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Government Exhibit [Non-designated testimony redacted]

00001
1 SOME PORTIONS DESIGNATED HIGHLY CONFIDENTIAL
2          SUBJECT TO PROTECTIVE ORDER
3          ENTERED ON MARCH 1, 2004
4                   * * *
5          UNITED STATES DISTRICT COURT
6 FOR THE NORTHERN DISTRICT OF CALIFORNIA
7          SAN FRANCISCO DIVISION
8 _____________________________________
9 UNITED STATES OF AMERICA, et al.
10          Plaintiffs
11 -v- Case No: C-04-00807 (VRW)
12 ORACLE CORP.
13          Defendant
14 _____________________________________
15          DEPOSITION OF
16          DAVID L. DORTENZO
17          VOLUME 1
18          Wednesday, May 5, 2004
19          9:24 A.M. TO 5:22 P.M.
20          held at
21          1735 New York Avenue, Northwest
22          Washington, D.C.

00005
1          ***PROCEEDINGS***
2          DAVID L. DORTENZO,
3          called as a witness in this case,
4 having been first duly sworn upon his oath,
5          testified as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

00008
 
 
 
 
 
 
 
8    Q. Okay. Very good.
9          Mr. Dortenzo, for the record, can you
10 spell your name and also state where you work, and
11 give the address of your employer.
12    A. Sure. It's Dave D-O-R-T-E-N-Z-O. I'm
13 a principal with Deloitte Consulting. My business
14 address is 1000 One PPG Place, Pittsburgh,
15 Pennsylvania, 15222.
16    Q. All right. And now, is that Deloitte
17 Consulting LLP?
18    A. That is Deloitte Consulting LLP.
19    Q. And how long have you worked at the
20 Deloitte Consulting?
21    A. A little bit over ten years. I started
22 in April of 1994.

00009
1    Q. Okay. And what did you do before that?
2    A. I was a consultant with Pricewaterhouse
3 from 1981 through 1994.
4    Q. Okay.
5    A. I was in industry for four years before
6 that.
7    Q. Okay. And what do you do as a
8 principal of Deloitte Consulting?
9    A. I manage our U.S. operations for our
10 Oracle consulting practice. I'm responsible for
11 all of our consulting operations, our partner
12 deployment, and staff growth.
13    Q. Now, at one time were you a global
14 leader for the Oracle practice?
15    A. Yes. I was a global leader last year.
16    Q. And when did that end?
17    A. That changed in this fiscal year, which
18 began in June of 2003.
19    Q. June 2003.
20    A. Uh-huh.
21    Q. Why -- what was the reason for that
22 change?

00010
1    A. The reason for that change was that the
2 Deloitte Consulting was folded back into Deloitte
3 & Touche's parent organization, and the accounting
4 structure within the organization is of a
5 country-specific nature. And so the leaders are
6 assigned to the country levels, and not to the
7 global levels.
8          There are some global leaders that are
9 more responsible for alliance operations,
10 relationship-type of operations than they are the
11 consulting operations and the actual practice of
12 consulting in the field.
13    Q. Okay. Now, that was a lot of
14 information. I just want to go through it so that
15 it's clear.
16 You said Deloitte Consulting was folded
17 back into Deloitte & Touche?
18    A. That's correct.
19    Q. What's Deloitte & Touche?
20    A. The -- there's the parent corporation,
21 Deloitte Touche Tohmatsu, that is the global
22 holding company.

00011
1          The parent organization for Deloitte
2 Consulting is Deloitte & Touche LLP USA.
3          Deloitte & Touche LLP USA is divided
4 into two partnerships. Deloitte Consulting LLP
5 and Deloitte & Touche LLP so there are two
6 organizations that fold up into Deloitte & Touche
7 LLP USA, and that is part of holding company of
8 Deloitte & Touche and Tohmatsu on a global basis.
9    Q. Deloitte & Touche Tohmatsu --
10    A. Tohmatsu.
11    Q. Is that headquartered in Switzerland?
12    A. That's a Swiss Verein.
13    Q. What's a Verein?
14    A. It's a holding of partnerships.
15    Q. That's just the Swiss terminology for
16 holding and partnerships?
17    A. Yes.
18    Q. Okay. And then Deloitte & Touche LLP
19 USA that's the parent organization for both
20 Deloitte & Touche and Deloitte Consulting?
21    A. That's correct.
22    Q. And you work for Deloitte Consulting.

00012
1    A. That is correct.
2    Q. Now, before June when there was that
3 reorganization, how did Deloitte Consulting fit
4 into this organization?
5    A. It was a very similar structure, but
6 what was going on at the time was Deloitte
7 Consulting was going to spin off from that
8 structure and become -- it's a legal entity, and
9 it's an organization. The partners voted against
10 that spin-off, and that's when the organizational
11 change took place that is reflected in the
12 structure that I just explained.
13    Q. Okay. So was Deloitte Consulting,
14 before June, solely a U.S. organization?
15    A. No, Deloitte Consulting was a global
16 organization at that time.
17    Q. And --
18    A. That's when I had the global
19 responsibilities.
20    Q. Okay. So at that time -- at that time
21 Deloitte Consulting operated globally and not just
22 in the U.S.

00013
1    A. That's right.
2    Q. Now, after the reorganization, do you
3 still provide global services through the
4 consulting organization?
5    A. We do. We do, through national
6 organizations and global organizations, we're
7 involved on a global basis in our local practice.
8    Q. So do you continue to work with some of
9 the same people that you worked with in other
10 countries before the reorganization?
11    A. Yes, we do.
12    Q. They've just been reorganized into a
13 different way within Deloitte Touche Tohmatsu?
14    A. That's correct.
15    Q. Is there anybody else who is nominally
16 the leader of the global organization for
17 Oracle -- for the Oracle practice any longer?
18    A. No. There is a Global Alliance
19 Partner, but they're not operations --
20    Q. Who is the Global Alliance Partner?
21    A. Jeff Plewa, P-L-E-W-A.
22    Q. And where is he located?

00014
1    A. Chicago.
2    Q. So he's in the U.S., too?
3    A. Uh-huh.
4    Q. And you are the U.S. --
5    A. Practice Leader.
6    Q. Practice Leader?
7    A. Responsible for Oracle operations.
8    Q. And are you a Practice Leader for any
9 other -- for any other groups within Deloitte
10 Consulting?
11    A. Not at this time.
12    Q. Okay. And have you been in the past?
13    A. Yes, I have.
14    Q. Was Retek one of those groups for which
15 you were --
16    A. Retek was one of the practices that I
17 was responsible for.
18    Q. Okay. And when were you responsible
19 for the Retek practice?
20    A. Retek was the last fiscal year, so it
21 would have been from June of 2002 until June of
22 2003.

00015
1    Q. Okay. And why did your responsibility
2 for the Retek practice end?
3    A. Retek is a specialty software
4 operation, and we folded that responsibility back
5 into our industry practice, because the expertise
6 required to implement Retek was very specific to
7 our consumer business retail -- excuse me --
8 industry segment.
9    Q. Okay. And by the way, how long have
10 you been, before the reorganization, how long were
11 you the Global Practice Leader for the Oracle
12 practice?
13    A. 18 months.
14    Q. And what was your position in relation
15 to Oracle before that?
16    A. I was the Oracle Americas Leader before
17 that, for one year. And for the year prior to
18 that I was the Central Region Practice Leader.
19    Q. For Oracle, too?
20    A. For Oracle. The year ... yeah, that's
21 right.
 

00016
 
 
 
 
 
 
 
8    Q. Eighteen months back would be about to
9 the end of 2000 -- no, the beginning of 2002?
10    A. Should be the mid of 2002. The global
11 responsibility that I had was June of 2002 through
12 the calender year of 2003.
13          When I mentioned that earlier that
14 Deloitte Consulting folded back into Deloitte &
15 Touche, the legal date for that transaction was
16 actually December of 2003.
17    Q. Okay. I understand.
18    A. So as we went through -- the overlap
19 that I was trying to explain is from June of 2003
20 until December of 2003 I was still the global
21 leader although the organization was shifting to
22 the country-specific organizations, so we started

00017
1 to ramp down some of the global responsibilities.
2 But I still had the title, if you will, through
3 December of 2003.
4          So it would have been June of 2002
5 through December 2003, eighteen months.
6    Q. And as the U.S. Practice Leader, that
7 would have been for the year before June 2002, so
8 from about --
9    A. That's correct --
10    Q. June 2001 to June 2002?
11    A. That's correct.
12    Q. And Central Practice, it would have
13 been about June 2000 to about June 2001?
14    A. That's right.
 
 
 
 
 
 
 
 

00018
 
2    Q. Immediately before you became the
3 Central Practice Leader were you working with --
4    A. I was working with Oracle --
5    Q. [Inaudible] software --
6    A. Sorry. I did have -- we have major and
7 minor responsibilities, so I was an energy
8 practitioner as a partner within the firm.
9    Q. Uh-huh.
10    A. I had a minor or a secondary
11 responsibility in the software packages practice.
12          And while I was at British Petroleum,
13 which is where my assignment was as a line
14 partner, as the lead client service partner on
15 that engagement, we did work with both Oracle and
16 SAP.
17    Q. Okay. Was that your first work with
18 this enterprise software at British Petroleum? Or
19 had you been working for some time with this
20 software in your practice before that?
21    A. I had been working --
22

00019
 
 
 
 
 
 
 
 
 
 
 
 
 
14    Q. Are you familiar with the term ERP or
15 Enterprise Resource Planning?
16    A. I am.
17    Q. What is that, or how do you use that
18 term at Deloitte?
19    A. Well, ERP is a categorization of type
20 of software that discusses the scope of that
21 particular software and how it can be used within
22 the company.

00020
1          So when we talk about ERP, typically we
2 refer to software that can be used throughout the
3 entire enterprise which takes care of financials,
4 which takes care of order management and customer
5 relationship management, and also fulfills supply
6 chain applications, and business processes. So
7 when we talk about ERP within the firm, that's the
8 scope of processes and applications we usually
9 think of.
10    Q. Does it include a human resource
11 functionality also?
12    A. It can. At Deloitte we have a separate
13 practice that's entitled the "Human Capital
14 Practice," that also deals with human resource
15 solutions.
16          So sometimes we do incorporate HR
17 applications into the ERP, and sometimes we deal
18 with them independently through our Human Capital
19 Practice.
20    Q. Okay. And in terms of the types of
21 software that is used for the financial management
22 of the corporation for enterprise purposes, can

00021
1 you just provide some examples of that, of what
2 that software is?
3    A. Application examples, Kent or brand
4 names --
5    Q. Like a general ledger, for example.
6    A. Financials usually incorporates general
7 ledger, accounts payable, accounts receivable,
8 fixed assets, the primary applications.
9    Q. Okay. And in your Human Capital
10 software packages, what are the types of
11 functionality that are normally included within
12 that area?
13    A. Basically human resources and payroll
14 processes.
15    Q. Okay. Is an added functionality that
16 is often included now a self-service
17 functionality?
18          MR. YATES: Objection. Vague.
19 BY MR. BROWN:
20    Q. You can answer the question.
21    A. Okay. Self-service is a feature within
22 applications. It can be a feature that's involved

00022
1 around human resources. It can also be involved
2 around customer relationship and supply chain as
3 well, depending on how that application is
4 designed.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

00023
 
 
 
 
 
 
 
 
 
10    Q. Okay. I understand.
11          Now, just one little piece more on your
12 background. At any time have you been responsible
13 for another -- any other practices at Deloitte,
14 other than Oracle and Retek?
15    A. Yes.
16    Q. What-
17    A. I had responsibility for the PeopleSoft
18 practice from June of 2001 to June of 2002, as
19 well as Oracle.
20    Q. And were you the global leader for that
21 practice too?
22    A. The Americas.

00024
1    Q. Americas.
2    A. That was the years I was Americas.
3    Q. All right. Now, I'd like if you could,
4 could you just explain what a -- the Oracle
5 practice is at Deloitte.
6          What do you mean when you say "the
7 Oracle practice"?
8    A. We have -- we have a number of staff
9 who specialize in implementing the suite of
10 applications that Oracle sells in the marketplace.
11          In addition -- those could be HR,
12 financials, same thing we talked about earlier,
13 CRM, supply chain.
14          In addition to implementing those
15 applications we have practitioners that specialize
16 in Oracle technology. So when I say "Oracle
17 technology," what I mean is the database
18 applications, the integration of the Oracle
19 software with any other legacy systems that a
20 client might have within their organization.
21          And the other services that we provide
22 around technology have to do with applications,

00025
1 database administration. So it's managing the set
2 of applications, sizing those applications, tuning
3 them from a performance perspective, making sure
4 that the tables are set up correctly, and that the
5 patches that come out and the updates that come
6 from Oracle are applied.
7          So the scope of our Oracle practice is
8 comprised of practitioners who deliver those
9 services to the marketplace.
10          We will take those practitioners, and
11 join them with practitioners from our industry
12 specialties within the firm, and that generally
13 speaking constitutes the project -- the people
14 component of our projects as we deliver services
15 to the market.
 
 
 
 
 
 
 

00026
 
2    Q. Okay. By the way, with respect to --
3 with respect to the focus of my questions today,
4 I'm going to be asking primarily about the ERP
5 applications dealing with finance and HR. And
6 only peripherally covering the applications that
7 might deal with the CRM -- I think that's customer
8 relationship management.
9    A. Correct.
10    Q. And supply chain management.
11          If I'm asking a question about
12 applications, will you be sure to think of it in
13 terms of financial management and HR management?
14    A. I will.
15 BY MR. BROWN:
16    Q. If I want to talk, or ask about the CRM
17 or the supply chain management applications, I'll
18 extend the question to those areas.
19    A. Okay.
20    Q. Now, can you tell me a little bit about
21 what types of clients Deloitte works with, with
22 its Oracle and its PeopleSoft practices?

00027
1    A. We practice across seven different
2 industries to a number of client companies. There
3 are about 2000 clients in our Deloitte & Touche
4 portfolio.
5          Those clients, generally speaking,
6 range in revenue size from $500 million revenue,
7 all the way up to the largest organizations in the
8 world like General Motors. So multiples of
9 billions.
10    Q. And do you recall what the seven
11 industry practice areas are on which you
12 specialize?
13    A. We can go through them -- I think I'll
14 get them all.
15          It's consumer business; financial
16 services; manufacturing; public sector; health
17 care; technology, media and telecommunications;
18 and energy.
19    Q. Now, when you talk about the 2,000
20 clients that you have at Deloitte Consulting, are
21 those the 2,000 - are those 2,000 clients that
22 Deloitte Consulting has for its U.S. operations?

00028
1    A. It is. That is our client portfolio.
2    Q. Okay. And in addition to PeopleSoft
3 and Oracle, do you have any other -- do you have
4 any other practices that are -- in which you
5 provide ERP solutions to -- and that's the
6 financial and HR solutions -- to these groups of
7 clients?
8    A. We do. We have an SAP practice
9 effective, as of the first of the year, as the
10 firm is all back together there is also Lawson in
11 our portfolio.
12    Q. Okay.
13    A. That's primarily it. Retek is still
14 part of the industry practice, so we still do deal
15 with Retek. And then any particular software
16 applications that support any of these might as
17 well be included in our ERP practice as well,
18 because that falls under our packages practice.
19 So if we were dealing with a specific, or as a
20 term "bolt-on packages," something to do with
21 sales tax, we would also potentially have
22 practitioners who have that expertise as part of

00029
1 this practice.
2    Q. Okay. So now, when you talk -- when
3 you are talking about this, this would be software
4 that would be used together with one of the ERP
5 packages that of, say, PeopleSoft, Oracle, SAP or
6 Lawson?
7    A. That's right. That's right.
8 "Complementary," I guess, might be a good term.
9    Q. Can you just give us an example of a
10 type of software that would potentially be used to
11 complement one of the ERP packages?
12    A. Sure. It's a company named Vertex,
13 V-E-R-T-E-X. Vertex's specialty is to deal with
14 sales tax, use tax, processing. So as clients
15 look at their financial processes and have to deal
16 with taxation issues, that software is specialized
17 to work together with the ERP softwares to deliver
18 that functionality to manage that tax function for
19 our clients.
20          So we will implement that together with
21 the ERP packages in a lot of cases.
 

00030
1          Now, you mentioned after the first of
2 the year, your practice with respect to a Lawson
3 was within Deloitte Consulting.
4    A. Uh-huh.
5    Q. Did any of the Deloitte groups have a
6 Lawson practice prior to that time?
7    A. The Lawson practice was managed from
8 our Deloitte & Touche organization prior to the
9 reorganization of the firm, effective December --
10 December 27th was that date.
 
 
 
 
 
 
 
 
 
20    Q. Why don't - I think that's a good
21 idea. After 2004,I think you said there's an
22 umbrella organization, and you have -- on one side

00031
1 you have Deloitte & Touche and Deloitte Consulting
2 on the other side.
3    A. Uh-huh.
4    Q. And so to make the question more
5 specific, now, how was -- how are the functions of
6 those two organizations split up?
7    A. Currently they are split where all the
8 consulting, effective, again, December 27th, 2003,
9 all the consulting is housed within Deloitte
10 Consulting LLP.
11          Prior to that, and for a period of very
12 close to ten years, about the time I started with
13 the firm, the Deloitte & Touche organization had
14 commissioned the startup of a practice that was
15 called Management Solutions, which was a
16 consultancy that was more dedicated to serving
17 audit clients, and typically smaller clients, than
18 what Deloitte Consulting served in its
19 marketplace.
20          When I say "smaller," in terms of
21 company revenue, again generally speaking.
22          So over that period often years, the

00032
1 Management Solutions organization had grown, and
2 the -- one of the services that they delivered to
3 the marketplace was around Lawson implementation.
4 That practice was primarily focused around health
5 care, although there were also retail and public
6 sector implementations of Lawson taking place at
7 that time.
8          So they served primarily those three
9 industries.
10          When the firm reorganized, and the
11 Braxton separation was voted down and the firm
12 reorganized and became effective again December
13 27th.
14          All of the software practices --
15 software package practices and operations shifted
16 at that time into Deloitte Consulting.
17    Q. Okay. Did the -- did the Management
18 Solutions practice focus primarily on operations
19 that were within the U.S.?
20    A. Not exclusively. Primarily, but not
21 exclusively.
22          Said differently, if we ran into a

00033
1 client situation from a solutions perspective that
2 had global operations, again, that would be served
3 from the company headquarters site. So if the
4 company was headquartered in the U.S. and had
5 tentacles into Europe or another part of the
6 world, then U.S. firm would also serve that global
7 client.
8    Q. Okay. I guess what I'm trying to get a
9 more precise definition of the types of companies
10 that were served by Management Solutions prior to
11 the reorganization.
12          MR. YATES: Objection. That question
13 lacks foundation.
14 BY MR. BROWN:
15    Q. Do you know what types of companies
16 Management Solutions served before the
17 reorganization?
18    A. I don't think it's --I don't think
19 it's easy to categorize those kinds of companies.
20 I can say that the client portfolio was very
21 similar to what Deloitte Consulting was serving at
22 the time.

00034
1    Q. Okay. But-
2    A. So at the early design, Kent, I would
3 tell you that there was intent that those
4 companies would be smaller, and they, again,
5 generally speaking, would be up to a billion
6 dollars in revenue.
7          However, over time, as consulting was
8 competitive, and as these two organizations,
9 Deloitte & Touche and Deloitte Consulting became
10 more involved in the marketplace, there was even
11 internal competition that led to the solutions
12 organizations serving very similar clients to
13 Deloitte Consulting.
14          So if, in using the Lawson example,
15 they ran into -- let me think of a good
16 representative example ... there's a -- I believe
17 an organization called . It was a large health REDACTED
18 care organization that operated nationally.
19    Q. It's a hospital organization?
20    A. Yes. And I was aware that there was a
21 large Lawson implementation going on there. But
22 this would be a, you know, a multi --

00035
1 multiorganizational -- very large client that
2 typically you might have found Deloitte Consulting
3 serving. So Solutions was in fact serving that
4 client and delivering to a very large client some
5 very significant services, which, again, is not --
6 was not that original intent I spoke of, up to a
7 billion dollars, smaller types of services.
8          So the marketplace was very similar to
9 what you'd find in Deloitte Consulting. The
10 specialty of Lawson existed, and was managed from
11 Deloitte & Touche as opposed to Deloitte
12 Consulting.
13    Q. Okay. Now, do you know approximately
14 how many people are working in the Oracle practice
15 in Deloitte Consulting today?
16    A. I do. We quote two numbers. There are
17 about 300 practitioners that are solely dedicated
18 to Oracle implementations. And there are 1500
19 practitioners that we speak of in terms of global
20 capability.
21          The difference between those two
22 numbers represents those practitioners who have

00036
1 specialty in our industry practices, who as well
2 have Oracle experience, but have not dedicated
3 their careers to implementing Oracle applications.
4          So they may have worked in high-tech,
5 or they may have worked in telecommunications;
6 they may have worked in financial services
7 implementing, let's just say, an inventory
8 solution or some piece of an Oracle application.
9          But after that project's finished they
10 may as well go do SAP or something else. So they
11 specialize in the business processes, and in
12 business transformation, but they don't specialize
13 within any one package.
14    Q. So, just so that I understand, you have
15 300 who are solely dedicated to Oracle.
16    A. That's correct.
17    Q. And in addition you have another 1200?
18 Or would that be 1500 that you could call on who
19 have --
20    A. 1200 -
21    Q. -- who have Oracle expertise.
22    A. 1200.

00037
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16    Q. Okay. Now, do you have a -- and what's
17 the size of the Oracle practice in annual revenue?
18    A. This year it will be about million. REDACTED
19    Q. Is that U.S.-
20    A. U.S.
21    Q. For U.S. only?
22    A. Yes.

00041
 
 
 
 
 
 
 
 
 
10    Q. Okay. And what about with respect to
11 Lawson?
12    A. Same thing. Lawson is smaller, though.
13 I do know that the annual revenues of the Lawson
14 practice are probably $ million. I don't know REDACTED
15 the number of people, though.
16    Q. Do you know how -- what type of
17 global -- whether Lawson has any type of a global
18 practice in Deloitte?
19    A. I don't know that.
 
 
 

00046
 
 
3    Q. Okay. Now, do you have a practice
4 of -- do you have practices set up to work
5 specifically with any other ERP vendors other than
6 SAP, Oracle, PeopleSoft and Lawson?
7    A. Those are the primary ones. We do have
8 a relationship with Vertex, as I mentioned
9 earlier.
10    Q. Okay.
11    A. We do have about 40 different alliance
12 relationships within Deloitte Consulting that
13 constitute relationships with vendors who support
14 this marketplace again.
15          So there is a product, as an example,
16 named Optio which is used for reporting in many of
17 our Oracle projects. We have an alliance
18 relationship with Optio, and that is a vendor
19 relationship. That actually is software. So
20 there are, again, supporting pieces that go with
21 the ERP practice, and there are a number of
22 alliances around that, about 40.

00047
1    Q. Okay. And the software that's provided
2 by these -- by those companies would once again be
3 used as a complement with the ERP software?
4    A. That's right. That's right.
5    Q. Did -- can you tell me in general
6 what's the size of Deloitte Consulting's revenues
7 all together?
8    A. About 3 billion.
9    Q. And that's relating now to the U.S.
10    A. Consulting. Right. Consulting revenue
11 in the U.S.
12    Q. And what portion of those revenues in
13 general accounted -- is accounted for by the
14 enterprise software package business?
15    A. About 25 percent. 25 to 30 percent.
16    Q. Why do your clients use Deloitte to
17 assist in -- with their ERP work?
18    A. The reason our clients buy Deloitte is
19 because we do business transformation, which
20 infers that we take technology solutions, and we
21 take industry expertise, and we use the -- the
22 technology to enable process redesign and process

00048
1 improvement, so that our clients achieve financial
2 benefit and business improvement through the
3 implementation of both the technology and our
4 services.
5          So said differently, we try to drive
6 performance and financial result through our
7 implementations and that is the brand that we try
8 to carry in the marketplace.
9    Q. Okay. And why do you -- why do you use
10 the -- let me focus primarily on the portion of
11 the organization that you worked in. Deloitte
12 Consulting.
13    A. Okay.
14    Q. Why historically has Deloitte
15 Consulting used People Soft, Oracle and SAP as
16 the -- as the software with its -- with those --
17 with the clients that it was -- that was providing
18 these business transaction services?
19          MR.YATES: Objection. Vague.
20 BY MR. BROWN:
21    Q. You can answer.
22    A. Two reasons I can think of. Number

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1 one, those particular software houses are the most
2 prevalent within the different industry practices
3 that we talk about. Industries. And therefore
4 become primarily the vendors of choice in those
5 spaces.
6          Consequently, there is millions and
7 millions of dollars of revenue associated with the
8 implementation services that go together with the
9 sale of that software, which is a good business
10 opportunity for Deloitte.
11          So we have built our business around
12 significant vendors in that space.
13    Q. Well, is there anything about your
14 clients' requirements in general that have caused
15 them to turn to the People Soft, Oracle and SAP
16 applications?
17    A. I would say there are a few reasons for
18 that. One is the scope ... the application scope,
19 of those applications, of those particular vendors
20 have broadened their footprint, or, said
21 differently, they have more functionality than a
22 lot of the other softwares that are in the

00050
1 industry. So that's one.
2          Some of our clients, because of their
3 global nature, look for solutions that can manage
4 multinational organizational aspects of their
5 implementations, as well as multicurrency, if
6 they're dealing in different currency. As well as
7 multiple language requirements. Those are the
8 primary reasons.
9    Q. Okay. I'd just like to follow-up a
10 little bit on a couple of these.
11