Salesforce.com on Microsoft: “They hate everybody”

Salesforce.com’s strategy can be boiled down to one word, according to chief executive Marc Benioff — love. Of course, Benioff was being a little tongue-in-cheek as he answered questions from analysts and reporters at today’s Dreamforce conference in San Francisco. But he was illustrating a real argument about how Salesforce.com might beat software giant Microsoft in the cloud computing market.

As with its other offerings, Microsoft’s new cloud-computing application platform, Windows Azure, is all about tying people into Microsoft products and services, Benioff said. Salesforce, on the other hand, is much more about being open and cooperative, both in its customer relationship management (CRM) services, and in Force.com, its platform for business applications. Salesforce is interested in connecting multiple clouds, platforms and devices — witness today’s announcement that Force.com will integrate with the Facebook platform and Amazon Web Services, or Salesforce’s integration of Google Apps earlier this year.

Comparing Microsoft and Salesforce, Benioff said: “They hate everybody and we love everybody, and that’s pretty much the difference. We even love Microsoft. … This is our core strategy, love.”

When an audience member pressed Benioff on his touted openness, Benioff emphasized that he’s talking about cooperation with other companies, not open source, per se. He also acknowledged that Force.com has its closed aspects, namely the fact that if you build an application on Force.com, you can connect it to other platforms, but you can’t fully move it to another cloud.

“Portability of code is just not something we have gotten to in our industry,” Benioff said. He cited Apple’s App Store as a platform that’s closed to a certain extent (now that’s an understatement) but is thriving anyway.

Benioff also talked about why Salesforce is integrating with Facebook first, rather than another networking site, particularly business-oriented network LinkedIn. Force.com plans to add LinkedIn and MySpace integration eventually, but Facebook’s users and platform infrastructure made it an obvious first choice.

Lastly, Benioff took some questions about how Salesforce will be responding to the declining economy. The common theme: We’re going to stick to our game plan. For example, Oracle chief executive Larry Ellison has said the downturn presents an opportunity to acquire companies at bargain rates, but Benioff said he has no plans to change Salesforce’s acquisition strategy. Another questioner pointed out that some of the vendors who sell apps to extend Salesforce’s capabilities will go out of business in the downturn, which could be bad for Salesforce’s customers. Benioff responded that Salesforce has always tried to provide “bridges” for its customers, so they aren’t hurt when a vendor goes out of business.

“The way I think about this is very very simple,” he said. “We don’t want to make a lot of material changes to our business right now.”

Next Story:
Previous Story:

Tags: ,

Photo of Anthony Ha

About the Author, Anthony Ha

Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.

  • Love vs. hate makes for a good headline and perhaps it creates a useful image for Benioff but the simple fact that they have put so much emphasis on opening up their core CRM platform for other developers to add functions is a great strategy no matter how you label it.
  • Gee, you make it sound like "makes for a good headline" is a bad thing! But I agree with your point about Salesforce.
  • Oh please! Why on earth is Benioff dragging Microsoft into this? If he really was all about love surely it wouldn't be necessary to slag off Microsoft to make his point?
  • Well, as I note in the post was meant to be tongue-in-cheek. And of course Benioff really meant "We're willing to work with anybody, even Microsoft." Not sure if that's true, but that's the message he was trying to get across.
  • Jason
    Here's an awesome addition to this article:
    http://blogs.zoho.com/uncategorized/mr-benioff-...
  • I thought it was pretty interesting too; I'll be including a link in tonight's news roundup.
  • Hanu Kommalapati
    One has to differentiate between application portability (design time) and runtime interoperability. Every cloud is proprietary in nature to some extent from the application portability perspective. Once you go with a service provider like Salesforce, Google, Amazon or Microsoft, you are locked into a Cloud platform. This is similar to SAP, Orcale and Microsoft business applications on-premise. In order for the design time portability to be a reality, lot of work needs to be done in the standards so that if you don't like a service provider, you can extract your package of data and application and take it somewhere else. I am not sure if that will happen any time soon. Even Mr. Benioff admits that it is still a weakness with Salfesforce platform.
    If you look at the runtime interoperability, it is the critical success factor to the very survival of any cloud platform. Considering the heterogeneity of the cloud consumers, run time interoperability limitations will only be detrimental to the provider and am sure even Microsoft is aware of that. Azure Services platform seems to be more comprehensive set of platform capabilities that can seamlessly interoperate with either on-premise systems or in-the-cloud systems. Who can argue with the runtime interoperability of REST and SOAP based layer surrounding Azure platform. For the foreseeable future, we have to live with on-premise systems be it Microsoft or otherwise. Whoever offers a comprehensive platform that will take into account the pure cloud based interoperability combined with organic coexistence of the on-premise systems, will make the transition painless and should be your friend!
    So, Microsoft doesn’t have everyone as Mr. Benioff suggests; they love everyone by offering the most flexible and extensible cloud platform that can interoperate with other cloud and on-premise systems through web services. Azure offers broad language and development tool choices (VB, C#, Java, Ruby, PHP, Python, Ecliplise, ...) than Salesforce.
    if Mr. Benioff suggests that Salesforce is more open than Microsoft Azure Services platform, he is merely trying to pull the wool over everybody’s eyes.
  • John Mullinax
    It's nice to see Salesforce opening more interoperability options, but let's not confuse ourselves here: Microsoft's Windows Azure platform became the instant leader in interoperability and "openness of cloud" when it was announed a couple weeks back.

    Windows Azure will interoperate with virtually anything -- on premise or in off, including any other cloud that talks http, which I think is all of them. In fact, that's part of the point of what Microsoft calls "software-plus-services". Take the best of the cloud and the best of on-premise software (including all kinds of edge devices), enable new experiences, and give people choices and flexibility about where different bits should run. Choices that can be changed as circumtances change.

    Microsoft did this, in part, by embracing web standards and even multiple design time development platforms in a way that other cloud vendors don't match -- which probably surprised a few folks. Shows the impact Ray Ozzie is having at Microsoft.
  • edhardy622
    UGGs became ubiquitous among Southern California surfers and Southern California downhill skiers, and from there, Uggs, which name comes from the Australian
    http://www.uggboots365.co.uk
  • kafhfk

    Just wanted to say great job with the blog, today is my first visit here and I’ve enjoyed reading your posts so far
    Uggs

blog comments powered by Disqus