New Services, No Silos: The Next 15 Years

New Services, No Silos
A salesforce.com Vision for the Next 15 Years
Peter Coffee
VP for Strategic Research
salesforce.com inc.

Good Morning
Let’s review exactly what you were promised
• The cloud is now the mainstream. Congratulations. That means it’s no
longer special to be cloudy.
• What’s needed now is a re-thinking of what IT does.
– Let legacy IT incumbents relocate past century’s silos to past decade’s server farms.
– The salesforce.com community is already re-inventing business processes…
…around the informed and elevated expectations of cloud-native collaborative
customers and their connected things.
The present facts, the near-term implications, and the opportunities
and challenges of continued leadership above the cloud

•The cloud is now the mainstream...

Ten Years After the salesforce.com IPO
“The cloud is no
longer a niche –
it’s how
companies do
business.”

Remember Those Things Called “Personal Computers”?
Negative slope

This Revolution Will Be Tabletized

What Does It Mean…When People Prefer the 2009 Release?

They’re Not Asking for a “Portable Desktop”…
What did we get from
a “desktop metaphor”?
• Direct manipulation
• WYSIWYG authoring
•Work on computers
“the way we work in
real life”…?

They’re Asking For Today’s Way of Work in Their Hand
In 2014, we don’t shuffle
“documents” on “desktops”
• What you’re doing
• Whoelse is doing it
• What’s valued by the team
• What’s already been done
• What’s new to share
• What’s new to show
• What’s now to decide
• What should happen next?

•The cloud is now the mainstream.
Congratulations*
* After you win the revolution…you have to govern

“The Cloud” Was About IT: “Connection” Is About Customers

Connection Creates New Communities…and New Behaviors
“The game, called EteRNA, allows players
to remotely carry out real experiments to
verify their predictions of how RNA
molecules fold. The first big result: a study
published this week in the Proceedings of
the National Academy of Sciences,
bearing the names of more than 37,000
authors – only 10 of them professional
scientists.”

• Old Customers:
– Prospects get content from Marketing
– Buyers negotiate terms with Sales
– Customers raise issues with Support
• Connected 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
– Every employee/contractor/partner is a spokesperson/avatar
– Power to address issues must be pushed to edge of organization
– Collaborative response must be available on demand
Connected Customers Rewrite the Rules

• Old Customers:
– Limited knowledge of realities of risk
– Coarse pooling of risk based on gross and inaccurate data
– Limited opportunities for risk diversification
– Enormously greater visibility of comparable customers
– Real-time information available to all
– Superior data trumps economy of scale
• Financial Services differentiate with:
– Exceptional domain-specific expertise
– Superior ability to analyze (and price) risks
– Proven advantage in first-call responsiveness
For Example: Financial Services in Era of Customer Control

• Old Customers:
– The brand controls the messaging and defines the offering
– Only the most informed customers bargain from knowledge
– Profit margins opaque to customers
– The customer community becomes “the brand”
– Customers can engage in real-time research in-store
– Generics/“off brands” compete with name brands
• Retailers and brand names differentiate with:
– Aspirational image and associations (e.g., Burberry World)
– Effective shift of conversation from price to value
– Positioning as superior solution: customers Google the problem, not the product
Retail and CPG: Assume The Customer Knows Everything

• Old Customers:
– Current research and cost information accessible only to professionals
– Geographic monopolies of care providers and payment services
– Employer-paid group plans with coarse pooling of risk groups
– Freedom to explore alternative therapies and providers
– Ever more individualized knowledge of health record and risk
– Given perfect knowledge, what is “insurance”?
• Health Services differentiate with:
– Superior preventive and lifestyle counseling and assistance
– Pricing options reflecting broad range of customer preference
– Leading-edge adoption of informatics technologies reducing non-value-adding costs
Health Care: Graying Societies in ACA (“Obamacare”) Era

In an announcement on Thursday, Salesforce and Philips,
the Dutch electronics maker, are jointly announcing what
they call an “open cloud-based, health care platform.”
The foray into health care is a significant step by
Salesforce into a specific industry, as opposed to
supplying offerings that span industries, like customer
relationship management software as a service…
There have been other high-profile cloud entries in health
care, notably Google Health, a personal health records
initiative, which opened in 2008 and was shut in 2011. But
Salesforce is an enterprise cloud company and it is
taking a very different approach. Its initial move, with
Philips, is to focus on a specific target in health care —
using technology to manage chronic ailments.”
Breaking News

New Services, No Silos: The Next 15 Years

•What’s needed now is a re-thinking of
What IT Does

What is an “application” anyway?
• Old “applications”:
– Data captured as by-product of business activity
– Function driven by familiar business tasks
– User experience an afterthought
– Built by programmers; judged on cost & efficiency
• New “apps”:
– Data captured through algorithms of discovery
– Function driven by customer delight
– User experience a top priority
– Apps built by front-line business units; judged on ROI

What Should Be in Your App?
• White Pages world
– Prospect looks up your company
• Yellow Pages world
– Prospect reads the ads in your category
• Connected Customers world:
– Prospect Googles for help with the problem
• If you don’t come up on first page, you don’t exist
• If network doesn’t validate you, you don’t get called
– Prospect searches the App Store
• Your app needs to solve problems…
…not just sell products
• Don’t let them forget you between transactions

“A study commissioned by salesforce.com
suggests that 60% of British employees now
use apps on mobile devices for work-related
activity and nearly a quarter (21%) use
dedicated department-specific business
apps… Enterprise apps boost worker
productivity by more than 34%.”
Apps Aren’t Just for Customers

•Let legacy IT incumbents relocate the
past century’s silos to the past decade’s
server farms. The salesforce.com community is
already re-inventing business processes…

• Legacy Platform (wherever it sits):
– Application development suite defined by a legacy IT vendor
– Specific languages, libraries, operating systems and software stacks
– Chosen by technologists; consumed by developers and sysadmins
• Connection Platform (intrinsically cloud):
– Marketplace of services, interacting via non-proprietary protocols
– Mandate to add value to in-place investments while enabling innovation
– Adopted by business units as side effect of getting stuff done
– Consumed by “power users” and line-of-business experts
• Opportunities for Action
– Look for a spreadsheet/database/document with email wrapped around it:
that’s a Force.com application begging you to write it
– Ask how many representations you have for each customer: why not get that down to one?
Redefining “Platform”: Customers Will Decide

Why Settle for MigratingYesterday’s Disappointments?
Multiple Independent Studies Agree: Force.com is a 5× Faster Path from Idea to App
Idea Build App with
modern frameworks
Idea
buy &
setup
hardware
install
complex
software
define user
access
build & test
security
make it
mobile &
social
setup
reporting &
analytics
build
app
Legacy Platforms (wherever they are)
App
6-12 Months?
Connected
Mobile Apps

Latest IDC Study: Build Apps 70% Faster with Salesforce1 Platform
February 2014
Platform
75%Lower
infrastructure
costs
80%More apps launched
per year
Faster time
to market
70%
ROI
520%
7 Customers analyzed across 5 different industries
31 custom apps built (average)
2,700 internal employee users representing 89% of employee base (average)
100K external customer & partner users(average)
IDC White Paper, sponsored by Salesforce.com, Salesforce1 Platform: Accelerate App Dev with Huge ROI, Doc #246505, Feb 2014.

Details Intentionally Redacted (Besides, They’re in French)
• With over 30 countries to consider, the team knew that speed, repeatability and
flexibility would be key to their success. As a large customer of AWS, the company
also know that IaaS alone wouldn’t solve their problems: it simply takes too
long to set up all the AWS “plumbing” required for such an expansive project.
• What the customer needed was a platform that would enable them to build highly
customized, highly immersive sites, leveraging the technologies they know and would
need to use in order for the sites to launch successfully. The first is already live.
• This is just the beginning; the company has already started development for the
remaining 29 sites…slated to go live on Heroku next year, along with several
additional countries in the pipeline.

Salesforce1 Platform: The Leverage of Openness
We’ve always enabled options
• Runlocal code and integrate
• RunJava or LAMP onAWS
• Treatus as an adjunct tool for
» Integration of multi-vendor IT
» Access to handheld devices
• Wecome as liberators
Openness is a commitment
• Agile deployment forRuby, Python, PHP, Java,
Node.js, Clojure, Scala and Play
• Getup & running in minutes; deploy instantly with git
• Neveragain thinkaboutservers, instances,VMs…
…because PaaS leverage is essential

Not Another Turn of the Crank. Readiness to Scale.
“The city’s investment can go
further than just merely paying for
a new system. It’ll be able to take
advantage of other apps that work
on the Salesforce platform.”

Trusted. Results. Today.
LegacyIT approach “was overloading the
project with software, overcomplicating the
site with CPU and memory taxing
applications. Servers were constantly
needing to be restarted…Any replacement
for the current software will need to be
vastly more simple.”
"Salesforcehas been an incredible tool for
us... We purchased on June 1st, and within
8 hours we actually had published an iPad
application... In about a month, we have
something we can use as a platform that
canevolve with us... rapidly deployable,
works on different devices, highly
configurable..."

Less Stagnation. More Innovation.
Eurostar has rolled out Salesforce CRM to improve customer service for
passengers, replacing a number of applications…The high speed rail service
previously relied on up to 13 applications for call centre staff to deal with customer
complaints, during and after a call.
One of the main drivers…wasthe upgradecycle for the software, which
could have resulted in customised features of the software being lost.
“There were no guarantees that the customisations would live through the
upgrade.”
Another is the ability to make changes to the system once it is live. “With
Salesforce, fromthe idea until it was done, took less than two days. There is
no wayyou can do that with other systems, because they are not designed to
do that – Salesforce is a cloud system and it is able to be extended.”
By Matthew Finnegan | Computerworld UK |
Published 10:29, 27 May 14

• Let legacy IT incumbents relocate the past century’s silos to the
past decade’s server farms. The salesforce.com community is
already re-inventing business processes around the
informed and elevated expectations of
cloud-native collaborative customers and
their connected things.

Who will take the lead on an
Internet of Customers?
• Companies who connect to
machines?
• Or teams and communities who
relate to people?
• The winners will be those who
see the stories in the data

looks at salesforce.com – and sees more than CRM
“We asked whether a company had made strides in the past year that will define its field.”

“While many other companies on this list
are building ways for connected devices to
impact industrial and commercial
operations, salesforce.comsays that the
IoT presents a new opportunityfor
marketers to glean deeper insights into
their prospects and customers.
Connecteddevices allow chief marketing
officers (CMOs)to learn how their products
are being evaluated and used, what stage
of the process the prospects are in and
potentially what factors influence buying
behaviour. Salesforce.comsays IoT is not
just about connected machines;it’s
about connected products and
marketing, too.”

SAN FRANCISCO – June 10, 2014
Salesforce.com (NYSE: CRM), the world’s #1 CRM
platform, today launched Salesforce Wear, the
industry's first initiative for wearable computing in the
enterprise. The company also launched the new
Salesforce Wear Developer Pack, empowering
developers to kick-start their ability to connect
companies with their customers through apps for
wearables in entirely new ways. In addition, ARM,
Fitbit, Google Glass, Pebble, Philips, Samsung
and others have joined the Salesforce Wear initiative
to accelerate adoption of wearables in the enterprise.
A Month Ago, This Was News

hubaisms.com/2013/08/08/data-scientist-big-data/
Value from Mobile Apps and Wearable Devices
Poses Challenges of Science – Wrapped in Compliance

hubaisms.com/2013/08/08/data-scientist-big-data/
• “People making calls or sending text messages originating at the
Kericho tower were making 16 times more trips away from the area
than the regional average. What’s more, they were three times more
likely to visit a region northeast of Lake Victoria that records from the
health ministry identified as a malaria hot spot. The tower’s signal
radius thus covered a significant waypoint for transmission.”
• “This is the future of epidemiology. If we are to eradicate malaria,
this is how we will do it.”
– Caroline Buckee
Value from Mobile Apps and Wearable Devices
Poses Challenges of Science – Wrapped in Compliance

Connection’s Concerns are Real
• “Alot of the web services allow
unauthenticated or unencrypted
communication between the devices, so
we’re able to alter the info that gets fed into
the medical record … so you would get
misdiagnosis or get prescriptions wrong.”
• “The physician is taught to rely on the
information in the medical records … [but]
we could alter the data that was feeding
from these systems, due to the
vulnerabilities we found.”

Trust: Without Which Nothing Else Matters
If you think people are touchy
about their money, wait ’til you
know where they were parked
and who else was in the car,
with what kind of music playing
on the radio.
It’s essential to reduce
complexity and to narrow the
scope of privileges – rather
than compounding complexity
and enabling more superusers.

• Password security policies
• Rich Sharing Rules
• User Profiles
• SSO/2-factor solutions
Bottom-Up Design to be “Shared and Secure”
Login… Authenticate…
Apply Data
Security Rules… View Filtered Content

• …the opportunities and challenges of leadership above the cloud.

• Shared spreadsheets and documents
– Problem to be solved is already acknowledged
– Business logic is already written
– Force.com app replaces an email thread with a real workflow
– Plus mobile capability
– Plus structured collaboration
– Plus superior governance, auditability and integration
• Desktop databases
– Data dictionary is already established
– Force.com app adds improved user experience, mobile access and automatic backup
• Line-of-business users have wish lists
– Problems they’ve had so long, they’ve gotten numb to the pain
– “Hero points” for IT: empower the citizen developer, start solving new things every week
Where Do You Find the Force.com “Apps in Waiting”?

We Need to Create New Value
• In 2010
• 58% of surveyed U.S. consumers said
they’d pay a higher price if they had a
strong expectation of superior service.
• On average, 9% premium would be OK.
• In 2012, 66% willing to pay +13%...
…and 75% said they’d already
spent more with a companyin response to
superior service, up from 57% in 2010.
•Connected products can elevate service, from damage control
to proactive customer care

Do Not Think of ‘Clouds’as Products
• Sales Cloud, Service Cloud and Marketing Cloud are not merely cloud-
based replacements for on-premise products
• Each of them is a “serving suggestion” of a portfolio of services; whatever
you want to change, add, or integrate is at your option
• Virtualization of old technology extends the time that you think in terms of
that technology: virtual servers keep you thinking in terms of servers
• We are discovering sound:
→You can study vibrating molecules for years
→You won’t anticipate what happens when they bump into each other
→You totally won’t imagine music

Do Not Design for Incremental Improvement
• Scott McNealy: “I don’t want to carry a battery, keyboard, display,
storage device, and radio transmitter when I just want to check my mail.”
• Where we’re going: all we actually carry is proof of our identity…
…and the environment knows what we’ll want to know – and do
• Architect your solutions for…
Universal, high-speed connectivity
Ubiquitous processing power
Unlimited, intelligently indexed storage
…then adjust to limits of present technology
• The zeros and infinities will never be reached…but you won’t need to rip
up your design and start from scratch every three years

• What got us to where we are…
• …won’t take us where we’re going

“What will be the scarcest, and hence the
most valuable, resource in ‘the second
machine age’? It will be neither ordinary
labor nor ordinary capital but people who
cancreate new ideas and innovations.”
www.foreignaffairs.com/articles/141531/erik-brynjolfsson-
andrew-mcafee-and-michael-spence/new-world-order

The Challenge Isn’t News. The Answers Are.
• “No U.S. pick-and-shovel laborer can compete with the
work of a steam shovel. The modern industrial revolution is
similarly bound to devalue the brain, in its simpler and more routine decisions.”
• “Taking the second revolution as accomplished, the average human being of mediocre
attainments or less has nothing to sell…worth anyone's money to buy.”
–Norbert Wiener, 1948
• Welive and work longer; knowledge lifetime is shorter
• Communication costs less; ignorance costs more
• Jobs need more knowledge; employability takes more time
• Our shared mission: to enable tomorrow’s attainments

Peter Coffee
VP for Strategic Research
salesforce.com inc.
pcoffee@salesforce.com
@petercoffee
in/petercoffee
Creative Commons Attribution-NoDerivatives 4.0 International

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