Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Cloud computing's billion dollar success

Ross O. Storey | Feb. 27, 2009
Salesforce.com warns Microsoft against killing its own children'

Lindsey Armstrong, Salesforce.com's executive vice president for international enterprise sales

SINGAPORE, 27 FEBRUARY 2009 --The Asia Pacific is now the fastest-growing region for Salesforce.com which this week announced that it had become the world's very first billion dollar enterprise cloud computing company.

For the full fiscal year 2009, the company which has the slogan Success, not Software' -  reported overall revenue of about US$1.077 billion, an increase of 44 per cent from the previous year.

While other software companies are struggling with banking crisis pain, Salesforce.com announced that subscription and support revenues were $984.6 million for the year, an increase of 45 per cent, while professional services revenue rose 35 per cent to $92.2 million.

In Singapore for a company annual sales kick off', Lindsey Armstrong, Salesforce.com's executive vice president for international enterprise sales, said that cloud computing was now mainstream.

For the first time, consumer-led technologies are influencing strongly what goes on in the enterprise, Armstrong said. Cloud computing has been mainstream for years, it just hasn't been in the enterprise consciousness as much as for consumers and it's been a very difficult flip for a lot of vendors to take, because most of the mainstream vendors are not used to being led by consumers.

Microsoft's great validation'

With Microsoft having recently announced that its cloud platform Azure' would likely go live this year, Armstrong said that Any time a known monopolist enters the market place you should sit up and take notice but, firstly it's a great validation.

When Microsoft, a known follower rather than a leader in most things Internet-related, you can be pretty sure cloud computing is mainstream now, when they've been dragged kicking and screaming to the market, she said.  

Microsoft is a very powerful company with large marketing (resources) and they've done a pretty good job of marketing cloud computing for Salesforce, and I think that's been very helpful to us.

Any of these big companies, not just Microsoft, in this economy, where your survival depends on you cannibalizing a known and strong revenue stream, it's a very difficult economic decision you are trying to make. I think it's an invidious position and there's no good answer for those companies, whether you're Oracle, SAP or Microsoft.

Armstrong said she believed that Salesforce's real competition' was going to be pure-play' (cloud computing) companies, that don't even exist yet.

I think these (current) hybrid companies will find that as long as this economy is uncertain in any way, it's very hard to kill your own children' and that's what these guys are being asked to do (by entering cloud computing).

 

1  2  Next Page 

Sign up for MIS Asia eNewsletters.