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Keynote by Peter Coffee of salesforce.com for Phorum 2012 event of Philadelphia Alliance for Capital and Technologies (PACT) - Revolutions in cloud services enabling reinvention of enterprise collaboration and social engagement through teams, customer communities, and socially enabled products
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@PeterCoffeePeter CoffeeVP & Head of Platform Research
salesforce.com inc.
Clouds of RevolutionReinventing the (Social) Enterprise
@PeterCoffee
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.
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Safe Harbor
In Other Words:Everything That
You See Hereis Real
@PeterCoffee
• Silicon Photonics– performance/watt has been flat over time (Google Labs, ’05)– Ge lasers 100 times faster than intra-chip wires (MIT)– reduced power losses, easier to cool– ‘seed & melt’ detector fab: cheaper than vapor deposition (IBM)
• Memristors (HP, IBM, Hynix)– roughly twice the density of flash – more than 1,000 times faster– millions of rewrite cycles
• Metamaterials (Purdue)– new semiconductors ‘steer’ light with electric fields– aluminum and gallium doping agents reduce optical losses
Revolution 1: Breakout Speed & Efficiency
@PeterCoffee
• Formally verified operating system (National ICT Australia)• Application ‘whitelisting’• Facebook “Custom” button
– What do they have in common?– Finally, a trend toward granting specific permissions rather than
trying to anticipate and block attacks and errors
Revolution 2: Precise Control of Trust
@PeterCoffee
Informatica
• Big Data– “Time is lost, confusion results and money is spent.”
(1917 complaint about the telephone)– ‘volume, velocity, variety’ (Gartner)– beyond scientific computing
• Bigger Tools– Hadoop (Facebook / Cloudera)– Informatica
• ImprovingAlgorithms &Visualizations
Revolution 3: Massive Analytics & Insight
@PeterCoffee
• Bandwidth pooling– BitMate (Pakistan) effectively doubles connection speed– downloaded by users in 173 countries
• Tagged-packet networking (USC / GM)– instead of sending packets to an address,
label with data attributes• ‘This is what I’m about’
• ‘This is where I’m useful’
• ‘This is when I’m outdated’
• Task-inferring search (Siri)• Data security and robustness (RSA)• Pervasive Social Networking
Revolutions 4-?: Connecting Everything
@PeterCoffee@PeterCoffee
Social Revolution:Social Networking Surpasses EmailSo what?
Source: Comscore, June 2011
Social Users
Email Users
2007 2008 2009 2010 2011
1.1 billionsocial users
@PeterCoffee
Social Networks: More Than Just ‘Sum of the People’(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)
Pop quiz: where is Beijing?
@PeterCoffee
‘Digital’=Evolution; ‘Connected’=Revolution
Replacing doctors’ clipboards with smartphones?– Does not make current health care model sustainable
– Connectivity lets patients stay in sensor-enriched homes
• Radically reduce office visits and hospital admissions
Replacing students’ textbooks with iPads?– Does not make current higher education model sustainable
– Connectivity turns the campus inside out
• Most of students’ time spent in ‘intern’ environment
• Instructors can tailor presentation sequence to work demands
• Return to campus for seminars, research colloquia…and graduation
@PeterCoffee
Networks are More Than Webs
Webs are woven; networks emerge– A web is just a collection of connections
– The arcs of a network have direction,
magnitude, quality, and value
‘Friend’ is bilateral; ‘Follow’ is not– Counting followers ego rewards, but what do they do for you?
• Followers may be just as entertained by your failure
– A critic whose input is acknowledged becomes an advisor
• When input results, advisors feel invested advocates and zealots
Products have buyers; brands have fans
@PeterCoffee
Engineers get to write spec sheets…
Assembly workers get to build and ship…
Lawyers get to write the terms of service…
Call centers get to compile call statistics…
…but only the customers get to say what kind of
experience they had – and they say it to the world
Is every employee in the company equipped to
make that experience excellent?
Fans Arise from ‘+1’ Customer Experience
@PeterCoffee
Collaboration is Key
A social workplace is ‘relative’– Not statically defined by org chart
– Reshaped by knowledge
– Accelerated by events
All Force.com applications are
socially enabled by Chatter– Older apps simply acquired
the new behavior
– Social behaviors are pervasive,
not isolated in social silo
@PeterCoffee
Experience Is Not Partitioned
@PeterCoffee
‘Product’ = Vehicle of Ongoing Experience
Dealers/Distributors
Chatter for 320,000 Employees
Toyota Friend Website1-800-4-My-
Toyota
Toyota Friend on Youtube
Toyota Friend on Twitter
Toyota Friend on mixi
Manufacturing/Finance
Toyota Friend on Facebook
Toyota Friend Mobile
Toyota VehiclesSocial Customer
Profile
Social Customer Profile
@PeterCoffee
Experience Creation Profit Preservation
“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… Simply put, connected devices make connected customers.”
Richard Schwartz, President and CEO, Macheen
“The retail cloud has reached critical mass: everything from DVD players to TVs, from car entertainment to alarm clocks, comes with some sort of cloud service to support that device.”
David Linthicum, 18 January 2012
@PeterCoffee
Where are customers & influencers having conversations?
What facilities exist for tapping that stream?
What are the cultural norms of that community?
When should you be present?
How should you participate?
Who will represent you?
How will that process scale?
What will you learn?
How will you change?
Experience = Interaction Adaptation
@PeterCoffee
Refining Experience: More Than Listening
@PeterCoffee
• Collaborative process creation & maintenance
• Best practice sharing
• Integration with feeds and other social channels
• Social process management
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.
Experience Delivery: a Model, not an App
@PeterCoffee
Facebook, Twitter, and Chatter notifications
Users receive alarms and alerts
Enables rapid response
Reduces system downtime
Network congestion
in Asia.
Network congestion
in Asia.
Enterasys Devices Are Social
@PeterCoffee
The Value of Velocity New Devices New Use Environments New Moments of Opportunity & Decision
...fastest ramping mobile device
ever.“
”
CIO Tablet Intentions
2010
2011
Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011.
Purchased for EmployeesEmployee-ownedNot Allowed
@PeterCoffee
Average time to build a custom app with software is 8 months.
By late 2009, Qualcomm/Android cycle time had dropped to 4.5 months.
Your App
You
Install & Configure
Stack
Write Code
Deploy & Load Test
Monitor & Tune
Patch and Regression
Test
The Value of Velocity
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
Computerworld, “Is 'Quadroid' the new 'Wintel'?,” 2 December 2010
@PeterCoffee
The Value of VelocityOne developer with no prior Force.com training built a patient admission app in just 4 days
Deployed to Medical Directors and Program Directors in hospitals on iPhones and iPads
• Eliminated paper forms;
• Workflow reduced response time by more than 60%;
• Cut process time from 18 hours to less than 60 minutes
“We’re blown away…a mobile healthcare app on Force.com with one person in just 4 days… The same app built in [previous models] would have taken over 3 months”
@PeterCoffee
Social Velocity Leads to The Cloud
• Old Cloud: Centralization + Automation Cost Reduction– Distant resources: considered to be a tolerable nuisance– Security: assumed to be a challenge, and compliance a barrier– ‘Cloudwashing’ of legacy products: tempting and easy
• New Cloud: Connection + Simplification Acceleration– Data and process in cloud are closer to everything else you need– Security is part of the service; audit trails are easy to provide– You can’t ‘connectwash’ a server, no matter how much
virtualization you apply or how many ‘private clouds’ you proclaim– In false clouds, you pay for resources…
…in true clouds, you pay for opportunities
@PeterCoffee
Trust Attainment Enables Cloud Adoption• Robust infrastructure security• Rigorous operational security• Granular customer controls
– Role-based privilege sets– Convenient access control & audit
• “Sum of all fears” scrutiny– Multi-tenancy shrinks attack surface; slashes opportunities for error– The most demanding customer sets the bar– FISMA: FIPS 199 LOW and MODERATE
– PCI DSS Compliance Level 1– Comprehensive and continuing audit and certification
@PeterCoffee
Best Practices Matter More than Data Location
"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
@PeterCoffee
Despite resource sharing, multitenancy will often improve security. Most current enterprise security models are perimeter-based, making you vulnerable to inside attacks. Multitenant services secure all assets at all times, since those within the main perimeter are all different clients…
Multitenancy is here to stay. Our research and analysis indicates that multitenancy is not a less secure model — quite the opposite!
All Assets Secured, All the Time
@PeterCoffee
“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
@PeterCoffee
Economic Development
Defense & Public Safety
Health & Human Services
General Government Transportation
Science & Environment
Public Clouds of Public Trust:No More ‘Forbidden Zones’
@PeterCoffee
• ‘The cloud’ does use technology• Virtualization
• Dynamic provisioning
• 4G wireless
• SOA
These enable; they don’t guarantee
• ‘Cloud’ is a business commitment– Negligible up-front capital– Alignment of cost with value– Maximal stakeholder engagement
The Cloud Experience: It’s About Results
@PeterCoffee
@PeterCoffee
Velocity is a Vector
‘Social’ has both magnitude and direction– If you’re going the wrong way, it doesn’t help to go faster
– The Social Revolution offers ~ unlimited ways to go wrong
Trust takes a long time to win; ~ zero time to lose– Unhappy customers used to call you and wait for action
– Today, they can give the world hourly updates while they wait
– Never a headline, “X Corp.’s customer data uncracked today”
It’s not enough to evolve– Where must you be in three years?
– What should you have been doing today?
@PeterCoffee
Thank You@petercoffee
cloudblog.salesforce.compcoffee@salesforce.com
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