SalesForce (SFDC), more than any other SaaS company, has paved the way for SaaS as model for selling a business service underpinned by technology. SFDC understood before most that SaaS was not a new way to pay for software and software implementations, but a way to swiftly create value. No business wants to buy software, hardware, networks, computers, data centers, and IT people (gag! cough! expensive!). Businesses want buy solutions to their problems and enable more revenue and profit. All that other “stuff” which I personally care a lot about, is not the core of business.
I saw the following article in TechCrunch. It looks at what is right, wrong, and what are the ongoing trends base on SFDC.
There are a lot of important messages. I think older IT businesses found before the iPhone fail to understand or take advantage of the “the consumerization of IT” or the fact that “compute is very inexpensive”. On the other hand, a more established providers do understand need for “enhanced security due to increased exposure” and “computing is location agnostic” (hybrid cloud). A lot of compute will grow outside of corporate data centers, but I don’t think corporate data centers will entirely disappear in the near term.
Under computing is cheap, I saw this little snippet.
“By comparison, at the same time that Salesforce was founded, Google was running on its first data center—with combined total compute and RAM comparable to that of a single iPhone X. That is not a joke.” And 11 years before that I was in class with professor lamenting they paid more for 256 bytes of memory than we were paying for 256 kbytes of memory.
Around the same time (1988), I was reading an article that has stuck with me for 30+ years which I can’t find. It basically stated that at the time “X Windows System” was developed, it ran so slow it was impossible to use (minutes to paint a scree), but that developers had confidence that the CPU, Networks, and Graphics would catch up – and they did. We’ll see this same pattern with AI, VR, Blockchain, etc. today.
The real lesson is go BIG when you are innovating. The computing, often driven by IBM (see Summit – worlds fastest computer with whole new architecture), has an amazing history of catching up and passing our wildest dreams.
So dream big and go innovate. There are whole new technologies being built to meet the challenge.