Friday, August 20, 2010

Salesforce

from the recent conference call, transcript by Seeking Alpha:

>>Next, we’re proceeding with the build out of three new data centers. In the US, we expect to bring new data centers online in the Mid West and East Coast this year, and then we plan to open up our Japan, Tokyo data center next year.

...

Marc Benioff

Well, Kash I’m very bullish on cloud computing and real cloud computing which is the kind of very efficient model that Salesforce.com has been able to deliver us. I mentioned in my script, we have about 3,000 servers and that includes 1,500 that are just standing by in case there is a disaster.

You have to kind of ask yourself, if Salesforce.com did not exist for the 82,000 customers that we have and the couple of 100,000 apps that they are running in on our servers, how many servers would they need? You can quickly determine that we are operating at a level of efficiency that’s probably a few percentage points of what they would have had to buy.

That’s why, I think, cloud computing is so exciting to customers because certainly for our customers it’s a CapEx free environment, they are not buying hardware, they are not buying the kind of traditional capital expenditures necessary and taking on the risk to deliver automation into their companies. I think that’s a big juxtaposition against kind of my bullishness, and I love John Chambers I think he is probably one of the really greatest CEOs in our industry, but here company is all about CapEx.


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