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Exam Code: 1Z0-100 Practice test 2022 by team
1Z0-100 Oracle Linux 5 and 6 System Administration

Exam Title: Oracle Linux 5 and 6 System Administration
Exam Number: 1Z0-100
Format: Multiple Choice
Duration: 150 minutes
Number of Questions: 80
Passing Score: 61%

Linux Essentials
Customize the shell environment using startup files*
Use shell and environment variables, I/O redirection and pipes*
Create and maintain shell scripts*
Create and manipulate files, directories and their permissions*
Manage processes*
Switch users using the su and sudo commands
Administer /etc/sudoers
Set and manage system time using the date, hwclock and ntp commands
Perform file archiving and compression*
Installing Oracle Linux
Obtain Oracle Linux operating system software
Describe the Anaconda installer
Install Oracle Linux
Describe the FirstBoot utility
Understanding System Configuration options
Describe the /etc/sysconfig directory
Describe the /proc and /sys filesystems
Configure and maintain kernel parameters using the /proc filesystem and the sysctl utility
Managing Ksplice
Describe the purpose of Ksplice
Describe how Ksplice works
Configure and maintain Ksplice updates
Managing System Logging
Describe the structure of the rsyslog configuration file
Describe and configure facility/priority-based filters, actions and templates
Describe and configure rsyslog actions
Describe and configure rsyslog templates
Describe and configure log rotation
Describe and configure logwatch
Managing Users and Groups
Describe user and group concepts
Describe user and group configuration files
Create, modify and delete user accounts and groups using command-line utilities
Implement the user private group schema
Describe and configure password aging and hashing algorithms
Use the User Manager GUI tool
Describe user and group implementation in the enterprise
Managing Storage Devices
Describe Logical Volume Manager (LVM) concepts
Configure and maintain LVM components
Describe Multiple Device Driver (MD) concepts
Create and maintain MD devices
Managing File Sharing
Describe NFS concepts
Configure and maintain a NFS server
Configure and maintain NFS clients
Describe and use the exportfs utility
Describe, configure and maintain the automounter
Describe and configure vsftpd
Managing Pluggable Authentication Modules (PAM)
Describe PAM concepts
Describe and configure PAM configuration files
Describe and configure PAM authentication modules and module types
Describe PAM control flags
Monitoring and Troubleshooting Oracle Linux
Describe the purpose of the sosreport utility
Use the iostat, mpstat, vmstat, sar, top, iotop, and strace utilities
Use the netstat and tcpdump utilities
Use the OSWatcher Black Box (OSWbb) tool
Describe Enterprise Manager Ops Center
Covered in UNIX and Linux Essentials
Describing Oracle Linux Concepts
Describe the history of the Linux operating system
Explain the Linux kernel development model
Describe Linux distributions
Describe Oracles comprehensive Linux solution
Describe Oracles contributions to the Linux community
Describe Oracle Linux (OL) compatibility with Red Hat Enterprise Linux (RHEL)
Describe the Unbreakable Enterprise Kernel
Understanding and Configuring the Linux Boot Process and Service Administration
Describe the Linux boot process
Describe and configure the GRUB bootloader
Describe and configure kernel boot parameters
Describe the Upstart architecture
Describe Linux runlevels and runlevel scripts and associated directories
Describe the /etc/rcN.d directories
Configure and maintain services
Installing and Maintaining Packages
Describe Oracle Linux package management concepts
Use the rpm utility
Describe the Oracle public yum server
Describe and configure yum repositories
Use the yum utility
Describe the Unbreakable Linux Network (ULN)
Describe the steps to switch from RHN to ULN
Automating Tasks
Describe available automated tasks utilities
Configure cron and anacron jobs
Describe cron directories and files
Use the user and system crontab functionality
Configure anacron jobs
Use the at and batch utilities
Managing Kernel Modules
Describe loadable kernel modules
Dynamically load and unload kernel modules
Configure kernel module parameters
Managing Filesystems and Swap on Oracle Linux
Describe disk partitioning
Create, modify and remove disk partitions using command line tools
Describe supported file systems
Create and manage Linux Filesystems
Describe and configure swap space
Managing the Network Configuration
Describe and maintain network interface configuration files
Configure and manage network interfaces using command line utilities
Describe and configure network interface bonding
List and manipulate the routing table using the route utility
Use the NetworkManager tool to configure network connections
Use the system-config-network utility
Using OpenSSH
Describe OpenSSH concepts
Describe OpenSSH configuration files
Configure OpenSSH servers and clients
Use Open-ssh commands (ssh, scp and sftp)
Use Open-SH utilities (ssh-keygen, ssh-agent and ssh-add)
Managing Linux Security
Describe chroot concepts
Create and maintain a chroot jail
Describe iptables concepts
Use the firewall configuration tool
Describe iptables tables, chains, rules, and targets
Create and maintain firewall rules using the iptables command
Describe TCP wrappers concepts
Configure TCP wrappers
Managing Oracle on Oracle
Prepare an Oracle Linux server for Oracle Database installation
Create Oracle software user and group accounts
Set kernel parameters for Oracle Database
Set Oracle database shell limits
Configure HugePages
Configure Oracle Database Smart Flash Cache (DBSFC)
Describe the benefits of the Oracle pre-install RPM
Install, configure and maintain ASMLib
Consult MAN pages or relevant documentation.

Oracle Linux 5 and 6 System Administration
Oracle Administration questions
Killexams : Oracle Administration questions - BingNews Search results Killexams : Oracle Administration questions - BingNews Killexams : Oracle Certification Guide: Overview and Career Paths

Oracle offers a multitude of hardware and software solutions designed to simplify and empower IT. Perhaps best known for its premier database software, the company also offers cloud solutions, servers, engineered systems, storage and more. Oracle has more than 430,000 customers in 175 countries, about 138,000 employees and exceeds $37.7 billion in revenue.

Over the years, Oracle has developed an extensive certification program. Today, it includes six certification levels that span nine different categories with more than 200 individual credentials. Considering the depth and breadth of this program, and the number of Oracle customers, it’s no surprise that Oracle certifications are highly sought after.

[For more information read our Oracle CRM review, and our review of Oracle’s accounting suite.]

Oracle certification program overview

Oracle’s certification program is divided into these nine primary categories:

  • Oracle Applications
  • Oracle Cloud
  • Oracle Database
  • Oracle Enterprise Management
  • Oracle Industries
  • Oracle Java and Middleware
  • Oracle Operating Systems
  • Oracle Systems
  • Oracle Virtualization

Additionally, Oracle’s credentials are offered at six certification levels:

  • Junior Associate
  • Associate
  • Professional
  • Master
  • Expert
  • Specialist

Most Oracle certification exams are proctored, cost $245, and contain a mix of scored and unscored multiple-choice questions. Candidates may take proctored exams at Pearson VUE, although some exams are offered at Oracle Testing Centers in certain locations. Some exams, such as Oracle Database 12c: SQL Fundamentals (1Z0-061) and Oracle Database 11g: SQL Fundamentals (1Z0-051), are also available non-proctored and may be taken online. Non-proctored exams cost $125. Check the Oracle University Certification website for details on specific exams.

Oracle Applications and Cloud certifications

The Oracle Applications certification category offers more than 60 individual credentials across 13 products or product groups, such as Siebel, E-Business Suite, Hyperion, JD Edwards EnterpriseOne and PeopleSoft. The majority of these certifications confer Certified Implementation Specialist for some specific application, with various Certified Expert credentials also available. The Application certifications aim at individuals with expertise in selling and implementing specific Oracle solutions.

Oracle’s latest certification category is Oracle Cloud, which covers Java Cloud as well as a number of Oracle Cloud certifications, including Oracle Database Cloud. Cloud certs fall into seven sub-categories:

  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS), including Data Management, Application Development, Management Cloud and Mobile Cloud Service
  • Software as a Service (SaaS) – Oracle Customer Experience Cloud, including Service, Sales, Marketing and CPQ Cloud
  • Software as a Service (SaaS) – Oracle Customer Experience Cloud, including Service, Sales, Marketing, CPQ Cloud, and the rest of their CRM software offering

  • Software as a Services – Oracle Enterprise Resource Planning Cloud, including Financials, Project Portfolio Management, Procurement and Risk Management Cloud

  • Software as a Service – Oracle Human Capital Management Cloud, including Workforce Rewards, Payroll, Talent Management and Global Human Resources Cloud
  • Software as a Service – Oracle Supply Chain Management Cloud, including Order Management, Product Master Data Management, Product Lifecycle Management, Manufacturing, Inventory Management, Supply Chain Planning and Logistics Cloud

These credentials recognize individuals who deploy applications, perform administration or deliver customer solutions in the cloud. Credentials mostly include Associate and Certification Implementation Specialists, with one Mobile Developer credential offered plus a professional-level Oracle Database Cloud Administrator.

Oracle Database certifications

Certifications in Oracle’s Database category are geared toward individuals who develop or work with Oracle databases. There are three main categories: Database Application Development, MySQL and Oracle Database.

Note: Oracle Database 12c was redesigned for cloud computing (and is included in both the Cloud and Database certification categories). The current version is Oracle Database 12c R2, which contains additional enhancements for in-memory databases and multitenant architectures. MySQL 5.6 has been optimized for performance and storage, so it can handle bigger data sets.

Whenever a significant version of either database is released, Oracle updates its certifications exams over time. If an test isn’t available for the latest release, candidates can take a previous version of the test and then an updated test when it becomes available. Though MySQL 5.6 certifications and exams are still available for candidates supporting that version, the new MySQL 5.7 certification track may be more appropriate for those just starting on their MySQL certification journeys.

Oracle currently offers the Oracle Database Foundations Certified Junior Associate, Oracle Certified Associate (OCA), Oracle Certified Professional (OCP), Oracle Certified Master (OCM), Oracle Certified Expert (OCE) and Specialist paths for Oracle Database 12c. In addition, Oracle offers the OCA credential for Oracle Database 12c R2 and an upgrade path for the OCP credential. Because many of these certifications are also popular within the Oracle Certification Program, we provide additional test details and links in the following sections.

Other database certifications

Oracle Enterprise Management Certifications

The Oracle Enterprise Manager Certification path offers candidates the opportunity to demonstrate their skills in application, middleware, database and storage management. The Oracle Enterprise Manager 12c Certified Implementation Specialist test (1Z0-457) certifies a candidate’s expertise in physical, virtual and cloud environments, as well as design, installation, implementation, reporting, and support of Oracle Enterprise Manager.

Oracle Database Foundations Certified Junior Associate

The Oracle Database Foundation Certified Junior Associate credential targets those who’ve participated in the Oracle Academy through a college or university program, computer science and database teachers, and individuals studying databases and computer science. As a novice-level credential, the Certified Junior Associate is intended for individuals with limited hands-on experience working on Oracle Database products. To earn this credential, candidates must pass the Oracle Database Foundations (novice-level exam) (1Z0-006).

Oracle Certified Associate (OCA) – Oracle Database 12c Administrator

The OCA certification measures the day-to-day operational management database skills of DBAs. Candidates must pass a SQL test and another on Oracle Database administration. Candidates can choose one of the following SQL exams:

  • Oracle Database 12c SQL (1Z0-071)
  • Oracle Database 12c: SQL Fundamentals (1Z0-061) NOTE: This test will be retired on November 30, 2019.

Candidates must also pass the Oracle Database 12c: Installation and Administration (1Z0-062) exam.

Oracle Certified Associate – Oracle Database 12cR2 Administrator

To earn the Oracle Database 12cR2 OCA credential, candidates must first earn either the Oracle Database SQL Certified Associate, Oracle Database 11g Administrator Certified Associate, or the Oracle Database 12c Administrator Certified Associate.  In addition, candidates are required to pass the Oracle Database 12cR2 Administration test (1Z0-072).

Oracle Certified Professional (OCP) – Oracle Database 12c Administrator

The OCP certification covers more advanced database skills. You must have the OCA Database 12c Administrator certification, complete the required training, submit a course submission form and pass the Oracle Database 12c: Advanced Administration (1Z0-063) exam.

Professionals who possess either the Oracle Database 11g Administrator Certified Professional or Oracle Database 12c Administrator Certified Professional credential may upgrade to the Oracle Database 12cR2 Administration Certified Professional credential by passing the Oracle DBA upgrade test (1Z0-074).

Oracle Certified Master (OCM) – Oracle Database 12c Administrator

To achieve OCM Database 12c Administrator certification, you must have the OCP Database 12c Administrator certification, complete two advanced courses, and pass the Oracle Database 12c Certified Master test (12cOCM), complete the course submission form, and submit the Fulfillment Kit request.

Oracle also offers the Oracle Database 12c Maximum Availability Certified Master certification, which requires three separate credentials, including the Oracle Database 12c Administrator Certified Master, Oracle Certified Expert, Oracle Database 12c-RAC and Grid Infrastructure Administration, and Oracle Certified Expert, Oracle Database 12c – Data Guard Administration.

Oracle Certified Expert (OCE) – Oracle Database 12c

The OCE Database 12c certifications include Maximum Availability, Data Guard Administrator, RAC and Grid Infrastructure Administrator, and Performance Management and Tuning credentials. All these certifications involve prerequisite certifications. Performance Management and Tuning takes the OSP Database 12c as a prerequisite and the Data Guard Administrator certification requires the OCP Database 12c credential. The RAC and Grid Infrastructure Administrator provides candidates the most flexibility, allowing candidates to choose from the OCP Database 11g, OCP Databases 12c, Oracle Certified Expert – Real Application Clusters 11g and Grid Infrastructure Administration.

Once the prerequisite credentials are earned, candidates can then achieve Data Guard Administrator, RAC and Grid Infrastructure Administrator or Performance Management and Tuning by passing one exam. Achieving OCP 12c plus the RAC and Grid Infrastructure Administration and Data Guard Administration certifications earns the Maximum Availability credential.

Oracle Database Certified Implementation Specialist

Oracle also offers three Certified Implementation Specialist credentials: the Oracle Real Application Clusters 12c, Oracle Database Performance and Tuning 2015, and Oracle Database 12c. Specialist credentials target individuals with a background in selling and implementing Oracle solutions. Each of these credentials requires candidates to pass a single test to earn the designation.

Oracle Industries certifications

Oracle Industries is another sizable category, with more than 25 individual certifications focused on Oracle software for the construction and engineering, communications, health sciences, insurance, tax and utilities industries. All these certifications recognize Certified Implementation specialists for the various Oracle industry products, which means they identify individuals proficient in implementing and selling industry-specific Oracle software.

Oracle Java and Middleware Certifications

The Java and Middleware certifications span several subcategories, such as Business Intelligence, Application Server, Cloud Application, Data Integration, Identity Management, Mobile, Java, Oracle Fusion Middleware Development Tools and more. Java and Middleware credentials represent all levels of the Oracle Certification Program – Associate, Professional and so on – and include Java Developer, Java Programmer, System Administrator, Architect and Implementation Specialist.

The highly popular Java category has certifications for Java SE (Standard Edition), and Java EE (Enterprise Edition) and Web Services. Several Java certifications that require a prior certification accept either the corresponding Sun or Oracle credential.

Oracle Operating Systems certifications

The Oracle Operating Systems certifications include Linux and Solaris. These certifications are geared toward administrators and implementation specialists.

The Linux 6 certifications include OCA and OCP Linux 6 System Administrator certifications, as well as an Oracle Linux Certified Implementation Specialist certification. The Linux 6 Specialist is geared to partners but is open to all candidates. Both the Linux OCA and Specialist credentials require a single exam. To achieve the OCP, candidates must first earn either the OCA Linux 5 or 6 System Administrator or OCA Linux Administrator (now retired) credential, plus pass an exam.

The Solaris 11 certifications include the OCA and OCP System Administrator certifications plus an Oracle Solaris 11 Installation and Configuration Certified Implementation Specialist certification. The OCA and OCP Solaris 11 System Administrator certifications identify Oracle Solaris 11 administrators who have a fundamental knowledge of and base-level skills with the UNIX operating system, commands, and utilities. As indicated by its name, the Implementation Specialist cert identifies intermediate-level implementation team members who install and configure Oracle Solaris 11.

Oracle Systems certifications

Oracle Systems certifications include Engineered Systems (Big Data Appliance, Exadata, Exalogic Elastic Cloud, Exalytics, and Private Cloud Appliance), Servers (Fujitsu and SPARC) and Storage (Oracle ZFS, Pillar Axiom, Tape Storage, Flash Storage System). Most of these certifications aim at individuals who sell and implement one of the specific solutions. The Exadata certification subcategory also includes Oracle Exadata X3, X4 and X5 Expert Administrator certifications for individuals who administer, configure, patch, and monitor the Oracle Exadata Database Machine platform.

Oracle Virtualization certifications

The Virtualization certifications cover Oracle Virtual Machine (VM) Server for X86. This credential is based on Oracle VM 3.0 for X86, and recognizes individuals who sell and implement Oracle VM solutions.

The Oracle VM 3.0 for x86 Certified Implementation Specialist Certification aim at intermediate-level team members proficient in installing OVM 3.0 Server and OVM 3.0 Manager components, discovering OVM Servers, configuring network and storage repositories and more.

The sheer breadth and depth of Oracle’s certification program creates ample opportunities for professionals who want to work with Oracle technologies, or who already do and want their skills recognized and validated. Although there are many specific Oracle products in which to specialize in varying capacities, the main job roles include administrators, architects, programmers/developers and implementation specialists.

Every company that runs Oracle Database, Oracle Cloud, or Oracle Linux or Solaris needs qualified administrators to deploy, maintain, monitor and troubleshoot these solutions. These same companies also need architects to plan and design solutions that meet business needs and are appropriate for the specific environments in which they’re deployed, indicating that the opportunities for career advancement in Oracle technologies are abundant.

Job listings and hiring data indicate that programmers and developers continue to be highly sought-after in the IT world. Programming and development skills are some of the most sought-after by hiring managers in 2019, and database administration isn’t far behind. A quick search on Indeed results in almost 12,000 hits for “Oracle developer,” which is a great indication of both need and opportunity. Not only do developers create and modify Oracle software, they often must know how to design software from the ground up, package products, import data, write scripts and develop reports.

And, of course, Oracle and its partners will always need implementation specialists to sell and deploy the company’s solutions. This role is typically responsible for tasks that must be successfully accomplished to get a solution up and running in a client’s environment, from creating a project plan and schedule, to configuring and customizing a system to match client specifications.

Oracle training and resources

It’s not surprising that Oracle has an extensive library of test preparation materials. Check the Oracle University website ( for hands-on instructor-led training, virtual courses, training on demand, test preparation seminars, practice exams and other training resources.

A candidate’s best bet, however, is to first choose a certification path and then follow the links on the Oracle website to the required exam(s). If training is recommended or additional resources are available for a particular exam, Oracle lists them on the test page.

Another great resource is the Oracle Learning Paths webpage, which provides a lengthy list of Oracle product-related job roles and their recommended courses.

Ed Tittel
Ed is a 30-year-plus veteran of the computing industry. He has worked as a programmer, technical manager, classroom instructor, network consultant and a technical evangelist for companies that include Burroughs, Schlumberger, Novell, IBM/Tivoli and NetQoS. He has written for numerous publications, including Tom’s IT Pro, and is the author of more than 140 computing books on information security, web markup languages and development tools, and Windows operating systems.

Earl Follis
Earl is also a 30-year veteran of the computer industry, who worked in IT training, marketing, technical evangelism, and market analysis in the areas of networking and systems technology and management. Ed and Earl met in the late 1980s when Ed hired Earl as a trainer at an Austin-area networking company that’s now part of HP. The two of them have written numerous books together on NetWare, Windows Server and other topics. Earl is also a regular writer for the computer trade press with many e-books, white papers and articles to his credit.

Tue, 28 Jun 2022 12:00:00 -0500 en text/html
Killexams : Oracle: A GARP Name For This Very Perilous Market
Oracle To Report Quarterly Earnings

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Oracle: It has reached an inflection point

Oracle (NYSE:ORCL) hasn’t been the best loved or best performing software investment for many years. The company’s transition to the cloud has been long, arduous, and probably has not achieved the results for which investors were hoping when it got started. Over the past decade - that’s right, decade- Oracle revenue has risen by just 7% and most of that came from the growth of the last three reported quarters. Operating cash flow was $13.7 billion 10 years ago, and contracted to less than $10 billion in the latest fiscal year (That contraction was basically a function of acquisition expenses, mainly related to the purchase of Cerner which closed just beyond the end of the fiscal year. Excluding the cash expenses of the transaction that Oracle incurred, Oracle’s cash generation actually grew slightly last year). Overall, non-GAAP operating income of $19.6 billion last year was marginally higher than the prior year, and was up by 44% over the past decade. Oracle shares have more than doubled in the past decade, although they have fallen by 35% since their high point in December of 2021.

Oracle has been about to turn the corner for years, but for every corner turned, there have been pitfalls and detours that have prevented the journey to any kind of sun-filled upland. Simply put, many of its plans and strategies have simply not come to fruition… until now. Most readers are well aware of what has happened to the valuation of high growth IT shares-and even IT companies with far more modest growth and valuation. There are some, and I acknowledge I am in this camp, who believe that the valuation carnage has created an existential opportunity. Oracle, even after what I believe to be a highly visible inflection point, doesn’t have the multi-hundred percent appreciation potential of the road kill in the IT space. On the other hand, Oracle’s constant currency, organic revenue growth reached 10% last quarter, compared to 7% the prior quarter, and just 4% growth at the start of the fiscal year. The prior fiscal year had experienced constant currency growth of 2%, so the growth acceleration is quite substantial for a mature company such as this.

What Oracle does have is a reasonable dividend yield (about 1.9%), a very substantial free cash flow margin, and now the reasonable potential of sustained double digit growth. Not 30% growth or 20% growth, but growth in the double digit range, in combination with very high and probably slightly growing operating margins. And the shares really haven’t reacted significantly to the growth accelerating the company has just announced. Overall, Oracle shares have fallen about 35% since the high they reached after the company’s Q2 earnings release last December. The shares had reached a low of $64 just prior to the earnings release, and while they rose 10% on the day after the earnings, release, they have backed down again, and stood just 6% above their low for the year at the market close on 6/23.

Oracle shares aren’t the kind of investment I typically recommend. For many years now, I have always looked for growth and share gains and a winning strategy. Oracle has been defending its turf, and it has certainly not been a share gainer. Some of its strategies have taken a very long time to reach fruition; some have simply not paid off in terms of achieving durable double digit growth. Investing in IT is a perilous undertaking, at best, and after having invested in and commented on IT companies for literally decades, I am more disposed to look for growth even when I have to pay what might seem as an elevated valuation to do so. But while I might be slightly, although by no means wholly, inured to the volatility and the potential drawdowns seen these last 8 months, this period in the market has been as difficult as any similar period I have ever experienced. While the circumstances of this crash are quite different than the last two or three through which I have lived, the results are reasonably similar. And so I have come to reconsider Oracle as an investment.

Oracle shares are highly unlikely to have the greatest potential percentage appreciation in the IT space. On the other hand, I think the combination of rising growth, and conspicuously elevated operating margins have left the shares undervalued, even on a relative basis, and that many readers will find the combination of reasonable growth, and great profitability and visibility to be attractive in this perilous market for high growth IT names. Oracle, for the most part, has ceased to be a share donor (it is still, and will likely continue to lose share overall in the database space), and while it is never going to have the market dominance it once enjoyed in the relational database world, it is not going to be excluded from some of the opportunities, both in the cloud infrastructure and cloud application space. And that is good enough, I believe to make recommending the shares a reasonable judgement despite the company’s checkered history of over-promising and under-delivering.

Reviewing Oracle’s recent quarter and its outlook

Oracle reported the results of its fiscal Q4 on June 13th. Revenues rose by 5% as reported, 10% on a constant currency basis. Its cloud revenues rose by 19%. Non-GAAP operating income rose 3% as reported and 7% in constant currency. While these numbers may not seem all that exciting, in fact, the constant currency organic growth of 10%, was a couple of percent above the previous forecast, and the highest rate of constant currency organic growth the company has reported since 2011.

The company’s EPS for the quarter of $1.54 was $.20 above guidance. Part of this beat was because Oracle’s income tax expense this past quarter was only 10%; the EPS guide had assumed a non GAAP tax rate of 19%. That tax rate difference accounted for about half of the headline earnings upside. The company’s non-GAAP operating margin for the quarter was 47% a bit lower than that reported for the prior year, but certainly at a high level. The decline in year on year operating margins was essentially a function of a 16% year on year, constant currency increase in research and development expense. It has been many years since Oracle has ramped research and development spending at that kind of rate and as will be detailed later in this article some of its innovation is starting to bear fruit. For better or worse, the senior management of Oracle has made a rather significant bet on its strategy that can have long-term positive business consequences.

Oracle had a much stronger data base quarter than has been the case for years now. Of course Oracle competes with MongoDB (MDB) these days as well as a host of what might be described as ankle-biters, and Mongo as well as the ankle biters win a substantial number of competitive engagements-in particular, Mongo’s Atlas offering provides both developers and users with superior noSQL functionality. And, equally, the large cloud companies all offer their own data base products, which have drained market share from Oracle for the last several years. Further, a company such as Snowflake (SNOW) while not often considered a direct Oracle competitor, is certainly a beneficiary of some of the stronger trends in cloud data warehousing. But this quarter, although not specifically reported, Salesforce (CRM), an Oracle data base customer for many years, apparently renewed/expanded its usage of Oracle’s database. So, too, did other significant enterprise software companies who use Oracle as their database platform. Quite surprisingly, therefore, total license revenues rose by 25% year on year.

Of course these kinds of transactions and that kind of growth are not to be expected every quarter, but the rumors that Salesforce was going to leave the Oracle platform have not turned out to be accurate and the company’s database market share within the application cloud vendors has remained far stronger than many observers have felt would be likely. While the company’s data base revenue have remained stronger than expected, its infrastructure software revenue rose, and in particular, what Oracle calls infrastructure cloud services grew 49% and the autonomous data base, showing a bit of life, saw a 29% increase in revenues.

Oracle is obviously not in the same league as the “cloud titans” which consist of AWS (AMZN), GCP (GOOG) and Microsoft’s (MSFT) Azure when it comes to providing public cloud infrastructure. Most of its cloud infrastructure customers are users of the company’s portfolio of apps. I don’t anticipate that Oracle will ever achieve the kind of revenues from its infrastructure offerings as the cloud titans are enjoying, but I expect that the company’s IaaS offering will be one factor in keeping Oracle’s revenue growth in double digits. In this last quarter, Oracle’s cloud consumption revenues grew by 83% year on year.

Oracle also enjoyed a particularly strong quarter in terms of its Apps bookings. Specifically, the company’s cloud application software revenues (Fusion ERP) rose by 24%. In particularly, NetSuite ERP revenues grew by 30%, which has to be considered a significant surprise. The company’s traditional apps business continues to decline; that said, the cloud component of the apps business has now crossed 50% of the revenues from that segment which should enable the Oracle to continue to achieve double digit growth for its ERP offerings for some years to come.

I like to look at RPO balances as providing the best insight in terms of the growth of a company’s sales. The Oracle’s RPO balance grew 17% year on year, after absorbing some impact from FX. This is indicative of a very strong bookings quarter, which does include the tailwind from what was apparently the significant booking made by Salesforce.

What’s Oracle’s Outlook/How will a recessionary climate impact its growth?

These days, the top issue on the minds of investors relates to how a particular company might fare in what many assume is an impending recession. It is hard to look at any kind of business streaming news service without seeing another prognostication of the probability of a recession. Given all the technology and all the individuals involved in making such forecasts, anything I might write on the subject would be superfluous and just opinion, not substantiated by quantitative models.

The consensus forecasts from the economics community seems to be that Fed tightening has about a 50% chance of tipping the economy into a recession. The further consensus seems to be that a recession will be of brief duration and mild.

How does Oracle stack up in that environment? The specifics of management guidance, after adjusting for the impact of the just completed Cerner merger seem to imply that its adjusted percentage growth rate might slacken in this current quarter, although it is difficult to triangulate the exact forecast because of not knowing how much conservatism has been baked into the contribution from Cerner. The CEO, on the call, however, talked about accelerating adjusted organic growth, and the facts as presented seem to substantiate that kind of forecast-specifically the strong growth in the company's RPO balance.

Specifically, the company forecast that the organic growth of its cloud business will accelerate from 22% in the year just reported, to more than 30% in the current year. The company’s cloud revenues were about $2.5 billion last quarter, and are now 21% of total revenues. So, the organic, currency adjusted revenues growth from the cloud will produce 700-800 basis points of growth at the company’s forecast levels in the current fiscal year.

The company hasn’t explicitly provided a forecast for the full year of fiscal ’23; its forecast for Q1 is for reported revenues to reach about $11.5 billion. Cerner’s revenue run-rate had been a little bit greater than $1.4 billion/quarter. So, the organic growth rate that Oracle is forecasting is about 4%, net of a 400 basis point FX head wind, and about a 100 basis point headwind for the end of the company’s operations in Russia. The estimate is probably conservative, as the company CEO said that she had added conservatism to the Cerner revenue outlook because of acquisition related friction.

The analyst consensus is basically congruent with guidance. The 1st Call revenue consensus for the year is published at $48 billion+ but that includes a couple of analysts who have not updated their forecasts and thus haven't included the contribution from Cerner. The “real” consensus is probably about $49 billion+ which implies organic growth adjusted for currency impacts, and the end of the company’s business in Russia of about 8%. That is almost certainly a hyper-conservative set of expectations. Based on the company’s business momentum, and the investments the company is making in its business, I would be surprised to see adjusted organic growth of less than 10% next year, and some further acceleration beyond as some of the revenue synergies that are likely to be achieved through the merger with Cerner are realized.

The further questions that I think need discussion is how will this be possible in a recessionary climate and with the plethora of competitors the company faces. Reaccelerating to 10%+ organic growth after years of not having much growth at all is a considerable inflection, especially given the size of this company, its market share, and the competitive environment in the enterprise software space.

Oracle runs much shorter conference calls than most other software companies. That has been the case for many years, and remains so. And thus, company commentary addressing the issues above is a bit sparse:

So my question is, Safra, Larry, can you give us more color on what's driving that reacceleration in license revenue in particular? Even as cloud revenue inflected to its highest growth rate in more than 4 years, is this BYOL bringing the heat? Is this autonomous database getting big enough and growing fast enough to lift the overall number, et cetera. And is this the broad-based demand that you mentioned on the Q3 call? Or is this more big deal driven?

Safra Catz

So it's a little of both. You see, first of all, large enterprises understand that having an unlimited agreement for some period of time, an unlimited agreement gives them unbelievable flexibility. Any large customer, large database user that does not have an unlimited agreement with us is really not optimizing for their spend because it gives them incredible flexibility.

They can use on-premise for as long as they need it. They can move to the cloud and get a much lower price in the cloud with BYOL, and they can move back and forth. And it just gives us the kind of flexibility. Those agreements are the ultimate sort of the foundation of so much of what goes on.

In addition, of course, in technology, we also have our leading Java business, which on-premise is an extensive use and in the cloud is at no charge. So customers can be motivated to bring their Java to the Oracle Cloud and to use it at no charge, their Java program and to use it at no charge.

So we have a lot of things that incent bringing your Oracle databases to our cloud and, of course, all your Java work to our cloud. So both of those are absolutely critical for our license numbers to be as strong as they are. And the Oracle database, I've been following Oracle for, well, since the '80s. And I always -- we always hear about some new product that's about to overtake Oracle. And the reality is that the Oracle database is beyond the gold standard.

If you really need work done and if you want to protect your most critical data and you want to use large amounts of it, it is going to be the Oracle database that is head and shoulders above every other product. And invariably, some folks try other things when they get bigger, they always come back to the Oracle database It is irreplaceable because of its technical capabilities that are so far superior. And that becomes very, very, very clear to customers and more and more of them license -- continue their license and extend those unlimited agreements, whether for on-premise and in the cloud. It's not either or it's both, and that is the best use of it.

Lawrence Ellison

I'll add 1 thing to that, which is the Oracle Autonomous Database is interesting because it's autonomous. In other words, it doesn't require human beings to run it like database administrators, things like that. Recently, inside of Oracle, inside of our cloud, virtually every database going up for -- to run our cloud, the autonomous database because people don't want to hire database administrators inside of Oracle Corporation. It's just much cheaper to run.

And I think in that sense, the Autonomous database is countercyclical. You do save a huge amount of money just by moving from conventional Oracle database to the autonomous database. It's actually more secure, more reliable and cost Wales to run. You don't need a bunch of experts running it. You don't need anyone to run it.

There is a programming language called APEX, which uses -- it's a low code programming environment where you use 10% the name amount of programmers that you would use if you were programming in our other programming language called Java. And APEX is also becoming very popular inside of Oracle to build applications. I see this as 2 interesting trends as people using more modern technology to dramatically reduce their labor costs, which I think will play very well in the next couple of years in this economy.

Safra Catz

Yes. I think people don't realize how exorbitantly expensive it is to run those large SAP systems. They have data centers associated with them. They have hundreds, sometimes thousands of technicians to run them. They're old, they're clunky and moving to Fusion ERP. It's just a totally different world and costs So - the costs are tiny in comparison. I think people sort of forget that. And this applies really to all on-premise systems, but even more so to those old SAP systems.

And our cloud offering in that area really is unrivaled. Frankly, unrivaled. And we -- our win rates just continue. And we're very optimistic about it, and we've sold a lot. A lot is still being implemented, and we expect that you'll see that in the numbers, while our customers end up spending less than what they use to spend with on-premise.

Oracle has been run by the same team for many years now, with the exception of the passing of former co-CEO Mark Hurd. And the team has certainly had its shares of miscues and wrong choices. The team is also very promotional. That doesn’t mean that everything management says is inaccurate or should be disregarded.

For example, I believe that MongoDB has an excellent and widely respected database solution. And it is really difficult to gainsay the market penetration in the database area achieved by the cloud titans as well as the extraordinary growth of Snowflake. What I believe is happening is that Oracle is starting to realize some of the benefits of its extensive product line. Oracle is a bit unique in having both a competitive, enterprise grade set of ERP solutions and a full featured database. It is not necessary to believe all of the competitive propaganda above in order to believe that Oracle has created a set of offerings that provide users with benefits in terms of flexibility and costs that have reaccelerated growth. That said, I do believe that the benefits of the autonomous database are not all hype, and anecdotal checks I have made suggest it is finally starting to achieve traction with some users.

When it comes to ERP, I confess that the conflicting claims amongst the major competitors, and some of the point players as well, are simply impossible to resolve. Oracle Fusion and SAP S/4 Hana have been mortal rivals in terms of their apps offering for decades now. Oracle and Workday have battled as well. Microsoft Dynamics 365 is another successful competitor in the space that has enjoyed market share gains and excellent growth. The link shown here is quite positive for Oracle’s competitive positioning. Interestingly, the chief competitor listed by this evaluation is NetSuite, which is Oracle’ small/medium business ERP offering. Here is a link to an evaluation which compares the differences between the flagship ERP products offered by SAP and by Oracle. SAP is far larger than Oracle in terms of its revenue from apps, and this is one area in which Oracle can and is apparently achieving market share gains. This evaluator, who is a 3rd party consultant with Oracle experience, maintains that Oracle is his choice between the two leading vendors in the space.

Oracle, which is the largest enterprise focused software company, seems likely to experience at least some cyclical perturbations. But in a mild and brief interruption of overall economic growth, its improving competitive position is likely to buffer the impact. It isn’t necessary to totally believe the comments by Larry Ellison and Safra Katz regarding all of the counter-cyclical demand drivers in order to believe that Oracle’s business will really be able to achieve double digit growth over the next year and beyond.

Oracle’s purchase of Cerner: Will Oracle achieve the necessary synergies?

Cerner is by far Oracle’s largest single acquisition, and it will represent more than 10% of the revenues of the combined entity. In the past, Oracle was an acquisitive organization, but subsequent to the 2016 acquisition of NetSuite, this is the first significant acquisition made by the company. When the Cerner acquisition was announced in December, a few days after the company had announced a strong quarter, Oracle shares fell by about 16% over a two week span, which was noticeably worse than the software ETF, the IGV, which only fell 3% over the same period. Many of the analysts who cover Oracle were skeptical that the acquisition would produce synergies. The company, in the press release announcing the merger said it would be accretive to non-GAAP earnings in the current fiscal year.

Oracle wound up paying $28 billion, or $95/share, for Cerner which was about a 40% premium above Cerner’s share price before the acquisition was announced. Cerner’s growth has been at a glacial pace over the past several years. Since 2018 revenue growth has been less than 10% in total; that is less than 3%/year. On the other hand, the company has been reasonably profitable, although adjusted operating margins in the mid-teens range are far below the levels at which Oracle operates.

This was an all-cash transaction and as Oracle had a cash balance of $22 billion before paying for Cerner, it had to borrow some money. The company already had $76 billion of debt and substantial lines of credit. The cost of debt for Oracle these days is about 3.2%; the weighted average cost of capital calculation is around 6.5%. So, for the transaction to make sense, Oracle has to assume some substantial synergies, both in terms of revenues and expenses, although the expectation of the acquisition adding to non-GAAP EPS in the current year seems a fairly safe projection.

Cerner is one of the leading competitors in the field of health information systems. I have linked here to an analysis of the company's solutions. The company has suffered through years of execution issues and management change. The company's principal competitor is privately held Epic Healthcare. Epic is slightly larger with a 31% share of the relevant market, compared to 25% for Cerner. The link here, delves into the differences and similarities between the two offerings. Most software companies grow by expanding their TAM into adjacencies. Cerner has not been successful with such a strategy which left it vulnerable to being acquired. I feel reasonably sure that Oracle will take the steps necessary to develop a vision and solutions to encompass more of the health care information systems market than Cerner had been able to accomplish.

Oracle and Cerner were not competitors before the merger. But there are enormous cross-sell/up sell opportunities. Health Care has been Oracle’s leading vertical for some time now. Just a few major installations that will be sales targets for the new entity include Indiana University Health, Northwell Health, CarolinaEast Medical Center and Atrium Health. Cerner is the 2nd largest health care software vendor. Some high profile customers include the NHS in the UK, Emory Healthcare and Johns Hopkins Children’s Hospital. Obviously the opportunities to sell Oracle data bases and its Fusion ERP to the Cerner installed base is huge. And the opportunity to leverage Oracle’s healthcare installed base to buy some of the large suite of Cerner apps is substantial as well. Quantifying just what these synergies will represent over time is not really something that I can realistically estimate; I imagine it will be a substantial number compared to Cerner’s current revenue run rate of $5.8 billion.

The cost synergies are easier to triangulate. Oracle’s non-GAAP margin last year was 46%, and the company has forecast that its operating margin would rise from that level. But at the least, it is 3000 basis points above Cerner’s most recent operating margin. Adding 3000 basis points to Cerner’s operating margins and using its latest 12 months of revenue would yield $1.74 billion to Oracle’s operating profits, or about $.50 in incremental EPS after taxes. That is an uplift of 8% to the earnings anticipated in Oracle’s fiscal 2024, and since the company hasn’t explicitly guided to synergistic accretion, it is almost certainly not part of the currently published 1st Call consensus. At the least, assuming that the contribution margins from Cerner will be at rates comparable to Oracle's operating margins will justify the acquisition.

In the last conference call, the CEO talked about a strategy to review Cerner’s entire product portfolio, with a view toward replacing 3rd party products with comparable Oracle solutions. In addition, Cerner’s cloud product will move to OCI. I think the contribution margin from the merger, will, over a couple of years, serve as a decent tailwind to Oracle’s total operating margins, and will serve to fund the research and development effort needed to build the transformative health care solutions management environs.

As might be anticipated, Oracle, has a dramatic vision of how the product strategy incorporating Oracle is going to play out. The vision is pretty dramatic, but like many things with this kind of complexity and scope, execution is going to be key, and there will be elevated expenses and an extended payback. Rather than me interpreting the company’s healthcare software product roadmap, here are the deliverables the company is planning on releasing (from the Q4 conference call):

In health care, we’re in the process of building a complete suite of applications for the entire health care ecosystem, starting with health care providers like hospitals and clinics.

We’re modernizing Cerner’s clinical systems by adding capabilities like a voice user interface and applications like disease-specific AI models for cancer and other diseases. We’re including an IoT device network to Improve patient diagnostics and monitoring. We’re adding administrative systems, including managing the incredibly complex contract workforce that hospitals have as doctors are not bolt-on employees nor are nurses. We are going to help recruiting, scheduling and paying those contract workers according to their contracts.

Inventory at hospitals is enormously complicated. Inventories aren’t in a central location. You find inventory in nurse’s stations outside operating rooms, outside the intensive care unit. There’s inventory everywhere. Managing that inventory is very complicated. We’re adding RFID tags and maps on handheld phones to help people find what they’re looking for quickly. For payers, including insurance companies and governments, we’re automating payment authorization and billing systems. For pharmaceutical companies, we’re integrating our clinical trial system directly into the hospital clinical system, making clinical trials easier to start and faster to complete.

Of course not all of Oracle’s mergers have achieved their objectives. Oracle bought Sun Microsystems back in 2009. The company, somehow, may have gotten a return on the $7.4 billion purchase price, and some of what Sun brought to Oracle’s product offering such as Java has had some level of success. Oracle’s Exadata appliance, while still being sold and supported, certainly turned out to be far from the growth driver the company had expected. Health care software is certainly an opportunity, and Oracle starts with significant assets in its ambition to transform the space. But at the end of the day, given that the transaction is fully justified simply on cost synergies, and the share price certainly doesn’t in any way reflect the potential Oracle has to drive revenue growth through its transformation strategy, if the company is successful in its aspirations, it will be lagniappe for shareholders.

Oracle has used its free cash flow to significantly reduce outstanding shares which are now at 2.78 billion down from 3.02 billion a year ago and down from 4.2 billion just 5 years ago. Because of the consideration Oracle has paid to acquire Cerner, it has indicated that its recent tempo of share repurchases which has been $600 million/ or about 9 million shares/quarter will continue until it has paid down much of the debt associated with the transaction. I suspect this absence of massive share repurchases has been one factor that has muted the share price performance of the shares in the days since earnings were released and the CEO described her plans for the future share repurchase cadence. For long term investors, this pause in high levels of share repurchase shouldn't greatly matter.

Oracle’s Business Model

Oracle has been one of the most profitable software companies for the past decade and more. There are many reasons for the company’s profitability; one of these is that it still derives a significant level of very high margin service renewal revenues, particularly from its database customers who find the expenses associated with migrating to more modern technology simply not worth the problem. Of course, over time, these revenues will continue their decline, and they are being replaced by revenues from cloud solutions which have lower gross margins now, but which eventually will have a significant positive impact on Oracle's margins as the company scales its infrastructure and starts to benefit from very high margin renewals.

In considering Oracle’s model, it is important to note that its business has very seasonal characteristics. In particular, Q4, which is the quarter recently reported, is invariably the strongest quarter of the year with revenues typically growing 10%+ sequentially. Q1 is the company’s smallest quarter, and typically Q2 shows sequential progression from that low point. So, there is no reason to examine quarterly progression. Because Q4 is the seasonal high point for Oracle revenues, operating margins in Q4 have almost invariably been at the highest level in the year. The acquisition of Cerner is going to have a modest impact on dampening seasonality, as Cerner’s model has never been particularly seasonal.

Last quarter, Oracle’s non GAAP operating margin was 47% compared to 49% in the same quarter the prior year. As mentioned earlier, the major factor in the year on year decline in operating margins last quarter was the higher percentage of research and development expense. General and administrative costs rose 21% in constant currency although that cost ratio remained at 3% when rounded. Some of that increase costs related to the merger with Cerner which has now been completed.

For the full year, year research and development expense rose by 11%, and general and administrative expense rose by 5%. Stock based compensation expense rose noticeably last fiscal year, primarily because of Oracle’s hiring activity in the highly competitive research and development cost bucket. The company is projecting that the costs of the merger will lead to some margin contraction in Q1, and EPS is expected not to show material increase compared to the year earlier period. This is net of absorbing about a 4% impact from currency moves. As mentioned above, Oracle has not provided full year 2023 guidance other than to say that the Cerner acquisition, even including the expenses that will be absorbed in Q1.

The company is projecting that it will increase capex somewhat next year. At this point, capex for Oracle is mainly a function of the rate at which it expands its regional data centers to support Oracle's Cloud Infrastructure. It plans to add 6 new regions in the current fiscal year, and increase of a bit more than 15% to its current count of data centers. Thus capex seems likely to be greater than $5 billion, and this probably means that free cash flow generation will be around $10 billion for the full year.

The company’s backlog as mentioned rose quite a bit faster than the increase in reported currencies. On the other hand, the company’s deferred revenue balance did not follow suit. If bookings growth percentages remains at the levels in Q4 and suggested by the company’s guide, at some point it seems likely that deferred revenue growth will become a tailwind to operating cash flow. I have projected that Oracle’s free cash flow margin will reach 17% next year, and it should proceed higher from that point.

Valuation/Wrapping Up

Writing about GARP software companies sometimes seems a contradiction in terms. Most investors in the enterprise software space, at least until the last 8 months, have wanted to see growth, and a reasonable path to profitability and cash flow generation. Now... well given the negative sentiment of that has grown over the past few months, at least until last week, it has been more than a bit unclear what investors have been seeking. Oracle is a bit Janus-faced as an investment. I believe that it now offers shareholders double digit organic growth and sky high operating margins, as well as rising cashflow margins. The cost synergies that Oracle will reap from its recently completed acquisition of Cerner don’t really seem to be reflected in current estimates, perhaps because the company itself, has not provided full year projections. The current published consensus for EPS of $5.27 clearly is at odds with management’s projection that the Cerner merger will be accretive in the current fiscal year.

At this point, my projection suggests that Oracle’s 12 month forward EV/S is 4.45X, and as mentioned I believe the company will be able to achieve a free cash flow margin of 17% in that period after absorbing over $5 billion in capex as it ramps the investment in its cloud infrastructure. Those projections result in a free cash flow yield of just less than 4% on the company’s enterprise value. I project that earnings will be greater than $5.80 over the coming year, so the forward P/E ratio is about 12X.

The company's weighted average cost of capital based on the link I provided earlier in this article is about 6.5%. Using 6.5% in a DPV calculation suggests that Oracle's "fair value" is more than 70% above the current share price based on the company achieving 10%+ growth and a free cash flow margin rising to the mid-30% range.

Will those projections be upended by an economic contraction? The kind of contraction that is being forecast by most seems unlikely to really change the trajectory of enterprise IT purchases. That said, there is certainly more uncertainty in the outlook for growth in IT spending than has been seen in recent years; there is certainly reason to be cautious in terms of expectations given the many unknowables in the environment.

I usually prefer to recommend share gainers in writing about IT investments. Although last quarter was exceptional in terms of data base growth, I doubt that the elements that led to its strength will continue for a full year. There really are many competitors of varying shapes and sizes who have made Oracle’s domination of the data base market of less substance than has heretofore been the case. That doesn’t mean that Oracle’s database revenues won’t grow - they just aren’t likely to grow at the elevated levels achieved last quarter. Oracle, I believe, can be a share gainer in the apps space, and while its cloud infrastructure business isn’t likely to challenge the cloud titans in the foreseeable future, it has a strong growth trajectory which is part of the double-digit growth story as well. Most users perceive performance and functionality advantages to running Oracle apps on it cloud infrastructure.

There are loads of undervalued IT shares out there; it would take weeks of performance like that of Thursday/Friday, 6/23-6/24 to undo the carnage of 8 months, particularly as regards to valuation. But for readers looking for a bit of safety in what has been a hyper-treacherous environment in which to invest in higher growth IT names, Oracle seems to be a reasonable haven. It will never be able to develop the growth or the potential returns of high growth IT, but from current levels there can be significant percentage appreciation.

Mon, 27 Jun 2022 07:19:00 -0500 en text/html
Killexams : Priestess Pythia, the Oracle of Delphi, Spoke Truth to Power

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Tue, 05 Jul 2022 22:54:00 -0500 en-US text/html
Killexams : TikTok Says It's Not Sending US Data Abroad

The Chinese video-sharing app TikTok says it’s hosting the US users data in some data centers within the country and is not sending any data abroad. TikTok wants to confirm it’s not a threat to US national security. However, there are still conflicting reports on the relationship between TikTok and the Chinese government.

The conflict between the United States administration and TikTok started during Trump’s presidency. Trump accused some Chinese platforms and manufacturers of collaborating with the Chinese government and spying on US customers. Both Trump and Biden imposed sanctions on Chinese companies.

To settle the arguments, TikTok started storing its US users’ data in a Virginia-based data center. However, the company is now moving to a new Oracle Cloud Infrastructure after forming a partnership with Oracle. The company announced that they have “changed the default storage location of US user data.”

“Today, 100% of US user traffic is being routed to Oracle Cloud Infrastructure,” TikTok noted in its blog post. “We still use our US and Singapore data centers for backup, but as we continue our work we expect to delete US users’ private data from our own data centers and fully pivot to Oracle cloud servers located in the US.”

TikTok also says it has established a new department “with US-based leadership, to solely manage US user data for TikTok.”

The US officials previously expressed their concerns over how TikTok and its parent company ByteDance might handle the data of US customers. The officials are also trying to limit the activities of Chinese tech companies in the US market.

Moving to a new data center and partnering with Oracle is a part of TikTok’s plan to address the concerns. It also wants to prove its good faith. However, there are still many concerns and unsolved questions over how TikTok treats and handles US users’ data. Some believe the Chinese video-sharing app still has some suspicious ties with the Chinese government.

According to a new report by BuzzFeed News, some “China-based employees of ByteDance have repeatedly accessed nonpublic data about US TikTok users.” This information was revealed to BuzzFeed during internal meetings between last September and January 2022. The report contains quotes from some ByteDance employees saying, “engineers in China had access to US data.”

Also, the report claims that TikTok only stores some US users’ sensitive data, like users’ birth dates and phone numbers, in the Oracle servers. But, more data is still available to ByteDance. “ByteDance’s China-based employees could continue to have access to insights about what American TikTok users are interested in, from cat videos to political beliefs,” the report says.

Mon, 20 Jun 2022 02:17:00 -0500 en-US text/html
Killexams : Senators seek update on U.S. security review of TikTok No result found, try new keyword!Last week, TikTok said it has completed migrating information on its U.S. users to servers at Oracle Corp ... Wicker asked Yellen numerous questions saying the administration "has seemingly ... Fri, 24 Jun 2022 09:29:00 -0500 text/html Killexams : TikTok seeks to calm US lawmakers’ fears about data security

Chinese-owned social media site TikTok told US senators it was working on a final agreement with the Biden Administration that would “fully safeguard user data and US national security interests,” according to a TikTok letter seen Friday by Reuters.

The letter dated Thursday came in response to questions raised in a June 27 letter by a few senators including Republicans Marsha Blackburn and Ted Cruz, TikTok said.

TikTok, owned by Chinese technology conglomerate ByteDance, is one of the world’s most popular social media apps, with more than 1 billion active users globally. It counts the United States as its largest market.

TikTok Chief Executive Shou Zi Chew told senators in the letter the short video app was working with Oracle on “new advanced data security controls that we hope to finalize in the near future.”

Last month, TikTok said it had completed migrating US users’ information to servers at Oracle but it was still using US and Singapore data centers for backup.

TikTok’s letter acknowledged that China-based employees “can have access to TikTok US user data subject to a series of robust cybersecurity controls and authorization approval protocols overseen by our US-based security team.”

TikTok Chief Executive Shou Zi Chew, left, told lawmakers he hopes to finalize security controls in the near future.
TikTok Chief Executive Shou Zi Chew, left, told lawmakers he hopes to finalize security controls in the near future.

TikTok said it expected “to delete US users’ protected data from our own systems and fully pivot to Oracle cloud servers located in the US”

TikTok has sent a response to the senators’ letter, a company spokesperson said in a statement to Reuters. “We look forward to connecting with members of Congress to discuss the substance of our letter.”

TikTok is working to build US-based engineering capacity to further reduce the need for data access across regions, the spokesperson added.

Senator Blackburn, of Tennessee, said TikTok “should have come clean from the start but instead tried to shroud their work in secrecy.” She said TikTok needs to “come back and testify before Congress.”

The TikTok letter came nearly two years after a US national security panel ordered ByteDance to divest TikTok because of fears that US user data could be passed on to China’s communist government.

That order was not enforced after Joe Biden succeeded Donald Trump as US president last year. The panel, however, known as the Committee on Foreign Investment in the United States (CFIUS), is still conducting a national security review of the company, according to the letter.

“We know we are among the most scrutinized platforms from a security standpoint and we aim to remove any doubt about the security of US user data,” the letter said.

TikTok has said in the past that employees in China have data access to US user data. In a 2020 blogpost Roland Cloutier, TikTok’s chief information security officer, said, “Our goal is to minimize data access across regions so that, for example, employees in the APAC region, including China, would have very minimal access to user data from the EU and US.”

A BuzzFeed story in June showed ByteDance engineers in China had access to US data between September 2021 and January 2022.

The letter also said “ByteDance developed the algorithms for both Douyin and TikTok, and therefore some of the same underlying basic technology building blocks are utilized by both products.” TikTok is known as Douyin in China.

But TikTok’s business logic, algorithm, integration and deployment of systems is specific to the TikTok application and separate from Douyin, the letter said.

Reuters previously reported that while the code for the app, which determines the look and feel of TikTok, has been separated from Douyin, the server code was still partially shared across other ByteDance products. The server code provides basic functionality of the apps such as data storage, algorithms for moderating and recommending content and the management of user profiles. 

The Chinese government took a stake and a board seat in a key ByteDance entity in 2021. 

TikTok explained in its letter to the senators that its acquisition of 1% of Beijing Douyin Information Service Ltd was necessary to obtain a news license in China.

Fri, 08 Jul 2022 01:43:00 -0500 en-US text/html
Killexams : Interview: How Oracle plans to bring the public cloud to companies’ on-premise data centers No result found, try new keyword!Cloud adoption, including hybrid and multi-cloud models, has been expanding fast among all kinds of companies globally. The pandemic further strengthened the case for cloud adoption with a large ... Thu, 14 Jul 2022 20:22:00 -0500 en-in text/html Killexams : Distributed Cloud Service Market Growth Forecast 2022-2028 | IBM, Stefanini, Pluribus Networks, Oracle, Huawei

New Jersey, United States- Distributed Cloud Service Market 2022 – 2028, Size, Share, and Trends Analysis Research Report Segmented with Type, Component, Application, Growth Rate, Region, and Forecast | key companies profiled – IBM, Stefanini, Pluribus Networks, Oracle, Huawei and others.

A Distributed Cloud service is a utilization of cloud processing innovations of interconnect information and applications served from numerous geographic areas. distributed cloud services Computing sums up the cloud figuring model to position, cycle, and serve information and applications from geologically distributed locales to meet necessities for execution, overt repetitiveness and guidelines. A distributed cloud service implies that the calculation, stockpiling, and services administration are in a miniature cloud situated outside the concentrated cloud. The distributed cloud service is nearer to the end-client as a decentralized cloud service. With a distributed cloud services model, associations diminish idleness, network clog, and chance of information misfortune. Moreover, associations can all the more likely ensure consistency with information power guidelines since information can be kept in the country it was produced in.

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Top Key Players of Distributed Cloud Service Market Report are Amazon web services, IBM Corp., Microsoft Corp., Digital Ocean Inc, Pivotal Inc, Google LLC, VMware Inc., Alibaba Corp., Salesforces Inc., Cloud Sigma Inc.

Ascend in reception of information the board produced by high utilization of versatile advancements, expanded need of low information recuperation, developing reception of digitalization, overseeing increment jobs and information, upgraded information recuperation are a portion of the vital driving variables for the development of this market. Moreover, the distributed cloud service can move towards an improved distributed cloud services figuring with the top of the line security are likewise adding the fuel for the development of this market. Be that as it may, concerns connected with security might block the development of the market. Moreover, reception of cloud advances, new item dispatches and rising revenue of the government to carry out and advance cloud innovations are supposed to help the bright open doors for the market.

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Distributed cloud services help to work on the protection by keeping the information in the district which is neighbor or nearby notwithstanding, the components for the way control and subsequently to store the information need to head out far even to show up at a nearby cloud. Furthermore, when information needs earnest handling and isn’t put away openly, in this way capacity gadgets possessed by the information proprietors can be moved to another enormous server farm. This approach might build the worries for the information proprietorship and subsequently made issues related with the security. Furthermore, the administration of safety of distributed services as information access in unified registering service requires more support and security and in this manner these difficulties might obstruct the development of the market.

Distributed Cloud Service Market Segmentation:

The BFSI portion is expected to hold the biggest offer in 2021 attributable to the rising interest for coordinated, adaptable, and practical figuring. distributed cloud services model conveys creative client encounters, viable coordinated effort consequently improving the market development. Adding to this, high entrance of crossover cloud and expanding number of computerized administrations and their applications in the area is improving the market development. Additionally, information sharing, information security, and classification are upgrading the market development attributable to their broad use in BFSI. Besides, distributed cloud services give a stage to upgrading the financial tasks while conveying creative administrations to the client, which is subsequently supporting the interest for the distributed cloud services fragment for the BFSI space. Different exchanges can be examined, each consequently working on the business’ capacity to fight monetary wrongdoing, for example, misrepresentation and tax evasion. Coordinated development, risk moderation, and money saving advantages are the three factors that were distinguished by the British Bankers’ Association (BBA) in 2018 for the reception of public cloud-based administrations by banks.

Regional Analysis

The worldwide distributed cloud services market was overwhelmed by North America. Factors like digitalization, the presence of a critical number of organizations, information security, information reinforcement, and information recuperation are essential drivers of North American distributed cloud services administration market development. Also, the rising utilization of cloud processing, IoT, etc increments market development. Furthermore, the development of the distributed cloud services administration market is being reinforced by modern robotization, further developed help to customers for quick questions, and others.

The following are some of the reasons why you should Buy a Distributed Cloud Service market report:

  1. The Report looks at how the Distributed Cloud Service industry is likely to develop in the future.
  2. Using Porter’s five forces analysis, it investigates several perspectives on the Distributed Cloud Service market.
  3. This Distributed Cloud Service market study examines the product type that is expected to dominate the market, as well as the regions that are expected to grow the most rapidly throughout the projected period.
  4. It identifies recent advancements, Distributed Cloud Service market shares, and important market participants’ tactics.
  5. It examines the competitive landscape, including significant firms’ Distributed Cloud Service market share and accepted growth strategies over the last five years.
  6. The research includes complete company profiles for the leading Distributed Cloud Service market players, including product offers, important financial information, current developments, SWOT analysis, and strategies.

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Table of Contents:

1 Distributed Cloud Service Market Overview
2 Company Profiles
3 Distributed Cloud Service Market Competition, by Players
4 Distributed Cloud Service Market Size Segment by Type
5 Distributed Cloud Service Market Size Segment by Application
6 North America by Country, by Type, and by Application
7 Europe by Country, by Type, and by Application
8 Asia-Pacific by Region, by Type, and by Application
9 South America by Country, by Type, and by Application
10 Middle East & Africa by Country, by Type, and by Application
11 Research Findings and Conclusion
12 Appendix…

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Fri, 15 Jul 2022 01:34:00 -0500 Newsmantraa en-US text/html
Killexams : TikTok tells Republican senators how it plans to keep American data away from China.

TikTok gave U.S. lawmakers more details in a letter dated Thursday about how it plans to keep data about its American users separate from ByteDance, its Chinese parent company, aiming to combat concerns that the video app poses a national security risk.

In a letter to nine Republican senators, Shou Zi Chew, TikTok’s chief executive, explained how the company would operate the app from servers controlled by Oracle, the U.S. cloud computing giant. TikTok would be run from the American company’s machines and audited by a third party, Mr. Chew said. He also reiterated a plan to store American users’ personal information with Oracle, rather than on TikTok’s servers.

“We know we are among the most scrutinized platforms from a security standpoint, and we aim to remove any doubt about the security of U.S. user data,” Mr. Chew wrote in the letter, which was obtained by The New York Times.

TikTok, which is highly popular for its short and viral meme-making videos, has been working to rebut concerns that it is a national security risk. For years, critics of the app have thinking that the Chinese government would request data belonging to Americans directly from ByteDance and that TikTok was subject to the influence of the Chinese Communist Party.

In 2020, President Donald J. Trump cited those concerns and demanded that ByteDance sell TikTok if the app was to remain in American app stores. His administration later announced a deal in which ByteDance would sell at least part of TikTok to Oracle, though the transaction never came to fruition.

TikTok remains under the scrutiny of the Committee on Foreign Investment in the United States, a group of government agencies that vets foreign purchases of American companies.

Last month, BuzzFeed News reported that ByteDance employees had gained access to the app’s data as recently as this year and that employees were struggling to cordon off information collected by the app.

After the report, nine Republican senators — including Marsha Blackburn of Tennessee and John Thune of South Dakota — wrote to TikTok with questions about its practices. Last month, a member of the Federal Communications Commission also said Apple and Google should remove TikTok from their app stores.

In Mr. Chew’s letter responding to the Republican senators, he said ByteDance employees in China could get access to TikTok data only when “subject to a series of robust cybersecurity controls and authorization approval protocols overseen by our U.S.-based security team.”

He also reiterated the company’s hope that it would soon be able to delete U.S. data from its servers and store the information entirely with Oracle. (Some details of its plans were first reported by BuzzFeed.)

“We have not spoken publicly about these plans out of respect for the confidentiality of the engagement with the U.S. government, but circumstances now require that we share some of that information publicly to clear up the errors and misconceptions in the article and some ongoing concerns related to other aspects of our business,” he said.

But Mr. Chew also made it clear that ByteDance employees in China would still be working on TikTok. Those employees can still develop the algorithm that feeds personalized video recommendations to TikTok’s users, he said, though Oracle would “ensure that training of the TikTok algorithm” happens only on its servers.

And certain information — like public videos and comments — would remain available to ByteDance employees under conditions approved by the U.S. government, he wrote, to “ensure global interoperability so our U.S. users, creators, brands and merchants are afforded the same rich and safe TikTok experience as global users.”

Ms. Blackburn said in a statement on Friday that Mr. Chew’s letter proved that fears about the Chinese Communist Party’s influence on the company “were well founded.”

“The Chinese-run company should have come clean from the start, but it attempted to shroud its work in secrecy,” she said, adding that TikTok needed to testify before Congress again.

Fri, 01 Jul 2022 10:43:00 -0500 en text/html
Killexams : UPDATE 2-TikTok seeks to reassure U.S. lawmakers on data security

(Adds more details from TikTok letter)

By David Shepardson and Echo Wang

July 1 (Reuters) - Chinese-owned social media site TikTok told U.S. senators it was working on a final agreement with the Biden Administration that would "fully safeguard user data and U.S. national security interests," according to a TikTok letter seen Friday by Reuters.

The letter dated Thursday came in response to questions raised in a June 27 letter by a few senators including Republicans Marsha Blackburn and Ted Cruz, TikTok said.

TikTok, owned by Chinese technology conglomerate ByteDance, is one of the world's most popular social media apps, with more than 1 billion active users globally. It counts the United States as its largest market.

TikTok Chief Executive Shou Zi Chew told senators in the letter the short video app was working with Oracle Corp on "new advanced data security controls that we hope to finalize in the near future."

Last month, TikTok said it had completed migrating U.S. users' information to servers at Oracle but it was still using U.S. and Singapore data centers for backup.

TikTok's letter acknowledged that China-based employees "can have access to TikTok U.S. user data subject to a series of robust cybersecurity controls and authorization approval protocols overseen by our U.S.-based security team."

TikTok said it expected "to delete U.S. users' protected data from our own systems and fully pivot to Oracle cloud servers located in the U.S."

TikTok has sent a response to the senators' letter, a company spokesperson said in a statement to Reuters. "We look forward to connecting with members of Congress to discuss the substance of our letter."

TikTok is working to build U.S.-based engineering capacity to further reduce the need for data access across regions, the spokesperson added.

Senator Blackburn, of Tennessee, said TikTok "should have come clean from the start but instead tried to shroud their work in secrecy." She said TikTok needs to "come back and testify before Congress."

The TikTok letter came nearly two years after a U.S. national security panel ordered ByteDance to divest TikTok because of fears that U.S. user data could be passed on to China's communist government.

That order was not enforced after Joe Biden succeeded Donald Trump as U.S. president last year. The panel, however, known as the Committee on Foreign Investment in the United States (CFIUS), is still conducting a national security review of the company, according to the letter.

"We know we are among the most scrutinized platforms from a security standpoint and we aim to remove any doubt about the security of U.S. user data," the letter said.

TikTok has said in the past that employees in China have data access to U.S. user data. In a 2020 blogpost Roland Cloutier, TikTok's chief information security officer, said, "Our goal is to minimize data access across regions so that, for example, employees in the APAC region, including China, would have very minimal access to user data from the EU and US."

A BuzzFeed story in June showed ByteDance engineers in China had access to U.S. data between September 2021 and January 2022.


The letter also said "ByteDance developed the algorithms for both Douyin and TikTok, and therefore some of the same underlying basic technology building blocks are utilized by both products." TikTok is known as Douyin in China.

But TikTok's business logic, algorithm, integration and deployment of systems is specific to the TikTok application and separate from Douyin, the letter said.

Reuters previously reported that while the code for the app, which determines the look and feel of TikTok, has been separated from Douyin, the server code was still partially shared across other ByteDance products. The server code provides basic functionality of the apps such as data storage, algorithms for moderating and recommending content and the management of user profiles.

The Chinese government took a stake and a board seat in a key ByteDance entity in 2021.

TikTok explained in its letter to the senators that its acquisition of 1% of Beijing Douyin Information Service Ltd was necessary to obtain a news license in China. (Reporting by David Shepardson in Washington D.C. and Echo Wang in New York; Additional reporting by Diane Bartz in Washington D.C.; Editing by Richard Chang)

Fri, 15 Jul 2022 05:16:00 -0500 en-US text/html
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