Oracle’s T&E Expenditures
I know Vinnie (www.dealarchitect.typepad.com) is always interested in what software vendors spend on sales, general and administrative costs (and, by extension, how little or effectively they spend their R&D budget). Since I don’t think any other blogger reads Business Travel News for the software stories, I thought I'd do Vinnie a favor and relate the following about Oracle:
Total 2006 T&E spend = $585 million USD
$244 of this in air volume 416,000 cardholders
over the last seven quarters, Oracle's cost per transaction in the US and decreased 33% while transaction volume increased 50%
Oracle is reducing its T&E cost by consolidating the numbers of travel service centers from 91 to 12 and in requiring employees to book travel online. Online booking now accounts for 90% of transactions. Source: Business Travel News, 9/10/2007, “Only the Few Follow the Sun”
I have my doubts that the numbers reported in to that magazine represent all of Oracle's travel and entertainment spending. This is not a scientific assessment but just a hunch given the way large software companies sell to major corporations. For your own assessment I have included a snapshot from an actual page from the Oracle 10-K of 2005.
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