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

salesforce.com inc.

Social Transformation of the Enterprise

Trust + Vision = Revolution

@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

The Social Customer Plays by New Rules

@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

Social Models and a ‘Connected’ Revolution

Medicine: sensor-equipped

patients & homes reduce

office & hospital visits

Education: students

in external settings

learn by practice

@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

Value of Velocity: Touch the Future Now One 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

Customer, Car, Dealer, OEM – Social Platform

Trusted Cloud Platforms: Data Storage, Data Quality, Interactive Applications, Big Data Analytics

Automotive OEM Core Systems and Emerging ‘Big Data’ Resources

After-sale Services/

Connected Car

>Social Service

>Social Vehicle

Social Customer Profile

Social Vehicle Profile

Baseline Vehicle

Diagnostics

>Social Vehicle

Advertising/Awareness

(Traditional + Social Media)

>Social Marketing

Inquiry/Engagement

>Social Marketing

Dealer Visit/

Test Drive

>Dealer Portal

>Social Clienteling

Purchase/

Conversion

>Dealer Portal

>Social Clienteling

Delivery

>Dealer Portal

>Social Clienteling

Ownership

>Driver Portal Ownership

Transition

>Dealer Portal

@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

The social revolution

is a trust revolution

@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

“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

“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

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

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

Index of Imperfection = -100 * Log10(Availability)

@PeterCoffee

Trust is Earned by Transparency

@PeterCoffee

Cloud Efficiencies Address Governance Demands

• “One of the reasons legislation is necessary is to allow

Canada to meet its commitments under the Council of Europe

Convention on Cybercrime.” - www.privcom.gc.ca

• Data-handling laws proliferate

• Privacy Act (Canada – amended July 2012)

• Notification of Risk to Personal Data 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

“While the Patriot Act continues to be invoked as a kind of shorthand

to express the belief that the United States government has greater

powers of access to personal data in the Cloud than governments

elsewhere, and that ‘local clouds’ are the solution, a recent study we

conducted of the laws of Australia, Canada, Denmark, France,

Germany, Ireland, Japan, Spain, United Kingdom—and the United

States—shows that it is simply incorrect to assume that the United

States government's access to data in the Cloud is greater than that of

the other advanced economies.

“Law enforcement and national security officials have broad access to

data stored locally with Cloud service providers in the countries we

investigated. Our research found that that it is not possible to isolate

data in the Cloud from governmental access based on the physical

location of the Cloud service provider or its facilities, and that

Governments' ability to access data in the Cloud extends across

borders.” - http://www.hoganlovells.com

Cloud Efficiencies Address Governance Demands

@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

Currently used by

– all six national banks

– five major insurance firms

– all three national telco providers

– high-tech leaders

– aerospace manufacturers and operators

– various public-sector agencies

Canadian Leaders salesforce.com

@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

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

cloudblog.salesforce.com