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Possible; Inevitable; Essential: The Social and Mobile Cloud

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Closing keynote delivered at SoTeC 2012 in Long Beach, California

Closing keynote delivered at SoTeC 2012 in Long Beach, California

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  • 1. Possible; Inevitable; Essential The Social and Mobile Cloud @PeterCoffee Peter Coffee VP/CTO & Head of Platform Research salesforce.com inc.
  • 2. Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-lookingstatements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions In Other Words:proves incorrect, the results of salesforce.com, 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, includingany projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plansof management for future operations, statements of belief, any statements concerning new, planned, or upgraded services ortechnology developments and customer contracts or use of our services. Everything ThatThe risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering newfunctionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results andrate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible mergers You See Hereand 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, ourlimited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further informationon potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report and on our Form10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filings section of the Investor is RealInformation section of our Web site.Any unreleased services or features referenced in this or other press releases or public statements are not currently available andmay not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based uponfeatures that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements. @PeterCoffee
  • 3. Social Revolution 150M conversations per day 2009 2010 2011 2012Sources: Twitter, Visible Technologies @PeterCoffee
  • 4. Social Revolution:Social Networking Surpasses EmailSo what? 1.1 Social Users billion social users Email Users2007 2008 2009 2010 2011 Source: Comscore, June 2011 @PeterCoffee
  • 5. Social Networks: More Than Just ‘Sum of the People’(Arcs Represent Number • Distance of Facebook ‘Friend’ Links) @PeterCoffee Pop quiz: where is Beijing?
  • 6. The New Corporate ‘Home Page’ 123% Fortune 100 Facebook Fan Growth 100 Facebook Activity growth in social Fortune Fortune 100 Web Traffic Activity customers Fortune 100 Web Growth “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 negativeJun 2010 growth in unique visits over the past year... 40% Dec 2011 exhibited higher traffic toWebtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; their Facebook pageGoogle Social Media Analysis Study compared to their website.” @PeterCoffee
  • 7. This is Not an Opportunity to Lead(It’s a Requirement to Catch Up With the Customer)• 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 competitor research – Customers tell the world when they’re not happy• Companies need new organizations & processes – Power to address issues pushed to edge of organization – Collaborative response available on demand @PeterCoffee
  • 8. The Social Customer and Financial Services• Old Customers: – Pension fund managers choose investment vehicles/strategies – Mainstream publications report non-real-time data, highlight trends – Brokers identify opportunities / handle transactions / charge fees• Social Customers: – Defined-contribution plans: every employee a planner – Real-time information available to all – Self-service analysis and trading• Financial Services differentiate with: – Timely content and rich planning aids – Superior data feeds and trading tools @PeterCoffee
  • 9. The General Case: ‘Connected’ Revolution Medicine: sensor-equipped patients & homes reduce office & hospital visits Education: students in external settings learn by practice @PeterCoffee
  • 10. ‘Social’ Changes What “IT People” Do• Old IT departments allocated scarcity: “In the 1960s, programmers were paid under $10 per hour; computer time was measured in hundreds of dollars per hour.” - ZDNet• Tomorrow’s IT departments must orchestrate abundance: “What happens when cloud services offer nearly unlimited power, essentially on demand, solely constrained by what were willing to pay?” - CloudBlog• Old IT departments strived to achieve control: “The IBM Tivoli OMEGAMON family provides a comprehensive performance and availability solution for monitoring, analyzing, and managing mainframe environments” - software.ibm.com• Tomorrow’s IT departments must exploit (and contain) chaos: “In more than half the companies surveyed, business leaders other than the CIO control at least 30% of the money spent on IT.” - CIO Insight @PeterCoffee
  • 11. Soft Environments, Smart DevicesChanging the Balance of PowerSoft displays adaptive to Solo Driver and Driver/Co-pilot modesurban versus highway, with radically different content deliverywork versus leisure, etc. opportunities and expectations Integration with portable devices: better, and improving more quickly, than built-in systems @PeterCoffee
  • 12. Deconstructing the DashboardFundamental Trends in Technology, Lifestyle, and Marketplace• Microsoft has the right trademark: Surface - “Special-purpose objects…replaced by apps on tablets…” - “In 1938 Buckminster Fuller coined the term ephemeralization to describe the increasing tendency of physical machinery to be replaced by what we would now call software… No one would want to underestimate that force.” – Paul Graham, “Tablets” (December 2010)• Corning, not Apple, shows us how it will look - Don’t think of “tablet” as an iPad-sized device. Think of it as a model of interaction (See the video at http://www.youtube.com/watch?v=6Cf7IL_eZ38)  Every surface able to render information  Every surface able to mediate function  Every environment connected with resources and relationships• “It’s not a phone. It replaces your phone.”– Paul Graham - Who you are: representation of identity - Where you are: location awareness and environment monitoring - What you’re doing: motion awareness and calendar connection @PeterCoffee
  • 13. The Tablet Revolution is Under-Hyped @PeterCoffee
  • 14. Redefining “Customer”…as Social Actor Customers are… • the cars they drive • the things they do • the ways they live • the people they know @PeterCoffee
  • 15. Business is Social Enterprise Adoption of Social Networking 70% adoption “ $1.3 Trillion in value can be unlocked through social technologies. ” 2008 2009 2010 2011 2012 Source: 2012 McKinsey Global Institute Study: “The Social Economy” @PeterCoffee
  • 16. ‘Social’ ≠ ‘Distracted’ ‘Social’ is a model, not an app – Aware of context – Shaped by interests – Driven by events All Force.com applications are socially enabled by Chatter – Old apps added new behaviors – Social behaviors pervasive, not isolated in social silo – Automation  scalability @PeterCoffee
  • 17. Verbs for Your Nouns: Your Industry Here @PeterCoffee
  • 18. Verbs for Your Nouns: Your Industry Here Employee Social Social Network Profile Public Social Network Collaborate Connect Work SOCIALLY CONNECTED Engage ENTERPRISE Extend Listen Sell Market Service Customer Social Network @PeterCoffee
  • 19. Social Success – By Every Measure +32% +29% Sales Productivity Innovation +34% +34% Customer Employee Satisfaction Satisfaction Your Team; Your Customers +37% +31% Campaign Employee Effectiveness ProductivitySource: 2012 Third-party survey of 5,500 salesforce.com customers @PeterCoffee
  • 20. ‘Social’ Changes What “IT Skills” Are• Traditional skills remain necessary – but aren’t sufficient “The old way of looking at IT is gathering requirements, buying the equipment and turning it on… I’m looking for people who can take us to the next technological level.” - Senad Hadzic, CIO, KaMin LLC• Linkage & architecture understanding is key “While there are still roles requiring deep technical experience, for most corporate IT workers their role will shift from implementation to architecting.” - Patrick Gray, President, Prevoyance• Leadership needs more than technical mastery “Innovative thinking and leadership abilities are the two top attributes wanted in a CIO from 362 business executives surveyed... higher than ‘deep experience in running IT ops’” - Diamond Management “Digital IQ” Survey @PeterCoffee
  • 21. The social revolutionis a trust revolution @PeterCoffee
  • 22. Granular Privilege + Ecosystem Options @PeterCoffee
  • 23. All Assets Secured, All the Time “When hundreds or even thousands of other businesses are using exactly the same operational infrastructure, all of them…benefit from the hardening of the infrastructure after any of them come in contact with a newly detected threat.” @PeterCoffee
  • 24. All Assets Secured, All the Time “Despite resource sharing, multitenancy will often improve security… “Our research and analysis indicates that multitenancy is not a less secure model — quite the opposite!” @PeterCoffee
  • 25. Trust is Earned by Transparency @PeterCoffee
  • 26. Cloud Efficiencies Address Governance Demands• “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 • Notification of Risk to Personal Data Act • Personal Data Privacy and Security Act • Data Accountability and Trust Act • Social Security 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 @PeterCoffee
  • 27. Continuing Availability Improvement Spring ’11 Summer ’11 Winter ’12 “Great work reducing the pain of the quarterly upgrade so dramatically. The difference to our business between 2 or 3 minutes of downtime and 2 or 3 hours can’t be overstated.” @PeterCoffee
  • 28. Continuing Availability Improvement5 Winter ’124 Index of Availability (Two 9s = 0)3 Summer ’11 Spring ’11210 Two 9s 2/2011 3/2011 4/2011 Three 9s 5/2011 6/2011 7/2011 Four 9s 8/2011 9/2011 10/2011 Five 9s “Great work reducing the pain of the quarterly upgrade so dramatically. The difference to our business between 2 or 3 minutes of downtime and 2 or 3 hours can’t be overstated.” @PeterCoffee
  • 29. 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 – PCI DSS Compliance Level 1; FIPS 199 LOW and MODERATE – Comprehensive, continuing audit/certification @PeterCoffee
  • 30. ‘Social’ Changes How “IT” Leads– Trust Dynamic threat environments; rising community awareness and expectations– Governance Global markets; narrow perspectives; ‘crown jewel’ data– Mobility Productivity improvement; BYOD challenges– Social Interaction External communities; internal collaboration; high-velocity operations– Talent Development and Technology Change Where will we get tomorrow’s programmers? How will practices change? “In 2011, there were still five unemployed people for every job available. Yet American businesses in 2011 reported more than three million job openings they have been unable to fill because of a skills shortage.” – Edward Luce, Financial Times @PeterCoffee
  • 31. Let’s Make One Thing Perfectly Clear: “The Cloud” is not merely “The Web”This is “Web-enabled”:• You can find it• You can use it• You maintain it… …or not @PeterCoffee
  • 32. Let’s Make One Thing Perfectly Clear: “The Cloud” is not merely “The Web”This is “Cloud-based”:• Maintained by others• Reflective/introspective• Consistently improving @PeterCoffee
  • 33. Customer Success in True Clouds On spec, on time, on budget deployment of a fully tested, proven cloud capability: trusted security and global availability Modern applications, driven by user feedback for continuing improvement – with “clicks, not code” customization “No Software”: what’s paid for is function, not code. Continuous scrutiny of operations, maintenance of facilities, and world-class security are literally “part of the service” Multiple upgrades per year: no disruption, shrinking deployment times, backward compatibility to previous API releases “The future is already here – just not evenly distributed” - William Gibson @PeterCoffee
  • 34. Thank You petercoffeef acebook.com/peter.coffee pcoffee@salesforce.com @PeterCoffee