July 2003 Model Of Oracle's Projection Of Declines In License, Maintenance, And Professional Services Costs For PeopleSoft And J.D. Edwards Combined
| The chart shows the July 2003 Model of Oracle's Projection of Declines in License, Maintenance, and Professional Services Costs for PeopleSoft and J.D. Edwards combined (in millions of dollars). |
The total license, maintenance, and professional services costs are show as follows: FY03 1,068, FY05E 246 (77% decline), continuing with a slight decline in FY06E and FY07E, to 224 (79% decline) in FY08E. Oracle does not call these cost declines efficiencies: "these [costs] are directly related to revenue and are thus impacted by movements in revenue. This makes it more difficult to call them 'efficiencies' since there is a mixture of efficiencies and just effects of lower revenue."*
Professional services costs are shown as follows: FY03 764, FY05E 134 (82%), continuing with a slight decline in FY06E and FY07E, to 127 (83%) in FY08E.
Other numbers in this chart are are not readable, but also show a decline.
Notes: Charts exclude FY04 since the July 2003 Model only provides partial year forecast for FY04.
Source: July 2003 Model (Plaintiff's Exhibit 3004). For FY03 J.D. Edwards numbers, source is Oracle spreadsheet dated July 7, 2003 (Plaintiff's Exhibit 901).