Future Normal - MIT IDEebusiness.mit.edu/platform/agenda/slides/7... · Why Every IT Trend Points...

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Future Normal Why Every IT Trend Points to PaaS Peter Coffee VP and Head of Platform Research salesforce.com inc.

Transcript of Future Normal - MIT IDEebusiness.mit.edu/platform/agenda/slides/7... · Why Every IT Trend Points...

Page 1: Future Normal - MIT IDEebusiness.mit.edu/platform/agenda/slides/7... · Why Every IT Trend Points to PaaS . Peter Coffee . VP and Head of Platform Research . salesforce.com inc. Safe

Future Normal Why Every IT Trend Points to PaaS

Peter Coffee VP and Head of Platform Research salesforce.com inc.

Page 2: Future Normal - MIT IDEebusiness.mit.edu/platform/agenda/slides/7... · Why Every IT Trend Points to PaaS . Peter Coffee . VP and Head of Platform Research . salesforce.com inc. Safe

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 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 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 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.

Safe Harbor

In Other Words:

Everything That You See Here

is Real

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’50s ’60s ’70s ’80s ’90s ’00s

PC MITS Altair IBM PC

Macintosh

Windows 3.x/9x/NT

& Linux 1.0

Windows XP & Mac OS X

Mini DEC PDP-8

DEC VAX 11/780

Sun Workstations

& Servers

Sun/ILM Render Farms

Sun/AMD x86 Servers

Niagara CPUs

Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

Nothing happens overnight; nothing goes away

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’50s ’60s ’70s ’80s ’90s ’00s-’10s

Clouds + Edge

Devices X Window

Grid Computing

PC MITS Altair IBM PC

Macintosh

Windows 3.x/9x/NT

& Linux 1.0

Windows XP/7/8 Mac OS X

Mini DEC PDP-8

DEC VAX 11/780

Sun Workstations

& Servers

Sun/ILM Render Farms

Sun/AMD x86 Servers

Niagara CPUs

Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

Page 5: Future Normal - MIT IDEebusiness.mit.edu/platform/agenda/slides/7... · Why Every IT Trend Points to PaaS . Peter Coffee . VP and Head of Platform Research . salesforce.com inc. Safe

All new IT will be connected – or ‘cloudy’… • Since the IBM PC was introduced (Aug.1981 to now)

• Processor speed has risen ~25% per year

• Memory capacity has grown ~40% per year

• Mass storage surging ~50% per year

• Desktop systems are burdened with too much state • File system technology has not addressed new needs • Governance falls short of rising demands

• Trends redefine “best practice” • Bandwidth expansion: ~45% per year • Processor road maps favor shared machines → • Data centralization → superior governance

Server CPU sales trends: Overall, 2011-2015 (TechNavio) 7.1% CAGR “Contributing to this market growth is adoption of cloud computing.” Cloud servers, 2011-15 (IDC) 21% CAGR

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Coherent Code Base and Managed Infrastructure

Your Clicks

Your Code

User Interface

Logic

Database

Metadata representations: Rigorously partitioned data, logic and customizations for multiple customers

Build strategic applications

Customize any aspect

Upgrade when convenient

Preserve IP control

…but a Cloud PaaS is more than a migration

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A PaaS makes upgrades part of the service

> 30 Major Releases

Every Customization & Integration Automatically Upgraded

Always have the Latest Innovations & Technology – or Defer at Local Option

Painless, No Hassle Upgrades

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A PaaS enables a trusted application marketplace

iOS + Android: 100 billion downloads

> 1,800 apps > 1,100 partners > 1.9 M installations ~70% of Fortune 100

using at least one

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Application stores are the royal road for ISVs

In the past year alone, we’ve seen a 27% increase in the number of apps developed on the AppExchange and a 33% increase in customer installs. Most of the apps on the AppExchange are being used and installed regularly. Not only does a customer install an AppExchange app every 40 seconds, but 66% of all AppExchange apps have been installed at least once in the last 30 days. Even more impressive, 81% of apps have been installed at least once in the last 90 days!

Changing the Face of Business One App at a Time By LEYLA SEKA | Published: JULY 25, 2013

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

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

Novelty of ‘cloud’ is already past…

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…but ‘cloud’ is the means for what’s now interesting

Big Data Insights

Mobile Capability

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‘Big Data’ gives the cloud something to do

Elastic capacity for high peak/average ratios

Connectivity to real-world, real-time…reality

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Mobility demands what only clouds can do

Android and iOS combined market share approaching 2/3

Windows at ~1/5…and shrinking

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Multi-device users need decoupling from devices

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What do you get from

Patterns in big data derived from

Social networks of people & devices via

Ubiquitous, 24×7 mobile connection?

1+1+1 = Wonders

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App Requirement

Install & Configure Stack Write Code Deploy &

Load Test Monitor &

Tune Patch &

Regression Test

Only PaaS leverage can keep up Legacy Stack-Based Process – Wherever it Is

IDC White Paper sponsored by Salesforce.com: “Force.com Cloud Platform Drives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009

Half-life of desktop client turnover is ~10 years (WinXP: 50% market share @ 10th birthday)

Average time to build a custom app with software is ~8 months (IDC)

Since 2009, Qualcomm/Android cycle time has dropped to < 4.5 months

PaaS advantage shrinks development time fivefold

Anything slower → subsetting device features or skipping generations

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PaaS = development recalibrated, not just relocated Nucleus Research analyzed Force.com deployments: found

average 4.9 times faster development (range 1.5x-10x) versus Java or .Net

– Custom objects – Administrative tools – Workflow engine – Pre-tested platform

Galorath Inc. compared developers’ Force.com productivity to Java development

– Requirements definition time reduced 25% due to rapid prototyping – Testing effort reduced by (typically) more than 10% – Development productivity of new code 5x greater – Overall project cost 30-40% less

CustomerSat sampled more than 1,100 Force.com development teams during summer 2009

– Average experience: 4 applications deployed to date – Average project cost savings: 48% – Average project acceleration: 5.1x

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“But you’re a proprietary platform: you make me learn things I can’t use anywhere else”

– Open APIs enable options • Run local code and integrate • Run Java or LAMP on AWS • Treat PaaS as an adjunct tool for

– Integration of multi-vendor IT – Access to handheld devices

– Openness is present reality • Agile deployment for Ruby, Node.js,

Clojure, Java, Python & Scala • Deploy instantly with git • Servers, instances, & VMs become

invisible background capabilities

– PaaS leverage is essential

Lock-in is not acceptable

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Shrinking devices accelerating product cycles

“The Portable Intelligence Platform is built on Force.com cloud computing application environment. “The development environment enables easy integration via web services with your company's existing software platforms (e.g. ERP, CRM, Finance etc.). “It is also an ideal environment for the development for the P.I. iPad, Mobile and Developer APIs.”

www.portable-intelligence.com

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Michael Koster, Open Source Internet of Things www.meetup.com/The-Open-Source-Internet-Of-Things-Silicon-Valley/

APIs evolve; ecosystems emerge

Connection depends on abstraction

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Mash-ups from Web and

AppExchange

Native Desktop

Connectors

Integration Tools

AppExchange Apps

ERP

Any System

Finance

Systems of Record

Systems of Engagement

Connection is not rip/replace

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The general case: ‘connected’ revolution

“Through a cloud-based computing model, all this healthcare information is easily and instantly delivered from one end to another with little fuss and without being tied down by the heavy costs of investing in the installations of complicated healthcare software and technology infrastructure and of being burdened by the costs of security breaches.”

Obamacare's Gift to Tech: Cloud Computing TheStreet.com, 19 July 2013

“The flipped classroom has become increasingly popular lately because there are so many new technologies that make out-of-classroom content creation a little bit easier,” notes Chris Millet, assistant director of Education Technology Services at Penn State University. “And there are drop-dead-simple technologies that keep the flow of idea generation and exchange moving inside the classroom to support active learning.”

6 Expert Tips for Flipping the Classroom CampusTechnology.com, 23 January 2013

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Connected computing leaves the desk behind

“Desktop metaphor” is 25 years old – Xerox… – Apple… – Microsoft…

…but today,

1/3 of U.S.

adults own

at least one

tablet…

…and usually don’t use it at a desk

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It’s time to aim higher

1970s: front-panel switches – Think about memory and storage

– 1st gen operating system: “Load my program”

1980s: command lines – Think about programs and files

– 2nd gen operating system: “EDIT MY_FILE”

1990s: desktop metaphor – Think about ‘documents’ like spreadsheets

– 3rd gen OS: double-click an icon

It’s time for the next generation – A platform to think about…the customer

Page 25: Future Normal - MIT IDEebusiness.mit.edu/platform/agenda/slides/7... · Why Every IT Trend Points to PaaS . Peter Coffee . VP and Head of Platform Research . salesforce.com inc. Safe

What’s PaaS is prologue – to what’s to come

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Q&A? @petercoffee linkedin.com/in/petercoffee

f facebook.com/peter.coffee [email protected]