Now That The Cloud Has Won

From Contest…to Context for What Comes Next

Peter Coffee

VP for Strategic Research – Salesforce

@petercoffee

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Safe Harbor

Not Mere IT Modernization; Commitment to the Customer

The Unchanging Essence of “Cloud”

Mainframe Client/Server

Today 1960s 1980s

Enterprise Cloud Computing

High Capital Barrier to Entry Not conceived for collaboration

3-10 year cycles of innovation

No Capital Barrier to Entry

Subscription-Model Pricing

Non-Disruptive Upgrades

Mobile, Connected, Collaborative

On-Time; On-Budget; On-Spec

Unsurpassed Pace of Innovation

Meaningful “Change” Is Inherently Surprising

Trying to predict the future is a discouraging and hazardous occupation,

because the prophet invariably falls between two stools.

• If his prediction sounds at all reasonable, you can be quite sure that in 20 or at most 50

years the progress of science and technology has made him seem ridiculously

conservative.

• If a prophet could describe the future exactly as it was going to take place, his

predictions would sound so absurd, so farfetched, that everybody would laugh him to

scorn.

If what I say now seems to be very reasonable, then I’ll fail completely.

Only if what I tell you appears absolutely unbelievable, have you any

chance of visualizing the future as it really will happen.

- Sir Arthur C. Clarke, 1964

“Cloud” Is Not Surprising

Mobility: 3.6 billion subscribers = 50% of world population

Smartphones + Tablets outnumber people (13Oct’14)

You Can Draw the Trend Line of “Cloud” Cutting Complexity

There’s Disruption Coming in Connection Creating Community

Mobility: 3.6 billion subscribers = 50% of world population

Yes, your car will be just a four-wheeled phone

You Can Draw the Trend Line of “Cloud” Cutting Complexity

There’s Disruption Coming in Connection Creating Community

Mobility: 3.6 billion subscribers = 50% of world population (13Oct’14)

Connectivity: 12 billion devices by end 2014; 4 devices per person by 2020 (14Oct’14)

You Can Draw the Trend Line of “Cloud” Cutting Complexity

There’s Disruption Coming in Connection Creating Community

Tangible Value for Field Service Applications

“Wearable technologies have

been found to boost

employee productivity by

8.5%, experts from

Goldsmiths, University of

London have found.” - gold.ac.uk

“Augmented reality apps like

Aurasma could help field

service organizations equip

techs in the field… product

information with the point of a

camera.” - thesmartvan.com

“In the next 3-5 years, the

industry likely to experience

the greatest benefit from

smartglasses is field service,

potentially increasing profits

by $1 billion annually.” – gartner.com

faster growth than

smartphone revolution

Annualized Growth (%)

Smartphones Wearables

100% 100% 108%

5X

Wearable Growth Rate - BI Intelligence Estimates, IMS Research, ABI Research Smartphone Growth Rate - en.wikipedia.org/wiki/Smartphone#Historical_sales_figures_.28in_millions_of_units.29

Year 1 Year 2

Year 3

Wearables Are Already a Breaking Wave of New Mobility

For Goodness’ Sake, Think Big (Which Means Small)

Transistors just started collecting Social Security

“The first transistor was about the size of the palm of a hand; it had the depth of two stacked matchbooks” - computerworld.com/

“Estimote” beacon is about 25 mm across:

• ARM processor

• Memory

• Bluetooth

• Temperature/motion sensors

Proteus ingestible sensor, the size of a poppy seed, activated by stomach acid, will report measured effects of medication

Mobility: 3.6 billion subscribers = 50% of world population (13Oct’14)

Connectivity: 12B devices by end ’14; 4 devices per person by 2020 (14Oct’14)

Interaction: 864 million average daily active users on Facebook during September 2014

You Can Draw the Trend Line of “Cloud” Cutting Complexity

There’s Disruption Coming in Connection Creating Community

Because Abundant, Cheap Connectivity is Here to Stay…

…But Connection’s Concerns are Real

“A lot of the web services allow unauthenticated or

unencrypted communication between the devices,

so we’re able to alter the info that gets fed into the

medical record … so you would get misdiagnosis

or get prescriptions wrong.”

“The physician is taught to rely on the information

in the medical records … [but] we could alter the

data that was feeding from these systems, due to

the vulnerabilities we found.”

Without Trust, Nothing Else Matters

If you think people are touchy

about their money, wait ’til you

know where they were parked

and who else was in the car,

with what kind of music playing

on the radio.

It’s essential to reduce

complexity and to narrow the

scope of privileges – rather

than compounding complexity

and enabling more superusers.

ISO 27001 Certification

SOC-1 (SSAE 16 – Audit Report)

SOC-2 (Trust Principles Report)

SOC-3 ‘SysTrust’ Audit Report

U.S. GSA ‘Authority to Operate’ (Moderate)

U.S. FedRAMP PaaS and SaaS (Moderate)

PCI DSS Compliance

JIPDC (Japan Privacy Seal)

TUV Certificate (German Data Protection)

TRUSTe

It’s Not A Service Without Security Complying with Security and Government Regulations Worldwide Simplified

We Can See the Future in Facts Observable Today Looking back from 2024, we’d ask “Didn’t they notice…?”

Healthcare in transition: cancer outpacing heart

disease in U.S. deaths (CDC & ACS)

Higher education existentially challenged: ½-life

of 4-year degree was ~18 mos. (1Mar’13)

Nature of employment up for grabs: 20-30% of

Fortune 100 were “contingent” (Mar’12)

Globalization: 40% of MFG.com companies won

new business in 1H12 previously offshored (27Jun’12)

What Got Us Here…Won’t Take Us Where We’re Going “Cloud Computing” doesn’t make IT irrelevant: it makes IT actually interesting

“Cloud” today is not an IT cost-cutting strategy,

but a context for creating new value

It’s impossible to think in terms of innovation, if

the IT component moves at the glacial pace of the

capital-budget cycle

It’s costly and dangerous to attempt a data-rich

relationship with customers, while relying on do-

it-yourself security

It’s crippling to make IT skills the bottleneck for

initiatives that business units should drive

You don’t want to

deal with complex

mechanisms

You want to

think about

challenges &

opportunities

If It Isn’t a Faster Path to Success, Who Cares What It’s Called?

Enterprise

Cloud Computing

Fast Innovative Open Easy Trusted

No Hardware

No Software

Faster ROI

Flexible

Drama-Free Upgrades

Continuous Improvement

Any Device

API First

Data Portability

Secure

Transparent

Performance at Scale

Subscription Model

Real-time Customizations

AppExchange

“Service” Means Instant Readiness to Scale

“The city’s investment can go further than just

merely paying for a new system. It’ll be able to

take advantage of other apps that work on the

Salesforce platform.”

Less Stagnation. More Innovation.

Eurostar has rolled out Salesforce CRM to improve customer service for

passengers, replacing a number of applications…The high speed rail

service previously relied on up to 13 applications…

One of the main drivers…was the upgrade cycle for the software…

“There were no guarantees that the customisations would live

through the upgrade.”

Another is the ability to make changes to the system once it is live.

“With Salesforce, from the idea until it was done, took less than

two days. There is no way you can do that with other systems…”

By Matthew Finnegan | Computerworld UK |

Published 10:29, 27 May 14

3×/year upgrades: no drama, no risk, just part of the service It’s the difference between a yellow brick road…and a chasm of fire and monsters

Trusted. Results. Today.

Legacy IT approach “was overloading the

project with software, overcomplicating the

site with CPU and memory taxing

applications. Servers were constantly

needing to be restarted… Any replacement

for the current software will need to be

vastly more simple.”

"Salesforce has been an incredible tool for

us... We purchased on June 1st, and within

8 hours we actually had published an iPad

application... In about a month, we have

something we can use as a platform that

can evolve with us... rapidly deployable,

works on different devices, highly

configurable..."

Opportunity Ascendant

Cloud-based communities turn

fickle customers into loyal fans

Collaboration clouds win

the war for talent

Connected products

replace guesswork with data-driven insights

Connect...in a Whole New Way

SNA

Terminal

Mainframe LAN / WAN

Client

Server

LAN / WAN

Client

Server

Thousands value-adding moments

connected things Billions Trillions

LTE

Mobile

Cloud

Millions

Thank you Peter Coffee

VP for Strategic Research pcoffee@salesforce.com

@petercoffee

in/petercoffee

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