Beyond cloud as IT replacement, to cloud as assumed environment for radical acceleration of business process and global expansion of customer community

1. Open Networks,
Trusted Clouds
The Road Map to „Social‟ Security
Peter Coffee
VP / Head of Platform Research
salesforce.com inc.
@petercoffee
petercoffee.ile@gmail.com

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3. Public Clouds of Public Trust:
The End of „Forbidden Zones‟
General Economic Health & Defense &
Transportation
Government Development Human Services Public Safety
Science &
Environment
Political Campaigns & Advocacy Culture & Education

4. The „Power Lines‟ are Cloud Connections
(Arcs Represent Number • Distance of Facebook „Friend‟ Links)
Pop quiz: where is Beijing?

5. Because…Peter Drucker Had It Right
 “The typical large organization, twenty years hence,
will be composed largely of specialists who direct and
discipline their own performance through organized
feedback from colleagues and customers.”
 “It will be a knowledge-based organization.”
Peter F. Drucker, in The New Realities
…in 1989

6. Old IT Models Don’t Liberate Knowledge
 Complex legacy IT portfolios make the simplest data
integrations an overwhelming task
 Cumbersome, brittle integrations demote end users to
information consumers
 Path of least resistance
then over-emphasizes
rear-view mirror views of
historical data – or deep
inspection of recent past

7. The Critical New Role of „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

8. Ten Year Computing Cycles
10X more users with each cycle
“Whereas earlier entrepreneurs looked at
the Internet and saw a network of
‟10s Social
computers, Zuckerberg saw a network
Revolution
of people.” – Time, 15 Dec. 2010
‟00s Mobile
‟90s Cloud
‟80s Desktop Computing
Client/Server Cloud
‟70s Mini Computing Computing
‟60s Computing
Mainframe
Computing
Data Business Process Web Mobile Social
Management Logic Apps Automation Apps Apps Apps
Apps Apps

9. Social Revolution:
Social Networking Surpasses Email
1.1
Social Users billion
social
users
Email Users
2007 2008 2009 2010 2011
Source: Comscore, June 2011

10. Social Revolution:
The WAWKI* is Shrinking
2010
Sources: Ben Elowitz, Wetpaint / comScore
2011

11. Beyond Just „Being Social‟
 Where are key players already having conversations?
 What facilities exist for tapping that stream?
 What are the cultural norms of that community?
 When should you be present?
 How should you participate?
 Who will represent you?
 How will that process scale?
 What will you learn?
 How will you change?

12. Whose Knowledge Is It, Anyway?
 Innovation “goes rogue” when:
– Products are open-source and/or
highly configurable/customizable
– Some users have incentive to innovate
– Some innovators have incentive to share
– Diffusion of innovations is inexpensive
 The user conversation will take place
– Users can readily find each other
– Users turn to each other for affirmation
as well as for assistance
– You can host the conversation

13. The Customer Redefines the Product
“ Ideas has been an unbelievable home run. We are loving
it―the voice of the customer is totally present at Starbucks
in a brand new way, thanks to the Force.com platform.”
Chris Bruzzo
CTO, Starbucks

14. What Role for „The Crowd‟?
 Sift more dirt, find more gold
– Gold mines are viable at 1 g. Au / ton of ore
– Costs of mining crowdstreams continue to fall
 The oddly opposite models:
– Consensus surpassing the sum of the parts
– Individual contributions, appropriately incented
 Can the crowd survive its success?
– “Even mild social influence can undermine…wisdom of crowd…”
Proceedings of the National Academy of Sciences, 16 May 2011
wired.com/wiredscience/2011/05/wisdom-of-crowds-decline
– Vital elements:
Diversity, Independence, Decentralization, Aggregation

15. „Social‟ is a model, not an application
 Collaborative
process creation
 Best practice
sharing Andrew Leigh. I need to create a new
customer service process for the iPad, can
 Integration with you guys help?
New process created: iPad Tier 1 Support
social channels Process (Goals: Run time, 5 min)
 Social process Steve Wood. Great I can help with the case
escalation by linking in the Apple Escalation
Process.
monitoring
Varadarajan Rajaram. Yes, I know this
product well there are a bunch of solutions I
can build into this process.

17. Chatter for 320,000 Toyota Vehicles
Employees
Social Customer
Profile
Dealers/Distributo
Toyota Friend
rs
Mobile
Toyota Friend
1-800-4-My- Website
Toyota
Manufacturing/ Toyota Friend
Finance on Youtube
Toyota Friend on
Toyota Friend
Toyota Friend Facebook
on mixi
on Twitter

18. 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

19. Enterasys Devices Are Now Social
Network
congestion
in Asia.
Facebook, Twitter, and
Chatter notifications
Users receive alarms
and alerts
Enables rapid
response
Reduces system
downtime

20. Cloud leverage empowers innovators
Rapid 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%
“We‟re blown away by how we built a mobile Cut processing time from 18 hrs to
healthcare application on Force.com with one less than 60 min
person in just 4 days…
The same app built in .NET would have taken
over 3 months”

21. 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… Simply put,
connected devices make connected
customers.”
Richard Schwartz, President and CEO, Macheen

22. Cloud Concerns 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.”

23. Data Stewardship is a Practice, not a Technology
 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

24. Becoming „Securely Social‟
 What is the organization‟s mission?
 What information supports that mission?
 Where does it originate?
 Who holds it?
 Who can see it?
 What events change it?
 When is that important?
 How do people know?
 How can people act?

25. Trust is Essential to Cloud Adoption
 Robust infrastructure security
 Rigorous operational security
 Granular customer controls
– Role-based privilege sets
– Convenient access control & audit
 “Sum of all fears” scrutiny and response
– Multi-tenancy reduces opportunities for error
– The most demanding customer sets the bar

26. “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

27. 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
• Already more popular than email

28. In Conclusion
 „Cloud‟ is the things that you want someone else to do, but:
– „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

29. If you want a radical improvement…
…you can‟t settle for incremental change

30. Peter Coffee
VP & Head of Platform Research
pcoffee@salesforce.com Q&A?
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twitter.com/petercoffee
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