It is pushing ahead with its transformation from application provider to platform provider and adding functionality that will appeal to large enterprises.
Although Winter 07 comes with new and improved functionality enabled through its Ajax and Web 2.0 underpinnings, the most important aspect is the Apex programming capability. The most important innovation is the Apex code, said COO Phil Robinson, programmers will be able to write applications [for the Salesforce platform] for the first time.
Although the Apex platform has been available for a year, manifested through the AppExchange, the type of SaaS applications that could be made available was limited. Robinson said the lack of a programming component meant it was not possible to offer applications that required a programmable interface such as transactional or heavy-duty computational applications. The Apex programming language is designed to plug the gap, enabling developers to offer transactional applications such as ERP with advanced planning algorithms or e-commerce programs, as well as computationally intensive applications like financial modeling, or complex workflow for business process support.
SaaS competitor NetSuite Inc has criticized Salesforce.com for its lack of transactional capability. Its imminent arrival will put pressure on NetSuite which has had a clear advantage as the only vendor to support ERP transactions in an on-demand environment.
However, end users will have to wait before they use the fruits of the Apex code capability because Salesforce.com is only making a pre-beta preview version available to developers at the moment. A formal beta programme is on its way, with the final release due some time this year. Robinson said the company had not promised to release Apex programming at the same time at Winter 07. Developers can access the Apex code and share ideas via the Salesforce.com developer network or IdeaExchange, as part of the company’s mission to involve the developer community in the creation and evolution as of its offerings.
The Apex programming facility opens up new avenues for Salesforce.com. It adds a crucial component to the Salesforce.com infrastructure enabling it to be viewed more seriously as a platform into which different types of applications can be plugged. It also opens up the way for transactional applications and for vertical applications, most of which will be provided by partners. CEO Marc Benioff is quoted as saying he wants the killer application on the Salesforce platform to come from outside the company. The underlying business model is simple: each time a customer buys into the expanding range of available applications, it also generates subscription revenue for Salesforce.com.
The new capabilities enabled through Apex programming are also designed to increase Salesforce.com’s appeal to large enterprises even though the company says it has a lot of traction in the enterprise market today and has a business model based on an even split between SMEs and large enterprises. We punch above our weight [in the large enterprise market], said Robinson.
The company has reportedly just signed up Dell Computers, to the tune of 15,000 users. Robinson believes CIOs can see Salesforce.com as a strategic player, able to offer not just salesforce automation but different types of applications plus the ability to interact with third-party applications.
The contrast between the two sides of the company is becoming more distinct with every advance. On one side, it is offering what could be described as packaged SaaS applications for SMEs, while on the other, its platform developments represent a big play for large enterprises requiring tailored solutions.
