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Carolina SaaS Users Group
     Kevin Egan,
     Regional VP, Corporate Sales
     Salesforce.com
     May 2007
Agenda


           Origins of SaaS
           Today‟s marketplace
           Salesforce.com‟s approach
           Q&A...
The Consumer Web Platforms
Q: Why can’t business applications
   be as easy as the Consumer Web?

A: (they can… )
Everything is Going SaaS!
No applications market is untouched…
          Office                         Spreadsheets      ...
Agenda


           Origins of SaaS
           Today‟s marketplace
           Salesforce.com‟s approach
           Q&A...
Software as a Service – What is it?
        An application owned, delivered and managed
         remotely by one or more ...
What is Multi-Tenant On-Demand?



                                  Faster Innovation
                                  E...
Key Benefits of SaaS
 Why the Business Side Loves SaaS               Why IT Love SaaS

 Low, predictable costs           ...
Agenda



             Origins of SaaS
             Benefits
             Today‟s marketplace
             Salesforce....
SaaS is Replacing On-Premise Faster than
Anyone Imagined…

        31% Growth           61% Growth                 25-50%
...
Success with On-Demand Solutions Causes SaaS To Explode
CIO Priority Resolution -- Start a Significant Software-as-a-Servi...
SaaS Distribution in 2005 by Application
     Type and Vertical Market
Percent
20
                                        ...
SaaS – Beyond CRM
Salesforce.com’s Partner Ecosystem
Over 5,000 Developers and 200 ISVs – and Growing Rapidly




        ...
Agenda


           Origins of SaaS
           Today‟s marketplace
           Salesforce.com‟s approach
           Q&A...
Customer Use of Salesforce.com Has Evolved

    CRM                Customized
 Applications         and Integrated        ...
Why is Everyone So Excited About The
  AppExchange?

                        251+ Applications

            8,600+ Install...
What’s on The AppExchange Directory?
    Apps from         Apps from the
   Salesforce.com       Community




   Partner ...
Sales
Unlimited Edition
                                                                         Sales
                   ...
Q&A
What Opportunities Does The AppExchange Present


                           •   Pre - Sales Processes
                   ...
What is the value of all of these apps and
components?


                         What if you take advantage of the best i...
Consistent Growth in Customers
Success in Selling to Companies of All Sizes



     Total Customers
      27,100 Paying Cu...
Proven Scalability and Performance
    Delivering 60 Million Transactions Daily


               4,000,000,000            ...
Salesforce Winter ’07 is Live for 556,000 Users
21st Generation of Success




                                           ...
Gartner: On Demand TCO Lower Over 5 Years




 On-Demand Costs
                Year 1   Year 2   Year 3   Year 4   Year 5 ...
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Transcript of "Carolina SaaS Users Group"

  1. 1. Carolina SaaS Users Group Kevin Egan, Regional VP, Corporate Sales Salesforce.com May 2007
  2. 2. Agenda  Origins of SaaS  Today‟s marketplace  Salesforce.com‟s approach  Q&A Source: Gartner Inc.,
  3. 3. The Consumer Web Platforms
  4. 4. Q: Why can’t business applications be as easy as the Consumer Web? A: (they can… )
  5. 5. Everything is Going SaaS! No applications market is untouched… Office Spreadsheets Word Graphics https://www.google.com/hosted www.numsum.com www.writely.com www.pxn8.com http://smallbusiness.yahoo.com/email/ www.irows.com www.writeboard.com www.pixoh.com www.zimbra.com many others… www.inetword.com many others… many others… many others… Database Document Mgmt Contacts Project Mgmt. www.dabbledb.com www.basecamp.com www.buildonline.com www.linkedin.com www.Lazybase.com www.jot.com www.blinksale.com www.plaxo.com www.quickbase.com www.dreamfactory.com many others… many others… many others… many others…
  6. 6. Agenda  Origins of SaaS  Today‟s marketplace  Salesforce.com‟s approach  Q&A Source: Gartner Inc.,
  7. 7. Software as a Service – What is it?  An application owned, delivered and managed remotely by one or more providers  Where the provider delivers an application based on a single set of common code and data definitions, which are consumed in a one-to-many model by all contracted customers at any time  On a pay-for-use basis or as a subscription based on usage metrics Source: Gartner Inc.,
  8. 8. What is Multi-Tenant On-Demand? Faster Innovation Economies of Scale vs. Scalability Automatic Upgrades
  9. 9. Key Benefits of SaaS Why the Business Side Loves SaaS Why IT Love SaaS Low, predictable costs Easier to customize and integrate Easy to use, up and running in Always on latest technology weeks More responsive to business Subscription model demands Frees up resources spent on attentive providers maintaining existing systems Lower Risk Focus on Delivering Greater Success Strategic Value On average, about 70 percent of all IT-related projects fail to meet their objectives. - InfoWorld
  10. 10. Agenda  Origins of SaaS  Benefits  Today‟s marketplace  Salesforce.com‟s approach  Q&A Source: Gartner Inc.,
  11. 11. SaaS is Replacing On-Premise Faster than Anyone Imagined… 31% Growth 61% Growth 25-50% (CAGR) for On- In Enterprise Adoption Penetration Demand CRM of SaaS of Software Industry By 2009-2013 $2 Billion 61% 25% 2004 2010 2005 2006
  12. 12. Success with On-Demand Solutions Causes SaaS To Explode CIO Priority Resolution -- Start a Significant Software-as-a-Service Implementation as a Trial and Education “51 percent of organizations are using at least one on-demand application.” --- Nucleus Research and KnowledgeStorm “Software as a Service market potentially exceeds 40% of the total software market - or $50 billion by 2009.” --- TripleTree “63% of companies with more than 1,000 employees have adopted some on-demand technology, while 46% of those with fewer than 1,000 employees have.” --- Nucleus Research and KnowledgeStorm (Sources: TripleTree, SOFTWARE AS A SERVICE UPDATE, Q4 2006 and CRM Buyer Study: More Large Firms Now Deploying On-Demand Apps, By Erika Morphy, Feb. 12,
  13. 13. SaaS Distribution in 2005 by Application Type and Vertical Market Percent 20 By Application 15 10 5 0 Doc. CRM HR Finance Compliance Procur è rent Collaboration Other Mngt . Percent 20 By Vertical Market 15 10 5 0 FS Gvt Man Retail Uti Media IT Other (Source: Gartner 2007)
  14. 14. SaaS – Beyond CRM Salesforce.com’s Partner Ecosystem Over 5,000 Developers and 200 ISVs – and Growing Rapidly Tools Wireless Tools Wireless Devices & Integration Tools Applications Technology Data Quality Hosted Contact Tools Accounting Sales Prospecting Services Toolset Center Integration CRM Consulting Information Wireless Quickbooks On Demand Marketing & Sales Mapping Infrastructure Integration Integration Acceleration Marketing Channel Wireless CRM Wireless CRM Email Integration Email Marketing Intelligence Integration ERP On Demand Voice Access Data Management Billing Pen-based Automation Hosted Contact Sales Intelligence Wireless Sales Performance Web Conferencing CRM Consulting Center Applications
  15. 15. Agenda  Origins of SaaS  Today‟s marketplace  Salesforce.com‟s approach  Q&A Source: Gartner Inc.,
  16. 16. Customer Use of Salesforce.com Has Evolved CRM Customized Applications and Integrated Platform Ecosystem Directory ERP Legacy • Sales • Meta Customizations Customers building Partners building Directory of • Marketing • Rich Web Services new On-Demand integrated solutions On-Demand • Service & Support Integrations apps Business Apps
  17. 17. Why is Everyone So Excited About The AppExchange? 251+ Applications 8,600+ Installed Applications 122,000+ Test Drives —Nicole Miller Operations Analyst TARGUS Information Corp. Numbers as of May 15, 2006
  18. 18. What’s on The AppExchange Directory? Apps from Apps from the Salesforce.com Community Partner Apps Components
  19. 19. Sales Unlimited Edition Sales Service & Support Marketing Campaigns Altium used the AppExchange Platform to deploy six critical Customer Requests business applications in only four weeks Quoting Purchase Orders Project Management Electronic Components • Installed and • Rapid deployment of customized a quoting critical business app from the applications AppExchange • Reduced application • Developed a support burden for IT sophisticated purchase • IT can now focus order system attention on strategic • Extended the activities like getting Alan Perkins AppExchange Project Altium‟s products to CIO Management App to suit market Altium Corporation Altium‟s needs
  20. 20. Q&A
  21. 21. What Opportunities Does The AppExchange Present • Pre - Sales Processes • Sales and Marketing Productivity Extended CRM • Vertical Expertise • Post - Sales Business Processes • Email Marketing • Internet Telephony Ease of Integration • Data Quality • Configuration Tools • Operations Automate More • Human Resources Business Processes • Finance • Administration
  22. 22. What is the value of all of these apps and components? What if you take advantage of the best ideas Extended CRM from a community of 30,000 customers? What if you could get partner solutions Ease of Integration that worked „out of the box‟? What if you could extend your Automate More success with salesforce.com to Business Processes other departments?
  23. 23. Consistent Growth in Customers Success in Selling to Companies of All Sizes Total Customers 27,100 Paying Customers October 31, 2006 Fiscal Year Based on publicly available customer and subscriber numbers. Bars represent fiscal quarters.
  24. 24. Proven Scalability and Performance Delivering 60 Million Transactions Daily 4,000,000,000 1,400 Total Transactions 3,500,000,000 Per Quarter 1,200 Average Page 3,000,000,000 Response 1,000 Total Transactions 2,500,000,000 Page Response per quarter Time (ms) 800 2,000,000,000 600 1,500,000,000 400 1,000,000,000 500,000,000 200 0 0 FY05 FY05 FY05 FY05 FY06 FY06 FY06 FY06 FY07 FY07 FY07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
  25. 25. Salesforce Winter ’07 is Live for 556,000 Users 21st Generation of Success Biggest Release Massive Innovation
  26. 26. Gartner: On Demand TCO Lower Over 5 Years On-Demand Costs Year 1 Year 2 Year 3 Year 4 Year 5 Total Subscription $336K $336K $336K $336K $336K Subtotal $336K $336K $336K $336K $336K $1.7M On Premise Costs License $500K $500K Maintenance $100K $100K $100K $100K $400K DBA Support $135K $135K $135K $135K $135K $675K Upgrades $150K $150K Hardware $100K $100K Subtotal $735K $235K $235K $485K $235K $1.825M
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