Enabling Innovators for the Era of the Social Enterprise: presented to Triple Helix 9 conference at Stanford University to address the opportunities for expanding the Silicon Valley model to emerging economies

1. From Valleys to Clouds
Enabling Innovators for the Era of
the Social Enterprise
Peter Coffee
VP / Head of Platform Research
salesforce.com inc.

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3. Drucker Had It Right
 ―The typical large organization, twenty years hence,
will be composed largely of specialists who direct and
discipline their own performance through organized
feedback from colleagues and customers.‖
 ―It will be a knowledge-based organization.‖
Peter F. Drucker, in The New Realities
…in 1989

4. Barriers to Becoming Knowledge-Based
 Complex legacy IT portfolios have made the simplest
data integration an overwhelming task
 Cumbersome, brittle integrations have demoted end
users to information consumers
 Path of least resistance
has over-emphasized
rear-view mirror views of
historical data

5. Connections Now Draw the World‟s Map
(Lines Represent Number • Distance of Facebook „Friend‟ Links)

6. People Crave Social Tools

7. Whose Knowledge Is It, Anyway?
 Innovation ―goes rogue‖ when:
– Products are open-source and/or
highly configurable/customizable
– Some users have incentive to innovate
– Some innovators have incentive to share
– Diffusion of innovations is inexpensive
 The user conversation will take place
– Users can readily find each other
– Users turn to each other for affirmation
as well as for assistance
– You can host the conversation

8. What Role for “The Crowd”?
 Sift more dirt, find more gold
– With modern machines/methods, gold mines are
viable at 1 g. Au / ton of ore
– Costs of collecting/sifting the crowdstream
continue to fall
 The oddly opposite models:
– Delphi Method: people with wildly varying knowledge, exposed to each other‘s
opinions, produce consensus surpassing the sum of the parts
– Open-Source Method: Individual contributions, appropriately incented (if only with
ego rewards), yield cost-effective combined results
 Can the crowd survive its success?
– ―Even mild social influence can undermine the wisdom of crowd effect.‖
Proceedings of the National Academy of Sciences, 16 May 2011
wired.com/wiredscience/2011/05/wisdom-of-crowds-decline
– Vital elements: diversity, independence, decentralization, aggregation

9. The Customer Becomes the Product
“ Ideas has beenofan unbelievable home run. We areStarbucks
it―the voice the customer is totally present at
loving
in a brand new way, thanks to the Force.com platform. ”
Chris Bruzzo
CTO, Starbucks

10. „Social‟ is a model, not an application
 Collaborative
process creation &
maintenance
 Best practice
sharing Andrew Leigh.
 Integration with
New process created: iPad Tier 1 Support
feeds and other Process (Goals: Run time, 5 min)
social channels
Steve Wood.
 Social process Process
Apple Escalation
monitoring Varadarajan Rajaram.

11. Products Become Participants
 Instant updates, not
limited by human
speed or attention
 Effective integration
of hardware speed
& human judgment
 The next new
application
opportunity
public String CloudThoughts{ get; set;}
Mike Leach, www.embracingthecloud.com

12. Cloud Connection 
Margin Growth and Brand Differentiation
―One automaker‘s chief financial officer told
Sun COO Jonathan Schwartz that his company
could give a car away for free, if it could charge
a customer $220 per month for a subscription.‖
www.zdnet.com/news/sun-puts-java-into-gear-for-cars/136886
―CE device margins are razor thin, and the promise
of maintaining an always-on connection to the
customer after the point of sale is mighty enticing.
With a connected device, there are all kinds of new
opportunities to present offers and services that can
generate ongoing monthly revenue. Simply put,
connected devices make connected customers.‖
Richard Schwartz, President and CEO, Macheen

13. All Cloud Models Simplify Something
Cloud Platform for Cloud Platform for
Servers as a Service Consumer Apps Enterprise Apps
UI as a Service
Logic as a Service
Python or Java Server Integration as a Service
VM VM VM VM Non-Relational Database Full Relational Database
Infrastructure as a Service Infrastructure as a Service Infrastructure as a Service
Virtualization enables Basic Web frameworks Pure APIs shift focus to
scale (but preserves or lower ISVs‘ barriers to problem, not mechanism
compounds complexity) market entry

14. True Clouds Enable Transforming Scalability
Constituent Engagement Portal
Concept to Live in Three Weeks
Zero to Peak in One Hour
134,077 Registered Users 10M Page views
1.4 M Votes 1.8TB Volume
52,015 Ideas 39.3M Hits

15. True Clouds Enable Outcomes Assessment
50% reduction in time spent on paperwork,
reporting and reimbursement
Eliminated 2-month wait for County reports
Real-time tracking of individual client
outcomes (treatments adjusted accordingly)
Self-audits and tracking of clinician, program,
and division productivity
Automated reimbursement process though
auto-population of funder forms
Bob Bennett
CEO
Family Service Agency
of San Francisco

16. The Metadata Model: Clouds Can Customize
Build strategic applications
Your Clicks
User Interface
Customize any aspect
Logic Upgrade when convenient
Your Code
Database Preserve IP control
Metadata representations:
Rigorously partitioned data, logic and customizations for multiple customers
Coherent Code Base and Managed Infrastructure

17. Common Code Base Eases Upgrades
A Better Upgrade Path
for Everyone ―Windows 7 is now at
22.31%, up 1.44 points from
Customers decide when (or December. However, XP
whether) to adopt new features and Vista are losing share
faster than Windows 7 can
Customizations move forward gain (XP is down to 55.26%
without regression or breakage and Vista down to 11.66%)‖
Vendor resources are not Tom‘s Guide, 3 Feb 2011
diluted by need to support
legacy versions of products

18. Click to Connect
User Interface Your Clicks
Logic
Your Code
Database
Selectively exposed data, logic and customizations
Coherent Code Base and Managed Infrastructure

19. Cloud Platforms Can Offer Developer Leverage
A path of least resistance to high-function applications

20. Cloud leverage empowers innovators
Rapid iPad Deployment for Patient Prescreening
One developer with no prior
training built a mobile app in just 4
days
Deploying to Medical Directors,
Program Directors in hospitals on
iPhones and iPads
Eliminates paper forms, workflow
cuts response time by more than
60%
―We‘re blown away by how we built a mobile Cut processing time from 18 hrs to
healthcare application on Force.com with one less than 60 min
person in just 4 days…
The same app built in .NET would have taken
over 3 months‖

21. Cloud Development: reinvented, not just relocated
 Nucleus Research analyzed Force.com deployments: found
average 4.9 times faster development (range 1.5x-10x)
versus Java or .Net
– Custom objects
– Administrative tools
– Workflow engine
– Pre-tested platform
 Galorath Inc. compared developers‘ Force.com productivity to
Java development
– Requirements definition time reduced 25% due to rapid prototyping
– Testing effort reduced by (typically) more than 10%
– Development productivity of new code 5x greater
– Overall project cost 30-40% less
 CustomerSat sampled more than 1,100 Force.com development
teams during summer 2009
– Average experience: 4 applications deployed to date
– Average project cost savings: 48%
– Average project acceleration: 5.1x

22. Attackers no longer need to find you…
…because your network comes to them

23. Threat Doesn‟t Need an Outside Enemy
"There are five common factors that lead
to the compromise of database
information":
• ignorance
• poor password management
• rampant account sharing
• unfettered access to data
• excessive portability of data
DarkReading.com, October 2009

24. Bottom-Up Design to be “Shared and Secure”
Apply Data
Login… Authenticate… Security Rules… View Filtered Content
 Password security policies
 Rich Sharing Rules
 User Profiles
 SSO/2-factor solutions

25. Every Act an Invocation: Granular Privilege

26. Data Stewardship is a Practice, not a Technology
 Data protection regulations
– Where can it be stored?
– Who‘s allowed to see it?
 Peel the onion of ‗compliance‘
– Anonymize/encrypt/partition specific fields
– Cloud disciplines can enhance auditability
• Role-based privilege assignment
• Actions taken using granted privileges
 Looking at the laws is not enough
– USA PATRIOT Act inspires concern from global
collaborators who may fear a multi-tenant ‗dragnet‘
– Court rulings encourage escrow/isolation of targeted data
when a multi-tenant system is involved

27. Trust is Earned by Transparency
Full Public Disclosure
Live System Status
Security Best Practices
Historical Performance
Continual Improvement
• salesforce.com systems
achieved 99.99% of
planned availability during
YE April 2011
• 31 billion transactions in
Amazon
Apr‘11, up 57% from 2010
• Maintenance shortening: Google
―5 minute upgrade‖

28. Trust is Earned by Transparency

29. Trust is Essential to Cloud Adoption
 Robust infrastructure security
 Rigorous operational security
 Granular customer controls
– Role-based privilege sets
– Convenient access control & audit
 ―Sum of all fears‖ scrutiny and response
– Multi-tenancy reduces opportunities for error
– The most demanding customer sets the bar

30. Cloud Integration: Not an All-or-Nothing Choice
Mash-ups from Native Integration Developer
Web and Desktop Partner Toolkits
AppExchange Connectors Ecosystem

31. Cloud Integration: New Roles for Knowledge
“This is process lite. It gives my business users what they want,
a unique app for each sales team, fundamentally reflecting their own personality.
“And yes, I get a single standard SAP integration. It’s a terrific success.”
–CIO, Fortune 500 Firm
Deployments
Sales 4 Months
Distributors (Oct ‘06- Feb ‘07)
EMEA 1 Month
(Dec ‘06)
Inside Sales
AFS Global 5 Months
(Dec ‘06 – May ‘07)
Sales
SAP Back-end FLPR Field 2Q07
Integration Sales
Customized for
Diverse Sales Groups

32. ―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. www.networkworld.com/news/2008/102908-bechtel.html

33. Cloud Computing:
Most Sustainable IT Model in the World
Energy Efficiency Comparison:
Transactions, not Cycles or Servers
Carbon Footprint
(g. CO2 / transaction)
95% 64%
lower lower
carbon carbon
intensity intensity
On-Premise Private Cloud
green.salesforce.com
*Estimated avoided carbon emissions from salesforce.com customers running applications on the multi-tenant cloud
as opposed to running on-premise servers. Actual carbon emissions savings could vary. Based on WSP comparison
model and research commissioned by salesforce.com, March 2011.

34. The Cloud‟s Lower Cost is Compelling. So What?
If we talk about cost reduction, the most I can do for you is cut your
IT spending by 100%. Then we‟re done.
If we talk about value creation, I can keep on delivering value with no
upper bound. That‟s a much more interesting conversation.
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.

35. Don‟t Settle for “Same Function, Lower Cost”
True Cloud Storage as a Service
– No one can sell you a hard drive that tells you when your data‘s out of date
– In the cloud, your storage can be self-cleaning
True Cloud Customer Support as a Service
– No one can build you a call center that knows everything your customers
know…and everything they‘re saying to each other about you
– In the cloud, your service center can interact with social nets
True Cloud Application Platform as a Service
– No one can give you a local development platform that automatically deploys
your applications onto every new portable device
– In the cloud, apps can acquire new features and support new devices at zero
cost to the developer

36. Nothing Happens Overnight; Nothing Goes Away
‘50s ‘60s ‘70s ‘80s ‘90s ‟00s
Windows
IBM PC Windows XP
PC MITS Altair 3.x/9x/NT
Macintosh & Mac OS X
& Linux 1.0
DEC DEC Sun Sun/AMD
Sun/ILM
Mini Workstations x86 Servers
PDP-8 VAX 11/780 Render Farms
& Servers Niagara CPUs
Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

37. ‘50s ‘60s ‘70s ‘80s ‘90s ‟00s
Cloud Apps
Grid
& X Window
Computing
Platforms
Windows
IBM PC Windows XP
PC MITS Altair 3.x/9x/NT
Macintosh & Mac OS X
& Linux 1.0
DEC DEC
Sun Sun/ILM
Sun/AMD
Mini Workstations x86 Servers
PDP-8 VAX 11/780 Render Farms
& Servers Niagara CPUs
Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

38. Cloud Credibility: Option of First Resort

39. “Do it yourself” vs. “Who you gonna call?”
Potential benefits from
transitioning to a public
cloud computing
environment:
• Staff Specialization
• Platform Strength
• Resource Availability
• Backup and Recovery
• Mobile Endpoints
• Data Concentration

40. The Rising Floor of “Easy”
 Bulldozers greatly reduce the jobs for ditch-diggers…but
they greatly increase the number of jobs for landscape
architects and golf-course designers
 Old IT:
– Make capacity decisions once a year, then keep the pedal to the
metal and wish that you had more
– Make security decisions based on perimeters…and hope for the best
 New IT:
– Make capacity decisions every hour—or less—and continually
evaluate business value of every marginal cycle
– Make security decisions based on relationships…and monitor use of
the privileges you grant

41. The Future Has Already Happened
 When a bomb explodes, it takes some time before you see
anything happen…
…but the energy has been released
 Three fundamental energies
are in play:
– Connectivity
• Capacity in place
• Protocols and power management
– Mobility
• Devices drive cloud demands
– Social interaction model
• Already more popular than email

42. Peter Coffee
VP / Head of Platform Research
pcoffee@salesforce.com Q&A?
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twitter.com/petercoffee
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