This document discusses enterprise cloud computing and its benefits. It argues that cloud computing is inevitable for enterprises as it provides immediate value with lower risks and predictable costs compared to on-premise operations. The cloud allows deep customization while providing a coherent and resilient environment. It also enables powerful connections and integration between applications and data without requiring a rip-and-replace approach. Security is addressed through the cloud without excuses.

1. Enterprise Cloud Computing:
Immediate, Urgent, Inevitable
Peter Coffee
Director of Platform Research, salesforce.com inc.
16 March 2010
Session 26

2. 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
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interest rates.
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documents are available in the SEC Filings section under Investor Information 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.
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3. IT’s Had Some Very Bad Years
Global IT spending estimated down 5.2% during 2009
Spending won’t return to 2008 level until 2012
Half of CIOs will see zero growth or further cuts this year
– Gartner (informationweek.com, 26 Oct.)
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4. 4

5. 100% Cloud Cover?
5

6. “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
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7. The Cloud as a Multi-Product Marketplace
Platform as a Service PaaS as Enterprise
“Servers as a Service”
(PaaS) for the Application Framework
Inquiring Developer
Virtual
Servers Programmable
Cloud Logic
Programmable User
Interface
Virtual
Servers Python/Java
Virtual
Application Server Real-Time Workflow Integrated Content
Servers & Approvals Library
Database as a Service Database as a Service Unlimited Real-Time
Customization
Granular Security &
Sharing
Infrastructure as a Service Infrastructure as a Service Infrastructure as a Service
~Familiar Developer Model β Offering Supports Large-Scale SaaS
Rapid Scalability Innovative Technology Deep-Dyed Multitenancy
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8. What it Means to Promise “The Cloud”
Moving toward an ideal: “Zero, One, Infinity”*
0 On-premise infrastructure
Acquisition cost
Adoption cost
Support cost
1 Coherent and resilient environment – not a brittle “software stack”
∞ Scalability in response to changing need
Integratability/Interoperability with legacy assets and other services
Customizability/Programmability from data, through logic,
up into the user interface without compromising robust multi-tenancy
* From The Jargon File: “Allow none of foo, exactly one of foo, or any number of foo”
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9. Faster Value; Lower Risk; Predictable Cost
On-Premise Operations: Cloud Computing:
53% of software projects cost Average 49% investment recovery
189% of original estimate1 within 10 Months2
Fixed Costs and Variable Cost Aligned with
Excess Operating Business Value
Expenses
Value
Buying Function,
Value
not Infrastructure
Time
Minimal
Initial Cost
Upgrade Expense &
Up-front Capital Opportunity Costs
Expense & Delay
1 Standish Group, Chaos Report 2006
2 Third-Party
CustomerSat Research on 4,165 Salesforce.com
customers, February 2008
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10. Enterprise Clouds: Deep Customization
Build strategic applications
Your Clicks
User Interface
Customize any aspect
Logic Upgrade when convenient
Your Code
Database Your IP under your control
Metadata representations:
Rigorously partitioned data, logic and customizations for multiple customers
Coherent Code Base and Managed Infrastructure
Coherent Code Base and Managed Infrastructure
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11. Enterprise Clouds: Powerful Connections
Build strategic applications
Your Clicks
User Interface
Customize any aspect
Logic Upgrade when convenient
Your Code
Database Build vital communities
Metadata representations:
Selectively shared data, logic and customizations for multiple customers
Coherent Code Base and Managed Infrastructure
Coherent Code Base and Managed Infrastructure
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12. Cloud Integration: No Need for Rip/Replace
Mash-ups from Native Integration Developer
Native ERP
Web and Desktop Partner Toolkits
Connectors
AppExchange Connectors Ecosystem
12

13. Integration in Practice
Customer Master
Invoicing/Billing Master
Order Master
Pricing Master
Product Master
Cast Iron Integration Appliance
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14. Cloud Security: No Need for Excuses
Facility Security Network Security Platform Security
• 24x365 on site security • Fault tolerant external firewall • SSL data encryption
• Biometric readers, man traps • Intrusion detection systems • Optional strict password policies
• Anonymous exterior • Best practices secure systems mgmt • SAS 70 Type II & SysTrust Certification
• Silent alarm • 3rd party vulnerability assessments • Security certifications from Fortune 50
• CCTV financial services customers
• Motion detection • May 2008: ISO 27001 Certification
• N+1 infrastructure
“There are some strong technical security arguments in favor
of Cloud Computing…” (Craig Balding, Fortune 500 security practitioner)
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15. Transparency Surpassing Enterprise Norms
Full Public Disclosure
Live System Status
Security Best Practices
Historical Performance
May-July 2009
• 99.997% of planned
availability
• Continually narrower
maintenance windows Amazon
Google
15

16. Real-World Results: Financial Services
• The Phoenix Companies sought a new CRM solution with flexibility, ease of use,
mobile accessibility, low-cost modification capabilities, minimal user training
requirements, and simplified integration with other apps.
• Changeover to Salesforce CRM took less than two months. Working with
salesforce.com partner OKERE (now part of Fujitsu Consulting), Phoenix used the
Force.com platform to create customizations for contracts and underwriting.
• Using the Force.com API, Phoenix integrated several legacy systems with
Salesforce CRM to provide consolidated, real-time access to information.
• The Salesforce CRM implementation cost the company less than one-fourth of the
project’s original budget.
• By streamlining communication between field and inside sales within Salesforce
CRM, Phoenix has reduced phone and email inefficiencies, boosted productivity,
and, in 2005, increased life insurance sales by more than 33%.
• Following its upgrade to Salesforce CRM Unlimited Edition, Phoenix achieved 96%
user adoption.
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17. Real-World Results: Health Care
• CRC Health—the nation's largest provider of drug and alcohol treatment
services—acquired the country’s largest youth treatment provider. The combined
organization required a platform to manage patient intake, track Web entities, and
streamline operations to increase revenue.
• The company used ACT!, spreadsheets, and other proprietary systems to manage
extensive patient data. Only one call center operator could open the spreadsheet
at a time, making the process inefficient, opaque, and unscalable.
• The company developed a customized user interface on Force.com for 12 users.
With help from salesforce.com partner Appirio, CRC Health extended the
application to broadly leverage the platform.
• Security levels are matched to what’s required to comply with HIPAA and other
industry regulations. Open APIs enable tight integration with legacy tracking
systems, Microsoft Outlook, eFax, and other third party apps. Web marketing
effectiveness tracking within Salesforce CRM indicates to the dollar what is
performing and what is not.
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18. Real-World Results: Green Manufacturing
• Vetrazzo, a leader in the rapidly growing market of recycled glass countertops,
required an enterprise resource planning (ERP) system it could customize to
handle its unique manufacturing processes. The eco-friendly small business
lacked the budget and personnel required to purchase and implement a
traditional on-premise ERP system.
• Without an IT department, executives wanted to avoid having to purchase and
manage hardware infrastructure. The company needed a Web-based solution
for its national staff that could handle anticipated growth.
• With the help of salesforce.com partner The Claiborne Company, Vetrazzo
expanded on a prototype to build an ERP system customized to fit its specific
business processes. The company’s custom apps include Customer Service and
Order Management; Finished Goods Inventory Management; Production Planning
and Scheduling; Raw Materials Management; Shipping and Logistics; Document
Management, and Warranty Management.
• Integration with Quickbooks ties in financials.
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19. U.S. Census Bureau
Increasing Response Rates for Decennial Census
Deployed a custom app in three months
Records, tracks and manages contacts and
activities between staff and external partners
App has scaled up as census goes active;
will unwind as process concludes
Manages 2,200 users: temporary workers
geographically dispersed at headquarters and
12 regional offices
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20. Development: Reinvented > Relocated
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
Compared 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
Sampled more than 1,100 Force.com teams during summer 2009
• Average experience: 4 applications deployed to date
• Average project cost savings: 48%
• Average project acceleration: 5.1x
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21. Spring ’10 Release: Continuing Innovation
• ANSWERS
• Harness the expertise of your community right on your Web site.
• Customers ask questions, experts answer, the community votes: the
best knowledge bubbles to the top.
• CODE SCHEDULER
• Monitor and edit schedules either programmatically or through the UI
• Start processes at times that are most convenient
• DATA MODELING
• Easily create up to three levels of master-detail relationships
• Pull data from all levels of your complex data model into your reports
• AUTHENTICATED SITES
• Scale your public Web site for up to millions of authenticated users
• Eliminate code for registration and login
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22. Handling Social Situations: 2/10/2010
• merges social feeds into Gmail
• USAToday says “iGeneration…has no ‘off’ switch”
• Research suggests teens “survive distractions…better than
we would predict by their age and their brain development.”
• Teens/tweens “don't remember a time without the constant
connectivity to the world that these technologies bring…
[and] everything is customized and individualized”
• But same-day article also reports that
• “Desire to unplug has made an unexpected success out of
websites such as Web 2.0 Suicide Machine…
…that automate and turbocharge the otherwise laborious
manual process of scrapping your online self”
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23. You Can Be Social…Safely
• It’s hard to add security to a tool that shares by default
• It’s possible to add social tools to a proven trust model
23

24. To Everything There is a Season
’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/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
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25. ’50s ’60s ’70s ’80s ’90s ’00-’10s
Cloud Apps
Grid
& X Window
Computing
Platforms
e
nc
da
en
sc
A
Windows
IBM PC Windows XP
PC MITS Altair
Macintosh
3.x/9x/NT & Mac OS X
& Linux 1.0
e
nc
ge
er
Em
DEC DEC Sun Sun/ILM
Sun/AMD
Mini PDP-8 VAX 11/780 Workstations Render Farms
x86 Servers
& Servers Niagara CPUs
…
e
nc
t
en
ra
em
a
pe
in
Ap
ef
R
Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

26. Peter Coffee
Director of Platform Research
pcoffee@salesforce.com Q&A?
facebook.com/peter.coffee
twitter.com/petercoffee
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