Manager

* OEM support at Oracle’s discretion

Applications Unlimited for Oracle’s Siebel CRM

ReleasePremier Support

EndsExtended Support

Ends  Sustaining

Support Ends  

8.0 Jan-12 Jan-15 Indefinite

7.8 May-10 May-13 Indefinite

7.7 Sep-09 Sep-12 Indefinite

7.5.3 Dec-08 Dec-10 Dec-12

7.0 Dec-08 Not Offered Not Offered

6 N/A Dec-07 Indefinite

* OEM support at Oracle’s discretion

Why Would You Upgrade?

I don’t want to disrupt my business…I don’t want to disrupt my business…

I can’t justify an upgrade…I can’t justify an upgrade…

Our current release is working just fine…Our current release is working just fine…

It’s too expensive…It’s too expensive…

There’s no value in upgrading…There’s no value in upgrading…

‘Like for Like’ Upgrade

Deployment Profile Medium Size (5,000 users)

Medium Customization

Upgrading from Siebel 7.5 to Siebel 8

1993 Toyota Camry 2008 Toyota Camry

Reducing The TCO of Siebel ApplicationsCost Factor 7.0 7.5 7.7/7.8 8.0/8.1

Deployment $0.010 $0.009 $0.007 $0.005

Configuration $0.32 $0.294 $0.234 $0.176

Operations $0.21 $0.189 $0.141 $0.099

Upgrade $0.04 $0.036 $0.029 $0.025

Performance $0.08 $0.060 $0.057 $0.034

Usability $0.11 $0.084 $0.060 $0.042

Test Automation

$0.05 $0.046 $0.028 $0.026

Integration $0.18 $0.144 $0.115 $0.081

TCO Ratio $1.00 $0.86 $0.67 $0.49

Scenario

• Deployment of medium size and complexity (5,000 users)

• Configuration and operations for one year

• TCO cost based on effort (person hour)

* Actual improvements realized will vary by customers, depending on factors such as deployment size, scope, and the amount of customization changes.

TCO Savings

51%

43%

27%

Siebel 7.0 to 8.0

Siebel 7.5 to 8.0

Siebel 7.7/7.8 to 8.0

Download Siebel CRM Upgrade ROI Calculator (ID 738922.1) on OracleMetaLink 3

ROI Calculator

* Actual improvements realized will vary by customers, depending on factors such as deployment size, scope, and the amount of customization changes.

Download Siebel CRM Upgrade ROI Calculator (ID 738922.1) on

OracleMetaLink 3

‘Like for Like’ Upgrade Scenario

Maintenance Costs Siebel 7.5: $2.5 million/year

Siebel 8.1: $1.3 million/year

Deployment Profile Medium Size (5,000 users)

Medium Customization

Upgrading from Siebel 7.5 to Siebel 8

Upgrade Costs $550,000*

Savings IT/CFO Savings: $1.2 million/year

Total 3 Year Savings: $3.05 million

Payback in 6 months

* Upgrade costs include software and manpower only. Savings based on hardware and software costs over a 3 yr. period.

Decrease Deployment CostsSiebel Application Deployment Manager

Customer Feedback

– “The backup/restore capabilities alone will be the reason for us to use it”

– “…manual tasks will be replaced to a great extent and that should lead to better accuracy.”

Reduce personnel requirements by 60%

Decrease deployment time by 40%

Automate manual processes

Decrease upgrade costs

Make changes more quickly

Reduce downtime

Reduce Configuration CostsSiebel Business Rules Engine

Customer Feedback

“The new business rules engine offered in Siebel 8.0 is helping Verizon Business reduce customization and the complexity of the application. This, in turn, significantly reduces the cost of configuration and improves the performance and maintainability of their Siebel Business Applications deployment.”

–Accenture

Siebel 8.x Improves Hardware ROI

0%

20%

40%

60%

80%

100%

120%

140%

7.8 8.0

30% scalability gains with current HW architecture

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

7.8 8.0

Intel: 3X more users vs. 7.8 on same-price equipment

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

7.8 8.0

On Sun: 4.35X more users vs. 7.8 on same-price equipment

0%

50%

100%

150%

200%

250%

300%

7.8 8.0 8.0

8.0 session-pooling scalability >200% vs. standard O.M.

Sta

nd

ard

O.M

.

Se

ss

ion

-Po

ole

d O

.M.

Sta

nd

ard

O.M

.

‘Value Add’ UpgradeThe Same Company Upgrades with New Functionality

Deployment Profile Adding Real-time Decisioning and Pricing Management

Medium Size (5,000 users)

Medium Customization

Upgrading from Siebel 7.5 to Siebel 8

1993 Toyota Camry 2008 Lexus LS 600H

Real-Time DecisioningSmall Decisions Add Up

• 8% sales lift overall at BT

• 40% churn reduction at Canal+

• Major insurer– $25 additional annual revenue per

policy – Reduced cycle time for testing on

new products / messages from 3 months to days

Real Results with Pricing Management

• “These projects can raise revenue by 1% to 2%, increase gross margin by 10% to 15%, and increase contribution margin by up to 50%.”*

• Provide bottom line benefits averaging $3 million to $45 million, with some projects delivering as much as $200 million

*Source: AMR Research, How To Select the Right B2B Price Management Vendor, June 29, 2005

‘Value Add’ Upgrade Scenario

Deployment Profile Medium Size (5,000 users)

Medium Complexity

Upgrading from Siebel 7.5 to Siebel 8

Adding RTD and Pricing Management

Upgrade Costs $550,000

Maintenance Savings Total 3 Year Savings: $3.05 million*

* Savings based on hardware and software costs

RTD Value 3 Year Sales Uplift: $12 million

License/deploy: $1.5 million

Pricing Mgt. Value 3 Year Sales Uplift: $5.5 million

Cost to implement: $1.06 million

Results Total Cost: $3.11 million

3 Year Sales Uplift/Savings: $21 million

Payback in 5.3 months

ROI Calculator

* Actual improvements realized will vary by customers, depending on factors such as deployment size, scope, and the amount of customization changes.

Download Siebel CRM Upgrade ROI Calculator (ID 738922.1) on

OracleMetaLink 3

Stay Current on the Latest on Oracle Applications by Tuning in to AppCasts at www.oracle.com/appcasts or via iTunes

Product NewsCustomer InterviewsPartner Highlights

Email: folia.grace@oracle.com