15 Minutes
Cover of Behind the Cloud

Business · 19 min

Behind the Cloud

Marc Benioff & Carlye Adler · 2009

Who it's for

For entrepreneurs, tech leaders, and managers who want to learn how to create new market categories, scale innovative business models, and build purpose-driven companies.

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3 ideas to take with you

1

Business revolutions are born from the courage to turn expensive, inaccessible products into simple services delivered as a basic utility.

2

Trading multi-million-dollar contracts for monthly subscriptions forces a company to earn its customers' trust and satisfaction every single day.

3

The definitive leap from an application to a platform happens when third parties begin building and profiting on top of your infrastructure.

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Picking an established, much larger adversary draws the market spotlight and puts your innovation at the center of the industry debate.
An idea from Behind the Cloud, in the words of 15 Minutes

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The Hawaiian sabbatical and a new vision

In the late nineties, Marc Benioff held an enviable position as a senior vice president at the tech giant Oracle, working directly under Larry Ellison. Despite his astronomical compensation and corporate prestige, Benioff felt stagnant inside an archaic business model where enterprise software was sold in plastic boxes and on hard drives, requiring months of installation on expensive local servers and huge consulting teams just to handle minor maintenance.

To clear his head, Benioff took an extended sabbatical, traveling through India and settling in Hawaii, where he spent his mornings swimming with dolphins and reflecting on the future of computing. It was during this season of rest that his big epiphany emerged: if everyday consumers were already using the internet simply and intuitively to buy books on Amazon, why was enterprise software still so complex, expensive, and out of reach for most businesses?

The vision born there championed the definitive end of software installed on physical machines. Benioff imagined a model in which business applications would be delivered straight through a web browser like a basic public utility, just like electricity coming through a wall outlet or running water from a tap. That was the birth of the revolutionary concept that years later would be known around the world as cloud computing.

Born in a Telegraph Hill apartment

Back in San Francisco in 1999, Benioff assembled a lean, talented team of software developers led by Parker Harris, Dave Moellenhoff, and Frank Dominguez. Instead of leasing lavish corporate floors in the city's financial district, Salesforce started out in a modest rented apartment in the Telegraph Hill neighborhood, with computers resting on folding plastic tables and a casual atmosphere marked by Hawaiian shirts and dogs wandering freely.

The technical directive given to the co-founders was radical: the system had to be increíbly simple, attractive, and fast, throwing out the dense, hundred-page manuals that intimidated everyday business users. The goal was to build a customer relationship management tool that any retail salesperson could learn to use in a matter of minutes, with no specialized training required.

For small business owners everywhere, used to clunky management systems and frozen spreadsheets, this approach was a liberating revolution. Benioff and his team challenged the prevailing belief of the era that serious technology had to be ugly, difficult, and expensive, proving that the best innovation is the kind that simplifies the user's daily life.

Guerrilla marketing against Siebel

With an innovative product in hand but a tiny advertising budget compared to the established giants, Salesforce needed to grab the market's attention quickly and memorably. Benioff adopted a bold guerrilla marketing strategy, creating the iconic logo with the word "software" crossed out by a red circle-and-slash and adopting the defiant slogan that traditional software was dead.

The loudest stunt took place during the annual conference of Siebel Systems, the undisputed market leader dominating the enterprise sector at the time. Salesforce hired professional actors to stage a tongue-in-cheek protest right outside the convention center, carrying signs proclaiming the end of installed software and handing out flyers to executives arriving at the event.

The reaction from competitors and the trade press was immediate and explosive. The police were called in to contain the staged commotion, and the story made headlines in the country's leading business newspapers. By picking a giant rival as its public antagonist, the tiny startup put its brand right at the center of the global tech debate without spending millions on traditional television campaigns.

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About Marc Benioff & Carlye Adler

Marc Benioff is the chairman, CEO, and co-founder of Salesforce, a pioneer of cloud computing, and a globally recognized philanthropist known for championing the 1-1-1 model of integrated corporate philanthropy. Carlye Adler is a business journalist and bestselling co-author whose work has appeared in publications such as Fortune, Time, and Fast Company. Under Benioff's leadership, Salesforce grew into one of the largest enterprise technology companies on the planet.

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