Will economic downturn push companies into the cloud?

March 2, 2009, 4:14pm PST | Length: 00:01:48

View Transcript

At the TechCrunch Cloud Computing Roundtable in Mountain View, Calif., Marc Benioff, CEO of Salesforce.com, explains why he thinks Microsoft's entry into the business will bring validation to the cloud. Many CTOs, he says, still need to be convinced that using software as a service will save them money and move their companies toward the future. Moderator: Steve Gillmor, editor of TechCrunchIT.

Related Videos

Transcript

>> Mark, what is the impact of Microsoft getting into the Cloud?

>> Mark: Well I think the most important thing is the validation I think that that's, you know, we want that message specifically to CIO's. As I was saying earlier the people in this room and the people at this table, you know, are sold the people who are not sold are the thousands of corporate CIO's who are still buying a lot of hardware, software and building their own data centers. And the thing that's interesting right now we haven't talked about the economy at all but as we are now in a highly capital constrained economy these CIO's are basically have no capecs assumed spelling their capecs budgets are cut and their fundamental innovation budgets are being held hostage by these kind of enterprise software maintenance dreams that I mentioned. So the opportunity right now is to clearly highlight to them that they need to move into an offex assumed spelling world which is a world of Cloud services and that Microsoft can validate not to buy software is really significant because it sets up the short list in a different way. So instead of going and buying Dot Net and Sequel Server, instead of buying Visual Studio, instead of going and buying your BA application server and your Oracle database and your DB2 and your Lotus Notes and I know that Eriks thinks that we've won but the reality is that's still the vast majority of enterprise buying 99% is still those products. The shift needs to be for those CIO's to realize oh, there's these other things that are now available and at a level of quality and capability.

Sound effect

==== Transcribed by Automatic Sync Techologies ====