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Social Transformation of the Enterprise
     Trust + Vision = Revolution

                                   @PeterCoffee
                                   Peter Coffee
                  VP/CTO & Head of Platform Research
                                  salesforce.com inc.
Safe Harbor
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


                     In Other Words:
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.

                     Everything That
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


                      You See Here
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

                          is Real
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.




                                                                                              @PeterCoffee
Social Revolution



                                                          150M
                                                          conversations
                                                           per day




 2009                           2010     2011   2012
Sources: Twitter, Visible Technologies




                                                       @PeterCoffee
Social Revolution:
Social Networking Surpasses Email
So what?

                                                           1.1
                                      Social Users         billion
                                                           social
                                                           users




                               Email Users

2007   2008   2009    2010            2011

                             Source: Comscore, June 2011




                                       @PeterCoffee
Social Networks: More Than Just ‘Sum of the People’
(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)




                                                   @PeterCoffee
                                   Pop quiz: where is Beijing?
The New Corporate ‘Home Page’
                                                                                          123%
       Fortune 100 Facebook Fan Growth
                 100 Facebook Activity
                                                                                          growth in social
         Fortune
       Fortune 100 Web Traffic Activity
                                                                                          customers
         Fortune 100 Web Growth




                                                                                      “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
Jun 2010                                                                              growth in unique visits over
                                                                                      the past year... 40%
                                                                      Dec 2011
                                                                                      exhibited higher traffic to
Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”;
                                                                                      their Facebook page
Google Social Media Analysis Study                                                    compared to their website.”



                                                                                     @PeterCoffee
The Social Customer Plays by New Rules
• 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



                                                  @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
Business is Social
 Enterprise Adoption of Social Networking

                                                                      70%
                                                                      adoption




                                                                      “   $1.3 Trillion in value can
                                                                          be unlocked through
                                                                          social technologies.
                                                                                               ”
 2008
              2009           2010            2011
                                                              2012
 Source: 2012 McKinsey Global Institute Study: “The Social Economy”




                                                                               @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%;
“We’re blown away…a mobile healthcare
app on Force.com with one person in just 4   • Cut process time from 18 hours
days… The same app built in [previous
                                             to less than 60 minutes
models] would have taken over 3 months”




                                                       @PeterCoffee
Customer, Car, Dealer, OEM – Social Platform
                                       Dealer Visit/
  Advertising/Awareness                 Test Drive                      Delivery                 After-sale Services/
(Traditional + Social Media)          >Dealer Portal                 >Dealer Portal                Connected Car
     >Social Marketing               >Social Clienteling            >Social Clienteling            >Social Service
                                                                                                   >Social Vehicle

                    Inquiry/Engagement
                                                       Purchase/                     Ownership
                     >Social Marketing
                                                       Conversion                   >Driver Portal
                                                                                                                  Ownership
                                                     >Dealer Portal
                                                                                                                   Transition
                                                    >Social Clienteling
                                                                                                                 >Dealer Portal
Baseline Vehicle
  Diagnostics
 >Social Vehicle




                                                     Social Customer Profile

                                                       Social Vehicle Profile

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

                           Automotive OEM Core Systems and Emerging ‘Big Data’ Resources




                                                                                            @PeterCoffee
Social Success – By Every Measure
                                            +32%                                                +29%
                                        Sales Productivity                                      Innovation

           +34%                                                                                              +34%
            Customer                                                                                          Employee
           Satisfaction                                                                                      Satisfaction


                                                                      Your Team;
                                                                    Your Customers




                                                +37%                                 +31%
                                                Campaign                          Employee
                                               Effectiveness                     Productivity

Source: 2012 Third-party survey of 5,500 salesforce.com customers




                                                                                                  @PeterCoffee
The social revolution
is a trust revolution



                  @PeterCoffee
All Assets Secured, All the Time




                   “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.”


                                   @PeterCoffee
All Assets Secured, All the Time




                   “Despite resource sharing,
                    multitenancy will often improve
                    security…

                   “Our research and analysis indicates
                    that multitenancy is not a less secure
                    model — quite the opposite!”



                                   @PeterCoffee
Continuing Availability Improvement




   Spring ’11                     Summer ’11                        Winter ’12

   “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.”



                                                          @PeterCoffee
Continuing Availability Improvement
                                              Index of Imperfection
                                                = -100 * Log10(Availability)
   0.5
  0.45
   0.4
  0.35
   0.3
  0.25
   0.2
  0.15
   0.1
  0.05
    0
          Two 9s   2/2011   3/2011   4/2011    5/2011   6/2011    7/2011   8/2011   Three 9s   9/2011   10/2011   Five 9s


         Spring ’11                                     Summer ’11                                         Winter ’12

         “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.”



                                                                                          @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
Cloud Efficiencies Address Governance Demands
“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



                                                                @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
Canadian Leaders                       salesforce.com
  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




                                              @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
                @PeterCoffee

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Peter Coffee at CloudLaunch Ottawa 2012

  • 1. Social Transformation of the Enterprise Trust + Vision = Revolution @PeterCoffee Peter Coffee VP/CTO & Head of Platform Research salesforce.com inc.
  • 2. Safe Harbor 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 In Other Words: 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. Everything That 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 You See Here 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 is Real 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. @PeterCoffee
  • 3. Social Revolution 150M conversations per day 2009 2010 2011 2012 Sources: Twitter, Visible Technologies @PeterCoffee
  • 4. Social Revolution: Social Networking Surpasses Email So what? 1.1 Social Users billion social users Email Users 2007 2008 2009 2010 2011 Source: Comscore, June 2011 @PeterCoffee
  • 5. Social Networks: More Than Just ‘Sum of the People’ (Arcs Represent Number • Distance of Facebook ‘Friend’ Links) @PeterCoffee Pop quiz: where is Beijing?
  • 6. The New Corporate ‘Home Page’ 123% Fortune 100 Facebook Fan Growth 100 Facebook Activity growth in social Fortune Fortune 100 Web Traffic Activity customers Fortune 100 Web Growth “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 Jun 2010 growth in unique visits over the past year... 40% Dec 2011 exhibited higher traffic to Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; their Facebook page Google Social Media Analysis Study compared to their website.” @PeterCoffee
  • 7. The Social Customer Plays by New Rules • 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 @PeterCoffee
  • 8. Redefining “Customer”…as Social Actor Customers are… • the cars they drive • the things they do • the ways they live • the people they know @PeterCoffee
  • 9. Social Models and a ‘Connected’ Revolution Medicine: sensor-equipped patients & homes reduce office & hospital visits Education: students in external settings learn by practice @PeterCoffee
  • 10. Business is Social Enterprise Adoption of Social Networking 70% adoption “ $1.3 Trillion in value can be unlocked through social technologies. ” 2008 2009 2010 2011 2012 Source: 2012 McKinsey Global Institute Study: “The Social Economy” @PeterCoffee
  • 11. ‘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
  • 12. 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%; “We’re blown away…a mobile healthcare app on Force.com with one person in just 4 • Cut process time from 18 hours days… The same app built in [previous to less than 60 minutes models] would have taken over 3 months” @PeterCoffee
  • 13. Customer, Car, Dealer, OEM – Social Platform Dealer Visit/ Advertising/Awareness Test Drive Delivery After-sale Services/ (Traditional + Social Media) >Dealer Portal >Dealer Portal Connected Car >Social Marketing >Social Clienteling >Social Clienteling >Social Service >Social Vehicle Inquiry/Engagement Purchase/ Ownership >Social Marketing Conversion >Driver Portal Ownership >Dealer Portal Transition >Social Clienteling >Dealer Portal Baseline Vehicle Diagnostics >Social Vehicle Social Customer Profile Social Vehicle Profile Trusted Cloud Platforms: Data Storage, Data Quality, Interactive Applications, Big Data Analytics Automotive OEM Core Systems and Emerging ‘Big Data’ Resources @PeterCoffee
  • 14. Social Success – By Every Measure +32% +29% Sales Productivity Innovation +34% +34% Customer Employee Satisfaction Satisfaction Your Team; Your Customers +37% +31% Campaign Employee Effectiveness Productivity Source: 2012 Third-party survey of 5,500 salesforce.com customers @PeterCoffee
  • 15. The social revolution is a trust revolution @PeterCoffee
  • 16. All Assets Secured, All the Time “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.” @PeterCoffee
  • 17. All Assets Secured, All the Time “Despite resource sharing, multitenancy will often improve security… “Our research and analysis indicates that multitenancy is not a less secure model — quite the opposite!” @PeterCoffee
  • 18. Continuing Availability Improvement Spring ’11 Summer ’11 Winter ’12 “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.” @PeterCoffee
  • 19. Continuing Availability Improvement Index of Imperfection = -100 * Log10(Availability) 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 Two 9s 2/2011 3/2011 4/2011 5/2011 6/2011 7/2011 8/2011 Three 9s 9/2011 10/2011 Five 9s Spring ’11 Summer ’11 Winter ’12 “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.” @PeterCoffee
  • 20. Trust is Earned by Transparency @PeterCoffee
  • 21. 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
  • 22. Cloud Efficiencies Address Governance Demands “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 @PeterCoffee
  • 23. 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
  • 24. Canadian Leaders salesforce.com 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 @PeterCoffee
  • 25. 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
  • 26. 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
  • 27. Thank You petercoffee f acebook.com/peter.coffee pcoffee@salesforce.com cloudblog.salesforce.com @PeterCoffee