Companies and the Clouds They Keep

Grazed from BusinessWeek. Author: Peter Burrows.

After co-founding Salesforce.com (CRM) in 1999, Marc Benioff spent years preaching the gospel of its radical new business model, cloud computing. The days of the hard sell are long gone, Benioff says. Just this month, the Salesforce chief executive officer played host to News Corp. (NWSA) Chairman Rupert Murdoch and Wal-Mart Stores (WMT) CEO Doug McMillon, who’d traveled to Silicon Valley to hear how Salesforce could help them cut costs and increase sales.

Murdoch and McMillon didn’t come just to hear about the customer-relationship-management software that’s Salesforce’s bread and butter. According to Benioff, they wanted to learn more about Salesforce’s cloud “platform,” a mélange of programming tools, data centers, and partnerships that let companies quickly and cheaply create cloud services of their own. “The world’s most important CEOs realize that their companies also need to become cloud platforms, and that’s why they’ve become so interested in our services,” says Benioff…

Salesforce is not alone in recognizing that the competition for cloud dominance is moving in this direction. Phase 1 was the “software as a service” craze, during which hundreds of companies followed Salesforce’s lead and rushed to create cheaper, easier-to-use online versions of traditional programs. Among the startups that rose to prominence are Workday (WDAY), which creates software for human resources departments, and Dropbox, which specializes in document storage…

Read more from the source @ http://www.businessweek.com/articles/2014-05-22/cloud-platform-race-salesforce-leads-amazon-microsoft-google