1. Liz Herbert, Vice President, Principal Analyst
WEBINAR Dreamforce 2016 Recap: What Customers And Prospects Should Know
Liz Herbert, Vice President, Principal Analyst
Mark Bartrick, Principal Consultant
Year ends imminent.
October 13, Call in at 10:55 a.m. Eastern time

2. Liz Herbert
Vice President, Principal Analyst
Liz focuses on the IT services industry, helping clients to navigate this fast- changing market and maximize the business value of their technology investments. As a principal analyst, Liz helps clients to understand the key dynamics in the enterprise application services market and to make smart technology sourcing decisions. Specific topics of focus include SaaS, SAP and Oracle Services, and services for cloud and mobile. Liz has been a featured speaker at leading industry events such as SaaScon, Nasscom, Society of Information Managers, and World BPO Forum. Liz has been quoted in leading publications including The Wall Street Journal, Fortune, The New York Times, and CIO Magazine. Liz has been featured as a technology expert on TV news segments, including Bloomberg TV and Boston-based NECN. She was named IIAR Services analyst of the year in 2010.

3. Mark Bartrick
Principal Consultant, Software Negotiation
Mark is a principal consultant for Forrester’s software negotiation practice. Prior to helping develop the software negotiation practice, he served as a senior analyst for sourcing and vendor management clients at Forrester. Mark has been involved in the software industry for over 25 years. He started off selling for IBM in 1986, then joined Gartner in 1998 to help its clients negotiate software contracts. Mark left Gartner in 2002 and set up his own consultancy in the UK, specializing in helping blue chip businesses negotiate software contracts with the likes of IBM, Oracle, SAP, and Microsoft. Mark joined Forrester in December Mark holds a Bachelor of Arts Honors degree in Business Studies from the University of West Midlands, United Kingdom.

4. Agenda
Dreamforce Recap
Forrester’s Take
Impact To Current And Future Customers
Q&A

5. Poll question No. 1 Did you go to Dreamforce 2016? Yes, first time
Yes, and not my first time
No, but attended virtually
No, have not been yet

6. Dreamforce 2016 highlights

7. No signs of slowdown for Salesforce
Salesforce continues its dominance as a SaaS behemoth; now over $8B in revenue (FY17).
Salesforce expansion continues into broader CRM for B2B and B2C, including the June acquisition of Demandware (Commerce solution) for $2.7B and the August acquisition of Quip (productivity/processing app) for $750M.
New acquisition announced at Dreamforce is Krux — marketing analytics/intelligence solution.
Salesforce ecosystem remains vibrant — across long- tail of apps and industry solutions.

8. Dreamforce 2016 highlights
Product
The promise
AI for everyone, built right into the Salesforce product
Industry solutions from Salesforce
Learning for everyone — online and onsite
Commerce in the cloud, with an emphasis on B2C
Salesforce is relentless in its pursuit of great user experience.
Financial services cloud

9. Poll question No. 2
Are you seriously considering or actively using any of the following solutions from Salesforce at this point in time?
Einstein
Analytics Cloud (Wave)
Thunder/IoT on Salesforce
Health Cloud
Financial Services Cloud
Community Cloud

10. Forrester’s take

11. Dreamforce 2016: Our take
Sales and service adoption remain high and are still the flagship for Salesforce.
Salesforce continues to invest in the elements necessary for enterprise-grade software: security, developer tools, training, and education.
Industry solutions are gaining early traction with mega brands (such as BoA for Financial Services Cloud and Lilly for Healthcare Cloud).
Newer areas focused on AI and analytics align with buyer needs but are unproven.
Ecosystems — industry and otherwise — are key.

12. What it means to current and future customers

13. 1. Sales and Service Cloud remain the lion’s share of the spend
Sales and Service Cloud still represent large portion of Salesforce revenues.
Deals are growing; most grow year-over-year.
Global, enterprisewide deals
Recent product shift has been a significant shift — product lines for Service Cloud now diverge from Sales Cloud.
What it means: Price/discount and deal structure for Sales and Service Cloud will have the biggest impact on your overall deal health.

14. 2. Newer CRM clouds are small but growing
Marketing Cloud is 10% of Salesforce revenues — and growing.
Commerce Cloud has great reputation in B2C companies and potential appeal to B2B as well.
After multiple versions of “Portals,” Community Cloud looks here to stay.
What it means: Pricing is still a bit in flux. Multiple platforms dilute the “one-version” value proposition (for now). Salesforce customers have more design choices to make, which adds to complexity.

15. 3. Services providers are more necessary than ever
Major skills shortage in Salesforce talent versus demand
Customers need business/strategy consulting and change management help.
Not just a one-time project — but ongoing, agile rollout
What it means: Deals are growing; deal structures are tricky to navigate (i.e., buying sprints rather than resources); risk mitigation is critical. Market shakeout as smaller firms are too attractive for large firms to pass up — even at high multiples.

16. Salesforce implementation providers 2015
Will be updated in H1 2017

17. What’s next

18. Salesforce: What’s next
Despite existing success stories, few Salesforce customers have unlocked its potential as a digital platform for customer engagement and foundation for new business models.
Business value is perceived as high, but high prices and eroding discounts create concerns for buyers.
We see increasing pressures from Oracle, SAP, Microsoft, and others — but Salesforce remains a formidable behemoth to negotiate with.

19. What’s next: Salesforce as platform for digital ecosystems

20. Poll question No. 3 What concerns you most about Salesforce? Security
Integration
Cost/pricing
Resourcing/support needs
Other _____________

21. Trending topics for Salesforce customers
Integration
Support and governance
Multiple orgs
Ecosystem — ISVs and services partners
Negotiation/renewals with significant dollars at stake

22. Q&A

23. Liz Herbert
Mark Bartrick