GOVERNMENT EXHIBIT P4023-A
Regression on Oracle's Incremental Percentage Discounts - Effect on incremental discount
- ebiz discount removed from base price
- Effect of competitors
- Customer annual revenues
- eBusiness Suite
- Oracle applications user
Source of Data - Oracle discount approval forms and sales representative surveys
Incremental Percentage Discount Regression
Oracle Price Discount Regressions Dependant variable: (Total Discount minus ebiz Discount) 1 - ebiz Discount) | | (1) | (2) | PeopleSoft | 0.076 (0.042) [.071] | 0.136 (0.059) [.026] | JD Edwards | 0.011 (0.061) [.861] | 0.055 (0.091 ) [.553] | SAP | 0.106 (0.061) [.088] | 0.164 (0.076) [.037] | Siebel | 0.050 (0.060) [.406] | 0.048 (0.084) [.568] | Niche | -0.011 (0.039) [.776] | 0.022 (0.066) [.734| | Net License Revenue | 6.47E-8 (2.04E 8) [.002] | 4.79E-8 (2.30E 8) [.045] | Customer's Annual Revenue | 3.01E-5 (1.40E-5) [.034] | 2.49E-5 (2.02E- 5) [.226] | EBS | 0.012 (0.040) [.769] | 0.073 0.059 [.225] | Previous Apps Customer | 0.025 (0.046) [.589] | 0.040 (0.064) [.532] | Constant | 0.268 (0.051) [.001] | 0.245 (0.090) [.010] | R2 | 0.234 | 0.344 | N | 122 | 47 |
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| - The presence of PeopleSoft causes Oracle to offer additional discounts of approximately 8 to 14 percentage points
- Two regressions translate into 13% and 25% price decreases, respectively
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Table One Oracle Price Discount Regressions Dependent variable: (Total Discount minus ebiz Discclunt) / (I - ebiz | | (1) | (2) | PeopleSoft | 0.076 (0.042) [071] | 0.136 (0.059) [.026] | JD Edwards | 0.011 (0.061) [.861] | 0.055 (0.091) [.553] | SAP | 0.106 (0.061) [.088] | 0.164 (0.076) [.037] | Siebel | 0.050 (0.060) [.406] | -0.048 (0.084) [.568] | Niche | -0.011 (0.039) [-776] | 0.022 (0.066) [.734] | Net License Revenue | 6.47E-8 (2.04E-8) [.002] | 4.79E-8 (2.30E-8) [045] | Customer's Annual Revenue | 3.01E-5 (1.40E-5) [.034] | 2.49E-5 (2.02E-5) [.226] | EBS | 0.012 (0.040) [.769] | 0.073 0.059 [.225] | Previous Apps Customer | 0.025 (0.046) [.589] | 0.040 (0.064) [.532] | Constant | 0.268 (0.051) [.001] | 0.245 (0.090) [.010] | R2 | 0.234 | 0.344 | N | 122 | 47 |
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Notes: Data are from Oracle discount approval forms and Oracle 2002 and 2003 Fiscal Year, North American Sales Representative Surveys. Standard errors are in parentheses; p-values are in brackets. |