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Mcafee Demonstrative Regression On Oracle Percentage Discounts

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GOVERNMENT EXHIBIT 4023-B

Regression on Oracle's
Percentage Discounts

  • Estimates the effects of competitors and size of deal on Oracle's percentage price discount (on its eBusiness Suite)
  • Source of Data
    • Ciandrini's charts of discount trends

Percentage Discount Regression

Oracle Price Discount Regressions

Dependent variable: Percentage Price Discount on eBusiness Suite

  (1) (2)
PeopleSoft

.102
(0.040)
[.013]

0.097
(0.049) [.056]

JD Edwards 0.068
(0.035)
[.056] 		0.071
(0.058)
[.228]
SAP 0.038
(0.046)
[.403]		 0.097
(0.074)
[.197]
Siebel 0.033
(0.043)
[.445]		 0.030
(0.051)
[.561]
Niche 0.003
(0.030)
[.925]		 -0.052
(0.044)
[.248]
Deal < $250k 0.205
(0.044)
[<.001]
$250k < Deal < $500k 0.143
(0.046)
[.003]
$500 < Deal < $1M -0.027
(0.052)
[.596] 		0.015
(0.043)
[.723]
Constant 0.617
(0.042)
[<.001]		 0625
(0.040)
[<.001]
R2 0.333 0.287
N 126 37
PeopleSoft .102 0.097
  • The presence of PeopleSoft causes Oracle to offer an additional discount of approximately 10 percentage points
  • Two regressions translate into 22% and 26% price decreases, respectively

Appendix II - Revised Table Six

Oracle Price Discount Regressions

Dependent variable: Percentage Price Discount on eBusiness Suite

(1) (2)
PeopleSoft .102
(0.040)
[.013]		 0.097
(0.049)
[.056]
JD Edwards 0.068
(0.035)
[.056]		 0.071
(0.058)
[.228]
SAP 0.038
(0.046)
[.403]		 0.097
(0.074)
[.197]
Siebel 0.033
(0.043)
[.445]		 0.030
(0.051)
[.561]
Niche 0.003
(0.030)
[.925]		 -0.052
(0.044)
[.248]
Deal<$250k -0.205
(0.044)
[<.001]
$250k -0.143
(0.046)
[.003]
$500k -0.027
(0.052)
[.596]		 -0.015
(0.043)
[.723]
Constant 0.617
(0.042)
[<.001]		 0.625
(0.040)
[<.001]
R2 0.333 0.287
N 126 37

Notes: Data from ORCL-EDOC-00303129-34 and ORCL-EDOC-01156753-58. Standard errors are in parentheses; p-values are in brackets.

Updated August 14, 2015