Demystifying Salesforce's Growing Portfolio of Clouds

2. WEBINARDemystifying Salesforce’s Growing Portfolio Of Clouds Liz Herbert,Vice President, Principal Analyst Kate Leggett, Vice President, Principal Analyst John R. Rymer, Vice President, Principal Analyst February 24, 2017. Call in at 10:55 a.m. Eastern time

4. Liz Herbert Vice president and principal analyst Liz focuses on the IT services industry, helping clients to navigate this fast-changing market and maximize the business value of their technology investments. As a principal analyst, Liz helps clients to understand the key dynamics in the enterprise application services market and to make smart technology sourcing decisions. Specific topics of focus include software-as-a-service (SaaS), SAP, and Oracle services as well as services for cloud and mobile. She has been a featured speaker at leading industry events such as SaaScon, Nasscom, Society of Information Managers, and World BPO Forum. She has been quoted in leading publications, including The Wall Street Journal, Fortune, The New York Times, and CIO Magazine. She has been featured as a technology expert on TV news segments, including Bloomberg TV and Boston-based NECN. She was named IIAR services analyst of the year in 2010.

5. Kate Leggett Vice president and principal analyst Kate leads Forrester’s customer relationship management (CRM) and customer service practice. She covers CRM and customer service strategies, maturity, benchmarking, governance, and ROI. She is an accomplished public speaker and frequently presents at industry events, such as CRM Evolution. She has been published in The Wall Street Journal, Forbes Magazine, and industry publications such as CRM Magazine, KM World, and Destination CRM.

6. John R. Rymer Vice president and principal analyst John leads Forrester’s application development and delivery (AD&D) coverage of cloud platforms, including Microsoft Windows Azure, Amazon Web Services, and Salesforce’s platform. He is a leading expert on enterprise middleware. Included in his coverage are the Java application servers from IBM, Red Hat JBoss, and Oracle as well as Microsoft’s .NET. He is the lead analyst on Forrester’s application development strategy, sourcing, and structure playbook. He is an authority on the enterprise strategies of IBM, Microsoft, and Oracle and contributes to Forrester’s coverage of low-code application platforms and business rules platforms.

7. Agenda • State of Salesforce 2017 • Demystifying Salesforce’s portfolio • What it means

8. Agenda • State of Salesforce 2017 • Demystifying Salesforce’s portfolio • What it means

9. Salesforce — some history • It was founded in 1999 by Marc Benioff and Parker Harris. • It started out (as the name suggests) as sales force automation (SFA) in the cloud. • It has acquired dozens of companies, including SteelBrick (CPQ), Demandware (commerce), ExactTarget (marketing), Pardot (marketing), InStranet (service), and many more. • It has grown to offer numerous “clouds” — sales, service, marketing, commerce, app (developer), communities, and more. • It launched AppExchange in 2006 to create a partner ecosystem.

10. Salesforce 2017 • Salesforce revenue was $6.67 billion in FY16. FY17 ended on January 31, 2017, and guidance is more than $8 billion (earnings announcement February 28, 2017). • Salesforce deals are growing: • More than 1,000 customers spend more than $1 million per year. • We see an increasing volume of $5 million-plus-per-year deals. • Most clients adopt a multicloud strategy (i.e., sales plus service or sales plus community). • Salesforce is positioning itself as a partner for digital transformation — including its Ignite innovation offering (free!).

11. Salesforce now boasts a huge portfolio But what does it actually sell?

12. Agenda • State of Salesforce 2017 • Demystifying Salesforce’s portfolio • What it means

13. Four challenges we see in Salesforce deals

14. Here is Salesforce’s portfolio by product category

15. Core clouds built on Force.com

16. Clouds via acquisition, built on other platforms

17. - Communities, self-service knowledge - Self-service case mgmt. - Chatter

18. BI Cloud + IoT Cloud on AWS

19. Platforms for building custom applications

20. Embedded technologies

21. Partner solutions to extend core clouds

22. Lightweight industry solutions

23. Salesforce cultivates an ecosystem — but also on user success Partners Source: The Forrester Wave™: Salesforce Implementation Partners, Q2 2015 Forrester report

24. Product purchases are complex • Different clouds have different pricing structures. • Many products are sold as per-user per-month. Other products have different pricing paradigms. • Choose versions (and add-ons) carefully. • There are many versions of each cloud. You cannot mix and match versions. There are also “hidden fees.” Are two sandboxes too much or enough? • Realize that your needs will (probably) grow. • Factor in hidden, organizational costs. • Account for AppExchange products.

25. When to choose Salesforce • Is your CRM strategy focused on differentiated customer experiences? • Are you looking to consolidate CRM instances? • Is your CRM project transformational? • Do you have industry-specific requirements?

26. Agenda • State of Salesforce 2017 • Demystifying Salesforce’s portfolio • What it means

27. Dig into Salesforce before pursuing a bigger vision • Dedicate staff to understanding the world of Salesforce. • Bring in an enterprise architect and an AD&D leader. • Bring in a procurement specialist.

28. Q&A

29. John R. Rymer jrymer@forrester.com Liz Herbert eherbert@forrester.com Kate Leggett kleggett@forrester.com