CLIENT XYZ

Confidential www.slc.us.com SLC Review Methodology

SLC evaluated your environment and developed this analysis by reviewing the information you provided:

1) Your reports with environment hardware configurations 2) Your Oracle support stream and entitlements 3) Oracle Product Listing and installations 4) VMware vCenter total licensable hosts 5) Exadata server information 6) Physical Server information

** SLC has enough information to estimate license position and make recommendations for improvements and risk mitigation**

Confidential www.slc.us.com The Opportunities – Support Health

Support Discount Health:

• Big portion of Technology licenses are unhealthy ~$270K • Example – Database Enterprise edition 11 licenses are $1,000 over list each • Potential Savings $263k

Best Practice – Know your deployment • Could make sense to isolate these licenses and cancel them.

Non - Applicable / • Option to purchase new at higher Discount Less than 25% 25-60% Discount Discount more than 60% Total Oracle Product Set: Incomplete discounts Technology: $ 263,315.48 $ 125,324.21 $ 206,768.73 $ 132,045.16 $ 727,453.58 Middleware: $ - $ 92,084.31 $ - $ 44,646.28 $ 136,730.59 • Option to migrate other license Applications: $ - $ - $ - $ 243,829.53 $ 243,829.53 PeopleSoft $ - $ - $ - $ 238,763.13 $ 238,763.13 metrics that may not be in use Hyperion $ - $ - $ - $ - $ - • Avoid multi-year support renewals! Seibel $ - $ - $ - $ - $ - Total by Disc. Range:$ 263,315.48 $ 217,408.52 $ 206,768.73 $ 659,284.10 $ 1,346,776.83

Confidential www.slc.us.com Potential VMware Risks

• Servers are host servers within same vCenter – Oracle policy states that you must license any installed product for all servers within the same vCenter for version 5.x and for all vCenters for version 6.x • Oracle usage would be based on complete host list and equates to 7105 licensable cores • Example of licensable core: Server with 2 Intel CPU’s with 10 cores each = 2 x 10 x .5 = 10 Licensable Cores

Best Practice – Understand Oracles policies both hidden and stated about VMware and isolate Oracle installs where possible

Licenseable vCenter Name Cores • It is highly likely that your vCenter would require CVGAPVBVCS01 1752 more Licensable Processors which has the CVGWPVCS55 2924 CVGWPVCS55 (ANNUITY) 328 potential to drive compliance to $500M + Datacenter (auto generated) 424 • All processor based products must be licensed for FKLESX900 656 entire vCenter – even if only used in one instance! GAIG SQL Cluster 96 MCG 397 • Current data usage data shows 7105 licensable Mexico 120 cores for database alone which is driving your Singapore (External) 80 $300+ M in compliance findings Strategic Comp 40 Summit vCenter 288 TOTAL: 7105

Confidential www.slc.us.com Technology Inventory Summary Technology - Processor QTY Diagnostics Pack - Processor Perpetual 12 Oracle Advanced Security - Processor Perpetual 46 Enterprise Edition - Processor Perpetual 49 Oracle Database Standard Edition One - Oracle 1-Click Ordering Program - Processor Perpetual 2 Oracle Partitioning - Processor Perpetual 38 Oracle Real Application Cluster - Processor Perpetual 36 Tuning Pack - Processor Perpetual 11 Technology - Old Metrics (NUMS, etc) QTY Oracle Database Enterprise Edition - Named User Multi Server 1104

• Mismatch of licenses – Diagnostics and Tuning don’t match, etc • Old metrics – NUMS – Still in use? Evaluate use based on UPU counts and user minimums • Processor Based Metric in VMware - requirement for 7105 licenses for DB + options such as Diagnostics and Tuning • Named User Plus Perpetual licenses are owned but with Vmware you can’t mix metrics • Potential Risk $100M+

Best Practice – Move DB servers to physical if possible. Know Oracle VMware policies. Know what options are in use, where and why. (Big LMS focus around db options)

Confidential www.slc.us.com Exadata Environment Summary

EXADATA CONFIGURATIONS

Exadata Configurations:

§ Eighth Rack: 24 Licensable Cores Ø 2 Servers each with 2 processors with 12 cores

§ Quarter Rack: 24 Licensable Cores Ø 2 Servers each with 2 processors with 12 cores

Best Practice – • Assign licenses to Exadata configurations – map database to options • Document all trusted partitions or OVM deployments if used to restrict core counts • Review database option use including RAC

Confidential www.slc.us.com Middleware Inventory Summary

MiddleWare QTY Business Intelligence Mobile - Named User Plus Perpetual 200 Business Intelligence Suite Enterprise Edition Plus - Named User Plus Perpetual 200 Oracle WebLogic Server Enterprise Edition - Named User Plus Perpetual 200 Oracle WebLogic Server Standard Edition - Named User Plus Perpetual 100 Oracle WebLogic Suite - Processor Perpetual 18 SOA 0 • BEA WebLogic installs present • Foundation suite present as reported by Service Now ($300k per proc) • SOA suite present on servers as reported by ServiceNow • Installs show up on Laptops - WebLogic • Potential risk $100M+

Best Practice – Know what products are actually installed and where. Know what developers are installing on workstations and laptops. Install correct versions where needed. Understand Oracles policies around VMware

Confidential www.slc.us.com Mission Control Summary

• Found 275 servers with Mission Control installed – See Table below • What do these service? Are these related to your PeopleSoft or middleware Deployment? • Servers also appear to be in Vmware, which greatly increases the risk • Potential risk $100M+ Table: Server Names identified with JMC components Best Practices – • Understand how Java SE / Commercial Products are used • Document use to Oracle licenses that include Java rights • Remove any unused and unwanted component • License what is needed, but understand the metrics! • Know the Oracle policies around vmware and how it relates to use!

Confidential www.slc.us.com JAVA COMMERCIAL PRODUCTS LICENSING

Here are links to Oracle’s licensing of the certain elements of Java:

http://www.oracle.com/technetwork/java/javase/terms/products/index.html

http://www.oracle.com/technetwork/java/javase/documentation/java-se-product-editions-397069.pdf

1. Oracle considers each install of the items contained in the blue box as potential use cases for licensing – These are the “Applicable Releases” we are evaluating – and these are the only Java releases that contain the features described below.

2. If Oracle determines an Applicable Release is installed, they then ask the client to provide evidence of use of the “Features” listed in the red box. These are the only features by release that are considered “Commercial Products”.

3. Oracle will then require licensing for any server leveraging the licensable features of their software (Table 1-1 in the links provided above). Oracle licenses these products by Processor or Named User Plus, just like your database licenses.

4. Our clients discover the Applicable Releases with some sort of asset management tool or with assistance from their internal knowledgeable SME’s.

Confidential www.slc.us.com Oracle Products with Java Components

Oracle licenses that do have the (Full Use or Restricted Use) rights granted to make use of one or more Java software programs:

• WebLogic Server Standard Edition (***) includes the right to make use of Java Standard Edition. This means that if you purchased a Weblogic Server Standard Edition, you are entitled to make use of Java SE, including its components: The (JDK), including the JavaFX Software Development Kit (SDK), Java Runtime Environment (JRE), (Server and regular packages), JavaFX Runtime and JRockit JDK • WebLogic Server Enterprise Edition (***) includes the right to make use of Java SE Advanced (restricted however for WebLogic Server. Java SE is included for client applications that access WebLogic Server). Java SE Advanced consists of Java SE and JRockit Mission Control, plus restricted use licenses of Weblogic Server Standard Edition and Coherence Standard Edition One. • WebLogic Suite (***) includes the right to make use of Java SE Suite (restricted for WebLogic Server, Oracle Containers for J2EE and Coherence. Java SE is included for client applications that access these server components). Java SE Suite consists of Java SE Advanced and JRockit Real Time. Additional to these components, Java SE Suite comes with the same restricted use licenses as Java SE Advanced and the same limitations (meaning restricted use licenses of Weblogic Server Standard Edition and Coherence Standard Edition One). • Internet Enterprise Edition (***) includes the right to make use of Java Standard Edition. This means that if you purchased an Internet Application Server Enterprise Edition license, you are entitled to make use of Java SE, including its components: The Java Development Kit (JDK), including the JavaFX Software Development Kit (SDK), Java Runtime Environment (JRE), (Server and regular packages), JavaFX Runtime and JRockit JDK. • GlassFish Server includes the right to make use of Java Standard Edition. This means that if you purchased a GlassFish Server license, you are entitled to make use of Java SE, including its components: the Java Development Kit (JDK), including the JavaFX Software Development Kit (SDK), Java Runtime Environment (JRE), (Server and regular packages), JavaFX Runtime and JRockit JDK • Coherence Standard Edition One, Coherence Enterprise Edition andCoherence Grid Edition licenses all do include the (Full Use) right to make use of Java Standard Edition. • WebCenter Universal Content Management includes the right to make use of Java Standard Edition. • WebLogic Suite for includes the right to make use of Java SE Suite (restricted for WebLogic Server, Oracle Containers for J2EE and Coherence. Java SE is included for client applications that access these server components). Of course these Weblogic Suite licenses are restricted as well to be only used for Oracle Applications itself. • Coherence Enterprise Edition for Oracle Applications includes the right to make use of Java Standard Edition. • All PeopleSoft (***) licenses do include the (restricted use) right to make use of Java Standard Edition, as it is part of the included PeopleTools component. • Historically, old BEA licenses also included the right to make use of the core Java 2 Enterprise Edition (J2EE) features. Additionally, Oracle JRockit JVM came included with any BEA WebLogic Server installation.

*** These product families may be owned – Pay close attention to those servers that access your middleware or have PeopleSoft installed

Confidential www.slc.us.com Application Inventory Summary

Applications QTY Documaker Standard Edition - $M in Written Premium Perpetual 750 Expansion - Reported Revenues Perpetual 0 Oracle Advanced Support Gatewa 1 Oracle Insurance Compliance Forms Tracker - Application User Perpetual 32 Oracle Planning and Budgeting Cloud Service - Hosted Named User Product Bundle B73946 200 Skywire Tracker Software Line of Business - Each Perpetual 15

• Products with Enterprise Metrics ( $M Written Premium or Reported Revenues): • Validate License Verification Form (LVF) sent annually by Oracle – DATA MISSING • Document collection process for annual review • Skywire Products: Include measured LOB documentation – DATA MISSING • Products with Application User Perpetual / Hosted Named User: Provide User Counts for each product

Best Practices – • Document user and LVF measurement process and archive with contracts • Establish License Verification Form process for future certification to Oracle

Confidential www.slc.us.com PeopleSoft Inventory Summary

PeopleSoft QTY Micro Focus International Ltd. Net Express COBOL for Windows 2 PeopleSoft Enterprise Payables - Reported Revenues Perpetual 3.9 B PeopleSoft Enterprise Ps/General Ledger - Reported Revenues Perpetual 3.9 B

Products with Enterprise Metrics ( $M Reported Revenues): • Validate License Verification Form (LVF) sent annually by Oracle – COMPLIANT • Document collection process for annual review • Review any Restricted Use products associated with PeopleSoft deployment (DB, WebLogic, or MF)

Best Practices – • Document measurement process and archive with contracts • Establish License Verification Form process for future certification to Oracle • Document how PeopleTools is deployed and identify servers and desktops!

Confidential www.slc.us.com SLC Recommendations

SLC HAS SIGNIFICANT EXPERIENCE RESOLVING ISSUES IDENTIFIED IN THIS REPORT AND OUR RECOMMENDATIONS HAVE BEEN SUCCESSFUL IN MULTIPLE OTHER COMPLAINCE AND COST SAVING SCENARIOS WITH MANY OTHER CLIENTS.

RECOMMENDATION 1: REVIEW DATABASE INSTALL BASE INCLUDING PHYSICAL, EXADATA AND VM SERVERS • Move databases as practical to physical servers • Isolate Oracle vCenters per Oracle approved configuration • Review options that are in use (Diagnostics, Tuning, Partitioning, Advanced Compression, RAC) • Review metric is in use and look at options

RECOMMENDATION 2: REVIEW ACTUAL PRODUCTS INSTALLED VS WHAT IS NEEDED • Review what versions of WebLogic are needed and use correct installation • Remove SOA suite if not in use – Unlicensed – Compliance Issue • Remove Foundation Suite is not in use – Unlicensed – Compliance Issue

Confidential www.slc.us.com SLC Recommendations - Continued

RECOMMENDATION 3: REVIEW JAVA MISSION CONTROL INSTANCES Document Java SE and Commercial Product Usage Remove Commercial Products

RECOMMENDATION 4 REVIEW SUPPORT ENTITLEMENTS FOR ITEMS NO LONGER IN USE – MAKE PLAN FOR CANCELLATION Go through all software entitlements and identify items that are no longer in use Create a go-forward strategy for removal

RECOMMENDATION 5: REVIEW UNHEALTHY LICENSES FOR CANCEL AND REPLACE OR MIGRATION Create plan to cancel and replace support on licenses that are over list cost.

The resulting savings will be removal of most, if not all of the compliance findings ($500M+) as well as hard savings for unhealthy licenses ($270K)

Confidential www.slc.us.com SLC VMware Guidance

SLC HAS GATHERED ORACLE’S UNWRITTEN POLICIES ON HOW VMWARE IS TO BE LICENSED BY CLIENTS AND WILL MAKE THAT AVAILABLE. BECAUSE THIS INFORMATION IS NOT PUBLISHED, IT IS HIGHLY CONFIDENTIAL.

RECOMMENDATION 6: CREATE ISOLATED VMWARE 6.X VCENTER(S)

Review the vmware deployment and do the following for each product set: • The only machines in that vCenter will be licensed for Oracle – ALL hosts must be licensed • Multiple isolated vCenters are required if licensing by both processor and named user (i.e. each is separate) • All storage for each vCenter isolated should dedicated to that vCenter and not be shared with other machines • In Vmware 6.x + additional rules will apply. • You may decide to move some products to physical machines due to license quantities.

The resulting savings will be removal of all of VMware related compliance findings ($500M+)

Confidential www.slc.us.com Licensing Metrics and VMWare

Descriptions of Oracle’s Metrics can be found at: http://www.oracle.com/us/corporate/pricing/software-investment-guide/index.html Oracle’s Core Factor Table can be found at: http://www.oracle.com/us/corporate/contracts/processor-core-factor-table-070634.pdf

How Oracle’s current day Processor licensing works for Oracle’s Processor Based Products:

• # of Processors X # of Cores on each Processor X Oracle Core Factor = Total Licensable Cores

• Example proposed new machine: 2 processors x 10 cores each x 0.5 Core Factor = 10 Licensable Cores

License Definitions and Rules - Processor Metric: shall be defined as all processors where the Oracle programs are installed and/or running. Programs licensed on a processor basis may be accessed by your internal users (including agents and contractors) and by your third party users. The number of required licenses shall be determined by multiplying the total number of cores of the processor by a core processor licensing factor specified on the Oracle Processor Core Factor Table which can be accessed at http://oracle.com/contracts. All cores on all multicore chips for each licensed program are to be aggregated before multiplying by the appropriate core processor licensing factor and all fractions of a number are to be rounded up to the next whole number. When licensing Oracle programs with Standard Edition Two in the product name (with the exception of Java SE Support, Java SE Advanced, and Java SE Suite), a processor is counted equivalent to an occupied socket; however, in the case of multi-chip modules, each chip in the multi-chip module is counted as one occupied socket. Furthermore the only reference to VMWare is found on the “Partitioning Policy”: http://www.oracle.com/us/corporate/pricing/partitioning-070609.pdf.

Confidential www.slc.us.com SLC Proposed Savings Scenario

2018 Renewal Scenario Estimated Costs (i.e. As is) Oracle Spend Segment 2018 2019 2020 Total Existing Maint $ 1,346,776 $ 1,387,179 $ 1,428,795 $ 4,162,750 Mergers/Acquisitions (M&A) TBD TBD TBD TBD New Audit Lic. TBD TBD TBD TBD • Potential migration / cancellation New Audit Main. TBD TBD TBD TBD of RED license maintenance - Total Annualized Costs: $ 1,346,776 $ 1,387,179 $ 1,428,795 $ 4,162,750 $263k

2018 SLC Proposed Strategy Costs (Estimated) Oracle Spend Segment 2018 2019 2020 Total • Potential Maintenance Uplift Existing Maint $ 1,346,776 $ 1,115,965 $ 1,114,960 $ 3,577,701 Removal - $107k 2018 Cancellation $ (263,315) $ - $ - $ (263,315) Maintenance Uplift $ (40,403) $ (33,479) $ (33,449) $ (107,331) Mergers/Acquisitions (M&A) $ - $ - $ - $ - Potential Compliance Cost New Audit Lic. $ - $ - $ - $ - • New Audit Main. $ - $ - $ - $ - Avoidance - $500M+ Total Annualized Costs: $ 1,043,058 $ 1,082,486 $ 1,081,512 $ 3,207,055

Oracle Spend Segment 2018 2019 2020 Total • Total Hard Costs Savings over As Is: $ 1,346,776 $ 1,387,179 $ 1,428,795 $ 4,162,750 $956K Audit Costs: $ 1,346,776 $ 13,587,179 $ 3,694,795 $ 18,628,750 3 years - SLC Strategy: $ 1,043,058 $ 1,082,486 $ 1,081,512 $ 3,207,055

17 Best Practices Top 10 for Managing Oracle

1. Understand your contracts and licensing terms for current and future purchases 2. Keep records and update your hardware on an Oracle Server Worksheet (“OSW”) twice annually 3. Review deployment of software at least once annually – Understand where your software is in your estate 4. Develop and record your process to update user counts – conduct a self audit annually 5. Do not provide Oracle too much information such as future plans, budgets, etc … they will ask! 6. Create a single point of contact within your organization to deal with Oracle Sales 7. Engage internal resources such as Procurement or Supply Chain for negotiations 8. Use a Value Added Reseller (VAR) to provided a barrier between you and Sales 9. Do not allow Oracle to conduct “health checks”, these are soft audits! 10. Engage an experienced 3rd Party to help you understand Oracle’s policies

Confidential www.slc.us.com