Ready? All right. Welcome back. Hope you guys had a nice lunch break. We'll move out of the CRM spectrum of products and into platform. We have with us today Tod Nielsen, who runs the platform, also called the App Cloud. Tod can talk quite a bit about this, both in Force.com, Heroku, and a lot of things that have gone into sort of updating and transforming the platform. I think you're seeing that in a lot of the demos and some of the products we've already reviewed, both Sales Cloud, Service Cloud. You see the platform truly at work here, and I think Tod can take that to the next level with a broader discussion about what we're doing in the platform and some new product introductions, including Lightning. With that, wanted to hand it over to Tod Nielsen, EVP of the Platform.
Great. Thank you. Yep, thanks. Good afternoon. I got the coveted after-lunch spot. I'm excited to be here with you today. My name is Tod Nielsen. For those of you that I haven't met, briefly, my background is I've kind of grown up in the industry. I was at Microsoft in the late '80s, all the way through 2000. Was responsible for building products like Microsoft Access, Visual Basic, MSDN, and then switched over to the platform side of the business on Windows and all that world. Left in 2000, did a variety of things, and joined Salesforce two years ago as the CEO of Heroku. Earlier this year when Mike Rosenbaum moved over to Sales Cloud, my role expanded to cover now the entire platform for Salesforce.
We've got a lot of news this week around our platform or the App Cloud, I'm going to walk you through some of the announcements that we've got, we'll leave probably 30 minutes at the end for questions to talk about anything you'd like to. You've seen this slide a bit today about the customer success platform. I, being a platform guy, think about my job as making all of the apps better, giving everything they need, as well as making our customers and partners and ecosystem successful as they build their apps and build IP on our platform. One of the things that is amazing about our platform is just the incredible adoption and success that we have.
Prior to coming to Salesforce, I was at VMware and started a project called Cloud Foundry, one of the things we wanted to have in Cloud Foundry is how can we get users? How can we drive this? The thing that the Salesforce platform has is a tremendous number of users and apps. Over 4.5 million apps built on the system. Lots and lots of developers. In the tech industry, we call it the virtuous cycle. The platform virtuous cycle is definitely moving, and it feeds itself, and it's something that most platform vendors aspire to achieve, but very, very few do. It's exciting for me to be leading this effort where we've got the virtuous cycle started. Now it's how do we extend and grow and continue to drive our value proposition forward.
Earlier this year, Gartner published a report naming Salesforce the leader in the platform as a service category. The really exciting thing to me is to see how far ahead they have us in their platform-as-a-service quadrant. The other thing that's interesting, if you go through the details of the report, is they talk about the opportunity that we have with our Force.com and Heroku constituents to be able to bring that together into a unified platform.
In many ways, they were sort of foreshadowing what we've been saying we're going to do and saying, "Hey, if Salesforce can really pull this together into a unified platform or a unified App Cloud, they're going to have something that is really going to change the market." One of the exciting things about being on the platform is the number of companies and success stories that are built on our platform. It's an incredibly diverse set of companies and use cases, ranging from human resources or operations or marketing and e-commerce. Macy's is a well-publicized customer of ours, where they have their Macy's site and Bloomingdale's e-commerce sites built on our platform. They were awarded at the beginning of this year, the e-retailer of the year last year for their innovation and their e-commerce sites they've been able to do on our platform.
Lots and lots of customer success stories. Whenever a customer comes to me and says, "Hey, Tod, we're considering your platform, but can you handle our scale or our complexity or our load?" Or whatever their issue is, I've got multiple use cases where I can say, "Hey, your scale doesn't really scare us." Three of the top 50 sites on the internet are built on our platform. Scale is not something that is an issue for us. We are in the app economy. Every company is trying to be an app company. CEOs are now saying, "Hey, IT, we expect you to really help us drive growth and drive revenue forward." The days of, "Hey, we want to squeeze the cost and just cut things a little bit more," are gone.
The CIOs are less focused on optimization and more focused on adding business value. It's incredible to me as I talk to CIOs around the world, the number of them that are saying, "Help us. Help us figure out how to pull together and be leaders and be disruptive in this app economy." The challenge that they face, and pretty much most companies in the industry face, is the issue of siloed technologies or bespoke systems. Another thing I frequently see is I'll talk to a large enterprise and ask them, "Do you have this?" "Do you have that?" The answer is always, "I have that, that. I've got everything." As the CIO of a large bank said, "You know, Tod, basically, I've got one of everything. If it's out there in the industry, I have it somewhere.
My job or my goal as CIO, if I can get things down to having one ball for each sport, it would be tremendous. If I can just get one of those things. Then if they can actually work together and comes into connected fashion, that would be amazing." Helping these folks figure out how to drive this connected experience is really something that we are excited about helping with. What's needed is a new type of, if you will, platform, a new type of integration in these platforms. We call it, and you'll hear us talk a lot about it this week, a connected platform. Being able to really pull together the portfolio or the components so you'll be able to use any aspect of the system and share context, share resources, share data, share app services all across the application.
It feels to your constituents, to your users or your employees, that you're coming from one app, and it feels to the people building the app that they're all collectively working on the same related system. Driving that is where I think that the industry needs to get, and we're excited with what we're announcing this week with the App Cloud. The App Cloud is our App Cloud that pulls together Force, Heroku Enterprise, Lightning, and Thunder. I'll talk about that in a couple of minutes. It basically pulls together all of our platform assets. It's the natural evolution of the Salesforce platform into App Cloud. It's got themes that are very familiar to our customers. It's trusted and connected.
Trust is the number one value at Salesforce, people need to know that, "Hey, if I'm going to put stuff into your cloud, I have the same trust attributes as I've come to expect from Salesforce." Speed and agility is a trademark of Salesforce as far as enabling everyone to be able to build applications and deliver things faster. One of the words that's sort of been lost in the industry is the definition of the word platform as a service. I think as an industry, we've kind of lost the thinking about the most important word in that, and it's service. Many folks are out there trying to build their own platforms or other infrastructure and really have lost the sight on the value of platform as a service.
The value a platform as a service provides is it allows customers to focus on their business problems, on their IP, on their customers, on what they're trying to build. We worry about the infrastructure and the scaling and all of the stuff that isn't important to their core customers. One of the common phrases we'll say to people is, "Let us wear the pagers so you don't have to. You can focus on your business process and your apps." That's a real value prop of our App Cloud. Finally, the complete enterprise ecosystem. I talked about the viral effect of our platform that we've got going. A common phrase I'll hear from customers is, "The thing I love about your ecosystem is I don't have to reinvent the wheel.
If somebody's already done it, I can grab a component, or I can grab it from AppExchange, or I can grab the service from one of the partners, I can just build on it or add value to it. I don't have to start everything from scratch. I can yet bootstrap my effort with some of the work and the IP that other folks have done. The other important thing about App Cloud to mention is we've really pulled together. We've pulled together the App Cloud components around three pillars or three cornerstones of a connected platform. Those three pillars are identity, network, and data.
I'll talk more about these in a few minutes, but the idea of having the steel threads of identity, network, and data to be able to pull together the connected app so you can share context, you can share data, you can share information, you can share services all within the particular apps. One of the things that we're announcing we have this morning is a new cloud. A challenge that a lot of customers have is many of the customers have big data projects going on where they're gathering all kinds of data. I'll ask them about it. I'll say, "Well, tell me about your big data. What are you doing?" They said, "Oh, yeah, we have a project going. It's pretty exciting." I go, "Well, great. Tell me about it.
What are you doing?" They say, "Oh, it's big." It's like, "Okay, great." People just haven't really globbed on to what to do with that. When you drill in and you ask them more, you realize that people are collecting lots and lots of data, but they're not sure what to do with it. McKinsey came out with a report recently that said people are using only 1% of the data that they're collecting, that they can actually, 1% of it they're acting on or doing something with. They're putting all this money into gathering this information and yet acting on a very, very small slice of it. The IoT Cloud, powered by our Thunder platform, is focused in addressing this issue. Number 1, it allows you to connect with everything.
By everything we mean not just Internet of Things stuff like devices and beacons and sensors, but click streams or log files. All sets of data sources coming in, if you will, at the top of the funnel. As you've got all the data connected, you can then apply business rules or smart logic to essentially find the needle in the proverbial haystack, find what you're looking for. Once you've found it and you have that context and you know what's happened, it's then all integrated with Salesforce apps. If it is a machine that's about to break down, you can fire off a Service Cloud case and have a technician go out and fix it. If it's a marketing engagement, you can send a promotion, or you can send an SMS text, or you can send some particular idea all around that.
It's very actionable and a very personal way to engage with these customers. The most important and exciting thing about the IoT Cloud is, remember five years ago when IBM was running ads saying, "Have you hired your data scientist yet?" The vision was, oh, everybody's going to have these elite groups of Navy SEAL data scientists that are there to kind of dissect and interpret information. The Salesforce way is, how do we democratize this? How do we bring the power to the people? How do we bring the power to the people that are closest to the business, closest to the customers to be able to make that happen?
The IoT Cloud is actually a very simple, if you will, spreadsheet, workflow, orchestration metaphor where your business people, mere mortals, can actually go through and find the needle in the haystack and engage and fire off the right activity. The other thing I just want to make sure I emphasize is the IoT Cloud runs on top of Heroku, and so we're able to handle massive amounts of data, billions of records a day. It's not the kind of thing where it's just, oh, a little bit of sensor data. This can be lots and lots of information coming in and being able to process it in real time and act on it is pretty exciting. Another announcement we're making this week is Heroku Enterprise. For those of you that have followed the Heroku journey, five years ago at Dreamforce, we announced the acquisition of Heroku.
Heroku is a platform as a service that runs on top of AWS and has done tremendously well in the marketplace. Has all kinds of great customers and proven that it's incredible for B2C apps and apps that require B2C scale. Last year at Dreamforce, we announced Heroku Connect, and Heroku Connect began the integration journey, if you will, with Heroku and Salesforce. It allows you to bidirectionally synchronize data from your Salesforce data sources into a Heroku database and then keep them in sync back and forth. Heroku Enterprise is the next step in this journey or the next milestone in this journey, and I'm really excited about it. I talk to CIOs all the time, and many of them will say to me, "You know, Tod, we trust Salesforce.
We just don't know if we trust the public internet." One of the features or capabilities of Heroku Enterprise is something we call private spaces. What private spaces is, it's a feature that allows you to configure the network and isolate the app so that the app looks and feels like it's running in a data center. You can control who gets the access, what IP restrictions you want to have in place. It literally looks and feels like it's running in their own data center. The exciting thing about that is if you think about it, today, the world talks about hybrid cloud computing. What people typically mean by hybrid cloud computing is they mean something that runs in the public internet and something that runs in their own data center.
With Private Spaces, you can have a redefinition of hybrid cloud computing. You can have something that runs in Salesforce or somewhere else, and then something that runs in Heroku as part of Salesforce in Private Spaces, and it could be a hybrid cloud, but it will look and feel like it's a data center. The other thing which is interesting about it is it'll look and feel like it's in their own data center, except they don't have to deal with the stacking and racking of resources and the CapEx and figuring out how to capacity plan and do all that's required when you have your own data center. All that can be a service that's provided by us, and they can have the security and trust that they've come to expect from Salesforce, now part of Heroku Enterprise on top of AWS.
Another cool feature within Heroku Enterprise is selectable regions. For global companies, it's a common request to be able to say, "Hey, I want to run this particular app in Tokyo," or, "I want to run it in Sydney," or, "I want to run it in Munich." Heroku Regions allows the users to specify one of the eight AWS data centers that they want to run their app in, and it will run and be contained in that locale, providing better performance or less latency or those kinds of things. Then integrated identity. Integrated identity is you can now have a common identification layer or authentication across all the Salesforce assets in the App Cloud.
You can build an app, whether you're building it with Force and Heroku or a combination of both, and have single sign-on, have the same authentication mechanism, same IDs, all that good stuff. I really think with Heroku Enterprise that we are onto something where many customers that have investments going on today in AWS, they're going to say, "Hey, let's move those to Heroku Enterprise and not worry about it." The CIO at Burberry, once he understood all that was going on with Heroku, this is before Heroku Enterprise, issued a mandate that he have his employees just move all their AWS efforts to Heroku so that we wear the pager so they don't have to. There's a very complementary and synergistic relationship between Salesforce or Heroku and AWS, so we work well together. We go to market together frequently.
One of the reasons the AWS folks bring us in is because they know if they're competing against Microsoft or they're competing against Google, that AWS plus Salesforce is a stronger play and a more confident and differentiating play than just AWS on their own. I'm really excited about the opportunity with Heroku Enterprise and how that's going to change and accelerate our adoption within the enterprise. Then another key part of this week that you'll hear a lot about is Lightning. Lightning is the new user interface platform for building apps and components. Lots of exciting things. I know Mike Rosenbaum was here earlier talking about the new UI and what they're doing with it. We've got a lot of excitement from customers building components, sharing things, to have a modern-looking UI that they can share across their application.
With the Lightning Design System, you can actually build apps within either Heroku or Force.com that can look and feel the same and look like you're coming from the same supplier or same developer. The other thing, or the last thing to point out about Lightning is Lightning continues to emphasize our view that everyone in the business should be able to build apps, not just the elite computer programmers, but the developers, the business people. Everyone should be able to collaborate and work together to build an end application. Trailhead. Trailhead is a super exciting effort that is an online training and engagement tool. I don't know how many of you have been over to Moscone West, but we've converted the second floor of Moscone West into a campground. It looks like a campground, s'mores included, so you can go over there and see.
We announced Lightning August 25th, and we've seen a tremendous uptake on people earning Trailhead badges. It's a very engaging way to learn the system, ranging all the way from beginners to advanced systems. You'll, over the course of this conference, see a number of people with different badges. They're all learning and highlighting, "Hey, I got a badge." This is kind of cool. We're really excited about how the productivity of enabling the organization to learn the App Cloud and learn our platform can be done with Trailhead. What I want to do now, before I turn over questions, is I want to give you a brief demo of what we have in the App Cloud platform, then we'll take some questions.
Awesome. Thanks, Tod. Welcome, everyone, to Dreamforce. My name is Bobby Lancaster. I work as part of the Platform Marketing team under Tod. I'm going to give you guys a demo for the next, probably 10, 12 minutes, of the App Cloud. Tod just mentioned earlier that we've got the developer zone over at Moscone West. I've been working there this morning. We've got thousands of developers that are coming in and building applications. We've also set up a new area called the IT Ranger Station this year. We saw the national park theme, we were talking about s'mores, we've set up a specific area called the Ranger Station where we've got demos for CIOs, for enterprise architects, for information security leaders.
As we see more of these IT leaders come to Salesforce and embrace the App Cloud, we're sort of presenting to them a vision for how they can transform IT using the App Cloud. I'm going to jump in and give you a demo now. Okay, I mentioned that we basically built this story of someone being the CIO of the dev zone. Right now, I'm the CIO of the dev zone, I'm responsible for managing all the staff that are working in the developer area and all of the apps that we build. Okay? I'm going to spend the next 10 minutes just walking you through sort of how I manage my day as a CIO using the App Cloud. As CIO, there's really three main questions that I ask myself in the morning. You'll see these at the top here.
The first is, this is very common for any CIO, is how much time are we spending on innovation? I want to make sure that my developers are spending more time on building apps and less time on maintaining legacy apps and on IT support. The second real question I ask myself is, how strong is our development team? I think for any CIO today, we want to be managing a world-class development team that has a broad range of skills across different types of technology. I always want to be fostering that. The third question I ask myself, which Tod alluded to earlier, which is, how are we leveraging all of our data? We've got these huge volumes of data coming from devices, coming from apps. How do we make smarter business decisions and fuel business growth based on that data? Okay.
We're going to take a look at each of these three in turn. The first one is, how do we spend more time on innovation? As a CIO, the way that we've handled this, and this is the way that we handle it internally at Salesforce, is that we've adopted agile development across the board. On a Monday morning, as CIO, what I'll do is I'll sit down with the heads of each of our departments and I'll walk them through their app pipeline. Here I can see all the different apps that each department has in development, in various stages of development. I can see our operations team here. They've got over 25 apps in development.
As a CIO, what I can do now is when I actually meet with that operations manager, I can actually open up this new app called Agile Accelerator. This is a free app that's available on the Salesforce AppExchange. It's actually developed by Salesforce, runs on Force.com based on our agile development processes. It's free. Any company can install it. My internet is connected. Bear with me one minute. While this opens up, Agile Accelerator is a free application that a lot of CIOs and IT departments are installing into their Salesforce instances so that they can start to do agile development internally.
Okay, that was Agile Accelerator.
All right, looking good. Perfect. We're in Agile Accelerator now. As a CIO, typically, when you sit down with a department head, it's very tough to be able to tell them exactly which apps are in development, and that's because of the traditional software development process of gathering requirements, documenting those requirements, having someone build the application, and then roll it out. With Agile Accelerator and agile development in general, we want to completely turn that around. Instead of doing huge projects at once, what we do is these smaller, discrete, what we call user stories or work items here. We can see all of the different work items that we've got in development from our operations team.
The operations manager pointed out to me this morning that one of these items is something that he could really use some help with today, that they really need an app to be able to handle this process. The challenge is that solution engineers that are sitting in our dev zone are working. They need an easy way to manage their demo shifts. They're currently doing this on a spreadsheet, and people are showing up late to shifts. They need an application to be able to do this. I can see here on my Collaborate tab that we've got business users that are engaging directly with IT. Here, Ayori, our solution engineer, she's actually provided that spreadsheet that they're currently using to manage shifts, and one of our UX designers has gone and written up some wireframes on it.
Me, as CIO, I don't typically build applications as a CIO, but I'm going to build an app for you now using the Lightning tools that Tod spoke about earlier. To build this application, I'm going to jump into Setup, and I'm going to open up the Lightning App Builder. I'm going to create a new application here. Here, I can walk through this wizard, select my template. I'm just going to create an app that works on an iPhone. I'm going to call it Shift Manager, and this is going to open up Lightning App Builder. Tod mentioned earlier that Lightning App Builder and a lot of the tools that you'll see in Force.com are what we're calling visual development tools. They don't require you to write code.
What we're doing is starting to abstract code away so you can start to build applications with point-and-click tools. Let me just quickly refresh this. It means as a developer or a business analyst, it means that I can start to, instead of writing an application in code, it means I can start to compose the application using UI components that should be showing up on this left-hand side here. I'll just talk you through it. Basically, this whole area here is going to have a list of components. These are UI components. Some of them are developed by Salesforce that come out of the box. Some of them are developed by a company's developers, so you can still have your programmers build Lightning components. I think one of the most important ones is that you get AppExchange components.
The third-party partners that Salesforce works with can build these UI components, you can drag and drop them onto the page to build out an application here. I wish I could show it to you, I think we're going to have to skip it here. I think that the big point is that we're using these visual development tools. Like Tod Nielsen spoke earlier about working on Microsoft Access and Visual Studio. The same way that we're introducing visual software development there, in Force.com, we've really had 16 years to develop a point-and-click development platform to build those employee applications. Now I'll jump over here. We didn't get a chance to build that app, we're going to take a look at Force.com anyway to see what this looks like from a user's point of view.
This is Ayori, our solution engineer, who we were building that application for. Now, she's able to come in here, she's able to see that she's got an alert from IT letting her know that that new application's been built. If I refresh this, it might have actually appeared here. We'll have to wait and see. Nope, not yet. But here's where any of the Force.com applications that you build for employees, they all appear in Salesforce1. Even as myself, as a Salesforce employee, there's really only one application that we use on our phones, which is Salesforce1. It gives us access to every single employee app that we've built, including that one that we were going to build for Ayori. Sorry about that. I'll have to skip that one. Now, just open
Didn't wave the goat bones over the machine there, Bobby. Sorry about that.
I'll skip that part. I'll come back to it. Force.com is really going to be used for building those employee applications. It's a visual development tool. That's really good for business analysts and for citizen developers, people that don't know how to code. For a CIO, that's only sort of part of the development team that I have. For the majority of CIOs out there, like myself, I've got a development team that wants to program in modern programming languages, things like that a lot of you may have heard of, like Ruby and Node and Python. This is how developers build these modern applications. If you look up at the screen here, what you're going to see is one of the applications that Salesforce has developed, which Tod Nielsen talked about, which is called Trailhead.
Trailhead is a learning management app where I can come in here, and I can complete modules to learn how to build and manage apps on the App Cloud. If I want to learn simple things from app customization all the way down to more complex things like application lifecycle management, I can come in here and I can do these modules to earn different badges. With the point-and-click development tools in Force.com, they're really good for employee applications, but when you're developing very engaging customer apps like this, developers want to use those modern frameworks. They want to use open frameworks and languages that they already know. As a CIO, I want my developers to be building applications like this, and I want them to be building them in those modern programming languages.
I want to make sure that wherever we deploy those applications, that they're going to be secure, and they're going to be scalable. What we do is whenever our developers build any of those apps, we deploy them all to Heroku. Here you can see all of the applications that we've got running on Heroku. We've got apps running in Node, in Python, in Ruby. Using the new Heroku Private Spaces functionality, we've also got apps running in different regions. We've got one running here in Virginia, in Frankfurt, and in Tokyo. Because Heroku is really a platform as a service that sits on top of Amazon's infrastructure as a service, what Heroku does is basically abstract away all the plumbing that you need to run an application.
A developer can focus on just building the application, and they don't have to worry about any of the infrastructure that sits underneath it. This Trailhead application, we've got hundreds of people coming through the dev zone right now that are using Trailhead. We've seen a huge increase in the amount of people that are accessing it this week. We need to scale this application if we need to. Because we've uploaded all these to Heroku, scaling is super easy. If I drill down into my Trailhead app now and click on Edit here, if I want to scale this application up, I can just scale this bar up, and this is going to give me more compute power. I haven't had to go to Amazon. I haven't had to set up any more virtual servers.
I haven't had to worry about load balancing, and my developers haven't had to worry about it either. My developers, all they did was build the Trailhead app. They deploy it up here, and it's running. Heroku's built around developer success. As a company, and even after Salesforce has integrated into the App Cloud, it's very much focused on developer productivity. What we've done here is we've also allowed you to connect any other add-ons that developers want to these applications as well. Developers want to be able to connect it to New Relic to be able to analyze how people are using the application, for example. One of the tools we've got here is a tool called Heroku Connect. If we go back to our Trailhead application here, you'll see that people are earning these badges.
When they complete a Trailhead badge in a Ruby app that's running on Heroku, when they complete a module, they earn one of these badges. Now, this is sitting in the Heroku app right now, but this is really useful information for us to be sitting in our CRM and in our employee applications. We want to know when people complete these badges. Using Heroku Connect, what we can actually do is sync up. This is a point-and-click integration tool that allows us to take this database that's sitting in the Trailhead app and sync any data that we want with Salesforce. Here we can see we've got data coming across for the badges that people are completing, the modules that they're doing, the projects that they're completing. It means that back in Salesforce, if this page loads up for me. Nope.
Back in Salesforce, you can start to see that data. If you go into an account in Salesforce, you can see all of the badges that they've completed. If you want to run a report and see which badges are being the most used, you can do that in Salesforce. This is really one of the integration tools that's bringing the App Cloud together. You use Force.com for all of your employee applications. You've got visual development tools to build apps. You use Heroku for any apps that you're running in any other languages, and you've got that integration tool with Heroku Connect to connect those two databases together. The last point that I wanted to hit was about data.
We mentioned that there's huge volumes of data that as a CIO I've got access to, the data coming from devices, from things that we're connecting, and from apps. Tod mentioned the IoT Cloud earlier. The IoT Cloud is a great way that you can ingest those huge amounts of data to make smarter business decisions. There's also another type of data that we have available in Force.com called event log data. It doesn't sound very sexy. Basically, when someone's using an application on Force.com, if I've got that app running, that solution engineer, as they use the application, what it's doing is tracking exactly what they do. It tracks when they open a page. It tracks when a report runs. It tracks when an API call is made.
What we can do is we can pull all of that data into Salesforce Analytics. Salesforce Analytics is an analytics tool that as a CIO, when I'm looking to analyze tens of millions or hundreds of millions of records, I can pull that data in and allow business users, like Tod said, to be able to analyze that data. Here, there's a few ways that we can use it to make better applications. The first is fixing those applications. Using that data, we can figure out if anything's going wrong. We can see here if any dashboards aren't working or if there's been any API calls that have slowed down. As a CIO, I can sit down with my DevOps team, and we can troubleshoot these applications and be able to fix any issues before the users even know that they've come up.
The second way that we're using this data is for auditing purposes. As a CIO, I've got a security team and a CISO that are focused on making sure that we're building secure and compliant applications. With event monitoring and Salesforce Analytics, what I can do is start to analyze as a CISO exactly what's going on in these applications. I can understand here, how is data being exported from Salesforce? How are people exporting reports? I can even drill down and say, this user has exported a lot of reports. Who are they? I might want to see the IP addresses that they're exporting those reports from. For a CIO, it means that when I'm building these employee applications, that I can make sure that they've got all the security controls in place to make sure that we're building compliant applications.
We're seeing a lot of companies in healthcare, in financial services, in government that are starting to standardize on the App Cloud because of these tools that we're building into security. The last one is around user adoption. As users start to use the applications, we can use all of this data to understand what's working and what's not working. We can see here, if an application has low adoption, why does it have low adoption? As a CIO, again, I can sit down with line of business execs and say, "You've got low user adoption for this set of users. How can we help fix that?" All of this, I wish I could show you my really, really cool CIO dashboard here.
Basically, what we're doing is we're trying to show that the App Cloud can be used by a CIO to get a lot closer to the business, to be able to adopt agile methodologies in Force.com, to be able to use those point-and-click development tools to have really anyone in a company build applications. When you're using other applications or if you've got developers building apps in other languages, that they can deploy those apps up to Heroku and run them from there.
Great. That's it. Thank you, Bobby.
Thanks.
Now we'll open it up to any questions. We have someone running mics. Or Great.
Thank you, Tod. Mark Murphy with J.P. Morgan. Great presentation.
Yeah.
I'm curious, if you tried to draw a Venn diagram and you had AWS and Azure and Google and Force on there and all the others, then you tried to project that forward a few years down into the road, where would you see overlap and where would you not? I think there's a feeling that it's a little bit complicated because Heroku, Force, and the AppExchange are all fairly distinct and different, and yet you're kind of rolling them all up under the umbrella of this App Cloud.
I'm trying to understand to what extent the strategy is shifting between general purpose, PaaS platform for anything that you might dream up versus something that's really pretty targeted in terms of a platform for customer engagement.
Well, let me tell you a little bit about our strategy. Our strategy is to pull these things together and be the preferred platform for the enterprise. The enterprise is trying to build applications that can engage with their customers and can connect things together and have additional context, and build these new types of apps is where our platform's really going to resonate. One thing that we've proven is we understand how to sell to the enterprise. AWS has done a tremendous job, but their effort has really been more in the infrastructure as a service play. Google has some interesting technologies, but they haven't really proven that they can crack in the enterprise code.
Microsoft certainly has an effort, but for some reason, probably due to some of the legacy that I created back when I was there's a perspective that it's just more departmental versus for broad enterprise offerings. I feel really good about how we are coupling and getting rid of the seams between Force and Heroku and Thunder to provide a more unified effort for the enterprise that's building either employee-facing apps or these customer-facing apps. Yeah.
Thanks. Brent Thill with UBS. My question's on mobile. About a year ago, a lot of the developers wanted to see a little quicker innovation. I think you unveiled Salesforce1, you made some big strides. If you looked back at that Gartner chart, there was a clear separation from you and your alma mater. If you looked right, it was a lot more crowded than mobile. What needs to happen for you to escape the peloton and become the lead rider in mobile?
Yeah. I think that's a great question. There's a lot of innovation and things going on in mobile. Right now on Heroku, on the 4.5 million apps that are on Heroku, 58% of the people that are accessing those apps, so not the developers, but the users of those apps, are accessing those apps from mobile devices. There's a tremendous disruption going on there. Last year, Salesforce1 was about mobile. This year, Lightning was about how do we make it for the desktop and for everything else. We've done some great things with the SDK on Force as well as with Heroku, and we need to do a few more things as far as partnership and making frameworks easier.
I think the other thing that is an industry we're struggling with is do you go native iOS and native Android, or do you go hybrid, or do you go HTML5? A little bit, it depends on the vendor and what they're trying to do. A pattern I see frequently is most enterprises are going HTML5, so it'll work across mobile devices for their employees. When they're doing their customer-facing apps, they're either doing native or they're doing a hybrid thing with Ionic or some of those guys. We've got some more work to pull things together. I think it's a fragmented space right now, and hopefully, going forward, we'll be able to separate like we have in the platform as a service space. Hi.
Thank you. Raimo Lenschow from Barclays. Tod, can you talk a little bit? Heroku sits on AWS at the moment, but then you also have quite a big, decent amount of scale in your own business if you think about the Sales Cloud and Service Cloud.
Sure.
How do you have to think about that?
Longer run? Given that AWS will have bigger scale, it's always going to be there. Will it be in-house, or how do you think about that dynamic?
The way I think about it is, I think about two clouds, if you will. There's an elastic cloud, which we get on top of AWS. The type of elastic cloud use cases are Macy's. Right after Thanksgiving, Macy's ramps up tremendously the amount of resources and volume they need, and then at the beginning of the year, they ramp back down. We see that type of need, which isn't really a classic enterprise use case. Most enterprises have more predictable growth and scale. Our Salesforce data centers are what I'll call enterprise-grade data centers that meet the needs of the enterprise, but not with this crazy elasticity that we get in AWS. I think with IoT, and the Thunder platform, we're going to see even more craziness as far as massive amounts of data coming through, billions of events a day being collected.
It just makes sense for us to put together almost like a hybrid car, there's an electric portion and there's a gas portion that are working together and integrated along those lines, and that's what we're trying to do with App Cloud. My job, if I do it right, will be our users will be abstracted from that, and they won't have to worry about where is it running. I've got the same trust characteristics. I've got the same attributes that I expect, but one is on AWS, and one is on Salesforce.
Hey, Tod. Karl Keirstead at Deutsche Bank. I wanted to ask you about containers. A lot of the developers that are building these cloud-native apps-
Yep
are doing them with Docker and Docker ecosystem. AWS and Microsoft are showing a lot of love. All of the PaaS platforms are-
Yep
doing the same. Candidly, I haven't heard much from Salesforce about Docker containers. Can you share with us-
Sure
your view?
Sure. We've got a long history with containers, before they were trendy. Heroku supports these LXC containers. When all the momentum and love has started happening around Docker, we've added Docker support as well. If we talk to a CIO or an IT organization that is technical, that wants to get in and talk about some of the weeds and they have the ability to deploy to the containers, and move around from either Heroku or to other platform as a service offerings, they can do that with Docker as well as with LXC. We're supporting it. We're part of that effort. You don't hear a lot from Salesforce, mainly because most of our Salesforce messaging is a little bit higher level. It's a little geeky when you get down talking about Docker and containers and that kind of stuff.
If you come to some of our IT sessions or breakouts, we'll get into a lot more detail on that.
Tod, you talked a little bit about wanting to support, unify your platforms, and be the.
Yep
In a preferred platform.
Yep.
It strikes me that the application development market is just such a wide range of development styles, and wondering about your plans to embrace things like a process orientation where ServiceNow plays there, or maybe some of the BPM vendors at the high end, or other application development styles that you think are important to becoming the enterprise platform.
Yeah. We listen and work with these guys a lot. One of the things about App Cloud that I'm excited about is back in the early 1990s, we were getting all kinds of questions from Microsoft about, when do I use Visual Basic, or when do I use C++, or when do I use all these different offerings? We created Visual Studio, and I remember sitting in front of Bill saying, "Hey, we're going to do this Visual Studio thing, and we're going to throw it all in a box." Bill thought we were nuts. The reason we did that, though, is we said, "Look, we're spending so much time trying to differentiate between one and the other.
Developers know what they want to use, and they don't want to be limited by, do I use one or do I use the other? App Cloud is sort of my, we'll call, current or modern version of what we did with Visual Studio as far as pulling it together so we can get it in the hands of IT, then they can use the right tool for the job. As we listening to them and have a great feedback cycle, if it turns out that they want more modeling or more process orientation, or if the next generation of Agile comes up or whatever these things are, we can put that into our offering. That's our effort there.
Thank you. One of the earlier slides talked about 2.3 million developers on the platforms, or I guess now the App Cloud.
Can you talk to us about the split within that, of how many of those are what you guys refer to as the citizen developers, business users who are developing on the platform, and how many would be more traditional sort of developers that are likely to develop on maybe Heroku, but also AWS-
Sure
and Azure? Is question number 1. Question number 2 is probably somewhat related. You haven't talked a lot about partners and sort of how partners come into the equation-
to develop on the platform. With the new functionality you have, anything analogous on the partner side of the equation to pull them more into developing around this platform?
Great question. On the developers, and this will be rough, but the model is probably similar to what we see in the real world, about 10% of the developers are what I'll call T-shirt-wearing, jeans-wearing, sandal-wearing code slingers that are writing code and computer scientists. Then 90% are more of the citizen developers that are building apps, and they will call themselves developers, but they're not going to write in Node.js or some Docker containers or things like that. Then regarding partners are a huge part of our success train. I think some of the exciting opportunity for partners, particularly with pulling things together, is their ability to use both Force and AWS for applications.
We've rolled out to some of our ISVs that we have ISV relationship before that might have been just with Force, we've now expanded that so they can now use Heroku and Force together. From their perspective, it's like, "Great, I have one support contract, so I can get it from Tod instead of having to have one contract with Salesforce and one with AWS. I can have it under one roof." Another interesting opportunity that I think is going to happen with Thunder is the Thunder platform, a huge use case is in retail. Every retailer I talk to says, "If you can help us solve the omni-channel experience," so that the on store, or if I buy a product in the store or online or from a distributor, they want to be able to handle that type of information.
I can see a partner building an application for retailers, which would be the gathering all the sensors of data from either in-store beacons and stuff like that, or online clicks, and pulling it together to provide some type of engagement or connection between that retailer and their end customer.
Hi. This is. My question was, given the advent of the two vertical clouds, how do you view your businesses? Is the increasing verticalization of the company, will that take away from opportunities for the platform business to shine, or do you view this as more of a partnership and a way of the platform to become more prominent? Also, if you could secondly expand on ISVs, what is happening on the platform side that is making it attractive for ISVs? Thank you.
Great. A couple things. One, I'm a platform guy, I believe, I live and eat, drink, and sleep platform. My perspective is that if we can get everybody doing things on the platform, that's wonderful. The apps, in my opinion, need to stand on their own, and the platform stands on its own. I love verticalization. If the apps guys want to do stuff, I'm going to continue to get more people building exciting apps on our platform, and if our platform adds value to their effort, that's great. My mission is really to become a de facto platform for ISVs that want to build these exciting apps. As far as ISVs go, our value proposition for them is incredible. We have a lot of people building apps. It kind of depends on what the use case is.
One example is if you're building an app to selling to the enterprise or a B2B type app, our ISV program is a great startup effort because the way we monetize that is just on a percentage of revenue. While they're in startup mode, they aren't paying anything. They can be all excited and things are moving along and life is good, and then when they start to get success in the marketplace, we can then share in that, as well as we have some go-to-market opportunities where they can work with our Salesforce. Another interesting side is on the Heroku side, I see a lot of startups or a lot of companies that start off small, and then they hit the tipping point and take off like crazy. My favorite example of last year was Ello.
Ello was going to be the kind of Facebook killer that didn't sell ads or stuff like that, it started with four or five guys. I think their bill the first month was single digit dollars. I mean, it was like $4 or something like that. Three or four months later, they hit the curve, and they started adding 35,000 users an hour to their system. They went from not being very interesting to becoming, wow, really interesting. Nurturing and fostering that type of effort on our Heroku ISV is something that we've done great. Now, Ello is an example where they don't really sell to the enterprise as much as direct consumer.
Depending on the type of app, like we've seen at Macy's or at Walmart or Target, we've got a lot of things that are happening in the blended space between Heroku and Force. Last story I'll tell on that front is one of my favorite hybrid apps was done by a partner of ours, a consulting company named Trifecta, and they built an app for this company called Varsity Brands. Varsity Brands, for those of you that don't know, are the leaders in competitive dance wear. I didn't realize that there was a category of competitive dance wear, but there is. They essentially are leaders in selling your cheerleading gear to kids in high school. Well, when you get to a point of 90% market share, the question is, how do you grow? What do you do?
They had this application that they had on Force for managing their business, selling to the schools, but they were like, "Okay, now how do we grow?" They came up with this idea of, if we sell to Tod's daughter's grandparents, maybe they'll want to buy school colors or stuff as well. They created this interesting app that creates a microsite for each school, which is a mobile as well as an e-commerce site to sell dance wear or sell cheerleading gear or hoodies or hats or whatever the item is in a particular school color is all set, so the grandma can wear it to the game and life will be good. The cool thing about that is now a salesperson can say, "Hey, we're having a run of hoodies at Palo Alto High School.
We might want to have hoodies also at Menlo Park or other place," they can push the app, and it regenerates another Heroku microsite for that particular app. I see lots and lots of these combination or heterogeneous scenarios where Salesforce is the system of record with all the kind of core context, and then they use Heroku as the reach out to the B2C, e-commerce or what have you. Okay, I think I have time for one more question.
Crickets.
Okay. Crickets. Well, thank you very much for your time today and have a great Dreamforce.
Thanks a lot. We're running exactly on time, which is pretty awesome. We have 10 minutes. If you need a coffee refresh, good time to do it, then we'll have Alex Dayon, who's the President of all our products. As I mentioned earlier, it's a great opportunity to kind of wrap up everything we've talked about today. He'll talk about a few of our new products, including analytics, along with a few other things, we'll be back with Alex in 10 minutes.
Our program will now begin. Our program will now begin.
Great. All right. We're back. Hope at this point you really get a sense of the product and the platform. Our next speaker, Alex Dayon, is the President of all of our products. As I said, I think it's a great opportunity for you to engage with Alex on sort of what we're doing from a product perspective, sort of across the board. Specifically one of the big initiatives Alex has been part of over the last 12, 18, 24 months is analytics. That's going to be a big focus of his presentation this afternoon. He's going to cover other products that are very important to us and seminal to our platform and the customer success platform broadly as well, including communities. He'll also touch on some new announcements, including the Internet of Things, IoT Cloud, and RelateIQ.
With that, let me hand it over, as Mark likes to say, the French connection, Alex Dayon.
Thank you, John.
Thanks, Alex. Yeah.
Thank you. Welcome to Dreamforce. I know it has been a long day since 8:00 A.M., and you had the chance to see all the products. I just wanted to introduce myself. I am Alex Dayon. I run the product organization, and I will be presenting for the last two products that have not been presented today, which are the Community Cloud and the Analytics Cloud. Before we do so, I just wanted to give a little refresher about our product strategy in general. What do we call the customer success platform. For us, we believe that the CRM world has completely changed because now customers, partners, device are part of the business process. Our mission as a vendor is really to enable our customers to connect with their customers in a whole new way, which is to deliver new experiences that were not possible before.
Before we had those mobile device, before the cloud was there, before those device were connected. From a product perspective, it is really a dual strategy. The first one is we want to be the leader in each and every core CRM business process that you have in front of you, sales, service, marketing, apps, community, and analytics. The way we build those products, even though we have a product called Sales Cloud, Service Cloud, Platform, Marketing Cloud, is also to have a common platform. Actually, those products are tightly integrated. Sometimes they are not as integrated because they came from acquisition, but every year we make a step to make them more integrated. Our customers not have only the best-in-class product to run their sales process, their service process, their community, facing their customers and partner with only one product.
There's one version of their customers, there's one business process. When they change business rules, when they customize the business process, it applies across the board. That's a very important element for our customers because they've been able to upgrade. For those of them who have been running on Salesforce for many years, they just have followed the evolution and the incremental benefits of the system without go through any upgrades or any reimplementation of the service. One good example of that is you met with Mike Rosenbaum, Mike Milburn, Scott, Tod, and now I'm going to present the Community and Analytics, is for each of those products, they have a goal to be the leader.
If you read the Magic Quadrant from Gartner, Sales is a leader, Service is a leader, Marketing is a leader, App is a leader, Community is a leader, and of course, Analytics is. We're only 11 months into Analytics product, while we wish we will be the leader soon, we still have some work because it always take a couple of years to have a meaningful market share in the market. The other thing about the product is Dreamforce is always a big moment in the life of the product team, that's where we launch the new thing, the big disruptive things. We have three releases a year, our customers get upgraded three times a year at no cost. We really always keep the big splash and the big news for Dreamforce.
If there's three things to remember about what we're going to launch at Dreamforce, it's first and foremost, probably the most complex project of my career is the Lightning Experience that Mike Rosenbaum presented earlier today, it's really about delivering a completely new experience. It's not just screens, it's a completely new way to use a system based on the feedback of millions of users that are using our system every day. No better than Salesforce is positioned to build the best app we know what are the usage patterns. The way we did it was not to create a separate system on the side, it's basically to build it on our current system. Our customers are able to switch their current implementation of Salesforce to that new Lightning Experience. That from a technology standpoint, was very difficult.
The IoT Cloud powered by Thunder, it's very important while it's kind of a seventh cloud, it's also a cloud that connects all the other clouds to the world of connected apps and devices. The IoT Cloud, you'll see tomorrow at the keynote, is a critical extension to our six clouds. Up until now, it was very hard for us to orchestrate the behavior of connected cars, connected mobile apps, connected applications like Office 365 with Microsoft, who's one of our pilot customers on the IoT Cloud, the sheer volume and complexity of that information flowing into our system. With the IoT Cloud now, we can connect our Marketing, we can connect our Service, we can connect our Platform, we can connect our Sales engine to those signals and orchestrate more complex types of device into a CRM process. It's a very significant addition to our platform.
The third news is SalesforceIQ, which is the outcome of an acquisition we did about a year ago, a company called RelateIQ, which brings a lot of data science into Salesforce. For us, it's very important because today we store more and more data. Our customers are spending more and more time feeding Salesforce with data. On the other hand, the screen they're using is getting smaller and smaller. That's basically the new computing device. If you want to be good at delivering killer mobile experience, you need to have a back end that is very smart, that knows what matters to you, that can recommend things, that can auto-type for you. That's about having more and more data science into the back end.
The first 2 deliverables of that acquisition we're presenting at Dreamforce are a Sales Cloud version of our CRM that really leverage all the relationship intelligence technology that RelateIQ was building. Another product, which is actually something I use every day and I love, it's a mobile client for Salesforce, which is a Salesforce Inbox. You basically do your mail while you do CRM. While you do your mail, you can log an opportunity, you can connect a contact, you can search what are your open opportunity for the people in the email right from your phone. It's really a killer experience. If you're a Salesforce customer, I strongly encourage you to use SalesforceIQ for Salesforce. These are the news that we launch. Let's go back to the two clouds I'm supposed to present today to finish the product session of the day.
Those two clouds really fit into that trend. As you know, Salesforce started as an amazing system of record. We have a platform where our customers could create any objects, we had killer apps called Sales Cloud, Service Cloud. A couple years ago, we launched something on top of that platform called Chatter. Chatter was really adding to the system of records, the engagement, the collaboration, because that's the way we work today. We just don't write data into a table. We really collaborate around an opportunity, a ticket, or whatever business process you're implementing. Now we see the world obviously moving to system of intelligence. We put a phone and a watch because those device are driving more and more intelligence on the back end.
To build a killer app on the phone like we did with Salesforce1 or now with SalesforceIQ, you need a very smart back end because you have way less real estate. This is just a reflection of how good is your back end. That's the trend. That's how the technology is moving. I want to talk about both our Community Cloud and our analytics product in that, because our Community Cloud is really our engine for the system of engagement. The way we build it was not a separate product. Same story with Salesforce, it's deep into the platform. Same for my analytics. When we build the analytics, we didn't build a separate product. We built it into the Salesforce platform, and we connect it to the Salesforce platform. Let's go through this product. The first one is the Community Cloud.
Community Cloud is actually a very exciting cloud because it's just about orchestrating the users, the collaboration within the business process. It's now really seminal to every CRM project we see to have the capabilities of collaborating. You really have three categories of communities. The first one is the customer community. No one anywhere today is going to put a website without a community. Why? Because your customers expect that collaboration as part of their buying process, as part of their support process on your website and mobile app. A good example is if you use the Dreamforce app. I don't know if you've installed the Dreamforce app on your phone, but the Dreamforce application from Salesforce, you have your agenda, you have all the sessions, you can manage all the sessions, you can actually get support from the app.
There is also a feed, and you can see what's happening. That's the Community Cloud. That's a customer community here in action right in front of you. The second, our partners community. That's a big trend for our customers when they build partner portals, not just to put transactions on this partner portal, but that collaboration space, that's also where the community is very important. The last one, which has been where we started with the community, are the employee community, whether it's a social intranet. We, this year, have been very successful selling to lines of business like HR, where any HR needs a help desk, they usually use Service Cloud, but they also need a community so people can collaborate and help each other. These are very successful use cases. The community is actually one of our fastest-growing cloud in terms of user adoption.
We have today 6,000 active communities. Here you have the example of customers. If there's one number to remember about our Community Cloud is every day on Salesforce, there is nine new live communities. There's no other product that goes as fast as when it comes to adopting users because every day we see people sparking new communities to collaborate with their customers, to collaborate with their partners, to collaborate with their own employees. What we deliver at Dreamforce with our community is actually for our customer community, the integration of e-commerce. What we realize is when you start having a community. Here we go. There is a feature actually in my Dreamforce app is when I shake it, I basically call an agent in customer service to help me.
As I was speaking and all excited, actually, I was calling the call center. Let me close the application. The buy button in community is important because more and more we see our customers trying to buy in the middle of a discussion. What we did when we built that buy button for community was not just to enable e-commerce partners to put a buy button in the feed. It's more than that. It's, again, using data science, based on the topic of the discussion, you can decide what product you're going to push or recommend into the community. It's an intelligent buy at the point of discussion.
Of course, what we delivered in that buy button for Community is not our own e-commerce, but it's integration with a series of e-commerce partners that can plug through a protocol their purchase engine right in the middle of our Community. If we want to see that in action, I have a team from the Community team, Mike Micucci, who runs product management. Mike, if you can join me on stage and talk a little bit about the Community.
All right. Thank you, Alex. Let's talk about communities. As the product guy in communities, it's awesome because we have some of the coolest customers at Salesforce. They do really interesting things. Today we're going to talk about Avid Technology. How many people are musicians in the room? All right. Alex is. Well, Avid has been around for over 25 years. They are the de facto standard when it comes to creating and mixing music for top albums or video, doesn't matter. Their product is called Pro Tools. It is the de facto standard. Guys like Beck, Drake, everybody uses this product. Well, their business has changed along with the music industry a lot. They had to move to the cloud about 2 years ago because there was low-end products that were eating into their core margins.
They said, "We have to move everything to the cloud, and we have to connect our products, like Pro Tools and their other products, and their customers in the cloud in a community so they could work together," and they created a whole new business. That's what we're going to show you. Arnab, let's take a look. Let's go into the community. As soon as it loads up here, through the power of the world's fastest Wi-Fi at St. Regis. This is the Avid Artist Community. It's called the Avid Artist Community. This connects artists, musicians, producers. What do they do here? They come here to get best practices, ideas, and collaborate on how to get the most out of Pro Tools. They have all these rich, vibrant topics like sound mixing or virtual instruments or Pro Tools. What else do they have here, though?
In the upper right-hand corner, they have music. Things like maybe they need a drum beat for a project they're working on. Can you play that for a second? Or maybe they need a loop that they need to mix into a video. Or just a silly sound effect. That's what these guys do all day long. They use Pro Tools to create these sounds, and they use them to build new sounds. They use the community to publish those back out. Now, not only does this community provide that engagement with other artists, but it hooks to the core CRM. You have the engagement level and the record level. Up at the top, you can see support.
Any cases that I might have are all right there from our core platform, as well as the order information for anything that they may have done from an e-commerce perspective. In this use case, we're going to demonstrate a discussion where I have a question around creating a video, and I need to create a music soundtrack for that video. Let's just jump into a discussion that's been going on in the community about how to create a killer soundtrack for a short film. We'll go into that conversation, and it started out, and I'm just going to pile into this conversation. We're going to start this thread going with the community, and through the magic of demos here, the conversation's going to develop. I want you to notice something that's happening. In the left-hand side is what we call the system of engagement.
That's where people are engaging each other, and they're engaging with the experts in the community. On the right-hand side, there's two components on the page. One is related tracks, another one's related products. These are commerce components. These were built in conjunction with our partner, in this case, CloudCraze, but we also work with Demandware and BigCommerce. As the conversation develops, we use that system of intelligence to extract the information from there and inject it into a recommendation on the side. You can buy whatever you need while you're discussing it. We use data from our core CRM. We use data from the conversation, and our partners are even pulling data from their shopping systems, including the point of sale. We make very system of intelligent recommendations in here.
I can pick out, maybe I want a track I can play that again here. Even down at the bottom, as we develop this conversation more, it recommends other Avid products you can use in conjunction with your project. This is what we call contextual commerce, why it was so important to get that buy button here, so that as people talked about things, we could recommend it so they can buy it in context, and didn't have to go to a shopper, a shopping site, or somewhere else. Let's just finish this demo off because I show you how we built this, because this is probably the other cool thing we've done this release. Go over the profile, Arnab. We recommended someone we should talk to, is called Princess V.
If you ever do a demo in front of a large audience, you have to have a character named Princess V, right, Alex? That's the way you do it. On the top, you see the reputation of this particular person inside the community. Lots of downloads, lots of songs. On the right-hand side, notice we brought her social media feed in. Twitter, Instagram. How do we do that? The power of our platform with Lightning components. This was actually developed by a partner called Livefyre. Livefyre provides social media components. This is called their media wall. You can drag this onto a page and provide incremental context so that your users have everything they need to make all the decisions and connect with the right people. The last thing we're going to show is on this profile, for some reason, maybe I wanted to buy this music here.
I can't. There's no shopping cart. Let me show you how easy it is to add a shopping cart onto this page so that we can complete that commerce transaction. Arnab, let's switch over to the builder. This is what we call our Lightning Community Builder. This is how community managers and administrators change the look and feel, and add functionality into the community. It uses, again, all the power of our platform. You see the branding editor on the left-hand side. What we're going to do is use all the Lightning components. These are components that Salesforce and all of our teams have been developing. You can see like Ask the Community, the Follow button, and so forth, and custom components that our partner ecosystem have been developing. You'll see components for blogs, e-commerce from CloudCraze.
You'll see other components from Livefyre, Get Surveys from GetFeedback. All of them of developing on our platform, published on the AppExchange, and be pulled in. Let's make a change to this profile. We're going to change this for all profiles inside the community. We'll delete the portfolio, the one without the shopping cart, and we'll drag in a new component with e-commerce on it, with a shopping cart. Just for giggles, let's bring in a featured products component as well, so we can complete the whole process. We'll drag that on the page, drag and drop, no coding involved. If you want to add e-commerce to a community, you literally just have to drag these components on the page, configure them on the left-hand side. We'll preview it. Looks pretty good. Let's publish it out to the community.
That was as simple as find the component, drag it on the page, preview it, and publish. Pretty simple. I'm back on the profile page. Let's refresh it. This is in the live community now. Let's go and make a purchase and buy some music, and complete a project. Let's add that cool song to the shopping cart, and let's add one of the product recommendations, and let's do a checkout. In the upside, you see the cart. All the e-commerce pieces were built by a company called CloudCraze. We have a similar integration with BigCommerce and a similar integration with Demandware, and it's all done through those Lightning components. Just like that, we were able to check out, buy the stuff, download it if it's needed. If we click on the order tab, this integrates into the order system.
This is actually sitting on top of our orders as well as our partner orders. In one place, I can see all my orders. I didn't have to go to two different places. I have one unified experience. There's that system of record again. That's what we're doing at Community Cloud.
Thank you, Mike.
Thanks, Alex.
Great demo. Thanks. As you can see, this demo is great because it illustrates two things that I touch on. The first one is the power of combining a system of records with a system of engagement and a system of intelligence. You have the three in actions here. You have all the data about your customers, you have all the conversation, and you basically can push the right information at the right time, whether it is in the feed or on the side of the feed. The second big element about this demo is the fact that while you're running the Community Cloud, you're on Lightning. It's the same platform. It's actually the exact same platform you would be using if you were using the Sales Cloud that Mike Rosenbaum presented. These are the same users, the same components, it's just a different type of user.
That's really the power of Salesforce, is whatever we do in one team makes the other product much better. If we switch back to the slides, the last product I wanted to cover is our Analytics Cloud, which we launched a year ago. You remember we were here in this room to launch the Wave platform. I want to give a quick update. Last year, we launched a platform. It's very important to remember. Salesforce Analytics Cloud was the first version of Analytics Cloud, and was one of the very first cloud-based analytics product. The design was really to start from a platform, to start really from the core foundation of being able to store any data, structured and unstructured. To be able to run any insight, and that's why the core engine was not an SQL engine.
It was actually a search engine because you want to be able to index any type of data structure, and you want to compute very quickly in memory those data structure. The front-end was a killer, super simple interface designed at every user, including a very powerful mobile app. That's what we launched last year. Since then, we've seen a huge traction. Remember, we were targeting with that product the enterprise customers. You have them in front of you. You see those logos are among the largest enterprise in the world. Cisco, Merck, Verizon, Coke, Time Warner. I don't know if NL is there, but we have other customers like in Europe, Houghton Mifflin Harcourt, with 400 users who are tracking their pipe every Monday morning. Akamai was doing all their early warning system on Wave. We have seen an exciting adoption.
This is today among the fastest-growing product we ever launched at Dreamforce. We're only 11 months into this execution, but in 11 months, you can see we're very excited about the traction we got not only in terms of sales, but also in terms of adoption, which is for us actually much more important in that first year, is to make sure the users are using the system. 68% of recent Bluewolf article, actually one of our integrator partner, published a State of Salesforce report last week. In their survey, 68% of Salesforce customers are increasing their analytics budget in the coming year. It's clearly we came at the right time with the right product. Now, what have we done in 11 months in parallel to selling and getting all those exciting customer?
All our work was to move up from the platform to a more packaged series of applications. At the platform level, we have delivered more connectors. We have actually now a complete ecosystem of partners, ETL partners, Informatica, Cloudera, Alteryx, New Relic, who can feed data, whether it's big data, it's transactional data, it's CRM data, in point and click into Salesforce. We also brought more computing power, and the areas where we did a lot of innovation in that platform are around, for example, trending. Because the whole point of Analytics Cloud is to give more depth to your Salesforce data. Think about in Salesforce, when you buy Sales Cloud or Service Cloud, you have dashboards and reports. You can do a fair amount of reporting, but it's 2D, it's two-dimensional. It's just your Salesforce data.
The whole point about Analytics Cloud is to add more dimensions, like 3D. You want to either bring the time dimensions, like trending, what has changed since last quarter, last year, last week, or external data dimension to enrich your own data. That's really what was very important for us, was to build up all those capabilities over last year. Of course, support more device. Since last time we met, we actually were showcased when Apple launched the Watch. I know the Watch now sounds like an old device. It's kind of crazy, actually, because it was only six months ago. But when they launched the Watch, the first app they showed, the enterprise app that Kevin Lynch showed on stage was Wave on the Watch. Now you can have your Watch and you can take actions from your dashboard from your Watch.
We're also delivering at Dreamforce a new tablet app to consume analytics on the tablet. The platform is going up and a lot of new innovation, mostly driven by customer feedback. There is more. At Dreamforce, we're launching a more packaged version of our Analytics Cloud, which is really about going down market now. Because when we launched the product, remember, we were targeting the enterprise business and Verizon, Coca-Cola, Merck. At Salesforce, that's not the only segment we serve with that product. We serve every segment. To go down market and to be able to serve the mid-market and the SMB, you need a more packaged product. More packaged product is really about building the best analytics for the Salesforce user. That's what we're doing by launching the Sales Wave analytical apps.
It's basically a turnkey version of our analytics that is automatically connected to Salesforce. You don't have to extract data. It's connected to your Sales Cloud data. It has pre-built KPIs based on your Salesforce metadata, because keep in mind, Salesforce is a platform. You can create custom objects in Salesforce. You can customize the way you do business. Well, our analytics is also a platform. It's actually reading those metadata to build your KPIs, your pre-built dashboards, and your trending analysis. These are not scanned dashboard. They read your Salesforce data and metadata and create automatically the app. What we're also doing is introducing a lot of new features because when you're using Salesforce Analytics, you are in Salesforce. You're logged as a Salesforce user.
There's amazing thing we can do that no one else can do in the BI world, which is you can actually do sales from your dashboard, or you can do service from your dashboard. We call that sales actions in the sales analytical app, where you can log task, notes, create opportunity right from the dashboard. That's really powerful because when you're doing, for example, pipe analysis and you notice some deals that are slipping, you can basically log a task, flag those deals from the dashboard. You don't have to switch back to Salesforce because you are in Salesforce, and that's something no one else in the analytics space can do.
We believe if you add those three things, integration with the Salesforce data, including the security integration and the profiles, being able to bring the time dimension to the Salesforce data, and all the actions that you have in your CRM into your dashboard, it's a very unique analytical app that no one has really built to date. With no further ado, more than a long speech, I'd love to have Jamie Domenici, who runs marketing for the Analytics Cloud, to join me on stage and show us those products.
Thanks. Thanks, Alex. As Alex mentioned, we started with a platform which we launched just 11 months ago. We've just recently launched app. This is exciting. Let's look at a demo from the perspective of a sales manager. Let's look at our Sales Wave app. Now, I'm a sales manager. I have a big team, I have big numbers, and I need to understand my business, day in, day out. Now with the Sales Wave, I can do that. I have my four most important KPIs, my 10 most important dashboards, and everything is in one place. No more looking through spreadsheets, calling your analyst. Everything is right here, and everything's interactive. I can go from year to date, to quarter to date, to month to date with just a click of a button. You notice everything updates. Now, I can see my forecast.
Something has happened here. When I went to sleep, I was at 100%. I woke up, I'm at 92%. Okay, I'm going to step out of character for a minute. I actually ran sales ops for 10 years before Salesforce. The worst calls I ever got were the 6:00 A.M. calls from my sales manager saying, "Where did my deals go? What happened?" I would have to spend hours trying to figure it out, but not anymore. With this interactive waterfall chart, I can now see all of my deals. I can see my pipeline and where it's moving. I can see what's been closed, I can see what's been brought in, I can even see what's been pushed out. It's all interactive. Let's drill into that.
I want to look at my pipeline, I want to see it by all of my sales leaders. You can do that right here. I can see all of my sales managers, if I click on Hillary, you'll see the waterfall chart updates. Now let's go to the next person. Let's go to John. You can see everything's interactive. Let me walk you through the chart. The green is good. Those are all of my new deals, the new pipeline, things that have been moved in. You can even see deals that have been increased in dollar size. Sounds really easy and simple. It was actually really hard to do before.
I can see, on the other side of the waterfall in yellow, I can see things that have been moved closed won, which is great, I can also see things that were closed lost. Not good, right? I can even see things that were pushed out. Let's click on that. Here you can see every single deal that was moved out. Not only that, you can see who's moving it, you can actually even see where. Where is it moving? This was really hard to do. This would take companies months to understand, where should I be investing my time? Where should I be investing my marketing dollars? What's working? What's not working? Instantly you can see something's happening in Texas. I have a large concentration of deals that are being pushed out here. If you click on Texas, it's all interactive.
Now I can see all of my opportunities in Texas that I've been pushing, clearly, there's a $1 million deal with South by Southwest. I want to be at South by Southwest. I need that deal. I want to bring it back in. Now you don't just see something, you can actually take action right here, right in Wave, right into Salesforce. I have the ability to create a task right to my rep, letting him know, "Hey, we got to bring that deal back into this quarter." This is the ability to take action right where you work. You don't have to go into email. You don't have to pick up the phone and call. You can take action right here. Well, looks like I'm going to Texas. We got a little bit of a problem there.
On the way, if I'm going to go to Texas, I'm going to make a trip out of it. I'm going to see all of my opportunities that are happening in Texas and see if I can go to another deal.
Now you're on an iPad, correct? You switched.
Yes. Alex will tell you, I just switched to my iPad. I switched to my iPad. I'm looking at another dashboard here. Again, everything on my iPad is still interactive. I can change measures. I can update charts. Everything is connected. I can even drill down. Let's drill into a report. Let's look at all my opportunities by geo. I'm looking for deals in Texas. You'll notice, this, as Alex pointed out, is our iPad, everything is optimized for the iPad. I can use all the space that I need. I have all the real estate that I want, everything is interactive. Let's drill down again. I want to see all the companies. All the names of all the opportunities that are in Texas. Again, you can actually close that drawer if you want. Let's close the drawer.
Open the drawer. There we go. We opened the drawer, and here you can see on the new iPad experience, you can see every single control that you've selected. You can unselect it, or you can even add more. I want to know which one of my reps actually owns all of these top accounts here. With just a click of a button, I can bring in another filter. See how easy that was? I can instantly see all of my top opportunities in Texas, and I can see who owns them. Well, I'm already going to South by Southwest. If I look at my second deal here, it's for Martin District. Okay. That's a big deal. I now know Terry Price, he's my rep. I want to reach out to him.
You have the ability to take action right here, right on your iPad, just like you did on your desktop. I'm going to take a snapshot, and I am going to go ahead and circle that big deal, saying, "Terry, look right here." I'm going to create a Chatter post right in Salesforce1, right from my iPad. I'm going to let my rep know, "Hey, I'm coming to Texas. Let's get a dinner on the table. I want to help close this deal." This is how sales managers and sales reps are using the Analytics Cloud and using the Sales Wave app to really take all their data into one place, get instant insight, and take immediate action. Thank you. Thanks, Alex.
Thank you, Jamie, for that demo.
Yeah.
I believe. If you go back to the slides, please. Thanks, Olivier, for the demo. I think that was the last of the product for the day. You went during the entire day through self-service, marketing apps, communities, and analytics. We talked about the Lightning Experience during sales. We talked about the IoT Cloud during the apps presentation. I think we covered a lot, and I think now we open for questions. Great. John, you're the master of ceremony.
Hi, Alex. Karl Keirstead at Deutsche Bank. My question is about the Analytics Cloud.
Yes.
Not so much about the product features, can you update us on the pricing strategy? I think a number of checks in the field suggested that the initial price points were a little bit high, I'm just curious if you have made any decisions around bringing them down a little bit, especially obviously as you try to push down into the SMB space. Thanks.
Yes. No. Keep in mind, when we introduced the product, we targeted the accounts you saw on that slide. I think it's very important. One of the big challenge at Salesforce is when you bring a new product to market, you need to pick a market segment. You cannot go too broad the first 10 months of execution. We believe that the pricing strategy we have in place For that first phase of the product, which is a platform for the enterprise, what we call EBU, was the right price point for this product because we basically had way enough deal flow to support the price point.
Clearly, as we want to expand in terms of market coverage, we need to come with offerings that are probably more specific and less of a platform and more of an application like this Sales Wave app like you saw. We will clearly be introducing lower price points, which are more per user, more standard to how the Salesforce user is used to buy its Salesforce solution. The Sales Wave app is a first step in that direction. You'll see it come with a price point which is actually fitting the standard Salesforce price structure, which is per user, and a price per user which completely makes sense with our customers.
The short answer is, I don't think we have communicated yet on the pricing because I want to make sure I don't trip on the timeline, there is new additions to come with the Analytics Cloud, which will adapt to other segments of the market. Does it answer your question? You're welcome.
Thank you. Steve Ashley, Robert Baird. On the Analytics Cloud, how willing have customers been to import on-premise data and to augment the sales data that they're beginning with by bringing in stuff they may have had on the ground in ERP systems and whatnot?
Actually, it's interesting question because it has not been highlighted for us as an objection very early on, even before we created the product. On the other hand, we saw customers like GE. We mentioned last year we had GE Capital as a launch customer, since then we signed, for example, GE Aviation. One of the reasons why customers like General Electric love actually moving their data into Analytics Cloud is first, it runs on Salesforce. The benefit, it's actually in the same hardware physically than all Salesforce apps. It has the same MSA and the same compliance level than any other Salesforce application, which for them is great. In addition, with this, they really want the data to be in the data center and not on the laptop.
The benefit of the Analytics Cloud is all the demos you've seen, whether it's an iPad, it's a laptop, or it's a phone, there is no data on the device. It's all into a secure, trusted data center run by Salesforce. We've seen that actually as a strong benefit compared to a lot of solutions where you need to distribute the reports into mobile device or even laptops, which from a compliance standpoint is an issue. Our current architecture, which is cloud-based, has been actually so far more an advantage than a challenge.
Salesforce by bringing in additional-
It's the number one. Yes. Actually, the question is about augmenting Salesforce data with other data. Sorry. I thought it was about moving data to the cloud. No, actually, it's the number one use case, and that's why we kept the price very high. That's why I started there, by the way. The first slide was we brought a platform to the market because the number one, when we ran our survey two years ago about what should we do first with the Analytics Cloud, the number one need by enterprise customer was to combine Salesforce data with other data, whether it's existing ERP data, it's usage data. Most of the customers you've seen on that slide are combining multiple data sources together. That's the number one use case, and that's why we believe it's a pretty high-value use case.
That's why some users were just using Salesforce data. They were like, "Oh, we love that power because we love the product. It looks great. We want to do trending, but we only want Salesforce data." First, we targeted the big ticket item because it was our first year of execution, and it was a decision we made, good or wrong. Now we're going to expand the product with the Wave app. The integration of Salesforce is out of the box. You don't even have to think about it. Clearly, there is a huge demand in terms of enterprise business, in particular, of having a place where they can connect their customer data with other data, whether it's usage, it's ERP, it's e-commerce. Akamai is a good example. Akamai on that slide, it's about early warning system.
They want to know what other customers are going to attrit based on the usage of the service. They really combine the customer data. There's another customer who's doing blind spot analysis on deals. Same, they're combining multiple different systems together, billing and Salesforce. General Electric, they're combining multiple Salesforce and Siebel because they still have some Siebel stuff running to have 360-degree view of the customer. I can go on and on and on, but most of those implementations have a combination of data source.
Hey. Raimo Lenschow, from Barclays. Quick one. If you look at them before you launch Wave, a customer would probably go to a Tableau or a Qlik to kind of do this sort of analysis. If you look where you are now with the product, it's maturing very quickly. Do you think feature-function-wise, you're right there? Or if you're not quite there, what's missing? Or are we now at a stage that you're mature enough and now it's about selling and executing? Thank you.
Yes. It's a good question because it's really about where is the product on that maturity curve. You have steps. I mean, you have a pretty clear set of milestones. Our first was to start with a platform because if you look at the current state of the BI market, you have two big players, Cognos and Business Objects. It happens that I know well Business Objects because that was my first job. I built the product. They pretty much have done nothing. In the past 15 years, I left Business Objects in 2000, I don't think they've done anything with the product.
You have a couple of emerging smaller vendors, which are bare execution of those initial play, but they are still technology built from client-server, where you have a client tool that connects to a data source, extracts the data, then you build reports, then you distribute the data and the reports together on client device, mostly Windows. When we build a product, it was a very different vision. The first one was, we're going to build a platform. We won't build a tool. Wave is a platform. It's a cloud platform. You can store any data structure, you can do any type of analysis, and you have amazing clients to access that cloud service. But what's really powerful with the way we build Wave is everything you do in Wave, all the dashboards you've seen actually are scripts. You can programmatically generate those scripts.
You send a JSON to an HTTP port, it sends you back the dashboard. It's really, really powerful. From an architecture standpoint, I'm going a little bit deep on technology, no one else on the market has built that today. It's a very super well-designed platform that for us was the foundation to build a lot of stuff. What you see emerging now are obviously super packaged apps because we can read all the system and build those apps automatically. It's also very integrated with Salesforce. You use your Salesforce credentials, security. You can even make actions in Salesforce from those dashboards. No one else has done that. The last thing is because it's a platform, I can build interactive mobile apps today.
When I look at the vendors you mentioned, whether it's Tableau or Qlik, none of them, besides maybe Qlik Sense, have an interactive client. None of them. It's just you consume something that has been produced on the Windows. We think we have a product that is really, really built for a mobile, social, cloud world that no one has built. We're very happy about the product. I think the area, to answer your question, where we're laser-focused now is indeed starting from that platform and moving down market. There's a lot of work the team is doing around tooling, which is all the drag-and-drop features to build your dashboard. All the ease of moving data in by importing stuff. There's big efforts to simplify and package the product as a mid-market and low-end product, because we really started by serving the enterprise first.
The team is working on packaging more and more the product to require less IT involvement into the implementations. The second area are about the user interface. We're going to continue to bring more exciting widgets because the key of the product is those waterfall charts, those maps. We're going to bring more and more widgets in every release, and that's where Lightning is actually exciting because I don't know if you paid attention, but when Mike Rosenbaum did the demo of the Lightning Experience, the charting engine came from the analytics team. It's the same charting engine. That's another something that is amazing at Salesforce, where we have an analytics team on one hand, a sales cloud team on the other hand. The components are the same. The underlying technology is the same.
The team did an amazing job building a lot of code for Lightning from all those widgets that we can benefit into the core product as well as on top of their product. That's the second part, the widget and all the user interface. The third area of investment for us are those apps, those package apps, because we believe, based on our survey of mid-market and low-end of the market, that there's a huge demand for the apps you just saw, which is turnkey apps, analytical apps for the Salesforce user. We absolutely want to be the analytics solution for the Salesforce user. Having turnkey apps for mid-market is the third area. That's basically how we're looking at the investment.
Tooling, widgets, and apps are the areas where we continue to invest, but we feel very good from a technology standpoint and market feedback of this product. Again, it's 11 months into it. Sorry to interrupt. As Mark said, you always overestimate what you can do in 12 months but underestimate what you can do in 10 years. This product is clearly probably the best architecture we have ever built at Salesforce.
Hi, Alex Castro. I'm going to [beef in there].
Yeah.
I'm looking for analytics on your analytics product, such as number of customers that you have that are in production.
Yes.
Number of users that are live. What are the implementation hurdles that you have observed in the last 11 months that you can iron out and make this more repeatable.
I know. The good news is I have this application.
I've got more questions.
Unfortunately, the finance and legal team won't enable me to show you. We have an application called Wave on Wave on my phone, which basically gives me all those answers. The number one metric actually for me is daily usage because I really want to make sure that our customers are getting value and using the system because that drives the rest. We are a subscription business, so when our users are using, the revenue comes with it. The product is doing very well. We're super happy by the rate of adoption and usage of the service. We're also using it ourselves. Unfortunately, I don't know if we communicate about those metrics. I have big no from the finance team. I wish I could because I think it would publicize, I think there's a lot of internal metrics we don't communicate about.
I'm sorry, I can't give more on that. What is the biggest implementation? It's a good question. It's probably GE. I don't know. It's a good question. I think we are probably because now we run pretty much the entire company on Salesforce. As you know, before we launch a product, we always make sure we use it. Then as a commercial customer, it's a very good question. EMC, maybe EMC. GE or EMC are among the large implementation. In many cases, in most of the customers you have seen, we are replacing Business Objects and the data warehouse. The main drive is, first, we need to consolidate more Salesforce and other data. Second, we need to give it to the end of the end user, which is really where all the existing BI solutions are breaking.
By the way, right now the BI market is going to go through a lot of transition in the coming two years because the big players, Business Objects, Cognos, MicroStrategy, who have been around for 25 years, are not growing anymore. Because just there's so much you can sell of data warehousing on the relational database. Customers want their cloud data to be smarter. They want to give their cloud data to their users. You're going to see the market shifting from the big 800-pound gorilla to emerging solutions like Wave, that's clearly where we see the market shifting. Most of the replacements are Business Objects report built by an analyst on the data warehouse. Pretty predictable. Actually, right now, everything is going according to plan because it was our goal actually to attack those projects.
Thanks. Derrick Wood, Susquehanna. I know the IoT Cloud is not out yet. Maybe it's not going to be out for another year, but I did notice that the Thunder platform-
Yes
is using some Apache open source technologies, Storm, Spark, Kafka-
Yes
Cassandra. I'm curious, it seems like there could be some overlap with the Hadoop vendors or NoSQL vendors. How do you see yourselves positioning vis-a-vis that ecosystem?
Yeah, no, I think it's a fair question. The answer would be, I'll take an analogy. When people buy Salesforce, they don't ask us which database you run on. They buy Salesforce because they have a service in the cloud that is declarative, that is easy to use, that is easy to put in place. It's pretty much the same thing. When they go for the IoT Cloud, the business goal is to connect a device or an application to your core business processes. How do you do that? If you go and buy Hadoop and Kafka, and you try to plumb all that together, you're still a long way to have an enterprise app that is compliant with metadata. What we do is really to package this technology into an application that really runs on Heroku.
By the way, we're using our Heroku infrastructure to run IoT Cloud because it's an elastic cloud. The whole objective, I heard that Tod was not able to do a demo, but the whole objective is really to solve the problem of defining how you should listen, what you should do with those signals, and what process you should be starting into Salesforce out of those signals. It's really three layers. The first one is obviously being able to receive billions of signals every day. Second is to define a workflow. It's a big workflow engine that is declarative. It's point and click. Third, it's connecting that workflow engine to all the other clouds, the Salesforce cloud. An example I'll take, which is probably what one of the demo will do with Microsoft in the coming days, Office 365.
Office 365 sends billions of signals every day to Microsoft. Microsoft wants to do things with it because if you want to drive adoption to your Office 365 user, you need to be able to turn those signals into CRM actions. They're using IoT Cloud in combination with a Marketing Cloud to send emails and campaigns based on your profile. An example is if you have sent three emails with an attachment using Outlook 365, maybe I should send you an email to teach you about OneDrive. You know what? There's a better way to share files in the cloud with Office, and that's the way they're using the IoT Cloud. They're receiving the signals, creating categories of users, and triggering processes. The way they do that is through point and click. They are one of our pilot customers on the technology.
It's really about bringing that configuration layer on top of all those pretty hardcore technology. I mean, not many people know how to write a MapReduce. The IoT Cloud is very simple. You have listening ports, you define rules, and then you connect to a Service Cloud, Sales Cloud, or Marketing Cloud objects. As simple as that. It's really turning all those great ideas into an application that people can turn live without having to learn the hardcore and the guts of all those technology you just mentioned.
We saw your announcement a week or so ago on e-commerce. You talked a bit about it here with the Community Cloud.
Yes.
I think one thing we noticed in our work is to the extent some of your competitors are having success on the front end with customer engagement, e-commerce is an area where especially SAP has a best-of-breed product. How important is that over time that you have that more deeply integrated, either potentially owning something or have a more prescriptive partner framework around e-commerce that allows for deeper integration than you have today?
The first thing with Salesforce is, as you know, we view ourself as a platform, and we believe that the best platform have the best ecosystem. I think with the cloud, it's not anymore about owning everything. With the cloud, it's really about being good at your core business, which our core business is around the customer and plugging the business processes. E-commerce is clearly at that border. Is e-commerce something that is related to an ERP or related to a customer? It's kind of in between. We obviously always ask ourselves, does this belong to our core business, or does this belong to our partner ecosystem? When we survey our customers, first, we don't see SAP as a leader in e-commerce because we don't have that many customers using SAP for e-commerce. There is tons of different solutions. Actually, it's a very fragmented segment.
Right now, our strategy has been to do what exactly you saw, which is really to partner with all those e-commerce vendors. We welcome SAP to plug to our system, by the way. Really enable our customers to blend their e-commerce experience through the API and our platform into their Salesforce community and portals. It's true for a lot of things we do around Salesforce. Right now, based on how our customers are doing e-commerce, we have not found one predominant vendor. That has been driving our decision to leverage our ecosystem. It's also related to the fact that we operate in so many segments, in so many industries. I mean Salesforce is really operating in a lot of different industries across a lot of segments. If you build the matrix of e-commerce vendors, it's a pretty complex matrix, actually, of vendors.
At this point, our strategy is really to offer the framework for e-commerce. We have order objects, so we have all the objects to do e-commerce, but our strategy is really to have a vibrant ecosystem.
Other questions? Nope. Okay. Alex.
Well, thank you. Thank you for your attention. I know it was a long, long day.
Yeah.
Thank you, John, for having me today.
Yeah. Thanks so much. Keith Block's going to close us out for the day. Keith will be down here in just a couple minutes. Meanwhile, there is some beer outside. I know that's sort of a welcome announcement for many of you. I know it's been a very full day with a lot of content. As you see, we have a lot to talk about, particularly on the product side. You can see also, I think that the application really shines through in pretty much everything we're doing, right? From Sales, Service, Marketing, and the Platform itself, some new announcements there, and of course, right into Wave, and I think Community also very much showcases what we're doing on the Platform side. I think you really got a good sense of that today.
Keith will be here shortly to talk about how we're selling this. With that, feel free to help yourself to some refreshments outside, and we'll resume here in just about 10 to 15 minutes.
Our program will now begin.
All right. Thanks for your patience as we head into the final turn here. I'm very delighted to invite Keith Block to the stage. Keith is our President and Vice Chairman and runs all distribution for Salesforce, as you know. Really, this is an opportunity. There are no prepared slides. This is really an open discussion with Keith. Might just ask Keith if he has some opening comments he'd like to share about Dreamforce or what's going on, and maybe just give a state of sort of what you're seeing in the market right now, and how you're thinking about distribution and progress in the enterprise. Then we'll just open it for questions, and we'll just People raise their hand as ever. Take it away, Keith.
Are we going to-
You can walk around. You can sit.
I'll stand. I'll sit.
Okay.
Good afternoon. I understand the cocktails are I'm between you and cocktails. Everybody in the back of the room is nodding. I'll try to make this as stimulating as I possibly can. First, thanks for the opportunity to spend time with all of you. This is a great week for the company. It's a great week for the customers. It's a great week for our partners. We're really excited. For many of us, this started a year ago, as you all know, that as soon as Dreamforce is over, we pick it up again, and we start again. We try to drive this incredible event, to celebrate our customers' success and innovation and solving business problems for our customers and helping them transform.
I understand you've heard from a number of our executives today to talk about sort of the announcements that have been made and some of the things that are coming. I will tell you, in my career, I've never been part of a company, or a time where I think things are so interesting and exciting in terms of transformation. When I think about what's happening and when I have conversations with customers on a regular basis, there are a couple of themes that are really coming out. Number one is that the age of cutting your way to prosperity is over. This is all about the age of growth. Every CEO agenda that I'm aware of, when I talk to CEOs and C-level executives, is that their agenda is growth.
Of course, shareholder value, which I know is important to the folks in this audience. The reason why they're so interested in Salesforce, beyond so many reasons in terms of cultural alignment and business alignment and mutual success and shared success, is that our agenda is growth because we provide a portfolio of products that supports the growth agenda and being able to connect to customers and engage with customers, and drive customer strategies around engagement models. That has become, I would say, more than a steady drumbeat of conversations.
We are having CEOs from all over the world come to Salesforce, here in San Francisco, or at their own corporate headquarters, they want to talk about customer engagement, and changing the way they engage, whether it's a B2B business, a B2C business, whether it's a large company, a small company, doesn't matter what industry it is. We are really having these great engagement and conversations, with these CEOs, and they are looking to us to be a trusted advisor. The reason I get excited about this is because I think we have an opportunity to do something as a company, and we're starting to really accelerate it and demonstrate it, to be that trusted advisor to these companies.
Very few companies in the history of technology have had the opportunity and have been able to capitalize on that opportunity to really be in the C-suite on a fairly regular basis and talk about transformation. I believe that Salesforce is that company and will be that company. There's one company that is a three-letter acronym, headquartered in the U.S. You all know who it is, and they're probably the closest that ever came to that, and that was a long time ago. I think we're in a very, very unique position in a very, very perfect time with a perfect storm of technology and need from the world, from a corporate perspective, from a government perspective, from a technology perspective because of this perfect storm, as I've said to many of you in the past, between social, mobile, data science, and cloud.
The agenda of the CEO is growth. We align very perfectly. I've already this week spent a ton of time with customers and partners. I addressed over 2,500 partners this morning at the keynote. The ecosystem is growing and very, very strong. We have gotten some incredible results with our SI partners, our regional boutiques. They are building their practices. There were some amazing statistics that we disclosed this morning, if you didn't hear. About 43% of the consulting firms' benches are increasing with Salesforce. They're increasing their capacity. Many of you know, if you follow in the press, are actually acquiring capacity. Accenture recently made an announcement, as you know. Speaking of Accenture, we continue to drive a great relationship with them.
If you saw the announcement in the consumer packaged goods space, which speaks to our strategy on verticals, where they're going to re-platform their consumer packaged goods trade promotions, and management application to our cloud. When I think about our growth strategy and our alignment, obviously I've always talked to you about international expansion. That's an area that we continue to see traction. I've talked to you about speaking the language of the customer, which is all about industry messaging and industry products. You know that we just announced the Health and Wealth Cloud, we're very, very excited about that, and more to come there as we expand our vertical strategy. Having the largest ecosystem in the cloud.
That speaks to having as many SIs as we can excited about us, walking arm in arm into the C-suite with us, and cultivating and recruiting ISVs, both horizontal and industry specific. All three of those strategies are working. We've seen great progress in our business. Obviously, you know our Q2 results. I'm sure that many of you will talk to customers while you were here. You know what? We think that you're going to hear some pretty good stuff. We've got a lot of momentum. We're very excited. The team is motivated. Our customers are motivated. Our partners are motivated. The strategy is working. We are at a very, very good time in the industry, and I think we are uniquely qualified to take advantage of it. I'm happy to take any questions. Mr. DiFucci?
Hey, Keith. It's Kirk Materne with Evercore.
Okay.
Back here. Hope you're doing well. Questions on Europe. Europe is somewhat underrepresented in terms of your revenue mix relative to some of the other sort of large cap software companies. Theoretically, given how under-penetrated you are, there seem to be some opportunity for that business to accelerate over the next couple of years. I guess what needs to happen for that to occur? Is it just having a large enough critical mass on ground for a number of years? I guess where are we, and is that a possibility over the next couple of years when you look at that region? Maybe I'll just focus on Europe, but I guess the question could be applied to Asia as well. Thanks.
Yeah. No, I appreciate the question. As you know, I've been here a couple of years. One of the growth planks from the very beginning is to accelerate an international strategy. With that comes investment. Investment takes many forms. It means selling capacity, it means service capacity, it means data centers. We've been very public about the opening and the announcement of many of our data centers in Europe. There has been an overall, I would say, acceleration of investment in our international business, and particularly in Europe. Precisely to your point, there is an enormous opportunity globally still, believe me, but certainly internationally, there's an enormous opportunity. Many of our large deals, while we're getting them globally, we're certainly getting more than our fair share internationally.
For example, one of the ones that I highlighted on the earnings call for Q2 was a company in Italy called Enel, which is a huge energy company in Europe with 61 million customers. That is certainly a growth strategy. We are building up our partner base. We are recruiting ISVs. We're filling out our sales capacity, our service delivery capacity, our marketing capacity, all of the above. There is a wonderful opportunity in Europe, and we're seeing really good traction there. John DiFucci.
Hi, Keith. John DiFucci from Jefferies. Keith, I understand the role that Salesforce plays in helping your customers grow. We cover a lot of software names anyway, and they're all trying to grow. It all makes sense. When you start to think about Salesforce's growth, and you're running a lot of parts of the organization, the operations of the organization. In your past life, you ran sales. Even in that life, you had a P&L that you had to hold to, and now you're running a much broader organization. When does the cost of that growth become too much? Maybe the opportunity right now is so big that for now anyway, no cost is too great, or it's probably not that. I don't know if you can address the cost of that growth and how you think about that.
David went through some unit economics earlier today that was helpful, but they were just examples, and he was clear to say that this is not Salesforce's unit economics. Maybe you can hit on that a bit.
Number one, we're a growth company. Every day we think about growth. Along with that, we think about our customers' success. That's what's really important to us. I'm sure that David or Mark Hawkins have taken you guys through all the economic models. I'm sure in the cocktail hour, they'll do it on the back of a napkin if you want them to. One of the things that I think that's really special about Salesforce, and I do think this differentiates us from many, many companies, is that we genuinely are very interested in the customer success. With customer success drives growth. We will invest in our customers, we will service our customers. In our subscription model, it's very, very important around retention that these customers are happy that they deploy.
In fact, our business model is predicated on that, as you know. At the end of the day, John, we're a growth company. We're taking share across the board in virtually every product set that we have. Just from a theory perspective, the more share you take, the more beaches you land on, the more opportunity you have to expand. We're certainly doing that. We're not a small company anymore, we're a big company. I'm sure John and David would say the same thing, that as we scale, as we mature, there are efficiencies of scale. We've got some very fiscally responsible senior executives in the company, and we did before. We have a very thoughtful process about how we invest, and we have a very thoughtful planning process around how where we invest, and I'll give you two examples of it.
You may or may not be familiar with something that we call, this process we go through on a regular basis. It's called the V2MOM. Everybody in the entire company goes through a V2MOM. It starts with the CEO. Mark comes up with this corporate V2MOM, visions, values, methods, obstacles, and measures, okay? Then every line of business executives has to do a V2MOM. Then everybody beyond that, it cascades down all the way to the lowest levels of the organization. We track to a person who does and who does not do their V2MOM. That allows us to prioritize everything that we do. We have this expression that says, "If it's not on the V2MOM, it doesn't exist." We go through a really diligent prioritization process. It's super disciplined. You know my background, you know where I worked.
I've never seen that level of discipline in planning a business in my entire career. The second thing that we do, and I'll give Mark Hawkins a lot of credit to this, is we've always had a long-range planning process. We have a terrific long-range planning process. The combination of this V2MOM and the LRP drive quite a bit of discipline around our investments, what are our strategic initiatives, how do we line up our priorities. It is a well-run and executed process. There's all sorts of fun that goes with that, and I'm sure you can appreciate it. At the end of the day, we use those two processes to drive our growth strategy, our investment strategy. The governing theme here is growth and customer success.
Again, as you scale a company, there are plenty of opportunities to increase efficiency, and I think we keep demonstrating that every quarter.
Thank you. You put up a slide earlier, well, not you, but a slide was put up earlier about 6% penetration into the Fortune 500, I was just wondering if you could overlay maybe what you're doing with Ignite and maybe what the ROI has been on that investment, maybe, in terms of metrics, can you say anything about what it's done to close rates and maybe the size of the initial deal that's come through in that strategy?
Yeah. David or John or Andrew, I don't know if we went through what Ignite was, but I'll just take you through it very briefly. Ignite is a process that a few years ago, we would probably be able to do two or three Ignites at a time. Now we do hundreds of Ignites. Ignite is a workshop. You think of it as almost like a management consulting workshop on the art of the possible. It's advising a customer around an industry and painting a vision for a customer around an industry about how they can engage with customers and have a customer strategy, and it takes it into reality. This has become a regular part of our selling motion. As a result, first of all, we are instantly credible when we talk to the customer because we speak their language of industry.
We understand their business problem. We have a point of view. We're not walking in there and saying, "Hey, we've got the greatest Salesforce automation tool in the world," or, "We have the great Service Cloud." That's not what we talk about. We talk about a business problem. Right away, that resonates with a senior executive. That's just credibility. As a result, they're willing to sit back. It's a thoughtful conversation, and it could be a three-week process, it could be a six-week process. It could result in an initial deal that is small that balloons, or it could result in a very, very large deal up front. It really depends on the ramp time of the customer, what their priorities are. I mean, there are a whole bunch of things that go into it.
It is a standard process for us now in our selling motion, and it has made a huge difference in the way that customers view us. They certainly think of us in a more strategic way and a long-term relationship way, not in an every 90-day way. There are a lot of aggressive selling tactics out there, which you all are pretty aware of. This is really deep in the relationship that we've had with customers. It's resulted in collaborative relationships. We have customers talking about being design partners with us, advising us on how to innovate with our product set. It's resulted in larger deals, more large deals, longer-term deals. I mean, the results have really been terrific. This has been Arguably, since I've been here, I think one of the best investments we've made in scaling that capacity.
It just deepens the relationship and changes the game on how you engage with the customer. It's been wonderful so far.
Keith, maybe alluding to that same point, can you talk about any common threads you observed when a deal does become strategic, and also the competitive dynamics in those deals with the other vendors in the space?
Well, listen, when you're sitting down and you're talking to a CEO, first of all, there's a very short window of time to make an impression, you have to know your stuff. It can't be a product sale. It can't be a tactical sale. It really has to be all about solving some problem they have or making them aware of a problem that they can't anticipate. I'll give you a great example. Years ago, you could talk to any CEO, they would be fearful of being Amazoned. I'm sure you've all heard that expression. If you were a retailer, you were a brick-and-mortar retailer, all of a sudden, Amazon comes out of nowhere, your business model has been completely disrupted, okay? Nobody saw that coming.
Now you go around the world, and you hear people say, "I'm concerned about being Ubered." When you think about Uber, and many of you are well aware of this is a company that it's five years old. It's, I don't know, $50 billion market cap. They don't have any cars. They don't have any drivers. They leverage cloud technology, social technology, data science, mobile technology. They have built a great business model. In the beginning of Uber, people thought, "Oh, this is just a replacement for limo service or taxi." Very quickly, Uber is really changing the game around transportation and logistics. If you use your imagination about where that's going, if you're a traditional transportation and logistics provider, your business is being disrupted. You better start thinking about how you take advantage of these technologies.
When you go in and you talk to a CEO, and you use that as an example, if they haven't thought about it, there's a bit of a cold sweat. With this technology, you can disrupt any industry. There's no industry that's immune to this disruption. Sure, there's always competition in a deal. No other company has the breadth and depth of customer success platform that we do around customer engagement. When you up-level that with a conversation around disruptive technology and what it means to change a business model, it's magical how the relationship deepens. The deal sizes get bigger. The partnerships that they want to engage with, like Philips is a great example. Philips is working with us in what we're doing with healthcare and life sciences. It's amazing how that changes the game.
Hi, Samad Samana from FBR. The company's added a lot of products over the last few years for the reps to sell, some that are more complex to go to market with. How well-versed do you think the sales organization is in selling these products? Are there rooms for productivity gains going forward? What is the company doing to ramp reps to be able to sell these?
Thanks for the question. First of all, we can always do better, right? I used to work for a guy who used to say that to me all the time, "You can always do better." I think that's true. We hire an enormous number of people. We're growing. You've seen the numbers and the statistics. We have a lot of people who want to come here. It's a destination company. It creates an opportunity for what we call enablement. Many of you may recall that I hired a gentleman named Dan Smoot specifically for this reason. He is the Executive Vice President for Market Readiness.
He wakes up every day with a team that thinks about how to onboard these people, how to make them productive, how to absorb the new product introductions, our industry messaging, everything that is required to make our reps successful working with customers. As we refine that, as we improve that, naturally you conclude that our people could be more productive. As we refine our messaging, as we refine our training, as we refine our onboarding process, if we can make somebody two weeks more productive than they were before, if we can onboard them two weeks faster, that translates with thousands of people. You can draw your own conclusions there. Market readiness is something that's top of mind. It's something I think about all the time. That's why I separated it out and hired a very senior person from VMware to do that.
It's a great opportunity. It's nice to be in a great growth company where you have that sort of thing to think about.
Hi, Keith. Katherine Egbert from Piper Jaffray. Your original Sales Cloud was Salesforce automation and customer relationship management were displacement markets. Most of what you've done since then has been either new automation, like IoT or the Service Cloud, right, or new-ish automation, like analytics, right, adding in a new layer. You've stayed away from the other displacement markets. Can you talk about that?
I don't know specifically which displacement markets you're talking about.
HR, financial, [ERP].
If you think of it as the company starts with Sales Cloud, and it's the focus of the customer. You think about the engagement cycle of dealing with a customer. Because at the end of the day, we are all about customers, period. Right? That's what we focus on. If you sell to a customer, you have to service, and of course, you want to market. Then you want collaboration technology so that sales teams and service teams can work together. Those are very natural adjacencies. We, as a company, don't dilute our focus. We stay focused on growth, customer success, customer engagement. We're not in the hardware business. We don't sell servers. We don't sell appliances. We don't sell storage. We don't go into the back office in any sort of significant way. When you're laser-focused on something, it drives results.
We wanted to, and I'm sure this was part of Marc's original thinking when he started the company, that you want to be best in class in what you do. If your portfolio is diluted, if your focus is diluted, and you don't have the right model to capture the mind share of your customer base, that introduces risk into your business. You may not realize it in the near term, but you're certainly going to realize in the long term. We stay focused on the customer, and that's what we're all about.
Thank you. Tom Roderick with Stifel.
Hi, Tom.
You've put a lot of emphasis into verticalizing your sales team and verticalizing the products. You talked about wealth and health today a little bit. Curious which other verticals you see the most opportunity in. When you look at sort of the product stack today versus what you've done with the Salesforce structure today, where do you want to spend more time emphasizing? Do you think the product stack itself needs a lot more sort of vertical intellectual property expertise? Can you acquire that? Do you think you can build it all in-house? Maybe talk a little bit more about the structure of the Salesforce. Thanks.
Yeah. No problem. Great question. First of all, we have a great platform. We have a great platform as it relates to building applications and great technology for customers. Part of our strategy, as you know, was this strategy of industries hand in glove with the strategy of the ecosystem. I think it is critical for any company to make sure that they speak the language of the customer. As I said before, that means industry. You need to speak the language of industry. You have to be able to back it up with either a highly configurable product or a vertical-specific product. We love financial services. We've got a large financial services base. That's one of the reasons why we decided to build our own organic product in financial services, starting with wealth management. We love healthcare and life sciences for the exact same reasons.
We've got a great install base. We've got a lot of customers. We get a lot of free advice from our customers who are telling us, "Hey, we really like to see you build this feature and functionality into the product." Hence, you see health and wealth for our first two vertical clouds. We also know that there are areas where we may not be as deep, not because of our product, but because of our industry knowledge and our install base, where we think it's a really good idea to have ISVs build out that capability. For example, I'll go back to Accenture. I'm very proud of the agreement that we signed with Accenture. We have wonderful relationships with all of the SIs. Every single one of the SIs, we have a great relationship.
What Accenture has done recently is, if you look at the consumer packaged goods industry, and you look at the top 50 accounts in CPG, Accenture's in the boardroom in just about every one of them. They have come to the realization that this partnership where now they are an ISV for trade management and promotions, which is the critical nugget in consumer packaged goods, they're going to build that on our cloud. Okay? They are going to become an ISV. They've made that announcement. We're going to leverage that technology. We're going to extend our reach into those vertical markets, going arm in arm with Accenture, and we're going to do that with others. We signed an agreement a while ago with a small company called Vlocity, who's doing some really good stuff with telecommunications companies.
They've got a long history and deep expertise with their management team and their people around telecommunications and the complexities of telecommunications. We want to leverage that. We want to provide our partners with an incredibly robust platform that leverages cloud and social, mobile, and data science technologies. If we can extend our reach by leveraging these partners, that's part of our strategy. There are things that we will build organically. There are things that we will build in conjunction with our partners vis-à-vis this ISV program that is really taking off. We will extend our reach leveraging the systems integrator community. That's really what's happening with our vertical strategy. We are also following that up organizationally to the second half of your question, and I mentioned this on the earnings call.
We have very carefully and very thoughtfully over the last few years started to move towards a vertical orientation in terms of how our sales organizations are organized globally. Some companies cut the cord, they go cold turkey, and they flip, and the disruption is significant. We did not take that strategy. We started very slowly from the city level, and we expanded out in certain cases to national verticals. We tie that with our global industry organization underneath John Wookey so that everybody understands our messaging and our best practices. As I said, we've done this in a very careful and thoughtful way. It translates into our results. You can see the companies that are becoming customers or the relationships that we're expanding with our customers.
These are some of the biggest companies in the world, and they're all in these very strategic industries that we're going after.
Keith, Ross MacMillan from RBC.
Hi.
Salesforce, I think, has always had a reputation for being a great place to go as a young rep, a great stomping ground, a great learning place. We're in a somewhat unprecedented period in terms of new company creation and competition for talent. I'm just curious, are you having to do anything different to retain good reps and good quality people. Thanks.
Yeah. One of the great things about Salesforce is it is a destination company, and we're regularly recognized as one of the top 10 companies to work for. That is because of our culture, it's because of the level of innovation, it's because of our strategy. It's a wonderful thing. We are, as you said, we're in a terrific position. The industry's in a great position. We are in an especially great position because we like to think of ourselves as a leader in this business, in the technology business, where people want to come here, and they want to stay here, and they're stimulated. They love our business model. They love our technology. They love the people that they work with. They love the customers. We enjoy a great relationship with the customers. By the way, this culture around philanthropy is a really big deal.
Particularly if you're a young person, this is how you're raised. This is what you know. This is a different world now. For the 20-somethings, it's a really cool place, and they like to come here. They get great training. They have great experiences. This is the environment that we live in. It's the environment we created as a company, and people really enjoy it here.
Thank you.
Keith, Brad Zelnick with Jefferies. My question for you is as much about enterprise technology and sales and the evolution of enterprise technology sales, since you've been doing this a long time.
Still relying. Yes.
The game, I think, over the years, has really changed. Aside from the customer preference now moving to more social, mobile, data science, cloud, if you think about the way that you led organizations five, 10, 15 years ago, and today what you're doing at Salesforce, everything from lead gen all the way through deal close and renewal. If you think back many years ago, the customer maybe didn't know a solution was out there, whereas today you show up at their doorstep, they're probably armed with more information than they ever have. There's transparency to pricing. They know what the competition looks like. How has just the game itself changed, and what are the major ways in which it's changed, and how do you adapt?
Yeah. You actually answered your own question, thank you. We eat our own dog food in the company. There are companies that have technology that helps them do white space analysis or marketing or sales automation. If they're smart enough, they selected Salesforce to run all that for them. If they weren't smart enough to do that, their results probably aren't that great. We use our technology, every one of our people. I do it. I could come out here to the audience. I could do a demo on my phone of how I use the technology every single day. The technology has really accelerated the pace and the intelligence, including the predictive intelligence, which big announcement this week, of how you engage, what the next best action is, who else do you interact with.
Technology has really changed in, generally speaking, the way that you engage with a customer, whether you're selling to them, marketing to them, or servicing them. It's really all the same, okay? The only barriers between those three are the way companies are organized because they have a sales organization or a marketing organization or a service organization. Everybody sells, everybody markets, everybody services. Now you have technology that allows you to do that. That's what's changed the game. You have far more intelligence. You have far more speed. You can get data from far more sources. You can stay way more connected, no cliche, to your customers and your partners and your employees. There's way more collaboration. It just accelerates everything, and it breaks down every wall that you can imagine. That has changed the game.
Smart companies who leverage that and embrace that, they're going to win. Again, I think that's one of the reasons why companies come to us. They want to talk about how to do that and how to leverage that technology. We're our own best example. If you ever came out to our headquarters and we have this expression, Salesforce on Salesforce, and see what we do, it's really impressive. It's really, really impressive stuff.
Keith, Kash Rangan at BofAML.
Hey, Kash.
What do you make of Oracle announcing earnings tomorrow during Mark's keynote at 2:00? Just kidding. That's not the question.
I don't know if anybody's going to be there to listen to that announcement.
Maybe they have wonderful cloud numbers that will measure up to Salesforce. That was not my question, though.
Oh, good.
Although it could be a question.
Yes.
There was a statistic shared earlier this morning about Mark, I believe. You've got presence in 81% of the Fortune 500, but you only have 6% of their spend. I just wanted to understand, what else is in the other 95% that would allow Salesforce to get broader share? Secondly, a couple of years back, I remember you saying that half the Global 2000 does not do business with Salesforce, that you have a tremendous opportunity. Just wondering if you have an update on that.
Yeah. Thanks for the question. There's a couple ways for me to approach the question. Number 1, there is tremendous opportunity, period. There's tremendous opportunity in the Global 1000, just in Sales Cloud. By the way, every time we continue to innovate and even upgrading our UI and introducing the new Lightning interface, or Lightning Platform and technology, drives adoption or creates opportunities for us to sell into the existing install base. But beyond the existing install base with Sales Cloud, there's just so much more opportunity for us to go there. For every company that sells, they have to service, going back to my answer over here, they have to market, they have to collaborate with teams, whether it's employees or partners, they have to do analytics.
I can't emphasize enough how robust this platform is, just around the customer success platform, not talking about apps. When you factor in the opportunity to retire the application backlog of some of these companies, where if you ever sit down with the users, the line-of-business executives, their frustration around the pace of innovation and being able to support their business, and being able to introduce new products to market, and being hampered because they're weighed down by legacy technology. If you ever go talk to a company that is in the entertainment and media space, and they provide service to a customer, and they have huge attrition rates because they're sitting there for four or five minutes on the phone trying to get a problem resolved, versus a company who leverages the customer success platform to drive that under a minute. Okay?
The impact of losing a customer, no matter what business you're in, is significant. When you think about those type of business problems and the impact that they can have on a business, I just mentioned a telecommunications company, entertainment media company, I don't want to quote who it is, it is profound, and the opportunity for us is profound. It is a joint success opportunity for both the customer and us. Because we are going to market this way by leveraging Ignites, by talking about industry, by going arm in arm with partners, because companies are looking to us to be this trusted advisor, we are not talking about a few seats of Sales Cloud anymore. We're talking about large strategic deals, large strategic engagement, game-changing conversations around changing business models, solving business problems. Historically, I think other companies would sell the infrastructure play.
It goes back to an earlier comment. The age of cutting your way to prosperity is done. It's over. Okay? It's about growth, it's about customer engagement. That's why there is significant opportunity in the Global 1000. There's significant opportunity in the broader market. There is significant opportunity by Sales Cloud, by Service Cloud, by communities, by analytics, by marketing. Pick a cloud. I don't think there's ever been a better time right now, like I said earlier, for us to engage with our customers and drive success and penetrate the market. I'm very, very optimistic about it.
Michael Long over at Needham. Dreamforce is always packed with a ton of product and platform announcements, and this year's no different, and we've had a chance to hear about some of them. Sometimes it's tough to discern what's going to have the most impact from a near term or intermediate term. I wanted to ask you, from your perspective, what do you think moves the needle the most, either from a bookings or from an attrition standpoint? If you put yourself in the shoes of a sales guy, what are they most excited about?
If the product managers were in the room, they wouldn't want me to answer that question, right? They're all going to say they're all great, and they are. I think that, obviously, I'm very passionate about the industries, so I think the Health and Wealth Cloud is the tip of the iceberg. Even before Salesforce, there are many, many examples of companies that went vertical and created vertical products that have done very, very well because those relationships get deeper and stickier and more strategic. Obviously, I'm very, very excited about that. I'm very, very excited about IoT Cloud. I think that the business applications there are enormous. By the way, I've been in many of those conversations with CEOs of some of the biggest companies in the world who are talking to us about that technology. I get very, very excited about that.
If I were an account executive, I would be very excited about that. Just like if I were calling on a financial services institution, I'd be excited about the Financial Services Cloud. We've got a strong portfolio across the board. We've got a lot of momentum in every one of these areas, even some of these new product introductions. These things are built over time. Many of the ideas come from our customers. We've got a lot of customers who are design partners, which are really proof points, and that's how we launch into the market. I know that we've got a lot of innovation that we've announced between this week and last week, but they're all really great stuff. It's great stuff. We have three major releases every year. No company on earth innovates like that.
Thousands of those features and functions are suggested by our customers through something called the IdeaExchange. We'll continue to innovate. If you ask me to pick one over the other, it would be really hard. I think all of these things are really disruptive. I do get very excited about IoT Cloud. I like all of them. I love what we're doing with analytics and sales apps and service apps. I think that'll make customers way more productive. They're all good. I can't pick. I love all our children. How's that? Okay.
Thank you for joining us, Keith. This is Keith Weiss from Morgan Stanley.
Hi, Keith.
Big picture question for you. You started up the session talking about the opportunity you see potentially becoming as transformative or as foundational as like an IBM was back in their day. When I match that up with earlier in the day, looking at the TAM slide, the platform part of the TAM slide was pretty big in there. It looks like half of that $80 billion TAM in 2020 comes from platform. Question number one, I'm assuming that platform, a success on platform, is going to be important in being transformative. One, is that a correct assumption? You have to be successful on platform. Two, if that's true, why is salesforce.com better positioned for that than AWS? AWS is the other cloud juggernaut. They've achieved $5 billion plus in revenues in very short order.
What makes you confident that you guys have the right side of the equation versus AWS to become that next IBM, if you will?
Yeah. A couple of things. Number one, platform is very important. We are a platform company, there's no question about it. We're going to drive a lot of that growth because our customers are going to build on that platform, and because we're going to have the largest cloud ecosystem in the world with ISVs who are building great applications. We're signing up more and more of those on a regular basis. You can't really compare us with AWS. AWS, they're in a different space. They're more in the infrastructure plumbing space. That's not what we do. We are about an application development and deployment environment for the cloud, period, end of story, leveraging mobile social technologies, you know all that. The first thing that comes to my mind when I think about AWS is provisioning. Right?
When I think about Salesforce Platform, I think about business impact. One is an infrastructure story that feels like cost to me, and the other one is results in driving success and growth and enablement and empowerment. For example, we have this phrase of democratization. It's like creating a community, the citizen engineer. That's what we do. That's a really important part of our growth strategy. It's pace, it's speed, it's ease. AWS, infrastructure, provisioning, servers, storage. Great. Business impact, results, analytics, mobile, social, cloud, fast, rapid, innovation, deployment speeds. That's what you should be thinking about when you think about us. It's almost like two different things. Platform is very important to our business. It continues to be, and it's a big part of our growth strategy.
Thank you. Raimo Lenschow from Barclays. Keith, you've been here now two years, and we can clearly see the changes in terms of enterprise focus, in terms of going more into the verticals. If you reflect on your journey, where are you in terms of having the whole organization already where you want it to be? Because you need more sales guys. You need the whole organization to understand the different cadence in enterprise, et cetera. Where are you on your journey? Thank you.
Thank you for the question. Two years ago, obviously, this was an organization that's had wild success. The company has been tremendously successful over its period of time and its history. What was clear was that there needed to be some level of transformation around speaking the language of customer and building out this incredible ecosystem, and international expansion, to one of the questions over here earlier. We've made tremendous progress. Our job is not done. We still have work to do, which I think speaks to the opportunity ahead of us. There is also another opportunity here, which was really started by these Ignite, which is really about ratcheting it up, and increasing the ability of our field organization to engage with CEOs and senior-level executives in the boardroom on a very regular basis, on a very consistent basis, and a very scalable basis.
That's an advisory capacity. That's in response to our customers. It's a response to the market. It is collaborative with our partners. I think it is another step in the journey. The base foundational strategy certainly has not changed. It's not going to change. I would say that the next evolution, which we're getting started in this journey, is really being perceived and appreciated for that trusted advisor position. It goes back to we have an opportunity to do something that very few companies, many have tried and very few have succeeded, but we're going to do it.
Okay. We probably have time for maybe one, maybe two more questions. That'll be it.
Hi, I'm over here. Steven Ashley, Robert Baird. Having heard you talk here, my question isn't why would somebody say yes, it's why would somebody say no? If you and/or Mark get into a C-suite and lay out the vision, and it is as compelling as it is, and I doubt that it's as black and white as yes or no, but there could be indecision, dragging your feet. Where is there pushback, and if there is, where is the hesitation, and where would the pushback be coming from?
Yeah. It's interesting, especially when you get into these large companies. Many of the CEOs, as you know, are visionary. There are very different types of CEOs. There are CEOs that are focused on vision and growth. There are CEOs that are focused on cost containment, and they have very different agendas. A CEO who is focused on vision and growth and recognizes the importance of the customer embraces our message pretty easily. Then, the speed at which they deploy our message or take advantage of our message and our joint vision is a question of their risk tolerance. Because if you think about it, some of these corporations, they're very large, they're very complicated. They've invested tens of millions, hundreds of millions, billions of dollars in existing legacy infrastructure.
Unless you don't care about risk, you have to really have a thoughtful approach for replacing legacy systems and changing business processes and all that good stuff. One of the ways that we've provided value very rapidly and de-risked that problem is to put a wrapper around legacy technologies, whether it's SAP or Oracle or any homegrown systems where we can put a mobile wrapper around service, for example, in call center technology. You keep the legacy systems in play. We provide a very compelling wrapper. In fact, the business case that I talked about with the telecommunications company earlier is exactly that. It was a wrapper around 13 legacy systems, and we were able to substantially reduce those call times. Over time, we are replacing each one of those legacy systems. The visionary CEO gets it.
Some companies, change is tough, but eventually all companies want to grow. It goes back to my earlier comment about the age of cutting your way to prosperity is done. When you think about all these great technologies and the disruption, you have to be thinking about this technology as something you either take advantage of, you disrupt or be disrupted.
Great. We'll probably just go for our last question right here.
Great. Hi, Keith. Karl Keirstead at Deutsche Bank.
Hey, Karl.
Keith, Satya Nadella is keynoting tomorrow. That's kind of incredible. I remember three or four years ago on stage, Marc Benioff characterized them as being very legacy and treated them a little bit like Oracle and SAP, now it feels like it's changed 180. I'm wondering if you could comment on what's changed about that relationship and where could it go? Thanks.
Well, listen, we have a great relationship with Microsoft. We have a very collaborative relationship. We've made a number of announcements with them around integration of our technologies. At the end of the day, what motivates us to do that, and I think the same is true of Microsoft, is that it's best for our customers. You will hear customers say very often, "Boy, wouldn't it be great if Salesforce and Microsoft had integrated technologies and worked well together?" That's just a customer benefit. I think it manifests itself in a nice relationship. Marc and Satya have a nice relationship, we work very closely with them.
Great. Well, I just want to step up here and thank Keith for coming and spending a lot of time, let's give him a round of applause. Absolutely. He's a great partner. I also want to just say a couple points here. First of all, it's been a long day. We started out this day talking about an incredible opportunity. This opportunity was around the backdrop of a secular change that we've been driving to cloud mobile social data science and being on the right side of that secular change. I hope you can see that context. I hope you can see our commitment to both addressing, Keith, we talked about the top-line opportunity, our commitment to grow in the 20%-30% year-over-year growth range. Also, how we were going to do that. We went into detail on that.
We talked about also our operating margin and the fact that you should expect 100-300 basis points operating margin expansion. We talked about the commensurate operating cash flow growth and the fact that our yields are going to go up over time. Then David helped us also when we talked about the unit economics and the fact that you should expect those in the mid-30s during a mature revenue growth rate. That's what we hope to achieve. We hope to tell you about how we were going to do it. I hope you've got a lot of insights. You've had a lot of management access, including Keith, a lot of demos for products because we heard you wanted those. We really appreciate you investing the day. We wish you an awesome Dreamforce. Thanks for being here. It's really a pleasure.