Possible; Inevitable; Essential: The Social and Mobile Cloud

@PeterCoffee Peter Coffee VP/CTO & Head of Platform Research

salesforce.com inc.

Possible; Inevitable; Essential

The Social and Mobile Cloud

@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. 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.

Safe Harbor

In Other Words:

Everything That

You See Here

is Real

@PeterCoffee

Sources: Twitter, Visible Technologies

conversations per day

150M

2012 2009 2010 2011

Social Revolution

@PeterCoffee @PeterCoffee

Social Revolution:

Social Networking Surpasses Email

So what?

Source: Comscore, June 2011

Social Users

Email Users

2007 2008 2009 2010 2011

1.1 billion

social

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

Fortune 100 Facebook Fan Growth

Fortune 100 Web Traffic Growth

123% growth in social customers

Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”;

Google Social Media Analysis Study

Jun 2010

Dec 2011

The New Corporate ‘Home Page’

“We analyzed the website

traffic of Fortune 100

websites based on ‘unique

visits’. The study revealed

that 68% of the top 100

companies were

experiencing a negative

growth in unique visits over

the past year... 40%

exhibited higher traffic to

their Facebook page

compared to their website.”

Fortune 100 Facebook Activity

Fortune 100 Web Activity

@PeterCoffee

• Old Customers:

– Prospects get content from Marketing

– Buyers negotiate terms with Sales

– Customers raise issues with Support

• Social Customers:

– Prospects seek insights from customers

– Buyers collaborate on competitor research

– Customers tell the world when they’re not happy

• Companies need new organizations & processes

– Power to address issues pushed to edge of organization

– Collaborative response available on demand

This is Not an Opportunity to Lead (It’s a Requirement to Catch Up With the Customer)

@PeterCoffee

• Old Customers:

– Pension fund managers choose investment vehicles/strategies

– Mainstream publications report non-real-time data, highlight trends

– Brokers identify opportunities / handle transactions / charge fees

• Social Customers:

– Defined-contribution plans: every employee a planner

– Real-time information available to all

– Self-service analysis and trading

• Financial Services differentiate with:

– Timely content and rich planning aids

– Superior data feeds and trading tools

The Social Customer and Financial Services

@PeterCoffee

The General Case: ‘Connected’ Revolution

Medicine: sensor-equipped

patients & homes reduce

office & hospital visits

Education: students

in external settings

learn by practice

@PeterCoffee

• Old IT departments allocated scarcity:

“In the 1960s, programmers were paid under $10 per hour; computer time was measured in

hundreds of dollars per hour.” - ZDNet

• Tomorrow’s IT departments must orchestrate abundance:

“What happens when cloud services offer nearly unlimited power, essentially on demand, solely

constrained by what we're willing to pay?” - CloudBlog

• Old IT departments strived to achieve control:

“The IBM Tivoli OMEGAMON family provides a comprehensive performance and availability

solution for monitoring, analyzing, and managing mainframe environments” - software.ibm.com

• Tomorrow’s IT departments must exploit (and contain) chaos:

“In more than half the companies surveyed, business leaders other than the CIO control at least

30% of the money spent on IT.” - CIO Insight

‘Social’ Changes What “IT People” Do

@PeterCoffee

Soft Environments, Smart Devices Changing the Balance of Power

Soft displays adaptive to

urban versus highway,

work versus leisure, etc.

Solo Driver and Driver/Co-pilot modes

with radically different content delivery

opportunities and expectations

Integration with

portable devices:

better, and

improving more

quickly, than

built-in systems

@PeterCoffee

Deconstructing the Dashboard Fundamental Trends in Technology, Lifestyle, and Marketplace

• Microsoft has the right trademark: Surface

- “Special-purpose objects…replaced by apps on tablets…”

- “In 1938 Buckminster Fuller coined the term ephemeralization to

describe the increasing tendency of physical machinery to be

replaced by what we would now call software… No one would

want to underestimate that force.” – Paul Graham, “Tablets” (December 2010)

• Corning, not Apple, shows us how it will look

- Don’t think of “tablet” as an iPad-sized device. Think of it as a

model of interaction (See the video at http://www.youtube.com/watch?v=6Cf7IL_eZ38)

Every surface able to render information

Every surface able to mediate function

Every environment connected with resources and relationships

• “It’s not a phone. It replaces your phone.”– Paul Graham

- Who you are: representation of identity

- Where you are: location awareness and environment monitoring

- What you’re doing: motion awareness and calendar connection

@PeterCoffee

The Tablet Revolution is Under-Hyped

@PeterCoffee

Redefining “Customer”…as Social Actor

Customers are… • the cars they drive

• the things they do

• the ways they live

• the people they know

@PeterCoffee

Source: 2012 McKinsey Global Institute Study: “The Social Economy”

2008 2009 2010 2011

2012

Enterprise Adoption of Social Networking

70% adoption

$1.3 Trillion in value can

be unlocked through

social technologies.

“ ”

Business is Social

@PeterCoffee

‘Social’ ≠ ‘Distracted’

‘Social’ is a model, not an app

– Aware of context

– Shaped by interests

– Driven by events

All Force.com applications are

socially enabled by Chatter

– Old apps added new behaviors

– Social behaviors pervasive,

not isolated in social silo

– Automation scalability

@PeterCoffee

Verbs for Your Nouns: Your Industry Here

@PeterCoffee

Verbs for Your Nouns: Your Industry Here

Public Social Network

SOCIALLY CONNECTED ENTERPRISE

Employee Social Network

Extend

Collaborate

Work

Sell Service

Customer Social Network

Market

Listen

Engage

Connect

Social

Profile

@PeterCoffee

Your Team;

Your Customers

+32% Sales Productivity

+34% Customer

Satisfaction

+37% Campaign

Effectiveness

+29% Innovation

+34% Employee

Satisfaction

+31% Employee

Productivity

Source: 2012 Third-party survey of 5,500 salesforce.com customers

Social Success – By Every Measure

@PeterCoffee

‘Social’ Changes What “IT Skills” Are

• Traditional skills remain necessary – but aren’t sufficient “The old way of looking at IT is gathering requirements, buying the equipment and

turning it on… I’m looking for people who can take us to the next technological level.”

- Senad Hadzic, CIO, KaMin LLC

• Linkage & architecture understanding is key “While there are still roles requiring deep technical experience, for most corporate IT

workers their role will shift from implementation to architecting.”

- Patrick Gray, President, Prevoyance

• Leadership needs more than technical mastery “Innovative thinking and leadership abilities are the two top attributes wanted in a CIO

from 362 business executives surveyed... higher than ‘deep experience in running IT

ops’” - Diamond Management “Digital IQ” Survey

@PeterCoffee

The social revolution

is a trust revolution

@PeterCoffee

Granular Privilege + Ecosystem Options

@PeterCoffee

“When hundreds or even thousands

of other businesses are using

exactly the same operational

infrastructure, all of them…benefit

from the hardening of the

infrastructure after any of them

come in contact with a newly

detected threat.”

All Assets Secured, All the Time

@PeterCoffee

“Despite resource sharing,

multitenancy will often improve

security…

“Our research and analysis indicates

that multitenancy is not a less secure

model — quite the opposite!”

All Assets Secured, All the Time

@PeterCoffee

Trust is Earned by Transparency

@PeterCoffee

Cloud Efficiencies Address Governance Demands

• “Boiler rooms in Berlin or Bucharest, a pump-and-dump

scheme out of Parma or the Dordogne…are U.S. concerns”

(Paul Atkins, SEC Commissioner)

• Data-handling laws proliferate

• Notification of Risk to Personal Data Act

• Personal Data Privacy and Security Act

• Data Accountability and Trust Act

• Social Security Number Protection Act

• Prevention of Fraudulent Access to

Phone Records Act

• Technology trends oppose the goals of governance

• Processing: enemy of encryption

• Connectivity: attacker opportunities and tools

• Storage: ever-growing risk of larger losses

@PeterCoffee

“Great work reducing the pain of the quarterly upgrade so dramatically.

The difference to our business between 2 or 3 minutes of downtime and

2 or 3 hours can’t be overstated.”

Spring ’11 Summer ’11 Winter ’12

Continuing Availability Improvement

@PeterCoffee

0

1

2

3

4

5

Two 9s 2/2011 3/2011 4/2011 Three 9s 5/2011 6/2011 7/2011 Four 9s 8/2011 9/2011 10/2011 Five 9s

Index of Availability (Two 9s = 0)

“Great work reducing the pain of the quarterly upgrade so dramatically.

The difference to our business between 2 or 3 minutes of downtime and

2 or 3 hours can’t be overstated.”

Spring ’11

Summer ’11

Winter ’12

Continuing Availability Improvement

@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

– PCI DSS Compliance Level 1; FIPS 199 LOW and MODERATE

– Comprehensive, continuing audit/certification

@PeterCoffee

– Trust

Dynamic threat environments; rising community awareness and expectations

– Governance

Global markets; narrow perspectives; ‘crown jewel’ data

– Mobility

Productivity improvement; BYOD challenges

– Social Interaction

External communities; internal collaboration; high-velocity operations

– Talent Development and Technology Change

Where will we get tomorrow’s programmers? How will practices change?

“In 2011, there were still five unemployed people for every job available. Yet American

businesses in 2011 reported more than three million job openings they have been

unable to fill because of a skills shortage.” – Edward Luce, Financial Times

‘Social’ Changes How “IT” Leads

@PeterCoffee

Let’s Make One Thing Perfectly Clear: “The Cloud” is not merely “The Web”

This is “Web-enabled”:

• You can find it

• You can use it

• You maintain it…

…or not

@PeterCoffee

Let’s Make One Thing Perfectly Clear: “The Cloud” is not merely “The Web”

This is “Cloud-based”:

• Maintained by others

• Reflective/introspective

• Consistently improving

@PeterCoffee

Customer Success in True Clouds

On spec, on time, on budget deployment of a fully tested, proven

cloud capability: trusted security and global availability

Modern applications, driven by user feedback for continuing

improvement – with “clicks, not code” customization

“No Software”: what’s paid for is function, not code. Continuous

scrutiny of operations, maintenance of facilities, and world-class

security are literally “part of the service”

Multiple upgrades per year: no disruption, shrinking deployment times,

backward compatibility to previous API releases

“The future is already here – just not evenly distributed” - William Gibson

@PeterCoffee

Thank You petercoffee

f acebook.com/peter.coffee

pcoffee@salesforce.com