Keynote by Peter Coffee of salesforce.com for Phorum 2012 event of Philadelphia Alliance for Capital and Technologies (PACT) - Revolutions in cloud services enabling reinvention of enterprise collaboration and social engagement through teams, customer communities, and socially enabled products

1. Clouds of Revolution
Reinventing the (Social) Enterprise
@PeterCoffee
Peter Coffee
VP & Head of Platform Research
salesforce.com inc.

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@PeterCoffee

3. Revolution 1: Breakout Speed & Efficiency
• Silicon Photonics
– performance/watt has been flat over time (Google Labs, ’05)
– Ge lasers 100 times faster than intra-chip wires (MIT)
– reduced power losses, easier to cool
– ‘seed & melt’ detector fab: cheaper than vapor deposition (IBM)
• Memristors (HP, IBM, Hynix)
– roughly twice the density of flash
– more than 1,000 times faster
– millions of rewrite cycles
• Metamaterials (Purdue)
– new semiconductors ‘steer’ light with electric fields
– aluminum and gallium doping agents reduce optical losses
@PeterCoffee

4. Revolution 2: Precise Control of Trust
• Formally verified operating system (National ICT Australia)
• Application ‘whitelisting’
• Facebook “Custom” button
– What do they have in common?
– Finally, a trend toward granting specific permissions rather than
trying to anticipate and block attacks and errors
@PeterCoffee

5. Revolution 3: Massive Analytics & Insight
• Big Data
– “Time is lost, confusion results and money is spent.”
(1917 complaint about the telephone)
– ‘volume, velocity, variety’ (Gartner)
– beyond scientific computing
• Bigger Tools
– Hadoop (Facebook / Cloudera)
– Informatica
• Improving Informatica
Algorithms &
Visualizations
@PeterCoffee

6. Revolutions 4-?: Connecting Everything
• Bandwidth pooling
– BitMate (Pakistan) effectively doubles connection speed
– downloaded by users in 173 countries
• Tagged-packet networking (USC / GM)
– instead of sending packets to an address,
label with data attributes
• ‘This is what I’m about’
• ‘This is where I’m useful’
• ‘This is when I’m outdated’
• Task-inferring search (Siri)
• Data security and robustness (RSA)
• Pervasive Social Networking
@PeterCoffee

7. Social Revolution:
Social Networking Surpasses Email
So what?
1.1
Social Users billion
social
users
Email Users
2007 2008 2009 2010 2011
Source: Comscore, June 2011
@PeterCoffee

8. Social Networks: More Than Just ‘Sum of the People’
(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)
@PeterCoffee
Pop quiz: where is Beijing?

9. ‘Digital’=Evolution; ‘Connected’=Revolution
 Replacing doctors’ clipboards with smartphones?
– Does not make current health care model sustainable
– Connectivity lets patients stay in sensor-enriched homes
• Radically reduce office visits and hospital admissions
 Replacing students’ textbooks with iPads?
– Does not make current higher education model sustainable
– Connectivity turns the campus inside out
• Most of students’ time spent in ‘intern’ environment
• Instructors can tailor presentation sequence to work demands
• Return to campus for seminars, research colloquia…and graduation
@PeterCoffee

10. Networks are More Than Webs
 Webs are woven; networks emerge
– A web is just a collection of connections
– The arcs of a network have direction,
magnitude, quality, and value
 ‘Friend’ is bilateral; ‘Follow’ is not
– Counting followers → ego rewards, but what do they do for you?
• Followers may be just as entertained by your failure
– A critic whose input is acknowledged becomes an advisor
• When input → results, advisors feel invested → advocates and zealots
 Products have buyers; brands have fans
@PeterCoffee

11. Fans Arise from ‘+1’ Customer Experience
 Engineers get to write spec sheets…
 Assembly workers get to build and ship…
 Lawyers get to write the terms of service…
 Call centers get to compile call statistics…
…but only the customers get to say what kind of
experience they had – and they say it to the world
 Is every employee in the company equipped to
make that experience excellent?
@PeterCoffee

12. Collaboration is Key
 A social workplace is ‘relative’
– Not statically defined by org chart
– Reshaped by knowledge
– Accelerated by events
 All Force.com applications are
socially enabled by Chatter
– Older apps simply acquired
the new behavior
– Social behaviors are pervasive,
not isolated in social silo
@PeterCoffee

13. Experience Is Not Partitioned
@PeterCoffee

14. ‘Product’ = Vehicle of Ongoing Experience
Chatter for 320,000 Toyota Vehicles
Employees Social Customer
Profile
Dealers/Distributo
Toyota Friend
rs
Mobile
Toyota Friend
1-800-4-My- Website
Toyota
Manufacturing/ Toyota Friend
Finance on Youtube
Toyota Friend on
Toyota Friend
Toyota Friend Facebook
on mixi
on Twitter
@PeterCoffee

15. Experience Creation → Profit Preservation
“One automaker’s chief financial officer told Sun
COO Jonathan Schwartz that his company could
give a car away for free, if it could charge a
customer $220 per month for a subscription.”
www.zdnet.com/news/sun-puts-java-into-gear-for-cars/136886
“CE device margins are razor thin, and the promise of
maintaining an always-on connection to the customer after the
point of sale is mighty enticing… Simply put, connected
devices make connected customers.”
Richard Schwartz, President and CEO, Macheen
“The retail cloud has reached critical mass: everything from DVD
players to TVs, from car entertainment to alarm clocks, comes with
some sort of cloud service to support that device.”
David Linthicum, 18 January 2012
@PeterCoffee

16. Experience = Interaction → Adaptation
 Where are customers & influencers having conversations?
 What facilities exist for tapping that stream?
 What are the cultural norms of that community?
 When should you be present?
 How should you participate?
 Who will represent you?
 How will that process scale?
 What will you learn?
 How will you change?
@PeterCoffee

17. Refining Experience: More Than Listening
@PeterCoffee

18. Experience Delivery: a Model, not an App
• Collaborative
process creation &
maintenance
• Best practice
Andrew Leigh. I need to create a new
sharing customer service process for the iPad, can
you guys help?
• Integration with
New process created: iPad Tier 1 Support
feeds and other Process (Goals: Run time, 5 min)
social channels
• Social
Steve Wood. Great – I can help with the
case escalation by linking in the Apple
Escalation Process.
process Varadarajan Rajaram. Yes, I know this
product well – there are a bunch of
management solutions I can build into this process.
@PeterCoffee

19. Enterasys Devices Are Social
Network
congestion
in Asia.
Facebook, Twitter, and Chatter
notifications
Users receive alarms
and alerts
Enables rapid response
Reduces system downtime
@PeterCoffee

20. The Value of Velocity
New Devices → New Use Environments → New Moments of Opportunity & Decision
CIO Tablet Intentions
“
2011
Employee-
...fastest ramping
Not Allowed Purchased for Employees
owned
mobile device
”
ever.
2010
Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011.
@PeterCoffee

21. The Value of Velocity
Legacy Stack-Based Process – Wherever It Is
Install & Write Deploy & Monitor Patch and
Configure Load & Tune Regression
Code
Stack Test Test
You Your
App
Average time to build a custom app with software is 8 months.
IDC White Paper sponsored by Salesforce.com: “Force.com Cloud Platform Drives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009
By late 2009, Qualcomm/Android cycle time had dropped to 4.5 months.
Computerworld, “Is 'Quadroid' the new 'Wintel'?,” 2 December 2010
@PeterCoffee

22. The Value of Velocity
One developer with no prior
Force.com training built a patient
admission app in just 4 days
Deployed to Medical Directors and
Program Directors in hospitals on
iPhones and iPads
• Eliminated paper forms;
• Workflow reduced response time
“We’re blown away…a mobile healthcare by more than 60%;
app on Force.com with one person in just 4
• Cut process time from 18 hours
days… The same app built in [previous
models] would have taken over 3 months” to less than 60 minutes
@PeterCoffee

23. Social Velocity Leads to The Cloud
• Old Cloud: Centralization + Automation → Cost Reduction
– Distant resources: considered to be a tolerable nuisance
– Security: assumed to be a challenge, and compliance a barrier
– ‘Cloudwashing’ of legacy products: tempting and easy
• New Cloud: Connection + Simplification → Acceleration
– Data and process in cloud are closer to everything else you need
– Security is part of the service; audit trails are easy to provide
– You can’t ‘connectwash’ a server, no matter how much
virtualization you apply or how many ‘private clouds’ you proclaim
– In false clouds, you pay for resources…
…in true clouds, you pay for opportunities
@PeterCoffee

24. Trust Attainment Enables Cloud
Adoption
• Robust infrastructure security
• Rigorous operational security
• Granular customer controls
– Role-based privilege sets
– Convenient access control & audit
• “Sum of all fears” scrutiny
– Multi-tenancy shrinks attack surface; slashes opportunities for error
– The most demanding customer sets the bar
– FISMA: FIPS 199 LOW and MODERATE
– PCI DSS Compliance Level 1
– Comprehensive and continuing audit and certification
@PeterCoffee

25. Best Practices Matter More than Data Location
"There are five common factors that lead
to the compromise of database
information":
• ignorance
• poor password management
• rampant account sharing
• unfettered access to data
• excessive portability of data
DarkReading.com, October 2009
@PeterCoffee

26. All Assets Secured, All the Time
Despite resource sharing, multitenancy will often
improve security. Most current enterprise security
models are perimeter-based, making you
vulnerable to inside attacks. Multitenant services
secure all assets at all times, since those within the
main perimeter are all different clients…
Multitenancy is here to stay. Our research and
analysis indicates that multitenancy is not a less
secure model — quite the opposite!
@PeterCoffee

27. “Do it yourself” vs. “Who you gonna call?”
Po t e nt ia l
b e ne f it s f r o m
t r a ns it io ning
t o a p ub l ic
c l o ud
c o mp ut ing
e nv ir o nme nt :
• St a f f
Sp e c ia l iz a t io n
• Pl a t f o r m
St r e ng t h
• Re s o ur c e
Av a il a b il it y
• Ba c k up a nd
@PeterCoffee
Re c o v e r y
• Mo b il e

28. Public Clouds of Public Trust:
No More ‘Forbidden Zones’
General Economic Health & Defense &
Transportation
Government Development Human Services Public Safety
Science &
Environment
@PeterCoffee

29. The Cloud Experience: It’s About Results
• ‘The cloud’ does use technology
• Virtualization
• Dynamic provisioning
• 4G wireless
• SOA
These enable; they don’t guarantee
• ‘Cloud’ is a business commitment
– Negligible up-front capital
– Alignment of cost with value
– Maximal stakeholder engagement
@PeterCoffee

30. @PeterCoffee

31. Velocity is a Vector
 ‘Social’ has both magnitude and direction
– If you’re going the wrong way, it doesn’t help to go faster
– The Social Revolution offers ~ unlimited ways to go wrong
 Trust takes a long time to win; ~ zero time to lose
– Unhappy customers used to call you and wait for action
– Today, they can give the world hourly updates while they wait
– Never a headline, “X Corp.’s customer data uncracked today”
 It’s not enough to evolve
– Where must you be in three years?
– What should you have been doing today?
@PeterCoffee

32. Thank You
@petercoffee
cloudblog.salesforce.com
pcoffee@salesforce.com
@PeterCoffee