Dreamforce ‘08 Session Notes: Saas Key Metrics (according to Bessemer)

Philippe Botteri - investment analyst at BVP, ex-McK guy, talking about financial modeling for Saas startups

5 c’s of Saas:

  • CMRR (committed monthly recurring ration) - Bessemer-designed metric, equals GAAP revenue plus contracts signed but not yet recognized (b/c not yet implemented)
  • churn - 1% per month is considered good
  • cash - about $60-$126 million in pre-IPO capital required (SFDC and Netsuite, respectively), but he sees it going down because of cloud
  • CAC (customer acquisition cost)
  • CLTV ratio (customer lifetime value)

Note: these notes omit Philippe’s technical discussion of how to build the financial model using these 5 metrics; email them to get the PPT deck

Discounts cash flows at 15% for Saas companies.

Dreamforce ‘08: Org Merge Breakout Notes

These are just my rough notes from a Dreamforce ‘08 session about merging orgs.

Note: his deck will be posted on successforce.com

Alternative approach: Salesforce-to-Salesforce (interesting idea!), but you can only share a few standard objects (Cases, Ops, Prods are NOT shareable this way)

Four steps to org merge:

  1. System Review Process — what does the “goal org” look like, what is the test plan
  2. Process Review Process — know what was configured and why (strongly agree –MWG)
  3. Data Considerations — map out what the data is, rules for merging data, create a data map
  4. Migration Strategy — who is involved, deadlines, sign off from project sponsors

Make backups using SFDC data export tool, or data loader

Holly: set expectations, go slowly

3rd party tools:

  1. Paul: “DBM for Force” - like an ODBC driver
  2. Holly: “Demand Tools” from CRM Fusion
  3. Moderator: “Snapshot”
  4. Presenter: “Monarch”

Q: Can you downgrade from UE to EE without a migration? Can SFDC just flip a switch? A: No, b/c of differences in limits, e.g., how do we know which of the custom fields to kill if UE org exceeds the limit imposed on EE org?

Q: How does SFDC professional services do it? Do they really do it all with spreadsheets? A: Yes, spreadsheets are used. There’s no silver bullet.

Holly: don’t forget about user level settings vs. global settings

“Courtesy licenses” — they will do this during the period of overlap if you present a reasonable project plan

How to deal with user ids:

  1. Put “x” in front of old login (e.g., xmike@mwgaa.com).
  2. Set up new org with courtesy lics re-using the real addresses

Use this grid when going EE to UE etc: app setup limits

Selenium IDE script to set up a new Salesforce DE org

You still have to read the captcha graphic and press the submit button yourself, but all the other fields are filled in for you. Instructions are below the code for those new to the Selenium IDE Firefox plugin.

<?xml version=”1.0″ encoding=”UTF-8″?>
<!DOCTYPE html PUBLIC “-//W3C//DTD XHTML 1.0 Strict//EN” “http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd”>
<html xmlns=”http://www.w3.org/1999/xhtml” xml:lang=”en” lang=”en”>
<head profile=”http://selenium-ide.openqa.org/profiles/test-case”>
<meta http-equiv=”Content-Type” content=”text/html; charset=UTF-8″ />
<link rel=”selenium.base” href=”http://wiki.apexdevnet.com/events/workbook/registration.php” />
<title>NewDEFromScratch</title>
</head>
<body>
<table cellpadding=”1″ cellspacing=”1″ border=”1″>
<thead>
<tr><td colspan=”3″>NewDEFromScratch</td></tr>
</thead><tbody>
<tr>
<td>open</td>
<td>http://wiki.apexdevnet.com/events/workbook/registration.php</td>
<td></td>
</tr>
<tr>
<td>type</td>
<td>Name_First</td>
<td>Mike</td>
</tr>
<tr>
<td>type</td>
<td>Name_Last</td>
<td>Goelzer</td>
</tr>
<tr>
<td>type</td>
<td>Email</td>
<td>mike@mwgaa.com</td>
</tr>
<tr>
<td>type</td>
<td>Phone</td>
<td>650-329-8500</td>
</tr>
<tr>
<td>type</td>
<td>State</td>
<td>CA</td>
</tr>
<tr>
<td>type</td>
<td>PostalCode</td>
<td>94301</td>
</tr>
<tr>
<td>type</td>
<td>Organization</td>
<td>MWG & Associates LLC</td>
</tr>
<tr>
<td>select</td>
<td>platformInterest</td>
<td>Not Sure</td>
</tr>
<tr>
<td>select</td>
<td>developerJobRole</td>
<td>Administrator</td>
</tr>
<tr>
<td>select</td>
<td>developerInterest</td>
<td>Prospective Customer</td>
</tr>
<tr>
<td>store</td>
<td>javascript{ prompt(’Enter a new login (e.g., “mike22″)’) }</td>
<td>varLogin</td>
</tr>
<tr>
<td>type</td>
<td>userUsername</td>
<td>${varLogin}@mwgaa.com</td>
</tr>
<tr>
<td>click</td>
<td>userUsername</td>
<td></td>
</tr>
<tr>
<td>click</td>
<td>subscriptionAgreement</td>
<td></td>
</tr>
<tr>
<td>verifyChecked</td>
<td>subscriptionAgreement</td>
<td></td>
</tr>
<tr>
<td>click</td>
<td>CaptchaResponse</td>
<td></td>
</tr>

</tbody></table>
</body>
</html>

If you’ve never used Selenium before, here is what you do:

1. Save the code above to a file called NewDEFromScratch.html. Change the name and email to your own.
2. Install the Firefox extension “Selenium IDE” and restart the ‘fox.
3. Go to the menu Tools | Selenium IDE. The Selenium window will pop up next to the main browser.
4. Click File | Open… while the Selenium window is in the foreground. This matters because Selenium offers a bunch of extra items in the File menu only when it’s window is in active:

Selenium File Menu

5. Click the Run Test button: Selenium Run Button.
6. When the script finishes, manually type in the captcha graphic and click the submit button.

ADN’s Dreamforce within a Dreamforce

Things definitely got more interesting this afternoon when I headed upstairs to meet up with friend and former Stanford classmate Jim. He kindly gave me the Cliff’s Notes SparkNotes version of Benioff’s various announcements during the keynote. ZDNet has a good summary.

Then I wandered in to the Apex Developer Network area, which was like its own mini-conference, complete with (independent) sponsorship from Apple and Google, informal presentations, and a plentiful supply of test machines (iMacs, of course) that anyone could use to play with the new Visualforce interface technology unveiled this morning.


The ADN Mini ConferenceADN’s Conference within a ConferencePeople inside the ADN miniconference area

UPDATE: All pics are now on Flickr: www.flickr.com/mikegoelzer

Liveblogging Dreamforce 2007 (or, A Reluctant Blogger Returns to his Soapbox)


Dreamforce 2007

My attempt at liveblogging Dreamforce 2007 is off to a bit of a slow start. After a very, very late night of sketching out how I could make use of the super-cool Mono.Fuse library for the SDrive system, I arrived at the Moscone Center totally exhausted. I assumed that a cup of coffee would restore me to my normal state, but I had no such luck: as soon as I sat down on one of the couches to drink the coffee I dozed off for over an hour!

Sweet dreams at Dreamforce, I guess.

Here are some more pictures. (More substantive posts are coming up soon.)


Dreamforce 2007Dreamforce 2007Dreamforce 2007Dreamforce 2007Dreamforce 2007Dreamforce 2007Dreamforce 2007Dreamforce 2007Cheetah with her cubs

(OK, the last picture of the cheetah and her cubs is from my trip to South Africa, not Dreamforce. Just trying to keep you on your toes.)

My 15 minutes of fame on ideas.salesforce.com

Yesterday was the last day of an awesome Dreamforce 2006, and I’ve got about 3 half-written blog posts sitting on my laptop with some reactions to the conference. But I noticed something just now that I wanted to quickly mention, because I think this could be my life’s 15 minutes of fame.

ideas.salesforce.com is a Digg-like site that Salesforce unveiled a few days ago as a customer community product wishlist. Anyone can nominate a feature for development, and anyone else can second an existing idea. The ten ideas with the most votes appear on the ideas.salesforce.com homepage, and represent a kind of “short list” from which future development priorities are drawn.

So you can imagine how excited I was to log on this morning and notice a screenshot of my own company’s work on that homepage:

Better resizing of charts pic

See the pie chart and bar graph embedded within that standard Salesforce page? That’s part of an analytics module that we are building for Salesforce’s HR recruiting AppExchange package.

This little graph is actually a good illustration of how my company operates. An onshore senior developer (in this case me) created a rapid prototype of this graphing component for the recruiting application in an iterative, back-and-forth development process with the client (in this case Salesforce itself). Once they were happy with the functionality in this functional-but-raw prototype, we embedded it into their demo platform so that they could begin immediately using it for sales demos. Simultaneously, I handed a requirements spec based on the prototype to my team in Nepal for a ground-up rebuild and subsequent software lifecycle management. By the time the recruiting app goes live on the AppExchange in a few months, the rapid prototype will have been replaced with a more robust component that is suitable for real customer usage.

UPDATE (Oct 12, 12:05pm): In the time it took me to write this post, we dropped out of the top 10 on ideas.salesforce.com. Currently, we’re at number 12. But it really was in the top 10 when I started writing this, and once platform has field history tracking on custom objects I’ll be able to prove it to you. :-)

Dreamforce 2006

In about 20 minutes, I’ll be driving up to San Francisco for the kickoff of the annual Salesforce.com conference. It should be a great event, and I’m pleased that some of the work that my firm has developed will be featured at the conference.

It’s all very hush hush right now, but after the keynote tomorrow, I should be able to blog a little bit about some of the applications that we’ve worked on. A lot of our work for Salesforce makes use of some of the newer SFDC platform features.

People I’m looking to meet: other SFDC developers who are interested in leveraging offshore teams to build excellent solutions quickly. I think my firm is the only one in the world that has teams in Kathmandu, Nepal (north of India) who are already building applications on top of the 144 platform.

Uninterruptible Software Supply

Kathmandu is largely shut down today due to one of the frequent street protests staged by a local political party. Cars cannot move and the public transportation system is not functional.

But the machinery of the IT business is still humming.

After all, the power is still on, and radio ISPs are still operating. Because Kathmandu residents have gotten used to these shutdowns, most are prepared to work from home. Many have motor bikes that allow them to weave through traffic and navigate around the massive street demonstrations.

If this were America, I might make some cliche observation about how the Internet is changing the way we work, virtual offices, flex time, blah blah blah. But in a place like Nepal, these things take on much greater significance. Informational technology is a very small sector of the overall economy here, but it holds the distinction of being one of the few that is relatively immune to the strikes and curfews. In an economy that needs all the help it can get, that can only be a good thing.

Avenues Nepal: LAMP, Biscuit

I spent some time today with Avenues Nepal, a web development company in the Patan district of Kathmandu. They specialize in web PHP/MySQL websites, web design, ecommerce, search engine optimization and web marketing.

As with everyone I have met here, they were very hospitable and spoke English fluently. I also got to meet two of their web designers, who happened to be at the office and were hard at work on client projects.

Avenues has some prime real estate, across from Standard Chartered bank, if you ever want to visit. Afterwards, we went to the home of Anup, the Managing Director, which was a very nice place, and had some delicious biscuits.

Avenues Employees (without Mike)

One thing that I thought was notable about Avenues was that they focus primarily on open source technologies like the LAMP stack: Linux, Apache, MySQL and PHP. Most of the other shops I have met with here in Kathmandu focus primarily, or even exclusively, on Microsoft’s rival .NET platform. I have noticed that Indian outsourcers of all sizes are also fairly .NET centric.

That has been a surprising discovery for me. Nepal is one of the poorest countries in the world, and Microsoft’s development tools and platform are very expensive. One would expect open source tools to dominate in Nepal and India, but be less prevalent in the U.S. and Europe.

Why is that not the case? I believe that it is largely a function of the educational system. There is a booming business in private higher technical education here, as there is in India (and the United States, for that matter), with schools that seek to equip their graduates with specific marketable skills. Since demand from the big multinationals is mainly focused on Microsoft platform technologies, that’s what the schools teach.

How Sausage is Made

When I tell other Americans about my work managing software projects in Nepal, it seems to conjure up images of Buddhist monks working diligently inside mud and bamboo huts. Indeed, prior to traveling out here, I too had wondered what life was like at the other end of the VoIP chat.

These photos, all of which were taken with explicit permission of the company managers, show the insides of a few Nepali software shops. While these offices may lack the marble and mahogany opulence of a midtown Manhattan skyscraper, they are not really very different from the office space you might find in use at a small startup company in Silicon Valley. My overall conclusion: the inside of a software shop looks about the same here as it does back home.

Avenues Nepal at Work (Sausage Series)

Avenues Nepal at Work (Sausage Series)

Nepal Pic

 

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