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Oracle Confidential: For Internal Use Only

Gen 2 ExaCC Commercial FAQs


Q: What is Cloud at Customer in the context of the overall Oracle Exadata portfolio (on
prem, ExaCS, ExaCC, autonomous). Why does the Cloud at Customer model make sense
for our customer base? And by the way, how well did we do with Gen1?

A: Exadata Cloud at Customer is part of Oracle's strategy of delivering the World's Best
Database on the World's Best Database Platform while adding Autonomous
capabilities. Exadata on-premises delivers robustness with performance, scalability and
technology from Autonomous Database such as Automatic Indexing. Exadata Cloud (Cloud at
Customer and Cloud Service) add agility through automation. Not all customers, however, can
move to the public cloud (such as Exadata Cloud Service). Certain customers cannot move to
the public cloud for regulatory reasons, integration with other on-premises applications or to
minimize risk of moving to the public cloud. Exadata Cloud at Customer delivers Oracle Cloud
Services behind the customer firewall. Oracle Autonomous Database delivers additional
efficiency through maximum automation of database administration and maintenance.
Autonomous Database will be available on Exadata Cloud at Customer in the future. The key
point for customers is that Oracle offers architectural equivalency across all of these deployment
models, so customers don’t have to make any application changes and can develop once and run
everywhere.

Several hundred customers across a multitude of vertical industries have subscribed to Gen1
ExaCC with over 800 systems deployed.

Q: What are the right use cases for ExaCC or Exadata on-premises? In other words what
have we learned about the adoption of Exadata vs ExaCC?

A: Oracle has a large and growing installed base for Exadata on-premises, Oracle continues to
add new customers for Exadata on-premises as well as ExaCC and ExaCS. Customers often
select Exadata on-premises because they require the additional control and customization
afforded by the on-premises solution.

A significant percentage of ExaCC and ExaCS customers are new to Exadata. New and existing
Exadata customers value:

• Lower TCO - including right sizing using OCPU scaling


• Benefits of Cloud in the Customer Datacenter behind the customer firewall
• Elimination of the upfront cost
• Fewer customer resources –
o New customers do not need to develop Exadata infrastructure expertise
o Existing customers can redeploy resources to more critical and strategic tasks

Q: Why are customers adopting Exadata Cloud at Customer (Gen1)? What are the use
cases? What is the industry level (market vertical) view of Cloud at Customer adoption?
Net - net what have we learned that can be applied to the Go-to-Market (GTM) strategy?
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A: We typically see the same use cases for ExaCC as we do for Exadata On-Premises which
include: data warehouse/analytics, mission-critical transaction processing applications,
database consolidation and DBaaS.

Oracle has both large and SMB Gen1 customers in production in verticals such as Retail,
Healthcare, Travel and Transportation, Communications, Natural Resources, Engineering and
Construction, Financial Services, High Tech & Public Service.

Q: Why do we win?

• Lower Total Cost of Ownership (TCO)


• DBaaS - time to deploy databases
• Minimize IT resources
• Encrypt data
• Path to the public cloud, with the same architecture
• Workloads that cannot move to the public cloud
• License included enables customers to take advantage of all database options
• Simplify IT - standard platform
• Purpose-built enterprise Database Cloud Service vs. general purpose offerings

Q: What are the sales plays? What do customers value in ExaCC?

A: The winning formula varies across industry and customer. The first step is to ensure
customers understand the value proposition of Exadata. Once they understand that, the choice of
deployment model is an example of the high degree of deployment flexibility that Oracle offers
its customers. Whether it’s OLTP, data warehousing / analytics, mixed workloads or DBaaS,
customers can decide if they would like a cloud service in their data center (ExaCC) to run these
workloads and free up resources for more strategic projects or to continue to rely on on-premises
equipment (Exadata).

Q: What is Gen 2 ExaCC and how is it different than Gen1 ExaCC?

A: Gen 2 ExaCC uses a control plane located in Oracle's public cloud. No control plane rack is
required at the customer datacenter. The Gen 1 control plane rack is replaced with two
lightweight control plane servers in the ExaCC rack. The Gen 2 control plane uses the same UI
and APIs across Cloud at Customer and Cloud Service.

Gen1 ExaCC uses layer 3 networking to connect to the customer network. Gen 2 ExaCC uses
layer 2 networking to connect to the customer network which should dramatically reduce
connection time to the customer network.

New features will roll out faster since upgrades will roll out across the fleet as opposed to one
customer at a time.

In addition, the Gen 2 Exadata Cloud at Customer modern Cloud Control Plane is deployed in
the nearest Oracle Cloud Infrastructure (OCI) region. This enables enterprise cloud management
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with unmatched performance, scalability, availability and security, while also reducing space,
power and cooling requirements of customers’ own data centers. With architectural equivalency
with Oracle Cloud, it provides organizations with an identical user experience and programming
APIs between on-premises and Oracle Cloud, resulting in more rapid application development,
deployment, and data portability.

Q: How do customers connect to ExaCC database servers and control plane servers?

A: Oracle provides transceivers for database servers and control plane servers. Customers can
connect via fiber or copper.

The customer provides ToRs, network cables, transceivers on the customer side switches. ToRs
may be placed in the top 2 open ExaCC slots. An exception request is required to place the ToRs
in the ExaCC racks.

Q: I heard there were stability issues with the Gen1 ExaCC environment. Is Gen 2 going to
be more a stable offering?

A: OCI (Gen 2) ExaCS is considerably more stable than OCI-C (Gen1) ExaCS and we expect
this stability to find its way into Gen 2 ExaCC. After all, Oracle is delivering its second
generation of Exadata Cloud at Customer while most cloud vendors are still trying to execute or
simply figure out their first generation.

Q: When will Gen 2 ExaCC be available?

A: Commercial customers can begin ordering Gen 2 ExaCC on September 17,


2019. Government/Public Sector (non-metered) customers can begin ordering Gen 2 ExaCC on
October 17, 2019.

Q: What is the commercial structure of Gen 2 ExaCC? What is new with the
pricing? Discounts?

A: Gen 2 ExaCC has moved to a lower price/lower discount model for the ExaCC
Infrastructure. The new ExaCC infrastructure pricing is:

ExaCC Rack Size List Price ($/Month)


Base System $10,000
Quarter Rack $13,500
Half Rack $27,000
Full Rack $54,000

Control Plane No Charge


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The Gen 2 ExaCC Infrastructure discount schedule is:

Commercial OCPU pricing remains the same as Gen1 ExaCC and ExaCS.

Non-metered subscriptions where OCPUs were included in the ExaCC rack subscription are no
longer available.

Governement/Public Sector customers that require a non-metered subscription should


subscribe to commercial ExaCC Infrastructure (which is non-metered) and Government OCPU
skus. Government OCPU skus must be ordered in 744 hour increments.

The discount schedules for Infrastructure, Universal Credits and Government can be found in the
Oracle Cloud Approval Matrix.

Q: Are any services required to order along with Gen 2 ExaCC?

A: Gen 2 ExaCC Installation and Activation Service is required for each ExaCC rack. This
service includes:

• ExaCC Infrastructure Installation and Configuration


• Configure Control Plane Servers and ExaCC Provisioning
• Post provisioning tests
• Service Activation

The Gen 2 Exa CC Installation and Activation Service is priced at $30,000 per ExaCC rack and
is not localizable or discountable.

No other services are required (such as the Gen1 ACS Readiness Service or OCS services).

Q: How do I compare the costs/Total Cost of Ownership (TCO) between on-premises


Exadata and ExaCC?

A: Please see the Gen2 Exadata Cloud Calculator.


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Be sure to include all costs in a TCO:

On-premises (Exadata)

• On-Premises Infrastructure
o Hardware
o Hardware Support
o Exadata Storage Software
o Exadata Storage Software Support
o Shipping, Install, Config
o Data and Device Retention
• Infrastructure Management
o Infrastructure Management
• Database Managed Service
o Full Database Administration and. Management

Exadata Cloud at Customer

• Cloud Subscription
o ExaCC Infrastructure subscription including HW, Support, Storage SW, Storage
SW Support
o Shipping, Install, Config
o Data and Device Retention
o Infrastructure Management
o Oracle Identity Governance
o Security/Governance Software
• Database Managed Service
o Full Database Administration and. Management
o Takes advantage of cloud tooling

Our customers and partners have concluded that the cloud tooling reduces administration and
maintenance costs of cloud services by 1/3 compared to on-premises solutions.

Q: It took a long time to provision Gen1. Why is Gen 2 provisioning going to be better?
How much time will it ‘typically’ take to ship, provision, and activate the service?

A: The primary customer related delay to date has been data center readiness. Simply put, the
data center is not ready for ExaCC and the Control Plane to be installed. The delays could be
numerous and have included construction delays, power, cooling, space and networking not
being available. This potential for data center readiness delays will still be there with Gen 2
ExaCC. This applies to any vendor trying to install a similar cloud service in the customer data
center.

We expect that Gen 2 ExaCC will deploy much more quickly than Gen1 ExaCC because there is
no control plane to install and configure.
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The Gen 2 Control Plane will already be available in the OCI data center –

• No control plane hardware to install in the customer data center


• No large control plane image files need to be downloaded
• No control plane to configure

• Gen 2 ExaCC uses layer 2 networking to connect database servers to the customer
network; which requires much less configuration.

Assuming the customer data center is ready to accept the ExaCC hardware for installation and
configuration, we expect installation, configuration and activation of the ExaCC service to take
approximately 7-10 business days. In contrast, the Gen1 Control Plane and ExaCC would
typically take 8 weeks, so as you can see, Oracle has made material improvements since being
first-to-market with this type of cloud service 3 years ago.

Q: Gen 2 Features: I understand that Gen 2 Version 1 (V1) will not have all the features of
Gen 1. Shouldn’t the customer wait until Gen 2 has feature parity with Gen1? What
approach should we recommend to our customers to take (V1 leading to V2 with more
features)?

A: Gen 2 V1 will release with the following features (from the UI):

• Database creation and deletion


o 19c, 18c, 12.2, 12.1, 11.2.0.4
• Universal credits, BYOL
• CPU scaling (bursting)
• IORM
• Backup and recovery
o To ZDLRA, NFS, Cloud Object Storage, Internal disk (FRA)
• GI/DB patching
• ExaCLI
• REST API for provisioning and scaling

Gen 2 Features Not Supported in Gen 2 V1:

• Multiple VMs
• Shared Oracle Homes
• RAC Node subsetting
• VM Cluster subsetting
• Database Creation from Backup
• Data Guard automation
• Sparse Clones
• CPU Oversubscription
• Elastic Expansion
• Certifications and compliance
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New features will roll out to customers more quickly since control plane updates and features
will be rolled out to the Control Plane in the Oracle Public Cloud, with minimal changes to local
deployments.

If your customer requires any of the above Gen 1 features immediately, please contact Exadata
Product Management to discuss your options.

Q: What use cases should sales target with Gen 2 V1?

A:

Q: What certifications will be available at the launch of Gen 2 V1? What is the road map
for other certifications?

A:

Certification Date
ISO 27001 November 2019
HIPAA November 2019
SOC1 Type II April 2020
SOC 2 Type II March 2020
PCI 2HCY20

SAP certification is planned for 2HCY2020.

Q: What is the security model for Gen 2 V1 and follow up roadmap?

A: Control plane and operations access are via a secure tunnel between Oracle Cloud and the
local Control Plane Servers. The tunnel is initiated by the local control plane servers. Gen 2 V1
is an SSL-based VPN. The secure tunnel contains outbound telemetry data, input control plane
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access and inbound cloud operations access for trouble shooting and incident
management. Oracle plans to use websockets in a future release.

Q: What is the ordering and provisioning process for Gen 2 ExaCC?

A:

Sales will need to complete the ExaCC Cloud Availability (CA) Form and Service Activation
Request (SAR) Form. The CA Form must be completed prior to completing the DAS. The SAR
must be approved prior to the order being booked.

The CA Form requires account information, customer use case, and ExaCC Service Size
information and additional opportunity information.

The SAR requires sales information, delivery contacts and ExaCC rack size with PDU
information.

Please complete the forms completely. Ensure that the storage requirement match the selected
rack size. Please ensure that the opportunity ID in the CA Form matches the opportunity ID in
the DAS.

Q: What is required to configure and provision the ExaCC service?


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A: Once the order has been booked the customer can create a Cloud Account/OCI Tenancy, if
the customer does not already have one, to enter ExaCC configuration information including
ExaCC name, VLANs, IP addresses, database configurations, etc.

An Oracle Field Engineer plans the installation and configuration of ExaCC which includes a
pre-delivery survey to ensure that the ExaCC can be delivered to the data center. Once the
ExaCC arrives at the data center the Field Engineer will unpack, inspect and install the ExaCC
followed by configuring the control plane servers and ExaCC.

Q: How long will Gen1 ExaCC still be available? Will Oracle continue to support Gen1
and in what way? Will Oracle add more features to Gen1? Will the customer still need to
apply quarterly patches to Gen1 environment?

A: Gen1 ExaCC will be available to order through November 30, 2019.

• Feature Availability is capped at 18.4.6


• A terminal release will be made available beyond 18.4.6
• Gen1 will be supported for the duration of the subscription term
• Security patches will be available for the infrastructure
• Quarterly Database updates will be available according to the Database support schedule

Q: Expanding a Gen1 Control Plane environment: My customer has a Gen1 environment


and they would like to add more ExaCCs. What are their options?

A: Gen1 ExaCC will be available to order through November 30, 2019.

Beginning in Q3FY20, Gen1 ExaCC will continue to be available only for the expansion of
existing Gen1 deployments (elastic configurations, additional racks). Any exceptions will require
approval. Gen1 ExaCC expansion sales will be stopped for existing deployments when the Gen1
to Gen 2 control plane upgrade becomes available.

Q: When will the Gen1 to Gen 2 control plane upgrade be available?

A: The Gen1 to Gen 2 Control Plane upgrade is planned for CY2020. The upgrade will be at no
cost to the customer. The Customer will continue to pay for the Gen1 control plane subscription
for the remainder of the subscription term.

Q: Does Gen 2 ExaCC use the new Exadata X8M?

A: The Gen 2 ExaCC uses Exadata X8 at this time. For now, let’s focus on selling what’s
currently on the price list, and remember that with ExaCC, customers are subscribing to a
service, not acquiring a machine.

Q: Does the Gen 2 ExaCC have a dedicated control plane?


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A: The Gen 2 ExaCC control plane is not dedicated. It is shared in the cloud across
customers. The customer will select a specific region for its control plane.

Q: ExaCC (Gen1) references

A: Please see Customer Use Case Slides and Success Slides on Sales Central. If sales needs to
arrange a reference call, please contact Martina Keippel at Martina.keippel@oracle.com.

Q: Insurance: Are customers required to carry insurance on the ExaCC Infrastructure


(hardware)?

A: Yes, customers are required to carry insurance on the ExaCC Infrastructure. The
infrastruture is Oracle property and the machines reside in the customer data center or co-
location facility. Example: Should there be a loss resulting from say a fire in the customer data
center, Oracle is requiring insurance to replace its hardware in the event it is damaged or
destroyed.
Oracle should be named as a beneficiary on the customer’s insurance.
The customer will require the replacement value of the equipment for its insurance:
• ExaCC = 75% of the List Price of the equivalent on premises version/size Exadata (e.g.
Quarter Rack ExaCC = Quarter Rack Exadata On-Premises)

Q: When does (ExaCC Infrastructure) billing start?

A: ExaCC infrastructure billing starts when ExaCC is activated.

Q: My customer is new to Universal Credits, how can the Universal Credits billing be
delayed to when ExaCC Infrastructure is activated?

A: When quoting Universal Credits, to the question: “Synchronize Start Date to Cloud at
Customer Subscripton”. Answer “Yes”.

Q: What is the Service Level Objective (SLO) for ExaCC?

A: The SLO is defined as Category 5 in the Oracle PaaS and IaaS Public Cloud Service Pillar
Document.