All right. Welcome back. Hope you guys had a nice lunch break. And we'll move sort of out of the CRM spectrum of products and into platform. So we have with us today Todd Nielsen, who runs the platform, also called the AppCloud.
So Todd can talk quite a bit about this, both enforce .com, Heroku and a lot of things that have gone into sort of updating and transforming the platform. And I think you're seeing that in a lot of the demos in some of the products we've already reviewed, both Sales Cloud, Service Cloud. You see the platform truly at work here. And I think Todd 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. And so with that, I wanted to hand it over to Todd Nielsen, EVP of the Platform.
Great. Thank you. Yes, thanks.
Good afternoon. I got the coveted after lunch spot. So, I'm excited to be here with you today. My name is Todd Nielsen. For those of you that I haven't met, briefly my background is I've grown up in the industry.
I was at Microsoft in the late '80s all the way through 2000. I 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 2 years ago as the CEO of Heroku. And earlier this year when Mike Rosenbaum moved over to Sales Cloud, my role expanded to cover now the entire platform for Salesforce. So we've got a lot of news this week around our platform or the App Cloud, and I'm going to walk you through some of the announcements that we've got, and 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 am 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. And one of the things we wanted to have in Cloud Foundry is how can we get users, how can we drive this.
And the thing that the Salesforce platform has is a tremendous number of users and apps. We're 4,500,000 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.
And so it's exciting for me to be leading this effort where we've got the virtuous cycle started and 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. And 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 was interesting if you go through the details of the report is we talk about the opportunity that we have with our force dot com and Heroku constituents to be able to bring that together into a unified platform. So 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.
So one of the exciting things about being on the platform is the number of companies and success stories that are built on our platform. And 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. And 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. So lots and lots of customer success stories.
So whenever a customer comes to me and says, hey, Tyler, we're considering your 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. 3 of the top 50 sites on the Internet are built on our platform. So scale is not something that is an issue for us. So we are in the app economy. Every company is trying to be an app company.
And 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. So the CIOs are less focused on optimization and more focused on adding business value. And it's incredible to me as I talk to CIOs around the world, the number of them they're 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 of companies in the industry face is the issue of silo technologies or bespoke systems.
Or another thing I frequently see is I'll talk to a large enterprise and ask them, do you have this or do you have that? And the answer is always I have that, that, that. I've got everything. And as the CIO of a large bank said, Todd, basically, I've got one of everything. If it's out there in the industry, I have it somewhere.
And 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 and then if they can actually work together and come in the connected fashion, that would be amazing. And so, helping these folks figure out how to drive this connected experience is really something that we are excited about helping with. So what's needed is a new type of, if you will, platform, a new type of integration in these platforms. And 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. So 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. So 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. So the App Cloud is our App Cloud that pulls together Force, Heroku Enterprise, Lightning and Thunder.
And I'll talk about that in a couple of minutes. But basically pulls together all of our platform assets. It's the natural evolution of the Salesforce platform into App Cloud. And it's got themes that are very familiar to our customers. It's trusted and connected.
Trust is the number one value at Salesforce and people need to know that, hey, if I'm going to put stuff into your cloud, I didn't 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 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 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 side on the value of platform as a service.
The value of 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. And then 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 that you don't have to. You can focus on your business process and your apps. And that's a real value prop of our App Cloud.
And then finally, the complete enterprise ecosystem. I talked about the viral effect of our platform that we've got going. And so a common phrase I'll hear from customers is, I love about the thing I love about your ecosystem is I don't have to reinvent the wheel. If somebody has already done it, I can grab a component or I can grab it from AppExchange or I can grab the service from 1 of the partners and 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 in the IP that other folks have done. The other important thing about App Cloud to mention is we've really pulled together, it's not just packaging, we've pulled together the App Cloud components around kind of 3 pillars or 3 cornerstones of a connected platform. And those 3 pillars are identity, network and data. And 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. So one of the things that we're announcing, we announced 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.
And I'll ask them about it. I'll say, well, tell me about your big data. What are you doing? And they said, oh, yes, we have a project going. It's pretty exciting.
And I go, well, great. Tell me about it. What is it? What are you doing? And they say, oh, it's big.
And so I was like, okay, great. People just haven't really glommed 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, They think that actually 1% of it they're acting on or doing something with. So they're putting all this money into gathering this information and yet acting on a very, very small slice of it.
And so the IoT cloud powered by our Thunder platform is focused in addressing this issue. So number 1, it allows you to connect with everything. And 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. And then 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. And then once you found it and you have that context and you know what's happened, it's been all integrated with Salesforce apps.
So 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. So it's very actionable and a very personal way to engage with these customers. And the most important and exciting thing about the IoT cloud is remember 5 years ago when IBM was running ads saying, have you hired your data scientists yet? And 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.
Well, the sales force way is, how do we democratize this? How do we make it 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? So 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. So it's not the kind of thing where it's just so 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. It's pretty exciting. Another announcement we're making this week is Heroku Enterprise.
For those of you that have followed the Heroku journey, 5 years ago at Dreamforce, we announced the acquisition of Heroku. And 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 and allows you to bidirectionally synchronize data from your Salesforce data sources into a Heroku database and then keep them in sync back and forth. Well, 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, Todd, we trust Salesforce. We just don't know if we trust the public Internet. And so one of the features or capabilities of Heroku Enterprise is something we call Private Spaces. And what Private Spaces is, it allows 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. So it literally looks and feels like it's running in their own data center. Now the exciting thing about that is if you think about it, today the world talks about hybrid cloud computing. And 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. Well, 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 will 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 yield capacity plan and do all that is 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 Roku Enterprise on top of AWS. Another cool feature within, Roku 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.
And Heroku regions allows the users to specify 1 of the 8 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. And 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. So 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 on to something where many customers that have investments going on today in AWS, they're going to say, hey, let's move those to a Roku enterprise and not worry about it.
The CIO of 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 pagers 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.
So I'm really excited about the opportunity with Roku Enterprise and how that's going to change and accelerate our adoption within the enterprise. And 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. So 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.
Force 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 2nd floor of Moscone West into a campground.
And it looks like a campground, s'mores included. So you can go over there and see. We announced the 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. 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.
So 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. So 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 and then we'll take some questions.
Awesome. Thanks, Todd. So welcome everyone to Dreamforce. My name is Bobby Lancaster. I work as part of the platform marketing team under Todd.
And I'm going to give you guys a demo for the next, we're like 10, 12 minutes of the App Cloud. So Todd just mentioned earlier that we've got the developer zone over at Moscone West. So I've been working there this morning. We've got thousands of developers that are coming in and building applications. But we've also set up a new area called IT Ranger Station this year.
So we saw the National Park theme and we're talking about Smores. So we've set up a specific area called the Ranger Station where we've got demo for CIOs, enterprise architects, information security leaders. So 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. So I'll jump in and give you a demo now. Okay.
So I mentioned that we basically built this story of someone being the CIO of the DevZone. So right now I'm the CIO of the DevZone. So I'm responsible for managing all the staff that are working in the developer area and all of the apps that we build. Okay.
So 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. So as CIO, there's really 3 main questions that I ask myself in the morning. You'll see these at the top here. So the first is, this is very common for any CIO, is how much time we're spending on innovation. So I want to make sure that my developers are spending more time on building apps and less time on maintaining legacy apps than on IT support.
Now the second real question I asked myself is how strong is our development team? So 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. So I always want to be fostering that. And the third question I asked myself, which Todd 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? So we're going to take a look at each of these 3 in turn. So the first one is, how do we spend more time on innovation? Now 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. So on a Monday morning as CIO, what I'll do is I'll sit down with the heads each of our departments and I'll walk them through their app pipeline.
So here I can see all the different apps that each department has in development, in various stages of development. So I can see our operations team here, they've got over 25 apps in development. Now 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.
So it's free. Any company can install it. My Internet is connected. Bear with me 1 minute. So while this opens up, so 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 Accelerator.
Perfect. All right, so we're in Agile Accelerator now. Now as a CIO, typically when you sit down with a department, Ed, 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. Now with Agile Accelerator and Agile Development in general, we want to completely turn that around.
So instead of doing huge projects at once, what we do is these smaller discrete what we call user stories or work items here. So we can see all of the different work items that we've got in development from our operations team. And the operations manager points out to me this morning that one of these items is something that you could really use some help with today that they really need an app to be able to handle this process. So the challenge is that solution engineers that are sitting in our dev zones are working, they need an easy way to manage their demo shifts. So they're currently doing this on a spreadsheet and people are showing up late to shift.
So they need an application to be able to do this. And I can see here on my collaborate tab that we've got business users that are engaging directly with IT. So here, Aori, 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. So 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 Todd spoke about earlier.
So to build this application, I'm going to jump into setup. 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.
Going to call it Shift Manager. And this is going to open up Lightning App Builder. So Todd mentioned earlier that Lightning App Builder and a lot of the tools that you'll see in force.com, 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. So just quickly refresh this.
So 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 are it should be showing up on this left hand side here. But I'll just talk you through it. So basically this is this whole area here is going to have a list of components. So 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. But I think one of the most important ones is that you get an AppExchange component. So the 3rd party partners that Salesforce works with can build these UI components and you can drag and drop them onto the page to build out an application here. And I wish I could show it to you, but I think we're going to have to skip it here. But I think the big point is that we're using these visual development tools.
Like Todd 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. Okay, now I'll jump over here. So we didn't get a chance to build that up, but we're going to take a look at force.com anyway to see what this looks like from a user's point of view. So this is Aori, our solution engineer who we were building an application for.
She's able to come in here and she's able to see that she's got an alert from IT letting her know that that new application has been built. If I refresh this, it might have actually appeared here.
I'll have to
wait and see. No, not yet. But here's where any of the Force.com applications that you build for employees, they all appear in Salesforce 1. So even as were going to build for AOE. Okay.
Sorry about that. I'll have to skip that one. Okay.
Didn't wave the goat bones or the machine there, Bobby. Sorry about that.
Okay. So I'll skip that part, I'll come back to it. So force.com is really going to be used for building those employee applications. It's a visual development tool. Now that's really good for business analysts and for citizen developers, people that don't know how to code.
But 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. Now, if you look up the screen here, what you're going to see is one of the applications that Salesforce has developed, which Todd talked about, which is called Trailhead. So 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.
Okay. So I can 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. Okay, so 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.
Now 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. But I want to make sure that wherever we deploy those applications, so they're going to be secure and they're going to be scalable. So what we do is whenever our developers build any of those apps, we deploy them all to Heroku. Okay. So 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 Spaces functionality. We've also got apps running in different regions. So we've got one running here in Virginia, in Frankfurt and in Tokyo. So 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 extract away all the plumbing that you need run an application. So 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.
So this Trailhead application, we've got hundreds of people coming through the DevZone right now that are using Trailhead. We've seen a huge increase in the amount of people that are accessing it this week. So we need to scale this application if we need to. So because of because we've uploaded all these to Heroku, scaling is super easy. So if I drill down into my Trailhead up now, 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. So I haven't had to go to Amazon, I haven't had to do any set up any more virtual servers, I haven't had to worry about load balancing and my developers haven't to worry about it either. My developers, all they did was build the Trailhead app, they deploy it up here and it's running. Now Heroku is built around developer success as a company and even after Salesforce is integrated into the App Cloud. It's very much focused on developer productivity.
So 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. So 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. So if we go back to our Trailhead application here, you'll see that people are earning these badges. So when they complete a Trailhead badge in the Heroku in a Ruby app that's running on Heroku, when they complete a module, they own 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.
So using Heroku Connect, what we can actually do is sync up this is a point and quick 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. So 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. So it means that back in Salesforce, if this page loads up for me, No. Back in Salesforce, you can start to see that data. So if you go into an account in Salesforce, you can see all the badges that they've completed.
Or if you want to run a report and see which badges are being the most used, you can do that in Salesforce. So this is really one of the integration tools that's bringing the app cloud together. So you use force.com for all of your employee applications. You've got visual development tools to build out. And 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 2 databases together.
Now the last point that I wanted to hit was about data. So 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. Now Todd mentioned the IoT cloud earlier. So the IoT cloud is a great way that you can ingest those huge amounts of data to make smarter business decisions. But there's also another type of data that we have available in force.com called event log data.
So it doesn't sound very sexy, but basically when someone's using an application on force.com, so when if I was using 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. So Salesforce Analytics is an analytics tool that as a CIO, when I'm looking to analyze tens of millions or 100 of millions of records, I can pull that data in and allow business users like Todd said to be able to analyze that data. Here we there's a few ways that we can use it to make better applications.
The first is fixing those applications. So using that data, we can figure out if anything is going wrong. We can see here if any dashboards aren't working or if there's been any API calls that have slowed down. So 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 come up. And the second way that we're using this data is for auditing purposes.
So as a CIO, I've got a security team and a CSO that are focused on making sure that we're building secure and compliant applications. Now with Event Monitoring and Salesforce Analytics, what I can do is start to analyze as a CSO exactly what's going on in these applications. So I can understand here, how is data being exported from Salesforce? How are people exporting reports? And 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.
So 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. So 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. And the last one is around user adoption. So as users start to use the applications, we can use all of this data to understand what's working and what's not working. So we can see here if an application has low adoption, why does it have low adoption?
Then 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? So all of this, and I wish I could show you my really, really cool CIO dashboard here. But basically, what we're doing is we're trying to 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. And then 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.
So now we'll open it up to any questions. We have someone running mics or great.
Thank you, Todd. Mark Murphy with JPMorgan. Great presentation. I'm curious if you try to draw a Venn diagram and you had AWS and Azure and Google and Force on there and all the others. And 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 we 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 AppCloud. And I'm trying to understand to what extent the strategy is shifting between general purpose pass platform for anything that you might dream up versus something that's really pretty targeted in terms of a platform for customer engagement?
Yes. So I think where the overlap is going to be, 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. So 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 is 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 could kind of 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, there's a perspective that it's just more departmental versus for broad enterprise offerings. So 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.
Brent Thill with UBS. My question is on mobile. About a year ago, a lot of the
developers wanted to see a little
clear separation from you and your alma mater. But if you looked right, it was a lot more crowded than mobile. What needs to happen for that for you to escape the Peloton and become the lead rider in mobile?
Yes. So I think that's a great question. There's a lot of innovation and things going on in mobile. I mean, right now on Heroku, on the 4,500,000 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. And so there's a tremendous disruption going on there.
We're doing Lightning really was last year Salesforce 1 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 for on force as well as with Heroku. And we need some do a few more things as far as partnership 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 and a little bit it's up to it depends on the vendor and they're trying to do.
What a pattern I see frequently is most enterprises are going HTML5, so work across mobile devices for their employees. But 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. So we've got some more work to kind of 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.
Thank you. Raimo Lenschow from Barclays. Todd, can you talk a little bit of so 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, service cloud.
How do you
have to think about that longer run? And 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?
So the way I think about it is, I think about kind of 2 clouds, if you will. There is an elastic cloud, which we get on top of AWS. And 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. So we see that type of need, which isn't really a classic enterprise use case.
Most enterprises have more predictable growth and scale. And so our sales force 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, it just And it just makes sense for us to put together almost like a hybrid car, the engine of there's an electric portion, there's a gas portion that are working together and integrated along those lines. And that's what we're trying to do with AppCloud. My job, if I do it right, will be our users will kind of 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, this is on AWS and one is on Salesforce.
Todd Karl, Kierstead at Deutsche Bank. I wanted to ask you about containers. A lot of the developers that are building these cloud native apps are doing them with Docker and Docker Yes. Kennedley, I haven't heard much from Salesforce about Docker containers. Can you share with
us your view? Sure. So we've got a long history with containers before they were trendy. Heroku supports LXE containers. And then when all the momentum and love has started happening around Docker, We've added Docker support as well.
So if we talk to a CIO organization or an IT organization that is technical that wants to get in and talk about kind of 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 LXE. So we're supporting it. We're part of that effort. You don't hear a lot from sales force mainly because most of our sales force 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.
But if you come to some of our IT sessions or breakouts, we'll get into a lot more detail on that.
So Todd, you talked a little bit about wanting to support, unify your platforms and be the enterprise in a preferred platform. 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 process orientation where ServiceNow kind of 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? Yes, we listen and work with these guys a lot. One of the things about AppCloud that I'm excited about is back in the early 90s, we were getting all kinds of questions from Microsoft about when do I use Visual Basic when do I use C plus plus or when do I use all these different offerings. And so we created Visual Studio and I remember sitting in front of Bill saying, hey, we're going to do this Visual Studio thing, we're going to throw it all in the box. And Bill kind of thought we were nuts.
And the reason we did that though is we said, look, we're spending so much time trying to differentiate between 1 and the other. Developers know what they want to use and they don't want to be limited by do I use 1 or do I use the other. And so AppCloud is sort of my we'll call, current 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 and then they can use the right tool for the job. And then 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'll we can put that into our offering. So that's our effort there.
Thank you. 1 of the earlier slides talked about 2,300,000 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 kind of the citizen developers, business users are developing on the platform. How many would be more traditional sort of developers that are likely to develop on maybe Heroku, but also AWS and Azure is question number 1. And 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. So on the developers, the models, this will be rough, but the models are probably similar to what we see in the real world and 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. And then 90% are more of the citizen no
JS
no JS or some Docker containers or things like that. And then regarding partners, partners are a huge part of our success strain.
And
so 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, so that we have ISV relationship before that might have been just with Force. So 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 Todd 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 they 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. And so 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.
My question was given the advent of the 2 vertical clouds, how do you view your businesses? Are the 2 is partnership and a way of the platform to become more a partnership and a way of the platform to become more prominent? And 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. So a couple
of things. So one, I'm a platform guy. So I believe I live in eat, drink and sleep platform. And so my perspective is that if we can get everybody doing things on the platform, that's wonderful. And the apps, in my opinion, need to stand on their own and the platform stands on its own.
So 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. So my mission is really to become a de facto 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. And so 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, well as we have some go to market opportunities where they can work with our sales force.
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. And it started with the 4 or 5 guys. And I think their bill the 1st month was single digit dollars.
I mean, it was like $4 or something like that. And 3 or 4 months later, they hit the curve and they started adding 30 5,000 users an hour to their system. And so they went from not being very interesting to becoming wow, really interesting and nurturing and fostering that type of effort on our Heroku ISV is something we've done great. Now, Ello is an example where they don't really sell to the enterprise as much as direct to consumer, but 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 happening in the blended space between Heroku and Force. Last story I'll tell on that front is one of my favorite hybrid apps is was done by a partner of ours, a consulting company named Trifecta.
And they built an app for this company called Varsity Brands. And Varsity Brands, for those of you who don't know, are the leaders in competitive dancewear. I didn't realize that there was a category of competitive dancewear, but there is. And so they essentially are leaders in selling your cheerleading gear for 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? So 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? And they came up with this idea of, if we sell to Todd's daughter's grandparents, maybe they'll want to buy school colors or stuff as well. So they created this interesting app that creates a micro site for each school, which is a mobile as well as 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. And then 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 and they can push the app and it regenerates another Heroku micro sites for that particular app.
So I see lots and lots of these combination or heterogeneous scenarios where Force is sort of and sales force is the system of record with all the kind of core context and then they use Heroku as a 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. Have a great Dreamforce.
We're running exactly on time, which is pretty awesome. Anyways, we have 10 minutes. If you need a copy refresh, good time to do it. And we'll have Alex Daone, who's President of all our products. And 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. And we'll be back with Alex in 10
All right.
Well and we're back.
So I hope
at this point you're really getting a sense of the product and platform. And our next speaker, Alex De Onna, is the President of all of our products. But as I said, I think it's a great opportunity for you to engage with Alex on sort of what we're doing from product perspective sort of across the board. And specifically one of the big initiatives Alex has been part of over the last 12, 18, 24 months is analytics. So that's going to be a big focus of his presentation this afternoon.
But 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. And he will also touch on some new announcements, including the Internet of Things, IoT Cloud and RelateIQ. So with that, let me hand it over, as Mark likes to say, the French connection. Alex, Dion?
Thank you, John. Thank you. So welcome to Dreamforce. I know it has been a long day since 8 in the morning and you had the chance to see all the products. So I just wanted to introduce myself.
I'm Alex Dayon. I run the product organization, and I'll 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 and what do we call the customer success platform. For us, we believe that the CIAM world has completely changed because now customers, partners, device are part of the business process. And 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 we had those mobile device, before the cloud was there, before those device were connected.
And from a product perspective, it's 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. But 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're not as integrated because they came from acquisition, but every year we make a step to make them more integrated.
So our customers don't have only the best in class product around their sales process, their service process, their community facing their customers and partner with only one product. There is one version of their customers. There is one business process. So when they change business rules, when they customize the business process, it applies across the board. And 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 to go through any upgrades or any reimplementation of the service. So one good example of that is you met with Mike Rosenbo, Mike Bilburn, Scott, Todd, and now I'm going to present the community analytics. 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 only took 11 months into our IT products.
So while we wish it will be a little soon, we still have some work because it always takes 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 because that's where we launched the new thing, the big disruptive thing. We have 3 releases a year. So our customers get upgraded 3 times a year at no cost. But we really always keep the big splash and the big news for Dreamforce.
So if there is three things to remember about what we're going to launch at Dreamforce, it's 1st and foremost, probably the most complex project of my career is the lightning experience that Mike Rosenbaum presented earlier today, because 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 because we know what are the usage patterns. But 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.
So our customers are able switch their current implementation of Salesforce to that new Lightning experience. And that's from a technology standpoint was very difficult. The IoT cloud powered by Thunder, it's very important because while it's kind of a 7th 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 fixed cloud. Because 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, because 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 Salesforce IQ, which is the outcome of an acquisition we did about a year ago, a company called Rollate IQ, which brings a lot of data science into Salesforce. And 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.
But on the other hand, the screen they're using is getting smaller and smaller. Now that's basically the new computing device. So 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. And that's about having more and more data science into the back end. The first two deliverables of that acquisition we're presenting at Dreamforce are an SMB version of our CRM that really leverages all the relationship intelligence technology that RelayDAQ was building.
And another product, which is actually something I use every day and I love, it's clients, mobile clients for Salesforce, which is a Salesforce inbox. You basically do your mail while you do CRM. And 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, and it's really a killer experience. If you're a Salesforce customer, I strongly encourage you to use Salesforce IQ for Salesforce. So these are the news that we launched.
Now let's go back to the 2 clouds I'm supposed to present today to finish the product session of the day. And those 2 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 and we had killer apps called Sales Cloud, Service Cloud. And a couple of years ago, we launched something on top of that 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. And now we see the world obviously moving to system of intelligence. We put a phone and a watch because those devices are driving more and more intelligence on the back end. To build a killer app on the phone like we did with S1 or now we have Salesforce IQ, you need a very smart back end because you have way less real estate.
So this is just a reflection of how good is your back end. So that's the trend. That's how the technology is moving. And 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. And the way we built it was not a separate product.
Same story with Salesforce. It's deep into the platform. Same for my Analytics. When we built Analytics, we didn't build a separate product. We built it into the Salesforce platform and we connected to the Salesforce platform.
So let's go through those products. The first one is the Community Cloud. So Community Cloud is actually a very exciting cloud because it's just about orchestrating the users, the collaboration within the business process. And it's now really seminal to every CRM project we see to have the capabilities of collaborating. And you really have 3 categories of communities.
The first one is the customer community. No one anywhere today is going to put a web site 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 the 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 those partner portals, but that collaboration space.
And that's also where the community is very important. And 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 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.
So 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 is one number to remember about our community cloud, it's every day on Salesforce, there is 9 new live communities. There is no more there is no other product that goes as fast as it when it comes to adopting users because every day we see people new communities to collaborate with our customers, to collaborate with their partners, to collaborate with their own employees.
And what we delivered at Dreamforce with our community is actually for our customer community, the integration of e commerce. Because what we realize is when you start having a community let me close my here we go. When you start having there is a feature actually in my Dreamforce app is when I check it, I basically call an agent in customer service to help me. And as I was speaking and all excited, actually, I was calling the call center. So let me close the application.
The buy button in community is important because more and more we see 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. And based on the topic of the discussion, you can decide what product you're going to push or recommend into the community. So it's an intelligent buy at the point of discussion.
And 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. So if we go 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 Salesforce. They do really interesting things.
Today, we're going to talk about Avid Technologies. 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.
And their product is called Pro Tools, is the de facto standard. Guys like Beck, Drake, everybody uses this product. While their business has changed along with the music industry a lot. And they had to move to the cloud about 2 years ago, because there's 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 can work together and they created a whole new business.
And that's what we're going to show you. So Arnab, let's take a look. Let's go into the community. And this is as soon as it loads up here through the power of the world's fastest Wi Fi in St. Regis, this is the avid artist community.
It's called the Connected Artist Community. This connects artists, musicians, producers and what they do here, they come here to get best practices, ideas and collaborate on how to get the most out of Pro Tools. And 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 drumbeat 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. And 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. The engagement level and the record level. And up to the top, you can see the engagement level and the record level. And up to the top, you can see support. So 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.
Now 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. So 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 our conversation and it started out and I'm just going to pile into this conversation. And we're going to start this thread going with the community and through the magic of demos here, the conversation is going to develop. Now 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 2 components on the page. 1 is related tracks and other one's related products. And these are commerce components.
These were built in conjunction with our partner, in this case Cloud Praise, but we also work with Demandware and BigCommerce. And 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. So you can buy whatever you need while you're discussing it. And 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. So we make very intelligent system of intelligent recommendations in here.
So I can pick out maybe I want to track, I can play that again here or even down at the bottom as we develop this conversation more, it develops recommends other Avid products you can use in conjunction with your project. This is what we call contextual commerce and why it was so important to get that buy button here so that you could 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. Now let's just finish this demo off because I'll 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 recommend somebody we should talk to, it's called Princess Z. If you ever do a demo in front of large audience, you have to have a character named Princess Z, right, Alex?
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. But 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 LiveFire.
LiveFire provides social media components as they're 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 to connect with the right people. Now the last thing we're going to show is on this profile, for some reason, maybe I wanted to buy this music here, but I can't. There's no shopping cart. So let me show you how easy it is to add a shopping cart onto this page so we can complete that commerce transaction.
So Arnab, let's switch over to the builder. So this is what we call our lightning community builder. This is community managers and administrators change the look and feel and add functionality into the community and 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. So you see components for blogs, e commerce from CloudCraze, you'll see other components from LiveFire, get surveys and get feedback. All of them are developing on our platform, published on the AppExchange and we pulled in. So let's make a change to this profile.
We're going to change this for all profiles inside the community. So 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. And just for giggles, let's bring in a featured products component as well, so we can complete the whole process. So we'll drag that on the page, drag and drop, no coding involved. So 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. And this is in the live community now. And let's go and make a purchase and buy some music and complete a project. So 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. And just like that, we were able to check out, buy the stuff, download it if you 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 2 different places at one unified experience. There's that system of record again. So that's what we're doing at Community Cloud.
Thank you, Mike.
Great demo. Thanks. And as you can see, this demo is great because it illustrates 2 things that I touched 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 3 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 product, 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. So that's really power of Salesforce is whatever we do in one team makes the other product much better. If we switch back to the slide, the last product I wanted to cover is our Analytics Cloud, which we launched a year ago. You remember we are here in this room to launch the Wave platform. So I wanted 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 our ITX Cloud and was one of the very first cloud based ITX product. And 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.
And the Fontan 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 Enel is there, but we have other customers like in Europe, Oyu Ton Mifflin, Norco with 400 users who are tracking their pipe every Monday morning. So Akamai was doing all their early warning system on Wave. So 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 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 1st year, it's to make sure the users are using the system. 68% of recent Blue Wolf article, actually one of our integrator partners published a state of Salesforce report last week and in their survey, 60% of Salesforce customer are increasing our analytics budget in the coming years. So 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 customers?
Well, all our work was to move up from the platform to a more packaged series of applications. So at the platform level, we have delivered more connectors. We have actually now a complete ecosystem of partners, ETL partners, Informatica, Cloudera, Hortonworks, New Relic, you can feed data whether it's big data, it's transactional data, it's ERP 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 our ITX 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 2 d. It's 2 dimensional. It's just your sales force data.
The whole point about Analytics Cloud is to add more dimensions like 3 d. 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. And of course, support more device. So since last time we met, we've demonstrated 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 6 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.
So the platform is going up and a lot of new innovation, mostly driven by customer feedback. But 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 a product, remember, we are targeting the enterprise business and Verizon, Coke, Merck, but at Salesforce, that's not the only segment we serve with that product. We serve every segment.
And 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 sales force user. And that's what we're doing by launching the SalesWave Analytical app. It's basically a turnkey version of 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 sales force metadata because keep in mind, sales force is a platform. You can create custom objects in sales You can customize the way you do business. Well, analytics is also a platform. It's actually reading those metadata to build your KPIs, your pre built dashboards and your trending and Aces.
These are not canned dashboards. They read your Salesforce data and metadata and create automatically the app. And 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. So 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.
And we call that sales actions in the sales navigator app where you can log tasks, notes, create opportunity right from the dashboard. And 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 to 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 IT space can do. And we believe if you add those three things, integration with the Salesforce data, including the security integration and the profile, 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. So with no further due, more than a long speech, I'd love to have Jamie, Jamie Domenici, who runs marketing for the Analytics Cloud to join me on stage and show us those products.
Thanks. Thanks, Alex. Well, as Alex mentioned, we started with a platform, which we launched just 11 months ago, and we've just recently launched App. This is exciting. So let's look at a demo from the perspective of a sales manager.
Let's look at our sales way back. 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. And now with the sales wave, I can do that.
I have my 4 most important KPIs, my 10 most important dashboards and everything is in one place. No more looking through spreadsheets, calling your analysts, everything is right here and everything is interactive. So I can go from year to date to quarter to date to month to date with just a click of a button. And you know it's everything updates. Now I can see my forecast, something has happened here.
When I went to sleep, I was at 100%. I woke up and I'm at 92%. Now, 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 a.
M. Calls from my sales manager saying, where did my deals go? Like, what happened? And 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, and I can even see what's been pushed out. And it's all interactive. Now let's drill into that.
I want to look at my pipeline, but I want to see it by all of my sales leaders. And you can do that right here. I can see all of my sales managers. And if I click on Hillary, you'll see the waterfall chart updates. And now let's look at let's go to the next person.
Let's go to John. Now you can see everything's interactive. And let me walk you through the charts. The green, the green is good, right? Those are all 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. And 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. But I can also see things that were closed lost, not good, right?
And I can even see things that were pushed out. So let's click on that. Here you can see every single deal that was moved out. But not only that, you can see who's moving it and you could 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. And instantly can see something's happening in Texas. I have a large concentration of deals that are being pushed out here. And if you click on Texas, it's all interactive.
So now I can see all of my opportunities in Texas that I've been pushing. And clearly, there's a $1,000,000 deal, right, with South by Southwest. I want to be at South by Southwest. I need that deal. I want to bring it back in.
And now you don't just see something, you can actually take action right here, right in Wave, right in the sales force. So 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 e mail. You don't have to pick up the phone and call.
You can take action right here. Okay. Well, looks like I'm going to Texas. We got a little bit of a problem there. And 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.
And now you're on an iPad, correct? Yes.
And Alex will tell you, I just switched to my iPad. So I switched to my iPad. I'm looking at another dashboard here. And again, everything on my iPad is still Everything is connected. And I can even drill down.
So let's drill into a report. Let's look at all my opportunities by geo. I'm looking for deals in Texas. And you'll notice, this, as Alex pointed out, is our iPad and everything is optimized for the iPad. So I can use all the space that I need.
I have all the real estate that I want and everything is interactive. So let's drill down again. I want to see all the companies of the names, so all the names of all the opportunities that are in Texas. And 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. So let's add 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. So 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. So 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. And you have the ability to take action right here, right on your iPad, just like you did in your desktop.
So I'm going to take a snapshot, and I am going to go ahead and circle that big deal saying, Terry, look right here. And I'm going to create a ChatterPost right in Salesforce 1, right from my iPad. And 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.
And this is how sales managers and sales reps are using the Analytics Cloud and using the SalesWave 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 the demo. And I believe that was 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. So 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. So I think we covered a lot. And I think now we open for questions.
Great.
So is there any John, you you're the master of ceremony.
Hi, Alex. Karl Kjerstad at Deutsche Bank. My question is about the Analytics Cloud. Not so much about the product features, but 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.
And so 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, the pricing was keep in mind, when we introduced the product, we targeted the accounts you saw on that slide. I think it's very important to 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 1st 10 months of execution. And 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.
But clearly, as we want to expand in terms of market coverage, we need to come with offering that are probably more specific and less of a platform and more of an application like this cell web app like you saw. And we will clearly we'll be introducing lower price points, which are more per user, more stand out to how the Salesforce user is used to buy its Salesforce solution. So the Salesweb app is a first step in that direction. You'll see it come with a price point which is actually fitting the standout Salesforce structure, which is per user and a price per user which completely makes sense with our customers. So price is going to the short answer is I think we have communicated yet on the pricing because I want to make sure I don't trip on the timeline, but there is new additions to come with the Intix 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?
It has not been actually it's an 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. You mentioned last year we had GE Financial as a launch customer, but since then we signed, for example, GE Aviation. And one of the reasons why customers like General Electric love actually moving their data into ADX Cloud is first, it's run on Salesforce. So the benefit it's actually in the same hardware physically than our Salesforce force app.
So it has the same MSA and the same compliance level than any other sales force application, which for them is great. And in addition, with this, they really want the data to be in the data center and not on this or not on the laptop. And 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. So 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.
So our current architecture, which is cloud based, has been actually so far more an advantage than a challenge.
By bringing in additional It's
the number one yes, so actually the question is about augmenting Salesforce data with other data, sorry. Therefore, it was about moving data to the cloud. Well, no, actually, it's the number one use case, and that's why we kept the price very high because today 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 run our survey 2 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. And most of the customers you've seen on that slide are combining multiple data source together.
That's the number one use case. And that's why we believe it's a pretty high value use case. And 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. And first, we targeted the big ticket item because it was our 1st year 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 Salesforce is out of the box. You don't even have to think about it.
But 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 treat based on the usage of the service. So they really combine the customer data.
There is another customer who is doing blind spot analysis on deals. Same, they're combining multiple different systems together, billing and sales force. General Electric, they're combining multiple sales force and Siebel because they still have some Siebel stuff running to have 3 60 degree view of the customer. So I can go on and on and on, but most of those implementations have a combination of data source.
Alex Raimo Lenschow from Barclays. Quick one, if you look at them before you launch Wave, customer would probably go to a Tableau or a Click 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 what's missing if you're not quite there, what's missing?
Or are we now at the 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. And you have like steps. I mean, you have a pretty clear set of milestones. Our first was to start with the platform because if you look at the current state of the BI market, you have 2 big players, Cognos and Business Objects.
It happens that I know well as Subject because that was my first job. I build a product. And then they pretty much have done nothing. In the past 15 years, they've been subject in 2,000. I don't think they've done anything with the product.
And then you have a couple of emerging smaller vendors, which are bare execution of those initial play, but there are still technology build from client server where you have a client tool that connects to a data source, extract the data and then you build reports and then you distribute the data and the reports together on client device, mostly Windows. And when we build the product, it was a very different 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. So 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 the scripts. You send a JSON to HTTP port and it sends you back the dashboard.
It's really, really powerful. So from an architecture standpoint, I'm going a little bit deep in technology, no one else on the market has built that today. So it's a very super well designed platform that for us was the foundation to build a lot of stuff. And what you see emerging now are obviously super packaged apps because we can redo the system and build those apps automatically. It's also very integrated with 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 on 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 Click, none of them, beside maybe Qlik Sense, have an interactive client. None of them. It's just you consume something that has been produced on the Windows. So we think we have a product that is really, really built for a mobile social cloud world that no one has built. So we're very happy about the product.
I think what the area, to answer your question, where we laser focus now is indeed starting from that platform and moving down market. So 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. So there's a big effort to simplify and package the product as the mid market and low end product because we really started by serving the enterprise first. So 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. So 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 pay 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. Well, 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. So the team did an amazing job building a lot of code for Lightning in the form of all those widgets that we can benefit into the core product as well as on top of their product. So that's the second part, the widget and all the user interface. The 3rd area of investment for us are those apps, those packaged 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.
And we absolutely want to be the analytics solution for the Salesforce user. So having turnkey apps for mid market is the 3rd area. So 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 with this product. And again, it's 11 months into it.
So obviously, we'd love to be sorry to interrupt. We as Marc said, you always overestimate what you can do in 12 months, but underestimate what you can do in 10 years. And this product is clearly probably the best architecture we have ever built at Salesforce.
Hi, Alex. Kashurag with Veeva in there. I'm looking for analytics on your analytics product such as number of customers that you have that are in production, number of users that are live? And what are the implementation hurdles that you have observed in the last 11 months that you can iron out and make this more repeatable and
Hello. The good news is I have this application. 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. I think and we track 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 right we are subscription business.
So when our users are using, the revenue comes with it. So 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. So unfortunately, I don't know if we communicate about those metrics.
I have big no from the finance team. So I wish I could because I think it would publicize, but I think there's a lot of internal metrics we don't communicate about. So 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 sales force. So as you know, before we launch a product, we always make sure we use it. And then as a commercial customer, it's a very good question.
I would 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. And the main drive is we need to 1st, we need to consolidate more sales force and other data. And second, we need to give it to the end of the end user, which is really where all the existing BI solutions are breaking. And by the way, right now the BI market is going to go through a lot of transition in the coming 2 years because the big players, business subjects, 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 and customers want their cloud data to be smarter. They want to give their cloud data to their users. So you're going to see the market shifting from the big €800,000,000 gorilla to emerging solutions like Wave and that's clearly where we see the market shifting. But most of the replacements are business subjects 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 and
maybe it's not going to
be out for another year. But I did notice that the Thunder platform is using some Apache open source technologies, Storm, Spark, Kafka, Sandra. So I'm curious, how do you see your it seems like there could be some overlap with Hadoop vendors or NoSQL vendors. How do you see yourselves positioning visavis that ecosystem?
Yes. 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 the device or an application to your core business processes. And 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. So 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 our IoT cloud because it's an Elastic cloud. And the whole objective I heard that Todd 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 the signals and what process you should be starting into sales force out of those signals. So it's really 3 layers. The first one is obviously being able to receive billions of signals every day. 2nd is to define workflow.
It's a big workflow engine that is declarative. It's point and click. And third, it's connecting that workflow engine to all the other clouds, the Salesforce cloud. So an example I'll take, which is probably what one of the demo we'll 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 users, you need to be able to turn the signals into CRM if you have sent free emails with an attachment using Outlook 365, maybe I should send you an email to teach you about OneDrive. Because you know what, there is a better way to share files in the cloud with Office and that's the way they are using the IoT cloud. They are receiving the signals, creating categories of users and triggering processes. And the way they do that is through point and click. So they are one of our pilot customers on the technology.
And it's really about bringing that configuration layer on top of all those pretty hardcore technology. I mean, now many people know how to write the map for use. The IoT Cloud is very simple. You have listening ports, you define rules and then you connect to Service Cloud, Sales Cloud or Marketing Cloud objects, as simple as that. So it's really turning all those great ideas into an application that people can turn live without having to learn the hardcore and guts of all the technology you just mentioned.
We saw your announcement a week or so ago on e commerce and you talked a bit about it here with the community cloud. 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?
So the first thing with Salesforce is, as you know, we view ourselves 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. So 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. And we obviously always ask ourselves, does this belong to our core business or does this belong to our partner system? And 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's tons of different solutions. Actually, it's a very, very fragmented segment.
So 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. But really enable our customers to blend their e commerce experience through the API and our platform into their Salesforce community and portals. And it's true for a lot of things we do around Salesforce. But right now, based on how our customers are doing e commerce, we have not found like one predominant vendor.
And that's what's been driving our decision to leverage our ecosystem. It's also true it's also related to the fact that we operate in so many segments and so many industries. I mean Salesforce is really operating in a lot of different industries across a lot of segments. If you build the metrics of e commerce vendors, it's a pretty complex metrics actually of vendors. And at this point, our strategy is really to offer the framework for e commerce.
We have order objects. So we have only objects to do e commerce, but we our strategy is really to have a vibrant ecosystem.
Other questions?
No? Okay. Alex? Well, thank you. Thank you for your attention.
I know it was a long, long day. And thank you, John, for having me today.
Yes. Thanks so much.
So we have Keith Block
is going to close us out for the day. Keith will be down here in just a couple of minutes. And meanwhile, there is some beer outside. I know it's sort of a welcome announcement for many of you. I know it's been a very full day with a lot of content.
But 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 communities also very much showcases what we're doing on the platform side. So I think you really got a good sense of that today. And then Keith will be here shortly to talk about how we're selling this. And so with that, feel free to help yourself to some refreshments outside, and we'll resume here in just about 10 to 15 minutes.
All right. Thanks for your patience as we head into the final turn here. So 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. And really, this is an opportunity.
There are no prepared slides. This is really an open discussion with Keith. I 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 us data of sort of what you're seeing in the market right now and how you're thinking about distribution and progress in the enterprise. And then we'll just open up for questions and we'll just people raise their hand as ever.
So take
it away Keith. Are we going to
You can
walk around, you can sit.
I'll stand. I'll sit. Good afternoon. So I understand the cocktails are I'm between you and cocktails. Everybody in the back of the room is nodding.
Okay, I'll try to make this as stimulating as I possibly can. So 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 other 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. And we try to drive this incredible event to celebrate our customer 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.
And 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. So when I think about what's happening and when I have conversations with customers on a regular basis, there are a couple themes that are really coming out. Number 1 is that the age of cutting your way to prosperity is over, and this is all about the age of growth. And every CEO agenda that I'm aware of when I talk to CEOs and C level executives is that their agenda is growth. And of course, shareholder value, which I know is important to the folks in this audience.
And 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 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. And that has become, I would say, more than a steady drumbeat of conversations. We are having CEOs from all over the world come to here in San Francisco or at their own corporate headquarters and 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. And 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.
And very, 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 in a fairly regular basis and talk about transformation. And I think that Salesforce, I believe Salesforce is that company and will be that company. And there's one company that is a 3 letter acronym headquartered in the United States. You all know who it is and they're probably the closest that ever came to that. And that was a long time ago.
So 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, and the agenda of the CEO is growth. And so 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 bench of the consulting firms' benches are increasing with Salesforce. So they're increasing their capacity.
Many of you know if you fall in the press are actually acquiring capacity. Accenture recently made an announcement, as you know. And 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. So 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 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, so we're very, very excited about that and more to come there as we expand our vertical strategy. And then having the largest ecosystem in the cloud. And again, 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.
So 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. And we think that you're going to hear some pretty good stuff.
So 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 and we are at a very, very good time in the industry and I think we are uniquely qualified to take advantage of it. So I'm happy to take any questions. Mr. DiFucci? Hey,
Keith, actually it's Kirk Materne with Evercore back here.
Hope you're doing well.
Questions on Europe. Europe is somewhat underrepresented in terms of business to actually 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 was focused on Europe, but I guess the question could be applied to Asia as well. Thanks.
Yes. No, I appreciate the question. So 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. So 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. So 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 61,000,000 customers.
So 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, I mean all of the above. There is a wonderful opportunity in Europe and we're seeing really good traction there.
John DiFucci. Hi, Keith.
This is John DiFucci from Jefferies. Keith, I understand the role that Salesforce plays in helping your customers grow. And it sounds like and we cover a lot of software names anyway and they're all trying to grow. So it all makes sense. But when you start to think about sales force's growth and you're running a lot of parts of the organization, the operations of the organization, your past life you ran sales.
But and even in that life, you had a P and L that you
had to hold to.
And now you're running much broader organization. I just when does the cost of that growth become too much? And maybe the opportunity right now is so big that for now anyway, no cost is too great or it's probably not that. But 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 this is not Salesforce's unit economics.
So maybe you can hit on that a bit.
Okay. So number 1, we're a growth company. And we think every day we think about growth. And along with that, we think about our customer 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. And I'm sure in the cocktail hour, they'll do it on the back of an napkin if you wanted to. But 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 and with customer success drives growth. So we will invest in our customers, we will service our customers. And 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. So, but at the end of the day, John, we're a growth company, and we're taking share across the board in virtually every product set that we have. And just from a theory perspective, the more share you take, the more beaches you land on, the more opportunity you have to expand. And we're certainly doing that. Now, 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. But we have a very thoughtful process about how we invest And we have a very thoughtful planning process around how 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. And it's everybody in the entire company goes through a V2MOM. And it starts with the CEO. So Mark comes up with this corporate V2MOM, visions, values, methods, obstacles and measures.
Okay? And then every line of business executives has to do a V2MOM. And then everybody beyond that and it cascades down all the way to the lowest levels of the organization. And we track to a person who does and who does not do their V2MOM. And that allows us to prioritize everything that we do.
And we have this expression that says, if it's not on the V2MOM, it doesn't exist. So we go through a really diligent prioritization process. It's super disciplined and you know my background, you know where I worked. I have 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. And so 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. And there's all sorts of fun that goes with that and I'm sure you can appreciate it. So at the end of the day, we use those two processes to drive our growth strategy, our investment strategy, but the governing theme here is growth and customer success.
And there's 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 you put up earlier about 6% penetration into the Fortune 500. And 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? And maybe in terms of metrics, has it can you say anything about when it's done to close rates and maybe the size of the initial deal that's come through in that strategy?
Yeah. So 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. So Ignite is a process that 2 years ago, we would probably be able to do 2 or 3 Ignites at a time. Now we do hundreds of Ignites. And Ignite is a workshop, you think of it as almost like a management consulting workshop on the art of the possible.
So 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. And as a result, we're seeing 1st 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. So right away that resonates with the senior executive. That's just credibility. And as a result, they're willing to sit back, it's a thoughtful conversation and it could be a 3 week process, it could be a 6 week process And it could result in an initial deal that is small that balloons or it could result in a very, very large deal upfront.
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. But it is a standard process for us now in our selling motion and it made a huge difference in the way that customers view us. And they certainly think of us in a more strategic way, in 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.
But this has really deepened 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.
So 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 and 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? 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. So you have to know your stuff. And 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.
So years ago, you could talk to any CEO and they would be fearful of being Amazon. I'm sure you've all heard that expression. So if you were a retailer and you were a brick and mortar retailer and all of a sudden Amazon comes out of nowhere and your business model has been completely disrupted. Nobody saw that coming. So now you go around the world and you hear people say, I'm concerned about being Uber ed.
And when you think about Uber, and many of you are well aware of this, this is a company that's 5 years old, it's, I don't know, dollars 50,000,000,000 market cap, they don't have any cars, they don't have any drivers, but they leverage cloud technology, social technology, data science, mobile technology, they have built a great business model. And in the beginning of Uber, people thought, oh, this is just a replacement for limo service or taxi. But very quickly, Uber is really changing the game around transportation and logistics. And if you use your imagination about where that's going, if you're a traditional transportation logistics provider, your business is being disrupted. So you better start thinking about how you take advantage of these technologies.
So 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. Because with this technology, you can disrupt any industry. There's no industry that's immune to this disruption. So sure, there's always competition in a deal, but no other company has the breadth and depth of customer success platform that we do around customer engagement. And 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. So the company has 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? And are there rooms for productivity gains going forward?
And what is the company doing to ramp reps to be able to sell these?
So thanks for the question. So 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. And 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 as 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 these our reps successful working with customers. So 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 2 weeks more productive than they were before, if we can onboard them 2 weeks faster, that translates with thousands of people. You can draw your own conclusions there.
But 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.
Hi, Keith. Catharine Egbert from Piper Jaffray. Your original sales cloud was Salesforce Automation and Customer Relationship Management were displacement markets. And 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?
Well, I don't know specifically which displacement markets you're talking about, but
HR, financial, VRP. Yes. I mean, 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. And you sell. And if you sell to a customer, you have to service. And of course, you want to market.
And then once you have you want collaboration technology so that sales teams and service teams can work together. Those are very natural adjacencies. And 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. And when you're laser focused on something, it drives results.
And so we wanted to and I'm sure this is part of Mark's original thinking when he started the company that you want to be best in class in what you do. And if your portfolio is diluted, if your focus is diluted and you don't have the right model to capture the mindshare of your customer base, that introduce risk into your business. You may not realize it in the near term, but you're certainly going to realize in the long term. So we stay focused on the customer and that's what we're all about.
Tom Roderick with Stifel. 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. I'm curious which other verticals you see the most opportunity in. And when you look at sort of the product stack today versus what you've done with the sales force 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 and you acquire that? Do you think you can build it all in house? And maybe talk a little bit more about the structure of the sales force? Thanks.
Yeah, no problem. So 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. So 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. And as I said before, that means industry. You need to speak the language of industry. And 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 see
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 installed base, where we think it's a really good idea to have customers to have ISVs build out that capability. For example, I'll go back to Accenture. I'm very, very proud of the agreement that we signed with Accenture. We have wonderful relationships with all of the SEIs, every single one of the SIs.
We have a great relationship. But 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 is in the boardroom in just about every one of them. And they have come to the realization that this partnership where they've become 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.
And that's very exciting. And so 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 Velocity 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.
So 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. And if we can extend our reach by leveraging these partners, that's part of our strategy. So there were things that we will build organically, there were things that we will build in conjunction with our partners visavis this ISV program that is really taking off. And we will extend our reach leveraging the systems integrator community.
So that's really what's happening with our vertical strategy. Now 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 2 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.
And we tie that with our global industry organization underneath John Wilke so that everybody understands our messaging and our best practices. So as I said, we've done this in a very careful and thoughtful way And 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 they're all in these very strategic industries that we're going after.
Keith, Ross MacMillan from RBC. So Salesforce
I think has always had a reputation for being a great place to go as a young rep and a great stomping ground, a great learning place. But we're in a somewhat unprecedented period in terms of new company creation and competition for talent.
So I'm just
curious, are you having to do anything different to retain good reps and good quality people?
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. And 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 is in a great position. We are in 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. And 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. And by the way, this culture around philanthropy is a really big deal.
And so particularly if you're a young person, this is how you're raised. This is what you know. I mean, this is a different world now. So for the 20 somethings, it's a really cool place and they like to come here, they get great training, they have great experiences. And 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.
Heath, Brad Zelnick with Jefferies. My question for you is as much about enterprise technology sales and the evolution of enterprise technology sales since you've been doing
this a long time. Don't remind me.
But the game I think over the years has really changed. So aside from the customer preference now moving to more social, mobile, data science, cloud, if you think about the way that you led organizations 5, 10, 15 years ago and today what you're doing at Salesforce, I mean everything from lead gen all the way through deal close and renewal. Like 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 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?
Yes. You actually answered your own question. So thank you. So we eat our own dog food in the company. So there are companies that have technology that helps them do white space analysis or marketing or sales automation.
And if they're smart enough, they selected Salesforce to run all that for them. If they weren't smart enough to do that, then their results probably aren't that great. But 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.
And the technology has really accelerated the pace and the intelligence, including the predictive intelligence, which we know we're big announcement this week of how you engage, what the next best action is, who else do you interact with. I mean 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 3 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. And now you have technology that allows you to do that. And that's what's changed the game. So 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, your employees, There's way more collaboration. It just accelerates everything and it breaks down every wall that you can imagine.
And that has changed the game. Smart companies who leverage that and embrace that, they're going to win. And 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. And we're our own best example.
If you ever came out to our headquarters and talked that we see this expression sales force on sales force and see what we do, it's really impressive. It's really, really impressive stuff.
Kashrong, I'll be right there. Hey, Kash. What do you make of Oracle announcing earnings tomorrow during Mark's keynote at 2 o'clock?
Just kidding. That's I don't know if anybody
is going to be there to listen to
that announcement. So Maybe they have wonderful cloud numbers that will measure up to Salesforce. That was not my question though.
Good. I just wanted
to. Although it could be a question. Yes. There was a statistic shared earlier this morning, but Mark, I believe 81 you've got 81 you've got presence in 81% 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?
And secondly, a couple of years back, I remember you saying that half the Global 2,000 does not do business with Salesforce and that you have a tremendous opportunity. Just wondering if you have an update on that.
Yes. So
thanks for the question. There's a couple of ways for me to approach the question. Number 1, there is tremendous opportunity period. So there's tremendous opportunity in the Global 1,000 just in sales, Bob. And 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 installed base.
But beyond the existing installed base with Sales Cloud, there's just so much more opportunity for us to go there. And for every company that sells, they have to service going back to my answer over here, and they have to market and they have to collaborate with teams, whether it's employees or partners, and they have to do analytics. I mean, this is I can't emphasize enough how robust this platform is. And just around 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 media entertainment and media space and they provide service to a customer and they have huge attrition rates because they're sitting there for 4 or 5 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. And when you think about those type of business problems and the impact that they can have on a business, I mean, I just mentioned a telecommunications company, entertainment, meaning 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.
And because we're going to market this way by leveraging Ignite, 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. And it goes back to an earlier comment, the age of cutting your way to prosperity, it's done, it's over. It is not it's about growth, it's about customer engagement.
And that's why there is significant opportunity in the Global 1,000, there's significant opportunity in the broader market. There is significant opportunity by sales cloud, by service cloud, by communities, by analytics, by marketing. I mean, 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. Very, very optimistic about it.
Michael Long over Needham. Dreamforce is always packed with a ton of product and platform announcements and this year is no different and we've had a chance to kind of hear about some of them. But it's always sometimes it's tough to discern what's going to have the most impact from a near term or intermediate term. So 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? And if you put yourself in the shoes of a sales guy, like what are
they most excited about? Well, if the product managers were in the room, they wouldn't want me to answer that question, right? Because they're all going to say they're all great. And they are. Look, 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. So 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.
And 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. So I get very, very excited about that. So 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. So we've got a strong portfolio across the board.
We've got a lot of momentum in one of these areas, even some of these new product introductions. These things are built over time. These are many of the ideas come from our customers. We've got a lot of design partners, which are really proof points and that's how we launch into the market. So 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. I mean, we have 3 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. And we'll continue to innovate.
So 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, but I like all of them. I love what we're doing with analytics and sales apps and service apps. I think that will make customers way more productive.
So they're all good. I can't pick. I love all our children. How's that?
Thanks 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. And when I matched 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 $80,000,000,000 TAM in 2020 comes from platform. So question number 1, I'm assuming that platform is consistent platform is going to be important in being transformative.
So one is, is that a correct assumption you have to be successful in platform? And 2, if that's true, why is salesforce.com better positioned for that than AWS? AWS is the other cloud juggernaut, they've achieved 5 $1,000,000,000 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?
Yes. So a couple of things. Number 1, platform is very, very important. We are a platform company. There's no question about it.
And 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. We're building great applications. And we're signing up more and more of those on a regular basis. I mean, you can't really compare us with AWS. AWS is in a 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. And 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.
And those 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. And for example, we have this phrase of democratization. It's like creating a community, the citizen engineer. That's what we do.
And that's a really important part of our growth strategy. It's pace, it's speed, it's ease. AWS infrastructure, provisioning, servers, storage, right? 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 2 different things. And 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 2 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 like having the whole organization already where you wanted to be? Because it's you need more sales guys, you need the whole organization to understand the different cadence in enterprise, etcetera.
So where are you on your journey? Thank you.
So thank you for the question. I mean, 2 years ago, obviously, this is an organization that's had wild success. The company has been tremendously successful over its period of time in its history. But 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. And 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. But there is also another opportunity here, which was really started by these Ignites, 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, on a very scalable basis. So 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. So the base foundational strategy certainly has not changed. It's not going to change. But I would say that the next evolution, which we're getting started in this journey is really, really, 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 1, maybe 2 more questions. That's that'll be it.
Hi. Over here, Steve Ashley, Robert Baird. So having heard this having heard you talk here, my question isn't why would somebody say yes, it's why would somebody say no. I mean 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. Or 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. But 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, very different agendas.
A CEO who is focused on vision and growth and recognizes the importance of the customer embraces our message pretty easily. And then the speed at which they deploy our message or take advantage of our message in our vision, our joint vision is a question of their risk tolerance because these are I mean, if you think about it, some of these corporations, they're very large, they're very complicated, they've invested tens of 1,000,000, 100 of 1,000,000,000,000 of dollars in existing legacy infrastructure. You just don't 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. And one of the ways that we've provided value very rapidly and de risk 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. So 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 wraparound 13 legacy systems. And we were able to substantially reduce call times. And over time, we are replacing each one of those legacy systems.
So the visionary CEO gets it. And some companies, change is tough. But eventually, all companies want to grow. And it goes back to my earlier comment about the age of cutting your way to prosperity is done. So when you think about all these great technologies and the disruption, you have to be thinking about this technology is 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. Keith, Satya Nadella is keynoting tomorrow. That's kind of incredible.
I remember 3 or 4 years ago on stage, Marc Benioff characterized them as being very legacy and treated them a little bit like Oracle and SAP. And now it feels like it's changed 180. And 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. And 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.
And that's just a customer benefit. So I think it manifests itself in a nice relationship. Mark and Satya have a nice relationship and 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. So let's give him a round of applause. Absolutely. He's a great partner.
I also want to just say a couple of points here. First of all, it's been a long day, but we started out this day talking about an incredible opportunity. And 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 our commitment to grow in the 20% to 30% year over year growth range, also and how we were going to do that, right, we went into detail on that.
We talked about also our operating margin and the fact that you should expect 100 to 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. And 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. So 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 dream for us. Thanks for being here.
It's really a pleasure.