Most people recognize Salesforce (formerly salesforce.com) as one of the world’s most valuable technology companies, but few understand what it does. Salesforce provides customer relationship management (CRM) software: tools that help businesses track potential customers, manage relationships, and forecast sales. In Behind the Cloud (2009), Salesforce founder Marc Benioff explains how his company pioneered the “Software-as-a-Service” (SaaS) model in the 1990s, transforming business software from tools that took months to install into simple web-based platforms that were accessible from anywhere, automatically updated, and priced affordably. This vision created an entirely new industry worth over $150 billion today.
Benioff brought both technical expertise and sales experience to the challenge of reimagining enterprise...
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When Benioff and his cofounders launched Salesforce in 1999, they didn’t set out to just build another software company: They wanted to challenge fundamental assumptions about how enterprise software—the software used by large organizations—should work for the businesses buying and using it. Benioff and Adler explain that this required innovations in technology, business, and customer relationships that would reshape the entire industry.
Benioff’s vision for Salesforce grew from years of watching customers struggle with Oracle’s traditional software model. During his 13 years at Oracle, where he rose to become the youngest vice president in company history by age 27, Benioff witnessed the limitations and frustrations of how enterprise software was delivered to businesses. In 1996, feeling professionally successful but personally unfulfilled, Benioff took a sabbatical to gain perspective. During this period of reflection, while he was swimming with dolphins in Hawaii, the inspiration for what would become Salesforce crystallized in Benioff’s mind.
Oracle and Benioff’s Mentor, Larry Ellison
Oracle was founded...
After establishing the technical foundation that made SaaS possible, Benioff and his cofounders faced an equally challenging problem: How would they convince an entire industry to abandon its familiar approaches for something radically different? Benioff and Adler explain that the choice to present Salesforce as revolutionary wasn’t just marketing bravado—it was strategic. In this section, we’ll explore why the authors believe that more moderate messaging would have failed and how Salesforce’s approach was essential for its success.
When Benioff and his cofounders launched Salesforce, they faced a critical choice: They could market themselves as offering better software or as representing something entirely new. They chose the more radical path, declaring Salesforce the herald of “the end of software.” If Salesforce had presented itself as “better CRM software,” customers would have compared it to existing solutions using familiar criteria: features, customization options, and enterprise-grade capabilities. On these traditional measures, Salesforce’s early web-based application couldn’t match the sophisticated...
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Salesforce’s revolutionary messaging had created the conceptual framework for success, but messaging alone doesn’t build sustainable businesses. By 2002, the company had survived the dot-com crash and proven that customers valued its approach. But surviving the crisis was only the beginning—the real challenge was scaling from a scrappy startup to the industry giant that could fulfill its promise of transforming enterprise software. Benioff and Adler explain that Salesforce accomplished this through customer-driven approaches to growth strategies and systematic methods for maintaining its culture while expanding globally.
First, Benioff and Adler explain that Salesforce grew by converting users into active advocates who would promote Salesforce within their organizations and to their professional networks. The company made the unconventional choice to market directly to end users—sales, marketing, and customer support professionals—rather than to the executives who typically controlled software budgets. As Salesforce expertise became a valued skill in the job market, employers began seeking candidates with platform...
Benioff and Adler explain that building a revolutionary company requires three strategies: creating fundamental innovation that changes the game, positioning yourself as herald of a new era rather than just another option, and turning customers into evangelists who drive your growth.
Identify something in your industry or field that works poorly for most people but is accepted as “just how things are done.” How could better technology, a better business model, or a different approach make this dramatically simpler or more accessible?
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