Peter Coffee 20100923 AITP Cloud Computing Con SD


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Peter Coffee presentation, "The Evolution of SaaS", to the second annual Cloud Computing Conference produced by AITP in San Diego, California

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  • Any purchase decisions customer make should be made based on currently available technology.
  • Comprehensive reviews, and cost-effective amortization of security costs across multiple tenants enables superior trust at competitive prices
  • We move the complete freedom of a custom logic capability up into the metadata layer as well, uniquely combining the power of custom logic with the economy and robustness of a full multi-tenant environment. Someday, others will do likewise: for now, is unique in delivering this combination of characteristics.
  • Liberating latent value from legacy IT assets is often the most unexpected bonus of the cloud – and it’s “the” cloud, one common cloud with many interoperable services, not multiple clouds representing separate silos
  • In 1999, we asked a simple question: why isn’t all enterprise software like I don’t install anything, I don’t upgrade anything, it scales. It was amazing. It was a killer app. But now, in 2010 we ask a different question: why isn’t all enterprise software like Facebook? It’s easy. It’s fun. It’s entertaining. It’s informational. We learn all these things about the people we care about. What if we could share and collaborate like this within our company? What if you knew about all of your employees, your customers or your systems as well as you new your friends and family on Facebook?
  • Absent reliable data, CRM would be a definitive case of GIGO. Jigsaw has already proven to be an effective combination of the cloud’s communities and incentives with the enterprise capabilities of CRM; the acquisition takes nothing away from that community, but adds valuable ease of comparison and correction within the application context
  • Before Salesforce, our customers all had a common problem. When their customers wanted customer service and an answer to their question, they don’t want to pick up the phone today. Instead, they jump onto Google and type in their question. Or they go to Twitter to reach out to the community for an answer. They are looking for faster ways than sitting on hold on the phone with someone that may not have the right answer. Unfortunately, yestersday’s call centers don’t work with Google, Twitter, Facebook or community sites. Companies are struggling with how to bridge the gap between their existing call center technology and The Cloud, where their customers are today.
  • Bank of America is a great example of a company that has joined the Service Cloud. Bank of America recognized a year ago that many of its customers were on Twitter, having conversations about BofA on Twitter. People were asking questions if BofA was better than Chase and how good the interest rates were at BofA. Some customers were complaining and some were just talking about their experiences at BofA. Using Salesforce for Twitter, BofA joined these conversations in the cloud and brought these tweets into Salesforce so agents could manage and respond to them. Today the company manages over 1,100 tweets per day and has over 6,000 followers. They have had very positive results in being able to quickly resolve customer questions that probably would have been unanswered without Salesforce for Twitter.
  • In 2009, we witnessed a seminal moment in a shift to social networking. In July, 2009, Social Networking users surpassed email users. And that is AMAZING. What does it mean? If you go to colleges or high schools, they don’t use email. They look at email as antiquated. They use facebook,twitter, and lots of other social apps. They are logging in multiple times a day. This is the future and this is the way people expect to communicate with others. This is the new norm for communications and will only get more powerful over time.
  • The problem with traditional platforms and traditional development models is that they have been too expensive, too complex, and too slow. IT organizations typically have to assemble and configure complex hardware and software stacks before any development can begin on their apps. Then after spending a lot of time writing and fixing a lot of code to build apps, IT has to deploy the app, run load tests, monitor, tune, and scale the app server and database, maintain the infrastructure, and regression test every app any time anything changes in any layer of the software stack.
  • With, there’s no infrastructure to manage and no complicated software stack to install, patch, or tune. We take care of all of the infrastructure for you, with world-class security, scalability, and reliability. also gives you a development platform for building enterprise apps. Building custom apps on is much faster than traditional platforms, because we provide pre-built business app components like database, programmable UI and Logic, workflow, analytics, and more. Plus with Chatter, every app you build on can be a social app, with pre-built collaboration components like profiles, feeds, and content sharing.
  • Because you don’t have to worry about servers, software stacks, or building a lot of these common application components yourself, you can build apps much faster and less expensively on IDC recently conducted and in-depth, groundbreaking study that found customers were able to build apps about 5 times faster at about half the cost compared to traditional platforms like .NET. IDC interviewed many customers as the basis for this study and compared what they could do on vs. other platforms like .net. You can see the time and cost savings here from the IDC study. Without having to develop and maintain infrastructure and reinvent the wheel and build analytics, mobile, search and other enterprise components, offers a better way.
  • Qualcomm, is an $11B developer of advanced wireless technologies and mobile data solutions. They make the chips in most of our mobile phones. Their customers are 10’s of thousands of engineers who use their specs to design mobile phones and related products. These engineers need access to lots of technical engineering documents and they expect it to be available on the web in real time. Before salesforce, Qualcomm had over 40 servers and 11 databases that tried to deliver this information to the engineers. It was a mess with no single place for engineers to go and an IT nightmare to manage. Qualcomm chose the Service Cloud. It took one person less than a week to customize, brand, and fully deploy the Salesforce Customer Portal, retiring the 40 servers and 11 databases. Qualcomm also uses the Service Cloud contact center capabilities for case assignment, escalation, and auto response email capabilities. * Salesforce saved Qualcomm an estimated $100,000 in hardware costs to upgrade existing, out-of-date on-premise solutions. * The lack of hardware to buy and maintain allowed Qualcomm to reduce required support staff by 60%. * Qualcomm increased their user adoption over 100%, from 30-40% to over 80%. Changes are now deployed in minutes, hours and days compared to a 10 to12 week release cycle for the previous on-premise CRM system--and with no system downtime required.
  • With, it’s easy to build Cloud 2 apps. Any app you build on can immediately take advantage of Chatter for collaboration, with no code required. Just select what applications and data (objects and fields) you want to enable, and updates to them will automatically appear in followers’ feeds, so your users will never again miss important information they need to be successful.
  • customers are building 4 different type of custom apps. First, many customers are looking to migrate from legacy platforms such as lotus notes, to a modern web-based platform. For example, Lawson , the 2 nd largest convenience store chain r eplaced 5000 seats of Lotus Notes, and built a new store development app 5x faster at 1/5 the cost . Second, customers are also building departmental apps like the franchise management app that Haagen Dazs built for a 1/3 of the cost of .Net. Third, customers are building public web sites that capture or deliver data such as leads, products, or events. For example, Starbucks built a website to manage volunteering events and pledges in 4 weeks , and it easily scaled to 2M visitors in the first week after their CEO announced the campaign on the Oprah show.. And finally, customers are building all types of apps to manage a range of business processes such as medical research at Genentech. Genentech used their medical research app to add 11 new products in just 12 months.
  • Liberating latent value from legacy IT assets is often the most unexpected bonus of the cloud – and it’s “the” cloud, one common cloud with many interoperable services, not multiple clouds representing separate silos
  • Peter Coffee 20100923 AITP Cloud Computing Con SD

    1. 1. The Evolution of SaaS Moving Beyond Migration… …to Build the Enterprise <ul><li>Peter Coffee </li></ul><ul><li>Head of Platform Research </li></ul><ul><li> inc. </li></ul>
    2. 2. Safe Harbor 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, 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 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-Q for the most recent fiscal quarter: this document 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., inc. assumes no obligation and does not intend to update these forward-looking statements.
    3. 3. <ul><li>“ Why aren’t enterprise apps as easy to use as” </li></ul><ul><ul><li>Straightforward to discover and evaluate </li></ul></ul><ul><ul><li>Negligible cost of adoption </li></ul></ul><ul><ul><li>Non-disruptive upgrades </li></ul></ul><ul><ul><li>World-class infrastructure robustness and security for all </li></ul></ul><ul><li>Myths require busting </li></ul><ul><ul><li>Multi-tenancy does not preclude top-tier security </li></ul></ul><ul><ul><li>Packaged services can still enable deep customization </li></ul></ul><ul><ul><li>Remotely operated systems can integrate with legacy assets </li></ul></ul><ul><ul><li>Individual customers can still accept or defer upgrades at will </li></ul></ul><ul><li>These cloud truths are still “new news” </li></ul><ul><ul><li>If you have to buy new hardware , it is not a cloud </li></ul></ul><ul><ul><li>If you have to install, patch, and disruptively update software , it is not a cloud </li></ul></ul>The First Decade of SaaS
    4. 4. Trust Attainment Enables Cloud Adoption <ul><li>Robust infrastructure security </li></ul><ul><li>Rigorous operational security </li></ul><ul><li>Granular customer controls </li></ul><ul><ul><li>Role-based privilege sets </li></ul></ul><ul><ul><li>Convenient access control & audit </li></ul></ul><ul><li>“Sum of all fears” scrutiny and response </li></ul><ul><ul><li>Multi-tenancy reduces opportunities for error </li></ul></ul><ul><ul><li>The most demanding customer sets the bar </li></ul></ul>
    5. 5. Coherent Code Base and Managed Infrastructure Your Clicks Your Code Metadata representations: Rigorously partitioned data, logic and customizations for multiple customers Build strategic applications Customize any aspect Upgrade when convenient Preserve IP control The Metadata Model: Cloud + Customization User Interface Logic Database
    6. 6. Cloud Integration: No Need for Rip/Replace Mash-ups from Web and AppExchange Native Desktop Connectors Integration Partner Ecosystem Developer Toolkits Native ERP Connectors
    7. 7. “ If you take the ideal world, everything is done as a service: computing, storage, software and operations.” “ The risk for enterprises that don't start a SaaS migration strategy soon is that their IT organizational structures will be a competitive disadvantage.” Geir Ramleth CIO, Bechtel Corp.
    8. 8. Cloud Computing Shrinks IT’s Carbon Footprint On-premise Software CO 2 Emissions (grams CO 2 per transaction) 0.2 0.03 1.35 * “Cloud Computing Emissions Comparison,”  Nucleus Research, 2 Sept 2010 Watt-hrs per transaction statistics converted to CO 2 / transaction by using U.S. carbon output ratios computed by region by EPA
    9. 9. <ul><li>If we talk about cost reduction, the most I can do for you is cut your IT spending by 100%. Then we’re done. </li></ul><ul><li>If we talk about value creation, I can keep on delivering value with no upper bound. That’s a much more interesting conversation. </li></ul>The Cloud’s Lower Cost is Compelling. So What? If you want cheap IT, go ahead. You won’t be in business next year. Your competitors will do projects with attractive ROI, while you spend less, and you won’t be competitive in service or performance. Demand curves slope downwards. Better apps at lower cost will expand demand and grow total IT spending. And that’s OK.
    10. 10. 1999: Why isn’t all enterprise software like ? 2010: Why isn’t all enterprise software like Facebook ?
    11. 11. <ul><li>True Cloud Storage as a Service </li></ul><ul><ul><li>No one can sell you a hard drive that tells you when your data’s out of date </li></ul></ul><ul><ul><li>In the cloud, your storage can be self-cleaning </li></ul></ul><ul><li>True Cloud Customer Support as a Service </li></ul><ul><ul><li>No one can build you a call center that knows everything your customers know…and everything they’re saying to each other about you </li></ul></ul><ul><ul><li>In the cloud, your service center can embrace and interact with social nets </li></ul></ul><ul><li>True Cloud Application Platform as a Service </li></ul><ul><ul><li>No one can give you a local development platform that automatically deploys your applications onto every new portable device </li></ul></ul><ul><ul><li>In the cloud, apps can acquire new features and support new devices at zero cost to the developer </li></ul></ul>Let’s Not Settle for Parity
    12. 12. Addressing Data Quality: A Cloud that Maintains the Cloud Largest, Most Accurate Database: 22 million+ B2B contacts Massive, Engaged Community: 1.2 million+ community adds 36,000 new contacts per day Real-time Updates: Community updates 12,000 contacts per day
    13. 13. Today’s Contact Centers Can’t Connect with Customers But customers have moved to Cloud 2: Built for this: Contact Center Community Sites
    14. 14. Bank of America Joins the Twitter Conversation Responds in real-time to customer tweets (average 1,100 tweets per day ) 6,000 Twitter followers Personalized Service : each twitter agent has a picture and name Operationalizes Twitter as formal customer service channel David Knapp Customer Service Bank of America
    15. 15. 2009: Social Networking Surpasses Email Email Users Social Networking Users Global Users (MM) Social Networking Users Surpass Email Users on 7/09 Source: Morgan Stanley Internet Mobile Report, December 2009 Data is for unique, monthly users of social networking and email usage.
    16. 16. <ul><li>It’s hard to add security to a tool that shares by default </li></ul><ul><li>It’s possible to add social tools to a proven trust model </li></ul>Enterprise Clouds Enable Secure Communities
    17. 17. Social Business Processes <ul><li>Collaborative process creation & maintenance </li></ul><ul><li>Best practice sharing </li></ul><ul><li>Integration with feeds and other social channels </li></ul><ul><li>Social process monitoring </li></ul>Steve Wood. Great – I can help with the case escalation by linking in the Apple Escalation Process . New process created: iPad Tier 1 Support Process (Goals: Run time, 5 min) Andrew Leigh. I need to create a new customer service process for the iPad, can you guys help? Varadarajan Rajaram. Yes, I know this product well – there are a bunch of solutions I can build into this process.
    18. 18. Real-Time Device Interactions <ul><li>Instant updates, not limited by human speed or attention </li></ul><ul><li>Effective integration of hardware speed & human judgment </li></ul><ul><li>The next new application opportunity </li></ul>public String CloudThoughts{ get; set;} Mike Leach,
    19. 19. Traditional Platforms Are Too Expensive, Complicated & Slow Too Expensive Install and Integrate Stack Configure Software Write and Test Lots of Code Deploy and Load Test Monitor and Tune Patch and Regression Test 1 2 3 4 5 6 Too Complicated Too Slow
    20. 20. High-Function APIs: a Better Way to Build Cloud Apps
    21. 21. Measured Results: Far Superior to Process Migration 2009 IDC Research Report Savings with Staffing 76%-85% Development Time 76% Time to Make Changes 75% Total Cost 54%
    22. 22. Qualcomm Opens New Support Channel In One Week Mark Silber IT Systems Architect $11B Chip Manufacturer 20,000 customers (engineers) that require 24/7 support Deployed first customer portal in 1 week Retired 40 servers and 11 databases Reduced IT CRM support costs by 60% 100,000 self-service portal users
    23. 23. New Capabilities Added At Will… …Not When the Capital Budget Allows Chatter Platform Profiles Check to Enable Feeds Status Updates Groups Apps Document Sharing Social Apps
    24. 24. Customers Building Cloud Apps: 5X Faster at Half the Cost Franchise Management App 1/3 the cost of .Net Departmental Apps Medical Research Apps Added 11 New Products in 12 Months Business Process Apps Data-Driven Web Sites Community Web Site 10 Million Users Built in 3 Weeks Replaced 5,000 Notes Seats 5X Faster 1/5 the Cost Lotus Notes Replacement
    25. 25. Yes, There Is a True Cloud Mash-ups from Web and AppExchange Native Desktop Connectors Native ERP Connectors
    27. 27. Peter Coffee Head of Platform Research [email_address] Q & A?