Alliances & Channels Quarterly Update (June 2, 2014)


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Alliances & Channels Quarterly Update (June 2, 2014) with Tyler Prince, EVP WW Alliances & Channels.

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  • Key Takeaway: We are a publicly traded company. Please make your buying decisions only on the products commercially available from

    Talk Track:
    Before I begin, just a word from our lawyers.  We are a publicly held company and this is our safe harbor statement which if you cannot read, you can find on our website.  Any purchasing decisions you make, should be made based on currently available technology.
  • Just recently, we announced 37% growth driven by tremendous customer success, with a phenomenal 42% dollar growth in EMEA.
    We delivered a $1.23 billion quarter which is a huge accomplishment for any company and raised our guidance for the full fiscal year by $40M, bringing us to $5.34B.
    In our earnings call, we highlighted some of our big wins in Q1, partners played a key role in every single one.

    For example: Manulife, one of the world’s largest insurance and financial services providers selected the Service Cloud to create a single customer engagement platform and deliver personalized service across all of their life insurance wealth management and investment products – and IBM was key in that deal.
    Another big win is Sky Italia in Italy who selected us for Service Cloud, Platform and Communities – and Deloitte was invaluable with that deal.
    On the earnings call, if you were able to listen in, you would have heard Keith Block, our Vice Chairman, talk to the financial analysts about the investment in both SI and ISVs partners who will be an engine for future growth. And our CEO Marc talking about how impressed he is with the ISV solutions on the Appexchange and how ISVs are a catalyst for Salesforce1 platform.

    All in all, a strong showing in Q1 – you know Q1 is traditionally a tough quarter with sales kickoffs and territory alignments, but we hit the ground running and have a strong start to the FY.

  • You’ve probably seen a version of this slide from me or someone else in the past – we like our accolades!

    I’d like to call your attention to a couple of new items though – IDC has named us the Enterprise Cloud Computing market share leader and then we were just named Fortune magazine’s Most Admired Software Company for the second year in a row.

    Even our culture has been recognized, and we just had our 15 year anniversary and really celebrated our unique culture in all our offices around the world.
  • OK and here’s the eye chart!
    The key point of course is that our little Salesforce dot is in the magic quadrant at the top right.
    We’ve held the dominant position for Sales and Service Cloud but this is the first year that we have had this great position for the Platform as well – no doubt linked to the rollout of our Salesforce1 platform.

  • Top line growth was excellent for the partner business – partner sourced ACV accounted for 12.5% of our overall ACV number
    We also saw a 40% increase in the number of ISV orders with phenomenal growth in Europe.
    And we’ll hear more about the new Partner Community in a few minutes
  • We’re also in the middle of our Salesforce1 World Tour – we hope many of you have had the chance to attend.
    Our event in London had over 10,000 registered so the events are getting bigger!
    If you haven’t attended one yet, I hope one of the upcoming cities might work for you.
  • And in conjunction with many of the Salesforce1 tours, we’ve been running all day Partner Forums the day prior with strategic business and technical content including roadmaps presented by our cloud product teams.

    If you haven’t been able to attend one of our Forums, we have Toronto and Munich coming up in June!
  • Now, let’s look forward to Q2 and spend some time talking about two topics that partners have expressed a lot of interest in.

    I’d like two members of my management team to join me to do a deeper dive into these topics.

    I’ll start with Kori O’Brien who will share more details about Salesforce’s industries strategy and the new Industries Business Unit.
  • We are taking our deep expertise in working with leading companies in various industries and are using it to deliver relevant, scalable solutions that will transform how they sell, service, and market to customers.

    Every industry is facing disruption today. We can help transform their business models.

    Salesforce is focused on providing dynamic industry solutions that connect to customers in the social, mobile, cloud, and connected device world
  • It starts with our ability to speak the language of the customer, of the industry. And we’ve built a team of leaders who can walk into C-suites and connect immediately with the business leader. They understand industry challenges. They know what’s going on, and how to fix it.
  • Neeracha – the Partner Community looks great, tell us more about it.

    So then what’s happening to the old Partner Portal?

  • Transition: So let’s look at the incredible opp in 2015. The world is going mobile. Companies need to get on board. Let’s take a look at some incredible statistics coming down the pipeline.

  • Take Away
    Heroku and work together. Apps build on Heroku and Force can be sync’d so your customer data can be tracked in Salesforce.

    Talk Track
    At Dreamforce we announced Heroku1, a powerful way for developers to synch data from customer apps built on heroku with

    Developers can now build customer apps in any language and seamlessly integrate these apps with the customer’s profile in, making every interaction more meaningful.

    No matter how you want to build apps they can now easily connect with salesforce.
  • App Dev non-started

  • And don’t forget to join us at Dreamforce! Registration has just gone live, and initial demand has been strong!
  • It will be bigger and better than ever – amazing technical and business sessions throughout including opportunities to get certified on-site.
    Network with countless customers and partners.

    And of course, the inspirational content and speakers that you’ve come to expect from us.
  • We’re ready for your questions – anything we don’t get to live, we’ll make sure to respond personally to each of you.

    While you’re getting questions into the web console here, I’d like to wrap it up by saying that we’re coming off a great quarter, lots of momentum with the Salesforce1 tours, some great new products like Heroku Connect for you to leverage and then it’s the road to Dreamforce for us.
    So thank you to you all for contributing to our strong start for the year – and now to questions. Neeracha – can you tee up the first question?
  • Alliances & Channels Quarterly Update (June 2, 2014)

    1. 1. Alliances & Channels Quarterly Update June 2, 2014
    2. 2. Tyler Prince EVP, Worldwide Alliances & Channels @tyler_sfdc
    3. 3. Today’s Agenda Q1 Recap What’s in Store for Q2 Product Spotlight: Heroku Connect Up Next: Dreamforce Q&A Please use the web console to ask any questions.
    4. 4. Safe Harbor Safe harbor statement under the Private Securities Litigation ReformAct 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, 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 product or service availability, 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, new products and services, 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, the outcome of any litigation, risksassociated with completed and any 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 products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures 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 presentations, 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., inc. assumes no obligation and does not intend to update these forward-looking statements.
    5. 5. Q1 2008 Q1 2011 Q4 2014 37% Growth Driven by Customer Success $1.23B FY15 Revenue Guidance $5.3B FY15 Q1 Revenue
    6. 6. InnovationLeadership Culture #1 in CRM, Cloud Computing & Innovation’s 15th birthday celebration World’s Most Innovative Company 2011, 2012, 2013 Enterprise Cloud Computing Market Share Leader** #1 Enterprise, MidMarket & Small Business Process & Service Innovation Gartner: Market Share Leader for CRM Software, Total Software Revenue Worldwide, 2013 *Gartner Research Document: Market Share Analysis: Customer Relationship Management Software, Worldwide, 2013, Joanne M. Correia, Yanna Dharmasthira, Chris Pang, April 16 2014 ** IDC: Worldwide SaaS and Cloud Software 2012-2016 Forecast and 2011 Vendor Shares
    7. 7. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. This Gartner document is available on request from Leadership in CRM Application & Platform Gartner Research Document: Magic Quadrant for Sales Force Automation, Rob DeSisto, Patrick Stakenas July 2013 Gartner Research Document: Magic Quadrant for CRM Customer Engagement Center Michael Maoz May 2013 Gartner Research Document: Magic Quadrant for Enterprise Application Platform as a Service Yefim V. Natis, Massimo Pezzini, Mark Driver, David Mitchell Smith Kimihikp Iijima, Ross Altman January 2014
    8. 8. Great Q1 Momentum with Partners System Integrators ISVs Programs / Outreach Q1 ACV 45% YoY Growth Increased delivery capacity by 1,000+ certifications to 19,000+ certifications in the ecosystem 40% YoY growth in orders 200% ACV growth with EMEA partners Launched new Partner Community on modern Salesforce technology with Chatter and Knowledge Improved partner outreach via webcasts, social and partner forums 8
    9. 9. Philadelphia Melbourne Boston Chicago London Washington, D.C. NEXT Atlanta-June 12 Dallas-June 18 Toronto-June 25 Paris-June 26 Munich-July 3 SoCal-July 15
    10. 10. Melbourne - Mar 25 Chicago - April 23 London - May 21 Amsterdam - May 26 800+ partner attendees 60+ hours of partner-specific content NEXT Toronto-June 26 Munich-July 2
    11. 11. What’s in Store for Q2 Industries Update Kori O’Brien VP Industries Partner Community Update Neeracha Taychakhoonavudh SVP Partner Programs & Marketing
    12. 12. Our Commitment to Industries Connected Merchandise Retail/ Consumer Products Connected Content Communications/ Media Connected Cars Automotive/ Manufacturing Financial Services Connected Banks Health Care/Life Sciences Connected Medical Devices Extensive Industry Expertise Unique Solutions by Industry Transforming Business Models Public Sector Connected Government
    13. 13. Industries Business Unit R&D SIs & ISVs AR / PR Marketing SFU Professional Services Sales Drives cross-functional, coordinated enterprise-level solution sales. Aligned with each major Salesforce component, while adding an Industry focus to products, marketing, and sales. Create Industry-specific deliverables, including:  Relevant, scalable solutions  C-level customer engagement  Industry blueprints  Pipe-generating events  Sales enablement  Solution demos  Playbooks  EBC support Market Influencers
    14. 14. Global Industry Leaders & Experts Patrick Pelata 28+ years inAutos COO, Renault-Nissan Automotive/Manu facturing Todd Pierce 20+ years in Life Sciences leadership CIO, Genentech Health Care/ Life Sciences Shelley Bransten 20+ years in Industry Head of CRM, Gap Inc. Retail/CPG Andy Baer 30+ years in Industry CIO, Comcast Cable Communications/ Media Financial Services/Insuranc e Hiring in 1H Dave Rey 27+ years in Industry Public Sector, Oracle Public Sector Dedicated Go-to-Market teams for each Industry focused on strategic customer engagements and creating reusable assets
    15. 15. Solution Early Traction Lead & Referral Onboarding & Origination Member Connect Clienteling Subscriber Ordering & Service Media Subscriber Mgmt Citizen Engagement Center Gov App Development Owner Portal Create: Repeatable, Scalable Solutions
    16. 16. Want to know more?
    17. 17. Partner Community Launch Sign up at Launched April 2014 July: Unified Search Case Management October: Lead Registration Project Registration
    18. 18. Product Spotlight: Salesforce1 Heroku Connect & Customer App Package Abe Pursell Platform Business Development @abepursell
    19. 19. Heroku Connect GA (May 2014)
    20. 20. What if it was Easy for Every Company to Build Connected Customer Apps?
    21. 21. Employee AppsCustomer Apps Connect Your Customer Engagement Apps with Your Business Process Salesforce1 Heroku Connect Integrate your Business Process Engage your Customers
    22. 22. Demo
    23. 23. Heroku Powers The Consumer Internet 3 Million + Apps Built On Heroku 5 Billion + Requests Per day
    24. 24. Announcing: Salesforce1 Connected Customer App Package Now Every Company Can Easily Build Connected Customer Apps Salesforce1 Connected Customer App Package Heroku Connect Heroku XL Dynos Heroku Postgres Databases Heroku Essentials Add-ons Customer Logins Complete toolset for connected customer app development Easy access to business data Fast time to market Instant scale Continuous brand building
    25. 25. What Can You Build with the Connected Customer App Package? Engaging Customer Loyalty Apps Beautiful Shopping Apps Always-On Connected Product Apps Update Products Push Offers Drive Sales Control Devices Collect Usage Data Prevent Issues Track Customer history Incent behavior Strengthen Relationships
    26. 26. What’s next? Have an opportunity, need access, demos, more information etc Salesforce1 Platform chatter group Abe Pursell -
    27. 27. Up Next: Dreamforce
    28. 28. SAVE THE DATE! October 13-16, 2014 San Francisco Register today at
    29. 29. Learning Networking Inspiration What’s in Store at Dreamforce ‘14? Four amazing days to get the best that has to offer • 1,400+ breakout sessions • Hands-on training • Opportunities to meet with product experts • 1000’s of product demos from and our ecosystem of partners • Welcome Reception • Dreamforce Gala • Partner parties • Countless opportunities to interact with fellow attendees • Industry leaders • Visionary thought leaders • Surprise guests • The future of our products, the industry, and the world
    30. 30. Top 5 Reasons to Sponsor Dreamforce Experience the #1 Technology Industry Event Network with the Dreamforce Community Learn to Build Your Business Get Inspired and Give Back to the Community Generate Buzz for Unparalleled Awareness and Demand For sponsorship details, email
    31. 31. Thank You to Our Top Sponsors To Date
    32. 32. THANK YOU
    33. 33. Q & A