Salesforce.com 2010 Annual Report Download - page 6

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software vendors, such as a comprehensive set of features and functionality and the ability to customize and integrate with other applications, while at the
same time reducing the risks and lowering the total costs associated with owning enterprise software. As a result, we believe the continued emergence of
cloud applications is bringing about a fundamental transformation in the enterprise software industry as businesses are offered the choice of replacing their
purchased software with subscriptions to a wide range of application services.
Cloud Platforms
We believe that cloud applications and their related success in the market are the most widely understood segment of enterprise cloud computing.
However, enterprise cloud computing also includes building applications on a cloud-based application development platform, also referred to as cloud
platforms.
Application developers use cloud platform technology to build both custom applications for individual businesses or vertical industries, and horizontal
applications to address standard business processes that can be sold to a broad range of potential customers. Application developers include corporate IT
departments that typically develop applications for a company's internal-use and independent software vendors ("ISVs") that develop applications to sell to
customers. Traditionally, these developers have needed to purchase, install, test and maintain complex software and hardware infrastructure to develop and
deliver their applications. This requirement resulted in more time and resources being spent maintaining infrastructure and less time and resources being
available to actually develop applications, with a resulting reduction in innovation and productivity levels.
Cloud platforms enable corporate IT developers and ISVs to leverage the benefits of a multi-tenant platform for developing new applications. Cloud
platforms allow developers to build applications using only a browser and an Internet connection, just as cloud applications allow users to use applications
through a browser. In addition, developers typically pay no upfront costs when building cloud applications, with costs only to be incurred at the point of
application deployment.
Our cloud platforms provide application developers access to new capabilities that can be built into their business applications. These platforms include
features popularized by social networking companies, such as profiles, status updates and feeds; and also the capability to extend applications for use on
mobile devices.
Our cloud platforms allow both IT departments and ISV developers to use several programming languages to build their applications. While there are
many benefits to a language natively associated with a cloud platform, developers are able to use the most popular programming languages on our cloud
platforms, such as Java and Ruby, to build their applications. Our cloud platforms support multiple languages to provide developers openness and choice.
Our Solution
Our CRM applications help companies better record, track, manage, analyze and share information regarding sales, customer service and support, and
marketing operations. In 2010 we introduced Salesforce Chatter, a private social network for businesses. Our Force.com cloud computing platform, which
was introduced in 2007, allows customers and partners to more extensively customize and integrate our applications or build entirely new cloud applications
beyond CRM without having to invest in new software, hardware and related infrastructure. These newly developed applications, which run on our
infrastructure, can then be used for internal operations or sold to third parties.
We also offer the AppExchange, an online directory for cloud applications, where customers can browse, test-drive and deploy applications from
salesforce.com and our partners.
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