six things about "the cloud"

@PeterCoffee Peter Coffee VP & Head of Platform Research

salesforce.com inc.

Six Things You Didn’t Know

That “The Cloud” Could Do

@PeterCoffee

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report and on our Form 10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Safe Harbor

In Other Words:

Everything That

You See Here

is Real

@PeterCoffee

• Since the IBM PC was introduced (Aug.1981 to now)

• Processor speed has risen ~25 per cent per year

• Memory capacity has grown ~40 per cent per year

• Mass storage surging ~50 per cent per year

• Desktop systems are burdened with too much state

• File system technology has not addressed new needs

• Governance falls short of rising demands

• Trends redefine “best practice”

• Bandwidth expansion: ~45 %/year

• Processor road maps favor shared machines

• Data centralization superior governance*

* Knowingly provocative statement with backup to come

‘Cloud’ Happened When Curves Crossed

Server shipment growth rates:

Server market overall, 2011-2015:

7.1% CAGR (TechNavio)

“One of the key factors contributing to this

market growth is the growing adoption of

cloud computing.”

Servers for cloud hubs, 2011-2015:

21% CAGR (IDC)

@PeterCoffee

“Digital Camera”: every December, it’s still news to someone

“Cloud Computing”: as more use it, fewer ask about it

This Is How Novelty Ends

@PeterCoffee

Stages of Enterprise Cloudification

• Trivialize ("cloud is just for consumers")

• Marginalize ("cloud is just SaaS point solutions")

• Demonize ("we can't trust the cloud")

• Rationalize ("our regulators won't let us use the cloud")

• Galvanize (“Whoa! Competitors are killing us in cloud!)

• Evangelize ("we're industry leaders thanks to cloud")

cloudblog.salesforce.com/2011/05/ize-on-the-cloud.html

@PeterCoffee

Enterprise Workloads Served Daily

@PeterCoffee









@PeterCoffee

Marketing App

Exchange Service Work.com Sales

Yes, it begins with what we once called “CRM”

What you touch most often

How you control where you go

But the steering wheel is not the car

@PeterCoffee

Sales

Database.com

A Platform’s Foundation is Data

The salesforce.com multi-tenant database is

secure, scalable, and equipped to build

collaborative and event-driven applications –

far more quickly than any mere data container

@PeterCoffee

Sales

Fo

rce

.co

m

Why build apps for 2010s as if it’s still the ’90s?

Database.com

Force.com platform is “under the

hood” of Salesforce CRM: it enables

rapid customization with clicks, not

code, but still has full custom code

capability. Build apps 5x faster* than

.Net or Java

* Nucleus Research,

Galorath and other

studies available on

request

@PeterCoffee

Sales

Force.com

Chatter

Why build apps that make you come looking?

Database.com

Data.com Data.com

Chatter brings data and processes right to you

Data.com puts data grooming at the point of use

@PeterCoffee

Force.com

It Only Matters If It Integrates – Securely

• Bring in the information that matters most: what your

customers and partners are doing, and what they want

• Connect it with the information you already own: all of

your legacy assets become more valuable in more ways

Heroku Site.com Communities Force.com

Database.com

Chatter

AppExchange Apps

ERP

Any System

Finance

Back-end Systems Any Social

Network

@PeterCoffee

Marketing App

Exchange Service Work.com Sales

Heroku Force.com Site.com

Database.com

Communities

Chatter

Data.com

Connect to Control

AppExchange Apps

ERP

Any System

Finance

Back-end Systems Any Social

Network

Sell. Service. Market. Manage & Grow. Enlist & Engage.

@PeterCoffee









@PeterCoffee

“When hundreds or even thousands

of other businesses are using

exactly the same operational

infrastructure, all of them…benefit

from the hardening of the

infrastructure after any of them

come in contact with a newly

detected threat.”

Cloud Efficiencies Rise to the Challenge

@PeterCoffee

“Despite resource sharing,

multitenancy will often improve

security…

“Our research and analysis indicates

that multitenancy is not a less secure

model — quite the opposite!”

All Assets Secured, All the Time

@PeterCoffee

“I’ve been looking for it, but I can't find any real evidence that the cloud is more

risky than hosting everything completely internal,” said Wade Baker, managing

principal of Verizon's RISK group, which investigates breaches. Verizon owns

cloud provider Terremark. “I’ve studied a lot of breaches; we get a lot of information

from a lot of different organizations, and it doesn’t seem to be there.”

Most hacking attacks against corporations are still aimed at internal computer

systems, he said. Eighty percent of the breaches Verizon investigated in 2012

involved internally hosted data. The remainder involved externally hosted

data -- but those breaches began inside companies’ networks and spread to

the third-party hosting services, not the other way around, Baker said.

- www.bloomberg.com/news/2013-03-26/security-fears-give-way-to-economics-as-cloud-computing-grows.html

All Assets Secured, All the Time

@PeterCoffee

• Data protection regulations

– Where can it be stored?

– Who’s allowed to see it?

• Peel the onion of ‘compliance’

– Anonymize/encrypt/partition specific fields

– Cloud disciplines can enhance auditability

• Role-based privilege assignment

• Actions taken using granted privileges

• Looking beyond the FUD

– USA PATRIOT Act sometimes causes concern about powers

of US government to access data

– Limited to information-gathering related to matters of urgent national security

– Use of USA PATRIOT Act requires involvement by all three branches of the US

government

– Many other countries, including in Europe, have very similar powers

Data Stewardship is a Practice, not a Technology

@PeterCoffee

Data Governance Norms are Global “While the [USA] Patriot Act continues to be invoked as a kind

of shorthand to express the belief that the United States

government has greater powers of access to personal data in

the Cloud than governments elsewhere, and that ‘local clouds’

are the solution, a recent study we conducted of the laws of

Australia, Canada, Denmark, France, Germany, Ireland, Japan,

Spain, United Kingdom—and the United States—shows that it

is simply incorrect to assume that the United States

government's access to data in the Cloud is greater than that of

the other advanced economies.

“Law enforcement and national security officials have broad

access to data stored locally with Cloud service providers in the

countries we investigated. Our research found that that it is not

possible to isolate data in the Cloud from governmental access

based on the physical location of the Cloud service provider or

its facilities, and that Governments' ability to access data in the

Cloud extends across borders.” - http://www.hoganlovells.com

@PeterCoffee









@PeterCoffee

It’s Not About “Better, Faster,

Cheaper”; It’s About “Different”

Social

Mobile

Engaging

@PeterCoffee

Will Today’s Disruptors Sign In, Please?

• Mobility

• Social Computing

• Big Data

@PeterCoffee

@PeterCoffee

Connection Is Not Rip/Replace

Mash-ups from

Web and

AppExchange

Native

Desktop

Connectors

Integration Tools

AppExchange Apps

ERP

Any System

Finance

Systems of Record

Systems of

Engagement

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@PeterCoffee

I’m Not The Only One Who Calls This “New IT”

• “McKinsey speakers did identify a category of

applications for which cloud computing is an

enabler. Moreover, unlike transactional

systems, these applications offer significant

opportunity going forward.”

• “The McKinsey term for these applications is

‘new IT’… Business model transformation,

team and corporate productivity growth and

digital-only products.”

• “Old IT looks to cloud computing to achieve

incremental efficiency within the context of

established practices…CEOs chase new IT to

create new business offerings.”

- cio.com, 9 April 2013

@PeterCoffee

Connect With Customers

in a Whole New Way

Connected

Partners

Connected

Customers

Connected

Employees

Connected

Products

@PeterCoffee

Currently used by

– all six national banks

– five major insurance firms

– all three national telco providers

– high-tech leaders

– aerospace manufacturers/operators

– various public-sector agencies

Canadian Leaders salesforce.com

@PeterCoffee

Thank You petercoffee

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