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Mon, Nov 23, 2009 12:30 EST

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Posted by: Thomas Wailgum in News Topic: ApplicationsBlog: Enterprise Software Unplugged
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To a rapt and packed-house last week, Salesforce.com CEO Marc Benioff preached to the assembled masses—the 19,000 devotees attending the Dreamforce event in San Francisco, the 10,000 congregates on the edge of their seats during his keynote, the 3,000 faithful in the overflow room across the street, and the untold numbers listening in via the Internet. (It's all true, because Marc pointed all that out.)
"It is a sign that something here is happening in the software industry," Benioff declared.

Image: (cc) Kenneth Yeung - www.thelettertwo.com
At the outset of his sermon, which was laden with self-congratulation, hype and hyperbole, he tried to turn the spotlight on the fervent passion of all of those who worship at the Salesforce.com altar. "This company was created because of you," Benioff intoned from his pulpit, the choir nodding in approval. "This company was created because of the fundamental belief and inspiration you had in this model and this company. And we recognize that each and every day.... The reality is, it's about you."
But last week, Benioff's seemingly crowd-affirming sentiment couldn't have been more wrong and disingenuous. Dreamforce was not about the customers. Dreamforce was partly about Salesforce.com and its new offerings, but much more noticeably, it was about Benioff posturing himself as a latter-day cloud computing evangelist: The Savior with SaaS Software. The Cleric of the Cloud. The Evangelist of the End of Software.
Benioff promised a "90-minute or so" keynote. But 76 hours later, the showman was still going, and going, and going. Did anyone care? Didn't seem like it. Benioff's devotees in the Dreamforce audience, who dutifully lapped up his every exaltation, pronouncement and rewrite of software-industry history (to suit his own scripture), made Steve Job's Moscone Center audience seem like the crowd at a Michael Richards' standup comedy performance.
The Dreamforce Twitter feed (#df09) overflowed with more praise than heretical questions—though there was a handful of those and a few snide comments. Someone called him "IT's P.T. Barnum."
Part of me kept expecting a CIO who was "afflicted" by his company's use of Siebel CRM to be carried up to the stage, and then The Minister of Software Maladies would exorcise the demons from the CIOs' convulsing body: "You are saved, my brother!!" Benioff would proclaim, as he slapped his palm to the CIO's forehead, pushing him back into a group of Salesforce.com employees.
Benioff, of course, hales from the House of Larry Ellison (who's either the Antichrist or Second Coming in this whole scenario, depending on your license terms with Oracle), spawned from the depths of Oracle's Redwood Shores. So he learned from the master of enterprise software chicanery and self-aggrandizing presentations.
Now Benioff appears poised to take his place on the throne: Dreamforce attendees sought his autograph. Benioff has now got security goons and hoards of "handlers." He's got "The Good Book of Marc"—his tome Behind the Cloud recently published, complete with plenty of self-laudatory observations.
So what's the appeal? "Benioff has done a great job in simplifying complex products and concepts for the business user," says Ray Wang, partner in enterprise strategy at Altimeter Group, via e-mail. "This flies in the face of the complexity often marketed by his competitors. It's like the Mac vs. PC debate. The hype is more real than not, though many customers find disappointment when they realize
I've been implementing Salesforce for nonprofits for over a year and it's not Marc Benioff's evangelism that won me over, but the product itself. After seeing success story after success story unveiling right before my eyes, I am convinced that Salesforce is an amazing product. And by allowing my clients to offload their IT infrastructure and focus on business process and workflow optimization instead, they have become more successful. Not to mention the other litany of features such as ease of use, training and customizations.
Chatter a waste of time? Turn it off! It is completely customizable just like everything else, but seeing how people communicate these days, how Gen Y folks are maturing and coming into the business and will someday be in positions of power, I think that Chatter gives Salesforce an edge that other database applications do not have.
I do agree that the keynote was a bit long winded and the delivery was a bit showy here and there, but I don't think you're giving him enough credit. Salesforce didn't grow to be a $1.3 Billion Dollar Company based on Marc's enthusiasm alone!
I was *at* Dreamforce last week. And in general, I had a great time.
However, I didn't drink all the Kool Aid. I left in the middle of the keynote -it was rather dull and forced. There were *not* 19k people at Dreamforce. There were just 19k registrations.
About 9k or more of the registrations were free Expo passes that they handed out like water in the last few weeks.
And yes, there were empty seats around me in the keynote main hall. It was not sold out. And there were a few hundred people in the overflow room, not a few thousand. I looked. And those lucky people in the overflow room got to leave early, as the keynote dragged on.
A great product does not a class of products or industry segment make.
Salesforce.com may be a great product, but that doesn't mean that cloud computing is yet proven a viable solution for all.
If history follows true, cloud computing will become just one more tool in the IT repertoire.
Oh, and BTW, I hear that attorneys are creating a new breed of class action suits to quickly seize data in the clouds in support of civil and criminal actions, using the old FCC rules so the target of the suit doesn't even know when their data has been seized as is being analyzed. I'll bet Benioff isn't talking about that!
I think SFDC has done a good job with garnering the SME market(and a small larger market) with TCO message. Up Until now it was just them and maybe handful of others. With the company expanding into the platform and coming up with new offerings ServiceCloud and Chatter (is it that different from discussion threads we have seeing for years now) and more competition in the form of Google and MS looming, we now need to see how this mini-elephant will dance and stay true to the promises of agility. When u are young it is easy to run fast, as you get older the knees start buckling. So while tipping the hat for what he has "almost" single-handedly done in pushing SaaS to the front, Benioff now has the much tougher challenges ahead. So I agree it might be time to cut-down the portrayal of messiah and continue with the goal.
-Subraya Mallya
I applaud Marc and I did not attend the conference. It is rare today to see a CEO willingly come before a public forum; instead opting for the security of the board room.
Cloud computing has been around for decades. Anyone who uses a web site hosting company is in the clouds. Many small businesses can only obtain an ecommerce presence through cloud computing. The organizations will require social networking with many options.
The days of purchasing single-purpose applications are gone. Well, minus the dinosaur CIOs who do not have the ability to adequately plan for future business requirements. Popular software includes web-based functionality.
Now, whether an organization chooses to purchase the product is their decision. There definitely is competition in the area of business management.
Nice article Thomas. It was definitely engaging.