The Enterprise Cloud: Immediate. Urgent. Inevitable.
-
Upload
peter-coffee -
Category
Technology
-
view
2.347 -
download
4
description
Transcript of The Enterprise Cloud: Immediate. Urgent. Inevitable.
The Enterprise Cloud:
Immediate. Urgent. Inevitable.
Peter Coffee
Director of Platform Research
salesforce.com
InformationWeek reports that Census CIO Brian
McGrath sees promise in cloud offerings, but he is
taking things slowly. The first use of cloud-based
offerings for the bureau was using a contacts
database from salesforce.com. The bureau has a
database of 170,000 partners that had been initially
planned to be hosted in house. However, problems
with the contract forced an alternative solution.
Salesforce.com was the alternative solution and the
database was rolled out in six weeks. Compared to
the months or years that the average government IT
project requires for deployment, the salesforce.com
database was deployed shockingly fast.
DailyTech.com, 1/22/2010
U.S. Census BureauIncreasing Response Rates for the Decennial Census
U.S. Census BureauIncreasing Response Rates for the Decennial Census
Deployed a custom app in three months
Records, tracks and manages contacts and
activities between staff and external partners
App has scaled up as census goes active;
will unwind as process concludes
Manages 2,200 users: temporary workers
geographically dispersed at headquarters and
12 regional offices
100% Cloud Cover?
www.networkworld.com/news/2008/102908-bechtel.html
“If you take the ideal
world, everything is
done as a service:
computing, storage,
software and
operations.”
“The risk for enterprises
that don't start a SaaS
migration strategy soon
is that their IT
organizational
structures will be a
competitive
disadvantage.”
Geir Ramleth
CIO, Bechtel Corp.
Infrastructure as a ServiceInfrastructure as a Service
Virtual
Servers
Virtual
Servers
Virtual
Servers
Virtual
Servers
Virtual
Servers
Virtual
Servers
Platform as a Service
(PaaS) for the
Inquiring Developer
“Servers as a Service” PaaS as Enterprise
Application Framework
Infrastructure as a ServiceInfrastructure as a Service
Database as a ServiceDatabase as a Service
Python/Java
Application Server
Python/Java
Application Server
~Familiar Developer ModelRapid Scalability
β OfferingInnovative Technology
Supports Large-Scale SaaS
Deep-Dyed Multitenancy
Database as a ServiceDatabase as a Service
The Cloud as a Multi-Product Marketplace
Unlimited Real-Time Customization
Granular Security & Sharing
Programmable Cloud Logic
Real-Time Workflow& Approvals
Programmable User Interface
Integrated Content Library
Infrastructure as a ServiceInfrastructure as a Service
Moving toward an ideal: “Zero, One, Infinity”*
0 On-premise infrastructure
Acquisition cost
Adoption cost
Support cost
1 Coherent and resilient environment – not a brittle “software stack”
∞∞∞∞ Scalability in response to changing need
Integratability/Interoperability with legacy assets and other services
Customizability/Programmability from data, through logic,
up into the user interface without compromising robust multi-tenancy
* From The Jargon File: “Allow none of foo, exactly one of foo, or any number of foo”
What it Means to Promise “The Cloud”
Faster Results; Lower Risks; Predictable Costs
On-Premise Operations:
Upgrade Expense &
Opportunity CostsUp-front Capital
Expense & Delay
Variable Cost Aligned with
Business Value
Value
Time
Cloud Computing:
Average 49% ROI
within 10 Months253% of software projects cost
189% of original estimate1
Buying Function,
not Infrastructure
Value
1 Standish Group, Chaos Report 20062 Third-Party CustomerSat Research on 4,165 Salesforce.com customers, February 2008
Fixed Costs and
Excess Operating
Expenses
Minimal
Initial Cost
Single-Tenant vs. Multi-Tenant Architecture
Single tenancy gives each customer a
dedicated software stack – and each layer
in each stack still requires configuration,
monitoring, upgrades, security updates,
patches, tuning and disaster recovery.
On a multi-tenant platform, all applications
run in a single logical environment: faster,
more secure, more available, automatically
upgraded and maintained. Any improvement
appears to all customers at once.
Shared infrastructure
Other apps
Server
OS
Database
App Server
Storage
Network
App 1
Server
OS
Database
App Server
Storage
Network
App 2
Server
OS
Database
App Server
Storage
Network
App 3
Coherent Code Base and Managed InfrastructureCoherent Code Base and Managed Infrastructure
Your Clicks
Your Code
User Interface
Logic
Database
Metadata representations:
Rigorously partitioned data, logic and customizations for multiple customers
Build strategic applications
Customize any aspect
Upgrade when convenient
Retain IP ownership
Why Multi-Tenancy Matters to Developers
In Search of Platform Leverage
A path of least resistance to high-function applications
Unlimited Real-Time Customization
Granular Security & Sharing
80+ Million Lines of Cloud Logic
245,000 Workflow Rules and Approvals
312,000 UI Customizations
Real-Time Mobile Deployment Real-Time Websites
Integrated Content Library
Real-Time Analytics
800+ Integrated Applications
Multi-Tenant Kernel
ProvenReliability
Real-Time Upgrades
ISO 27001, SAS 70 Type II Certified Security
Proven Scalability(15 billion transactions/Q2)
Real-Time Transparent System Status
3 Global Data Centers & Disaster Recovery
Proven Real-Time integration
Real-Time Sandbox Environments
Real-Time Query Optimizer
Salesforce to Salesforce Sharing
The Force.com Visual Process ManagerHow it works
Process Designer
Process Simulator Real-time Process Engine
Wizard Builder
Step 1 Step 2 Step 3
Visual Process Designer
� Easy visual authoring
� Multiple process types &
templates
� Real-time process
simulation
� Extensible plug-in
architecture
UI Wizard Builder
� Rapidly Create Wizards
� Requires no Code
� Walk users through multi-
step processes
� Dynamic decisions and
branching
� Displayed as Mashups in UI
Process Simulator
� Process walkthroughs
� UI displayed in Simulator
� Conflict resolution
� Auto verification
Real-time Process Engine
� Multi-tenant
� Multiple process types &
templates
� Real-time process
simulation
� Extensible plug-in
architecture
Visually Programmed Business RulesMore powerful than formulas, easier than code
• Use with assignment, escalation, validation rules, etc.
• Call out to external systems
• Execute asynchronously, in batch, or scheduled
+Business rule evaluates to true
Cloud Development: reinvented, not just relocated
� Nucleus Research analyzed Force.com deployments: found
average 4.9 times faster development (range 1.5x-10x)
versus Java or .Net
– Custom objects
– Administrative tools
– Workflow engine
– Pre-tested platform
� Galorath Inc. compared developers’ Force.com productivity to
Java development
– Requirements definition time reduced 25% due to rapid prototyping
– Testing effort reduced by (typically) more than 10%
– Development productivity of new code 5x greater
– Overall project cost 30-40% less
� CustomerSat sampled more than 1,100 Force.com
development teams during summer 2009
– Average experience: 4 applications deployed to date
– Average project cost savings: 48%
– Average project acceleration: 5.1x
Cloud Integration: No Need for Rip/Replace
Mash-ups from
Web and
AppExchange
Native
Desktop
Connectors
Integration
Partner
Ecosystem
Developer
ToolkitsNative ERP
Connectors
4 Months
(Oct ’06- Feb ’07)
1 Month
(Dec ’06)
5 Months
(Dec ’06 – May ’07)
2Q07
Deployments
“This is process lite. It gives my business users what they want,
a unique app for each sales team, fundamentally reflecting their own personality.
“And yes, I get a single standard SAP integration. It’s a terrific success.”
–CIO, Fortune 500 Firm
SAP Back-end
Integration
Customized for
Diverse Sales Groups
Sales
Distributors
Sales
Distributors
EMEA
Inside Sales
EMEA
Inside Sales
AFS Global
Sales
AFS Global
Sales
FLPR Field
Sales
FLPR Field
Sales
Cloud Integration: New Leverage for Knowledge
For the first time we have visibility into the effectiveness
of our client programs and the ability to set and track
metric-based benchmarks for client progress.
50% reduction in time spent on paperwork,
reporting and reimbursement
Eliminated 2-month wait for County reports
Real-time tracking of individual client outcomes
(treatments adjusted accordingly)
Self-audits and tracking of clinician, program, and
division productivity
Automated reimbursement process though auto-
population of funder forms
� Client Intake
� Case Management
� Service Plans
� Client Outcomes
� Self-audits
Bob Bennett
CEO”
“
Cloud Integration: Family Service Agency / SFO
HIPAA-compliant EHR for mental health case management
• SSL data encryption
• Optional strict password policies
• SAS 70 Type II & SysTrust Certification
• Security certifications from Fortune 50
financial services customers
• May 2008: ISO 27001 Certification
Platform Security
• Fault tolerant external firewall
• Intrusion detection systems
• Best practices secure systems mgmt
• 3rd party vulnerability assessments
Network Security
• 24x365 on site security
• Biometric readers, man traps
• Anonymous exterior
• Silent alarm
• CCTV
• Motion detection
• N+1 infrastructure
Facility Security
Cloud Security: No Need for Excuses
“There are some strong technical security arguments in favor of Cloud
Computing… (Craig Balding, Fortune 500 security practitioner)
� Password security policies
� Rich Sharing Rules
�User Profiles
� SSO/2-factor solutions
Login… Authenticate…Apply Data Security Rules… View Filtered Content
Multi-Tenant Application Security
� It’s hard to add security to a tool that shares by default
� It’s possible to add social tools to a proven trust model
Enterprise Clouds Enable Secure Communities
2009: Social Networking Surpasses Email
Email Users
Social Networking Users
Global Users (MM)
Social Networking Users
Surpass Email Users on 7/09
Source: Morgan Stanley Internet Mobile Report, December 2009
Data is for unique, monthly users of social networking and email usage.
A colleague knows
key decision maker
After losing
the deal
Too Often We Miss Out On Critical Information
It’s frustrating to hear…
Prices have
ChangedProblem at a key
customer
After sending
the proposal
After the customer
has left
The New Conversation
� Take the workplace from
Newton to Einstein
– Not a static space defined
by an org chart
– A relativistic space, dynamically
redefined by relationships
of people and events
� Enable a social component
in every Force.com app
– Current apps simply acquire
the new behavior
Social Business ProcessesThe intersection between Chatter & VPM
� 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.
Java Framework vSphere Virtualization vCloud Technology
Provisioning
Configuration
Management
Force.com
Developers
Open Environment
Java Community
Java
Developers
5x Faster
1/2 The Cost
CIOs
Trusted
Open
Complete
What VMforce Means to…
Real-World Results: Financial Services
� The Phoenix Companies sought a new CRM solution with flexibility, ease of use,
mobile accessibility, low-cost modification capabilities, minimal user training
requirements, and simplified integration with other apps.
� Changeover to Salesforce CRM took less than two months. Working with
salesforce.com partner OKERE (now part of Fujitsu Consulting), Phoenix used the
Force.com platform to create customizations for contracts and underwriting.
� Using the Force.com API, Phoenix integrated several legacy systems with
Salesforce CRM to provide consolidated, real-time access to information.
� The Salesforce CRM implementation cost the company less than one-fourth of the
project’s original budget.
� By streamlining communication between field and inside sales within Salesforce
CRM, Phoenix has reduced phone and email inefficiencies, boosted productivity,
and, in 2005, increased life insurance sales by more than 33%.
� Following its upgrade to Salesforce CRM Unlimited Edition, Phoenix achieved 96%
user adoption.
Real-World Results: Professional Services
� Animators at Law, a leading provider of litigation graphics, litigation consulting &
litigation technology for many of the largest law firms, pioneered a unique system
for identifying the litigation activities of law firms and corporations and wanted to
make the data available to third parties through a subscription-based service.
� In just a few months – with no added development staff – the team created
LawProspector, the first comprehensive sales lead and litigation market
intelligence tool. The application, built on the Force.com platform, integrates with
Salesforce CRM Enterprise Edition and Salesforce CRM Partner Networks.
� LawProspector is integrated with applications from the Force.com AppExchange.
LinkedIn for Salesforce, enables users to access LinkedIn information directly
from Salesforce CRM contact and account records, and Account News Feed
powered by Google News displays relevant news items from Google alongside
Salesforce CRM records.
Real-World Results: Green Manufacturing
� Vetrazzo, a leader in the rapidly growing market of recycled glass countertops,
required an enterprise resource planning (ERP) system it could customize to
handle its unique manufacturing processes. The eco-friendly small business
lacked the budget and personnel required to purchase and implement a
traditional on-premise ERP system.
� Without an IT department, executives wanted to avoid having to purchase and
manage hardware infrastructure. The company needed a Web-based solution
for its national staff that could handle anticipated growth.
� With the help of salesforce.com partner The Claiborne Company, Vetrazzo
expanded on a prototype to build an ERP system customized to fit its specific
business processes. The company’s custom apps include Customer Service and
Order Management; Finished Goods Inventory Management; Production
Planning and Scheduling; Raw Materials Management; Shipping and Logistics;
Document Management, and Warranty Management.
� Planned integration with Quickbooks will tie in financials.
May-July 2009
• 99.997% of planned
availability
• Continually narrower
maintenance windows
Live System Status
Security Best Practices
Historical Performance
Full Public Disclosure
Amazon
Trust Through Openness
Trust Through Openness
zSeriesS/3904300S/370S/360IBM 701Mainframe
Sun/AMDx86 Servers
Niagara CPUs
Sun/ILMRender Farms
SunWorkstations
& Servers
DEC
VAX 11/780
DEC
PDP-8Mini
Windows XP
& Mac OS X
Windows
3.x/9x/NT
& Linux 1.0
IBM PC
MacintoshMITS AltairPC
’00s’90s’80s’70s’60s’50s
To Everything There is a Season
App
earanc
e
Emerge
nce
Asc
enda
nce
Refinem
ent…
zSeriesS/3904300S/370S/360IBM 701Mainframe
Sun/AMD
x86 Servers
Niagara CPUs
Sun/ILM
Render Farms
SunWorkstations
& Servers
DEC
VAX 11/780
DEC
PDP-8Mini
Windows XP
& Mac OS X
Windows
3.x/9x/NT
& Linux 1.0
IBM PC
MacintoshMITS AltairPC
Grid
ComputingX Window
Cloud Apps
&
Platforms
’00s’90s’80s’70s’60s’50s
What Should Drive Your New Initiatives?
� Goals:
– Collaboration
– Creation
– Knowledge Identification
– Talent Motivation/Retention
� Methods
– Knowledge Engineering
– Peer Tagging/Rating
– Networking
– Publication
� Conventional IT model front-loads
capital spending on infrastructure
– Debt service and depreciation charges
persist despite business contractions
– Future capacity must either be bought in advance,
or added later at higher cost with substantial
business disruption
� The cloud enables preparation for upturn
– New systems can be built and tested with negligible
up-front investment
– Resulting systems can be rapidly scaled to respond to
improving conditions
– "It has been our repeated experience that business
uncertainty is inevitably accompanied by opportunity“
(Jack Welch, Letter to GE Shareholders, 1997)
Clouds Put IT Spending Back in Balance
� Don’t think of the cloud as technology
• Virtualization
• Metadata customization
• Multi-tenancy
• 4G wireless
• SOA
– These are enablers, not guarantors
� Think of the cloud as a commitment
– Negligible up-front capital
– Alignment of cost with value
– Maximal stakeholder engagement
Clouds Put IT Spending Back in Balance
Best Practices and Pitfalls
• Adopting the Cloud does not mean starting over
• Retain what’s working: innovate and add value at Web speed
• Don’t settle for the least unsatisfactory solution:
treat the Cloud as a supermarket of services
• Preserving familiar pain is not a measure of success
• Moving existing complexity into the Cloud avoids short-term pain
• Mastering new developer models is a high-return investment
• Don’t apologize for doing what made sense two years ago
• Bandwidth has grown
• Customizability has grown
• Costs of doing things the old way are skyrocketing
• Don’t mistake the consumer Web for the enterprise cloud
• Expect high availability; robust security; deep customizability
• Demand clear commitments on data ownership and protection
Safe Harbor Statement
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-
looking statements including but not limited to statements concerning the potential market for our existing service offerings
and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results
expressed or implied by the forward-looking statements we make.
The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in
our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our
service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain
profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating
history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to
release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of
the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective
tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and
interest rates.
Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-
K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These
documents are available on the SEC Filings section of the Investor Information section of our website at
www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-
looking statements, except as required by law.
Peter CoffeeDirector of Platform Research
facebook.com/peter.coffee
twitter.com/petercoffee
Q&A?