carolina saas users group
DESCRIPTION
TRANSCRIPT
Carolina SaaS Users Group
Kevin Egan,
Regional VP, Corporate Sales
Salesforce.com
May 2007
Agenda
Origins of SaaS
Today‟s marketplace
Salesforce.com‟s approach
Q&A
Source: Gartner Inc.,
The Consumer Web Platforms
Q: Why can’t business applications
be as easy as the Consumer Web?
A: (they can… )
Everything is Going SaaS!
No applications market is untouched…
Office
https://www.google.com/hosted http://smallbusiness.yahoo.com/email/
www.zimbra.com
many others…
Word
www.writely.com
www.writeboard.com
www.inetword.com
many others…
Spreadsheets
www.numsum.com
www.irows.com
many others…
Database
www.dabbledb.com
www.Lazybase.com
www.quickbase.com
many others…
www.buildonline.com
www.blinksale.com
many others…
Document Mgmt
www.pxn8.com
www.pixoh.com
many others…
Graphics
www.linkedin.com
www.plaxo.com
many others…
Contacts Project Mgmt.
www.basecamp.com
www.jot.com
www.dreamfactory.com
many others…
Agenda
Origins of SaaS
Today‟s marketplace
Salesforce.com‟s approach
Q&A
Source: Gartner Inc.,
Software as a Service – What is it?
An application owned, delivered and managed
remotely by one or more providers
Where the provider delivers an application based
on a single set of common code and data
definitions, which are consumed in a one-to-many
model by all contracted customers at any time
On a pay-for-use basis or as a subscription based
on usage metrics
Source: Gartner Inc.,
What is Multi-Tenant On-Demand?
Faster Innovation
Economies of Scale
Scalability
Automatic Upgrades vs.
Key Benefits of SaaS
Why the Business Side Loves SaaS
Low, predictable costs
Easy to use, up and running in
weeks
Subscription model demands
attentive providers
Lower Risk
Greater Success
Why IT Love SaaS
Easier to customize and integrate
Always on latest technology
More responsive to business
Frees up resources spent on
maintaining existing systems
Focus on Delivering
Strategic Value
On average, about 70 percent of all IT-related projects fail to meet their objectives. - InfoWorld
Agenda
Origins of SaaS
Benefits
Today‟s marketplace
Salesforce.com‟s approach
Q&A
Source: Gartner Inc.,
31% Growth
(CAGR) for On-
Demand CRM
61% Growth
In Enterprise Adoption
of SaaS
25-50%
Penetration
of Software Industry
By 2009-2013
2004 2010
$2 Billion 25%
61%
2005 2006
SaaS is Replacing On-Premise Faster than
Anyone Imagined…
Success with On-Demand Solutions Causes SaaS To Explode CIO Priority Resolution -- Start a Significant Software-as-a-Service
Implementation as a Trial and Education
“51 percent of organizations are using at least one on-demand
application.” --- Nucleus Research and KnowledgeStorm
“Software as a Service market potentially exceeds 40% of the total
software market - or $50 billion by 2009.” --- TripleTree
“63% of companies with more than 1,000 employees have adopted
some on-demand technology, while 46% of those with fewer than
1,000 employees have.” --- Nucleus Research and KnowledgeStorm
(Sources: TripleTree, SOFTWARE AS A SERVICE UPDATE, Q4 2006 and CRM Buyer
Study: More Large Firms Now Deploying On-Demand Apps, By Erika Morphy, Feb. 12,
2007)
(Source: Gartner 2007)
SaaS Distribution in 2005 by Application
Type and Vertical Market
0
5
10
15
20
HR Finance Compliance Other Doc. Mngt .
0
5
10
15
20
Gvt Retail Other Media
By Application
By Vertical Market
Percent
CRM Procur è rent Collaboration
FS Man Uti IT
Percent
CRM Consulting Web Conferencing Sales Performance Wireless
Applications
Sales Intelligence Hosted Contact
Center
Marketing & Sales
Acceleration
On Demand
Integration
Quickbooks
Integration
Wireless
Infrastructure
Information
Mapping
CRM Consulting
Sales Prospecting Accounting
Integration
Tools Hosted Contact
Center
Data Quality
Toolset
Technology
Services
Email Marketing Email Integration Wireless CRM Wireless CRM Channel
Intelligence
Marketing
Tools Integration Wireless Devices &
Applications
Tools Wireless Tools
Pen-based
Automation
Billing Data Management Voice Access ERP On Demand Integration
SaaS – Beyond CRM
Salesforce.com’s Partner Ecosystem Over 5,000 Developers and 200 ISVs – and Growing Rapidly
Agenda
Origins of SaaS
Today‟s marketplace
Salesforce.com‟s approach
Q&A
Source: Gartner Inc.,
Customer Use of Salesforce.com Has Evolved
CRM
Applications
• Sales
• Marketing
• Service & Support
Customized
and Integrated
• Meta Customizations
• Rich Web Services
Integrations
ERP Legacy
Platform
Customers building
new On-Demand
apps
Ecosystem
Partners building
integrated solutions
Directory
Directory of
On-Demand
Business Apps
Why is Everyone So Excited About The
AppExchange?
251+ Applications
8,600+ Installed Applications
122,000+ Test Drives
Numbers as of May 15, 2006
—Nicole Miller
Operations Analyst
TARGUS Information Corp.
What’s on The AppExchange Directory?
Apps from
Salesforce.com
Partner Apps
Apps from the
Community
Components
• Installed and
customized a quoting
app from the
AppExchange
• Developed a
sophisticated purchase
order system
• Extended the
AppExchange Project
Management App to suit
Altium‟s needs
• Rapid deployment of
critical business
applications
• Reduced application
support burden for IT
• IT can now focus
attention on strategic
activities like getting
Altium‟s products to
market
Altium used the AppExchange Platform to deploy six critical
business applications in only four weeks
Alan Perkins CIO
Altium Corporation
Sales
Sales
Service & Support
Marketing
Campaigns
Customer Requests
Quoting
Purchase Orders
Project Management
Electronic Components
Unlimited Edition
Q&A
What Opportunities Does The AppExchange Present
Ease of Integration
• Email Marketing
• Internet Telephony
• Data Quality
• Configuration Tools
Automate More
Business Processes
• Operations
• Human Resources
• Finance
• Administration
Extended CRM
• Pre - Sales Processes
• Sales and Marketing Productivity
• Vertical Expertise
• Post - Sales Business Processes
What is the value of all of these apps and
components?
What if you take advantage of the best ideas
from a community of 30,000 customers?
What if you could get partner solutions
that worked „out of the box‟?
What if you could extend your
success with salesforce.com to
other departments?
Ease of Integration
Automate More
Business Processes
Extended CRM
Consistent Growth in Customers Success in Selling to Companies of All Sizes
Based on publicly available customer and subscriber numbers. Bars represent fiscal quarters.
27,100 Paying Customers
October 31, 2006
Total Customers
Fiscal Year
Proven Scalability and Performance Delivering 60 Million Transactions Daily
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
4,000,000,000
FY05
Q1
FY05
Q2
FY05
Q3
FY05
Q4
FY06
Q1
FY06
Q2
FY06
Q3
FY06
Q4
FY07
Q1
FY07
Q2
FY07
Q3
0
200
400
600
800
1,000
1,200
1,400
Total Transactions
Per Quarter
Average Page
Response
Page Response
Time (ms)
Total
Transactions
per quarter
Salesforce Winter ’07 is Live for 556,000 Users 21st Generation of Success
Biggest Release
Massive Innovation
Gartner: On Demand TCO Lower Over 5 Years
On-Demand Costs
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Subscription $336K $336K $336K $336K $336K
Subtotal $336K $336K $336K $336K $336K $1.7M
On Premise Costs
License $500K $500K
Maintenance $100K $100K $100K $100K $400K
DBA Support $135K $135K $135K $135K $135K $675K
Upgrades $150K $150K
Hardware $100K $100K
Subtotal $735K $235K $235K $485K $235K $1.825M