Category Archives: Salesforce

Microsoft grows in SaaS market but Salesforce still leads the way

Microsoft1New findings from Synergy Research Group highlight Microsoft is growing healthily in the Software-as-a-Service (SaaS) market segment, but Salesforce is still market leader.

According to the research, Microsoft demonstrated the second highest level of growth within the segment at 70% year-on-year, only behind SAP who were at 73%, but still only sits second in the market share rankings. Salesforce was one of only four in the top ten for the segment who demonstrated less than 50% growth, however still accounts for just below 15% of the worldwide market share for SaaS. Adobe, IBM, Oracle, Google, ADP, Intuit and Workday complete the top ten.

“In many ways SaaS is a more mature market than other cloud markets like IaaS or PaaS,” said John Dinsdale, Chief Analyst at Synergy Research Group. “However, even for SaaS it is still early days in terms of market adoption. It is notable that the big three traditional software vendors – Microsoft, Oracle and IBM – are all now growing their SaaS revenues faster than the overall market and yet SaaS accounts for less than 8% of their total software revenues.”

The Software-as-a-Service has been demonstrating healthy growth over recent years, as Synergy estimates the market segment has grown by 40% over the last 12 months, and is expected to triple over the next five years. The growth claims are also supported by research from Cisco. Last year the team predicted by 2019 59% of total cloud workloads will be SaaS, compared to 45% in 2014.

The research also highlights Microsoft as making positive steps in the consumer SaaS market segment alongside its enterprise business. While the consumer segment is roughly a third of the size of the enterprise market, the company’s growth in this area exceeding competitors who currently have a more assured position in the space.

Salesforce and Dropbox launch on Facebook’s messenger platform

facebook botSalesforce and Dropbox are two of the first to launch service offerings on Facebook’s new messenger platform.

According to Facebook, Messenger is one of the industry’s fastest growing apps, increasing user rates from 500 million in 2014 to 900 million today. The company have now introduced a number of bot services on the app, allowing businesses to communicate with their customers providing anything from automated subscription content like weather and traffic updates, to customized communications like receipts, shipping notifications, and live automated messages.

“Using Salesforce, businesses are now able to engage with their customers on Facebook Messenger in a whole new way – in fact, Salesforce enables each Messenger interaction to be specifically tailored, based on the context of the entire customer relationship,” said Paul Smith, GM of Salesforce Marketing Cloud in EMEA. “When you remember that most companies are now competing primarily on the customer experience they can deliver, you can begin to see the massive impact of opening up this new channel to businesses: brands will be able to create deeper, more personal 1-to-1 customer journeys within chat. It’s another way in which we’re helping companies to succeed in the Age of the Customer.”

Powered by Salesforce Lightning, the platform will enable customers to deliver personalized engagement at scale with CRM data. The company claims that each message can be linked directly to a customer’s history in the Salesforce CRM platform, enabling brands to deliver personalized messages to customers. The news builds on trends within the industry as vendors aim to create increasingly personalized experiences for customers as a means of meeting the expectations of increasing demanding consumers.

“Now with Messenger, Facebook is inviting companies to engage their customers in new ways on its platform at scale,” said Alex Dayon, Chief Product Officer at Salesforce. “With Salesforce for Messenger companies will be able to easily connect their businesses to Messenger, creating deeper, more personalized and 1-to-1 customer journeys within the chat experience.”

Dropbox has also taken advantage of Facebook’s new platform to increase its own offering. As part of the proposition, users can share files stored on Dropbox’s cloud-storage service directly through Facebook’s messenger app.

“We want people to communicate just the way they want to on Messenger, with everyone they care about,” said Stan Chudnovsky, Head of Product for Messenger at Dropbox on the company’s blog. “Giving our users the ability to share their Dropbox videos and images in Messenger threads with just a few taps will help them bring more style and personality to those conversations.”

While the news has grabbed headlines in a very effective manner, it remains to be seen whether Facebook can police the platform in a way that satisfies consumers. The platform could essentially be seen as an upgrade on SMS advertising which was received coldly by consumers after the initial enthusiasm declined.

Salesforces acquires AI start up

Robotic hand, accessing on laptop, the virtual world of information. Concept of artificial intelligence and replacement of humans by machines.Salesforce is set to acquire deep learning start up MetaMind in an effort to bolster it artificial intelligence capabilities.

While terms of the deal have not been released, it would appear to be an “acqhire” based agreement, as Salesforce will integrate MetaMind’s technology into its current services. Long-term intentions have not been announced, though MetaMind’s capabilities will be used to automate and personalize customer support in the first instance.

“With MetaMind and Salesforce coming together, we’ll be able to offer customers real AI solutions with breakthrough capabilities that further automate and personalize customer support, marketing automation, and many other business processes,” said MetaMind Founder Richard Socher. “We’ll extend Salesforce’s data science capabilities by embedding deep learning within the Salesforce platform.”

MetaMind’s expertise is based on Socher’s PhD where he explored deep learning artificial intelligence. The company teaches machines to recognize images and understand natural language, operating in a similar way to the networks of neurons in the human brain. While these capabilities have been limited to internet giants such as Facebook, Google and Baidu, Socher founded MetaMind under the ethos to “build deep learning technologies anyone can use, not just the internet giants”. The company was initially funded by Saleforce CEO Marc Benioff and venture capital fund Khosla Ventures.

The acquisition builds on growing AI trends within the industry on the whole, as industry giants are currently competing for leading spot in the emerging segment. With Microsoft, Google, IBM and Facebook, all making strides in recent weeks, it should not be seen as a surprise that one of the world’s largest CRM brands is also entering the fray.

“Over the past year and a half, we’ve been on a mission to empower business users with state of the art deep learning technology to simplify, improve and automate decision making,” said Socher. “And now, we’ll be able to continue our journey at Salesforce on a much larger scale, with the resources and ecosystem of one of the world’s most innovative and influential enterprise software companies.”

For unpaid web users, MetaMind’s products will be discontinued on May 4, whereas for paid users, products will be discontinued on June 4. Although it has not been made 100% clear what the long-term strategy of the acquisition will be Socher highlighted that the MetaMind team’s research will continue and it is still receiving CV’s for new positions.

Outside of the AI space, Salesforce has also signed an agreement with NEC to establish its second data centre in Japan to support its growing customer base over the Asia-Pacific region. Japan’s public cloud service market grew to 2.6 billion yen in 2015 and is forecasted to reach 6.3 billion yen by 2020.

“Salesforce’s plans to open a second data centre in the Kansai area reflects our commitment to Japan and the Asia-Pacific region,” said Shinichi Koide, CEO at Salesforce Japan. “Salesforce continues to increase its strategic investments in the market, enabling local companies to leverage the latest cloud, mobile, social, data science and IoT innovations to create connected experiences that matter to their customers.”

While Salesforce is still considered in the industry as the market leader, Oracle and Larry Ellison have actively targeted Salesforce market share, as the company still appears to measure itself against Salesforce’s success. As a company which has built its reputation on innovation it should not come as a surprise that Salesforce is pursuing technologies such as artificial intelligence to bolster its product offering and enforce its position as the industry leader.

What the buzz is DevOps?

Pixelated DevOpsIn an industry where there seems to be a constant conveyor belt of buzzwords, you’ll struggle to find one that is currently more widely used that DevOps.

In its simplest form, DevOps is, among other things, a business practise which ensures greater collaboration between the development and operations function within the organization, the Holy Grail for most businesses! Development often considers operations too regimented, and operations tends to consider developers too wishy-washy. Finding a middle ground can be a tricky task.

But this is where DevOps fits perfectly; a cultural shift which enables collaboration between development and operations. It’s an ideology which strengthens communication, collaboration, integration and automation.

There are various nuances of the definition, but is more or less the same irrelevant of who you are talking to, but the use-case can vary. Not dramatically, but the output of DevOps can depend on the organization which you belong to, and the business case for the cultural change within the organization itself.

What is refreshing is that DevOps seems to be one of few concepts/technologies/ideologies which doesn’t seem to focus on being more cost effective. Almost every use case for DevOps focuses on proactive business benefits, as opposed to simply reducing CAPEX/OPEX.

The business applications for DevOps are potentially limitless, though here, we’ll focus on three areas; speed of delivery, improved quality and greater control/security.

First and foremost, speed. Speed is defining almost every facet of the digital business landscape, as well as consumer expectations. If you’re not working fast enough, your boss will start looking over your shoulder, and if you’re not releasing products fast enough your customers will buy elsewhere. In short, if you’re not fast, you’re not in business.

“DevOps enables IT to move applications from development and into production as quickly as possible,” said Brett Hofer, Global DevOps Practise Lead at Dynatrace.

Fast delivery design, vector illustration“DevOps can also ensure testing doesn’t occur too late in the development lifecycle, to maximise its potential value. If you don’t integrate automated testing throughout development, operations teams will have to repeat tests manually every time a configuration is made, and problems will be found too late to make vital changes,” said Hofer.

The concept of DevOps brings development and operations teams together, ensuring that the team are working in a complimentary manner. The essence of collaboration which is driven by DevOps allows teams to work towards the same objectives to ensure that product delivery is more efficient.

“If companies align toolsets so teams are able to share insights and cooperate effectively, they can ensure everyone is working toward the same goals and that everyone is measured against the same benchmarks. With a unified view of performance data across teams, DevOps gives employees a unified comprehensive outlook that translates into an overall competitive advantage,” said Hofer.

Speed to market is all well and good, but this does not necessarily guarantee you will have the most effective product. An alternative objective for DevOps is evolution and continuous evaluation.

“As a DevOps user, Salesforce has seen benefits in several areas,” said Pauline Dufour, EMEA Developer Relations team at Salesforce. “The continual iteration, testing and collaboration that DevOps involves means it is much easier to incorporate customer feedback into products and to do this more quickly.”

“This has a big impact on our customers as we really do include much of their feedback into our product design and upgrades,” said Dufour. “The DevOps approach also enables us to be more innovative and nimble – values that are core to our company. Continual collaboration and iteration means that we are able to deliver continual innovation.”

While there are other uses for the concept, Salesforce have seemingly prioritized product relevance, keeping themselves ahead of competitors. Here, DevOps enables the team to update the product offering, building in new features and answering the call of customer feedback, while minimizing downtown and disruption to customers.

Open cloud retail sign“In fact we believe that unless businesses adopt an open, integrated approach they will find themselves displaced by digital disruptors, as we’ve seen with Uber and Hailo in the taxi industry,” said Dufour. “For organisations with a less collaborative and open culture, DevOps may be harder to implement, but I believe it is definitely worth the effort – it can turn your development into a competitive advantage.”

Alongside Salesforce, the Copyright Licensing Agency (CLA) have also utilised this methodology of continuous development to develop its new product offering Digital Content Store. The offering is being trialled currently by five universities, and will enable CLA’s customers to more effectively manage extracts which are under licence, as well as making the content more widely available for the students.

“I’d define DevOps as a culture which enables IT (as a whole, not just Development and Ops) to be more productive and efficient,” said Adam Sewell, IT Director at the CLA. “Which in turn means they can be more reactive to changes in the market, more responsive in terms of delivering solutions to customer (e.g. by taking feedback from customers actually using new products early on in the product lifecycle and being able to develop and release new features faster and with confidence) and ultimately, be more innovative as a business.”

As with every other aspect of the community, security is another consideration here. While most people would now consider themselves cloud experts, let’s not forget that it is just entering the mass market. Most buyers are continually concerned with security, robustness and reliability. DevOps presents a very simple solution.

“In product development data has to be both accessible and secure,” said Ash Ashutosh, CEO at Actifio. “It’s a tricky balancing act, made all the more difficult by excess physical copy growth. More data copies will just increase the ‘attack surface’. So the idea is to create fewer physical copies, decrease the number of security targets, mask sensitive data, create an audit trail and reduce overall risk.

“The control of sensitive data starts with the reducing excess physical copies. What’s essential is that the system incorporates all key technical standards and multiple levels of data security that will address physical, virtual and hybrid environments. It’s fast, simple to understand and operate. It supports and helps to reinforce broader enterprise security strategies.”

Although the question of cost will always arise, as we can see from the examples above, early adopters of cloud technologies and derived methodologies (including DevOps), can create new business opportunities, launching brands into new markets and attracting new customers. Cloud, DevOps and all the other buzzwords in this space are more than just a means of reducing cost.

Salesforce modernizes wealth management offering

Salesforce WearSalesforce has launched Financial Services Cloud, a new product suite that includes portfolio management, prospecting and data management tools.

As part of the new look product offering, Salesforce has built an ecosystem of more than 20 partners to implement the additional features into the suite. “Today’s investors don’t wait for quarterly meetings to discuss their finances with advisors; they expect to be able to engage them for advice when and how they want,” said Richard Lumb, Group Chief Executive, Financial Services at Accenture, a member of the product ecosystem.

While seen as a more traditional industry, wealth management businesses are apparently under increasing pressure to provide more detail to customers on a more consistent basis. Whereas a quarterly meeting might have been sufficient in the past, customer demands for information, speed and continuous delivery has forced the wealth management industry to evolve into the internet age and an open-all-hours model.

With clients demanding more face-time, and instantaneous insight into the performance of their investments, wealth managers are seeking digital solutions to increase productivity. Such product launches not only demonstrate the trend of modernizing more traditional industries, but also the need to provide the complete customer experience to remain competitive in the CRM space.

“Legacy advisor solutions were created decades ago to serve a product-centric world. Today, we live in a new world that is digital- and client-centric, which is turning the wealth management industry on its head,” said Simon Mulcahy, GM of Financial Services at Salesforce.

To develop the new features, Salesforce developed a number of new partnerships with niche technology providers. For example, DocuSign and eSignLive plan to add integrations that could allow advisors to send, sign and manage financial documents, and WealthEngine provide tools to facilitate wealth scoring and analytics.

“The wealth management industry is undergoing rapid change, and the ability to deliver on customer expectations for a more responsive and highly personalized digital-led experience will become an increasingly important competitive differentiator,” said Kieran Hines, Practice Leader for Financial Services Technology at Ovum. “Investing to enhance the customer experience is a top three IT priority for a significant number of private banks in 2016, with institutions in Western Europe and North America particularly focused on this area.”

Salesforce quarterly figures prove cloud industry resistant to IT downturn

Salesforce’s latest quarterly figures have reversed the conventional logic of valuing cloud company stock, according to stock markets reaction.

Before the cloud giant’s latest figures were released, many Wall Street analysts were looking for signs of a downturn in the cloud industry, according to Reuters, which reported that the cloud software leaders is regarded as a barometer for conditions across the cloud industry. After a poor sales outlook from Tableau earlier this month, many analysts were looking for proof of a downturn in the cloud industry. Conventional wisdom in the money markets was that poor cloud performance would follow a downturn in the IT industry, related to worries about the economy.

However, when Salesforce returned higher better than expected revenue reports in its quarterly review and raised its yearly revenue forecast, analysts began to speculate that cloud sales and IT investment may be inversely related. At the end of the first day’s trading after Salesforce’s figures were released its stock has risen 7.2%, reported Reuters.

The cloud giant company upped its revenue forecast for the year from $8.0 billon-$8.1 billion to $8.08 billion-$8.12 billion. Analysts on average were expecting a profit of 99 cents per share on revenue of $8.08 billion.

Salesforce’s Chief Financial Officer Mark Hawkins dismissed the pessimistic outlook the money markets have for the cloud industry in the current uncertain economy. “We aren’t seeing an economic impact,” said Hawkins.

The opposite of analysts’ expectations is taking place, he argued, since the cloud computing sector thrives when businesses make more careful buying decision and choose cheaper, simpler to install services that can be costed more flexibly. Another point of departure between cloud and IT company stocks is that they are bought by different people. Salesforce is often installed over the head of the IT department, Hawkins said.

In January BCN reported how BT has effectively become a reseller channel for Salesforce, giving its corporate customers the option of a hotline to Salesforce’s cloud service through its BT Cloud Connect service.

Salesforce bolsters machine learning business with PredictionIO acquisition

AI-Artificial-Intelligence-Machine-Learning-Cognitive-ComputingOpen source machine learning software vendor PredictionIO has announced it is to become part of Salesforce. The Palo Alto start up has stressed that the software will continue to be available under an open source Apache license.

The addition of analytics and machine learning has become a key strategy to Salesforce as it bids to build on its cloud offerings. Last year BCN reported how Salesforce was adding new Wave Actions to its Analytics Cloud intelligence tool. More recently it bought machine learning companies RelateIQ and Tempo AI and integrated staff into its data science teams.

Machine learning, which can be used in many cloud applications, has become an area of contention in the cloud industry with other start ups in this area, such as H2O and Skytree, the subject of takeover rumours.

California based PredictionIO was formed in 2013 and a year later received $2.5 million in backing from investors including Azure Capital Partners. Other backers include CrunchFund, the Stanford-StartX Fund and Kima Ventures. Dropbox is PredictionIO’s most prominent client.

CEO Simon Chan explained the rationale for selling the firm on his company blog. As part of Salesforce, PredictionIO’s machine learning system will get immediate access to the entire Salesforce clouds. The opportunity to extend SalesforceIQ’s machine learning and intelligence was a chance not to be passed up, he said. “Being a part of Salesforce will give us an amazing opportunity to continue building our open source machine learning platform on a much larger scale,” said Chan.

Chan’s objective will be the same within Salesforce – to simplify development of machine learning technology and build it up. PredictionIO now has 8,000 developers creating over 400 apps. Chan pledged that PredictionIO’s open source technology will stay that way and will continue to be free to all users. To mark the Salesforce deal it is to dropping the PredictionIO Cluster software fee on AWS Cloudformation, which will is now free for the first time in the company’s history.

BT Cloud Connect to give customer direct link to Salesforce

BT cloud of cloudsTelco BT is to give its corporate customers the option of a hotline to Salesforce’s cloud service through its BT Cloud Connect service.

The telco claimed it can provide a high performance link to Salesforce’s Customer Success Platform and give customers a more reliable and faster performance from the system, as part of its

Cloud of Clouds programme. BT’s global network connects 200 data centres, 48 of which it owns and operates itself.

The service will be rolled out incrementally from February 2016. The priorities for service roll out will be the US first, then Europe, followed by the rest of the world.

Clients desperately want the cloud to help them manage and access vast amounts of valuable data, but it needs to be made easier for them, according to Keith Langridge, VP of network services at BT Global Services. “Our Cloud of Clouds makes it easier by providing direct, secure and high performance connectivity to the applications. Salesforce is a true pioneer of the technology so this is an important milestone in the delivery of our vision,” said Langridge.

The methods that companies use to connect with the cloud needs to be refined, according to Salesforce’s UK MD Andrew Lawson. “BT is accelerating this shift for its customers,” said Lawson. The addition of Salesforce to its cloud of clouds roster will transform the way BT’s clients can connect with customers, partners and employees.

Box and Salesforce unite for integrated in-app file management

mergerSalesforce and Box have worked together to integrate their respective cloud offerings so you can use files stored in Box without having to exit Salesforce. To this end they have jointly created a new Salesforce Files Connect for Box service, along with a Box software development kit (SDK) for Salesforce.

The Salesforce Files Connect for Box means that users of the former’s customer relationship management system can search, browse, access and share Box files from any device without coming out of their Salesforce app or jeopardising the existing access and security granted in Box.

The two firms claim the integration will make users of each service more productive, as content managed on Box can easily be connected directly to records, users and groups within Salesforce. The newly created cohesion between the two apps means that two Salesforce users can now collaborate together on material that is stored in the Box system.

The Box SDK for Salesforce aims to give developers license to use Box’s content management within any app built on Salesforce App Cloud. It also allows developers to embed Box’s content management functions within the Salesforce system. The upshot is that it gives Salesforce users mope options on the type of content they can use, even from specialised industries like financial services, healthcare and government.

Salesforce Files Connect for Box is currently being tested out by select customers and is expected on general release in Summer 2016. Box SDK for Salesforce is currently available for free on Github for developers.

Integrations like this help make it easier for enterprises to move to the cloud, said Box CEO Aaron Levie.

“As companies get more mobile, social and connected, it’s critical that anyone can instantly access the information they need, no matter where it is stored,” said Nasi Jazayeri, executive VP of Community Cloud at Salesforce.

Salesforce offers $100m VC opportunity to European cloud startups

Salesforce WearSalesforce Ventures has allocated $100 million to invest in European startups as the investment arm of the cloud giant aims to capitalise on a potential $33.3 billion market. Any European cloud start up that impresses the venture capitalists could typically expect backing of between $1 million and $5 million, according to the fund’s development head.

As the investment arm of cloud-based CRM giant Salesforce it has already invested £500 million in 150 cloud and enterprise startups since 2009. However the majority of these have been US based and only 17 European cloud start up firms have been funded. However, researcher IDC predicts that the European cloud sector will grow 12 as fast as any other sector of the IT industry. As Europe catches up with the US, by 2019 its cloud market could be worth a collective $33.3 billion, it said.

As the global shift to the cloud generates demand for exciting new social, mobile and data science technologies it is creating an opportunity that should not be missed, said Salesforce EVP of corporate development John Somorjai. The European investment business will link back to Salesforce Ventures’ operations in the US run by Somorjai. London based Alex Kayyal will head the Salesforce Ventures’ efforts in Europe.

“There is so much incredible innovation happening in Europe today and we want to empower the next generation of enterprise cloud startups in the region,” said Somorjai, “Our $100 million commitment strengthens our mission to help startups grow and give back to their communities.”

However, he admitted that the competition has already started with five investments already earmarked to take a chunk of the budget.

European cloud start ups that have previously won funding from Salesforce Ventures include CartoDB, CloudSense, Cloud9 IDE, NewVoiceMedia, Qubit, Universal Avenue and YOUR SL. It’s not just about the money, according to Ruben Daniels, co-founder of Cloud9 IDE. “It’s the network and introductions, mentorship and framework that help,” said Daniels.

Salesforce Ventures’ global expertise was as important as its funding, according to CartoDB founder Javier de la Torre. “It helps us more effectively bring our data visualization tools to individual and business users around the world,” said de la Torre.