Where the Brains Are:IT Update, Autumn 2011

Peter CoffeeVP & Head of Platform Researchsalesforce.com inc.

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Safe Harbor

In Other Words:

Everything That You See Hereis Real

What are the Smart People Doing? Faster…

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

What are the Smart People Doing? Safer…

Formally verified operating system (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

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

Improving

Algorithms &

Visualizations

What are the Smart People Doing? Smarter…

Collaboration analysis / anonymity (Yahoo!, 4Chan)

‘Contestification’ (Frito-Lay, Toyota)

‘Chatterlytics’– What do they have in common?

– Formalizing measurement of

interaction and influence

– Balancing desire for credit with

benefits of anonymity

– Rewarding contribution, rather

than mere activity

What are the Smart People Doing? Smarter2…

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• ‘This is when I’m outdated’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 (Bing)

Data security and robustness (RSA)

Connecting it All Together

Today’s Maps are Drawn by Our Connections(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)

Pop quiz: where is Beijing?

’60s Mainframe Computing

’90s Desktop

Cloud Computing

’00s Mobile Cloud

Computing

’10s SocialRevolution

’70s Mini Computing

’80s Client/Server Computing

Ten Year Computing Cycles10X more users with each cycle – but this time, with a difference

Data Management

Apps

Business Logic Apps

Process Automation

Apps

Web Apps

Mobile Apps

Social Apps

“Whereas earlier entrepreneurs looked at the Internet and saw a network of computers, Zuckerberg saw a network of people.” – Time, 15 Dec. 2010

Social Revolution:Social Networking Surpasses Email

Source: Comscore, June 2011

Social Users

Email Users

2007 2008 2009 2010 2011

1.1 billionsocial users

2010

2011

Web

Usa

ge (

min

utes

)

4 hoursper month

Social Revolution:The WAWKI* is Shrinking

Sources: Ben Elowitz, Wetpaint / comScore

* Web As We’ve Known It

Facebook mobile users are 2X more active than desktop users.

- facebook.com

81minutes

per day

Social Revolution:Mobile Apps Used More than Web Browsers

Source: comScore, Alexa, Flurry Analytics

Mob

ile A

pps

Bro

wse

r

Social Revolution:Device Choice Indicates New Use Cases

Source: Gartner Research; Smartphone, Tablet, and PC Forecast, December 2010.

2013E

16 billionmobile devices by 2013

Desktop

2007 20082009 2010 2011E 2012E

Laptops

Smartphones

Tablets

Number of Apps

750,000Apps

7/0810/08

4/097/09

11/094/10

9/106/11

Social Revolution:Apple / Android App Store Volume Exploding

Social Revolution:Employees Forcing the Pace of Change

...fastest ramping mobile

device ever.“

”

CIOs Surveyed on Tablet Usage

2010

2011

Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011.

Purchased for EmployeesEmployee-ownedNot Allowed

A Critical New Role for “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

1,100 tweets per day handled by agents

Automatic conversion of tweet-to-case

Fast Resolution with case routing

twitter.com/Bofa_Help

Bank of America’s New Branch is Twitter on the Salesforce Service Cloud

Gatorade Social Monitoring Center

Engaging athletes on social media

7% increase in sales

250% traffic increase in product education

Gatorade Joins Customer Conversations on Social Media

Products Become Participants

Instant updates, not

limited by human

speed or attention

Effective integration

of hardware speed

& human judgment

The next new

application

opportunity

public String CloudThoughts{ get; set;}Mike Leach, www.embracingthecloud.com

Facebook, Twitter, and Chatter notifications

Users receive alarms and alerts

Enables rapid response

Reduces system downtime

Network congestion

in Asia.

Enterasys Devices Are Now Social

Collaborative

process creation &

maintenance

Best practice

sharing

Integration with

feeds and other

social channels

Social process

monitoring

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.

Because ‘social’ is a model, not an app

What are your customers saying?

200 million tweets/day

1.5 billionFacebook posts/day

Billionsof blogs & communities

Difficult to Track Conversations Across Customer Social Networks

Sift more dirt, find more gold– With modern machines/methods, gold mines are

viable at 1 g. Au / ton of ore

– Costs of collecting/sifting the crowdstream

continue to fall

The oddly opposite models:– Delphi Method: people with wildly varying knowledge, exposed to each other’s

opinions, produce consensus surpassing the sum of the parts

– Open-Source Method: Individual contributions, appropriately incented (if only with

ego rewards), yield cost-effective combined results

Can the crowd survive its success?– “Even mild social influence can undermine the wisdom of crowd effect.”

Proceedings of the National Academy of Sciences, 16 May 2011wired.com/wiredscience/2011/05/wisdom-of-crowds-decline

– Vital elements: diversity, independence, decentralization, aggregation

What Role for “The Crowd”?

From Data to Information

Toyota Social Enterprise

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

Cloud Connection Margin Growth and Brand Differentiation

“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. With a connected device, there are all kinds of new opportunities to present offers and services that can generate ongoing monthly revenue. Simply put, connected devices make connected customers.”

Richard Schwartz, President and CEO, Macheen

Objections Are Being Addressed

Security: American Bankers Association blog says an enterprise should

“verify that any outsourcing partner meets its standards. However, once

verified, a cloud partner can actually provide greater security.”

Availability:– Salesforce.com now routinely exceeding 500M transactions/day

– In June 2011, achieved 100% of planned availability

Compliance: United States’ National Institute of Standards and

Technology says cloud-resident data “can be more available, faster to

restore, and more reliable… [and] less of a risk than having data dispersed

on portable computers or removable media.”

Trust is Enabled by Transparency

Data protection regulations– Where can it be stored?– Who’s allowed to see it?

Peel the onion of ‘compliance’– Anonymize/encrypt/partition specific fields– Cloud disciplines can enhance auditability

• Role-based privilege assignment

• Actions taken using granted privileges

Looking at the laws is not enough– USA PATRIOT Act inspires concern from global

collaborators who may fear a multi-tenant ‘dragnet’…but…– Court rulings already encourage escrow/isolation of

targeted data when a multi-tenant system is involved

Data Stewardship is a Practice, not a Technology

“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

Cloud Credibility: Option of First Resort

The Upsides Become Compelling

Innovation:– Old: Windows XP is 10 years old, but runs almost half of the world’s PCs

– New: In time between Win 7 and SP1, Force.com had six upgrades

Collaboration:– Organizations adopting Chatter routinely see 30%+ reduction of email

– When people are given a choice, they choose the social model

Competitive Advantage: McKinsey Global Institute finds that

– “fully networked enterprises…[use] collaborative Web 2.0 technologies intensively

to connect the internal efforts of employees and to extend the organization’s reach

to customers, partners, and suppliers”

– “[they] are not only more likely to be market leaders or to be gaining market share,

but also to use management practices that lead to margins higher than those of

companies using the Web in more limited ways.”

Cloud leverage empowers innovatorsRapid iPad Deployment for Patient Prescreening

One developer with no prior training built a mobile app in just 4 days

Deploying to Medical Directors, Program Directors in hospitals on iPhones and iPads

Eliminates paper forms, workflow cuts response time by more than 60%

Cut processing time from 18 hrs to less than 60 min

“We’re blown away by how we built a mobile healthcare application on Force.com with one person in just 4 days…

The same app built in [previous models] would have taken over 3 months”

The Rising Floor of “Easy”

Bulldozers greatly reduce the jobs for ditch-diggers…but they

greatly increase the number of jobs for landscape architects

and golf-course designers Old IT:

– Make capacity decisions once a year, then keep the pedal to the

metal and wish that you had more– Make security decisions based on perimeters…and hope for the

best

New IT:– Make capacity decisions every hour—or less—and continually

evaluate business value of every marginal cycle– Make security decisions based on relationships…and monitor use of

the privileges you grant

The Future Has Already Happened

When a bomb explodes, it takes some time before you see

anything happen…but the energy has been released

Three fundamental energies

are in play:– Connectivity

• Capacity in place

• Protocols and power management

– Mobility• Devices drive cloud demands

– Social interaction model• Dominating on- & off-job interactions

‘Cloud’ only hints at what you don’t need to do– ‘Social’ describes what your workers and customers want

– ‘Mobile’ describes what they need

– ‘Open’ describes the freedom to do it the way that works for them

Cost reduction is not the path to leadership– Cloud models make it easier to match IT costs against business tasks

– Superior ROI, and compelling improvement in time-to-market, change the terms of debate surrounding IT investments and resources

The job of the ‘IT professional’ is changing– Integrator of services, rather than buyer and operator of technologies

– Instigator and manager of innovative tools and processes

– Enabler and custodian of relationships and insights

In Conclusion

Peter CoffeeVP & Head of Platform Research

pcoffee@salesforce.comfacebook.com/peter.coffee

twitter.com/petercoffeecloudblog.salesforce.com

Q&A?