Robin Daniels Presentation / CloudViews.Org - Cloud Computing Conference 2009

How Cloud Computing Lets Businesses Focus on What Matters
Robin Daniels
Salesforce.com

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 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. 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 annual report on Form 10-K for the fiscal year ended January 31, 2009 and our other filings. These documents 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. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

We’re in the Middle of a Computing Revolution Forecast for software: cloudy. 1960’s Mainframe 1980’s Client/server Today Enterprise Cloud Computing

Applications are Moving to the Cloud Today Cloud Computing Applications 1960’s Mainframe 1980’s Client/server

Platforms are Moving to the Cloud 1960’s Mainframe 1980’s Client/server Today Cloud Computing Platforms

The Cloud Computing Model Yefim Natis, VP, Distinguished Analyst Multi-Tenant: Pay As You Go: Elastic: Automatic Upgrades: No Capital Expenditure Low Operating Expenditure Scales With You No Painful Disruptions Great for times like these.

Companies Are Rapidly Adopting the Cloud 1,500,000+ Subscribers Fiscal Year 127,000 227,000 393,000 1,100,000 900,000 646,000 76,000 53,000 30,000 Paying Customers 55,000+

Large Enterprises are Adopting the Cloud Too Not Just SME’s ~3,200 Number of Subscribers ~3,000 ~3,500 ~4,000 ~2,900 ~4,000 ~21,000 ~20,000 ~ 11,000 ~65,000 ~5,000 ~30,000 ~5,000 ~25,000 ~9,000 Enterprise Std Enterprise Std ~5,000 Customer Satisfaction 95%

The Real-Time Cloud Multitenant Kernel ISO 27001 Certified Security Proven, Real-Time Scalability Real-Time Sandbox Environments Salesforce to Salesforce Proven Real-Time Integration Proven Reliability Real-Time Upgrades 3 Global Data Centers & Disaster Recovery Real-Time Query Optimizer Real-Time Transparent System Status

The Real-Time Cloud Multitenant Kernel Unlimited Real-Time Customization Granular Security & Sharing Real-Time Workflow & Approvals Programmable User Interface Real-Time Mobile Deployment Real-Time Analytics 750+ Integrated Applications ISO 27001 Certified Security Proven, Real-Time Scalability Programmable Cloud Logic Real-Time Sandbox Environments Integrated Content Library Real-Time Web Sites Salesforce to Salesforce Proven Real-Time Integration Proven Reliability Real-Time Upgrades 3 Global Data Centers & Disaster Recovery Real-Time Query Optimizer Real-Time Transparent System Status

So what’s in it for Businesses?

Time to Value
Capital Expense
Operational Costs
Technical Resources
“ 53% of software projects cost 189% of original estimate” Standish Group, Chaos Report 2007 Every IT Project Should be Evaluated by 4 Criteria

1. Cloud Computing Reduces Time To Value Cloud Computing is Faster in Two Ways Application Agility Initial Project Rollout Time Design Development Testing Training Deployment Change requests Upgrades Additional users New functionality Governance 18% 72% 80%

Hardware
Facilities
Storage
License Fees
Stack Integration
The biggest financial benefit of cloud computing, particularly in these capital-constrained times, is avoiding taking on debt and keeping cash in the company longer . “ ” Forrester, “Talking To Your CFO About Cloud Computing,” October 29, 2008 On Premise Development Requires Significant Up Front Costs 2. Cloud Computing Eliminates Capital Expense On Premise Development

Hardware
Facilities
Storage
License Fees
Stack Integration
If a project uses a cloud-based service provider, then the CFO avoids writing a big check upfront. Instead, checks are written monthly or quarterly, in alignment with the return. “ ” Forrester, “Talking To Your CFO About Cloud Computing,” October 29, 2008 Cloud Computing Requires No Upfront Costs 2. Cloud Computing Eliminates Capital Expense

3. Cloud Computing Minimizes Operational Expenses Pay For Innovation, Not Infrastructure ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Disaster Recovery Additional Storage Hardware Administration Data Center Administration Facilities Management Patches / Bug Fixes Performance Tuning Upgrades On Premise Development Innovation / Development

A 5 Year TCO Comparison On Premise vs. Cloud Computing Application Lifecycles Force.com provides a “40-50% cost savings” over Java Development” - Independent 2008 research study comparing Force.com to Java development Project 1000 Users Global Deployment High Security High Performance 5 Year TCO Comparison $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2009 2010 2011 2012 2013 2014 Cost Cost of Software SFDC Cost

4. Cloud Computing Requires Fewer Technical Resources Two ways to save your developers time Leverage the business to expand teams Developers Tech Ops Business Owners Developers Make existing technical resources more productive Developers Tech Ops Developers Tech Ops Business users can create apps Rapid prototyping Better centralized governance Production-quality testing environment Integrated development IDE Easy skills-transition from Java Tech Ops

Force.com is Cloud Computing for the Enterprise YOU get to focus on innovation We do Infrastructure Services We do Application Services We do Operations Services Build your data model Build your business logic Build your user interface Network Storage Operating System Database App Server Web Server Data Center Security Sharing Integration Customization Web Services API Multi-Language Authentication Availability Monitoring Patch Mgmt Upgrades Backup NOC

Next We’re Opening Up The Cloud Now in Developer Preview Lower Costs & Increase Speed of Development Deploy Your Apps Instantly to the Web Connect Your Apps with Your Website Collect CRM Data from the Web 1,600+ Developer Sites

Customers Are Building Apps Faster Than Ever IT Governance and change control Less than 4 weeks Product Management Less than 10 Weeks Franchise Management 60 days Recruiting and Training Application Less than 2 months Sample Management Application Less than 4 months Cinema Asset Management Less than 8 Weeks Claims Management Application Less than 10 weeks Franchise and Training Management Less than 6 months

EA Runs Their Business in the Gaming Cloud Gabrielle Toledano Customer Hero

Starbucks Builds Pledge 5 Site Fast on Force.com

THANK YOU [email_address] Twitter: twitter.com/robin_daniels

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Robin Daniels Presentation / CloudViews.Org - Cloud Computing Conference 2009

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Robin Daniels Presentation / CloudViews.Org - Cloud Computing Conference 2009 Presentation Transcript