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Archivo del Autor: Belen De Leon

After twenty years of Salesforce, what Marc Benioff got right and wrong about the cloud

As we enter the 20th year of Salesforce, there’s an interesting opportunity to reflect back on the change that Marc Benioff created with the software-as-a-service (SaaS) model for enterprise software with his launch of Salesforce.com.

This model has been validated by the annual revenue stream of SaaS companies, which is fast approaching $100 billion by most estimates, and it will likely continue to transform many slower-moving industries for years to come.

However, for the cornerstone market in IT — large enterprise-software deals — SaaS represents less than 25 percent of total revenue, according to most market estimates. This split is even evident in the most recent high profile “SaaS” acquisition of GitHub by Microsoft, with over 50 percent of GitHub’s revenue coming from the sale of their on-prem offering, GitHub Enterprise.  

Data privacy and security is also becoming a major issue, with Benioff himself even pushing for a U.S. privacy law on par with GDPR in the European Union. While consumer data is often the focus of such discussions, it’s worth remembering that SaaS providers store and process an incredible amount of personal data on behalf of their customers, and the content of that data goes well beyond email addresses for sales leads.

It’s time to reconsider the SaaS model in a modern context, integrating developments of the last nearly two decades so that enterprise software can reach its full potential. More specifically, we need to consider the impact of IaaS and “cloud-native computing” on enterprise software, and how they’re blurring the lines between SaaS and on-premises applications. As the world around enterprise software shifts and the tools for building it advance, do we really need such stark distinctions about what can run where?

Source: Getty Images/KTSDESIGN/SCIENCE PHOTO LIBRARY

The original cloud software thesis

In his book, Behind the Cloud, Benioff lays out four primary reasons for the introduction of the cloud-based SaaS model:

  1. Realigning vendor success with customer success by creating a subscription-based pricing model that grows with each customer’s usage (providing the opportunity to “land and expand”). Previously, software licenses often cost millions of dollars and were paid upfront, each year after which the customer was obligated to pay an additional 20 percent for support fees. This traditional pricing structure created significant financial barriers to adoption and made procurement painful and elongated.
  2. Putting software in the browser to kill the client-server enterprise software delivery experience. Benioff recognized that consumers were increasingly comfortable using websites to accomplish complex tasks. By utilizing the browser, Salesforce avoided the complex local client installation and allowed its software to be accessed anywhere, anytime and on any device.
  3. Sharing the cost of expensive compute resources across multiple customers by leveraging a multi-tenant architecture. This ensured that no individual customer needed to invest in expensive computing hardware required to run a given monolithic application. For context, in 1999 a gigabyte of RAM cost about $1,000 and a TB of disk storage was $30,000. Benioff cited a typical enterprise hardware purchase of $385,000 in order to run Siebel’s CRM product that might serve 200 end-users.
  4. Democratizing the availability of software by removing the installation, maintenance and upgrade challenges. Drawing from his background at Oracle, he cited experiences where it took 6-18 months to complete the installation process. Additionally, upgrades were notorious for their complexity and caused significant downtime for customers. Managing enterprise applications was a very manual process, generally with each IT org becoming the ops team executing a physical run-book for each application they purchased.

These arguments also happen to be, more or less, that same ones made by infrastructure-as-a-service (IaaS) providers such as Amazon Web Services during their early days in the mid-late ‘00s. However, IaaS adds value at a layer deeper than SaaS, providing the raw building blocks rather than the end product. The result of their success in renting cloud computing, storage and network capacity has been many more SaaS applications than ever would have been possible if everybody had to follow the model Salesforce did several years earlier.

Suddenly able to access computing resources by the hour—and free from large upfront capital investments or having to manage complex customer installations—startups forsook software for SaaS in the name of economics, simplicity and much faster user growth.

Source: Getty Images

It’s a different IT world in 2018

Fast-forward to today, and in some ways it’s clear just how prescient Benioff was in pushing the world toward SaaS. Of the four reasons laid out above, Benioff nailed the first two:

  • Subscription is the right pricing model: The subscription pricing model for software has proven to be the most effective way to create customer and vendor success. Years ago already, stalwart products like Microsoft Office and the Adobe Suite  successfully made the switch from the upfront model to thriving subscription businesses. Today, subscription pricing is the norm for many flavors of software and services.
  • Better user experience matters: Software accessed through the browser or thin, native mobile apps (leveraging the same APIs and delivered seamlessly through app stores) have long since become ubiquitous. The consumerization of IT was a real trend, and it has driven the habits from our personal lives into our business lives.

In other areas, however, things today look very different than they did back in 1999. In particular, Benioff’s other two primary reasons for embracing SaaS no longer seem so compelling. Ironically, IaaS economies of scale (especially once Google and Microsoft began competing with AWS in earnest) and software-development practices developed inside those “web scale” companies played major roles in spurring these changes:

  • Computing is now cheap: The cost of compute and storage have been driven down so dramatically that there are limited cost savings in shared resources. Today, a gigabyte of RAM is about $5 and a terabyte of disk storage is about $30 if you buy them directly. Cloud providers give away resources to small users and charge only pennies per hour for standard-sized instances. 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.
  • Installing software is now much easier: The process of installing and upgrading modern software has become automated with the emergence of continuous integration and deployment (CI/CD) and configuration-management tools. With the rapid adoption of containers and microservices, cloud-native infrastructure has become the de facto standard for local development and is becoming the standard for far more reliable, resilient and scalable cloud deployment. Enterprise software packed as a set of Docker containers orchestrated by Kubernetes or Docker Swarm, for example, can be installed pretty much anywhere and be live in minutes.

Sourlce: Getty Images/ERHUI1979

What Benioff didn’t foresee

Several other factors have also emerged in the last few years that beg the question of whether the traditional definition of SaaS can really be the only one going forward. Here, too, there’s irony in the fact that many of the forces pushing software back toward self-hosting and management can be traced directly to the success of SaaS itself, and cloud computing in general:

  1. Cloud computing can now be “private”: Virtual private clouds (VPCs) in the IaaS world allow enterprises to maintain root control of the OS, while outsourcing the physical management of machines to providers like Google, DigitalOcean, Microsoft, Packet or AWS. This allows enterprises (like Capital One) to relinquish hardware management and the headache it often entails, but retain control over networks, software and data. It is also far easier for enterprises to get the necessary assurance for the security posture of Amazon, Microsoft and Google than it is to get the same level of assurance for each of the tens of thousands of possible SaaS vendors in the world.
  2. Regulations can penalize centralized services: One of the underappreciated consequences of Edward Snowden’s leaks, as well as an awakening to the sometimes questionable data-privacy practices of companies like Facebook, is an uptick in governments and enterprises trying to protect themselves and their citizens from prying eyes. Using applications hosted in another country or managed by a third party exposes enterprises to a litany of legal issues. The European Union’s GDPR law, for example, exposes SaaS companies to more potential liability with each piece of EU-citizen data they store, and puts enterprises on the hook for how their SaaS providers manage data.
  3. Data breach exposure is higher than ever: A corollary to the point above is the increased exposure to cybercrime that companies face as they build out their SaaS footprints. All it takes is one employee at a SaaS provider clicking on the wrong link or installing the wrong Chrome extension to expose that provider’s customers’ data to criminals. If the average large enterprise uses 1,000+ SaaS applications and each of those vendors averages 250 employees, that’s an additional 250,000 possible points of entry for an attacker.
  4. Applications are much more portable: The SaaS revolution has resulted in software vendors developing their applications to be cloud-first, but they’re now building those applications using technologies (such as containers) that can help replicate the deployment of those applications onto any infrastructure. This shift to what’s called cloud-native computing means that the same complex applications you can sign up to use in a multi-tenant cloud environment can also be deployed into a private data center or VPC much easier than previously possible. Companies like BigID, StackRox, Dashbase and others are taking a private cloud-native instance first approach to their application offerings. Meanwhile SaaS stalwarts like Atlassian, Box, Github and many others are transitioning over to Kubernetes driven, cloud-native architectures that provide this optionality in the future.  
  5. The script got flipped on CIOs: Individuals and small teams within large companies now drive software adoption by selecting the tools (e.g., GitHub, Slack, HipChat, Dropbox), often SaaS, that best meet their needs. Once they learn what’s being used and how it’s working, CIOs are faced with the decision to either restrict network access to shadow IT or pursue an enterprise license—or the nearest thing to one—for those services. This trend has been so impactful that it spawned an entirely new category called cloud access security brokers—another vendor that needs to be paid, an additional layer of complexity, and another avenue for potential problems. Managing local versions of these applications brings control back to the CIO and CISO.

Source: Getty Images/MIKIEKWOODS

The future of software is location agnostic

As the pace of technological disruption picks up, the previous generation of SaaS companies is facing a future similar to the legacy software providers they once displaced. From mainframes up through cloud-native (and even serverless) computing, the goal for CIOs has always been to strike the right balance between cost, capabilities, control and flexibility. Cloud-native computing, which encompasses a wide variety of IT facets and often emphasizes open source software, is poised to deliver on these benefits in a manner that can adapt to new trends as they emerge.

The problem for many of today’s largest SaaS vendors is that they were founded and scaled out during the pre-cloud-native era, meaning they’re burdened by some serious technical and cultural debt. If they fail to make the necessary transition, they’ll be disrupted by a new generation of SaaS companies (and possibly traditional software vendors) that are agnostic toward where their applications are deployed and who applies the pre-built automation that simplifies management. This next generation of vendors will more control in the hands of end customers (who crave control), while maintaining what vendors have come to love about cloud-native development and cloud-based resources.

So, yes, Marc Benioff and Salesforce were absolutely right to champion the “No Software” movement over the past two decades, because the model of enterprise software they targeted needed to be destroyed. In the process, however, Salesforce helped spur a cloud computing movement that would eventually rewrite the rules on enterprise IT and, now, SaaS itself.


Source: TechCrunch

Incredibles 2 smashes animated-movie opening weekend record – CNET

Pixar’s super-family not only crushed the animated-film record, but vaulted onto the top 10 list for all movies.
Source: CNET

World Cup 2018 memes: Mexico stuns defending champ Germany – CNET

Doggone it, there were a lot of Chihuahua vs. German Shepherd jokes as fans rejoiced on social media.
Source: CNET

Original Content podcast: ‘Queer Eye’ season two is even more of a tearjerker

It’s only been a couple months since we reviewed the first season of Netflix’s revival of Queer Eye, but the show’s Fab Five are already back with another eight episodes where they remake the homes, wardrobes and lives.

For season two, however, they mix things up a little — not only does the format feel more varied, but the folks being helped now include a woman and a transgendered man.

On the latest episode of the Original Content podcast, we’re joined by Henry Pickavet (editorial director at TechCrunch and co-host of the CTRL+T podcast) to discuss the show. We’re all fans: Queer Eye has its shortcomings, but it really works for us, with multiple episodes ending with tears, on- and off-screen.

We also recap some of the latest streaming and entertainment news, including AT&T’s acquisition of Time Warner, Comcast’s new bid for Fox and Netflix’s addition of Minecraft: Story Mode.

You can listen in the player below, subscribe using Apple Podcasts or find us in your podcast player of choice. If you like the show, please let us know by leaving a review on Apple. You also can send us feedback directly.


Source: TechCrunch

Amazon, Microsoft, Uber donate to oppose the California Consumer Privacy Act

Amazon, Microsoft, and Uber have made large contributions to a group attempting to prevent a privacy act from becoming law in California. As per state disclosure records, several tech giants have made similar donations.

The post Amazon, Microsoft, Uber donate to oppose the California Consumer Privacy Act appeared first on Digital Trends.


Source: Digital trends

Here's what Apple's doing to get you excited about AR – CNET

Apple’s AR updates in iOS 12 are paving the way for where headsets could go next.
Source: CNET

Here's why Elder Scrolls Blades is my most anticipated iPhone game – CNET

Commentary: I’m not even an Elder Scrolls fan, but I can’t wait until this game comes out.
Source: CNET

The techlash

People hate hubris and hypocrisy more than they hate evil, which is, I think, why we’re seeing the beginnings of a bipartisan cultural backlash against the tech industry. A backlash which is wrongly conceived and wrongly targeted … but not entirely unfounded. It’s hard to shake the sense that, as an industry, we are currently abdicating some of our collective responsibility to the world.

I don’t want to overstate the case. The tech industry remained the single most trusted entity in America as recently as last year, according to the Edelman Trust Barometer. Jeff Bezos is the wealthiest man in the world, and Elon Musk probably its highest-profile billionaire; of course they’re going to attract flak from all sides.

Furthermore, tech has become enormously more powerful and influential over the last decade. The Big Five tech companies now occupy the top five slots on the Fortune 500, whereas in 2008, Hewlett-Packard was tech’s lone Top Ten representative at #9. Power breeds resentment. Some kind of backlash was inevitable.

And yet — the tech industry is by some distance the least objectionable of the world’s power centers right now. The finance industry has become, to paraphrase Rolling Stone, a vampire squid wrapped around the our collective economic throat, siphoning off a quarter of our lifeblood via increasingly complex financial structures which provide very little benefit to the rest of us. But a combination of learned helplessness and lack of hypocrisy — in that very few hedge fund managers pretend to be making the world a better place for anyone but their clients — shields them from anything like the rancor they deserve.

Meanwhile, we’re in the midst of the worldwide right-wing populist uprising which has led governments around the world to treat desperate refugees like nonhuman scum; turning them away by the boatload in Europe; imprisoning them on a godforsaken remote island in Australia; tearing children from their parents and caging them in America.

Tesla and Amazon’s treatment of factory and warehouse workers is at best questionable and at worst egregiously wrong … though if they were all replaced by robots, that would eliminate those complaints but also all of those jobs, which makes the complaints look pretty short-sighted. But it’s not whataboutism to suggest that outrage should be proportional to the relative scale of the offense in question. If it isn’t, then that indicates some seriously skewed priorities. What is it about the tech industry’s relatively venial sins, compared to those of finance and government, which so sticks in the craw of its critics?

Partly it’s the perceived hubris and hypocrisy — that we talk about “making the world a better place” when in fact we sometimes seem to only be making it a better place for ourselves. Life is pretty nice for those of us in the industry, and keeps getting nicer. We like to pretend that slowly, bit by bit, life is getting better for everyone else, too, while or sometimes even because we focus on our cool projects, and the rest of the world will get to live like us too.

Which is even true, for a lot of people! I was in China a couple of months ago: it has changed almost inconceivably since my first visit two decades ago, and overwhelmingly for the better, despite all of the negative side effects of that change. The same is true for India. That’s 2.6 billion people right there whose lives have mostly been transformed for the better over the last couple of decades, courtesy of capitalism and technology. The same is true for other, smaller populations around the world.

However. There are many, many millions of people, including throngs in our own back yards, for whom the world has gotten decidedly worse over the last ten years, sometimes as a result of those same changes or related ones (such as increasing inequality, which is at least arguably partly driven by technology.) Many more have been kept out of, or driven away from, our privileged little world for no good reason. Why is it somehow OK for us to shrug and turn our backs on them? The tech industry is enormously powerful now, and Peter Parker was on to something when he said: “with great power comes great responsibility.”

So why is it that we’re only willing to work on really cool long-term goals like electric cars and space exploration, and not the messy short-term stuff like inequality, housing, and the ongoing brutal oppression of refugees and immigrants? Don’t tell me it’s because those fields are too regulated and political; space travel and road transportation are heavily regulated and not exactly apolitical in case you haven’t noticed.

That painful, difficult stuff is for governments, we say. That’s for international diplomacy. That’s some one else’s problem. Until recently — and maybe even still, for now — this has been true. But with growing power comes growing responsibility. At some point, and a lot of our critics think we have already passed it, those problems become ours, too. Kudos to people like Salesforce’s Marc Benioff, who says “But we cannot delegate these complex problems off to the government and say, “We’re not all part of it,”” for beginning to tackle them.

Let’s hope he’s only among the first. And let’s hope we find a way for technology to help with the overarching problem of incompetent and/or malevolent governments, while we’re at it.


Source: TechCrunch

Elon Musk Digs Chicago, Byton's Tesla-Fighter, and More Car News This Week

Plus: Volvo gets some lidar, Seattle’s high-tech tunnel, and Boeing tries to make the future of flight a lot more fun.
Source: Wired

Trump's Meeting With Kim Jong-Un Tops This Week's Internet News Roundup

Last week, social media was awash in commentary about the historic meeting between the US president and the North Korean leader.
Source: Wired

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