Software as a ServiceSo t a e as a Se cein the Public Sector

Kaveh VessaliVice PresidentPublic Sector SolutionsSalesforce.com

Impacts of The Internet as a technology platform– How we work

– Constituent expectations

– How we collaborate

G l f t dGoals for today– Clear definition of SaaS

– Public Sector benefits and case studies

Principles of SaaS / The Internet – Transparency

– Democratization

– Collaboration

The World in 1999when Salesforce.com was founded

No DSL, Cable Modems, or high speed bandwidth in homes

56K dial-up in hotels

Websites: Little Data & Simple HTML interfacesp

No SmartPhones or MP3/MP4 Players

N di it l USB K Fl h MNo digital cameras, USB Keys, or Flash Memory

My World Today

Credit CardsMy Yahoo Google Brokerage Banking

BlogsOpen Table BlackberrySalesforcewashingtonpost com gOpen Table ywashingtonpost.com

The Consumer Web Platforms

Eas to se E t I t tEasy-to-usePoint and Click CustomizationHigh Availability High Performing

Easy to IntegrateOpen API / Web SOAEfficient MaintenanceSeamless UpgradesHigh Performing Seamless Upgrades

Q: Why can’t business applications be as easy as the Consumer Web?as the Consumer Web?

A: (they can… )

Salesforce.com’s Mission: SaaS Innovation Driver, Catalyst & Evangelist

Software as a ServiceClient/ServerM i f Software as a Service

On-PremiseMainframe

21st

Century PlatformsLate 20th

Century PlatformsMid 20th

Century Platforms

Salesforce.comGrowing Towards the First $1 Billion SaaS Company

• 41,000 Successful Customers41,000

CustomersGrowth in Customers

7%14%

7%4%

#2 #3#4

#5• 1,000,000 Subscribers

• >$850M revenue run rate*

50%All others18%• NYSE: CRM

• Founded 1999, HQ San Francisco

• 2,500+ Employees; 40 Offices; 20 Countries, 15 Languages 2001 2008200720062005200420032002

Fiscal Year

* Run rate based on FY08 Q4 reported results

SaaS is Replacing On-Premise Faster than Anyone Imagined…

31% Growth (CAGR) for On-

25-50% Penetration

61% GrowthIn Enterprise Adoption(CAGR) for On

Demand CRM of Software IndustryBy 2009-2013

$2 Billi

In Enterprise Adoptionof SaaS

2004 2010

$2 Billion25% 61%

2005 20062005 2006

Enterprise Scale, Trusted Security, Operational Savings

~40,000~40,000 ~30,000~30,000 ~30,000~30,00060,00060,000 ~25,000~25,000

~5,000~5,000 ~4,200~4,200 ~4,000~4,000~20,000~20,000 ~5,500~5,500

~2,500~2,500~2,600~2,600 ~2,000~2,000 ~1,800~1,800 ~1,500~1,500

SaaS Expands to PaaS (Platform as a Service)

CRMLi f B i

CollaborationPRM

ERPFi

Front Office Inter OfficeBack Office

Line-of-Business apps…

PRMSCM

…

FinanceHR… BUSINESS APPLICATIONS

User InterfaceBusiness Logic

…

ApplicationExchange

…

DatabaseIntegration

…

Security Network MgmtData Protection

APPLICATION DEVELOPMENT

IT MANAGEMENT

Systems Mgmt…

Remote Access…

Storage…

Our Vision: The World’s First Multi-Application, Multi-Category SaaS Company

Common Thread is Innovation. Not Infrastructure.

ApplicationServices

OperationsServices

InfrastructureServices

BusinessServices

Us You

Services Services Services

Strategic Value

Security

Sharing

Integration

Customization

Authentication

Availability

Monitoring

Patch Mgmt

App Server

Web Server

Data Center

Disaster Recovery

Ordering

Provisioning

Licensing

BillingWeb Services

API

Multi-Language

Multi-Currency

g

Upgrades

Backup

NOC

y

Network

Storage

OS

Database

Billing

Renewal

Upgrades

Marketing

SalesMulti-CurrencyDatabase Sales

The SaaS Model: Hosted, Subscriptions, Multi-Tenant

SubscriptionMulti-Tenancy

•Hosted Infrastructure• No Hardware or Software

to Install or Maintain

•Subscription Model• Per User Annual Fee

•Multi-Tenant Infrastructure• One Virtual Platform

Hosted InfrastructureInnovation not Infrastructure

Client/Server Software On-Demand

• No Hardware• No Software• No Server Rooms, • Nothing to install, upgrade

or maintain

Focus on your Core Mission

Subscription ModelPay As You Go

On-Premise or Single-Tenant Hosted Software as a Service

• No up-front license costs• No upgrade costsNo upgrade costs• No maintenance fees• Lower TCO• Stable, predictable spend

P i t it l• Procure services, not capital

Multi-Tenancy is the Key to Utility Computing

Multi-Tenancy

“Like electricity, IT can function as a utility. Corporations, insteadof building, maintaining and

“of building, maintaining and supplying internal servers andApplications, can buy these servicesover the Internet from companiesf pSpecializing in IT – at a lower costThan running an in-house system.

”- Nick Carr, Former Executive Editor, HarvardNick Carr, Former Executive Editor, Harvard Business Review, author of The Big Switch, February 2008.

Up and Running in WeeksScalable, Surge Capacity

Client/Server SoftwareR

OI

27 monthBreakeven

RO

I

6 monthBreakeven

R

Time

RiskRisk

Time

Value to Customer

rtner

, Cus

tom

er S

urve

ys RiskRisk

R

Go Live~ 12 Months

Go Live~ 6 Weeks

Sour

ce: G

ar

Continuous InnovationMore Responsive Vendors

24 Major Releases in 8 YearsOn Average Over 100 New Features Per Release

All Customizations and IntegrationsAll Customizations and Integrations

Upgraded Automatically

Collaboration and Information Sharing

Point and Click Cross-Organization Integration

UpdateSubscribeInvite Share

- Director Sales Operations, DoubleClickDirector Sales Operations, DoubleClick

Lower TCO

Cost Factor On Premise Vendor Salesforce.com

Gartner Group: 46% Lower for SaaS

Software Licenses $169,600 $192,375

Database Licenses Included None

Maintenance Fees $42,400 Included

Pro Services

Software Install $75,000 None

Integration $35,000 $6,000

Convert Data Included IncludedConvert Data Included Included

Staff to Deploy $87,532 $52,076

Training $33,200 Included

Hardware $18 000 Not NeededHardware $18,000 Not Needed

System Admin $40,000 $40,000

Developer $40,000 Not included

Total Year 1 Cost $548,232 $290,451Total Year 1 Cost $548,232 $290,451

*Assumes pricing scenario of 1000 employees 100MM in revenue (175 CRM users), Source: Three Year Total Cost of Ownership for CRM software for MSB’s April 2004.

Lower RiskGreater Project Success

On average, about 70 percent of all IT-related j t f il t t th i bj tiprojects fail to meet their objectives.

- InfoWorld

A f 185 d l d i 64 d ith 2 4 FTE

Average ROI of 47% achieved in 8 to 9 months.

Average of 185 users deployed in 64 days with 2.4 FTEs

95% Success Rate

93% Would Refer to a Colleague

77% Have Already Recommended to a Colleague

Source: Salesforce.com Customer Satisfaction Survey by CustomerSat Inc., Aug. 2005. Sou ce Sa es o ce co Custo e Sat s act o Su ey by Custo e Sat c , ug 005Sample size 295-3000+ respondents from all size companies, randomly selected.

Data Security – The Facts

342: Number of data loss events in 2006. 102: Number of government entities with data losses.

86: Number of educational organizations with data losses. 237: Number due to lost or stolen property (i.e. laptops, tapes).

Analysis of Data Loss Database at Attrition.org

The Most Trusted & Secure Infrastructure

Security Vi ibilitSecurity VisibilitySAS 70 Type IISysTrust CertifiedSysTrust CertifiedNetwork and Physical SecurityIP Restricted Access OptionFlexible Single Sign-On OptionsFlexible Single Sign-On Options

for economic development

Business ServicesBusiness Services

Business Development

New businesses

Travel & TourismTravel & Tourism

BusinessBusiness

Real EstateReal Estate

New development

New development

Technology Transfer

&

Technology Transfer

&Community

DevelopmentCommunity

Development BRACBRACExisting businesses LeisureLeisure

Re-development

Re-development

& Commercialization

& Commercialization

DevelopmentGrants

DevelopmentGrants

BRACBRAC

Policy makers Media Other Agencies

DoD Small Businesses

Universities SBA / SBDC Federal Labs

Corporations

RE Developers Community NonprofitsSite Selectors

Commonwealth of VirginiaBusiness One-Stop

Employee Applications

• New Business Licenses

Self-Service

• New Business Licenses• Automates current

manual process• Walks entrepreneurs p

through the process

• Uses logic to determine appropriate forms and then pre-populates the forms

• Online payments• Greatly reduces time/cost/complexity for

entrepreneursCoordinated responses from Commonwealth of VA• Coordinated responses from Commonwealth of VA

Family Service Agency of SF

for human serviceso u a se ces

50% reduction in administrative timeEliminated 2-month wait for County reports

Replaced with real-time reporting

Client IntakeCase ManagementService Plans p p g

Tracking clinician, program and division productivityMeasuring individual client outcomes

Adjusting treatments accordingly

Client OutcomesSelf-audits

For the first time, we’ll have real time feedback with a system that tracks the goals and objectives for each client. And for the first time, we’ll know exactly just how successful we are.

“”- Bob Bennett, CEO, FSA

New Jersey Transit

Enterprise SolutionsEnterprise Solutions

Marketing & OutreachIncident Mgmt

Enterprise SolutionsEnterprise Solutions-- Custom & COTSCustom & COTS

Marketing & OutreachPerformance ReviewsTraining ClassesLost and FoundGroup Sales

Incident MgmtCorrespondence & Complaint TrackingCustomer Call CenterSelf-Service Portal Group Sales

I fi th f ti d th t thi “

Self Service Portal

In five months of operation under the new system this year, our Customer Service department handled twice the number of cases we handled in all of 2004 .

“”- Senior DirectorSenior Director

NYC Department of EducationNYC Department of EducationBronx Autonomy Zone

HomeworkSchool ManagementSchool Management

T k St d t Att d

Attendance

Homework

• Track Student Attendance, Performance & Counseling

• 30+ schools and 800 users• Recognized by The Bill and• Recognized by The Bill and

Melinda Gates Foundation and Oprah

The Honor Level System at Bronx Lab School

Tracking Parent Phone Calls at The Green School

Grades at The Academy for Young Writers

Progress Reports at The Academy for Young Writers

Tracking Attendance at New Design High School

• Daily Attendance• Follow Up Calls to Parents re: Missed Time

Supporting Inquiry Teams using Custom Reports and Dashboards

List of Salesforce Functionality

• Student Profile • Staff Profile• Attendance with follow‐up tracking• C d G d• Courses and Grades• Counseling Sessions• Plusses/Minuses• Standardized Test (City/State, Regents, SAT, ACT, etc.)( y g )• Dashboards and Reporting• College Counseling• Hiring• Periodic Assessments• Periodic Assessments• IEP Tracking

This year, tracking daily, qualitative information that other systems do not track (e.g. advisory).

Public Sector EcosystemSample of

Interact with constituents

Needs Sample of Products

One-Stop Portal, Call Center, Ideas

Perform specific

constituents

Human ServicesCase Managementm

ent

nt ts

men

t

rack

ing

entGovernment-to-Government

A E hbusiness functions

Economic DevelopmentEducationTech TransferGrants MgmtLicensingInspectionso

nom

ic D

evel

opm

se M

anag

emen

t

nts

Man

agem

e n

pec

tions

& A

udit

gra

m M

anag

em

uca

tion

resp

onden

ce T

r

iden

t M

anag

emAppExchange

Achieve interoperability Force.com,

InspectionsMany more…E

co

Cas

Gra

Insp

Pro

Edu

Cor

Inc

interoperability & collaboration

Content, Ideas

Government-to-Government AppExchange

What are the benefits to Government?

Speed of implementation– Because the government agency that posts its application on the Government-to-

Government Appexchange has already tested and implemented it, other agencies t th li ti d i i klcan get the application up and running quickly.

Increased effectiveness– Because the applications are specifically tailored to government needs and have– Because the applications are specifically tailored to government needs and have

been used in a government environment, they will be immediately relevant to the agencies that adopt them.

Cost savings– Reusing all or part of an application on the same SaaS infrastructure by multiple

organizations will lead to big cost savings.

Peer reference– There is no better peer reference for an application than for an agency to share

what has worked well for them.

U.S. OMB Pushes for Software as a Service

Thank You