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Connecting Above the Cloud

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AITP San Diego Cloud Conference 2013 Peter Coffee Keynote

AITP San Diego Cloud Conference 2013 Peter Coffee Keynote

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  • 1. Peter Coffee VP / Head of Platform Research salesforce.com inc. Connecting Above the Cloud
  • 2. Safe harbor statement under the Private Securities LitigationReformAct of1995: This presentationmay contain forward-lookingstatements that involve risks,uncertainties,andassumptions. If any suchuncertainties materialize or if any of the assumptions proves incorrect,the results of salesforce.com,inc. coulddiffer materially fromthe results expressedorimpliedby the forward-lookingstatements we make.All statements other thanstatements of historical fact couldbe deemedforward-looking,includingany projections of subscriber growth,earnings, revenues,or other financial items andany statements regardingstrategies orplans of management for future operations,statements ofbelief,any statements concerningnew,planned,or upgradedservices or technology developments andcustomer contracts oruse of ourservices. The risks and uncertainties referredto above include – but are not limited to – risks associatedwithdeveloping anddelivering new functionality for ourservice,ournew business model,our past operatinglosses,possible fluctuations inour operatingresults andrate of growth,interruptions ordelays in ourWeb hosting, breachof our security measures,risks associatedwithpossible mergers andacquisitions,the immature market in which we operate,our relatively limitedoperatinghistory,ourability to expand,retain,and motivate ouremployees andmanage our growth,new releases of ourservice andsuccessful customer deployment,ourlimitedhistory resellingnon-salesforce.comproducts,andutilizationandsellingto larger enterprise customers. Further informationonpotential factors that couldaffect the financial results of salesforce.com,inc. is includedinour annual report andon our Form10-Q forthe most recent fiscal quarter: these documents andothers are available onthe SEC Filings sectionof the InvestorInformationsectionofourWebsite. Any unreleasedservices or features referencedinthis orother press releases orpublic statements are not currently available andmay not be deliveredon time orat all. Customers who purchase ourservices should make the purchase decisions basedupon features that are currently available. Salesforce.com,inc. assumes no obligationanddoes not intendto update these forward-lookingstatements. Safe Harbor In Fewer Words: Everything That You’ll See Here is Real
  • 3. “Digital” Camera? “Cellular” Phone? “Cloud” Computing? “Someday, you’ll have to tell your kids about phones that had wires…and TVs that didn’t” - Scott McNealy Over the Long Run, Adjectives Vanish
  • 4. “Digital Camera”: every December, it’s still news to someone “Cloud Computing”: more use it, fewer ask about it This Is How Novelty Ends
  • 5. Will Today’s Disruptors Sign In, Please?  Mobility  Social Interaction  Big Data
  • 6. ‘Cloud’ is Where the Puck Used to Be  “Big Data” gives the cloud something to do – Elastic capacity for high peak/average ratios – Connectivity to real-world, real-time…reality
  • 7. Discovery, Not Query What the World is Doing, not What the Business Did “By combing through 7.2 million of our electronic medical records, we have created a disease network to help illustrate relationships between various conditions and how common those connections are. Take a look by condition or condition category and gender to uncover interesting associations.” visualization.geblogs.com/visualization/network/
  • 8. Your “Product”…Becomes Just a Data Collector “The addition of BaseSpace eliminates the need for expensive IT infrastructure, simplifying the process of adopting a personal sequencer for labs of any size and experience,” commented Illumina CEO Jay Flatley. Illumina Launches BaseSpace Cloud Platform for MiSeq October 12, 2011
  • 9. Mobile Data Sources: Where the Puck is Going  Android and iOS combined market share approaching 2/3  Windows at ~1/5…and shrinking
  • 10. Mobility: More Than a Handle There are three parts of user experience to increase convenience: immediacy, simplicityand context. The three parts make up a customer’s mobile context, or the overall feedback of what a customer has told you and is experiencing during engagement. The Future Of Mobile Is User Context Context Transforms Product OpportunitiesFor Consumer Product Strategists
  • 11. Multi-Device Users Demand Decoupling
  • 12. What is an “application” anyway?  Old “applications”: – Data captured as by-product of business activity – Function driven by familiar business tasks – User experience an afterthought – Built by programmers; judged on cost & efficiency  New “apps”: – Data captured through algorithms of discovery – Function driven by customer delight – User experience a top priority – Apps built by front-line business units; judged on ROI
  • 13. AppRequirement Install & Configure Stack Write Code Deploy & Load Test Monitor & Tune Patch & Regression Test Apps Revolution Requires PaaS Speed Legacy Stack-Based Process – Wherever it Is IDC White Paper sponsored by Salesforce.com: “Force.comCloud PlatformDrives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009 Half-life of desktop client turnover is ~10 years (WinXP: 50% market share @ 10th birthday) Average time to build a custom app with software is ~8 months (IDC) Since 2009, Qualcomm/Android cycle time has dropped to < 4.5 months PaaS advantage shrinks development time fivefold Anything slower  subsetting device features or skipping generations
  • 14. What do you get from  Patterns in big data derived from  Social networks of people & devices via  Ubiquitous, 247 mobile connection? Data, from Networks, Fed by Devices
  • 15. In a World of Five Billion Smart Phones  “People making calls or sending text messages originating at the Kericho tower were making 16 times more trips away from the area than the regional average. What’s more, they were three times more likely to visit a region northeast of Lake Victoria that records from the health ministry identified as a malaria hot spot. The tower’s signal radius thus covered a significant waypoint for transmission.”  “This is the future of epidemiology. If we are to eradicate malaria, this is how we will do it.” – Caroline Buckee
  • 16. Michael Koster, Open Source Internet of Things www.meetup.com/The-Open-Source-Internet-Of-Things-Silicon-Valley/ APIs evolve; ecosystems emerge Connecting at Scale: An Internet of Things is Real
  • 17. Fortune 100 Facebook Fan Growth Fortune 100 Web Traffic Growth 123% growth in social customers Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; Google Social Media Analysis Study Jun 2010 Dec 2011 Your Brand Is No Longer Your Property “We analyzed the website traffic of Fortune 100 websites based on ‘unique visits’. The study revealed that 68% of the top 100 companies were experiencing a negative growth in unique visits over the past year... 40% exhibited higher traffic to their Facebook page compared to their website.” Fortune 100 Facebook Activity Fortune 100 Web Activity
  • 18.  Old Customers: – Prospects get content from Marketing – Buyers negotiate terms with Sales – Customers raise issues with Support  Social Customers: – Prospects seek insights from customers – Buyers collaborate on competitorresearch – Customers tell the world when they’re not happy  Companies need new organizations & processes – Every employee/contractor/partner is a spokesperson/avatar – Power to address issues must be pushed to edge of organization – Collaborative response must be available on demand The Social Customer Plays by New Rules
  • 19. TECH 5/06/2013 @ 8:39PM | 5,338 views 10 Ways Cloud Computing Is Revolutionizing Manufacturing Designing in servicesis now becoming commonplace, making cloud integration expertisecritical for manufacturers.  From simplistic services integration on iPhones to the full implementation of voice-activated controls including emergency assistance in the latest luxury cars, adding in services integrated to the cloud is redefining the competitive landscape of industries today.  Revising a product or launching a new product generation with embedded services can mitigate price wars, which is why many manufacturers are pursing this strategy today. Products are Also Connected
  • 20. If you think people are touchy about their money, wait ’til you know where they were parked…and who else was in the car…with what kind of music playing on the radio. It’s essential to reduce complexity and to narrow the scope of privileges – rather than compounding complexity and enabling more superusers. Connected Planets Elevate Issue of Trust
  • 21.  “Boiler rooms in Berlin or Bucharest, a pump-and-dump scheme out of Parma or the Dordogne…are U.S. concerns” – Paul Atkins, SEC Commissioner • Data-handling laws proliferate • Notificationof Riskto Personal Data Act • PersonalData Privacy and Security Act • Data Accountability and Trust Act • SocialSecurity Number Protection Act • Prevention of Fraudulent Access to Phone Records Act • Technology trends oppose the goals of governance • Processing: enemy of encryption • Connectivity: attacker opportunities and tools • Storage: ever-growing risk of larger losses Connected Planets Challenge IT Governance
  • 22. You All Know This. Most People Don’t. • Each app has its own dedicated software stack • Each stack needs duplicative maintenance • Every app and its stack are individual opportunities for error or misconfiguration • Pace of innovation is slowed by need for cumbersome regression test / re-implementation Ourinfrastructure Other apps Server OS Database App Server Storage Network App1 Server OS Database App Server Storage Network App2 Server OS Database App Server Storage Network App3 • Applications share an “instance” of the platform • Platformupdates apply to all at once • Massive economies of talent, energy and cost Legacy IT Model Multi-Tenant Cloud
  • 23. When the Platform is a Service: Apps Assurance iOS + Android: 100 billion downloads > 1,800 apps > 1,100 partners > 1.9 M installations ~70% of Fortune 1000 using at least one
  • 24.  Password security policies  Rich Sharing Rules  User Profiles  SSO/2-factor solutions Login… Authenticate… Apply Data Security Rules… View Filtered Content When Platforms Are Born In the Cloud… …Assets Can Be Shared and Secure
  • 25. Granular Privilege Assignment + Expanding Ecosystem of Management Tools
  • 26. CoherentCode Base and Managed Infrastructure Your Clicks Your Code User Interface Logic Database Selectively exposed data, logic and customizations Click to Connect Salesforce toSalesforce Sharing
  • 27. Compliance Mandates Map to Cloud Capabilities  Visibility and Assessment – Public Company Accounting Reform and Investor Protection Act (“Sarbanes-Oxley”) §404 requires “internal control report” (establishment and evaluation) combined with§302 requirement to certify “appropriateness” – True PaaS architecture makes all applications subject to a single, visible trust model; enables and facilitates automated workflows; and enables precise auditability of actions  Privacy Assurance and Control – Financial Services Modernization Act (“Gramm-Leach-Bliley”) Title Vrequires periodic customer engagement and “opt-out” provision – Metadata field-level connection, under customer control, enables excellent visibility and assured revocation of sharing  Modern and Rigorous Encryption – California Security Breach Information Act (“SB-1386”) mandates disclosure of suspected breach of unencrypted data – Both internal and boundary encryption can readily be applied to PaaS
  • 28. 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
  • 29. Trusted Advisors Recommend the Cloud Potential benefits from transitioning to a public cloud computing environment: • Staff Specialization • Platform Strength • Resource Availability • Backup and Recovery • Mobile Endpoints • Data Concentration
  • 30. 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! Assets Secured In Depth – All the Time
  • 31. “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 Savvy Attackers Aim at Softer Targets
  • 32. If It’s Such A Good Idea… …Why Isn’t Everyone Doing It? 0 20 40 60 80 100 120 140 0 5 10 15 20 25 30 Flame started here What happened here? * * In a pot of water mixed with ice, this is where the last ice melted Minutes
  • 33. They’d Rather Ride a Unicorn – You’ll be told that CIOs “prefer a private cloud” – If it’s not really a choice, a ‘preference’ is a fantasy • The cloud is connection, not isolation • The cloud is agility, not stagnation They’re Used to Feeding Their Minotaur – Social, mobile and open IT are competitive mandates – The skills required to do it are scarce – Talent mustn’t be wasted supporting non-differentiating IT They Don’t Realize They’re Antisocial – Social tools aren’t merely recreational – Events should call for attention – Content should accompany conversations – Workplace tools shouldn’t constrain contributions The Last Bits of Ice in the Cloud
  • 34. Connected Computing Leaves the Desk Behind  “Desktop metaphor” is 25 years old – Xerox… – Apple… – Microsoft… …but today, 1/3 of U.S. adults own at least one tablet… …and usually don’t use it at a desk
  • 35. It’s Time to Make the Customer the Focus  1st-generation computer: enter code with switches – Think about memory and storage – 1st-gen operating system: “Load my program”  2nd-generation computer: command-line window – Think about programs and files – 2nd-generation OS: “EDIT MY_FILE”  3rd-generation computer: desktop metaphor – Think about ‘documents’ like spreadsheets – 3rd-generation OS: double-click an icon  It’s time for the next generation  A platform that connects with…customers
  • 36. How We Plan to Do It Bigger: “Septemberwas another record month – 31.5 billion transactions, up 50% from September’12, with average response time of 253 ms” - Tuesday, 6:44 a.m. Better: GA Criteria for New Functionality UI will be built on top of public API Thus, the API is functionally complete with the UI
  • 37. You’ll Get the Cloud You Ask For  If you treat the cloud as merely a way to modernize your IT, that’s all you’ll get.  No matter how creatively and competently that modernization is done, it will not be enough.  Broadening the perspective requires enlarging the community of stakeholders and lengthening the list of criteria for success.
  • 38. @petercoffee linkedin.com/in/petercoffee f facebook.com/peter.coffee pcoffee@salesforce.com