Force.com ISV Partner Program
Force.com ISV Partner Program “The Fastest Path to the Cloud” Mark Trang Director, ISV Marketing & Programs salesforce.com
Safe Harbor Statement “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates. Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forwardlooking statements, except as required by law.
2
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Go-to-Market Model Getting Started
3
Our Mission: Cloud Computing Driver, Catalyst & Evangelist
1960’s Mainframe
1980’s Client/server
Today Enterprise Cloud Computing Forecast for software: cloudy.
4
Applications Moving to the Cloud
1960’s Mainframe
5
1980’s Client/server
Today Cloud Computing Applications
Massive Opportunity Across All Categories 14,000
Worldwide SaaS Revenue Other
Millions of Dollars
12,000 10,000
Over 20% CAGR!
Supply Chain Management
8,000
Office Suites
6,000
ERP
4,000 2,000 0 2005 2006 2007 2008 2009 2010 2011
Content & Collaboration CRM
“By 2012, more than 66% of independent software vendors (ISVs) will offer some of their applications optionally or exclusively as SaaS.”
6
Recession Accelerates SaaS Adoption Worldwide SaaS Revenue, 2009-2012 22 20
Revised Forecast
Spending ($B)
(Nov 2008)
18 16
+$8.4B
14 12 Pre-Crisis Forecast
10 2009
7
Source: IDC
(Jul 2008)
2010
2011
2012
Platforms Moving to the Cloud
1960’s Mainframe
8
1980’s Client/server
Today Cloud Computing Platforms
The Cloud Computing Model
Multi-tenant Pay-as-you-go Elastic No Capital Expense Modest Operating Expense Scales With Your Business
Yefim Natis, VP, Distinguished Analyst
Great for times like these.
Multi-Tenancy Makes Cloud Computing Possible Single-Tenant Platforms (On-Premise or Hosted)
Multi-Tenant
One Company Many App Stacks
Many Companies One Shared Stack
Buy, Install, Build, Tune, Upgrade 10
Innovation. Not Infrastructure
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Business Model Getting Started
11
3 Types of SaaS Companies
12
“Idea-to-SaaS”
“SaaS-to-SaaS”
New SaaS Startups
Existing SaaS ISVs
“On-Premise-to-SaaS”
Established Traditional ISVs
The Challenge: The Path to Success is not Well-Paved How do I begin building my SaaS applications?
How do I generate awareness and leads?
How do I become a credible SaaS provider?
How do I manage upgrades and versioning over time?
13
How do I support customer demos, trials and proof of concepts?
How do I handle billing and collections for subscriptions?
Traditional Path to SaaS – Long, Expensive, Risky Getting to Market & Generating Profits is Hard
INVESTMENT
Profits Generated
pp A S aa S ur Yo
Product In Market
B
14
di n l i u
g
aa S ur Yo
S
rm o f t Pla
1
2
Year
Years
Your Domain Expertise & Marketing
You Should Focus On Your Core Competencies Apply your resources where they matter most! Innovation. Not Infrastructure.
DIY Approach SaaS Competitive Advantage
Your Domain Expertise & Marketing Business Services
SaaS Competitive Parity
Tech Operations
App Services
Hosting Infrastructure
15
Focus where you can really differentiate!
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Go-to-Market Model Getting Started
16
It’s Time For Every ISV To Ask:
“How Will I Build My Applications?”
17
Traditional Software Model Gets in the Way Costs, complexity and risk stand between you and success
Your Ideas
Application Services
Network
Security
Authentication
Ordering
Storage
Sharing
Availability
Provisioning
Operating System
Integration
Monitoring
Licensing
Database
Customization
Patch Mgmt
Billing
App Server
Web Services
Upgrades
Renewal
Web Server
API
Backup
Upgrades
Data Center
Multi-Language
NOC
Marketing
Disaster Recovery
Multi-Currency Workflow Analytics Multi-Device Messaging Search
18
Operations Services
Infrastructure Services
Business Services
Sales
Your SaaS Apps & Profitability
ISVs Have Asked: “Why can’t I run my apps on Salesforce.com’s platform?”
19
Build & Run Your Cloud Business on Force.com
Complete Platform Fast to Build Apps Trusted to Run Apps Your Success
“
The Force.com platform gives us all the application development power of .NET or J2EE but with no software infrastructure to worry about.
”
- Ted Elliot, CEO
20
Force.com Enables The Real-Time Cloud
The world’s most complete cloud.
The fast way to build in the cloud.
The world’s first real-time cloud.
The Real-Time Cloud in Detail
Unlimited RealTime Customization
Granular Security & Sharing
Programmable Cloud Logic
Real-Time Workflow & Approvals
Programmable User Interface
Real-Time Mobile Deployment
Real-Time Websites
Integrated Content Library
Real-Time Analytics
750+ Integrated Applications
ISO 27001 Certified Security
Proven Reliability
Proven, Real-Time Scalability
Real-Time Query Optimizer
Real-Time Upgrades
Proven Real-Time integration
Real-Time Sandbox Environments
Salesforce to Salesforce
3 Global Data Centers & Disaster Recovery
Real-Time Transparent System Status
Multi-Tenant Kernel
The Force.com Multi-Tenant Architecture The Foundation for the Real Time Architecture Metadata Build on Our Cloud Platform: Complete Set of Tools
Succeed with Protected Metadata: 13 Million+ Customizations
Build Fast
for 55,000+ Customers
Run on Our RealTime Infrastructure: Multi-tenant Architecture Trusted, Proven, Secure
23
Upgraded Automatically
******
Force.com: Out-of-the-Box Multi-Tenancy The Unfair Advantage Every ISV Needs Lower Costs Reduced startup and operating costs by order of magnitude
End User Customizations
Automatic improvements Instantly inherit upgrades: Your apps get better with every Force.com release
Extreme Productivity Developers free to focus on creating real IP, not overhead
Instant trust & credibility Your apps backed by our brand
24
Your Application & Intellectual Property
Out-of-the-Box Application Capabilities Force.com delivers all these key requirements
25
Easy Point & Click Customization
Proven Enterprise Scalability
Multi-tenant, SAS 70-compliant Infrastructure
User Security & Sharing Model
Robust Developer Tools & Community
Mobile Support
Audit Trails for Compliance
Multi-Language Multi-Currency
Deliver Any User Interface
Reporting & Analytics Engine
Workflow Engine
Proven Integration via Global API
Force.com: Proven Platform for Over a Decade 10 500
$500M+ Infrastructure 55,000+ customers
Quarterly Transactions (billions)
Page Response Times (ms)
1,500,000+ paying subscribers 175M+ daily transactions SAS 70 Type II, SysTrust
2005
2006
2007
2008
Fiscal Year
and ISO 27001 Certified 25+ generations of innovation
26
Performance that Continually Improves with Analysis of 55,000 Customers
2009
What’s In It for Developers? 20-month study of Force.com productivity conducted during 2007-2008 Conclusions compared to Java development:
27
Requirements Definition Time
Testing Effort
Productivity Gains
Project Costs
25%
10%
5X
30-40%
Develop Apps Across Cloud Platforms
28
Salesforce.com in the Visionaries Quadrant of Gartner Enterprise Application Server Magic Quadrant Force.com is well-ahead of all major players in SaaS and PaaS markets, as well as in mind share, forcing most competitors to catch up.
April 24, 2008
29
29
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Business Model Getting Started
30
Force.com ISV Partner Program Everything a SaaS ISV needs to Build and Market their Apps
Force.com ISV Partner Program Value for Partners
Pricing Model
Scales as you close customers
Demand Generation
Free Trials from your website A la carte marketing programs
Go-to-Market
Program Benefits
31
Access to Force.com technology & Salesforce.com’s distribution channel
Distribution channel to Salesforce users Free Leads from AppExchange Technical enablement, go-to-market readiness
Force.com Platform: Embedded License for ISVs
Embedded License “$15 or 15%” 9 $15/user/month or 15% of ISV Revenue 9 App must be deployed to a new org 9 Allows ISVs to distribute to net-new customers 9 ISVs get Force.com capabilities (No CRM) 9 End Customer CAN customize/configure ISV app 9 End Customer CANNOT add new objects or tabs
32
Force.com Platform Functionality Includes collaboration + platform without CRM functionality Basic Collaboration
+ Platform Features
-
CRM features
√ Home
√ Custom apps
8 No campaigns
√ Accounts
√ Custom tabs
8 No leads
√ Contacts
√ Custom objects
8 No opportunities
√ Documents
√ Workflow
8 No cases
√ Tasks & Events
√ API
8 No solutions
√ Reports & Dashboards
√ Storage
8 No products
√ Sandbox*
8 No forecasts
√ Mobile**
8 No contracts
* Developer sandbox included ** Mobile licenses available for an additional fee
8 No analytics for CRM objects 8 No future standard objects 8 No Salesforce Ideas
33
Flexible Pricing Schedule Deliver apps for any use case on Force.com
Product
Price
Embedded License
$15/user/month or 15% of Revenue*
Force.com Sites**
Same as end-user cost
Customer Portal
$2.50 / user / month***
* Percentage of Revenue Share: $1 per user per month floor; apps must be approved to qualify) ** Pending general availability of Sites *** Eligible for Revenue Share model
34
Leverage Salesforce.com’s Ecosystem More Than just Technology
35
Customer Install Base
Marketing
Global Distribution
Delivery
55,000+ Customers 1.5M Subscribers
Joint Marketing and PR
High Velocity Channels
Certified SI & Developer Resources
The AppExchange Channel Market & Sell to Existing Salesforce.com Customers
Access To 1.5+ Million Salesforce.com Users
68,000+ Installs 330,000+ Test Drives 800+ Apps
36
Generate Leads from Free Trials
One-click installation & interoperability
Flexible, Independent Distribution Options Market & Sell To Your Own Markets
Backed by our proven brand
Standalone Trials Unlimited Market Reach
37
Hundreds of ISVs Adopting Force.com Trusted Easy to Deploy Fully Interoperable
38
Established ISV on Force.com
Build first app in 6 months Full accounting features available Transacting on Checkout since Nov ‘08 Jeremy Roche CEO
39
Startup SaaS ISVs Launching on Force.com Customers Include:
Enterprise Risk management Fortune 500 customers Force.com Native application 100% Self-funded Profitable in 1 year
40
Fastest Way to Build Apps Months/Years to Build Buy Servers
Build Security
Build Datacenter
Build Analytics
Build Search
Build Sharing
Build Workflow
Globalize Deploy Mobile
Build Your App
Already Built on Force.com: Don’t Reinvent the Wheel Build Your App
Your Success
41
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Business Model Getting Started
42
Next Steps – Getting Started Business Execs
43
Technologists
1. Enroll in Force.com ISV Program
1. Get a Free Developer Account
2. Review Force.com platform info
2. Attend Technical ISV Webinar
3. See more Success Stories
3. Read the Technical Library
4. Learn about Marketing options
4. Join active discussion forums
developer.force.com/isv
developer.force.com
Question & Answer Session
developer.force.com/isv
44
Backup Slides
developer.force.com/isv
45
Bottom Line: Build Faster, Stronger, Better Comparing Approaches to Building Enterprise-Grade SaaS Apps
Time to Market
Startup Costs
DIY Platform
Force.com Platform
Beta 6+ months, GA 1+ Year
App Dev starts on Day 1
$100K-$1M+
$0
(Hardware & Software Infrastructure)
Ongoing Costs & Operations
Multi-Tenant?
Perceived Market Credibility
Talent Pool & Org Focus
46
Infrastructure Growth & Headcount
Variable Costs only
No – build from scratch
Yes – out of the box
Unproven/High-Risk
Proven Global Infrastructure
Spread thin across the stack
100% Focused on Building Apps
46
Multi-Tenancy – the Secret of Salesforce.com’s Success
Seamless Upgrades
Instant Capacity
“
Continuous Innovation
Instant Provisioning
Faster Over Time
Multi-tenant application platforms represent the state of the art foundation for cloud-based business applications.
”
Yefim Natis VP, Distinguished Analyst
47
Economies of Scale
47
Adoption & Usability
More Secure Over Time
Force.com ISV Licensing Scenarios Existing Salesforce.com Customer Sufficient Licenses
Insufficient Licenses
Customer Buys Directly from ISV
ISV Co-Sells with SFDC; Customer Buys Directly from each Vendor
ISV Sells Their Apps
ISV Sells Their Apps
Existing SFDC Users
SFDC sells Addt’l Seats
No Existing Licenses or Org Customer Buys Directly from ISV
ISV Sells Their Apps
Existing SFDC Users
ISV Owes Salesforce.com No Fees
48
Net New Customer
ISV Embeds Force.com
ISV Pays Salesforce.com Embedded Fee per User
Safe Harbor Statement “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates. Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forwardlooking statements, except as required by law.
2
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Go-to-Market Model Getting Started
3
Our Mission: Cloud Computing Driver, Catalyst & Evangelist
1960’s Mainframe
1980’s Client/server
Today Enterprise Cloud Computing Forecast for software: cloudy.
4
Applications Moving to the Cloud
1960’s Mainframe
5
1980’s Client/server
Today Cloud Computing Applications
Massive Opportunity Across All Categories 14,000
Worldwide SaaS Revenue Other
Millions of Dollars
12,000 10,000
Over 20% CAGR!
Supply Chain Management
8,000
Office Suites
6,000
ERP
4,000 2,000 0 2005 2006 2007 2008 2009 2010 2011
Content & Collaboration CRM
“By 2012, more than 66% of independent software vendors (ISVs) will offer some of their applications optionally or exclusively as SaaS.”
6
Recession Accelerates SaaS Adoption Worldwide SaaS Revenue, 2009-2012 22 20
Revised Forecast
Spending ($B)
(Nov 2008)
18 16
+$8.4B
14 12 Pre-Crisis Forecast
10 2009
7
Source: IDC
(Jul 2008)
2010
2011
2012
Platforms Moving to the Cloud
1960’s Mainframe
8
1980’s Client/server
Today Cloud Computing Platforms
The Cloud Computing Model
Multi-tenant Pay-as-you-go Elastic No Capital Expense Modest Operating Expense Scales With Your Business
Yefim Natis, VP, Distinguished Analyst
Great for times like these.
Multi-Tenancy Makes Cloud Computing Possible Single-Tenant Platforms (On-Premise or Hosted)
Multi-Tenant
One Company Many App Stacks
Many Companies One Shared Stack
Buy, Install, Build, Tune, Upgrade 10
Innovation. Not Infrastructure
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Business Model Getting Started
11
3 Types of SaaS Companies
12
“Idea-to-SaaS”
“SaaS-to-SaaS”
New SaaS Startups
Existing SaaS ISVs
“On-Premise-to-SaaS”
Established Traditional ISVs
The Challenge: The Path to Success is not Well-Paved How do I begin building my SaaS applications?
How do I generate awareness and leads?
How do I become a credible SaaS provider?
How do I manage upgrades and versioning over time?
13
How do I support customer demos, trials and proof of concepts?
How do I handle billing and collections for subscriptions?
Traditional Path to SaaS – Long, Expensive, Risky Getting to Market & Generating Profits is Hard
INVESTMENT
Profits Generated
pp A S aa S ur Yo
Product In Market
B
14
di n l i u
g
aa S ur Yo
S
rm o f t Pla
1
2
Year
Years
Your Domain Expertise & Marketing
You Should Focus On Your Core Competencies Apply your resources where they matter most! Innovation. Not Infrastructure.
DIY Approach SaaS Competitive Advantage
Your Domain Expertise & Marketing Business Services
SaaS Competitive Parity
Tech Operations
App Services
Hosting Infrastructure
15
Focus where you can really differentiate!
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Go-to-Market Model Getting Started
16
It’s Time For Every ISV To Ask:
“How Will I Build My Applications?”
17
Traditional Software Model Gets in the Way Costs, complexity and risk stand between you and success
Your Ideas
Application Services
Network
Security
Authentication
Ordering
Storage
Sharing
Availability
Provisioning
Operating System
Integration
Monitoring
Licensing
Database
Customization
Patch Mgmt
Billing
App Server
Web Services
Upgrades
Renewal
Web Server
API
Backup
Upgrades
Data Center
Multi-Language
NOC
Marketing
Disaster Recovery
Multi-Currency Workflow Analytics Multi-Device Messaging Search
18
Operations Services
Infrastructure Services
Business Services
Sales
Your SaaS Apps & Profitability
ISVs Have Asked: “Why can’t I run my apps on Salesforce.com’s platform?”
19
Build & Run Your Cloud Business on Force.com
Complete Platform Fast to Build Apps Trusted to Run Apps Your Success
“
The Force.com platform gives us all the application development power of .NET or J2EE but with no software infrastructure to worry about.
”
- Ted Elliot, CEO
20
Force.com Enables The Real-Time Cloud
The world’s most complete cloud.
The fast way to build in the cloud.
The world’s first real-time cloud.
The Real-Time Cloud in Detail
Unlimited RealTime Customization
Granular Security & Sharing
Programmable Cloud Logic
Real-Time Workflow & Approvals
Programmable User Interface
Real-Time Mobile Deployment
Real-Time Websites
Integrated Content Library
Real-Time Analytics
750+ Integrated Applications
ISO 27001 Certified Security
Proven Reliability
Proven, Real-Time Scalability
Real-Time Query Optimizer
Real-Time Upgrades
Proven Real-Time integration
Real-Time Sandbox Environments
Salesforce to Salesforce
3 Global Data Centers & Disaster Recovery
Real-Time Transparent System Status
Multi-Tenant Kernel
The Force.com Multi-Tenant Architecture The Foundation for the Real Time Architecture Metadata Build on Our Cloud Platform: Complete Set of Tools
Succeed with Protected Metadata: 13 Million+ Customizations
Build Fast
for 55,000+ Customers
Run on Our RealTime Infrastructure: Multi-tenant Architecture Trusted, Proven, Secure
23
Upgraded Automatically
******
Force.com: Out-of-the-Box Multi-Tenancy The Unfair Advantage Every ISV Needs Lower Costs Reduced startup and operating costs by order of magnitude
End User Customizations
Automatic improvements Instantly inherit upgrades: Your apps get better with every Force.com release
Extreme Productivity Developers free to focus on creating real IP, not overhead
Instant trust & credibility Your apps backed by our brand
24
Your Application & Intellectual Property
Out-of-the-Box Application Capabilities Force.com delivers all these key requirements
25
Easy Point & Click Customization
Proven Enterprise Scalability
Multi-tenant, SAS 70-compliant Infrastructure
User Security & Sharing Model
Robust Developer Tools & Community
Mobile Support
Audit Trails for Compliance
Multi-Language Multi-Currency
Deliver Any User Interface
Reporting & Analytics Engine
Workflow Engine
Proven Integration via Global API
Force.com: Proven Platform for Over a Decade 10 500
$500M+ Infrastructure 55,000+ customers
Quarterly Transactions (billions)
Page Response Times (ms)
1,500,000+ paying subscribers 175M+ daily transactions SAS 70 Type II, SysTrust
2005
2006
2007
2008
Fiscal Year
and ISO 27001 Certified 25+ generations of innovation
26
Performance that Continually Improves with Analysis of 55,000 Customers
2009
What’s In It for Developers? 20-month study of Force.com productivity conducted during 2007-2008 Conclusions compared to Java development:
27
Requirements Definition Time
Testing Effort
Productivity Gains
Project Costs
25%
10%
5X
30-40%
Develop Apps Across Cloud Platforms
28
Salesforce.com in the Visionaries Quadrant of Gartner Enterprise Application Server Magic Quadrant Force.com is well-ahead of all major players in SaaS and PaaS markets, as well as in mind share, forcing most competitors to catch up.
April 24, 2008
29
29
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Business Model Getting Started
30
Force.com ISV Partner Program Everything a SaaS ISV needs to Build and Market their Apps
Force.com ISV Partner Program Value for Partners
Pricing Model
Scales as you close customers
Demand Generation
Free Trials from your website A la carte marketing programs
Go-to-Market
Program Benefits
31
Access to Force.com technology & Salesforce.com’s distribution channel
Distribution channel to Salesforce users Free Leads from AppExchange Technical enablement, go-to-market readiness
Force.com Platform: Embedded License for ISVs
Embedded License “$15 or 15%” 9 $15/user/month or 15% of ISV Revenue 9 App must be deployed to a new org 9 Allows ISVs to distribute to net-new customers 9 ISVs get Force.com capabilities (No CRM) 9 End Customer CAN customize/configure ISV app 9 End Customer CANNOT add new objects or tabs
32
Force.com Platform Functionality Includes collaboration + platform without CRM functionality Basic Collaboration
+ Platform Features
-
CRM features
√ Home
√ Custom apps
8 No campaigns
√ Accounts
√ Custom tabs
8 No leads
√ Contacts
√ Custom objects
8 No opportunities
√ Documents
√ Workflow
8 No cases
√ Tasks & Events
√ API
8 No solutions
√ Reports & Dashboards
√ Storage
8 No products
√ Sandbox*
8 No forecasts
√ Mobile**
8 No contracts
* Developer sandbox included ** Mobile licenses available for an additional fee
8 No analytics for CRM objects 8 No future standard objects 8 No Salesforce Ideas
33
Flexible Pricing Schedule Deliver apps for any use case on Force.com
Product
Price
Embedded License
$15/user/month or 15% of Revenue*
Force.com Sites**
Same as end-user cost
Customer Portal
$2.50 / user / month***
* Percentage of Revenue Share: $1 per user per month floor; apps must be approved to qualify) ** Pending general availability of Sites *** Eligible for Revenue Share model
34
Leverage Salesforce.com’s Ecosystem More Than just Technology
35
Customer Install Base
Marketing
Global Distribution
Delivery
55,000+ Customers 1.5M Subscribers
Joint Marketing and PR
High Velocity Channels
Certified SI & Developer Resources
The AppExchange Channel Market & Sell to Existing Salesforce.com Customers
Access To 1.5+ Million Salesforce.com Users
68,000+ Installs 330,000+ Test Drives 800+ Apps
36
Generate Leads from Free Trials
One-click installation & interoperability
Flexible, Independent Distribution Options Market & Sell To Your Own Markets
Backed by our proven brand
Standalone Trials Unlimited Market Reach
37
Hundreds of ISVs Adopting Force.com Trusted Easy to Deploy Fully Interoperable
38
Established ISV on Force.com
Build first app in 6 months Full accounting features available Transacting on Checkout since Nov ‘08 Jeremy Roche CEO
39
Startup SaaS ISVs Launching on Force.com Customers Include:
Enterprise Risk management Fortune 500 customers Force.com Native application 100% Self-funded Profitable in 1 year
40
Fastest Way to Build Apps Months/Years to Build Buy Servers
Build Security
Build Datacenter
Build Analytics
Build Search
Build Sharing
Build Workflow
Globalize Deploy Mobile
Build Your App
Already Built on Force.com: Don’t Reinvent the Wheel Build Your App
Your Success
41
Agenda Our Vision for Cloud Computing Building a Winning SaaS Company Why Force.com – Technology Model Why Force.com – Business Model Getting Started
42
Next Steps – Getting Started Business Execs
43
Technologists
1. Enroll in Force.com ISV Program
1. Get a Free Developer Account
2. Review Force.com platform info
2. Attend Technical ISV Webinar
3. See more Success Stories
3. Read the Technical Library
4. Learn about Marketing options
4. Join active discussion forums
developer.force.com/isv
developer.force.com
Question & Answer Session
developer.force.com/isv
44
Backup Slides
developer.force.com/isv
45
Bottom Line: Build Faster, Stronger, Better Comparing Approaches to Building Enterprise-Grade SaaS Apps
Time to Market
Startup Costs
DIY Platform
Force.com Platform
Beta 6+ months, GA 1+ Year
App Dev starts on Day 1
$100K-$1M+
$0
(Hardware & Software Infrastructure)
Ongoing Costs & Operations
Multi-Tenant?
Perceived Market Credibility
Talent Pool & Org Focus
46
Infrastructure Growth & Headcount
Variable Costs only
No – build from scratch
Yes – out of the box
Unproven/High-Risk
Proven Global Infrastructure
Spread thin across the stack
100% Focused on Building Apps
46
Multi-Tenancy – the Secret of Salesforce.com’s Success
Seamless Upgrades
Instant Capacity
“
Continuous Innovation
Instant Provisioning
Faster Over Time
Multi-tenant application platforms represent the state of the art foundation for cloud-based business applications.
”
Yefim Natis VP, Distinguished Analyst
47
Economies of Scale
47
Adoption & Usability
More Secure Over Time
Force.com ISV Licensing Scenarios Existing Salesforce.com Customer Sufficient Licenses
Insufficient Licenses
Customer Buys Directly from ISV
ISV Co-Sells with SFDC; Customer Buys Directly from each Vendor
ISV Sells Their Apps
ISV Sells Their Apps
Existing SFDC Users
SFDC sells Addt’l Seats
No Existing Licenses or Org Customer Buys Directly from ISV
ISV Sells Their Apps
Existing SFDC Users
ISV Owes Salesforce.com No Fees
48
Net New Customer
ISV Embeds Force.com
ISV Pays Salesforce.com Embedded Fee per User
