Six Things About "The Cloud"

@PeterCoffeePeter Coffee
VP & Head of Platform Research
salesforce.com inc.
Six Things You Didn’t Know
That “The Cloud” Could Do

@PeterCoffee
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Safe Harbor
In Other Words:
Everything That
You See Here
is Real

@PeterCoffee
• Since the IBM PC was introduced (Aug.1981 to now)
• Processor speed has risen ~25 per cent per year
• Memory capacity has grown ~40 per cent per year
• Mass storage surging ~50 per cent per year
• Desktop systems are burdened with too much state
• File system technology has not addressed new needs
• Governance falls short of rising demands
• Trends redefine “best practice”
• Bandwidth expansion: ~45 %/year
• Processor road maps favor shared machines 
• Data centralization  superior governance*
* Knowingly provocative statement with backup to come
‘Cloud’ Happened When Curves Crossed
Server shipment growth rates:
Server market overall, 2011-2015:
7.1% CAGR (TechNavio)
“One of the key factors contributing to this
market growth is the growing adoption of
cloud computing.”
Servers for cloud hubs, 2011-2015:
21% CAGR (IDC)

@PeterCoffee
“Digital Camera”: every December, it’s still news to someone
“Cloud Computing”: as more use it, fewer ask about it
This Is How Novelty Ends

@PeterCoffee
Stages of Enterprise Cloudification
• Trivialize ("cloud is just for consumers")
• Marginalize ("cloud is just SaaS point solutions")
• Demonize ("we can't trust the cloud")
• Rationalize ("our regulators won't let us use the cloud")
• Galvanize (“Whoa! Competitors are killing us in cloud!)
• Evangelize ("we're industry leaders thanks to cloud")
cloudblog.salesforce.com/2011/05/ize-on-the-cloud.html

@PeterCoffee
Enterprise Workloads Served Daily

@PeterCoffee
Marketing App
Exchange
Service Work.comSales
Yes, it begins with what we once called “CRM”
What you touch most often
How you control where you go
But the steering wheel is not the car

@PeterCoffee
Sales
Database.com
A Platform’s Foundation is Data
The salesforce.com multi-tenant database is
secure, scalable, and equipped to build
collaborative and event-driven applications –
far more quickly than any mere data container

@PeterCoffee
Sales
Force.com
Why build apps for 2010s as if it’s still the ’90s?
Database.com
Force.com platform is “under the
hood” of Salesforce CRM: it enables
rapid customization with clicks, not
code, but still has full custom code
capability. Build apps 5x faster* than
.Net or Java
* Nucleus Research,
Galorath and other
studies available on
request

@PeterCoffee
Sales
Force.com
Chatter
Why build apps that make you come looking?
Database.com
Data.comData.com
Chatter brings data and processes right to you
Data.com puts data grooming at the point of use

@PeterCoffee
Force.com
It Only Matters If It Integrates – Securely
• Bring in the information that matters most: what your
customers and partners are doing, and what they want
• Connect it with the information you already own: all of
your legacy assets become more valuable in more ways
HerokuSite.com CommunitiesForce.com
Database.com
Chatter
AppExchange Apps
ERP
Any System
Finance
Back-end Systems
Any Social
Network

@PeterCoffee
Marketing
App
ExchangeService Work.comSales
HerokuForce.com Site.com
Database.com
Communities
Chatter
Data.com
Connect to Control
AppExchange Apps
ERP
Any System
Finance
Back-end Systems
Any Social
Network
Sell. Service. Market. Manage & Grow. Enlist & Engage.

@PeterCoffee
“When hundreds or even thousands
of other businesses are using
exactly the same operational
infrastructure, all of them…benefit
from the hardening of the
infrastructure after any of them
come in contact with a newly
detected threat.”
Cloud Efficiencies Rise to the Challenge

@PeterCoffee
“Despite resource sharing,
multitenancy will often improve
security…
“Our research and analysis indicates
that multitenancy is not a less secure
model — quite the opposite!”
All Assets Secured, All the Time

@PeterCoffee
“I’ve been looking for it, but I can't find any real evidence that the cloud is more
risky than hosting everything completely internal,” said Wade Baker, managing
principal of Verizon's RISK group, which investigates breaches. Verizon owns
cloud provider Terremark. “I’ve studied a lot of breaches; we get a lot of information
from a lot of different organizations, and it doesn’t seem to be there.”
Most hacking attacks against corporations are still aimed at internal computer
systems, he said. Eighty percent of the breaches Verizon investigated in 2012
involved internally hosted data. The remainder involved externally hosted
data -- but those breaches began inside companies’ networks and spread to
the third-party hosting services, not the other way around, Baker said.
- www.bloomberg.com/news/2013-03-26/security-fears-give-way-to-economics-as-cloud-computing-grows.html
All Assets Secured, All the Time

@PeterCoffee
• Data protection regulations
– Where can it be stored?
– Who’s allowed to see it?
• Peel the onion of ‘compliance’
– Anonymize/encrypt/partition specific fields
– Cloud disciplines can enhance auditability
• Role-based privilege assignment
• Actions taken using granted privileges
• Looking beyond the FUD
– USA PATRIOT Act sometimes causes concern about powers
of US government to access data
– Limited to information-gathering related to matters of urgent national security
– Use of USA PATRIOT Act requires involvement by all three branches of the US
government
– Many other countries, including in Europe, have very similar powers
Data Stewardship is a Practice, not a Technology

@PeterCoffee
Data Governance Norms are Global
“While the [USA] Patriot Act continues to be invoked as a kind
of shorthand to express the belief that the United States
government has greater powers of access to personal data in
the Cloud than governments elsewhere, and that ‘local clouds’
are the solution, a recent study we conducted of the laws of
Australia, Canada, Denmark, France, Germany, Ireland, Japan,
Spain, United Kingdom—and the United States—shows that it
is simply incorrect to assume that the United States
government's access to data in the Cloud is greater than that of
the other advanced economies.
“Law enforcement and national security officials have broad
access to data stored locally with Cloud service providers in the
countries we investigated. Our research found that that it is not
possible to isolate data in the Cloud from governmental access
based on the physical location of the Cloud service provider or
its facilities, and that Governments' ability to access data in the
Cloud extends across borders.” - http://www.hoganlovells.com

@PeterCoffee
It’s Not About “Better, Faster,
Cheaper”; It’s About “Different”
Social
Mobile
Engaging

@PeterCoffee
Will Today’s Disruptors Sign In, Please?
• Mobility
• Social Computing
• Big Data

@PeterCoffee
Connection Is Not Rip/Replace
Mash-ups from
Web and
AppExchange
Native
Desktop
Connectors
Integration Tools
AppExchange Apps
ERP
Any System
Finance
Systems of Record
Systems of
Engagement

@PeterCoffee
I’m Not The Only One Who Calls This “New IT”
• “McKinsey speakers did identify a category of
applications for which cloud computing is an
enabler. Moreover, unlike transactional
systems, these applications offer significant
opportunity going forward.”
• “The McKinsey term for these applications is
‘new IT’… Business model transformation,
team and corporate productivity growth and
digital-only products.”
• “Old IT looks to cloud computing to achieve
incremental efficiency within the context of
established practices…CEOs chase new IT to
create new business offerings.”
- cio.com, 9 April 2013

@PeterCoffee
Connect With Customers
in a Whole New Way
Connected
Partners
Connected
Customers
Connected
Employees
Connected
Products

@PeterCoffee
Currently used by
– all six national banks
– five major insurance firms
– all three national telco providers
– high-tech leaders
– aerospace manufacturers/operators
– various public-sector agencies
Canadian Leaders salesforce.com

@PeterCoffee
Thank You
petercoffee
linkedin.com/in/petercoffee
facebook.com/peter.coffee
pcoffee@salesforce.com

Six Things About "The Cloud"

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