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Behind the Cloud

The Untold Story of How Salesforce.com Went from Idea to Billion-Dollar Company and Revolutionized an Industry

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23 minutes read | Text | 9 key ideas
From the humblest of beginnings, a revolution was born. In "Behind the Cloud," Marc Benioff unravels the extraordinary saga of Salesforce.com’s meteoric rise from a cramped apartment startup to a global juggernaut at the forefront of cloud computing. This isn't just a story of survival through the dot-com collapse; it's a masterclass in innovation and resilience. Benioff unveils the visionary strategies that transformed challenges into opportunities, fostered a culture of relentless creativity, and inspired a legion of loyal advocates. Whether you're a seasoned business leader or an aspiring entrepreneur, this narrative delivers a blueprint for navigating the tumultuous seas of modern industry, lighting the path to innovation-driven growth.

Categories

Business, Nonfiction, Biography, History, Leadership, Technology, Management, Entrepreneurship, Buisness, Computers

Content Type

Book

Binding

Hardcover

Year

2009

Publisher

Wiley-Blackwell

Language

English

ASIN

0470521163

ISBN

0470521163

ISBN13

9780470521168

File Download

PDF | EPUB

Behind the Cloud Plot Summary

Introduction

In today's rapidly evolving business landscape, true innovation often requires challenging the status quo and daring to reimagine what's possible. When conventional wisdom says "this is how things are done," the most successful entrepreneurs and leaders ask, "but what if there was a better way?" This revolutionary mindset isn't just about creating new products or services—it's about fundamentally rethinking business models, company culture, and how organizations can create value for customers, employees, and society. What separates companies that merely survive from those that truly thrive? How can entrepreneurs build organizations that disrupt industries while creating meaningful impact? The journey from scrappy startup to industry titan doesn't follow a predictable path, but certain principles can guide the way. Through revealing stories and hard-earned wisdom, we'll explore how challenging conventional thinking can lead to extraordinary results—showing that the most powerful innovations often come when we have the courage to question everything, even the most fundamental assumptions about how business should work.

Chapter 1: Define Your Vision and Values from the Start

The foundation of any successful company isn't just what it does, but why it exists and how it conducts itself. Having a clear vision provides direction when making countless decisions, while well-defined values serve as guardrails that keep an organization focused during rapid growth and inevitable challenges. Marc Benioff developed the vision for salesforce.com during a sabbatical in Hawaii. After ten years at Oracle, he was searching for meaning and took time off to recharge. Swimming with dolphins in the Hawaiian ocean and having deep conversations with friends about the future of technology helped crystalize his thinking. During this period of reflection, he envisioned a new way to deliver business software applications over the internet rather than through expensive, complex installations. This vision would eventually become known as "The End of Software." This transformative idea wasn't just about technology—it represented a fundamentally different relationship between software companies and their customers. While visiting India during his sabbatical, Benioff met with spiritual leader Ammachi, who introduced him to the concept that he didn't have to choose between doing business and doing good. This meeting sparked another core element of his vision: integrating philanthropy into the company's DNA from day one. When salesforce.com was founded in 1999, Benioff and his cofounders Parker Harris, Dave Moellenhoff, and Frank Dominguez established their values immediately. They wrote these guiding principles on a whiteboard: "Do it fast, simple, and right the first time (and did we mention fast?)." These seemingly straightforward values profoundly shaped the company's culture and approach to everything from product development to customer relationships. To formalize their vision and values, Benioff created a management process called V2MOM (Vision, Values, Methods, Obstacles, and Measures). The first salesforce.com V2MOM, scribbled on an American Express envelope, established the foundational vision: "Rapidly create a world-class Internet company/site for Sales Force Automation." The values included building a world-class organization, prioritizing time to market, and ensuring functionality and usability. Remember that defining your vision and values isn't a one-time exercise—it's an ongoing process that evolves as your company grows. Revisit and refine them regularly to ensure alignment across your organization. When everyone understands not just what they're doing but why they're doing it, magic happens: decisions become clearer, teams become more cohesive, and your company develops a distinct identity that resonates with customers and employees alike.

Chapter 2: Differentiate Through Bold Marketing Strategies

Standing out in a crowded marketplace requires more than just a great product—it demands marketing that captures attention, tells a compelling story, and clearly communicates what makes your offering different. Effective differentiation isn't about small incremental improvements; it's about boldly establishing a unique position that competitors can't easily replicate. When salesforce.com was preparing to launch, Benioff knew they needed to make a splash. Rather than holding a typical corporate event, they organized an extravagant launch party at San Francisco's Regency Theater featuring the B-52s, "the world's greatest party band." The venue was transformed into three levels: the lowest represented "enterprise software hell" with actors in cages playing captured enterprise salespeople screaming "Help, get me out!" and "Sign this million-dollar license agreement!" The middle floor was "limbo," and the top floor represented "heaven"—complete with light, a harp, and salesforce.com. This theatrical production cost about $600,000 but drew fifteen hundred attendees and generated invaluable press coverage. The most controversial and ultimately successful differentiation strategy was the "NO SOFTWARE" logo—the word SOFTWARE in a red circle with a line through it, reminiscent of Ghostbusters. Bruce Campbell, an experienced adman who had worked on Reagan's presidential campaign, created this logo, but almost everyone initially hated it. Critics argued it violated the cardinal rule of marketing by using a negative message and might alienate potential customers who were software companies. Despite these concerns, Benioff insisted on using it because it perfectly communicated their core differentiation—being fundamentally different from traditional software companies. Salesforce.com became known for guerrilla marketing tactics targeting competitors, particularly Siebel Systems. When Siebel held a user conference in San Francisco, salesforce.com hired actors to stage a mock protest outside the venue, waving "NO SOFTWARE" signs and chanting "The Internet is really neat... Software is obsolete!" They even hired fake TV crews to cover the "movement." The stunt drew Siebel executives out of the conference and attracted police, creating even more attention. Salesforce.com representatives approached everyone entering the conference and invited them to their launch party that evening. To implement similar differentiation strategies in your business, first identify what truly makes your offering unique. Don't be afraid to challenge industry conventions or take contrarian positions. Create a simple, memorable symbol or slogan that captures your differentiation. Ensure every customer touchpoint reinforces this differentiation consistently. And remember that bold marketing often generates controversy—but that controversy creates conversations, which is exactly what emerging companies need. For maximum impact, ensure everyone in your organization can clearly articulate what makes you different. At salesforce.com, they discovered employees in the same elevator gave different answers when asked what the company did. This led them to create laminated cards with key messaging points that every employee carried, turning the entire workforce into effective marketers who delivered a consistent message about the company's revolutionary approach.

Chapter 3: Create Products Customers Love by Listening

The most successful products aren't created in isolation by brilliant minds working behind closed doors—they emerge through ongoing dialogue with the people who will actually use them. By placing customers at the center of the product development process, companies can build solutions that address real needs rather than presumed ones. In salesforce.com's early days, Benioff invited friends and colleagues to their apartment office (which they called "the Laboratory") to test their prototype and provide feedback. Michelle Pohndorf Forbes, a family friend in sales, constantly reminded them to make the site easy to navigate with as few clicks as possible. Friends working at Cisco shared everything they hated about traditional enterprise software, guiding salesforce.com to design something that solved these pain points. The team didn't stop with informal feedback. They hired Usability Sciences in Texas to test their product and provide videos of people using the site. This revealed critical usability issues—for instance, they discovered their "create a new account" button was positioned on the right side of the screen where it disappeared on some monitors. Simply moving it to the left side, mirroring how people read, dramatically improved user experience. A pivotal moment in product evolution came from listening to a customer's seemingly impractical request. Marty Howard, Senior VP at Patient Care, called Benioff complaining that salesforce.com's tab labels didn't speak to his healthcare business: "I have 'hospitals'; I don't have 'accounts.' I have 'patients'; I don't have 'contacts.'" When Benioff suggested just thinking of hospitals as accounts and patients as contacts, Howard insisted the terminology mattered to his team. Initially reluctant, the team eventually realized they could allow every customer to customize tab names to fit their specific industry needs. Dave Moellenhoff spent a month creating this customization capability, which became an immediate hit. This evolved from renaming tabs to renaming fields, and eventually to creating entirely new custom objects. The feature that seemed ridiculous at first became revolutionary, allowing car services to track "drivers" and "vehicles," recruiters to manage "positions" and "candidates," and nonprofits to follow "causes" and "donors." To build products customers love, create multiple feedback channels including beta testing, user forums, and direct customer interviews. Watch how people actually use your product rather than just asking what they think. Look for patterns in customer requests rather than implementing one-off features. When you do implement changes based on feedback, close the loop by letting customers know their input made a difference. Remember that the most valuable insights often come from your most frustrated customers. When someone takes the time to complain, they're actually giving you a gift—a roadmap to making your product better. Your ability to listen and respond intelligently to this feedback will ultimately determine whether your product becomes merely adequate or truly beloved.

Chapter 4: Build a Culture of Continuous Innovation

Innovation isn't a one-time event or the responsibility of a single department—it's an ongoing process that must be woven into the fabric of an organization. Creating an environment where new ideas can flourish requires intentional cultural practices that encourage experimentation, learning, and adaptation. Salesforce.com developed a unique approach to innovation they called "intelligent reaction"—an organic learning process where product development was guided by observing how customers actually used their service. While traditional software companies typically operated on three-year development cycles, salesforce.com released updates every ninety days with minor improvements weekly. This rapid iteration allowed them to get immediate market feedback and make continuous adjustments rather than betting everything on massive releases that might miss the mark. The company's evolution from an application to a platform exemplifies this approach. They didn't start with a grand plan to build a comprehensive platform; instead, they followed where customer needs and usage patterns led them. As users increasingly requested customization options, salesforce.com gradually expanded capabilities from renaming tabs to creating entirely new objects and workflows. Eventually, this led to Force.com, their Platform-as-a-Service offering that allows developers to build custom applications on their infrastructure. To harness the collective intelligence of their customer community, salesforce.com created IdeaExchange, a platform where users could submit, vote on, and discuss product improvement ideas. Jamie Grenney, their Ideas product manager, described it as "a global focus group that never sleeps." Since launch, they've received eleven thousand ideas, 257,000 votes, and twenty-six thousand comments. This system became their "secret weapon for innovation" by revealing which features were most desired by their community. The power of this approach was demonstrated when Michael Dell, after discussing IdeaExchange with Benioff, implemented a similar system called IdeaStorm at Dell. Within days of launch, users suggested Dell sell computers with Linux preinstalled. Tens of thousands of users agreed, and three months later, Dell released several consumer notebooks and desktops with Linux preinstalled. This direct customer feedback led to revenue within months. To foster innovation in your organization, create accessible channels for customers and employees to submit ideas. Establish transparent systems for evaluating and implementing those ideas. Emphasize rapid prototyping and testing rather than perfect execution. Build cross-functional teams that bring diverse perspectives to problem-solving. Most importantly, recognize that innovation often comes from unexpected places—sometimes your best ideas will emerge from customers using your product in ways you never anticipated. Remember that continuous innovation requires both structure and freedom. Too much structure stifles creativity, while too little leads to chaos. The art lies in creating frameworks that channel innovation toward meaningful business outcomes while giving people the autonomy to experiment and iterate their way to breakthrough solutions.

Chapter 5: Leverage Philanthropy as a Business Strategy

Corporate philanthropy is often viewed as something companies do after they've become successful—a way to give back once profits are secure. However, integrating philanthropy into a company's core business model from the beginning can create a powerful engine that drives success while simultaneously making a meaningful social impact. Salesforce.com pioneered an innovative approach called the "1-1-1 model" that was established on day one of the company's existence. This model dedicates 1% of the company's equity, 1% of employee time, and 1% of product to philanthropic causes. The foundation was filed as a 501(c)(3) public charity simultaneously with the incorporation of the company. Unlike traditional corporate foundations that often operate separately from the business, salesforce.com's foundation was designed to be a fundamental part of the company's identity and operations. The equity component was inspired by eBay, which had endowed its foundation with $1 million of corporate stock before its IPO. When salesforce.com went public in 2004, this decision generated more than $12 million for the foundation in a single day. The time commitment—six paid days off annually for volunteering—was influenced by Hasbro's program that offered employees four hours monthly for community service. The product donation evolved from initially offering ten free subscriptions to nonprofits to becoming a formalized program serving thousands of organizations worldwide. One powerful example of the 1-1-1 model in action is Project Homeless Connect in San Francisco, which brings various social service providers together under one roof. Salesforce.com provided grants for necessities like toiletry kits and sleeping bags (equity), employees volunteered monthly to help with outreach and support (time), and they built a custom application on their platform to manage client data (product). This comprehensive approach created far greater impact than simply writing a check. The philanthropic program evolved based on employee interests and community needs. When Sue Amar, a support analyst, stood up at a company meeting and asked what they were doing about the environment, Benioff responded: "I'm not sure. You have six paid days to figure it out; I'll support you." Sue returned with a plan to reduce the company's carbon footprint, which led to investments in renewable energy projects and the formation of the Earth Council, a volunteer-run group examining grassroots environmental changes. To implement philanthropic initiatives in your business, start small but integrate giving into your core operations from the beginning. Choose causes that align with your company's expertise and values. Involve employees in decision-making about philanthropic priorities. Measure and communicate the impact of your efforts. Use your unique business assets—not just money but expertise, technology, and networks—to address social challenges. Remember that effective corporate philanthropy creates a virtuous cycle—it attracts talented employees who want meaningful work, builds customer loyalty, strengthens community relationships, and ultimately enhances your brand in ways traditional marketing cannot. When done authentically, philanthropy becomes not just something your company does, but part of who you are.

Chapter 6: Scale Globally While Maintaining Your Core Identity

Expanding internationally presents tremendous opportunities for growth, but also challenges companies to maintain their distinctive culture and values across diverse markets. Successfully navigating global expansion requires balancing standardization with localization—preserving what makes your company special while adapting to regional differences. Salesforce.com began its international journey in February 2000 when three Oracle executives from Ireland—Fergus Gloster, David Dempsey, and John Appleby—reached out after reading a BusinessWeek article about the company. Benioff brought them to San Francisco to experience salesforce.com's culture firsthand. The culture shock was immediate; the Irish executives arrived wearing suits to find a casual office with employees in Hawaiian shirts and shorts, a NO SOFTWARE doormat adorned with dolphins, and Benioff's puppy Koa training on a fire hydrant in his office. Despite these cultural differences, salesforce.com established its European headquarters in Dublin, leveraging the city's English-speaking workforce and favorable corporate tax rate. They built a corporate sales team of native speakers so when German customers called, they thought they were speaking to someone in Frankfurt; when French customers called, they believed they were reaching someone in Paris. This centralized approach contradicted the prevailing wisdom that selling enterprise software in Europe required a network of local partnerships in each country. When entering Japan, they initially considered a partnership with a large Japanese company but received crucial advice from Chikara Sano, former CEO of Oracle Japan: "If you start off too deeply with one player, this can limit your options down the road." Instead, they created a joint venture with SunBridge Corporation, an incubator of IT startups in Japan led by Allen Miner, whom Benioff knew from Oracle. Unlike most foreign companies that structure their Japanese operations as subsidiaries, salesforce.com made their Japanese entity an independent company with salesforce.com as the majority owner and SunBridge as a minority investor. In Japan, they discovered that their usual marketing tactics required adaptation. When they attempted to stage a mock protest outside a technology conference in Singapore—a tactic that had worked well in the United States—they were surprised when police threatened to shut down the entire event. The incident highlighted the importance of understanding cultural nuances and adapting marketing strategies accordingly. A key insight from their global expansion was the need for dual leadership combining international and global perspectives. In Japan, they paired Eiji Uda, who understood the Japanese market, with Carl Schachter, an executive from headquarters who knew salesforce.com's culture and could facilitate communication. This "two leaders at the top" approach helped bridge cultural gaps and ensure alignment with the company's core vision. When expanding globally, start by building international capabilities into your product from day one. Establish a beachhead of small customers in each market before investing in local offices. Inject local leaders with your corporate DNA by bringing them to headquarters for immersion in your culture. Follow sequential growth strategies rather than trying to enter too many markets simultaneously. Most importantly, don't use a "seagull approach" (swooping in, making noise, and flying away); demonstrate real commitment through sustained presence and investment. Remember that successful global expansion requires both confidence in your core values and humility about local practices. As Benioff learned, you can stay true to your vision while adapting your methods to respect cultural differences in each market.

Chapter 7: Embrace Transparency to Build Trust

In today's interconnected world, building and maintaining trust with customers, employees, and partners is essential for long-term success. Transparency—the willingness to share information openly, even when it's uncomfortable—has become a powerful tool for creating authentic relationships and navigating challenges. In late 2005, salesforce.com faced a serious crisis when their service experienced several outages. Customers grew frustrated with the disruptions, and competitors quickly capitalized on the situation, alerting the press whenever the system went down. The company's initial response was to minimize communication, believing they should focus on fixing the technical problems before addressing the public concerns. Bruce Francis, VP of corporate strategy, approached Benioff during this crisis and said, "This is not who we are; we are usually the ones calling people up. Hiding doesn't feel right." This moment of honest feedback sparked a transformative decision. While Benioff initially worried about making the company vulnerable by revealing its problems publicly, he ultimately realized that complete transparency was necessary to restore trust. The result was the creation of trust.salesforce.com, a website that displayed the company's internal monitoring system in real time. The site showed everything—when systems were running perfectly (green), experiencing performance issues (yellow), or suffering service disruptions (red). This unprecedented level of transparency meant that customers, competitors, and journalists could see exactly how the company's systems were functioning at any moment. The decision to launch this "trust site" was initially met with skepticism internally. Exposing system failures publicly seemed counterintuitive—wouldn't it just give ammunition to competitors and journalists? However, the transparency initiative proved remarkably effective. It shifted the conversation from speculation about problems to acknowledgment of salesforce.com's commitment to openness. The press, previously quick to report outages, now praised the company's innovative approach to customer communication. Beyond the public trust site, salesforce.com implemented a policy of personal outreach during service disruptions. Benioff himself would call top customers to apologize and explain the situation, often surprising them with this level of direct communication. One CIO at a large company told him, "I couldn't believe you were taking the time to call me. I've had data centers down for two days, so an hour of downtime doesn't represent a massive problem to me." To build trust through transparency in your organization, start by making information accessible to stakeholders. Create clear channels for feedback and demonstrate that you're listening by taking action on what you hear. When problems arise, acknowledge them quickly and honestly rather than hoping no one will notice. Share both successes and failures, and explain what you're learning from each. Establish metrics that matter to your customers and report on them regularly, even when the numbers aren't flattering. Remember that transparency isn't just about sharing information—it's about creating accountability. When your organization knows that its actions will be visible to all stakeholders, it naturally encourages better behavior. As salesforce.com discovered, what initially seemed like a vulnerability became one of their greatest strengths, transforming a potential reputation disaster into a powerful differentiator that built deeper customer loyalty.

Summary

Throughout this exploration of salesforce.com's journey from scrappy startup to industry titan, one principle emerges consistently: the courage to challenge conventional wisdom and forge new paths. By reimagining software delivery, marketing strategies, customer relationships, corporate philanthropy, and global expansion, Marc Benioff and his team didn't just build a successful company—they transformed entire industries. As Benioff powerfully states in the book, "Companies must not only see innovation before it is obvious to the market but also have the courage to pursue that innovation years before it's accepted, or even understood." The ultimate lesson is that meaningful success comes from pursuing both profit and purpose simultaneously. Your next step is to examine your own business through this lens: identify one area where conventional thinking is limiting your potential, then develop a bold alternative approach. Whether you're launching a startup or leading an established organization, remember that the future belongs to those willing to question everything and reimagine what's possible. As Benioff reminds us, "The future is whatever we imagine." What future will you create?

Best Quote

“One idea alone is a tactic, but if it can be executed a number of different ways, it becomes a great strategy.” ― Marc Benioff, Behind the Cloud: The Untold Story of How Salesforce.com Went from Idea to Billion-Dollar Company-and Revolutionized an Industry

Review Summary

Strengths: The book's exploration of Salesforce's growth through 111 strategic "plays" offers a comprehensive blueprint for business success. Practical advice and real-world examples enrich the narrative, making it both inspirational and educational. A candid storytelling style provides a behind-the-scenes look at the challenges of building a tech company. Emphasizing customer-centric innovation, Benioff also highlights the importance of corporate culture and philanthropy.\nWeaknesses: Occasionally, the book leans towards self-promotion, which some readers find distracting. Certain strategic discussions may lack depth, leaving readers wanting more detailed analysis.\nOverall Sentiment: General reception is highly positive, with readers valuing its motivational and informative content. The book is particularly appreciated by entrepreneurs and business leaders for its practical insights.\nKey Takeaway: Ultimately, "Behind the Cloud" serves as a compelling guide for innovation and leadership, underscoring the necessity of challenging the status quo to achieve business success.

About Author

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Marc Benioff

Marc Benioff is chairman, co-CEO, and founder of Salesforce and a pioneer of cloud computing. Benioff was named the Decade’s Top Innovator by Forbes, one of the World’s Greatest Leaders by Fortune, and one of the 10 Best-Performing CEOs by Harvard Business Review. He has won numerous awards for his leadership on equality. A Fortune 500 company with more than 45,000 employees, Salesforce has been recognized as the Most Innovative Company by Forbes and the Best Place to Work and 15th Most Admired Company in the World by Fortune. Upon founding Salesforce, Benioff created the 1-1-1 model of philanthropy, giving one percent of the company’s equity and product and employees’ time back to communities around the world. Today, more than 8,500 companies have adopted the 1-1-1 model through the Pledge 1% movement.

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Behind the Cloud

By Marc Benioff

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