Download - Smart Clouds for Smart Companies
Smart Clouds
for Smart Companies
Peter Coffee
Director of Platform Research
salesforce.com
Safe Harbor Statement
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-
looking statements including but not limited to statements concerning the potential market for our existing service offerings
and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results
expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in
our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our
service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain
profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating
history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to
release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of
the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective
tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and
interest rates.
Further information on these and other factors that could affect our financial results is included in reports on Forms 10-K,
10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These
documents are available in the SEC Filings section under Investor Information at www.salesforce.com/investor.
Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as
required by law.
IT’s Had Some Very Bad Years
� Global IT spending estimated down 5.2% during 2009
� Spending won’t return to 2008 level until 2012
� Half of CIOs will see zero growth or further cuts this year
– Gartner (informationweek.com, 26 Oct.)
100% Cloud Cover?
www.networkworld.com/news/2008/102908-bechtel.html
“If you take the ideal
world, everything is
done as a service:
computing, storage,
software and
operations.”
“The risk for enterprises
that don't start a SaaS
migration strategy soon
is that their IT
organizational
structures will be a
competitive
disadvantage.”
Geir Ramleth
CIO, Bechtel Corp.
Infrastructure as a ServiceInfrastructure as a Service
Virtual
Servers
Virtual
Servers
Virtual
Servers
Virtual
Servers
Virtual
Servers
Virtual
Servers
Platform as a Service
(PaaS) for the
Inquiring Developer
“Servers as a Service” PaaS as Enterprise
Application Framework
Infrastructure as a ServiceInfrastructure as a Service
Database as a ServiceDatabase as a Service
Python/Java
Application Server
Python/Java
Application Server
~Familiar Developer Model
Rapid Scalability
β Offering
Innovative Technology
Supports Large-Scale SaaS
Deep-Dyed Multitenancy
Database as a ServiceDatabase as a Service
The Cloud as a Multi-Product Marketplace
Unlimited Real-Time Customization
Granular Security & Sharing
Programmable Cloud Logic
Real-Time Workflow& Approvals
Programmable User Interface
Integrated Content Library
Infrastructure as a ServiceInfrastructure as a Service
Moving toward an ideal: “Zero, One, Infinity”*
0 On-premise infrastructure
Acquisition cost
Adoption cost
Support cost
1 Coherent and resilient environment – not a brittle “software stack”
∞∞∞∞ Scalability in response to changing need
Integratability/Interoperability with legacy assets and other services
Customizability/Programmability from data, through logic,
up into the user interface without compromising robust multi-tenancy
* From The Jargon File: “Allow none of foo, exactly one of foo, or any number of foo”
What it Means to Promise “The Cloud”
Faster Results; Lower Risks; Predictable Costs
On-Premise Operations:
Upgrade Expense &
Opportunity CostsUp-front Capital
Expense & Delay
Variable Cost Aligned with
Business Value
Valu
e
Time
Cloud Computing:
Average 49% investment recovery
within 10 Months2
53% of software projects cost
189% of original estimate1
Buying Function,
not Infrastructure
Valu
e
1 Standish Group, Chaos Report 2006
2 Third-Party CustomerSat Research on 4,165 Salesforce.com
customers, February 2008
Fixed Costs and
Excess Operating
Expenses
Minimal
Initial Cost
Coherent Code Base and Managed InfrastructureCoherent Code Base and Managed Infrastructure
Your Clicks
Your Code
User Interface
Logic
Database
Metadata representations:
Rigorously partitioned data, logic and customizations for multiple customers
Build strategic applications
Customize any aspect
Upgrade when convenient
Your IP under your control
Enterprise Clouds Enable Deep Customization
Coherent Code Base and Managed InfrastructureCoherent Code Base and Managed Infrastructure
Your Clicks
Your Code
User Interface
Logic
Database
Metadata representations:
Selectively shared data, logic and customizations for multiple customers
Build strategic applications
Customize any aspect
Upgrade when convenient
Build vital communities
Enterprise Clouds Enable Powerful Connections
Cloud Integration: No Need for Rip/Replace
Mash-ups from
Web and
AppExchange
Native
Desktop
Connectors
Integration
Partner
Ecosystem
Developer
ToolkitsNative ERP
Connectors
• SSL data encryption
• Optional strict password policies
• SAS 70 Type II & SysTrust Certification
• Security certifications from Fortune 50
financial services customers
• May 2008: ISO 27001 Certification
Platform Security
• Fault tolerant external firewall
• Intrusion detection systems
• Best practices secure systems mgmt
• 3rd party vulnerability assessments
Network Security
• 24x365 on site security
• Biometric readers, man traps
• Anonymous exterior
• Silent alarm
• CCTV
• Motion detection
• N+1 infrastructure
Facility Security
Cloud Security: No Need for Excuses
“There are some strong technical security arguments in favor of Cloud
Computing… (Craig Balding, Fortune 500 security practitioner)
May-July 2009
• 99.997% of planned
availability
• Continually narrower
maintenance windows
Live System Status
Security Best Practices
Historical Performance
Full Public Disclosure
Amazon
Transparency Surpassing Enterprise Norms
Real-World Results: Financial Services
� The Phoenix Companies sought a new CRM solution with flexibility, ease of use,
mobile accessibility, low-cost modification capabilities, minimal user training
requirements, and simplified integration with other apps.
� Changeover to Salesforce CRM took less than two months. Working with
salesforce.com partner OKERE (now part of Fujitsu Consulting), Phoenix used the
Force.com platform to create customizations for contracts and underwriting.
� Using the Force.com API, Phoenix integrated several legacy systems with
Salesforce CRM to provide consolidated, real-time access to information.
� The Salesforce CRM implementation cost the company less than one-fourth of the
project’s original budget.
� By streamlining communication between field and inside sales within Salesforce
CRM, Phoenix has reduced phone and email inefficiencies, boosted productivity,
and, in 2005, increased life insurance sales by more than 33%.
� Following its upgrade to Salesforce CRM Unlimited Edition, Phoenix achieved 96%
user adoption.
Real-World Results: Health Care
� CRC Health—the nation's largest provider of drug and alcohol treatment
services—acquired the country’s largest youth treatment provider. The combined
organization required a platform to manage patient intake, track Web entities, and
streamline operations to increase revenue.
� The company used ACT!, spreadsheets, and other proprietary systems to
manage extensive patient data. Only one call center operator could open the
spreadsheet at a time, making the process inefficient, opaque, and unscalable.
� The company developed a customized user interface on Force.com for 12 users.
With help from salesforce.com partner Appirio, CRC Health extended the
application to broadly leverage the platform.
� Security levels are matched to what’s required to comply with HIPAA and other
industry regulations. Open APIs enable tight integration with legacy tracking
systems, Microsoft Outlook, eFax, and other third party apps. Web marketing
effectiveness tracking within Salesforce CRM indicates to the dollar what is
performing and what is not.
Real-World Results: Green Manufacturing
� Vetrazzo, a leader in the rapidly growing market of recycled glass countertops,
required an enterprise resource planning (ERP) system it could customize to
handle its unique manufacturing processes. The eco-friendly small business
lacked the budget and personnel required to purchase and implement a
traditional on-premise ERP system.
� Without an IT department, executives wanted to avoid having to purchase and
manage hardware infrastructure. The company needed a Web-based solution
for its national staff that could handle anticipated growth.
� With the help of salesforce.com partner The Claiborne Company, Vetrazzo
expanded on a prototype to build an ERP system customized to fit its specific
business processes. The company’s custom apps include Customer Service and
Order Management; Finished Goods Inventory Management; Production
Planning and Scheduling; Raw Materials Management; Shipping and Logistics;
Document Management, and Warranty Management.
� Integration with Quickbooks ties in financials.
Development Reinvented, not Just Relocated
� Nucleus Research analyzed Force.com deployments: found
average 4.9 times faster development (range 1.5x-10x)
versus Java or .Net
– Custom objects
– Administrative tools
– Workflow engine
– Pre-tested platform
� Galorath Inc. compared developers’ Force.com productivity to
Java development
– Requirements definition time reduced 25% due to rapid prototyping
– Testing effort reduced by (typically) more than 10%
– Development productivity of new code 5x greater
– Overall project cost 30-40% less
� CustomerSat sampled more than 1,100 Force.com
development teams during summer 2009
– Average experience: 4 applications deployed to date
– Average project cost savings: 48%
– Average project acceleration: 5.1x
Handling Social Situations
� merges social feeds into Gmail
� USAToday says “iGeneration…has no ‘off’ switch”
– Research suggests teens “survive distractions…better than
we would predict by their age and their brain development.”
– Teens/tweens “don't remember a time without the constant
connectivity to the world that these technologies bring… [and]
everything is customized and individualized”
� But same-day article also reports that
– “Desire to unplug has made an unexpected success out of
websites such as Web 2.0 Suicide Machine…
…that automate and turbocharge the otherwise laborious
manual process of scrapping your online self”
� It’s hard to add security to a tool that shares by default
� It’s possible to add social tools to a proven trust model
You Can Be Social…Safely
zSeriesS/3904300S/370S/360IBM 701Mainframe
Sun/AMDx86 Servers
Niagara CPUs
Sun/ILMRender Farms
SunWorkstations
& Servers
DEC
VAX 11/780
DEC
PDP-8Mini
Windows XP
& Mac OS X
Windows
3.x/9x/NT
& Linux 1.0
IBM PC
MacintoshMITS AltairPC
’00s’90s’80s’70s’60s’50s
To Everything There is a Season
App
eara
nce
Em
erge
nce
Asc
enda
nce
Ref
inem
ent…
zSeriesS/3904300S/370S/360IBM 701Mainframe
Sun/AMD
x86 Servers
Niagara CPUs
Sun/ILM
Render Farms
SunWorkstations
& Servers
DEC
VAX 11/780
DEC
PDP-8Mini
Windows XP
& Mac OS X
Windows
3.x/9x/NT
& Linux 1.0
IBM PC
MacintoshMITS AltairPC
Grid
ComputingX Window
Cloud Apps
&
Platforms
’00s’90s’80s’70s’60s’50s
Peter CoffeeDirector of Platform Research
facebook.com/peter.coffee
twitter.com/petercoffee
Q&A?