Building the Business Case For Cloud

Computing

Andrew Leigh
Dir Platform Product
Marketing
Times are Tough

Global Economic Changing Company New Organizational

Downturn Strategies Demands

Limited credit Budgets cut Do more with less

Shrinking markets Projects stalled Find new markets
Deficit spending Lost resources Innovate

“The economy has created an entirely new set of demands for

companies to survive.”
 Doing “More with Less” is not new for CIO’s

Business Demands Have Increased

IT Budgets Have Been Consistently Cut Since 2001

2001 2009
“Most respondents expect IT budgets to decrease from last year’s levels. This likely
stems from the worsening economic environment and increased cost-consciousness.
Only 23 percent of executives expect to increase their operating costs in 2009”
“CIOs have been doing ‘more with less’ for a long time, 2009 will
demand a break in traditional approaches.”
Draft – looking for
Analyst report example
Every Project Should Be Evaluated By Five Criteria

1. Time to Value

2. Capital Expense

3. Operational Costs

4. Technical Resources

5. Integration Costs

“53% of software projects cost 189% of original estimate”

Standish Group, Chaos Report 2006
Cloud Computing Provides A Better Option

✔ Faster Time to Value

✔ Eliminates Capital Expense

✔ Lowers Operational Costs

✔ Fewer Technical Resources

✔ Simplifies Integration

“Cloud computing just makes sense today. Our CIO doesn’t want to
deal with managing data centers.”
Chris Spear
Extra Space Storage
1. Reduces Time To Value
Cloud Computing is Faster in Two Ways

Initial Project Application

Rollout Time Agility

Design Change requests

Development Upgrades
Testing Additional users 72% 18%
Training New functionality
80%
Deployment Governance

“Yes, you read that right: 80% reduction in development effort with
Force.com. Wow! “
- Independent 2008 research study comparing Force.com to Java development
Customers Are Building Apps Faster Than Ever

IT Governance and Claims Management

change control Application
Less than weeks Less than 10 weeks

Franchise Recruiting and

Management Training Application
60 days Less than 6 months

Sample Management
Product Management
Application
Less than 10 Weeks
Less than 4 months

Cinema Asset Franchise and

Management Training Management
Less than 8 Weeks Less than 6 months
Built 14 Custom Applications in Less than a Year

“The Force.com Platform allowed us to create

and deliver a total of 14 applications – all
without the expense and hassles of
traditional application development.”
— Gabrielle Toledano
EVP Human Resources, EA

Challenge
Challenge Solution
Solution Results
Results
Deploy
Deployaaglobal,
global,multilingual,
multilingual, Built
Builtan
anaward
awardwinning
winningcustom
custom Corporate
CorporateExecutive
ExecutiveBoard
Board
talent acquisition application
talent acquisition application recruitment application
recruitment application declared app the most
declared app the most
advanced
advancedofofititkind
kind
Measure
Measurethe theconversion
conversionrate
rateofof Deployed
Deployedon
onForce.com
Force.comMobile.
Mobile.
recruits
recruitstotocandidates
candidates Deployed
Deployedinin12
12languages.
languages.
Built
Builtaauniversity
universityrelations
relations
Analyze
Analyzethe
thesuccess
successofof application.
application. 95
95percent
percentadoption
adoptionrate.
rate.
recruitment
recruitmentcampaigns
campaigns Dashboards
Dashboardsallow
allowexecutives
executivestoto
oversee
overseerecruitment
recruitmentglobally
globally
2. Eliminates Capital Expense

On Premise Development Requires

On Premise Development Significant Up Front Costs
Hardware

Facilities

Storage

License Fees

Stack Integration
Forrester, “Talking To Your CFO About Cloud Computing,” October 29, 2008

“The biggest financial benefit of cloud computing, particularly in these

capital-constrained times, is avoiding taking on debt and keeping cash in
the company longer.”
2. Eliminates Capital Expense
Cloud Computing Requires
No Upfront Costs
Hardware

Facilities

Storage

License Fees

Stack Integration
Forrester, “Talking To Your CFO About Cloud Computing,” October 29, 2008

“If a project uses a cloud-based service provider, then the CFO avoids
writing a big check upfront. Instead, checks are written monthly or
quarterly, in alignment with the return.”
Built Full ERP Suite With No Capital Expenses

“We created a state of the art, fully integrated

ERP solution for less than one third the cost of
traditional, on premise platforms.”
— James Sheppard,
President & Founder, Vetrazzo

Challenge
Challenge Solution
Solution Results
Results
ERP
ERPsystem
systemfor
forofofthe
therecycled
recycled Built
Builtcomplete
completeERP
ERPsystem:
system: Built
Builtand
anddeployed
deployedininjust
just77
glass countertops industry
glass countertops industry months.
months.
Order
OrderManagement
Management
Reduced
Reducedbudget
budgetand
andpersonnel
personnel Unified
Unifiedplatform
platformthat
that
Inventory
InventoryManagement
Management
required
requiredfor
forstandard
standardERP
ERP automatically
automaticallyintegrates
integratesERP
ERP
Production
ProductionPlanning and
 Avoid Planning andCRM
CRMapps
apps
Avoidcosts
costsand
andlabor
laborofof
hardware Raw
RawMaterials
MaterialsManagement At
hardwareinfrastructure
infrastructure Management Atleast
least5X
5Xthe
thespeed
speedofofon
on
Shipping premise
premiseplatforms
Solution
Solutionmust
mustscale
scaleas
asits
its Shippingand
andLogistics
Logistics platforms
business
businessgrows Invoicing
grows Invoicingand
andWarranties
Warranties
3. Minimizes Operational Expenses
Pay For Innovation, Not Infrastructure

On Premise Development

Innovation/Development
✔ ✔
Patches/ Bug Fixes ✔
Upgrades ✔
Performance Tuning ✔
Disaster Recovery ✔
Additional Storage ✔
Hardware Administration ✔
Facilities Management ✔
Data Center Administration ✔
Ongoing IT Operations Costs
A 5 Year TCO Comparison
On Premise vs. Cloud Computing Application Lifecycles

55Year
YearTCO
TCOComparison
Comparison Project:
$1,600,000
$1,600,000
$1,400,000
Cost of
Cost of
Software
1000 Users
$1,400,000 Software
$1,200,000
$1,200,000
$1,000,000
$1,000,000 Global Deployment
CostCost

SFDC Cost
$800,000 SFDC Cost
$800,000
$600,000
$600,000
$400,000
$400,000
$200,000
High Security
$200,000
$-
$-
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014 High Performance

“Force.com provides a “40-50% cost savings” over Java Development”

- Independent 2008 research study comparing Force.com to Java development

Need to clean up graph

Franchise Management Application in Six Months at 1/3 the Cost

“We would have had to spend $65,000 for a

custom-designed database to help stay in
contact with the retail franchises.”

— Julie Michelutti, Brand Manager

Challenge
Challenge Solution
Solution Results
Results
Manage
Managenational
nationalfranchises,
franchises, Franchiseforce
Franchiseforceautomates:
automates: Built
Builtininless
lessthan
than66months.
months.
training, and new construction
training, and new construction Training:
Training:which
whichfranchises
franchiseshave
have Cost
Costless
lessthan
thanaathird
thirdofofon
on
Provide
Provideeasy
easyaccess
accesstotodata
data attended
attendedtraining
training premise
premisesolution
solution
with
withno
noinfrastructure
infrastructureatatsites
sites Defaults:
Defaults:tracks
trackswhich
whichshops
shops Dashboards
Dashboardsgive
giveinsight
insightinto
into
Must
Mustbe
beaccessible
accessibletotoremote
remote failed
failedinspections
inspections franchise
franchiseactivity
activity
workers
workersand
andfranchises
franchises Openings:
Openings:follows
followsthe
theopening
opening Integrates
Integrateswith
withMicrosoft
Microsoft
Highly
Highlyflexible
flexibletotomatch
matchthe
the process
processfor
fornew
newconstruction
construction Outlook
Outlook
unique
uniquenature
natureofofthe
thebusiness
business Real
RealEstate
EstateLeads
Leads Available
Availablevia
viaMobile
Mobiledevices
devices
4. Requires Fewer Technical Resources
Two ways to save your developers time

Leverage The Whole Company To Make existing technical resources

Expand Development more productive

Developer Productivity

Business users can create apps Production-quality testing environment

Rapid prototyping Integrated development IDE
Better centralized governance Easy skills-transition from Java

“We’ve replaced years of programming with weeks of development.”

Dan Callahan, Dir IT, Kerry Foods
Built a Custom Healthcare App for Use on the iPhone in 4 Days!

“ We’re blown away by how we built a mobile

healthcare application on Force.com with one
person in just 4 days. The same application built
in .NET would have taken several months.
— Dick Escue,
CIO, Rehab Care
”
Challenge
Challenge Solution
Solution Results
Results
Needed
Neededto
toreduce
reducepatient
patient Built
Builtcustom
custompatient
patientpre-
pre- 44days
daysto
tobuild
buildcomplete
complete
admission
admission to less than11hr
to less than hr screening application
screening application app.
app.
App
Appmust
mustrun
runon
onApple
Apple Fully
Fullymobile
mobileenabled
enabled Runs
Runson
onApple
AppleiPhones
iPhones
iPhone
iPhone and
andTouch
TouchDevices
Devices
Automated
Automatedapprovals
approvalsto
to
Time
Timeto
tovalue
valuewas
wascritical
critical workflow
workflow Cut
Cutprocessing
processingtime
timefrom
from
18
18hrs
hrsto
toless
lessthan
than60
60min
min
Adapt
Adaptto
tochanging
changingmarket
market Saved
Savedmonths
monthsoff
off.Net
.Net
and
andcompetitive
competitivethreats
threats development
developmenttime
time
Reduce
Reducetime-intensive
time-intensive
process
process
5. Reduce Integration Costs
Faster, Less Risky Integrations That Don’t Break

 Legacy Apps

 Mashups

 Office Apps

 ERP

 AppExchange

 Amazon

 Google

 Facebook
Visualforce National Weather Service Google Maps Tangiers Physicians Data

“Despite the company name, salesforce.com’s real core

competency is its ability to cost-effectively manage huge volumes of
information and transactions.”
Integrated Emergency Staffing Applications for Less
than Half the Cost

“ Force.com lets us maximize our focus on

innovation without the cost and IT resource
demands of traditional application
development
” Doug Menefee
CIO Schumacher Group

Challenge
Challenge Solution
Solution Results
Results
Shift
Shiftcompany
companyapplications
applicationstoto Built
Builtmultiple
multipleapplications
applicationson
on Deployed
Deployedininless
lessthan
than44
the
thecloud
cloud Force.com
Force.com months
monthstoto200+
200+users
users
Create
Createaasolution
solutionthe
thecompany
company Integrated
Integratedwith
withPeopleSoft
PeopleSoft Shifting
Shiftingentire
entirebusiness
businesstoto
could
couldbuild
buildand
andadapt
adaptquickly
quickly the
thecloud
cloud
Integrating
Integratingwith
withTangiers
Tangiers
Replace
Replacelegacy
legacyMicrosoft
Microsoft Physician
PhysicianScheduling
Schedulingsystem
system Can
Caneasily
easilywrite
writeand
anddeploy
deploy
Access
Accessand
andSQL
SQLdatabases
databases additional
additionalapplications
applicationstoto
Integrated
Integratedwith
withGoogle
GoogleMaps
Maps support
supportits
itsgrowth.
growth.
Meet
Meetstringent
stringent(HIPAA)
(HIPAA) Three
ThreeAppExchange
AppExchangeapps
apps
requirements
requirements
Customer References
Built Healthcare Application in Less than 4 Months and 25% the Cost

“ Without Force.com, it would have taken us four

times as long and cost four times as much to
build this type of application.
”
— Mark Desrosiers
SVP Commercial Operations, CNS

Challenge
Challenge Solution
Solution Results
Results
Create
Createsystem
systemfor
forsharing
sharing Built
Builtapplication
applicationto
tomanage
manage Live
Liveinin44months
months
patient data
patient data data and suggest treatment
data and suggest treatment Cost
Cost25%
25%of
of.NET
.NETor
orJava.
Java.
Track
Trackbrain
brainwave
wavescans,
scans, Workflows
Workflowsalert
alertphysicians,
physicians, Reduced
Reducedtest
testprocessing
processing
medications
medicationsandandtechnician
technician technicians,
technicians,and
and time
timefrom
from33days
daysto
to24
24
visits
visits neurologists.
neurologists. hours
hours
Easy-to-use
Easy-to-useapplication
applicationfor
for Used
UsedApex,
Apex,Visualforce,
Visualforce,.NET,
.NET,
physicians
physiciansand
andpatients
patients and
andHTML
HTMLtotocreate
createUI
UI
Integrated
Integratedwith
withcustom
custom
technician’s
technician’sportal
portal
Built Complete ERP App in Only 7 Months and 1/3 the Cost

“ We created a state of the art, fully integrated

solution for less than a third the cost and at least
five times faster than traditional, on premise
platforms
” — James Sheppard,
President & Founder, Vetrazzo

Challenge
Challenge Solution
Solution Results
Results
ERP
ERPsystem
systemfor
forof
ofthe
the Built
Builtcomplete
completeERP
ERPsystem:
system: Built
Builtand
anddeployed
deployedininjust
just77
recycled glass countertops
recycled glass countertops months.
months.
Order
OrderManagement
Management
industry
industry Unified
Unifiedplatform
platformthat
that
Inventory
InventoryManagement
Management
Reduced
Reducedbudget
budgetand
and automatically
automaticallyintegrates
integrates
personnel Production
ProductionPlanning
personnelrequired
requiredfor
for Planning ERP
ERPand
andCRM
CRMappsapps
standard
standardERP Raw
ERP RawMaterials
MaterialsManagement
Management At
Atleast
least5X
5Xthe
thespeed
speedof
ofon
on
 Avoid
Avoidcosts
costsand
andlabor
laborof Shipping premise
premiseplatforms
of Shippingand
andLogistics
Logistics platforms
hardware
hardwareinfrastructure
infrastructure Invoicing
Invoicingand
andWarranties
Warranties
Solution
Solutionmust
mustscale
scaleas
asits
its
business grows
business grows
Built 14 Custom Applications in Less than a Year

“ The Force.com Platform allowed us to create

and deliver a total of 14 applications – all
without the expense and hassles of traditional
application development.
”
— Gabrielle Toledano
EVP Human Resources, EA

Challenge
Challenge Solution
Solution Results
Results
Deploy
Deployaaglobal,
global,multilingual,
multilingual, Built
Builtan
anaward
awardwinning
winning Corporate
CorporateExecutive
ExecutiveBoard
Board
talent
talent acquisitionapplication
acquisition application custom recruitment
custom recruitment declared app the most
declared app the most
application
application advanced
advancedofofititkind
kind
Measure
Measurethetheconversion
conversionrate
rate
of
ofrecruits
recruitsto
tocandidates
candidates Deployed
Deployedon
onForce.com
Force.com Deployed
Deployedinin12
12languages.
languages.
Mobile.
Mobile.
Analyze
Analyzethe
thesuccess
successof
of 95
95percent
percentadoption
adoptionrate.
rate.
recruitment
recruitmentcampaigns
campaigns Built
Builtaauniversity
universityrelations
relations
application.
application.
Dashboards
Dashboardsallow
allowexecutives
executives
to
to oversee
overseerecruitment
recruitment
globally
globally
Franchise Management Application in Less Than Six Months and
1/3 the Cost

“ We would have had to spend $65,000 for a

custom-designed database to help stay in
contact with the retail franchises.
”
— Julie Michelutti, Brand Manager

Challenge
Challenge Solution
Solution Results
Results
Manage
Managenational
nationalfranchises,
franchises, Franchiseforce
Franchiseforceautomates:
automates: Built
Builtininless
lessthan
than66months.
months.
training, and new
training, and new Training:
Training:which
whichfranchises
franchises Cost
Costless
lessthan
thanaathird
thirdof
ofon
on
construction
construction have
haveattended
attendedtraining
training premise
premisesolution
solution
Provide
Provideeasy
easyaccess
accesstotodata
data Defaults:
Defaults:tracks
trackswhich
whichshops
shops Dashboards
Dashboardsgive
giveinsight
insight
with
withno
noinfrastructure
infrastructureatatsites
sites failed
failedinspections
inspections into
intofranchise
franchiseactivity
activity
Must
Mustbe
beaccessible
accessibleto
toremote
remote Openings:
Openings:follows
followsthe
the Integrates
Integrateswith
withMicrosoft
Microsoft
workers
workersand
andfranchises
franchises opening
openingprocess
processfor
fornew
new Outlook
Outlook
Highly
Highlyflexible
flexibleto
tomatch
matchthe
the construction
construction Available
Availablevia
viaMobile
Mobile
unique
uniquenature
natureofofthe
the Real
RealEstate
EstateLeads
Leads devices
devices
business
business
Complex Royalty Rights Application in Only Weeks

“ The Force.com Platform provides us with the

fastest path from idea to application, without
infrastructure and development delays
”
— John Johnson, Vice President

Challenge
Challenge Solution
Solution Results
Results
Manage
Managethe
thecomplex
complexprocess
process Application
Applicationprotects
protectsthe
the Implemented
Implementedon-time,
on-time,
of
of governing musicianrights
governing musician rights rights of hundreds of
rights of hundreds of under budget
under budget
thousands
thousandsof ofartists
artists
Distribute
Distributeroyalties
royaltiesfor
for Intuitive
Intuitivedashboards
dashboards
copyrighted
copyrightedwork
work Deployed
Deployedto
to130
130employees
employees identify
identifykey
keyperformance
performance
metrics
metrics
Replace
ReplaceLotus
LotusNotes
Notes Dashboards
Dashboardsconsolidate
consolidatedata
data
application
application from
fromacross
acrossmultiple
multiple Automated
Automatedworkflow
workflow
databases
databases streamline
streamlineprocesses
processes
Integration
Integrationworkflow
workflow
processes
processesand
andbilling
billing Custom
Customtabs:
tabs:rates,
rates, Required
Requiredno
noadditional
additionalITIT
systems
systems collections
collectionsand
andadjustments,
adjustments, resources
resources
and letters.
and letters.
Built Complete Enrollment Management App in Only 4 Months
and at 1/5 of the Cost

“ We created a scalable, comprehensive

platform for Strategic Enrollment Management
at one-fifth the cost and at least three times
faster than we could have with a .NET solution.
— Lawrence Levy, ”
President, Enrollment Rx, L.L.C.

Challenge
Challenge Solution
Solution Results
Results
Develop
Develophosted
hostedStudent
Student Built
Builtcomplete
completeEnrollment
Enrollment Built
Builtand
andDeployed
DeployedTrial
Trial
Enrollment Management
Enrollment Management Management system:
Management system: Version in 4 months
Version in 4 months
system
systemfor
forsale
saleto
toHigher
Higher Prospect Scalable,
ProspectManagement
Management Scalable,highly
highlyavailable
available
Education
Education platform
Document
DocumentManagement
Management platformwith
with24x7
24x7support
support
Reduce
Reducedevelopment
developmentcosts
costs Release
Communication
CommunicationManagement
Management ReleaseVersioning
Versioning
 Avoid
Avoidcosts
costsand
andlabor
laborof
of Management
Management
Marketing
Marketing&&Event
Event
hardware
hardwareinfrastructure
infrastructure Future
Management
Management FutureIntegrated
IntegratedPortal
Portal
Solution
Solutionmust
mustscale
scaleas
asits
its Capabilities for
Capabilities for
Program
ProgramManagement
Management
business grows
business grows prospective
prospectiveand
andcurrent
current
Reporting
Reportingand
andAnalytics
Analytics students
students
Built and Deployed a Custom App to 40,000 Users in Only 2 Months

“ Force.com has proven to work well

for the Japan Post
”
Challenge
Challenge Solution
Solution Results
Results
Platform
Platformfor
fornewly
newlyest
est Deployed
Deployedrapidly,
rapidly,leveraging
leveragingaa Implementation
Implementationhas
hasgrown
grown
company
company that serves100M
that serves 100M rock-solid
rock-soliddata
datacenter
centerand
and to 40,000 users
to 40,000 users
people
people security
security Obtained
Obtainedpersonal
personalinfo
info
Integrate
Integratethree
threecompanies
companies The
Theinterface
interfaceand
andtabs
tabscan
canbe
be usage
usageagreements
agreementswith
with
Access easily customized customers.
Accessfrom
fromevery
everybranch
branch easily customized customers.
office
office Users
Userscan
caneasily
easilyaccess
accessthe
the Supports
Supportsover
over100M
100M
Provide app
appfrom
fromany
anyof
ofthe
the24,000 customers,
customers,24K
24Koffices,
Providereports
reportsacross
acrossall
all 24,000 offices,
companies offices.
offices. and
and66million
millionpolicies
policies
companies
Comply Real-time
Real-timevisibility
visibilityinto expanding
expandingacross
acrossmultiple
Complywith
withall
allgov
gov into multiple
regulations business processes
business processes business processes.
business processes.
regulations
Built a Custom Healthcare App for Use on the iPhone in 4 Days!

“ We’re blown away by how we built a mobile

healthcare application on Force.com with one
person in just 4 days. The same application built
in .NET would have taken several months.
— Dick Escue,
CIO, Rehab Care
”
Challenge
Challenge Solution
Solution Results
Results
Needed
Neededto
toreduce
reducepatient
patient Built
Builtcustom
custompatient
patientpre-
pre- 44days
daysto
tobuild
buildcomplete
complete
admission
admission to less than11hr
to less than hr screening application
screening application app.
app.
App
Appmust
mustrun
runon
onApple
Apple Fully
Fullymobile
mobileenabled
enabled Runs
Runson
onApple
AppleiPhones
iPhones
iPhone
iPhone and
andTouch
TouchDevices
Devices
Automated
Automatedapprovals
approvalsto
to
Time
Timeto
tovalue
valuewas
wascritical
critical workflow
workflow Cut
Cutprocessing
processingtime
timefrom
from
18
18hrs
hrsto
toless
lessthan
than60
60min
min
Adapt
Adaptto
tochanging
changingmarket
market Saved
Savedmonths
monthsoff
off.Net
.Net
and
andcompetitive
competitivethreats
threats development
developmenttime
time
Reduce
Reducetime-intensive
time-intensive
process
process
Built Custom Order Mgt Application for ½ the Cost of Java

“ The complexity of premise development was

cost prohibitive. Force.com got the job done

”
faster and at half the cost

— Mark Warren,
Acting CIO, 20/20 Companies

Challenge
Challenge Solution
Solution Results
Results
2020’s
2020’sbusiness
businessisis Built
Builtcomplex
complexorder-invoice-
order-invoice- Provides
Providesaacomprehensive
comprehensive
expanding
expandingatatsignificant
significant payroll management
payroll management development
developmentplatform
platformatataa
velocity
velocity application
application highly
highlycost
costeffective
effectiveprice
price
Manual
Manualprocesses
processesfor
for Deep
Deepintegration
integrationwith
withover
over66
66 Reduced
Reducedheadcount
headcountininITIT
managing
managingorders
ordershitting
hittingaa in-store
in-storekiosks
kiosks and
andretail
retailcoordination
coordination
wall
wall Must
Mustmanage
manageover
over8500
8500 Reduced
Reducedrisk
riskof
offailure
failurevs.
vs.
The
Thecost
costofofautomation
automationhas
has orders
ordersper
permonth
month on
onPremise
Premisedevelopment
development
become
becomelesslessthan
thanthe
therisk
riskof
of All
Allorders
ordersmust
mustare
are
failure
failureto
togrow
grow reconciled
reconciledand
andinvoiced
invoicedvia
via
All
Alldecisions
decisionsmust
mustbe
bebased
based Force.com
Force.com
on a clear business case