Xabier Ormazabal	<br />Senior Manager, Product Marketing<br />
Safe Harbor<br />Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may c...
The Cloud Computing Model<br />Multi-tenant<br />Automatic Upgrades<br />Pay-as-you-go<br />Real-time<br />5 Times Faster<...
Quarterly Revenue ($M)<br />Revenue through fiscal year ended 1/31/10<br />Salesforce proved the model works<br />$1.4 Bil...
Today: A Marketplace of Enterprise Clouds<br />Cloud Provider<br />Enterprise Customers<br />
The Tipping Point<br />2010: #1 Strategic Technology Trend for CIOs<br />2012: 20% of Businesses will own no IT Assets <br />
Strong SaaS Momentum Across All CategoriesSaaS ISVs positioned for multiple opportunities<br />Worldwide SaaS Revenue<br /...
Fastest Way to Build Apps<br />
What is the AppExchange?1,000+ Cloud Computing Apps and Services<br />Your Choice <br />Of 1000+ Partner Applications <br ...
Four Ways Customers Use AppExchange AppsPre-integrated apps. Install & Deploy in Clicks.<br />Free & Low Cost Add-Ons<br /...
Certified Consulting Partners on AppExchange200+ Expert Solution Providers<br />Types of Service Listings<br /><ul><li> Sy...
 Custom App Development
 Consulting
 Training</li></ul>Listing Highlights<br /><ul><li>  Customer Sat Ratings & Reviews
  Areas of Expertise
  # Projects delivered
  # of Certified Developers
  Languages and Regions Supported</li></ul>PARTNER SUCCESS<br />
SaaS Model Demands High-Velocity Operations<br />Sales<br />Cycle<br />R&D<br />Cycle<br />Delivery<br />Cycle<br />Custom...
Seamless Upgrades Enable Continuous Innovation<br />Painless, No Hassle Upgrades <br />32 Major Releases<br />Every Custom...
19<br />A New Business Model Is Needed<br />New Rule<br />Old Rule<br />New Rule<br />Old Rule<br />Design for Intuitivene...
Create a 24/7 Demand Generation MachineWhat’s your strategy for lead acquisition, pipeline and loyalty?<br />Loyalty<br />...
OLD WORLD<br />NEW WORLD<br />C<br />22<br />PR 2.0: Build Awareness Across All ChannelsTraditional Analysts vs.Web 2.0 Un...
23<br />We Live in an Evaluation EconomyHow do you exploit a community of evaluators?<br />
24<br />Evaluators Demand a Free Trial<br />
There’s no such thing as a lost customerRe-Acquisition is all about the offer<br />
Where is the Cloud Heading?<br />
2009:  Social Networking Surpasses Email<br />Social NetworkingUsers Surpass <br />Email Users on 7/09<br />Global Users (...
Next Generation Devices Changing How We Access the Internet<br />Smartphones<br />Annual Unit Shipments (MM)<br />Notebook...
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1. five habits of highly successful clouds

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  • Any purchase decisions customer make should be made based on currently available technology.
  • - Cloud Computing seems to be everywhere now in the IT press - where did the clouds come from? 11 yrs ago we asked &quot;why can&apos;t enterprise software be more like amazon.com?&quot;. Why do I have to buy, install and manage hardware and software. Why can&apos;t we connect to a mass-scale Internet platform to handle that, and we use it to run our business. That was the vision 11 years ago which we pioneered and evangelised.
  • - Salesforce has been a pioneer in the industry and over that time we&apos;ve grown to 1bn+ revenues to prove the market. 72,500 global customers. Proving the market for Enterprise Cloud Computing
  • - What&apos;s the immediate future look like? For every CIO - cloud is #1 technology imperative (ranked by gartner). From CIOs that we&apos;re speaking to, the question for them is how to they build a transition plan. They want to use Cloud Computing to innovate, create new applications that make them more competitive, and help them get closer to their customers. Surprisingly though - Gartner estimate that in 2 years, 1 in 5 organisations will have made that transition and own on IT assets.
  • - Cloud Computing seems to be everywhere now in the IT press - where did the clouds come from? 11 yrs ago we asked &quot;why can&apos;t enterprise software be more like amazon.com?&quot;. Why do I have to buy, install and manage hardware and software. Why can&apos;t we connect to a mass-scale Internet platform to handle that, and we use it to run our business. That was the vision 11 years ago which we pioneered and evangelised.
  • Salesforce.com has built the functionality of Cloud 2 into our applications and our platform.Our applications include our Sales Cloud 2 application for managing all your sales information; our Service Cloud 2 application for managing customers service and support; our Chatter collaboration application for collaborating across the enterprise, and our Force.com platform for building your own custom cloud applications.All of these applications run on our Force.com platform that lets you build and customize apps 5X faster and half the cost of traditional platforms. Force.com includes all the enterprise components you need to build enterprise apps, plus the collaboration components to build Cloud 2 apps.And of course, it all runs on our trusted cloud infrastructure, the most secure, reliable and high performing infrastructure in the industry.
  • - Cloud Computing seems to be everywhere now in the IT press - where did the clouds come from? 11 yrs ago we asked &quot;why can&apos;t enterprise software be more like amazon.com?&quot;. Why do I have to buy, install and manage hardware and software. Why can&apos;t we connect to a mass-scale Internet platform to handle that, and we use it to run our business. That was the vision 11 years ago which we pioneered and evangelised.
  • - Cloud Computing seems to be everywhere now in the IT press - where did the clouds come from? 11 yrs ago we asked &quot;why can&apos;t enterprise software be more like amazon.com?&quot;. Why do I have to buy, install and manage hardware and software. Why can&apos;t we connect to a mass-scale Internet platform to handle that, and we use it to run our business. That was the vision 11 years ago which we pioneered and evangelised.
  • - You can forget about upgrade headaches. You automatically get infrastructure, platform and application upgrades on our system.- All 55,000+ of our customers are running on the latest version of our product.- This allows us to do 3 – 4 major releases each year, making your apps faster, more secure and more reliable while also giving you new features at an unprecedented rate.
  • - Cloud Computing seems to be everywhere now in the IT press - where did the clouds come from? 11 yrs ago we asked &quot;why can&apos;t enterprise software be more like amazon.com?&quot;. Why do I have to buy, install and manage hardware and software. Why can&apos;t we connect to a mass-scale Internet platform to handle that, and we use it to run our business. That was the vision 11 years ago which we pioneered and evangelised.
  • - Cloud Computing seems to be everywhere now in the IT press - where did the clouds come from? 11 yrs ago we asked &quot;why can&apos;t enterprise software be more like amazon.com?&quot;. Why do I have to buy, install and manage hardware and software. Why can&apos;t we connect to a mass-scale Internet platform to handle that, and we use it to run our business. That was the vision 11 years ago which we pioneered and evangelised.
  • - We&apos;re also seeing the shift in devices. Over the next 10 years, next generation devices like the iPad are going to transform how we access the internet. The desktop metaphor is dying. Today in the UK more than 50% of Mobile Internet traffic is on Facebook.
  • - Once again, we&apos;re seeing the Consumer Web shaping our expections of Business software.
  • - For the last 10 years, the proposition of Cloud Computing has been Low Cost, Fast to deploy and Easy to use
  • - Over the next 10 years, we think Cloud Computing is going to shift to focus on these 3 areas: Make applications and people more collaborative. Support the New Devices so that we can access information from any source on any device. And get updates in real-time on what&apos;s important to you - the same way that Facebook brings insights to you in Real Time
  • - We think these things coming together: Cloud Computing, The Influence of the Social Web, and the shift in smart phones, all working together, are where the industry is heading. Our first move into this space is our new service called Chatter. It&apos;ll give organisations for the first time a way to collaborate across their business in real time, and allow people to get real-time updates not just from people, but get alerts on documents they are following, and from information in salesforce and other applications. So for example, as a Sales manager, i can follow the key deals for this month and get alerts in my newsfeed as they progess.
  • - We think these things coming together: Cloud Computing, The Influence of the Social Web, and the shift in smart phones, all working together, are where the industry is heading. Our first move into this space is our new service called Chatter. It&apos;ll give organisations for the first time a way to collaborate across their business in real time, and allow people to get real-time updates not just from people, but get alerts on documents they are following, and from information in salesforce and other applications. So for example, as a Sales manager, i can follow the key deals for this month and get alerts in my newsfeed as they progess.
  • 1. five habits of highly successful clouds

    1. 1. Xabier Ormazabal <br />Senior Manager, Product Marketing<br />
    2. 2. Safe Harbor<br />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 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, 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.<br />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, 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 non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our quarterly report on Form 10-K for the fiscal year ended January 31, 2010 and our other filings. These documents are available on the SEC Filings section of the Investor Information section of our Web site. <br />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. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.<br />
    3. 3.
    4. 4. The Cloud Computing Model<br />Multi-tenant<br />Automatic Upgrades<br />Pay-as-you-go<br />Real-time<br />5 Times Faster<br />Half the Cost<br />IDC White Paper sponsored by Salesforce.com: “Force.com Cloud Platform Drives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009<br />
    5. 5. Quarterly Revenue ($M)<br />Revenue through fiscal year ended 1/31/10<br />Salesforce proved the model works<br />$1.4 Billion +<br />Annual Revenue Run Rate<br />72,500+<br />PayingCustomers<br />
    6. 6. Today: A Marketplace of Enterprise Clouds<br />Cloud Provider<br />Enterprise Customers<br />
    7. 7. The Tipping Point<br />2010: #1 Strategic Technology Trend for CIOs<br />2012: 20% of Businesses will own no IT Assets <br />
    8. 8. Strong SaaS Momentum Across All CategoriesSaaS ISVs positioned for multiple opportunities<br />Worldwide SaaS Revenue<br />“By 2012, more than 66% of independent software vendors (ISVs) will offer some of their applications optionally or exclusively as SaaS.” <br />Over 20% CAGR!<br />Source: Gartner<br />8<br />
    9. 9.
    10. 10. Fastest Way to Build Apps<br />
    11. 11.
    12. 12.
    13. 13. What is the AppExchange?1,000+ Cloud Computing Apps and Services<br />Your Choice <br />Of 1000+ Partner Applications <br />& Services<br />Trusted Apps<br />Reviewed by Salesforce.com<br />View, Try, Install<br />Best-in-class CRM & Non-CRM Apps<br />Services Offered<br />System Integrators & Consultants<br />Application Developers<br />Training<br />895 Apps and counting…<br />237 Services and counting…<br />
    14. 14. Four Ways Customers Use AppExchange AppsPre-integrated apps. Install & Deploy in Clicks.<br />Free & Low Cost Add-Ons<br />Beyond CRM<br />CRM Extensions<br />Starter Templates<br />Integration Connectors<br />Mass Email<br />Marketing Automation<br />Incentive Management<br />Account Hierarchy<br />Time-Off Manager<br />Project & Issue Mgmt<br />Expense Tracker<br />Agile Project Mgt<br />IT Help Desk<br />Finance & Accounting<br />Consulting Services<br />Mass Update & Delete Adoption Dashboards<br />Browser Toolbars<br />Reports<br />
    15. 15. Certified Consulting Partners on AppExchange200+ Expert Solution Providers<br />Types of Service Listings<br /><ul><li> Systems Integration
    16. 16. Custom App Development
    17. 17. Consulting
    18. 18. Training</li></ul>Listing Highlights<br /><ul><li> Customer Sat Ratings & Reviews
    19. 19. Areas of Expertise
    20. 20. # Projects delivered
    21. 21. # of Certified Developers
    22. 22. Languages and Regions Supported</li></ul>PARTNER SUCCESS<br />
    23. 23.
    24. 24. SaaS Model Demands High-Velocity Operations<br />Sales<br />Cycle<br />R&D<br />Cycle<br />Delivery<br />Cycle<br />Customer <br />Acquired<br />Solution<br />Delivered<br />TRADITIONAL SOFTWARE<br />Go-to-Market<br />6 months<br />12 months<br />18 months<br />24 months<br />SaaS<br />R&D<br />Cycle<br />Sales<br />Cycle<br />Delivery<br />Cycle<br />17<br />
    25. 25. Seamless Upgrades Enable Continuous Innovation<br />Painless, No Hassle Upgrades <br />32 Major Releases<br />Every Customization & Integration Automatically Upgraded<br />Always have the Latest Innovations & Technology<br />
    26. 26. 19<br />A New Business Model Is Needed<br />New Rule<br />Old Rule<br />New Rule<br />Old Rule<br />Design for Intuitiveness<br />Design for Complexity<br />Product Design<br />Design for Intuitiveness<br />Design for Complexity<br />Product Design<br />Reliability, Security, Scalability<br />Portability, Multi<br />-<br />Platform<br />R&D Investment<br />Reliability, Security, Scalability<br />Portability, Multi<br />-<br />Platform<br />R&D Investment<br />3<br />-<br />4 Months<br />1<br />-<br />3 Years<br />Product Cycles<br />3<br />-<br />4 Months<br />1<br />-<br />3 Years<br />Product Cycles<br />Integrated<br />Segmented<br />Customer Experience<br />Integrated<br />Segmented / Fragmented<br />Customer Experience<br />Go after all segments<br />Pick and Focus<br />Customer Segment<br />Go after all segments<br />Pick and Focus<br />Customer Segment<br />Inbound <br />Outbound<br />Customer Acquisition Model<br />Inbound <br />Outbound<br />Customer Acquisition Model<br />Community<br />Analysts<br />Community<br />Analysts<br />Customer Evaluation Model<br />Web, Branding<br />Direct Mail<br />Marketing Investment<br />Web, Branding<br />Direct Mail<br />Marketing Investment<br />2<br />-<br />or 3<br />-<br />Tier<br />Field Sales<br />Sales Model<br />2<br />-<br />or 3<br />-<br />Tier<br />Field Sales<br />Sales Model<br />Transactional<br />Few, Large Deals<br />Sales Mix<br />Transactional<br />Few, Large Deals<br />Sales Mix<br />
    27. 27.
    28. 28. Create a 24/7 Demand Generation MachineWhat’s your strategy for lead acquisition, pipeline and loyalty?<br />Loyalty<br />Purchase<br />Awareness<br />Integrated Campaigns<br />Generating Buzz<br />Free Trials & Reviews<br />21<br />
    29. 29. OLD WORLD<br />NEW WORLD<br />C<br />22<br />PR 2.0: Build Awareness Across All ChannelsTraditional Analysts vs.Web 2.0 Universe<br />
    30. 30. 23<br />We Live in an Evaluation EconomyHow do you exploit a community of evaluators?<br />
    31. 31. 24<br />Evaluators Demand a Free Trial<br />
    32. 32. There’s no such thing as a lost customerRe-Acquisition is all about the offer<br />
    33. 33.
    34. 34. Where is the Cloud Heading?<br />
    35. 35. 2009: Social Networking Surpasses Email<br />Social NetworkingUsers Surpass <br />Email Users on 7/09<br />Global Users (MM)<br />Social Networking Users<br />Email Users<br />Source: Morgan Stanley Internet Mobile Report, December 2009 <br />
    36. 36. Next Generation Devices Changing How We Access the Internet<br />Smartphones<br />Annual Unit Shipments (MM)<br />Notebook PCs<br />Desktop<br />2005<br />2006<br />2007<br />2008<br />2009E<br />2010E<br />2011E<br />2012E<br />2013E<br />Source: Morgan Stanley Internet Mobile Report, December 2009 <br />
    37. 37. 2010: Why isn’t all Enterprise Software like Facebook?<br />
    38. 38. Fundamental Shift in Cloud Computing<br />
    39. 39. Future of Software<br />1. Multi-Tenant, Shared Systems<br />2. Trusted Reliability and Performance<br />3. Democratization of Enterprise Apps<br />4. Metadata-driven Customization<br />5. Mash-ups<br />6. Web Service-based Integration<br />7. Development as a Service<br />8. Multi-tenant Development <br /> Platform<br />9. Application Exchanges<br />10.Multi-Device Delivery<br />Cloud 1: Computing in the 2000s<br />Low Cost . Fast . Easy to Use<br />
    40. 40. Cloud 2: Computing for the Next Ten Years<br />Collaboration<br />New Devices<br />Real-time<br />Social Platform<br />Social Data <br />Social Apps <br />Social Content<br />
    41. 41. Easy to Use: <br />Works like Facebook<br />Choose the people, documents, and apps to follow <br />Real-time Updates:<br />Trusted: <br />Secure, private application<br />Introducing Chatter: Real-time Enterprise Collaboration<br />The Conversation Starts Here.<br />
    42. 42. Five Habits of Highly Effective Clouds<br />Platformfor Business Productivity<br />BuildinganEcosystem<br />Cloud computingbusinessmodel<br />Building a new sales machine<br />Deliveringongoingvalue<br />
    43. 43. xormazabal@salesforce.comtwitter: xormazabal<br />

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