open networks, trusted clouds: peter coffee at cloud expo 7 nov 2011

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Open Networks, Trusted Clouds The Road Map to „Social‟ Security Peter Coffee VP / Head of Platform Research salesforce.com inc. @petercoffee [email protected]

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Beyond cloud as IT replacement, to cloud as assumed environment for radical acceleration of business process and global expansion of customer community

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Page 1: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Open Networks,

Trusted Clouds

The Road Map to „Social‟ Security

Peter Coffee

VP / Head of Platform Research

salesforce.com inc.

@petercoffee

[email protected]

Page 2: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

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

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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

Page 4: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

The „Power Lines‟ are Cloud Connections (Arcs Represent Number • Distance of Facebook „Friend‟ Links)

Pop quiz: where is Beijing?

Page 5: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Because…Peter Drucker Had It Right

“The typical large organization, twenty years hence,

will be composed largely of specialists who direct and

discipline their own performance through organized

feedback from colleagues and customers.”

“It will be a knowledge-based organization.”

Peter F. Drucker, in The New Realities

…in 1989

Page 6: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Complex legacy IT portfolios make the simplest data

integrations an overwhelming task

Cumbersome, brittle integrations demote end users to

information consumers

Path of least resistance

then over-emphasizes

rear-view mirror views of

historical data – or deep

inspection of recent past

Old IT Models Don’t Liberate Knowledge

Page 7: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

The Critical New Role of „Cloud‟

Old Cloud: Centralization + Automation Cost Reduction

– Distant resources: considered to be a tolerable nuisance

– Security: assumed to be a challenge, and compliance a barrier

– „Cloudwashing‟ of legacy products: tempting and easy

New Cloud: Connection + Simplification Acceleration

– Data and process in cloud are closer to everything else you need

– Security is part of the service; audit trails are easy to provide

– You can‟t „connectwash‟ a server, no matter how much

virtualization you apply or how many „private clouds‟ you proclaim

– In false clouds, you pay for resources…

…in true clouds, you pay for opportunities

Page 8: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

‟60s Mainframe Computing

‟90s Desktop Cloud

Computing

‟00s Mobile Cloud

Computing

‟10s Social Revolution

‟70s Mini Computing

‟80s Client/Server Computing

Ten Year Computing Cycles 10X more users with each cycle

Data Management

Apps

Business Logic Apps

Process Automation

Apps

Web Apps

Mobile Apps

Social

Apps

“Whereas earlier entrepreneurs looked at

the Internet and saw a network of

computers, Zuckerberg saw a network

of people.” – Time, 15 Dec. 2010

Page 9: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Social Revolution:

Social Networking Surpasses Email

Source: Comscore, June 2011

Social Users

Email Users

2007 2008 2009 2010 2011

1.1 billion

social

users

Page 10: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

2010

2011

Social Revolution:

The WAWKI* is Shrinking

Sources: Ben Elowitz, Wetpaint / comScore

Page 11: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Where are key players already having conversations?

What facilities exist for tapping that stream?

What are the cultural norms of that community?

When should you be present?

How should you participate?

Who will represent you?

How will that process scale?

What will you learn?

How will you change?

Beyond Just „Being Social‟

Page 12: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Whose Knowledge Is It, Anyway?

Innovation “goes rogue” when:

– Products are open-source and/or

highly configurable/customizable

– Some users have incentive to innovate

– Some innovators have incentive to share

– Diffusion of innovations is inexpensive

The user conversation will take place

– Users can readily find each other

– Users turn to each other for affirmation

as well as for assistance

– You can host the conversation

Page 13: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

The Customer Redefines the Product

Ideas has been an unbelievable home run. We are loving

it―the voice of the customer is totally present at Starbucks

in a brand new way, thanks to the Force.com platform.

” Chris Bruzzo

CTO, Starbucks

Page 14: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Sift more dirt, find more gold

– Gold mines are viable at 1 g. Au / ton of ore

– Costs of mining crowdstreams continue to fall

The oddly opposite models:

– Consensus surpassing the sum of the parts

– Individual contributions, appropriately incented

Can the crowd survive its success?

– “Even mild social influence can undermine…wisdom of crowd…” Proceedings of the National Academy of Sciences, 16 May 2011

wired.com/wiredscience/2011/05/wisdom-of-crowds-decline

– Vital elements:

Diversity, Independence, Decentralization, Aggregation

What Role for „The Crowd‟?

Page 15: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Collaborative

process creation

Best practice

sharing

Integration with

social channels

Social process

monitoring

Steve Wood. Great I can help with the case escalation by linking in the Apple Escalation Process.

New process created: iPad Tier 1 Support Process (Goals: Run time, 5 min)

Andrew Leigh. I need to create a new customer service process for the iPad, can you guys help?

Varadarajan Rajaram. Yes, I know this product well there are a bunch of solutions I can build into this process.

„Social‟ is a model, not an application

Page 16: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011
Page 17: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Dealers/Distributo

rs

Chatter for 320,000

Employees

Toyota Friend

Website 1-800-4-My-

Toyota

Toyota Friend

on Youtube

Toyota Friend

on Twitter

Toyota Friend

on mixi

Manufacturing/

Finance

Toyota Friend on

Facebook

Toyota Friend

Mobile

Toyota Vehicles Social Customer

Profile

Page 18: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Products Become Participants

Instant updates, not

limited by human

speed or attention

Effective integration

of hardware speed

& human judgment

The next new

application

opportunity

public String CloudThoughts{ get; set;}

Mike Leach, www.embracingthecloud.com

Page 19: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Facebook, Twitter, and

Chatter notifications

Users receive alarms

and alerts

Enables rapid

response

Reduces system

downtime

Network

congestion

in Asia.

Enterasys Devices Are Now Social

Page 20: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Cloud leverage empowers innovators Rapid iPad Deployment for Patient Prescreening

One developer with no prior

training built a mobile app in just 4

days

Deploying to Medical Directors,

Program Directors in hospitals on

iPhones and iPads

Eliminates paper forms, workflow

cuts response time by more than

60%

Cut processing time from 18 hrs to

less than 60 min

“We‟re blown away by how we built a mobile

healthcare application on Force.com with one

person in just 4 days…

The same app built in .NET would have taken

over 3 months”

Page 21: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Cloud Connection

Margin Growth and Brand Differentiation

“One automaker‟s chief financial officer

told Sun COO Jonathan Schwartz that

his company could give a car away for

free, if it could charge a customer $220

per month for a subscription.”

www.zdnet.com/news/sun-puts-java-into-gear-for-cars/136886

“CE device margins are razor thin, and the

promise of maintaining an always-on

connection to the customer after the point of

sale is mighty enticing… Simply put,

connected devices make connected

customers.” Richard Schwartz, President and CEO, Macheen

Page 22: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Cloud Concerns Are Being Addressed

Security: American Bankers Association blog says an enterprise

should “verify that any outsourcing partner meets its standards.

However, once verified, a cloud partner can actually provide

greater security.”

Availability:

– Salesforce.com now routinely exceeding 500M transactions/day

– In June 2011, achieved 100% of planned availability

Compliance: United States‟ National Institute of Standards and

Technology says cloud-resident data “can be more available, faster

to restore, and more reliable… [and] less of a risk than having data

dispersed on portable computers or removable media.”

Page 23: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Data protection regulations

– Where can it be stored?

– Who‟s allowed to see it?

Peel the onion of „compliance‟

– Anonymize/encrypt/partition specific fields

– Cloud disciplines can enhance auditability

• Role-based privilege assignment

• Actions taken using granted privileges

Looking at the laws is not enough

– USA PATRIOT Act inspires concern from global

collaborators who may fear a multi-tenant „dragnet‟…but…

– Court rulings already encourage escrow/isolation of

targeted data when a multi-tenant system is involved

Data Stewardship is a Practice, not a Technology

Page 24: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

What is the organization‟s mission?

What information supports that mission?

Where does it originate?

Who holds it?

Who can see it?

What events change it?

When is that important?

How do people know?

How can people act?

Becoming „Securely Social‟

Page 25: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Robust infrastructure security

Rigorous operational security

Granular customer controls

– Role-based privilege sets

– Convenient access control & audit

“Sum of all fears” scrutiny and response

– Multi-tenancy reduces opportunities for error

– The most demanding customer sets the bar

Trust is Essential to Cloud Adoption

Page 26: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

“Do it yourself” vs. “Who you gonna call?”

Potential benefits from

transitioning to a public

cloud computing

environment:

• Staff Specialization

• Platform Strength

• Resource Availability

• Backup and Recovery

• Mobile Endpoints

• Data Concentration

Page 27: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

The Future Has Already Happened

When a bomb explodes, it takes some time before you see

anything happen…but the energy has been released

Three fundamental energies

are in play:

– Connectivity

• Capacity in place

• Protocols and power management

– Mobility

• Devices drive cloud demands

– Social interaction model

• Already more popular than email

Page 28: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

„Cloud‟ is the things that you want someone else to do, but:

– „Social‟ describes what your workers and customers want

– „Mobile‟ describes what they need

– „Open‟ describes the freedom to do it the way that works for them

Cost reduction is not the path to leadership

– Cloud models make it easier to match IT costs against business tasks

– Superior ROI, and compelling improvement in time-to-market, change

the terms of debate surrounding IT investments and resources

The job of the „IT professional‟ is changing

– Integrator of services, rather than buyer and operator of technologies

– Instigator and manager of innovative tools and processes

– Enabler and custodian of relationships and insights

In Conclusion

Page 29: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

If you want a radical improvement…

…you can‟t settle for incremental change

Page 30: Open Networks, Trusted Clouds: Peter Coffee at Cloud Expo 7 Nov 2011

Peter Coffee VP & Head of Platform Research

[email protected]

facebook.com/peter.coffee

twitter.com/petercoffee

cloudblog.salesforce.com

Q&A?