Presented by Peter Coffee of salesforce.com to the Platform Strategy Executive Symposium of the MIT Center for Digital Business at the MIT Sloan School of Management, 26 July 2013

1. Future Normal
Why Every IT Trend Points to PaaS
Peter Coffee
VP and Head of Platform Research
salesforce.com inc.

2. 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
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upgraded services or technology developments and customer contracts or use of our services.
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Safe Harbor
In Other Words:
Everything That
You See Here
is Real

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

4. ’50s ’60s ’70s ’80s ’90s ’00s-’10s
Clouds +
Edge
Devices
X Window
Grid
Computing
PC MITS Altair
IBM PC
Macintosh
Windows
3.x/9x/NT
& Linux 1.0
Windows XP/7/8
Mac OS X
Mini
DEC
PDP-8
DEC
VAX 11/780
Sun
Workstations
& Servers
Sun/ILM
Render Farms
Sun/AMD
x86 Servers
Niagara CPUs
Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

5. All new IT will be connected – or ‘cloudy’…
• Since the IBM PC was introduced (Aug.1981 to now)
• Processor speed has risen ~25% per year
• Memory capacity has grown ~40% per year
• Mass storage surging ~50% per year
• Desktop systems are burdened with too much state
• File system technology has not addressed new needs
• Governance falls short of rising demands
• Trends redefine “best practice”
• Bandwidth expansion: ~45% per year
• Processor road maps favor shared machines 
• Data centralization  superior governance
Server CPU sales trends:
Overall, 2011-2015 (TechNavio)
7.1% CAGR
“Contributing to this market growth
is adoption of cloud computing.”
Cloud servers, 2011-15 (IDC)
21% CAGR

6. Coherent Code Base and Managed Infrastructure
Your Clicks
Your Code
User Interface
Logic
Database
Metadata representations:
Rigorously partitioned data, logic and customizations for multiple customers
Build strategic applications
Customize any aspect
Upgrade when convenient
Preserve IP control
…but a Cloud PaaS is more than a migration

7. A PaaS makes upgrades part of the service
> 30 Major Releases
Every Customization &
Integration Automatically
Upgraded
Always have the Latest
Innovations & Technology – or
Defer at Local Option
Painless, No Hassle
Upgrades

8. A PaaS enables a trusted application marketplace
iOS + Android:
100 billion
downloads
> 1,800 apps
> 1,100 partners
> 1.9 M installations
~70% of Fortune 100
using at least one

9. Application stores are the royal road for ISVs
In the past year alone, we’ve seen a 27%
increase in the number of apps developed
on the AppExchange and a 33% increase
in customer installs.
Most of the apps on the AppExchange are
being used and installed regularly. Not only
does a customer install an AppExchange
app every 40 seconds, but 66% of all
AppExchange apps have been installed at
least once in the last 30 days. Even more
impressive, 81% of apps have been
installed at least once in the last 90 days!
Changing the Face of Business One App at a Time
By LEYLA SEKA | Published: JULY 25, 2013

10. “Digital Camera”: every December, it’s still news to someone
“Cloud Computing”: more
use it, fewer ask about it
Novelty of ‘cloud’ is already past…

11. …but ‘cloud’ is the means for what’s now interesting
 Big Data Insights
 Mobile Capability

12. ‘Big Data’ gives the cloud something to do
 Elastic capacity for high peak/average ratios
 Connectivity to real-world, real-time…reality

13. Mobility demands what only clouds can do
 Android and iOS combined market share approaching 2/3
 Windows at ~1/5…and shrinking

14. Multi-device users need decoupling from devices

15. What do you get from
 Patterns in big data
derived from
 Social networks
of people & devices
via
 Ubiquitous, 247
mobile connection?
1+1+1 = Wonders

16. AppRequirement
Install &
Configure Stack
Write Code
Deploy &
Load Test
Monitor &
Tune
Patch &
Regression Test
Only PaaS leverage can keep up
Legacy Stack-Based Process – Wherever it Is
IDC White Paper sponsored by Salesforce.com: “Force.com Cloud Platform Drives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009
Half-life of desktop client turnover is ~10 years (WinXP: 50% market share @ 10th birthday)
Average time to build a custom app with software is ~8 months (IDC)
Since 2009, Qualcomm/Android cycle time has dropped to < 4.5 months
PaaS advantage shrinks development time fivefold
Anything slower  subsetting device features or skipping generations

17. PaaS = development recalibrated, 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

18. “But you’re a proprietary platform: you
make me learn things I can’t use
anywhere else”
– Open APIs enable options
• Run local code and integrate
• Run Java or LAMP on AWS
• Treat PaaS as an adjunct tool for
– Integration of multi-vendor IT
– Access to handheld devices
– Openness is present reality
• Agile deployment for Ruby, Node.js,
Clojure, Java, Python & Scala
• Deploy instantly with git
• Servers, instances, & VMs become
invisible background capabilities
– PaaS leverage is essential
Lock-in is not acceptable

19. Shrinking devices  accelerating product cycles
“The Portable Intelligence
Platform is built on Force.com
cloud computing application
environment.
“The development environment
enables easy integration via
web services with your
company's existing software
platforms (e.g. ERP, CRM,
Finance etc.).
“It is also an ideal environment
for the development for the P.I.
iPad, Mobile and Developer
APIs.”
www.portable-intelligence.com

20. Michael Koster, Open Source Internet of Things
www.meetup.com/The-Open-Source-Internet-Of-Things-Silicon-Valley/
APIs evolve;
ecosystems emerge
Connection depends on abstraction

21. Mash-ups from
Web and
AppExchange
Native
Desktop
Connectors
Integration Tools
AppExchange Apps
ERP
Any System
Finance
Systems of Record
Systems of
Engagement
Connection is not rip/replace

22. The general case: ‘connected’ revolution
“Through a cloud-based computing model, all this healthcare
information is easily and instantly delivered from one end to another
with little fuss and without being tied down by the heavy costs of
investing in the installations of complicated healthcare software and
technology infrastructure and of being burdened by the costs of
security breaches.”
Obamacare's Gift to Tech: Cloud Computing
TheStreet.com, 19 July 2013
“The flipped classroom has become increasingly popular lately
because there are so many new technologies that make out-of-
classroom content creation a little bit easier,” notes Chris Millet,
assistant director of Education Technology Services at Penn State
University. “And there are drop-dead-simple technologies that keep
the flow of idea generation and exchange moving inside the
classroom to support active learning.”
6 Expert Tips for Flipping the Classroom
CampusTechnology.com, 23 January 2013

23. Connected computing leaves the desk behind
 “Desktop metaphor” is 25 years old
– Xerox…
– Apple…
– Microsoft…
…but today,
1/3 of U.S.
adults own
at least one
tablet…
…and usually don’t use it at a desk

24. It’s time to aim higher
 1970s: front-panel switches
– Think about memory and storage
– 1st gen operating system: “Load my program”
 1980s: command lines
– Think about programs and files
– 2nd gen operating system: “EDIT MY_FILE”
 1990s: desktop metaphor
– Think about ‘documents’ like spreadsheets
– 3rd gen OS: double-click an icon
 It’s time for the next generation
– A platform to think about…the customer

25. What’s PaaS is prologue – to what’s to come

26. Q&A?
@petercoffee
linkedin.com/in/petercoffee
f facebook.com/peter.coffee
pcoffee@salesforce.com