The document discusses why business architects should care about cloud computing. It notes that global IT spending declined significantly in 2009 and won't return to 2008 levels until 2012. The cloud offers benefits like lower costs, faster results, and predictable expenses. It also allows for deep customization while maintaining security, transparency, and integration capabilities. Real-world examples demonstrate how companies achieved significant cost savings, faster development times, and increased productivity by moving to cloud platforms.

1. Having the Cloud Conversation:
Why the Business Architect Should Care
Peter Coffee
Director of Platform Research
salesforce.com

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3. IT Had a Very Bad Year
Global IT spending estimated down 5.2% during 2009
Spending won’t return to 2008 level until 2012
Half of CIOs will see zero growth or further cuts this year
– Gartner (informationweek.com, 26 Oct.)

4. 100% Cloud Cover?

5. “If you take the ideal
world, everything is
done as a service:
computing, storage,
software and
operations.”
“The risk for enterprises
that don't start a SaaS
migration strategy soon
is that their IT
organizational
structures will be a
competitive
disadvantage.”
Geir Ramleth
www.networkworld.com/news/2008/102908-bechtel.html
CIO, Bechtel Corp.

6. The Cloud as a Multi-Product Marketplace
Platform as a Service PaaS as Enterprise
“Servers as a Service”
(PaaS) for the Application Framework
Inquiring Developer
Virtual
Servers Programmable Programmable User
Cloud Logic Interface
Virtual
Servers Python/Java
Virtual
Application Server Real-Time Workflow Integrated Content
Servers & Approvals Library
Database as a Service Database as a Service Unlimited Real-Time
Customization
Granular Security &
Sharing
Infrastructure as a Service Infrastructure as a Service Infrastructure as a Service
~Familiar Developer Model β Offering Supports Large-Scale SaaS
Rapid Scalability Innovative Technology Deep-Dyed Multitenancy

7. What it Means to Promise “The Cloud”
Moving toward an ideal: “Zero, One, Infinity”*
0 On-premise infrastructure
Acquisition cost
Adoption cost
Support cost
1 Coherent and resilient environment – not a brittle “software stack”
∞ Scalability in response to changing need
Integratability/Interoperability with legacy assets and other services
Customizability/Programmability from data, through logic,
up into the user interface without compromising robust multi-tenancy
* From The Jargon File: “Allow none of foo, exactly one of foo, or any number of foo”

8. Faster Results; Lower Risks; Predictable Costs
On-Premise Operations: Cloud Computing:
53% of software projects cost Average 49% investment recovery
189% of original estimate1 within 10 Months2
Fixed Costs and Variable Cost Aligned with
Excess Operating Business Value
Expenses
Value
Buying Function,
Value
not Infrastructure
Time
Minimal
Initial Cost
Upgrade Expense &
Up-front Capital Opportunity Costs
Expense & Delay
1 Standish Group, Chaos Report 2006
2 Third-Party CustomerSat Research on 4,165 Salesforce.com
customers, February 2008

9. Enterprise Clouds Enable Deep Customization
Build strategic applications
Your Clicks
User Interface
Customize any aspect
Logic Upgrade when convenient
Your Code
Database Preserve IP control
Metadata representations:
Rigorously partitioned data, logic and customizations for multiple customers
Coherent Code Base and Managed Infrastructure
Coherent Code Base and Managed Infrastructure

10. Cloud Integration: No Need for Rip/Replace
Mash-ups from Native Integration Developer
Native ERP
Web and Desktop Partner Toolkits
Connectors
AppExchange Connectors Ecosystem

11. Cloud Security: No Need for Excuses
Facility Security Network Security Platform Security
• 24x365 on site security • Fault tolerant external firewall • SSL data encryption
• Biometric readers, man traps • Intrusion detection systems • Optional strict password policies
• Anonymous exterior • Best practices secure systems mgmt • SAS 70 Type II & SysTrust Certification
• Silent alarm • 3rd party vulnerability assessments • Security certifications from Fortune 50
• CCTV financial services customers
• Motion detection • May 2008: ISO 27001 Certification
• N+1 infrastructure
“There are some strong technical security arguments in favor of Cloud
Computing… (Craig Balding, Fortune 500 security practitioner)

12. Transparency Surpassing Enterprise Norms
Full Public Disclosure
Live System Status
Security Best Practices
Historical Performance
May-July 2009
• 99.997% of planned
availability
• Continually narrower
maintenance windows Amazon
Google

13. Real-World Results: Financial Services
The Phoenix Companies sought a new CRM solution with flexibility, ease of use,
mobile accessibility, low-cost modification capabilities, minimal user training
requirements, and simplified integration with other apps.
Changeover to Salesforce CRM took less than two months. Working with
salesforce.com partner OKERE (now part of Fujitsu Consulting), Phoenix used the
Force.com platform to create customizations for contracts and underwriting.
Using the Force.com API, Phoenix integrated several legacy systems with
Salesforce CRM to provide consolidated, real-time access to information.
The Salesforce CRM implementation cost the company less than one-fourth of the
project’s original budget.
By streamlining communication between field and inside sales within Salesforce
CRM, Phoenix has reduced phone and email inefficiencies, boosted productivity,
and, in 2005, increased life insurance sales by more than 33%.
Following its upgrade to Salesforce CRM Unlimited Edition, Phoenix achieved 96%
user adoption.

14. Real-World Results: Health Care
CRC Health—the nation's largest provider of drug and alcohol treatment
services—acquired the country’s largest youth treatment provider. The combined
organization required a platform to manage patient intake, track Web entities, and
streamline operations to increase revenue.
The company used ACT!, spreadsheets, and other proprietary systems to
manage extensive patient data. Only one call center operator could open the
spreadsheet at a time, making the process inefficient, opaque, and unscalable.
The company developed a customized user interface on Force.com for 12 users.
With help from salesforce.com partner Appirio, CRC Health extended the
application to broadly leverage the platform.
Security levels are matched to what’s required to comply with HIPAA and other
industry regulations. Open APIs enable tight integration with legacy tracking
systems, Microsoft Outlook, eFax, and other third party apps. Web marketing
effectiveness tracking within Salesforce CRM indicates to the dollar what is
performing and what is not.

15. Development Reinvented, not Just Relocated
Nucleus Research analyzed Force.com deployments: found
average 4.9 times faster development (range 1.5x-10x)
versus Java or .Net
– Custom objects
– Administrative tools
– Workflow engine
– Pre-tested platform
Galorath Inc. compared developers’ Force.com productivity to
Java development
– Requirements definition time reduced 25% due to rapid prototyping
– Testing effort reduced by (typically) more than 10%
– Development productivity of new code 5x greater
– Overall project cost 30-40% less
CustomerSat sampled more than 1,100 Force.com
development teams during summer 2009
– Average experience: 4 applications deployed to date
– Average project cost savings: 48%
– Average project acceleration: 5.1x

16. To Everything There is a Season
’50s ’60s ’70s ’80s ’90s ’00s
Windows
IBM PC Windows XP
PC MITS Altair 3.x/9x/NT
Macintosh & Mac OS X
& Linux 1.0
DEC DEC Sun Sun/AMD
Sun/ILM
Mini Workstations x86 Servers
PDP-8 VAX 11/780 Render Farms
& Servers Niagara CPUs
Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

17. ’50s ’60s ’70s ’80s ’90s ’00s
Cloud Apps
Grid
& X Window
Computing
Platforms
e
nc
da
en
sc
A
Windows
IBM PC Windows XP
PC MITS Altair 3.x/9x/NT
Macintosh & Mac OS X
& Linux 1.0
e
nc
ge
er
Em
DEC DEC Sun Sun/ILM
Sun/AMD
Mini Workstations x86 Servers
PDP-8 VAX 11/780 Render Farms
& Servers Niagara CPUs
…
e
nc
t
en
ra
em
a
pe
in
Ap
ef
R
Mainframe IBM 701 S/360 S/370 4300 S/390 zSeries

18. Peter Coffee
Director of Platform Research
pcoffee@salesforce.com Q&A?
facebook.com/peter.coffee
twitter.com/petercoffee