@PeterCoffee Peter Coffee VP & Head of Platform Research

salesforce.com inc.

Connection Is The Goal

(A View from Above the Cloud)

@PeterCoffee

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report and on our Form 10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Safe Harbor

In Other Words:

Everything That

You See Here

is Real

@PeterCoffee

“Digital” Camera?

“Cellular” Phone?

“Cloud” Computing?

“Someday, you’ll have to tell your kids about

phones that had wires…and TVs that didn’t” - Scott McNealy

@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

‘The Cloud’…is now the medium of ‘The Connections’ (Arcs Represent Number • Distance of Facebook ‘Friend’ Links)

Pop quiz: where is Beijing?

@PeterCoffee

Fortune 100 Facebook Fan Growth

Fortune 100 Web Traffic Growth

Webtrends, “The Effects of Social Networks on the Mobile Web and Website Traffic”; Google Social Media Analysis Study

Jun 2010

Dec 2011

Your ‘Brand’ is Built On Connection...

…not Control

“We analyzed the website

traffic of Fortune 100

websites based on ‘unique

visits’. The study revealed

that 68% of the top 100

companies were

experiencing a negative

growth in unique visits over

the past year... 40%

exhibited higher traffic to

their Facebook page

compared to their website.”

Fortune 100 Facebook Activity

Fortune 100 Web Activity

@PeterCoffee

Broken Institutions Need ‘Connection’ Revolution

Medicine: sensor-equipped

patients & homes reduce

office & hospital visits

Education: students

in external settings

learn by practice

@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

• Connecting Machines

– ‘OnStar’ network daily handles 150k human requests…

…and 130k machine-originated requests

– Some are critical, e.g. air-bag deployments

– Others may be infotainment, e.g. mileage ‘leader board’

• Connecting Processes

– General Electric wind-farm management: 123 turbines

– Field-wide speed optimization, anti-icing behaviors

– 3% output increase US$1.2M/year added revenue

• Connecting People

– Asics delivers RFID-triggered messages to marathoners

Connecting Machines; Processes; People

@PeterCoffee

It’s Happening Today – Not Tomorrow

@PeterCoffee

The connection revolution

requires a trust revolution

@PeterCoffee

Governance Demands Challenge Legacy Models

• Global cooperation: “One of the reasons legislation is

necessary is to allow Canada to meet its commitments under

the Council of Europe Convention on Cybercrime.” www.privcom.gc.ca

• Data-handling laws proliferate

• Privacy Act (Canada – amended July 2012)

• Notification of Risk to Personal Data Act

• Data Accountability and Trust Act

• Social Security Number Protection Act

• Prevention of Fraudulent Access to

Phone Records Act

• Technology trends oppose the goals of governance

• Processing: enemy of encryption

• Connectivity: attacker opportunities and tools

• Storage: ever-growing risk of larger losses

@PeterCoffee

“While the 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

Governance Demands Challenge Legacy Models

@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

– Trust

Dynamic threat environments; rising community awareness and expectations

– Governance

Global markets; narrow perspectives; ‘crown jewel’ data

– Mobility

Productivity improvement; BYOD challenges

– Social Interaction

External communities; internal collaboration; high-velocity operations

– Talent Development and Technology Change

Where will we get tomorrow’s programmers? How will practices change?

“In 2011, there were still five unemployed people for every job available. Yet American

businesses in 2011 reported more than three million job openings they have been

unable to fill because of a skills shortage.” – Edward Luce, Financial Times

‘Connected IT’: Dep’t of Adult Supervision

@PeterCoffee

Agile, Scalable Connection Demands Cloud Platforms

On spec, on time, on budget deployment of fully tested, proven

connection capability: trusted security and global availability

Modern applications, driven by user feedback for continuing

improvement – with “clicks, not code” customization

“No Software”: what’s paid for is function, not code. Continuous

scrutiny of operations, maintenance of facilities, world-class security

and dynamic device support are literally “part of the service”

Multiple upgrades per year: no disruption, shrinking deployment

times, backward compatibility to previous API releases

“The future is already here – just not evenly distributed”

- William Gibson

@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

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