Salesforce.com Senior VP: Next Cloud Opportunity Is Channel-Driven

Salesforce.com (NYSE: CRM) Senior VP Ron Huddleston says ISVs (independent software vendors) have been the big cloud partner ecosystem winners to date. But Huddleston, speaking at Cloud Channel Summit, predicts that the next big cloud opportunity involves channel partners who can integrate multiple cloud apps into a single user experience.

On-premise was about winning the deal, while cloud is about winning the user, he added. "We can't execute on our visions without our partners," said Huddleston. "That's why our ISV partner ecosystem will remain so important." But, he said, VARs and more traditional channel partners will also become increasingly important.

But what will customers want from cloud services providers and app providers? He noted that Pandora is a poster child for where the market is heading. First Pandora shifted entirely to the cloud and freed up half of its IT staff. Next, the company is integrating all of its back-end services for a great end-user experience. Somewhat similarly, Salesforce.com is hearing demand for Connected Customers, Connected Partners, Connected Employees -- and integration between all those areas. The channel, in turn, will deliver integrated experiences involving single sign-on, shared data across apps, social feed, mobile UI and upgrades.

"A third-party is incredibly well positioned to deliver on the vision" of integrated apps from multiple providers, he predicted.

The six characteristics of a great solution that provides value-add and a great end-user experience:

  • Collaboration
  • Mobility
  • Social UX (does your app prompt people to engage)
  • Network Effects (is your app more powerful as more people use it)?
  • Innovation: Are you transforming your niche?
  • Interoperability: Do you connect with other apps easily?
What are the give steps of building a successful cloud channel? He said:
  • Build an organization born for the cloud
  • Focus on customer and partner success
  • Ensure transparent cloud economics
  • Be the market maker
  • Develop a team of evangelists
He stressed again and again that cloud success involves a long-term mentality rather than a near-term profit motive. In the cloud, partners evolve from system integrator to VAR to ISV. It's a natural evolution, he said.

Discuss this Article 6

Dan Lammot (not verified)
on Nov 6, 2012

Joe - well said. I would like to add that in my opinion, much of what Salesforce.com has enabled is focused on horizontal ISV apps or "utility applications" that can be used by existing Salesforce.com customers. While this is a great market to tap into - especially for small lean startups - a much greater opportunity exists to capitalize on a deeper strategy that combines ISV with Industry Vertical (as opposed to horizontal).

Salesforce.com ecosystem companies that build apps that focus on the "connected" system you refer to above by delivering specific solutions/capabilities that solve real, complex business problems within targeted industries will 1) make their own markets and therefore greatly expand the number of organizations that can/will buy their solutions - meaning, the prospect pool is not limited only to existing Salesforce.com customers, and 2) outpace legacy non-cloud competitors that are shackled by old-tech and old-revenue models.

This opportunity is much sweeter for both Salesforce.com and the ISVs. As Salesforce.com wakes up to this opportunity by better supporting verticalization within industries, they'll feel the upswing in customer numbers the same way they did in 2004-2005 when they and their partner community (most notably OKERE which was later purchased by Fujitsu) built the Financial Services vertical at Salesforce.com that resulted in hundreds of banks around the world (from Merrill Lynch to Barclays) adopting Salesforce.com.

Joe Panettieri (not verified)
on Nov 7, 2012

Dan: Thanks for taking the time to post some great perspectives. Can you disclose for whom you work? Are you a Salesforce.com partner? Thanks for stopping by and for reading Talkin' Cloud.
-jp

Dan Lammot (not verified)
on Nov 7, 2012

Hi Joe - great to be here and my compliments to you as well. I am co-founder of a nonprofit ISV and consulting partner of Salesforce named roundCorner (www.roundcorner.com). We focus exclusively on the nonprofit market with the Salesforce.com foundation. I was also co-founder of OKERE which was Salesforce.com's largest partner from 2004-2007 where we focused on the financial services industry and brought clients like Merrill, Citi, Barclays and about 50 other banks to Salesforce.com.

Joe Panettieri
on Nov 30, 2012

Dan: Sorry for my super-belated reply. I appreciate your readership. Your focus on Salesforce.com consulting has caught my ear. Congrats on that client list. Please tell me more. My email is:

joe.panettieri [at] penton.com.

Best
-jp

danbennett
on Mar 20, 2013

Hi Dan,

We're finding great opportunities as a Salesforce.com ISV providing a comprehensive Field Service Management solution as a native Force.com app (just as you've described.)

Salesforce has realized our potential to make markets in manufacturing, medical devices, and other asset management and field service centric verticals. Similarly, we're feeling the significant benefits of being a trusted partner and recommended provider within their ecosystem.

Check us out at www.servicemax.com to see what our customers are saying. Or, check take a look at last week's article in the WSJ: http://online.wsj.com/article/SB1000142412788732403480457835085259086519...

The solution is scalable and supports everyone from SMB customers like:
AVI SPL, Litepoint, Alimak Hak, Domino Printing, Pacific Biosciences

To Enterprises including:
Dupont, Coca-Cola Enterprises, Electrolux, and Pentair.

Joe Panettieri
on Mar 29, 2013

Hey Dan: Thank you for offering those links. Please keep me posted as you make more moves.
-jp

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