The Code Ahead: The Future of Software

1
The Code AheadThe Future of Software

• Luke von Schreiber
• NE Alliance Director, salesforce.com

2
Safe Harbor Statement

• 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 out 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, 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, 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
  quarterly report on Form 10-Q filed on August 19,
  2005 and in other filings with the Securities and
  Exchange Commission. These documents 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.

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Source Microsoft Internal Memo, October 30, 2005
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Agenda

• The Future of Software
• Our Strategy
• Wrap Up and QA

5
The Consumer Web Platforms
6
New Technologies Shape the Future of Software
Why cant business applications be as easy as the
Consumer Web?
7
The Business Web
Create Publish
Deliver Everywhere
Run
Integrate
Think Global, Act Local
ISV Standards
Secure Scalable
Mash-Ups
8
The Future of Software
Web Services-Based Integration
6
Multi-Tenant, Shared Systems
1
Development as a Service
7
Trusted Reliability Performance
2
Multi-Tenant Development Platform
8
Democratization of Enterprise Apps
3
Metadata-Driven Customization
4
Application Exchanges
9
5
Multi-Device Delivery
10
Mash-Up Capability
9
The Multi-Tenant Imperative
1
Multi-Tenant Shared
Single Tenant Isolated
Faster Vendor Innovation Economies of Scale
Scalability Automatic Upgrades
10
99.9 at lt 300 Milliseconds per Transaction
2

• Reliability
• Mirrored
• Redundant
• Diverse Network
• 99.9 Reliability

• Security
• SAS 70 Type II
• SystTrust Certified
• Secure Data, Network, Facilities

• Performance
• Redundant
• Carrier-Neutral
• Highly Scalable
• lt 300 ms/transaction

• Transparency
• Open Trusted
• Accountable
• Real-time updates
• Real-time uptime reporting

Production
Back Up
Main Disk
Shadow Disk
Main Disk
Shadow Disk
11
1 to 10,000 Users on the Same Instance
3
SOHO
SMB
Enterprise

• World-class performance scalability for
  any-size business
• Same Features
• Same Performance

• Same Scalability
• Same Reliability

• Same Global Solution

12
Easy Meta-Customization Transcends Versions
4

Customer B
Customer A
Meta-Customizations Stored in Database
Database

• Upgrade Meta-Customizations With Zero Customer
  Effort

13
Mash-Ups Composite Web Services AppsCombining
heterogeneous web services creates new apps
value
5
Map
photos
apartments
www.housingmaps.com
www.flikrmap.com
www.amazon.com
14
Standard Web Services APIs Deliver Easy
Integration
6
SOAP
WSDL
XML

• Web Services Deliver Transparent Integration to
  the User

15
Replicated Development Environment-as-a-Service
7
Production Environment
Development Environment

• All Customizations
• All Data
• Periodic Refresh

• Fully-Automated Replication Change Management
  

16
Multi-Tenant Development Platform Enables
Unlimited Innovation
8
Manage Anything On-Demand with Zero
Infrastructure Investment
Manage Custom Processes
Manage Enterprise Apps
Manage Basic Processes
Manage Data
17
Application Exchanges Directories
9
Google Directory for Homepage Services
Apple Widgets

• Choose from a Network or Directory of
  Applications

18
Write Once, Run AnywhereCreate, publish and
deploy all your applications on any device
10
Succeed Everywhere!
Create Once Using Service
Publish Once To Service
19
The Future of Software
Web Services-Based Integration
6
Multi-Tenant, Shared Systems
1
Development as a Service
7
Trusted Reliability Performance
2
Multi-Tenant Development Platform
8
Democratization of Enterprise Apps
3
Metadata-Driven Customization
4
Application Exchanges
9
5
Multi-Device Delivery
10
Mash-Up Capability
20

• The Future of Software
• Our Strategy
• Wrap Up and QA

21
Customer Success With Three Killer Apps
2
3
1
Worlds first multi-tenant language development
platform
Worlds most trusted enterprise CRM
Worlds on-demand applications marketplace
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1 Killer App Salesforce CRM
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2 Killer App Apex PlatformWorlds First
Multi-Tenant Programming Language Platform
Over 80,000 custom objects and applications!
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3 Killer App AppExchange Marketplace Over 430
Choices for On-Demand Success
Commissions


An for business software

• Create
• Share

• Browse
• Install

25
Rapid Growth Success1 On-Demand CRM Market
Share
646,000
2001 2002 2003 2004
2005 2006 2007
Based on publicly available customer and
subscriber numbers. Bars represent fiscal
quarters.
26
Breaking New Barriers in Enterprise Deployments
Sept 2006
15,000
June 2005
5,000
April 2005
Merrill Lynch
4,000
Nov 2004
Jan 2004
3,000
Nov 2003
2,000
May 2003
June 2001
750
Sept 1999
500
100
10
Largest customer deployments
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Multi-Tenant Delivers Value in Weeks Not Years
1
Client/Server Software
6 month Breakeven
27 month Breakeven
ROI
ROI
Value to Customer
Risk
Risk
Source Gartner, Customer Surveys
Time
Time
Go Live 12 Months
Go Live 6 Weeks
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Sales
Sales Service Support Marketing Campaigns Custom
er Requests Quoting Purchase Orders Project
Management Electronic Components
Altium used the Apex platform to deploy six
critical business applications in only four weeks
Alan Perkins CIO Altium Corporation
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Leading On-Demand Service Delivery
2
Unmatched Reliability
Trusted Security
Maximum Performance
Complete Transparency
Back-Up Production Data Center (East Coast)
Main Production Data Center (West Coast)
Production Class Development Lab Tape Archive
(West Coast)
30
Democratizing Enterprise Scalability Performance
3
Your Company
1
Your Division
2
Query Optimization Engine
Your Data
Your Customizations
3
Massive Scale
Immediate Response
Your Sharing Model
4
Sub-second response time
Billions of Transactions
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Industrys Most Advanced Meta-CustomizationFreein
g users from the burden of long programming cycles
4

• Customize with Clicks not Code
• Custom Apps
• Custom Layouts
• Custom Fields

• Custom Workflow
• Custom Reports Dashboards
• Customize Anything!

Meta-Customizations Stored in Database
Database
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Mash-Ups The Business Web is HereMash-Ups Drive
New Automation, Creativity, Innovation
5
Listings
Campaigns, Dashboards, Reports, Cases
Contacts
Accounts, Leads, and Opportunities
Account, Contact, Lead Mapping
VOIP Calls, Conferencing Presence
Integrated Marketplace Management
33
Choice in Integration with Web Services Easily
Integrate At Any Level Internet, Tools, Desktop
Enterprise
6
All Integrations Are Upgraded With Zero Customer
Effort
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Proven Integration for 1000 Enterprises45 of
all transactions completed through API
6

SAP Integration
SAP Integration
Lead Management Integration
Portal Integration
Order Configuration
Remedy Integration
Data warehouse Integration
35
Freedom to InnovateTake success to the next
level with Sandbox development as a service
7
Fully-replicated
Production
Sandbox

• Develop Your Ideas
• Test
• Train

• Customizations
• Data
• Periodic Refresh

36
Unlimited Innovation With Zero InfrastructureIT
and Developer Success with the Worlds Only
Multi-Tenant Platform
8

Apex Language
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An iTunes Store of Enterprise Applications
9
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IdeaExchange Community Empowerment
39
Developer Network Developer Empowerment
Access Build from Anywhere
Free To Join Create Apps
Publish Distribute Instantly
Community of 30K Developers
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Deliver User Success Everywhere
10
Succeed Everywhere!
Publish Once to AppExchange
Create Once
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Unlimited Innovation on the Business Web
Salesforce.com Unlimited Edition
Unlimited Applications
Massive Storage
Unlimited Customization
Development Environment
Premium Support
Mobile Deployment
Enterprise Integration
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• Thank you.
• Luke von Schreiber
• lvonschreiber_at_salesforce.com
• [phone]