Software as a ServiceSo t a e as a Se cein the Public Sector
Kaveh VessaliVice PresidentPublic Sector SolutionsSalesforce.com
Impacts of The Internet as a technology platform– How we work
– Constituent expectations
– How we collaborate
G l f t dGoals for today– Clear definition of SaaS
– Public Sector benefits and case studies
Principles of SaaS / The Internet – Transparency
– Democratization
– Collaboration
The World in 1999when Salesforce.com was founded
No DSL, Cable Modems, or high speed bandwidth in homes
56K dial-up in hotels
Websites: Little Data & Simple HTML interfacesp
No SmartPhones or MP3/MP4 Players
N di it l USB K Fl h MNo digital cameras, USB Keys, or Flash Memory
My World Today
Credit CardsMy Yahoo Google Brokerage Banking
BlogsOpen Table BlackberrySalesforcewashingtonpost com gOpen Table ywashingtonpost.com
The Consumer Web Platforms
Eas to se E t I t tEasy-to-usePoint and Click CustomizationHigh Availability High Performing
Easy to IntegrateOpen API / Web SOAEfficient MaintenanceSeamless UpgradesHigh Performing Seamless Upgrades
Q: Why can’t business applications be as easy as the Consumer Web?as the Consumer Web?
A: (they can… )
Salesforce.com’s Mission: SaaS Innovation Driver, Catalyst & Evangelist
Software as a ServiceClient/ServerM i f Software as a Service
On-PremiseMainframe
21st
Century PlatformsLate 20th
Century PlatformsMid 20th
Century Platforms
Salesforce.comGrowing Towards the First $1 Billion SaaS Company
• 41,000 Successful Customers41,000
CustomersGrowth in Customers
7%14%
7%4%
#2 #3#4
#5• 1,000,000 Subscribers
• >$850M revenue run rate*
50%All others18%• NYSE: CRM
• Founded 1999, HQ San Francisco
• 2,500+ Employees; 40 Offices; 20 Countries, 15 Languages 2001 2008200720062005200420032002
Fiscal Year
* Run rate based on FY08 Q4 reported results
SaaS is Replacing On-Premise Faster than Anyone Imagined…
31% Growth (CAGR) for On-
25-50% Penetration
61% GrowthIn Enterprise Adoption(CAGR) for On
Demand CRM of Software IndustryBy 2009-2013
$2 Billi
In Enterprise Adoptionof SaaS
2004 2010
$2 Billion25% 61%
2005 20062005 2006
Enterprise Scale, Trusted Security, Operational Savings
~40,000~40,000 ~30,000~30,000 ~30,000~30,00060,00060,000 ~25,000~25,000
~5,000~5,000 ~4,200~4,200 ~4,000~4,000~20,000~20,000 ~5,500~5,500
~2,500~2,500~2,600~2,600 ~2,000~2,000 ~1,800~1,800 ~1,500~1,500
SaaS Expands to PaaS (Platform as a Service)
CRMLi f B i
CollaborationPRM
ERPFi
Front Office Inter OfficeBack Office
Line-of-Business apps…
PRMSCM
…
FinanceHR… BUSINESS APPLICATIONS
User InterfaceBusiness Logic
…
ApplicationExchange
…
DatabaseIntegration
…
Security Network MgmtData Protection
APPLICATION DEVELOPMENT
IT MANAGEMENT
Systems Mgmt…
Remote Access…
Storage…
Our Vision: The World’s First Multi-Application, Multi-Category SaaS Company
Common Thread is Innovation. Not Infrastructure.
ApplicationServices
OperationsServices
InfrastructureServices
BusinessServices
Us You
Services Services Services
Strategic Value
Security
Sharing
Integration
Customization
Authentication
Availability
Monitoring
Patch Mgmt
App Server
Web Server
Data Center
Disaster Recovery
Ordering
Provisioning
Licensing
BillingWeb Services
API
Multi-Language
Multi-Currency
g
Upgrades
Backup
NOC
y
Network
Storage
OS
Database
Billing
Renewal
Upgrades
Marketing
SalesMulti-CurrencyDatabase Sales
The SaaS Model: Hosted, Subscriptions, Multi-Tenant
SubscriptionMulti-Tenancy
•Hosted Infrastructure• No Hardware or Software
to Install or Maintain
•Subscription Model• Per User Annual Fee
•Multi-Tenant Infrastructure• One Virtual Platform
Hosted InfrastructureInnovation not Infrastructure
Client/Server Software On-Demand
• No Hardware• No Software• No Server Rooms, • Nothing to install, upgrade
or maintain
Focus on your Core Mission
Subscription ModelPay As You Go
On-Premise or Single-Tenant Hosted Software as a Service
• No up-front license costs• No upgrade costsNo upgrade costs• No maintenance fees• Lower TCO• Stable, predictable spend
P i t it l• Procure services, not capital
Multi-Tenancy is the Key to Utility Computing
Multi-Tenancy
“Like electricity, IT can function as a utility. Corporations, insteadof building, maintaining and
“of building, maintaining and supplying internal servers andApplications, can buy these servicesover the Internet from companiesf pSpecializing in IT – at a lower costThan running an in-house system.
”- Nick Carr, Former Executive Editor, HarvardNick Carr, Former Executive Editor, Harvard Business Review, author of The Big Switch, February 2008.
Up and Running in WeeksScalable, Surge Capacity
Client/Server SoftwareR
OI
27 monthBreakeven
RO
I
6 monthBreakeven
R
Time
RiskRisk
Time
Value to Customer
rtner
, Cus
tom
er S
urve
ys RiskRisk
R
Go Live~ 12 Months
Go Live~ 6 Weeks
Sour
ce: G
ar
Continuous InnovationMore Responsive Vendors
24 Major Releases in 8 YearsOn Average Over 100 New Features Per Release
All Customizations and IntegrationsAll Customizations and Integrations
Upgraded Automatically
Collaboration and Information Sharing
Point and Click Cross-Organization Integration
UpdateSubscribeInvite Share
- Director Sales Operations, DoubleClickDirector Sales Operations, DoubleClick
Lower TCO
Cost Factor On Premise Vendor Salesforce.com
Gartner Group: 46% Lower for SaaS
Software Licenses $169,600 $192,375
Database Licenses Included None
Maintenance Fees $42,400 Included
Pro Services
Software Install $75,000 None
Integration $35,000 $6,000
Convert Data Included IncludedConvert Data Included Included
Staff to Deploy $87,532 $52,076
Training $33,200 Included
Hardware $18 000 Not NeededHardware $18,000 Not Needed
System Admin $40,000 $40,000
Developer $40,000 Not included
Total Year 1 Cost $548,232 $290,451Total Year 1 Cost $548,232 $290,451
*Assumes pricing scenario of 1000 employees 100MM in revenue (175 CRM users), Source: Three Year Total Cost of Ownership for CRM software for MSB’s April 2004.
Lower RiskGreater Project Success
On average, about 70 percent of all IT-related j t f il t t th i bj tiprojects fail to meet their objectives.
- InfoWorld
A f 185 d l d i 64 d ith 2 4 FTE
Average ROI of 47% achieved in 8 to 9 months.
Average of 185 users deployed in 64 days with 2.4 FTEs
95% Success Rate
93% Would Refer to a Colleague
77% Have Already Recommended to a Colleague
Source: Salesforce.com Customer Satisfaction Survey by CustomerSat Inc., Aug. 2005. Sou ce Sa es o ce co Custo e Sat s act o Su ey by Custo e Sat c , ug 005Sample size 295-3000+ respondents from all size companies, randomly selected.
Data Security – The Facts
342: Number of data loss events in 2006. 102: Number of government entities with data losses.
86: Number of educational organizations with data losses. 237: Number due to lost or stolen property (i.e. laptops, tapes).
Analysis of Data Loss Database at Attrition.org
The Most Trusted & Secure Infrastructure
Security Vi ibilitSecurity VisibilitySAS 70 Type IISysTrust CertifiedSysTrust CertifiedNetwork and Physical SecurityIP Restricted Access OptionFlexible Single Sign-On OptionsFlexible Single Sign-On Options
for economic development
Business ServicesBusiness Services
Business Development
New businesses
Travel & TourismTravel & Tourism
BusinessBusiness
Real EstateReal Estate
New development
New development
Technology Transfer
&
Technology Transfer
&Community
DevelopmentCommunity
Development BRACBRACExisting businesses LeisureLeisure
Re-development
Re-development
& Commercialization
& Commercialization
DevelopmentGrants
DevelopmentGrants
BRACBRAC
Policy makers Media Other Agencies
DoD Small Businesses
Universities SBA / SBDC Federal Labs
Corporations
RE Developers Community NonprofitsSite Selectors
Commonwealth of VirginiaBusiness One-Stop
Employee Applications
• New Business Licenses
Self-Service
• New Business Licenses• Automates current
manual process• Walks entrepreneurs p
through the process
• Uses logic to determine appropriate forms and then pre-populates the forms
• Online payments• Greatly reduces time/cost/complexity for
entrepreneursCoordinated responses from Commonwealth of VA• Coordinated responses from Commonwealth of VA
Family Service Agency of SF
for human serviceso u a se ces
50% reduction in administrative timeEliminated 2-month wait for County reports
Replaced with real-time reporting
Client IntakeCase ManagementService Plans p p g
Tracking clinician, program and division productivityMeasuring individual client outcomes
Adjusting treatments accordingly
Client OutcomesSelf-audits
For the first time, we’ll have real time feedback with a system that tracks the goals and objectives for each client. And for the first time, we’ll know exactly just how successful we are.
“”- Bob Bennett, CEO, FSA
New Jersey Transit
Enterprise SolutionsEnterprise Solutions
Marketing & OutreachIncident Mgmt
Enterprise SolutionsEnterprise Solutions-- Custom & COTSCustom & COTS
Marketing & OutreachPerformance ReviewsTraining ClassesLost and FoundGroup Sales
Incident MgmtCorrespondence & Complaint TrackingCustomer Call CenterSelf-Service Portal Group Sales
I fi th f ti d th t thi “
Self Service Portal
In five months of operation under the new system this year, our Customer Service department handled twice the number of cases we handled in all of 2004 .
“”- Senior DirectorSenior Director
NYC Department of EducationNYC Department of EducationBronx Autonomy Zone
HomeworkSchool ManagementSchool Management
T k St d t Att d
Attendance
Homework
• Track Student Attendance, Performance & Counseling
• 30+ schools and 800 users• Recognized by The Bill and• Recognized by The Bill and
Melinda Gates Foundation and Oprah
The Honor Level System at Bronx Lab School
Tracking Parent Phone Calls at The Green School
Grades at The Academy for Young Writers
Progress Reports at The Academy for Young Writers
Tracking Attendance at New Design High School
• Daily Attendance• Follow Up Calls to Parents re: Missed Time
Supporting Inquiry Teams using Custom Reports and Dashboards
List of Salesforce Functionality
• Student Profile • Staff Profile• Attendance with follow‐up tracking• C d G d• Courses and Grades• Counseling Sessions• Plusses/Minuses• Standardized Test (City/State, Regents, SAT, ACT, etc.)( y g )• Dashboards and Reporting• College Counseling• Hiring• Periodic Assessments• Periodic Assessments• IEP Tracking
This year, tracking daily, qualitative information that other systems do not track (e.g. advisory).
Public Sector EcosystemSample of
Interact with constituents
Needs Sample of Products
One-Stop Portal, Call Center, Ideas
Perform specific
constituents
Human ServicesCase Managementm
ent
nt ts
men
t
rack
ing
entGovernment-to-Government
A E hbusiness functions
Economic DevelopmentEducationTech TransferGrants MgmtLicensingInspectionso
nom
ic D
evel
opm
se M
anag
emen
t
nts
Man
agem
e n
pec
tions
& A
udit
gra
m M
anag
em
uca
tion
resp
onden
ce T
r
iden
t M
anag
emAppExchange
Achieve interoperability Force.com,
InspectionsMany more…E
co
Cas
Gra
Insp
Pro
Edu
Cor
Inc
interoperability & collaboration
Content, Ideas
Government-to-Government AppExchange
What are the benefits to Government?
Speed of implementation– Because the government agency that posts its application on the Government-to-
Government Appexchange has already tested and implemented it, other agencies t th li ti d i i klcan get the application up and running quickly.
Increased effectiveness– Because the applications are specifically tailored to government needs and have– Because the applications are specifically tailored to government needs and have
been used in a government environment, they will be immediately relevant to the agencies that adopt them.
Cost savings– Reusing all or part of an application on the same SaaS infrastructure by multiple
organizations will lead to big cost savings.
Peer reference– There is no better peer reference for an application than for an agency to share
what has worked well for them.
U.S. OMB Pushes for Software as a Service
Thank You