Xabier OrmazabalSenior Manager, Product Marketing

Safe Harbor

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The Cloud Computing Model

Multi-tenant

Automatic Upgrades

Pay-as-you-go

Real-time

5 Times Faster

Half the Cost

IDC White Paper sponsored by Salesforce.com: “Force.com Cloud Platform Drives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009

Qua

rte

rly R

eve

nu

e (

$M

)

Revenue through fiscal year ended 1/31/10

Salesforce proved the model works

Annual Revenue Run Rate

$1.4 Billion +

Paying Customers72,500+

Today: A Marketplace of Enterprise Clouds

Cloud Provider Enterprise Customers

2010: #1 Strategic Technology Trend for CIOs

2012: 20% of Businesses will own no IT Assets

The Tipping Point

8

Strong SaaS Momentum Across All CategoriesSaaS ISVs positioned for multiple opportunities

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2005 2006 2007 2008 2009 2010 2011Years

Mill

ion

s o

f D

olla

rs

Other ApplicationSoftware

Supply ChainManagement

Office Suites

Enterprise ResourcePlanning

Customer RelationshipManagement

Content,Communications andCollaboration

Worldwide SaaS Revenue

Source: Gartner

“By 2012, more than 66% of independent software vendors (ISVs) will offer some of their applications optionally or exclusively as SaaS.”

Over 20% CAGR!

Fastest Way to Build Apps

Savings with Force.com 2009 IDC Research Report

Staffing 76%

Development Time 60%

Changes 78%

TCO 54%

Your Choice Of 1000+ Partner Applications

& Services

Trusted Apps

Reviewed by Salesforce.com

View, Try, Install

Best-in-class CRM & Non-CRM Apps

Services Offered

System Integrators & Consultants

Application Developers

Training

What is the AppExchange?1,000+ Cloud Computing Apps and Services

895 Apps and counting…237 Services and counting…

Four Ways Customers Use AppExchange AppsPre-integrated apps. Install & Deploy in Clicks.

Integration ConnectorsMass EmailMarketing AutomationIncentive Management

CRM Extensions

Agile Project MgtIT Help DeskFinance & AccountingConsulting Services

Beyond CRM

Account HierarchyTime-Off ManagerProject & Issue MgmtExpense Tracker

Starter Templates

Mass Update & Delete Adoption DashboardsBrowser ToolbarsReports

Free & Low Cost Add-Ons

Certified Consulting Partners on AppExchange200+ Expert Solution Providers

PARTNER SUCCESS

Types of Service Listings

Listing Highlights

• Customer Sat Ratings & Reviews

• Areas of Expertise

• # Projects delivered

• # of Certified Developers

• Languages and Regions Supported

• Systems Integration• Custom App Development• Consulting• Training

17

SaaS Model Demands High-Velocity Operations

Go-to-Market Customer Acquired

SolutionDelivered

R&DCycle

SalesCycle

DeliveryCycle

6 months 12 months 18 months 24 months

TR

AD

ITIO

NA

L

SO

FT

WA

RE

Sa

aS

R&DCycle

SalesCycle

DeliveryCycle

Seamless Upgrades Enable Continuous Innovation

32 Major Releases

Every Customization & Integration Automatically Upgraded

Always have the Latest Innovations & Technology

Painless, No Hassle Upgrades

19

A New Business Model Is Needed

2- or 3- TierField SalesSales Model

CommunityAnalysts

Go after all segmentsPick and FocusCustomer Segment

3-4 Months1-3 YearsProduct Cycles

New RuleOld Rule

TransactionalFew, Large DealsSales Mix

Web, BrandingDirect MailMarketing Investment

Inbound OutboundCustomer Acquisition Model

IntegratedSegmentedCustomer Experience

Reliability, Security, ScalabilityPortability, Multi-PlatformR&D Investment

Design for IntuitivenessDesign for ComplexityProduct Design

2- or 3- TierField SalesSales Model

CommunityAnalysts

Go after all segmentsPick and FocusCustomer Segment

3-4 Months1-3 YearsProduct Cycles

New RuleOld Rule

TransactionalFew, Large DealsSales Mix

Web, BrandingDirect MailMarketing Investment

Inbound OutboundCustomer Acquisition Model

IntegratedSegmented / FragmentedCustomer Experience

Reliability, Security, ScalabilityPortability, Multi-PlatformR&D Investment

Design for IntuitivenessDesign for ComplexityProduct Design

Customer Evaluation Model

21

Create a 24/7 Demand Generation MachineWhat’s your strategy for lead acquisition, pipeline and loyalty?

Awareness Loyalty

Free Trials & ReviewsIntegrated Campaigns

Generating Buzz

Purchase

22

OLD WORLD NEW WORLD

C

PR 2.0: Build Awareness Across All ChannelsTraditional Analysts vs. Web 2.0 Universe

23

We Live in an Evaluation EconomyHow do you exploit a community of evaluators?

24

Evaluators Demand a Free Trial

There’s no such thing as a lost customerRe-Acquisition is all about the offer

Where is the Cloud Heading?

2009: Social Networking Surpasses Email

Email Users

Social Networking Users

Glo

ba

l Use

rs (

MM

)

Social Networking Users Surpass Email Users on 7/09

Source: Morgan Stanley Internet Mobile Report, December 2009

Next Generation Devices Changing How We Access the Internet

Ann

ual U

nit

Shi

pmen

ts (

MM

)

2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E

Desktop

Notebook PCs

Smartphones

Source: Morgan Stanley Internet Mobile Report, December 2009

2010: Why isn’t all Enterprise Software like Facebook?

Fundamental Shift in Cloud Computing

Cloud 1: Computing in the 2000s

Low Cost . Fast . Easy to UseFuture of Software

1. Multi-Tenant, Shared Systems

2. Trusted Reliability and Performance

3. Democratization of Enterprise Apps

4. Metadata-driven Customization

5. Mash-ups

6. Web Service-based Integration

7. Development as a Service

8. Multi-tenant Development

Platform

9. Application Exchanges

10.Multi-Device Delivery

Cloud 2: Computing for the Next Ten Years

CollaborationNew Devices

Real-time

Social Platform

Social Data

Social Apps

Social Content

Easy to Use:

Works like Facebook

Trusted:

Real-time Updates:

Secure, private application

Choose the people, documents, and apps to follow

Introducing Chatter: Real-time Enterprise Collaboration

The Conversation Starts Here.

Five Habits of Highly Effective Clouds

Platform for Business Productivity

Building an Ecosystem

Cloud computing business model

Building a new sales machine

Delivering ongoing value

xormazabal@salesforce.comtwitter: xormazabal