Monday, June 23, 2008
Google and salesforce.com - Like Peanut Butter and Jelly
Jason Ouellette
Today, salesforce.com and Google announced a new toolkit to link Force.com applications to Google Apps. Now, Appirio already has five commercial applications that connect Google Apps and Salesforce.com. That's more than any other vendor, and three of our apps - Calendar Sync, CRM Dashboards, and Doc Search - rank in the top ten of all AppExchange downloads.
In the "old world" of on-premise software, this new toolkit might be viewed as a threat to Appirio's product portfolio. If any developer can now easily link up Salesforce.com and Google Apps, who needs Appirio's products?
In truth, though, we think it's great. Appirio was involved in early usage and validation of the new toolkit. We embedded it into a cool new Visualforce demo that will be shown in the keynote address of today's Tour De Force event in Santa Clara, and augmented our current product offerings with it. Our viewpoint is that basic connectivity does not, by itself, hold intrinsic value, but it's an essential ingredient in creating value.
My former employer, webMethods, made hundreds of millions of dollars essentially by connecting SAP and other ERP systems to one another, sitting on top of the basic connectivity provided by the vendors. By providing this toolkit, salesforce.com and Google will make it easier for innovators to build new and powerful business scenarios that weren't possible before.
With just a few lines of code - six, to be precise - we were able to bring Google calendar data onto a custom Visualforce page (view demo).
We're seeing lots of steps towards integrating the cloud. Salesforce orgs can now connect to one another, via S2S, announced earlier this year. Appirio connected salesforce.com with Amazon S3 via our Appirio Cloud Storage product. In the on-premise world, ubiquitous connectivity really wasn't possible. But in the SaaS world, on the Internet, information can be connected in a scalable way, allowing even small ISVs to create commercial-grade innovative solutions. We hope other vendors' SaaS platforms, either directly or through partners like Appirio, will bake in basic connectivity to one another. This lets us focus on solving problems that have vexed developers in the enterprise for years.
The rapidly increasing web of links among major SaaS vendors is starting to create a business-specific version of the "World Wide Computer" Nick Carr talks about in The Big Switch. If all of your business applications, living in the cloud, could freely collaborate, their collective intelligence would begin to outstrip what any single system could deliver.
Labels: API, GData, Google, Google Apps, salesforce.com
Thursday, May 29, 2008
Connecting the Cloud, One Contact at a Time
Ryan Nichols
Most businesses ultimately depend on personal connections. Business people would be lost if they couldn’t connect everyday with the contacts in their address book. And businesses wouldn’t function without the rich web of connections among their employees, partners, suppliers, and customers. But your company’s contact database is almost certainly incomplete. Despite periodic reminders from management to “scan those business cards” and “import those contacts,” most people can't find the time to maintain this information unless they are forced to, regardless of the benefits to the company. Your personal address book is also incomplete. Sure, you may have a rich virtual rolodex of names, mobile phones, and email addresses, but you can't see how this person is related to your business right now.
- Imagine you’re writing a casual email to reconnect with a former colleague—who happens to be in the midst of making a big purchase with another department in your company. What if you had this sort of business context at your fingertips whenever you communicated?
- Now imagine that your company’s sales reps knew about this connection as they were putting together their proposal. You would have been happy to make an introduction—if they’d only known to ask.
As with our other offerings, we’re starting with simple synchronization—you choose which of your contacts you want to share, and how you want them synchronized between your Google and Salesforce address books. This is a valuable start. Today, your Google email account automatically stores the email address of everyone you’ve ever written to, but knows nothing about their companis or roles. Your Salesforce.com contacts are detailed, but you’re missing hundreds of critical business connections. Synchronizing the two solves a real pain point that we hear from our customers today.
Contacts in Context
Sync is just the beginning. Appirio's vision is to bring the business context from all of a company’s on-demand enterprise applications into the productivity tools and social networks that individuals use as they work. We want "Solutions for Business" + "Solutions for People" to finally create "Solutions for Business People."
Contacts is the center of that vision, and sync between Google Apps and Salesforce is a great place to start. Enjoy the offering!
Labels: AppExchange, appirio, g, Google, Google Apps, on-demand, SaaS, SaaS integration, Salesforce for Google Apps, salesforce.com
Friday, April 18, 2008
Touring the Country with salesforce.com and Google
Narinder Singh
What an exciting week between Google and Salesforce! Let's recap with our perspective on Monday’s announcement event, and Wednesday’s Tour de Force marketing stop in New York City. A few overall observations:
- Expanding awareness: It’s clear that the market is starting to understand the power of platform as a service. Between Marc Benioff’s continuing evangelism of Force.com, Google’s campfire event in Mountain View to launch their AppEngine, and all the discussion this week about bringing Salesforce and Google together, companies are starting to think more broadly about how to combine the capabilities of Salesforce and Google. In our conversations with customers this week, there was more excitement than ever about the types of applications that are now possible.
- Expanding vision: The broader idea that’s starting to emerge from all these conversations is a vision for a new generation of applications that are now possible in the space between structured business applications like CRM, and completely unstructured business activity like email. This is a theme Google CEO Eric Schmidt touched on Monday that we’ll be returning to on this blog frequently.
- Role of partners: The importance the partners of Salesforce and Google to help customers make the most of these capabilities is becoming increasingly clear. A proof point is the role played by that partners in Monday’s Google announcement, and in the Tour de Force events. Salesforce and Google relied on their partner ecosystem to provide so much of the functionality powering Salesforce for Google Apps. This is a tremendous vote of confidence.
Much of the positioning around the announcement has been as a "Dream Come True." We agree! And we look forward to working with our customers and partners to make all this a reality in your enterprise. Until then, enjoy the sweets from Monday's announcement (below).
Labels: force, Google, Salesforce for Google Apps, salesforce.com, Tour De Force
Monday, April 07, 2008
What Do You Get When You Cross Salesforce.com and Amazon S3?
Narinder Singh
You get Appirio Cloud Storage for Salesforce.com, a new SaaS offering from Appirio that taps Amazon S3 to extend the storage capabilities of Salesforce.com. (We toyed with calling it SalAmaForce3 but didn't really see that flying.)
Appirio Cloud Storage [press release] lets Salesforce.com users store more documents and larger size files - such as customer support logs, software patches or video presentations - directly through the Salesforce.com interface, at a fraction of the price of existing storage solutions. The new SaaS offering creates a secure integration with the Amazon.com utility storage service and provides the ability to store documents up to 1GB in size (200x current limits).
Feedback from our beta users shows that is has the potential to reduce existing Salesforce.com storage costs by over 80 percent while enabling them to get more mileage out of their on-demand applications. The service, available in three levels of monthly web-based pricing, can be purchased today on AppExchange or on www.appirio.com.
Connecting the Clouds: A Sign of More to Come
We're excited not only about the service itself, but also what it represents. It shows where the industry as a whole can head - as the platforms mature, there is a substantial opportunity for ISVs to tie together the different clouds and provide offerings that extend and fill in the platforms themselves. In traditional enterprise application integration (EAI), packaged integrations were difficult to commercialize. The permutation of versions and customizations created and "n times n" problem, making it too expensive to create something "packaged" that appealed to more than a very small number of customers. But in the cloud, because SaaS providers commit to stable interfaces - Salesforce has maintained backwards compatability for more than a dozen revisions of its API - "integrating the cloud" can become a new class of solution.
Today's platforms will continue to evolve, and innovative companies will find new ways to bring them together. Appirio Cloud Storage is only one of the many products that Appirio will be offering in this camp over the coming year. Stay tuned!
Photo credit: MaxChu on Flickr
Labels: Amazon S3, appirio, Elastic Cloud Computing, Force.com, on-demand storage, SaaS integration, salesforce.com
Thursday, March 20, 2008
What Do Open Source and On-Demand Have in Common?
Chris Barbin
What Do Open Source and On-Demand Have in Common?
They both keep Steve Ballmer awake at night? Nope, too easy. They both changed the game in enterprise software? True. But the most interesting answer is "community" - they are both driven, and advanced by, the power of the community that surrounds them.
This power was one of the topics raised at this year's Dow Jones Web Ventures conference held earlier this week, where Appirio joined Vauhini Vara of the Wall Street Journal and Salesforce.com president Steve Cakebread onstage.
(Interesting side note: Steve Cakebread is not only president and Chief Strategy Officer at Salesforce.com, but also a Salesforce.com user, and the system administrator at his family's well known wine business - Cakebread Cellars. It's a testament to the simplicity of Salesforce.com that the same platform can serve both a 60,000 person company like Japan Post, as well as a 50-person SMB shop like Cakebread Cellars.)
We joined Steve and Vauhini onstage to discuss how we're using the Force.com platform to create custom SaaS applications for enterprises like Dolby Labs and CRC Healthcare. The questions during Q&A focused mostly on core topics - about a potential recession, whether hybrid vendors like Oracle and Microsoft will succeed in on-demand, why Salesforce is betting on the platform play versus offering more applications, etc.
One of the most interesting questions - the one prompting this blog - came from an audience member who asked, "How does Salesforce take user feedback into consideration when developing their platform?"
Steve said that Salesforce.com is giving the community - users, partners, customers, prospects, developers - a public forum where they can share their ideas and suggestions and implementing a process to take action. Salesforce has created an on-demand product called Ideas to create this forum that turns ideas into action. It ranks the most requested suggestions, which they then incorporate into their own product development. They also use it to encourages their partner community, including vendors like Appirio, to address the other ideas that don't make it into their own development cycle. Salesforce Ideas is now being implemented at other companies, like Dell and Starbucks.
This illustrates a fundamental shift in how product development, IT and enterprise software organizations operate now. Taking a page from the open source model, smart companies like Salesforce.com, Amazon and Dell are tapping into the community to drive innovation internally. The Internet has given them the means of collaboration. Each of these companies focuses on transparency, openness and getting rid of the "not invented here" syndrome.
We like to say here at Appirio that you have two ears and one mouth for a reason - you have to listen to your customers if you're going to win and keep them. It's nice to see that we're in agreement with the leaders in our industry.
Labels: Dow Jones Web Ventures, IDeaS, on-demand, open source, SaaS, salesforce.com, Software as a Service, VC
Monday, March 03, 2008
Insights and Observations from the Pacific Crest On-Demand Conference
Narinder Singh
Last Thursday we had the pleasure of participating in the 3rd Annual Pacific Crest On-Demand Conference, the kickoff to Pacific Crest's Emerging Technology Summit. Salesforce.com CEO Marc Benioff invited us on stage during his keynote to illustrate how partners can harness the power of the Force.com platform, Visualforce and the AppExchange.
The participating companies covered the spectrum from large on-premise software companies such as EMC and SAP, who were describing their expansion into the newest "hot" market, to companies such as NetSuite, Salesforce.com and SuccessFactors that have built their business from the ground up with Software as a Service.
Interestingly, a number of companies there are in the process of trying to radically shift their business model from on-premise to on-demand, and they talked about the challenges. Most of these companies were small and nimble, which enabled them to make the transition cold-turkey. All were very clear that it wasn't an easy switch to make.
Can Companies Have Their SaaS Cake and Eat It Too?
Can companies successfully split their focus between traditional software and on-demand services?
This is a question we've been raising, skeptically, for quite some time in our blog. Our original Services 2.0 position paper in April 2007 described how the disruptive effects of SaaS will impact the economic models of on-premise software vendors. After a year of additional information and insight, it's even more apparent that treating SaaS as just another channel or product feature is a recipe for failure.
Spending a day with companies that have, or are attempting to make the switch from on-premise to SaaS reinforced the major challenges. IDeaS CEO Ed Booth gave a great presentation highlighting the challenges and upside of moving to an on-demand model. Concur Technologies has often been referenced as the best example of a company that successfully made the transition. Some issues raised by them and others included:
- One-time revenue hit: How do you manage through the decline in revenue growth when you move from an up-front license model to a monthly subscription model? With Wall Street and shareholders as panicky as they are today, this is a very difficult proposition for large public companies. Upfront licensing, even with longer term contracts, can drop by as much as 75%. As the Patricia Seybold Group has noted, As a company moves from perpetual licensing - where customers pay a relatively large, one-time licensing fee - to SaaS - where customers pay a relatively small, monthly license fee - financial performance slips in the short-term."
- Internal channel conflict: How do you manage the channel conflict that happens with your own partners, and even your own sales force, when offering both traditional license and on-demand software? Companies like EMC, with established business units focused on driving demand for SaaS or cloud computing, will have a serious challenge with this. The most reliable solution is to completely separate the businesses - which eliminates any synergy of having both models in the same company.
- Shifting to a "month by month" culture: How do you change the way you sell to and support customers when you have to earn their business every month instead instead of every few years when the next big version comes along? This is a huge cultural change for sales and support teams to make. SaaS companies require the culture of the web - where sites like eBay, Amazon, Google and others constantly monitor, serve and improve their customer's experience.
- Speeding up R&D: How do you adapt your product development processes to deliver an on-demand service? Successful on-demand vendors get the benefit of releasing new features quarterly, not every two or three years. When features are released, they are expected to work with other systems indefinitely. Salesforce.com still supports each of its 12 versions of its API. How many on-premise vendors can claim anything even close?
EMC, SAP, Microsoft and Oracle make it clear to customers and stockholders that their foray into SaaS or cloud computing is not a departure from their software strategies, but an expansion of it. They say things like "SaaS is just another delivery model," or "we're giving customers a choice." Yet they keep increasing the on-premise maintenance fees. SAP just increased its maintenance rate from 17% to 22% per year - an increase of 30%! This leads to one of two possible conclusions:
- The cost of supporting a growing legacy of capabilities keeps increasing, which eliminates the benefits of on-premise scale. Compare this to any internet company, where increased scale lowers cost and results in expanded services for customers.
- They are taking advantage of customers' inability to easily switch off of their on-premise software.
Traditional software companies - especially large ones - will certainly have to straddle the fence for a while. Yet the doubletalk and denial will not help in the transition. First, they must acknowledge the need to make a transition. Second, in many cases, dramatic actions, like separating SaaS products into completely independent business units or taking companies private to allow for transition, will be needed to make the change. It's likely that legacy companies will not switch until customers stop tolerating increasing TCO and diminishing innovation from their on-premise systems.
Labels: AppExchange, Concur Technologies, EMC, Force.com, IDeaS, on-demand, Pacific Crest, SaaS, salesforce.com, SAP, software-as-a-service
Monday, February 25, 2008
Adobe and Salesforce - A Fine Blend of Art and Science
Chris Barbin
Application development is a unique combination of art and science. Today’s announcement from Salesforce.com and Adobe introducing the free Adobe Developer Toolkit for Force.com is a good example - combining Adobe’s deep understanding of design with Salesforce's powerful platform-as-as-service model so developers can build innovative and visually appealing on-demand applications.
The Adobe Developer Toolkit is a new set of tools and services that streamline the process of creating customized rich user interfaces for delivery via the web. It allows developers to create on-demand applications that work without an Internet connection. The toolkit connects Adobe’s Flex and AIR (Adobe Integrated Runtime), two of the leading rich internet application (RIA) environments, with Salesforce's Force.com platform. This gives Flex developers access to the Force.com web services APIs, so they can make data in a Force.com database available offline.
CIOs and development organizations need to deliver users a wider set of on-demand applications that require very rich client interfaces and/or offline functionality. These have traditionally been two of the biggest challenges for developers of on-demand applications.
Appirio has been an early adopter of various front end on-demand development paradigms, including Adobe Flex and Visual Force. We use these technologies in a number of ways, for example:
- To create user interfaces for call centers - where a high volume of calls means that saving a few clicks can add up to thousands of hours a year
- To develop interfaces for the iPhone - where the user expects a very specific interaction style that works the same as other applications
- To design custom applications for a very specific purpose - like the cinema management application we have written about previously
- Even to create applications for our own internal use (yes, we eat our own dog food here) such as our Professional Services Automation (PSA) application
The Appirio Professional Services Automation (PSA) application enables professional services organizations to track, manage and reconcile a large collection of projects. Appirio originally developed the PSA application to visualize and manage our various projects, resources, timelines, skills and assignments, and at the time there was not a native Force.com application available on AppExchange that offered these capabilities. While you could use Force.com to manage the respective data, workflows and reports, Flex was what enabled us to create a single visual interface that could both increase individual user productivity and provide clear visibility into the status of projects.
This Flex-based scheduling tool brings our PSA, which is built entirely on the Force.com platform, close to functional par with pure-play on-demand PSA vendors at a fraction of the price. This neat little component (shown below) lets managers drag-and-drop projects, lay out an entire consulting team's assignments on a single color-coded grid, and double-click to drill down for more details. This makes consulting managers more productive - and smarter. If the result is just an increase of a few percentage points in utilization, the financial payback will be dramatic.
Here are a few screenshots of the Appirio PSA application and our Salesforce interface on the iPhone. For those interested in participating in the current beta program for our PSA application, please contact us at beta@appirio.com.
Screenshot #1: This is a high-level view of our PSA application, which lays out the entire consulting team's assignments on a single color-coded grid.
Screenshot #2: This view of the PSA application shows how individuals and managers can double-click to drill down for more detail.
Screenshot #3: Example of a Visual Force application on the iPhone showing the apartment floor plan for a real estate agent.
Labels: Adobe Flex, appirio, Force.com, iPhone, on-demand, Professional Services Automation, SaaS, salesforce.com
Tuesday, February 12, 2008
Where in the World is Appirio?
While I would like to claim that the reason this blog hasn’t been updated since September is because the entire company has been out of the office solving world hunger, that isn’t exactly true.
However, we have been busy. Over the last few months we’ve been working with our customers on many exciting initiatives to accelerate on-demand in the enterprise by capitalizing on the Software-as-a-Service (SaaS) platforms that have now emerged from the likes of Salesforce.com, Google and Amazon.com. While these projects may be less awe-inspiring than actually addressing the issue of world hunger, they reflect that on-demand has become an option for both enterprise applications and general application "infrastructure."
Dolby Taps SaaS to Arm Customer Service Reps and Enter a New Market
The proof of concept highlights the power of development-as-a-service, as well as the potential of SaaS platforms like Force.com. Appirio and Dolby brought together the flexibility and lower overhead of on-demand software with the value of leveraging existing IT investments to show how to lower costs and adapt systems more quickly and easily.
The entire proof of concept took less than a week to design, develop, create and test. Using legacy on-premise platforms, it would have easily taken that long to get the hardware / software / network / security setup so we could begin – not to mention the effort to configure the database, create the logic and workflows, integrate it with external internet service and actually design and build out the user experience.
This is just one example of the interesting and innovative things we’ve been working on during these months of silence. In future pieces we’ll describe how to take advantage of on-demand applications and align them with emerging SaaS platforms to create an overall SaaS strategy for the enterprise.
Image from the Dolby prototype created with Visual Force
Labels: appirio, salesforce, salesforce.com
Tuesday, December 19, 2006
Understanding the Difference between On-Premise and On-Demand Software
It’s difficult to touch, feel or smell enterprise software. It in a package, but definitely not one that has a bar code and a price on it. When we ask "what does it do," we’re asked in return "what do we need it to do?" Sometimes, the same question applies when one asks "how much does it cost." This sales approach, combined with zero marginal cost for the provider, results in the software industry being fraught with idiosyncrasies. In such an industry, one of the tools all of us use to understand the ethereal notion of enterprise software is the analogy. While analogies can never prove a point, they help frame our view and make software more concrete in our minds.
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Below we have taken a look at some of our favorite (hopefully humorous) analogies for On-Demand and On-Premise software. Yet there is a more serious point - your approach to solving business problems with technology is often about how you frame the question.
The past several years on-demand software has empowered line of business owners to sucessfully deploy siloed applications. Yet for CIOs, today the question is not how you wrestle back control, but how to embrace on-demand, allow lines of business to pursue their efforts, and manage the overall adoption of the technology in the business.
With that, we hope you enjoy some of our favorite entertaining analogies that frame the difference between on-demand and on-premise. In addition, we welcome you to add to our list.
Enterprises choosing on-premise software are like teenagers getting married. It’s not what you thought it was going to be, there are all sorts of unexpected costs and divorce (think "upgrades" or "migrations") are both painful and inevitable. That’s why teenagers should focus on dating (on-demand)?
People try to compare on-Premise and on-demand to buying vs. leasing a car - as if either preference were equally valid. This analogy would be true if, when buying a car, you needed to take a special class that cost twice the price of the car, and every 3-4 years the car's engine would require rebuilding while in motion; while when leasing a car, gas and insurance were included.
But isn’t it true that at some scale, its just more cost effective to buy software and manage it yourself? Sure, I think that was right under the headline of Wal-mart buying old nuclear reactors to provide power to their stores.
Long term contracts, uncertain performance and costly upgrades? Hmmmm, you're talking about either on-premise software, or the New York Knicks.
Security, quality control, our large size, the need to customize things for our unique needs and the cost of buying things each month… those are the top reasons for using on-premise software... or deciding to buy seeds and grow all our own food.
Labels: on-demand, SaaS, salesforce.com, Software
Wednesday, December 13, 2006
IT Management & Governance In an On-Demand Model
The IT landscape for Salesforce.com customers is quickly growing complex. With over 400 applications on the AppExchange today – with projections of 1,000 by late 2007 – and the upcoming Winter '07 release and the Apex programming language, sound IT management and governance practices are essential. In the past, a single application such as SFA or Service & Support was manageable for a line-of-business leader or an aspiring IT professional. They could gather requirements, build a business case, sell internally and then implement. With the increasingly complex platform now offered by Salesforce.com, where customers have access to applications, extensions, API’s, partners and the platform itself, determining the tradeoffs among building, buying, and partnering requires a thoughtful and collaborative approach among the business, IT, and the Salesforce.com community.
Some Appirio customers have recently completed extensive application and server rationalization exercises as part of the launch of an on-demand strategy. Inventory analysis is a great first step towards on-demand portfolio management, and uncovers a number of obvious opportunities to migrate on-premise applications to the on-demand model. Many traditional project and portfolio management principles apply, but in the on-demand world there are four key strategies for CIO’s to apply:
- Centralize the Approval Process. All new IT project requests should flow through a single, cross-functional, company-wide approval process with common selection criteria. In the past, on-demand software vendors have thrived by working around traditional IT, which creates redundant projects, additional costs, and inefficient use of resources. Under this decentralized model, many departments (often including IT) are finding, promoting, and implementing siloed on-demand applications that solve a specific problem for that particular department, but perpetuate vendor bloat, cost creep and integration headaches. Further, many existing Salesforce.com customers and their IT departments may not be aware of the capabilities and benefits of the AppExchange platform. To take advantage of the benefits of a true on-demand platform, CIOs must have the business, IT, Salesforce.com teams in sync. The CIO should be aware of all projects currently in queue, and knowledgeable of the end-to-end platform capabilities. This linkage is essential to driving adoption, integrating the user experience, ensuring corporate buy-in, and keeping costs down.
- Apply Early Adopter Factors. Let’s face it, we are in “early adopter” territory: standardizing an on-demand platform for a company with thousands of users, hundreds of legacy applications, complex business models and an “on-premise” mentality.. Along with the benefits of the on-demand model, there are inherent risks, with few end-to-end enterprise class success stories today. The development methodologies and assets are far from mature, and for every ten integration challenges, there are twenty solutions presented. Based on the evolving nature of on-demand platforms and applications, CIOs are well advised to estimate timelines somewhat longer than rollouts of a single application, and to anticipate increased costs associated with training, development, integration and data cleansing and migration.
- Keep Up with the Upgrade Roadmap and Partner Ecosystem. Remember that when you use on-demand vendors, your software is automatically upgraded with each new release. New partners and applications appear on the AppExchange every day. In short order, enterprise customers can expect features that they were planning on building to show up in new releases, and will notice applications that they were expecting to buy to show up on the AppExchange or other marketplaces. CIOs making the platform decision should demand early visibility not only into traditional product roadmaps, but also ISV and SI applications. Specifically, power users and CIOs should find out which applications are actually being used - particularly in large deployments of more than 1,000 seats - and how they are scaling in terms of volume, security, integration, and usability. This information, and the ability to talk directly with other companies making similar investments, will have a direct impact on a CIO’s make, buy, or partner decisions.
- Salesforce.com is Not Just for Sales. Education, awareness, and sponsorship are critical. While it seems obvious to those of us who ”get” on-demand vendors like Salesforce.com, most executives, functional leaders, and even salespeople, do not understand the future direction and capabilities of the AppExchange platform. The notion of building an application development platform using an on-demand model is new for most people, and it takes awhile to fully appreciate the profoundness of this change for typical IT operations. To really drive platform adoption across the enterprise, the executive team needs to consistently educate and drive awareness thru sponsorship and active, visible pilots that demonstrate value to end users and the business.
Labels: AppExchange, appirio, cio, on-demand, SaaS, salesforce, salesforce.com