Dreamforce 2008 : Transforming IT Success with Agile Development Processes

Transforming IT Success with Agile Development Processes Kirsten O. Wolberg, salesforce.com Steve Greene, salesforce.com Nicola Dourambeis, salesforce.com Track: IT Executive

Safe Harbor Statement “ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates. Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com /investor . Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Steve Greene Sr. Director, Tools & Agile Development

Agenda

Challenges of growth at salesforce.com

Overview of Agile Methodology

Transformation Results

Best Practices in IT

Executive Perspective

Q&A

History

Lack of Visibility

Resource Bottlenecks

Unpredictable completion of projects or initiatives

Lack of responsiveness, lack of team alignment on priorities

Infrequent Customer Feedback

2000 2001 2002 2003 2004 2005 2006 Features Delivered per Team Days between Major Releases

What did we do about it?

What is ADM? ADM (Adaptive Delivery Methodology) is an Agile discipline that is specific to salesforce.com. It employs Scrum project management framework, adopts certain extreme programming practices and is based on lean principles.

What is ADM?

Simple

Self-organized, empowered teams

What is ADM?

Time-boxed, 30-day sprints

Daily, Verbal Communication

Potentially “production quality” every 30 days

Transparency

Transformation Results 2000 2001 2002 2003 2004 2005 2006 2007 Features Delivered per Team Days between Major Releases

I knew we needed radical change to get us back on track to regular releases and agile delivered. ” Parker Harris Founder and Executive Vice President, Technology salesforce.com “

Nicola Dourambeis Sr. Program Manager, Agile Development

Moving ADM to IT Same problems, same results?

Too much work, too many priorities

Lack of visibility on progress

Difficulty resourcing projects and skill set gaps

Lack of predictability

Late feedback from internal customers

Project Based Organization People Projects

Self-organized Scrum Teams (x-functional dedicated) Projects Prioritized Backlogs

Time-boxing & Iterative Delivery

All teams employ a two or four week time-box

Cultural change:

Teams deliver early and often

Minimum Market Feature Set

Smallest amount of functionality that provides the greatest new value

Allow usage to define new features built

Early Customer Feedback

Customers embedded in teams

Early user acceptance testing

Sprint Reviews

Scrumforce built on Force.com

Kirsten O. Wolberg Chief Information Officer

Agile in IT at salesforce.com

Benefits

ADM Transformation

Roll-out

Lessons

Learned

The Future is Here – Apply what you’ve learned

ADM provides competitive advantage with predictability, visibility and greater throughput

Large scale organizational transformations can accelerate ROI

Power of Force.com paired with ADM can produce immediate and dramatic results

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Kirsten O. Wolberg Chief Information Officer Nicola Dourambeis Sr. Program Manager, Agile Development QUESTION & ANSWER SESSION Steve Greene Sr. Director, Tools & Agile Development