Best Practices at AT&T

1. Best Practices at AT&T Oracle Real Application Clusters (Oracle RAC) & Oracle E-Business Suite Bryon Rickey Ravi Kayarthodi September 20th, 2010

2. Agenda • Welcome and Introductions • Supply Chain Management (SCM) environment • Overview/highlights • Architecture • Partnership with Oracle to transform our Business • Key project highlights • Future initiatives • Solution Support Center (SSC) and on-site support • Q&A

3. About AT&T • AT&T is one of the world’s largest Telecommunications companies • AT&T Global Headquarters is based in Dallas, TX • AT&T has approximately 290,000 employees • AT&T has more than 90 million wireless customers • AT&T has more than 16 million high speed internet subscribers • AT&T has more than 2.5 million uverse subscribers • Exclusive U.S. provider of iPhone 3G / 3GS / 4

4. AT&T SCM: Architecture highlights • Oracle E-Business Suite Centric • Scale-up with cluster database on very large infrastructure • High availability with Oracle Data Guard, Oracle GoldenGate, and site level redundancy • Central inventory/financial management; utilizes product hub, planning/forecast with ASCP/Demantra • Order orchestration and brokering with in-house developed Oracle based application system • Internet deployment for interaction with external suppliers • Management reporting/profitability analysis; procurement and spend analytics • Industry leading warehouse/distribution management systems

5. AT&T SCM Platform: Financial Integration • Both Network and Retail SCM - financial counterparts are integrated in the same platform: Shared AP, AR, PA, FA, and GL • Supply Chain transactions leverage same referential data and accounting rules • Financial integration of supply chain transactions are seamless and are recorded real-time in the general ledger • No need for reconciliation between sub ledgers • Ability to forecast financial implications based on SCM forecasts • Online financial budgeting validation on purchasing and requisitions • Analytical GL Cube and Inventory Cube

6. Results • AT&T has saved more than $500 million and has improved its purchasing power by combining accounts with its vendors. • Estimated to save $1B in inventory costs, and $300M per year in reduced operating costs. • Warehouses have been able to keep inventories low without missing SLA, resulting reduced overall inventory costs. • Ability to identify sold merchandise, resulting in fewer fraudulent returns

7. Industry Recognition • 2010 IDG’s CIO Award • Recognizes organizations around the world that exemplify the highest level of operational and strategic excellence in information technology

8. Systems Architecture

9. AT&T SCM: E-Business Suite Centric

10. AT&T SCM: Key Systems Architecture EDI EDI GL ODP eAuction PO AP OM ASCP RNF PA FA Inventory Planning Purchasing Financials Oracle E-Business Suite 11i Receipts Receipts Audits Shipments Moves Repairs Warehouse Mgmt Inventory Tracking Distribution Center Corporate Asset Tracking

11. Oracle 11i E-Business Environment Forward Orders Store Replenishment Dealers/ iStore National Retailers DSL and uVerse HSIA Direct Fulfilment Upfront EPL Planning Purchasing Order Management Inventory Receivables Financials Oracle E-Business Suite 11i Apps Opus Store XBM/Insurance Dealer/NR RU30 Service Depots Sales Returns Company Owned Retail Reverse

12. AT&T SCM Platform: Oracle10g RAC Infrastructure: VCS+ CRS

13. AT&T SCM Platform: Transaction Volume • Approximately 3.35 million logons to the production areas per day • 2.06 billion SQL executions per day • Approximately 136.5 Billion logical reads and 41TB of physical reads performed per day • Approximately 7 TB of writes performed per day • Approximately 1.05 billion user calls and 52 million transactions completed per day • 200,000 concurrent request per day

14. AT&T SCM Platform: Operational architecture • Decoupled month-end book closing preparation • Statistics gathered on a clone • Separate reporting environment – refreshed nightly; Inventory and GL Cubes for reporting • Revenue share and allocation on a separate system • Direct supplier interaction with Internet-deployed application modules • Utilizes market making mechanisms (sourcing)

15. AT&T SCM: Oracle 11i Dev/Test Configurations Bothell, WA HDS – USP-V HDS – USP-V Alpharetta, GA R-TRA NetApp GOLD L-TRA PROD Data Guard/ Custom Shipping Data Guard Data Guard Data Guard/ Custom Shipping Shadow Image NetApp GOLD MET2 Shadow Image NetApp Master SnapMirror FTP RPT NetApp Master Shadow Image Flex Clone Flex Clone QA DEV QA DEV DEV Flex Clone MET1 DEV QA DEV Flex Clone FTP DEV DEV DEV QA • Storage Efficiency with NetApp de-duplication Tools • Performance test environment on tier-1 storage

16. AT&T SCM: Oracle Automatic Storage Management • Local and Remote DR databases and also Reporting databases have been migrated to ASM storage to meet storage and capacity needs • Avoided SFRAC costs • Performance • SCMP DR/BC database converted to RAC database • Saved SFRAC license cost on E25K frames • Comply with AT&T standard for cluster database (ASM is required) • Expected to save cost in the future when we upgrade other Corporate Systems’ databases

17. AT&T SCM: Archive and Purge • Archive Stats • 16 custom and core modules including (GL, INV, OM, AR, WSH, PO, FA) • Executed weekly, monthly, quarterly, and yearly • History instance • Informatica Data Archive application used • Schedule is monitored real-time to ensure adherence • Purge Stats • 70 jobs via Oracle concurrent programs • Executed daily and weekly • Schedule is monitored real-time to ensure adherence

18. AT&T Supply ChainGeographic Distribution – DB Flow to Test and Dev Primary Site XX XX XX XX Test Site 1 XX Development Site 2 XX Test Site 2 XX XX XX XX Development Site 1 DR Site XX XX XX XX XX Prod XX XX XX XX XX XX XX Dev/Test XX XX XX XX XX

19. AT&T SCM: Spend Analytics • Oracle Business Intelligence Enterprise Edition (Oracle OBIEE) Powered • Sourcing from Oracle E-Business Suite and Legacy Applications Top 5 Categories Spend Top 5 Suppliers Line Of Business Contract Leakage Off Contract Spend Payables Leakage

20. AT&T SCM: Database Maintenance/Performance Management • Monthly month-end close of books stats validation – database statistics preparation on production clone • Table Re-organization – routine and ad-hoc • Periodic index rebuild • Daily performance call • Daily/weekly/monthly/yearly purge/archive schedules – vigilance in adhering to them • Extensive performance monitoring on all levels of the system

21. Partnering with Oracle Advanced Customer Service Oracle Solution Service Center (SSC)

22. SSC: Project Spotlight: Patch Recommendations • Value Addition • SSC and AT&T worked together to create a new process to efficiently identify required patches with the goal to minimize the impact of rolling them out in our production environment and to current/future projects: • Quarterly document for AT&T environments with the latest recommended patches. • Participation on AT&T IT meetings to clarify recommendations and questions • Provide detailed patch analysis on a ad-hoc basis • Successful roll out of AP.O patchset along with other Financials patches in February 2010: stabilized production environment and brought environment to the latest code base. • Successful completion of the ASCP Rup 37, Collections Rollup (RUP) 32 and Application Technology Group (ATG) RUP-7 for the April 2010 production rollout. 23

23. SSC: Project Spotlight: Performance Improvement • Value Addition • Active participation on Conference bridge calls and OWC sessions. • Engage Oracle development groups (Financials and Apps Performance) to provide SQL tuning improvements. • Improve month end close activities like AR close, depreciation and asset retirement, optimizer, Invoice Validation processes. • Maximize performance during month end, preventing delay; AT&T was able to successfully meet the SLAs for the Month End Close Processes month after month. • Provide recommendations for major upgrades (DB, Applications and Tools)

24. SSC: Critical SR Spotlight: Other Key areas of focus • Value Addition • Active participation on conference bridge calls and OWC sessions • Review current setups and schedules of workflow Background Process • Engage on Severity-1 SR and work collaboratively with Oracle development to provide workaround (eg. skip script) • Work with at&t and Oracle development organization to provide scripts to clear workflow DEFERRED queue • Monitor the implementation of recommended suggestions • Engage Oracle Development and RAC COE team • Engage on Architectural design discussions • Stand-by support for DB/RAC upgrade deployment activities • Ensure successful implementation of RAC upgrade Rollout

25. SSC: AT&T Targeted Services: Operations • Supply Chain Transformation (Streamline Operations for newly deployed modules) • Work with ACS sales to determine appropriate support for upcoming SC rollout. Determine/secure funding for new modules (Demantra and Transportation Management Suite) • Develop, Enhance and Secure development sponsors • Participate in scheduled project “Deep Dive” calls with PMO and project team • Site visit to Memphis to understand warehouse and logistic operations – understand business functions. • Supply Chain Business – develop key relationships with Retail and Network business users • 11i Financials and Supply Chain Production Supportability (System) • Next generation iPhone launch and 2010 Holiday Retail Season readiness • “Top Ten” Prioritization

26. SSC: AT&T Targeted Services: Transportation Manager • Key Secondary Activities • Participate in scheduled project “Deep Dive” calls with PMO and project team • Work with PMO/SSC to determine appropriate support model for New Horizon’s • Work closely with OCS /PMO on project milestones – develop relationships • Continue to maintain Dev OTM Network • Supply Chain Business – develop key relationships • Site visit to Warehouses • SSC walk-thru’s • Key Deliverables • Enhance Supply Chain SSC presence and understand usage • and architecture for OTM • Site visit to understand implementation, document in • configuration guide. • Performance testing as requested. • Amend SSC contract to include OTM products

27. SSC: Oracle E-Business Suite Release 12/Database 11g R2 Upgrade • Objective: • System Availability, Supportability, and Software Currency • Key Secondary Activities • SSC “Top Ten” Prioritization: Service Request review meetings with Supply Chain, Financials, and DBA support teams • Patching/Release Management strategy for Release 12 interoperability; • Leverage Tools and Templates • Daily SSC Performance Calls • Key Deliverables • Proactive Diagnostics (Configuration/Performance) • Contracted deliverables • Semi-Annual Account Review

28. Solution Support Center • Service Highlights • Focused Engineering Team of Oracle Subject Matter Experts • Fast track solutions based on intimate Knowledge of customer Environment and business needs • Proactive Software Advice and Knowledge Transfers • Performance and Patch Assessments • Single point of contact for all technical issues - Technical Lead • Single point of contact for all escalations – SDM • 24/7 coverage Value • Mitigate Upgrade Risks substantially • All project milestones are met • Ensured optimal usage of Oracle features and functionality • Reduced overall Maintenance/upgrade/ training costs

29. Solution Support Center Key Delivered Features • Focused Engineering Team • Single Point Accountability – SDM • Exclusive 1 800 number 24x7x365 • Review of Critical Issues as Needed • Patch Analysis • Stand-by Support for Critical Go-lives • Proactive Alerts / Patch Notifications • Project Planning / Migration Assistance • Periodic Review Sessions • Applied Research

30. Questions

31. For More Information On this presentation,e-mail Bryon Rickey (BR3681@att.com) or Ravi Kayarthodi (RK8409@att.com). For general information on Advanced Customer Services, go to oracle.com/acs or e-mail acsdirect_us@oracle.com