Salesforce: Force.com provides the building blocks necessary to build any kind of business app, simple or sophisticated - and automatically deploy them as a service. The multi-tenant Force.com platform has a complete feature set for the creation of business applications including the ability to create any database on demand, any custom workflow, the Apex code programming language for building complex logic, the Force.com Web Services API for programmatic access, mash-ups, and integration with other applications and data, and Visualforce, a framework to create any user interface.
What exactly is AppExchange? What kind of applications does it host?
A marketplace for business applications, AppExchange provides a complete environment that enables developers and partners anywhere in the world to develop, publish, market, and distribute their products to a global audience and instantly engage with salesforce.com's 55,000+ customers. Applications built natively on the Force.com platform run entirely on demand, eliminating the need for developers or partners to create and manage their own data center or infrastructure. Partners benefit from building on the Force.com platform, and are able to leverage salesforce.com's world-class security, scalability and reliability for their own solution.
Today there are more than 800 applications available on the AppExchange, solving a wide variety of business issues they not only dramatically extend Salesforce CRM, but also include diverse new areas such as ERP, document management, project management, credit and collections, professional services management, human resources and many, many others. These applications are being built by Indian companies like CRM Orbit and Theikos, small start ups and major global tech nology leaders like CODA, Fujitsu, Adobe and Skype.
There s so much confusion and overlap between terms like platform as a service, infrastructure as a service, cloud computing, SaaS, what s the difference?
There are a new generation of leaders rising in this cloud computing space: salesforce.com, Google, Amazon.com -- all of us are building platforms for cloud computing. We all believe that the future of the computing industry is in the cloud and are in fact partners on many levels. But as you say, we have different offerings, and the cloud computing space is becoming quite crowded as it gains popularity. Companies need to look closely at the various types of services being offered, and decide what is best to suit their needs.
Software-as-a-Service is really about applications. It means that there is no software to install or maintain on the computer applications are delivered over the Internet and can be accessed anywhere, anytime with only a browser. The SaaS model has a number of benefits: applications are easy to use, lower cost, and do not have the maintenance and upgrade hassles of traditional software. In addition, the SaaS model does not require the large up-front investment in software and hardware which makes it lower risk. Since companies generally pay on a per-user, per-month basis, licenses do not go unused and shelf-ware becomes a problem of the past.
Cloud computing is about harnessing the power of the Internet to deliver computing services to users. Cloud computing encompasses both Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS). In the case of salesforce.com, we are an enterprise cloud computing company. We work like Google and eBay. We deliver business cloud applications (our SaaS Salesforce CRM, which is our flagship product) and the Force.com platform services via the web, with no software or hardware to buy. With the Force.com platform, you can build, test, deploy and run applications in the cloud. Now a CIO can develop a new app quickly, test it out, and deploy it. Security, reliability, backup, scale-- they all become non-issues. IT departments can spend more time on serving business needs and less time on serving the needs of their infrastructures. We have been amazed at what companies as diverse as Dell, the Japan Post and BT are doing with the Force.com platform. Anyone who is following cloud computing should watch this area-- it's very vibrant, very innovative.
The current economic climate is causing customers to take a hard look at how they are spending money on technology. In these days of scare capital and tight credit, big-ticket purchases for hardware, software, and data centers just don t make sense. Cloud computing has a better answer: low, predictable costs, flexible, pay as you go deployments, and fast results. Customers don t want to finance multi-million dollar software purchases, and then back that up with big purchases of hardware and data center services. In this environment, companies just don't have the credit to do that. What's worse, these projects then take years to implement, and once you do, you are stuck paying 20% or more in maintenance for nothing. These factors are causing more companies to look closely at cloud computing and salesforce.com than ever before.
What is also exciting about this movement to cloud computing is that it is enabling a new class of entrepreneurs. They don't need to build offices, distribution centers, data centers or really infrastructure of any kind. This will unlock huge pools of innovation around the world, since the cost of developing, distributing and supporting apps has dropped dramatically. I look at a company like Appirio, which is building apps on our platform. They need relatively little capital to grow and can tap into vast IT expertise in India. Appirio is one of a new generation of companies that will be very nimble and innovative.
Leveraging the Internet, and building on Cloud-based platforms like Force.com, these new entrepreneurs need relatively little capital to get started and grow. The web offers great marketplaces like the Force.com AppExchange - that provides global distribution. This means that we are entering a new era of democratization for developers around the world, a huge shift in power in the software industry, and for customers, an explosion in choice and innovation.
A recent report by Mckinsey & Co states that adopting the cloud model will be a money-losing mistake for large corporations. What is your take on that?
Cloud computing is suitable for both large and small businesses. In times like these, people are looking for alternatives major capital expenditures and massive maintenance costs. Thus companies (both enterprises and SMBs) are turning to cloud computing and salesforce.com because it lowers the cost, complexity and risk of deployments.
Over the next five years, IDC expects spending on IT cloud services to grow almost threefold, reaching $42 billion by 2012. More importantly, spending on cloud computing will accelerate throughout the forecast period, capturing 25% of IT spending growth in 2012 and nearly a third of growth the following year.
It s been 5 years since Salesforce launched its web-based CRM, you have not introduced any new services since, also the planned introduction of ERP apps has not happened. Why?
For the past 10 years, salesforce.com has concentrated on the development of killer applications across CRM. In 1999, salesforce.com launched with our flagship sales force automation application, and have continued to build on that adding customer service and support, and marketing functionality. We typically add new functionality 3 times per year across our CRM products which is an incredible pace of innovation. As a company, we are committed to having the best CRM product out there versus distracting ourselves by running in too many directions. Today we are considered the leader in CRM by analyst firms like Gartner, and are very proud that we continue to lead the market in innovation on that front.
There is a lot of opportunity left in CRM, so I wanted to provide some further detail around the innovation we are driving. There are still plenty of companies who have spent millions trying to automate their sales force and they have received little in return. Even if they got those systems up and running, they are paying huge maintenance fees for zero innovation. They are paying tolls on the road to nowhere, and you'll see us go after these captive customers aggressively. We are ready to make them successful with what we now call the Sales Cloud.
We see another huge opportunity in customer service and support. These days, when you have an issue with a product or service, what do you do? You probably Google your query, or increasingly you are likely to turn to your social networks on Facebook or Twitter. Maybe then you phone the call centre. The reality is these call centers are cut off from the web. Agents can't push solutions out to portals easily, nor can they benefit in real time from the knowledge that is being created by the consumer community. We call the unification of all this information the Service Cloud. Because it runs entirely in the cloud, it is always up to date and is far less costly than traditional solutions.
Over the next 10 years, we will continue to drive cloud computing forward. While we continue focus on CRM, the Force.com platform is another major area for us. We think this is a huge opportunity and will be another core focus for us moving forward.
If you talk about the Indian market, how have concepts like SaaS, cloud computing and your own service offerings picked up?
According to Springboard Research (January 2009) report Software as a Service in India: An Overview :
Indian SaaS market will register a compounded annual growth rate of 76% between 2007-2011 and reach US$260 million in revenues by 2011.
The Indian SaaS market is poised for high growth with 76% of survey respondents, who have not adopted SaaS, planning to do so within the next 12 months.
SaaS-based ERP and CRM solutions are likely to see highest demand in the country.
Analysts say this positions India as the fastest growing SaaS market in Asia Pacific, growing with a CAGR of approximately 71%, and is expected to reach $267 million by 2011 (according to Frost & Sullivan).
Cloud computing has witnessed quick adoption by product and service companies in the banking, finance and healthcare verticals. Other verticals like IT, BPO, manufacturing, pharmaceuticals, government and education are also embracing this model.
The beauty of cloud computing is that is democratizes the applications industry by allowing businesses of all sizes to make innovation their primary focus, not infrastructure. With Salesforce CRM and the Force.com platform, all businesses, regardless of their vertical industry or geographic location can buy, build and deploy solutions that are right for them.
Salesforce.com believes in continuous innovation and demonstrated this with the announcement of its Spring 09 release in February 2009, the 28th major product release and with the latest Summer 09 release the company s 29th generation release in less than 10 years. In the last year, salesforce.com hit major milestones by recording 100,000 custom applications built on the Force.com platform and more than 124,000 Force.com developers.
Globally what are the trends likely to be on the cloud computing and SaaS fronts in the future?
As a pioneer in cloud computing, salesforce.com spent its first 10 years focused on delivering a great application, salesforce CRM. While we are committed to maintaining our leadership in the CRM space, we see huge potential in the custom application development market as well. The Force.com platform enables customers, developers and partners to build powerful applications that deliver the benefits of multi-tenancy across the enterprise, and is the fastest way to build apps in the cloud. There is no hardware, software or datacenter equipment to buy, provision, and maintain. We take care of that for you on the most secure, proven and reliable platform in enterprise cloud computing. In the past year we have continued to build out this strategy and inked partnerships with Amazon.com Web Services and Facebook, extended our existing partnership with Google, and launched Force.com Sites.
For internal IT departments, we envision that the Force.com platform as a service will completely change the role of IT departments. The break-fix-patch-upgrade components of IT will become irrelevant. But it also creates a new role for IT departments: innovation. When you can develop, deploy, and run apps in the cloud, without having to worry about buying and maintaining hardware and software, you can really add value to the business.
Going forward, what new initiatives are you planning in the Indian and global markets?
Sales force.com has come up with its latest Summer 09 release the company s 29th generation release. Summer 09 will deliver new features across the Service Cloud, the Sales Cloud and the Force.com platform delivering innovation to every department and every user.
Some of the new features that will be introduced for the Service Cloud with Summer '09 include:
Real Time Partner Collaboration: For the first time, customer service agents will be able to collaborate in real-time with third party service partners on a single version of every case - ensuring that everyone has access to the same information. Companies gain a competitive edge by delivering a consistent and measurable service experience to every customer, regardless of the channel the customer chooses.
Case Workflow Optimization: With Summer '09, customer service agents will be able to automatically trigger an email alert to the appropriate person based on a change in the comments section of a case. Now, companies can respond even faster to customer requests and issues.
Community Management Tools: Online communities have grown in popularity, so much so that many companies have multiple communities to serve a diverse set of audiences. Summer '09 will provide companies with the robust set of tools they need to scale as the size and number of online communities grow.
Summer 09 will deliver new features to the Sales Cloud focused on helping companies close more deals and grow their business including:
Visual Charting: Sales reps and managers will be able to leverage more powerful analytic tools with the release of Summer '09, including new displays, colors and two entirely new chart types. Being able to access this information in real-time and in a host of customizable displays, will enable companies to make quicker and more well informed business decisions.
Triggered Emails: With Summer '09, a sales rep will be able to set up an automated email alert based on prospect behavior, and create custom campaign fields to manage marketing offers and campaigns more effectively. Companies will be able to generate more leads by creating these sophisticated marketing campaigns.
Deal Team Management: Colleagues that sales reps bring in to assist in closing a deal will now have access to the deal information in the opportunities tab with Summer '09. When the right people have access to the opportunity's information, companies can close more deals and grow their business.
Summer '09 release will make it even easier to build and run custom applications on Force.com. New features will include:
Workflow Visualizer: As company approvals and procedures get more complex, Summer '09 simplifies the process by making it completely visual, interactive and easy-to-use. Companies can now map their business processes through a visual representation, which will make managing complex workflows simple.
Visualforce for Dashboards: Visualforce for Dashboards will allow developers to leverage Visualforce to create rich, customized dashboards and help pages for the first time.
Advanced Application Tracking: With Summer '09, salesforce.com partners can now manage and upgrade custom applications, while maintaining backwards compatibility, just like salesforce.com.
With this new offerings Salesforce.com is the only company that can instantly and reliably provide the latest innovations to all customers, without the hassles of upgrades and maintenance. Summer 09 proves the value of the cloud computing model for customers by bringing major product breakthroughs to everyone at no additional cost.
Refer to: http://www.cxotoday.com/India/Interview/Cloud_Computing_Aiding_Entrepreneurs_Salesforce/551-102308-906.html