Cloud Computing: From Promise to Reality <ul><li>Peter Coffee </li></ul><ul><li>VP / Head of Platform Research </li></ul><...
Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contai...
All Cloud Models Simplify  Something Cloud Platform for Consumer Apps Infrastructure as a Service Non-Relational Database ...
Cloud leverage empowers innovators Rapid iPad Deployment for Patient Prescreening One developer with no prior training bui...
Coherent Code Base and Managed Infrastructure Selectively exposed  data, logic and customizations Click to Connect Your Cl...
Cloud Platforms Can Offer Developer Leverage A path of least resistance to  high-function  applications > 1 Billion Lines ...
Cloud Development: reinvented, not just relocated <ul><li>Nucleus Research analyzed Force.com deployments: found average  ...
<ul><li>Password security policies </li></ul><ul><li>Rich Sharing Rules </li></ul><ul><li>User Profiles </li></ul><ul><li>...
<ul><li>Continual Improvement </li></ul><ul><li>salesforce.com systems achieved 99.99% of planned availability during YE A...
Cloud Integration: Not an All-or-Nothing Choice Mash-ups from Web and AppExchange Native Desktop Connectors Integration Pa...
<ul><li>If we talk about cost reduction, the most I can do for you is cut your IT spending by 100%. Then we’re done. </li>...
<ul><li>True Cloud Storage as a Service </li></ul><ul><ul><li>No one can sell you a hard drive that tells you when your da...
Email Users Social Networking Users Global Users (MM) Social Networking  Users Surpass Email Users on 7/09 Source:  Morgan...
<ul><li>Where are key players already having conversations? </li></ul><ul><li>What facilities exist for tapping that strea...
Think Beyond ‘Document’: a Process Perspective <ul><li>Collaborative process creation & maintenance </li></ul><ul><li>Best...
Think Beyond ‘Printer’: Devices as Participants <ul><li>Instant updates, not limited by human speed or attention </li></ul...
Cloud Connection     Margin Growth and Brand Differentiation <ul><li>“ One automaker’s chief financial officer told Sun C...
<ul><li>It’s hard to add security to a tool that shares by default </li></ul><ul><li>It’s  possible  to add social tools t...
Best Practices and Pitfalls <ul><ul><li>Adopting the Cloud does  not  mean starting over </li></ul></ul><ul><ul><ul><li>Re...
<ul><li>You Can’t Ride a Unicorn </li></ul><ul><ul><li>It’s often said that CIOs “prefer a private cloud” </li></ul></ul><...
Peter Coffee VP / Head of Platform Research [email_address] facebook.com/peter.coffee twitter.com/petercoffee cloudblog.sa...
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Toshiba Fast Forward Keynote re Cloud and Business Machines

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The use of massively scalable services, sometimes called "the Cloud", offers a more nimble, efficient and technically capable approach to delivery of new applications as well as superior performance of familiar functions such as storage – but what does it take to make the reality live up to the promise? What are the implications of the cloud for IT, and how does it affect the way you print and manage documents? Peter Coffee, Vice President and Head of of Platform Research at cloud pioneer salesforce.com inc., discusses the business fundamentals – not just the enabling technologies – of cloud computing, outlining best practices for extending IT initiatives and offering guidance on avoiding common cloud pitfalls.

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  • We won’t be doing any “road maps” today. Everything we’re here to discuss with you is either ready for use, or at a minimum ready for your evaluation, right now.
  • Challenge RehabCare, the leading provider of physical rehabilitation program management in over 1,200 healthcare facilities throughout the United States, needed to automate its patient prescreening process. To increase patient referral acceptance rates, the company CEO asked IT to eliminate the use of paper forms and reduce the amount of time it takes to pre-screen a patient from 5 hours to 2 hours. Patient-facing employees who work remotely at healthcare facilities required mobile access to data. RehabCare also wanted to replace an on-premise Sage SalesLogix system used by sales with a cloud-based solution to reduce maintenance and infrastructure costs. Solution After attending a Dreamforce user conference, the CIO of RehabCare told his developers about the Force.com platform. A .NET developer at the company downloaded the free Force.com toolkit and built a mobile patient prescreening application--without training--on the Force.com platform in just 4 days. RehabCare deployed the application on 400 Apple iPhones with Salesforce CRM Mobile, replacing the 7-page paper form formerly used to pre-screen patients. Employees located in healthcare facilities use the iPhones and Salesforce CRM Mobile to capture patient information. Because Salesforce CRM Mobile works online and offline, vital information is available even without a broadband connection. Completed forms automatically trigger Force.com workflows including emails to medical directors who review and approve patient referrals. Reminder emails for approvals are automatically triggered as the 2 hour deadline approaches. RehabCare replaced its Sage SalesLogix system with Salesforce CRM at the request of its sales people. The company deployed Salesforce CRM Unlimited Edition in just X days with help from a salesforce.com consulting partner X. Results With Salesforce CRM Mobile, the company reduced the amount of time it takes to prescreen a patient by 60 percent, resulting in a 150% increase in productivity. By building its mobile application on Force.com instead of in .NET, RehabCare cut development time from 3 months to just 4 days. The entire company has embraced Salesforce CRM and Salesforce CRM Mobile. The cloud-computing model eliminates maintenance and additional infrastructure costs. With Force.com workflows, RehabCare responds to the majority of referrals within its 2 hour timeframe.
  • We move the complete freedom of a custom logic capability up into a metadata layer, uniquely combining the power of custom logic with the economy and robustness of a full multi-tenant environment. Someday, others will do likewise: for now, Force.com is unique in delivering this combination of characteristics.
  • Moving away from the idea of a familiar development model, “only cloudier”, has allowed the Force.com developer to elevate the starting point for application construction
  • Measurable productivity improvement, independently estimated by three separate studies, is the result
  • When you design from Day 1 for massive sharing, you build in a representation of data ownership from the bottom up instead of trying to construct a perimeter
  • Partitioning of data enables compliance with regulation; further, liberating the latent value of legacy IT assets is often the most unexpected bonus of the cloud – and it’s “the” cloud, one common cloud with many interoperable services, not multiple clouds representing separate silos
  • Toshiba Fast Forward Keynote re Cloud and Business Machines

    1. 1. Cloud Computing: From Promise to Reality <ul><li>Peter Coffee </li></ul><ul><li>VP / Head of Platform Research </li></ul><ul><li>salesforce.com inc. </li></ul>
    2. 2. 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, risks associated with possible mergers and 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, 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 and on our Form 10-Q for the most recent fiscal quarter: these documents and others 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. In Other Words: Everything That You See Here is Real
    3. 3. All Cloud Models Simplify Something Cloud Platform for Consumer Apps Infrastructure as a Service Non-Relational Database Python or Java Server Basic Web frameworks lower ISVs’ barriers to market entry Pure APIs invite focus on competitive advantage Cloud Platform for Enterprise Apps Infrastructure as a Service Full Relational Database Integration as a Service Logic as a Service UI as a Service Servers as a Service Infrastructure as a Service Virtualization enables scale (but preserves or compounds complexity) VM VM VM VM
    4. 4. 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% Cut processing time from 18 hrs to less than 60 min “ We’re blown away by how we built a mobile healthcare application on Force.com with one person in just 4 days … The same app built in .NET would have taken over 3 months ”
    5. 5. Coherent Code Base and Managed Infrastructure Selectively exposed data, logic and customizations Click to Connect Your Clicks Your Code User Interface Logic Database Salesforce to Salesforce Sharing
    6. 6. Cloud Platforms Can Offer Developer Leverage A path of least resistance to high-function applications > 1 Billion Lines of Cloud Logic Unlimited Real-Time Customization Granular Security & Sharing 245,000 Workflow Rules and Approvals 312,000 UI Customizations Real-Time Mobile Deployment Real-Time Websites Integrated Content Library Integrated Analytics & Data Quality Integrated Analytics & Data Quality Aids 800+ Integrated Applications Multi-Tenant Kernel Proven Reliability Real-Time Upgrades ISO 27001, SAS 70 Type II Certified Security Proven Scalability (15 billion transactions/Q2) Real-Time Transparent System Status 3 Global Data Centers & Disaster Recovery Proven Real-Time integration Real-Time Sandbox Environments Real-Time Query Optimizer Salesforce to Salesforce Sharing Salesforce to Salesforce Sharing
    7. 7. Cloud Development: reinvented, not just relocated <ul><li>Nucleus Research analyzed Force.com deployments: found average 4.9 times faster development (range 1.5x-10x) versus Java or .Net </li></ul><ul><ul><li>Custom objects </li></ul></ul><ul><ul><li>Administrative tools </li></ul></ul><ul><ul><li>Workflow engine </li></ul></ul><ul><ul><li>Pre-tested platform </li></ul></ul><ul><li>Galorath Inc. compared developers’ Force.com productivity to Java development </li></ul><ul><ul><li>Requirements definition time reduced 25% due to rapid prototyping </li></ul></ul><ul><ul><li>Testing effort reduced by (typically) more than 10% </li></ul></ul><ul><ul><li>Development productivity of new code 5x greater </li></ul></ul><ul><ul><li>Overall project cost 30-40% less </li></ul></ul><ul><li>CustomerSat sampled more than 1,100 Force.com development teams during summer 2009 </li></ul><ul><ul><li>Average experience: 4 applications deployed to date </li></ul></ul><ul><ul><li>Average project cost savings: 48% </li></ul></ul><ul><ul><li>Average project acceleration: 5.1x </li></ul></ul>
    8. 8. <ul><li>Password security policies </li></ul><ul><li>Rich Sharing Rules </li></ul><ul><li>User Profiles </li></ul><ul><li>SSO/2-factor solutions </li></ul>Bottom-Up Design to be “Shared and Secure”
    9. 9. <ul><li>Continual Improvement </li></ul><ul><li>salesforce.com systems achieved 99.99% of planned availability during YE April 2011 </li></ul><ul><li>31 billion transactions in Apr’11, up 57% from 2010 </li></ul><ul><li>Maintenance shortening: “5 minute upgrade” </li></ul>Live System Status Security Best Practices Historical Performance Full Public Disclosure Amazon Google Trust is Earned by Transparency
    10. 10. Cloud Integration: Not an All-or-Nothing Choice Mash-ups from Web and AppExchange Native Desktop Connectors Integration Partner Ecosystem Developer Toolkits
    11. 11. <ul><li>If we talk about cost reduction, the most I can do for you is cut your IT spending by 100%. Then we’re done. </li></ul><ul><li>If we talk about value creation, I can keep on delivering value with no upper bound. That’s a much more interesting conversation. </li></ul>The Cloud’s Lower Cost is Compelling. So What? 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.
    12. 12. <ul><li>True Cloud Storage as a Service </li></ul><ul><ul><li>No one can sell you a hard drive that tells you when your data’s out of date </li></ul></ul><ul><ul><li>In the cloud, your storage can be self-cleaning </li></ul></ul><ul><li>True Cloud Customer Support as a Service </li></ul><ul><ul><li>No one can build you a call center that knows everything your customers know…and everything they’re saying to each other about you </li></ul></ul><ul><ul><li>In the cloud, your service center can interact with social nets </li></ul></ul><ul><li>True Cloud Application Platform as a Service </li></ul><ul><ul><li>No one can give you a local development platform that automatically deploys your applications onto every new portable device </li></ul></ul><ul><ul><li>In the cloud, apps can acquire new features and support new devices… …at zero cost to the developer </li></ul></ul>Don’t Settle for “Same Function, Lower Cost”
    13. 13. Email Users Social Networking Users Global Users (MM) Social Networking Users Surpass Email Users on 7/09 Source: Morgan Stanley Internet Mobile Report, December 2009 Data is for unique, monthly users of social networking and email usage. Users Demand New Application Models
    14. 14. <ul><li>Where are key players already having conversations? </li></ul><ul><li>What facilities exist for tapping that stream? </li></ul><ul><li>What are the cultural norms of that community? </li></ul><ul><li>When should you be present? </li></ul><ul><li>How should you participate? </li></ul><ul><li>Who will represent you? </li></ul><ul><li>How will that process scale? </li></ul><ul><li>What will you learn? </li></ul><ul><li>How will you change? </li></ul>The Map to “Securely Social”
    15. 15. Think Beyond ‘Document’: a Process Perspective <ul><li>Collaborative process creation & maintenance </li></ul><ul><li>Best practice sharing </li></ul><ul><li>Integration with feeds and other social channels </li></ul><ul><li>Social process monitoring </li></ul>Steve Wood. Great – I can help with the case escalation by linking in the Apple Escalation Process . New process created: iPad Tier 1 Support Process (Goals: Run time, 5 min) Andrew Leigh. I need to create a new customer service process for the iPad, can you guys help? Varadarajan Rajaram. Yes, I know this product well – there are a bunch of solutions I can build into this process.
    16. 16. Think Beyond ‘Printer’: Devices as Participants <ul><li>Instant updates, not limited by human speed or attention </li></ul><ul><li>Effective integration of hardware speed & human judgment </li></ul><ul><li>The next new application opportunity </li></ul>public String CloudThoughts{ get; set;} Mike Leach, www.embracingthecloud.com
    17. 17. Cloud Connection  Margin Growth and Brand Differentiation <ul><li>“ 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.” </li></ul><ul><li>www.zdnet.com/news/sun-puts-java-into-gear-for-cars/136886 </li></ul>“ 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
    18. 18. <ul><li>It’s hard to add security to a tool that shares by default </li></ul><ul><li>It’s possible to add social tools to a proven trust model </li></ul>Enterprise Clouds Enable Secure Communities Profiles File Sharing App Updates Groups Status Updates Security & Sharing Model Real-time Analytics Feeds Mobile
    19. 19. Best Practices and Pitfalls <ul><ul><li>Adopting the Cloud does not mean starting over </li></ul></ul><ul><ul><ul><li>Retain what’s working: innovate and add value at Web speed </li></ul></ul></ul><ul><ul><ul><li>Treat the Cloud as a supermarket of services </li></ul></ul></ul><ul><ul><li>Preserving familiar pain is not a measure of success </li></ul></ul><ul><ul><ul><li>Moving existing complexity into the Cloud avoids short-term pain </li></ul></ul></ul><ul><ul><ul><li>Mastering new developer models is a high-return investment </li></ul></ul></ul><ul><ul><li>Don’t apologize for doing what made sense two years ago </li></ul></ul><ul><ul><ul><li>Bandwidth has grown; customizability has grown </li></ul></ul></ul><ul><ul><ul><li>Costs of doing things the old way are skyrocketing </li></ul></ul></ul><ul><ul><li>Don’t settle for consumer Web: demand enterprise cloud </li></ul></ul><ul><ul><ul><li>Expect high availability and robust security </li></ul></ul></ul><ul><ul><ul><li>Spell out details of data ownership and protection </li></ul></ul></ul>
    20. 20. <ul><li>You Can’t Ride a Unicorn </li></ul><ul><ul><li>It’s often said that CIOs “prefer a private cloud” </li></ul></ul><ul><ul><li>If it’s not really a choice, a preference is a fantasy </li></ul></ul><ul><ul><ul><li>The cloud is connection, not isolation </li></ul></ul></ul><ul><ul><ul><li>The cloud is agility, not stagnation </li></ul></ul></ul><ul><li>You Shouldn’t Feed a Minotaur </li></ul><ul><ul><li>Social, mobile and open IT are competitive mandates </li></ul></ul><ul><ul><li>The skills to drive strategic projects are scarce </li></ul></ul><ul><ul><li>Key resources can’t be spared for commodity IT maintenance </li></ul></ul><ul><li>It’s Rude to be Antisocial </li></ul><ul><ul><li>Social tools aren’t merely recreational </li></ul></ul><ul><ul><li>Events should call for attention </li></ul></ul><ul><ul><li>Content should accompany conversations </li></ul></ul><ul><ul><li>Workplace tools shouldn’t constrain contributions </li></ul></ul>Fundamental Truths of True Clouds
    21. 21. Peter Coffee VP / Head of Platform Research [email_address] facebook.com/peter.coffee twitter.com/petercoffee cloudblog.salesforce.com Q & A?

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