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Connection Is The Goal
    (A View from Above the Cloud)

                         @PeterCoffee
                         Peter Coffee
             VP & 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
“Someday, you’ll have to tell your kids about
 phones that had wires…and TVs that didn’t”
                                  - Scott McNealy


        “Digital” Camera?
        “Cellular” Phone?
        “Cloud” Computing?


                                @PeterCoffee
This Is How Novelty Ends




“Digital Camera”: every December, it’s still news to someone

                              “Cloud Computing”: as more use it, fewer ask about it



                                                          @PeterCoffee
‘The Cloud’…is now the medium of ‘The Connections’
 (Arcs Represent Number • Distance of Facebook ‘Friend’ Links)




                                                    @PeterCoffee
                                    Pop quiz: where is Beijing?
Your ‘Brand’ is Built On Connection...
                               …not Control
      Fortune 100 Facebook Fan Growth
        Fortune
                100 Facebook Activity                                                     “We analyzed the website
      Fortune 100 Web Traffic Activity
        Fortune 100 Web Growth                                                            traffic of Fortune 100
                                                                                          websites based on ‘unique
                                                                                          visits’. The study revealed
                                                                                          that 68% of the top 100
                                                                                          companies were
                                                                                          experiencing a negative
                                                                                          growth in unique visits over
                                                                                          the past year... 40%
                                                                                          exhibited higher traffic to
                                                                                          their Facebook page
Jun 2010                                                                                  compared to their website.”
                                                                    Dec 2011


Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; Google Social Media Analysis Study




                                                                                       @PeterCoffee
Broken Institutions Need ‘Connection’ Revolution

                       Medicine: sensor-equipped
                       patients & homes reduce
                       office & hospital visits




          Education: students
           in external settings
              learn by practice


                                   @PeterCoffee
Connection Is Not Rip/Replace
                                                                     Systems of
                                                                    Engagement




Mash-ups from                Integration Tools
                  Native                            Systems of Record
  Web and        Desktop
AppExchange     Connectors
                                                 AppExchange Apps    Any System




                                                      ERP             Finance




                                            @PeterCoffee
Connecting Machines; Processes; People
• Connecting Machines
  – ‘OnStar’ network daily handles 150k human requests…
    …and 130k machine-originated requests
  – Some are critical, e.g. air-bag deployments
  – Others may be infotainment, e.g. mileage ‘leader board’
• Connecting Processes
  – General Electric wind-farm management: 123 turbines
  – Field-wide speed optimization, anti-icing behaviors
  – 3% output increase  US$1.2M/year added revenue
• Connecting People
  – Asics delivers RFID-triggered messages to marathoners



                                                  @PeterCoffee
It’s Happening Today – Not Tomorrow




                           @PeterCoffee
The connection revolution
requires a trust revolution



                     @PeterCoffee
Governance Demands Challenge Legacy Models
•   Global cooperation: “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
Governance Demands Challenge Legacy Models
“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
Cloud Efficiencies Rise to the Challenge




                  “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
‘Connected IT’: Dep’t of Adult Supervision
– Trust
    Dynamic threat environments; rising community awareness and expectations
– Governance
    Global markets; narrow perspectives; ‘crown jewel’ data
– Mobility
    Productivity improvement; BYOD challenges
– Social Interaction
    External communities; internal collaboration; high-velocity operations
– Talent Development and Technology Change
    Where will we get tomorrow’s programmers? How will practices change?
    “In 2011, there were still five unemployed people for every job available. Yet American
    businesses in 2011 reported more than three million job openings they have been
    unable to fill because of a skills shortage.” – Edward Luce, Financial Times



                                                                 @PeterCoffee
Agile, Scalable Connection Demands Cloud Platforms
  On spec, on time, on budget deployment of fully tested, proven
   connection 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, world-class security
   and dynamic device support 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
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/operators
    – various public-sector agencies




                                           @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/operators
    – various public-sector agencies




                                           @PeterCoffee
Thank You
 petercoffee
 linkedin.com/in/petercoffee
 facebook.com/peter.coffee
 pcoffee@salesforce.com
              @PeterCoffee

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Connection is the Goal: A View from Above the Cloud

  • 1. Connection Is The Goal (A View from Above the Cloud) @PeterCoffee Peter Coffee VP & 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. “Someday, you’ll have to tell your kids about phones that had wires…and TVs that didn’t” - Scott McNealy “Digital” Camera? “Cellular” Phone? “Cloud” Computing? @PeterCoffee
  • 4. This Is How Novelty Ends “Digital Camera”: every December, it’s still news to someone “Cloud Computing”: as more use it, fewer ask about it @PeterCoffee
  • 5. ‘The Cloud’…is now the medium of ‘The Connections’ (Arcs Represent Number • Distance of Facebook ‘Friend’ Links) @PeterCoffee Pop quiz: where is Beijing?
  • 6. Your ‘Brand’ is Built On Connection... …not Control Fortune 100 Facebook Fan Growth Fortune 100 Facebook Activity “We analyzed the website Fortune 100 Web Traffic Activity Fortune 100 Web Growth traffic of Fortune 100 websites based on ‘unique visits’. The study revealed that 68% of the top 100 companies were experiencing a negative growth in unique visits over the past year... 40% exhibited higher traffic to their Facebook page Jun 2010 compared to their website.” Dec 2011 Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; Google Social Media Analysis Study @PeterCoffee
  • 7. Broken Institutions Need ‘Connection’ Revolution Medicine: sensor-equipped patients & homes reduce office & hospital visits Education: students in external settings learn by practice @PeterCoffee
  • 8. Connection Is Not Rip/Replace Systems of Engagement Mash-ups from Integration Tools Native Systems of Record Web and Desktop AppExchange Connectors AppExchange Apps Any System ERP Finance @PeterCoffee
  • 9. Connecting Machines; Processes; People • Connecting Machines – ‘OnStar’ network daily handles 150k human requests… …and 130k machine-originated requests – Some are critical, e.g. air-bag deployments – Others may be infotainment, e.g. mileage ‘leader board’ • Connecting Processes – General Electric wind-farm management: 123 turbines – Field-wide speed optimization, anti-icing behaviors – 3% output increase  US$1.2M/year added revenue • Connecting People – Asics delivers RFID-triggered messages to marathoners @PeterCoffee
  • 10. It’s Happening Today – Not Tomorrow @PeterCoffee
  • 11. The connection revolution requires a trust revolution @PeterCoffee
  • 12. Governance Demands Challenge Legacy Models • Global cooperation: “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
  • 13. Governance Demands Challenge Legacy Models “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
  • 14. Cloud Efficiencies Rise to the Challenge “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
  • 15. 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
  • 16. ‘Connected IT’: Dep’t of Adult Supervision – Trust Dynamic threat environments; rising community awareness and expectations – Governance Global markets; narrow perspectives; ‘crown jewel’ data – Mobility Productivity improvement; BYOD challenges – Social Interaction External communities; internal collaboration; high-velocity operations – Talent Development and Technology Change Where will we get tomorrow’s programmers? How will practices change? “In 2011, there were still five unemployed people for every job available. Yet American businesses in 2011 reported more than three million job openings they have been unable to fill because of a skills shortage.” – Edward Luce, Financial Times @PeterCoffee
  • 17. Agile, Scalable Connection Demands Cloud Platforms  On spec, on time, on budget deployment of fully tested, proven connection 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, world-class security and dynamic device support 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
  • 18. 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/operators – various public-sector agencies @PeterCoffee
  • 19. 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/operators – various public-sector agencies @PeterCoffee
  • 20. Thank You petercoffee linkedin.com/in/petercoffee facebook.com/peter.coffee pcoffee@salesforce.com @PeterCoffee