Salesforce, Inc. (CRM) Earnings Call Transcript & Summary
October 5, 2023
Earnings Call Speaker Segments
Bunga Sugiarto
executive[Audio Gap] first can empower your business future and the playbook we created that we believe any organization can follow to find success. I joined Salesforce not only because of the brand but also because I wanted to sell a solution that makes an impact and also a company that puts their customer first. Again, we want to say thank you. Thank you for choosing to spend your time with us today. We know how valuable your time is, and we hope to make this call all as valuable as possible because your success is our priority. I first like to share with our forward-looking statements. As you all know, we are a public company, and therefore, all purchasing decisions should be based on the current services available. Now before we kick start today's session, I'd like to run through a few logistic pointers so that you can best benefit from this session. First of all, regarding the slide, to enlarge the presentation slide, click the enlarge slide button located on the right-hand corner of your presentation window. You can try it. Also, if you have somehow facing any connectivity issues during this event, you can just refresh your browser and it will bring you back to our live event. We'd love to hear from you. So we encourage you to submit all questions at any time throughout the webinar using the Ask a Question widget, right side on the ON24 platform. So if you can find some on the right-hand side below, and then you can post your question there. We will try our best to answer as many questions as we can at the end of this presentation. We want this to be an engaging conversation, so please be sure to drop all your questions in the chat. We'll do our best to get through as many questions as we can. If you have any difficulties assessing any part of today's experience, please drop us a question. Joining me today, I'm very happy to have our special guest, Mr. Aris Kurniawan, the project coordinator for [indiscernible] National Data Center from Ministry of Communication and Informatics, KOMINFO. I also have Matthew Parin, our senior product director for Salesforce's Hyperforce base in U.S., good evening for you, Matthew. And also we have Eric Suwandhi Principal Solution Engineer from Salesforce Indonesia. These are the 3 main topics that we will cover in our agenda today. So we'll start with Salesforce's introduction, and then we go directly to the main content of Hyperforce itself, and we will have a fireside chat with Ministry of KOMINFO with Mr. Aris and then we will continue with question and answer where I will try to answer all of your questions. I'd like to start by introducing who we are. At Salesforce, we are known for being the world's #1 CRM or customer relationship management. And while that's true, we like to think ourselves simply as the customer company. We help companies align their people, purpose and products with their customers. And we do that with Customer 360. Our entire portfolio of products and serves, which helps companies connect with customers in a whole new way. It unites your company, whether you are from marketing, sales, commerce, service and IT teams around a single shared view of customer data with cutting-edge AI and real-time actionable insights so you can wow your customers every time. With Salesforce Customer 360, every company can be a customer company. Amongst the top 5 vendors shown here, you can see that Salesforce is ranked #1 in CRM for the last 10 consecutive years. We started our humble beginning in the Asia Pacific region in 2004 when Salesforce first opened its doors to now when we are actually operating right across the region with customers in 10 countries here in ASEAN alone. And as I reflect on this milestone, I'm reminded that it's not what we do, what matters, but how we do it. We managed to achieve this result because our vision has never changed since we were established in 1999, which is to help companies connect with their customers in new ways. At Salesforce, our vision has always been to help you to connect with your customers in a whole new way. We want to help you drive customer success. We want to drive fast time to value for you. We want to have you to grow your business and our approach to that vision evolves with every new innovation cycle. As we spoke with our customers over the past 6 months, we've certainly heard about the economic headwinds, rapid change and the need to do more with less. We are due to uncertain macroeconomic condition, rising interest rates, and our customers expect more than ever from us. In our Salesforce latest six state of connected customer report, we found that 65% of customers expect companies to anticipate their needs, preferences. They want us to meet them where they are on their terms to personalize every experience. This pressure are real, but in the midst of this, our customers aren't taking a defensive stance. They are looking at opportunities to grow to better serve their customers and to attract the best talent. Technology is advancing faster than ever before, and it will enable leaders that can harness it to come out of this period of uncertainty with an advantage. They will address simplifying their operating environments, designing IT capabilities to be reusable and taking advantage of new ways to automate and orchestrate work. One of it is to also use, of course, the new access technology in cloud. And moreover, to understand their customers better. We are a new world and while in the past 2 years we are under tremendous hardships. We've also experienced innovations and transformations that we never expected so soon. And in this new world, we are finding that connecting with customers can feel harder than ever. You're navigating new troughs and safety challenges because your customers have grown and are spread around the world. So you need to scale faster while addressing their security and privacy concerns. In summary, you need to adapt to change, innovate while addressing the compliance and governance challenges all at the same time. And the same business challenges apply to Indonesian businesses, mainly Indonesian businesses will require support to capture this opportunity and unlock the benefits of digitization. That's why Salesforce, the global leader in customer relationship management is proud to announce that we are deepening our commitment to Indonesia, not only with the launch of Indonesian entity, but also with the general availability of Hyperforce and a new partnership to address digital scale imperative in the region. The new Indonesian entity will bring Salesforce team and decision-making closer to our customers and partners in the market that enables Salesforce to tap into the local talent pool. The efforts aim to create greater impact and support growth of the businesses in Indonesia. And the launch of Hyperforce Indonesia will help our customers to speed up technology innovation with our CRM, SaaS capability. while addressing the compliance and data residency requirements. That's why we are here today in our webinar to share more detail about Hyperforce. Before we jump into the main content of the presentation that will be presented by Matthew and Eric, I would like to run a quick fall first. So for all of you here, have you heard about Hyperforce before, before you join this webinar, you can just click the button A, if you have heard it; or b, if you have not heard about Hyperforce before. I'll give you 20 seconds to answer this poll. So Matthew, in so far since the day we launched Hyperforce back then -- I mean, time flies so fast.
Matthew Parin
executiveI know. I know. It's -- I mean it feels like just yesterday, we were there in Jakarta, like meeting everyone, talking about it, all the exciting engagement around the launch. And then now after Dreamforce and all the big announcements in Dreamforce, we're now in this place where we're able to talk to customers about the real specifics of things that they've been asking us. So I hope a number of people have heard about Hyperforce, but if not, I hope we can energize them and help answer any of the questions that they might be having.
Bunga Sugiarto
executiveYes, definitely. So let's see then Matthew, how many people that have heard Hyperforce. Wow, so it's almost balanced, 47% have heard about Hyperforce and 52% have never heard about Hyperforce before. So now turning to you. I think now it's your job and Eric to make sure that everyone leaves this webinar with 100% know about Hyperforce.
Matthew Parin
executiveMy goodness. Well, I will do my best. I know Eric from our time in Jakarta that we are big -- we're great pros at this. So I look forward to seeing where we go. But to kind of ground everyone. So again, my name is Matthew Parin and I am the Senior Product Director for Hyperforce. And what's great is since I joined Salesforce just a few years ago, it's just incredible to see how much we've accomplished as a business and how many ways we supported our customers in such a short time. I mean the Salesforce platform just continues to impress me day in and day out, and I'm so excited to be here to share just a little bit about what we've been working on. And so I'll start by kicking off with the most important piece. So as I was sharing and Bunga what I was talking about, I was in Jakarta last month, and we made this big announcement about Hyperforce going GA in Indonesia. And for everyone here, I want to make this announcement, very clear, it's available now. So Hyperforce is Salesforce's next-generation platform architecture, and it's built for the public cloud. And we found that it's loved by our developers and importantly, trusted by CIOs. Now this is our first introduction of local infrastructure platform in Indonesia, and we think this provides the foundation for our Salesforce Cloud, including those like Sales Cloud, Service Cloud, Marketing Cloud, commerce, industries and so many more. So I'm here to basically give you a little more information about Hyperforce. So let's jump in. Now the first question you might be asking is what is Hyperforce and so I love this slide because it allows us, allows me to be able to characterize our historical legacy with our first party data centers, the way Salesforce first went to the cloud with a multi-tenant platform with Hyperforce, which is our next-generation multi-tenant platform running on the public cloud. And so with this strategy that we've made, we are going to no longer run the physical infrastructure of data centers ourselves. And instead, we're going to run our entire platform on our public cloud providers. And in this, we are creating a shared responsibility model, where we at Salesforce are going to focus on the layers of the stack that are very much in our control and very much what customers go to Salesforce for, which is customer relationship management and all the ways to connect with their customers. And so the thing I think is really important about this is you understand a little more about the pillars that we took from an engineering and a technology team to really make Hyperforce, the trusted platform for customers around the world. So when I talk about Hyperforce, I really talk about trust, right? When you move to the cloud, you reason need to trust that the applications and the platform that you're building your business on, you need to make sure that, that achieves and addresses all of the requirements that you have as an organization. And so the 3 areas I'd like to talk about are scalability, security and availability. And these are the things also that I hear a lot of customers ask about. So let's jump into the specific details on them. So when I talk about scalability, there are actually 2 things that I talk about. First off is with this with Hyperforce in particular, we can support a large number of customers on the platform, and we can support a large number of customers at scale right? This means if you have a scaling business, you can run on Salesforce, on Hyperforce and be very successful. Some of the largest and most innovative customers companies around the world are using us to run their business and being very successful. Scalability also means our ability to bring our products and services to increasing numbers of locations around the world. For many years, Salesforce was basically in a few numbers of countries. However, with this change to Hyperforce, we're able to move our products and infrastructure into new locations around the world that we never really dreamed of. And we're able to do it rapidly and quickly. So that's 1 of the reasons why we're here are now available in Indonesia. Second, when we talk about Salesforce, we really want to talk about security. Now Eric will be talking a little more about this, but I do want to touch on some of the wave tops or what it needs to be secure when running in the cloud. And so when we look at security, it's all about trust and you have to have trust and confidence that the services you're using meet your needs. And so we do that through a few areas. Number 1 is encryption. Hyperforce leverages the cloud native encryption patterns of modern technology. And so what we're able to deliver is encryption both at rest and in transit. So that's not only data is encrypted on this when it is saved down in the database, but also all the interservice communication between any services that are running on Hyperforce is also encrypted. That is the standard that a lot of organizations around the world are moving to, and we're very excited to be delivering that here in Indonesia. Second, Hyperforce uses what we call Zero Trust architectural principles. And this is an approach that has revolutionized the security space in the last few years. And it basically means that no system or no part of our system automatically trust anything. And instead, automatically assumes that it is a not trusted part and so it forces every communication to be both authenticated and authorized. And last, we talk a lot about zero or least privilege. And so this is in line with our Zero-Trust architectural principle. And by doing this, we ensure that not only is every operation authorized and authenticated, but it's just the right amount of privilege in order to do what you need to do. This is really based on the time-bound nature of some access requests. And so if something needs to be accessed, we make sure not only is it authorized and authenticated. So they can have it, and we know who that person is. But we limit the amount of time you can access to that piece. These pieces together create greater trust in the cloud and is part of the default nature of Hyperforce. So last, I really just want to talk about availability. Now this is something that organizations really talk about all the time. It's a critical thing to trust cloud services to run your business. And so it's something that's really, really important for us and we made a lot of investments in this area. The top way we're making investments in this is by mandating that all Hyperforce services run across 3 availability zones. Now an availability zone is kind of a complex idea. But at the basic sense, it means that there are 3 separate data centers that are physically separated that are communicating all the time that are running all your services. So instead of putting all your services in 1 data center perhaps and then be perhaps live out the issues that might happen in that 1 location. We, with our Hyperforce architecture, running across all 3. And so if any issue happens in 1 data center, we can ultimately switch over to 1 of the other 2 to ensure that you continue to run your business without having any downtime. It's a really important detail and something that we are very excited about. And so with this 3 availability zone offering, we also are able to deliver really important things. So of course, highly available, right? This is the low latency fast communication between the data centers, so you have a great customer experience. Second, now this is highly resilient. So as I said, even if something happens to 1 of those data centers where we're running our applications like the actual physical space, we still have 2 more that we can triangulate against in order to continue to deliver highly available services. And then last, this allows us to be much more highly innovative with how we deploy our services and how we release new updates. So previously, in our legacy infrastructure, we have to do these maintenance windows, right, where we have to say, "Hey, your systems will be unavailable or you'll be in read-only mode for a small amount of time. With Hyperforce and our 3 availability zones, we're able to execute blue green deployments where we're able to simply shift your load from 1 location to the other, while upgrading ones that are not being used. So you have an overall highly available, highly innovative system to continue running your business, really important stuff. And so given all that, I wanted to ask this question. what is or what are the biggest challenges you currently face in adopting the cloud? So I'm going to give everyone 20 seconds to kind of answer this question. And it's something that I think is really important. For me, as a product leader in Salesforce to really understand what's going on in the Indonesia marketplace. So is it something like regulatory or data residency issues that's keeping you from the cloud or is it data privacy, security, supply chain risk or maybe none of the above and it's something else. Eric, what do you think? And what have you heard in your experiences so far?
Eric Suwandhi
executiveYes. Thanks, Matthew. I think what we heard in the marketplace is question #1, I think, regulatory. I think in the accordance of data resiliency that is one of the primary concern. And then the second one, we see on the screen. I think on data privacy, there's a lot of conversations ongoing on implementing a lot of data privacy controls. And also I think other factors, I think, is always on top of mind, which is the security, how we secure the data and what additional with the controls that are provided to the companies to further manage those critical data.
Matthew Parin
executiveInteresting. Okay. I mean this one, I want to give it a few more seconds because I think this is a key piece for us, right? You're going to be talking about data privacy and data security kind of coming up and what this means and what are our security controls. But I think getting a good flavor for people who are here who some know about Hyperforce and some really aren't as aware, like getting that understanding plus what are the biggest challenges for adopting cloud. I think that will be a really helpful point of view. Do you think -- should I close out the poll and kind of see what happens?
Eric Suwandhi
executiveYes, let's do it.
Matthew Parin
executiveAll right. Lets see who said. Goodness. Okay. Well, Eric, you were -- you've been talking to the right people, clearly. Nice job. Nice job.
Eric Suwandhi
executiveYes, indeed, they are surprised too.
Matthew Parin
executiveYes, this is going to be good, right? So people are going to be really interested in the portions that you're going to talk about. So let's hand it over to you, and I can just give you the reins, and we'll go from there.
Eric Suwandhi
executiveYes. Thanks, Matthew. I think for setting with us on what Hyperforce is and what it means for Salesforce customer, especially in Indonesia. So I'm Eric. I'm Principal Solution Engineer at Salesforce Indonesia. I've been with Salesforce for 6 plus years. And I think when Hyperforce was launched in Indonesia often received the questions, we're moving out from Salesforce first-party data center to now a public cloud provider infrastructure. Will there be any increased risk in terms of data security and privacy. And that's a topic I want to cover in the following section. So trust is our #1 value in center in everything that we do at Salesforce and Hyperforce is built in with the next generation security and compliance. So what it means is Hyperforce is secured by default, using the industry-leading features like risk purpose control, zero-trust principle, immutable software [indiscernible]. Some of those has been explained by Matthew earlier, and we're also constantly monitoring the compliance landscape worldwide. So when something come up new, we can quickly step up and also make all those compliance. So all the Hyperforce deployments are meeting all the combined of industry standard accreditation such as ISO 27001, SOC 1, SOC 2, SOC 3, PCI DSS, GDPR and many more compliance you can access the full list of the compliance at salesforce.com. And also, we also make sure that all the customer data is secure. We apply encryption everywhere across whether the data is stored in the disk at rest or whether the data is in transit between internal services in Hyperforce or external services. So 1 of the ways where we're able to secure and ensure the data privacy and security apply and [indiscernible] everywhere across at rest, which is when the data stored under this level. And also in transit, using TLS 1.2 when that is a core between internal services within Hyperforce, we also apply those encryption. And to what it means, basically, if someone walk into the data center, let's say, in this case, AWS data center, and they walk off with the disk with containing of your customer data. They can only see the encrypted data and which is impossible to decode. And the same thing also happen when someone in the network can snoop into the network, they can only see encrypted data. They are not able to decode those encrypted data. And to further more improve the security, our approach is to manage our own encryption key store in our hardware security model, which meet the government standard security. So what it means that we are not relying on the encryption key provided by the infrastructure provider. And it also allows you to give those key contour to your organization as well, where you can bring your own key, and you can manage all those key [indiscernible]. And furthermore, Hyperforce also introduced additional level encryption on the database level. So this is where you can apply additional database level encryption. And we also offer additional third-level encryption, which is across Salesforce [indiscernible] of encryption, where this encryption happen on the application level. Let's dive into that in the next slide. So Salesforce here, Hyperforce -- at Salesforce, we provide additional security solutions for you to further manage and secure your critical data. With Salesforce sales, it comes with 4 additional security solutions. As you can see on the screen, the first one, event monitoring, Field Audit Trail, perform encryption and also data detects that into each 1 of these. So the first 1 is event monitoring. So event monitoring allows you to analyze user activity and user behavior to drive more adoption of the platform. So for instance, you can access who is the users that download this kind of reports. Who's the user that accessing certain app or certain pages in Salesforce. So you can also have those audit trail on the user activity. Furthermore, it also allows you to build customer security policies to proactively prevent, manages activity in real time. So for instance, if someone tried to download a customer data for the last 6 months, which they are not supposed to do in their day-to-day operation, you can immediately block those transactions and send alerts or notification to the supervisor to review whether this is appropriate transaction or need to be assessed further. So this is the way we can proactively monitoring the event that happen and mitigate those threats before that happening. And furthermore, you can also track the application performance with event monitoring and use that to improve the user experience. The next 1 is Field Audit Trail. With Field Audit Trail, we know that tracking sensitive data and maintaining an audit trail can be a complex and very resource intensive. With Field Audit Trail, you can automate this process. So Field Audit Trail helps you do and so your data is accurate and reliable. So you're able to audit who, what and when the data changes and also you're able to create data retention policies. The combined we are internal or your industry regulation. So you can store the data indefinitely as long as you use Field Audit Trail as long as you need it. So we know some industry require maybe 5 years, some industries even 10 years, some industries even more than 10 years. So with Field Audit Trail, you can keep all those data in Field Audit Trail, and you can also fill and analyze all these historical data as needed to get business insight and trends. Subsequently, we want to talk about the additional encryption capability. We talk about sales platform encryption. So this allows organization to further protect your customer data store in the Salesforce. So you can encrypt the data in Salesforce, whether it's a standard or custom field, file an attachment, at the same time, also maintaining the functionality ongoing. So you still can sit on those data. Why is it being encrypted. If they can report on those data, why is it being encrypted. So we answer the security but we didn't compromise the functionality. So you can still operate with additional level of security. And furthermore, it also give you the option to do your own key management. So you can manage your own encryption key. So even Salesforce, we don't have access to the encryption key. You can bring your own key and store it on your hardware security modules. So this is the next level of encryption that will allow the customer to further manage this critical data. As we have seen many customers in Indonesia, especially those in the regulated industry, they have been implementing this platform encryption on top of the standard security that we deliver as part of the Hyperforce infrastructure. The last 1 but not least, as its name indicate Data Detect. So with Data Detect, it helps you to detect or quickly find sensitive information in your Salesforce instance that you might not even know exists. So for instance, there is a credit card addressed in some custom field or custom text field. So you're able to create policies to match certain pattern of data and also address those track data. So let's say, you'll find certain custom field or certain text field containing credit card in address, you can quickly apply additional security measure on those field. So let's say, for instance, apply the platform encryption to those custom field. Apply event monitoring to those fields, apply Field Audit Trail to track those sensitive data audit trail. So this is how the Salesforce here can augment the standard security provided by the Salesforce in the Hyperforce infrastructure, but we also give you additional security control to your organization in the way how you want to manage the critical data. On to our data security, I think 1 thing often tied together the data security is data privacy. And at Salesforce, we have a commitment to our customers to make sure we operate transparently and also make sure that customers remain in control of their data. So by operating transparent means that within any time you know how your data has been collected and how are being used in accordance within our published privacy policies. So you can access our published privacy policies in the salesforce.com/company/privacy. You can see all the privacy compliance that we have. And second, we want to make sure that you always remain in control of your data, which means that you can easily manage how Salesforce instance, retain, delay, anonymize and also how they transfer the customer data. And we also make sure that we want to deliver high standard with a strict privacy requirement in certain regions. So we have complied and met the certification of GDPR U.S. healthcare privacy law and many others local privacy law in the region. So let's take a look how we can really execute and simplify this data combined practice with privacy center. So privacy center is additional privacy controls. The Salesforce customer can purchase on to help them to simplify the data compliance process. So the first thing they can do with privacy center is you can secure your data life cycle by creating retention policies to make sure that the data is not easy to be identified. So we want to reduce the risk of identification of a data to the methodology of anonymization or any other methods that we talk furthermore. And secondly, we want to encrypt policies that automatically fulfill the right to be forgotten and also the data subject access requests. And also most importantly, also we provide a point and click across and also low code and no code form builder for you to also build a form to capture customer consent and customer preference. So this is all the capability delivered in the privacy center. Let's take a look on some of these capabilities furthermore. I think the first one, we talked about managing sensitive data. And 1 of those things is how we manage the retention policy. So under data privacy law, your customer has the right for the data to be restricted for processing. So this means that you must restrict processing or de-identify the data subject personal information in your instance, within 30 days of the customer request. So data retention policies help you manage this sensitive customer data and also create policies to remove or create a copy of inactive data and keep it in a retention data store. And also at the same time, you can access and fill a copy of the retained data in the retention store, but at the same time, we also restrict user to the access to the all customer data, which is in the retention store. And furthermore, how we reduce the risk of identification of the data store in Salesforce is through reform methods you can see on the screen. So the first one, we replaced the data with random letters and numbers. We anonymize the data. Second, you also do the same approach, but this time, we replaced the data with similar letters and numbers, while we are protecting the real information. So we see [indiscernible] the data. The third 1 we do deletion, which means that we replace the data with an empty field. And the fourth one, we do hard code. So basically, with sensor, the sensitive data with a black box, as you see on the screen. So this is how we can prevent the data to reduce the risk to be identified when there's a data scrutiny or any event of managers' activities. And under the data privacy law, the customer has the right to access their personal data and details how the data has been used. So upon a request from a customer, company must provide a full copy of the data, including the details, purpose of the data, with whom the data has been shared and how the company acquired this data. and privacy center allows you to execute this seamlessly so you can create portability policies to quickly execute this type of data subject request, make it easy to comply with data privacy law. So once you define the policy, you can quickly secure and save the files with the customer and easily keep track of all your requests. So all the incoming requests, if customer request the data on how the data is being used, how the data has been collected, how data be shared, so you can automate this process using the portability policies in privacy center. And what happens if a customer request for the data to be deleted. So let's say, they want the data to be completely deleted. They are no longer a customer of the organization. And with privacy center, you can easily define policies to quickly execute the right to be forgotten request from the customer and run the policy on any record at any time. So in this way, you can gain full visibility on customer request by tracking the life cycle from the creation of request from a customer to all the way of completion, which means the customer data has been completely removed. So with that, I'll share with you how Salesforce, especially with Hyperforce deployment in Indonesia, we have a build-in security and privacy control. But at the same time, we also provide you additional security and privacy control for you to further manage and secure this critical data. And with that, I want to hand it back to Matthew to walk us through on the Hyperforce migration. Matthew, over to you.
Matthew Parin
executiveThanks a bunch, Eric. So yes, this is the thing. So you've learned a lot about our strategy beyond Hyperforce and what it means to customers. And as we kind of close out this part of the presentation, I really just want to give you some details of what it means to be upgraded to Hyperforce and maybe we can share a little more about our long-term plans. So to start off, if you are a current Salesforce customer, the first thing you should do today is checkout Hyperforce systems. This is a GA tool, so it's generally available. It's available in Salesforce set up, and this is the thing that can help you get ready for an upgrade to Hyperforce. And if there's 1 thing I recommend once you log in and check out Hyperforce Assistant that you do, it's to run the so-called Prepare step in Hyperforce Assistant. This is a place where we actually run automated technical checks against your Salesforce implementation to make sure it's ready for Hyperforce. And in some cases, we actually give you recommendations on how to address it. So that's the really important thing. Your big takeaway in terms of, hey, I have questions about the migration. I want to understand what it's all about, your immediate action is go to Salesforce setup as your admin and then check out Hyperforce Assistant. Now next, you might be wondering, okay, so I checked out Hyperforce Assistant. I understand other things that are going on. But what actually happens on the day of an upgrade, Sam moving from Japan to Indonesia, which I think a lot of people on this line who are current Salesforce customers will be doing. Now this here gives you a detail of what actually occurs during the 3 hour maintenance window. Now if you're a long-term Salesforce customer, you understand our maintenance windows. And that's when we kind of make sure your implementation is running the latest version of our software. That's where we upgrade a lot of things. Now we also use the maintenance window in order to move customers to Hyperforce. And so the thing that's important is a lot of customers ask, is my order still available when it's being upgraded to Hyperforce. I can answer very clearly, yes. Your order will go into a so-called read-only mode. And that means that you can still read from your order, you can still see what's going on. However, you won't be able to write to that org. Now after your board is migrated and it goes out to the read-only mode, we actually -- you can just log right back into your org as if nothing changed. And the thing you'll actually look at is you go to set up again and look at your instance, you'll see you will be in an Indonesia instance if you're choosing to go to Indonesia, whereas previously you may have been in a Japan instance or perhaps European Union instance or even American instance. That's kind of what we really wanted to do with this migration is make it as easy as possible for customers and make sure none of their applications that they've installed from the app exchange into their implementations break and make sure that it's as easy as possible. Now that said, there are some things that we have seen over the last couple of years of going to Hyperforce that have kind of caused issues with our customers. And of course, Salesforce support doesn't end once you've made the upgrade to Hyperforce. And so we've tracked a number of cases and make sure that customers are able to resolve these as quickly as possible. And so the things that we've seen customers have issues are with are things like they have hard coded Salesforce instance in their code, right? This is something that is obviously not a best practice, but something that some customers have done or some customers' implementation partners have done. And so we, in Hyperforce Assistant, help to look out for that, that's something that we found. The other 1 is in Hyperforce, we do domain-based cybersecurity standards rather than IP-based cybersecurity in terms of a low listing or so-called black listing. That's something that can cause issues. And so we recommend you make sure you do domain-based usually the standard thing called Salesforce My Domain. We also encourage people to check, make sure e-mails can be received from your Salesforce org that are sent, check your connections and make sure all your org endpoints are good. We also have a link on our website that kind of goes through much greater detail of all the issues that we've seen customers experience, and you or your implementation partner can kind of check out those and make sure that your org is up to standard. So now that I've kind of shared a little bit about, okay, here's the upgrade. Here's what you want. Here's what you should know. I wanted to just kind of give a flavor of what is actually running on Hyperforce. Salesforce is a company that has products across the entire wheel. The Salesforce Customer 360 includes so many products and so many services, a lot of quite people ask, "Okay, what is on Hyperforce and what's available? Well, Importantly, you as a customer can purchase any Salesforce product. But what I'm pleased to report is we've actually achieved this outcome of having the products that are highlighted on this slide running in Indonesia. This means you can run the Sales Cloud suite, the Service Cloud suite, all your industry is cloud, net zero cloud, all of your app exchange products, you can run them on your org in running in Indonesia. And at the same time, we also know that customers want other types of products that are offered across the Salesforce suite. And as we bring those on to Hyperforce and then ultimately into Indonesia, we just need to make prioritization decisions about what you need to be successful in Indonesia. So what I may ask you is reach on to your Salesforce AE. If you see a product that is not highlighted on this wheel, talk to your AE and say, "Hey, I need this product to be hosted in Indonesia on Hyperforce for us to be successful for us to achieve some outcome that we need for our business. That will help us understand which products we need to have on Hyperforce in each market that we do business. This is the partnership that ultimately, I want to start with you all on screen and then ultimately, the teams in every market where we run Hyperforce. So let us know, reach out to your AE and let's really do this. But before -- 1 last thing before I let you go, I just want to tell a quick story. Now we've launched Hyperforce in Singapore, a little over a year ago, and now we launched in Indonesia. And I want to tell this quick story of an ASEAN customer who's been really successful with Hyperforce already. And that customer is M1. I worked with M1 since they started with Salesforce a couple years ago. Now they're a major telecom brand based out of Singapore, and they were running their Salesforce workloads in Japan. But they heard from their regulator that they had compliance issues that they need to address, plus they wanted to get a performance boost. And so after upgrading from Salesforce in Japan to Hyperforce in Singapore, M1 can now store their data locally in Singapore and the upgrade has improved their page load times by 2 seconds. That means they're getting not only a compliance boost that they're able to say, we are storing our data in Singapore, just like what a regulator want to but they're also getting a benefit in terms of the actual performance of their Salesforce org. This is just a flavor of what we are able to deliver with this upgrade. And so I kind of want to close it here. I'm going to pass off to Bunga and she's going to talk a little more about what we're doing here in Indonesia. Hello. Good to see you, too. Bunga over to you.
Bunga Sugiarto
executiveThank you so much Aris for being here and joining us in this webinar. How are you today?
Aris Kurniawan
attendeeI am fine. Thank you. It's quite a good day, hectic but still -- yes.
Bunga Sugiarto
executiveWe'd like to hear that. So currently, we have a few questions for you. So the first question is -- you know that currently, we have this feedback from the previous call that trust and compliance become 1 of the major concern or the major priority from the company in Indonesia. So how is KOMINFO able to help companies build trust with their customers priority.
Aris Kurniawan
attendeeOkay. So the trust is really -- really something that I see in the public awareness in Indonesia. It's quite hike lately because with this trust as Ministry of Communications. Also we're trying to help the industry start-up also how we can partnership in strategic sector with them in health sector [ IDR ] in finance sector to grow up from the start up to the other i industry unicorn and later on become a big company. So I think 1 of the program in [indiscernible], we have a lot of programs, 1 of them is Streebo startup. We nurture the start-up of Indonesia and also we have a lot of competitions. And I think this is something that maybe someday you should join too also partnering with KOMINFO to give them more insight to the new player in the industry -- because I see your service is what will open and already in line with data privacy -- that privacy allow that recently we released in 2022 -- that is how we're trying to build trust between the customer and the company. We provide also like a send up program to make sure that the financial sector or maybe the health care sector industry can perform in a secure way to [indiscernible]. Maybe that something that I can share with you.
Bunga Sugiarto
executiveThank you, Aris. I think that...
Aris Kurniawan
attendeeWe talk about this -- sorry, we talk about the regulation also. We already have [indiscernible] that regulate how the data should be stored. So for the public sector maybe mandatories in Indonesia, but for the private sector, we open up so you can -- it's not mandatory that was stored in Indonesia. So it's quite a good decision. And I think it's openly welcomed by the private sector also, where we have this data protection law, which I think will be effective from 2024.
Bunga Sugiarto
executiveOkay. Yes. Thank you, Aris. So basically, from your response that number one, KOMINFO is governing the law itself to help us to govern the companies. How to be trust through [indiscernible] privacy law. And I think the second 1 that you shared is really interesting and really great where you actually try to engage with 1,000 startups to build and socialize them to start building the applications or technology in a more secure way. So you are also providing the chance for them to actually do this on practice. And thank you for the invitation, of course, of course, would love to participate and work together with KOMINFO. The second question that I have for you is what are -- sorry, go ahead.
Aris Kurniawan
attendeeYes, I think the main principle for the government right now in this [indiscernible] time is we have to be a good facilitator and also a good accelerator. So we're positioning ourselves how to support the ecosystem to the industry to make sure that everything is in line with the needs of the public and the private sector, yes.
Bunga Sugiarto
executiveYes, brilliant. My second question would be, what are the biggest compliance challenges that you see business in Indonesia is facing today?
Aris Kurniawan
attendeeWe just compliance challenge for business in Indonesia. Some of them will answer about the business permit maybe. I think in the next 1 or 2 years, compliance to security or data protection law will be something bigger than the business permit itself because. We have this new data protection law. We talk about the data privacy policy, data retention, mandatory of data protection officer. This is something new for Indonesian business ecosystem. I think they need -- yes, they have a little homework to comply with the some [indiscernible] because right now, the rise of awareness on the public about this data protection and the security, it's very high orientation or Indonesian netizen always concerned about this data protection law. So I think this will be the -- 1 of the biggest challenge to comply in this business, we are facing today.
Bunga Sugiarto
executiveYes, understand. And I think this is also will provide the security feeling as well for the companies and also for the end customers at the end if we are focusing on compliance and data privacy. And Salesforce has since been founded in 1999, we are always cloud-based. And we understand that it's customer data that we hope. That's why trust is also #1 value, and we are aligned with this. Thank you for that. My last question would be what are the biggest opportunities that growing businesses in Indonesia can take [indiscernible]?
Aris Kurniawan
attendeeYes. You know that right now, almost 80% of Indonesian citizen are already connected to the Internet. So it's a big market, and now we are trying starting to regulate, it's more openly. And then the several sectors that I think it will be having this biggest opportunities like in the agricultural sector and the financial sector also, we have been Bingo, we have some things that's really related to the need of the people. But the next 1 is I think the healthcare system also because right now, we have 1 big national program, how to integrate the national data for the healthcare in Indonesia. So there will be a lot of opportunity for the new startup and new business to join the government to fulfill the needs of the health care system in Indonesia. I think that might [indiscernible] agriculture, financial sources and the healthcare system.
Bunga Sugiarto
executiveOkay. Good tips, Aris. So agricultural and then financial and also healthcare basically. And also definitely has to connected to the Internet as well because the user of Internet right now is 70% to 80%, meaning how we can use the technology to actually support this 3 industry maybe a big opportunities for the business owner. I see a question that is directed to you in the Q&A, do you mind to answer that first before I answer other questions, Aris?
Aris Kurniawan
attendeeOkay. Can you help me just with the [ financial ] which one I can answer.
Bunga Sugiarto
executiveYes, sure, I would love to -- so there is 1 question directed to you, Aris. The question is what are the main things that KOMINFO are looking for in Indonesia startup?
Aris Kurniawan
attendeeOkay. What are the main things. Actually, we don't have the answer but it goes back to the public who need the start up the service of the staff. I think maybe we need to start up that really we can stick to the real problem in our society. It's not only making business, but also slowly having good impact to them. This is maybe something that we are really looking -- looking at this time.
Bunga Sugiarto
executiveNoted. Thank you, Aris. Of course, the 1 that can actually understand what is the problem that is faced by our society and then the start up can help those.
Aris Kurniawan
attendeeSolving the problem and also deepen the social impact, yes.
Bunga Sugiarto
executiveSolving the problem and giving social impact. And of course, as you mentioned before, keep comply with the data privacy law.
Aris Kurniawan
attendeeThat's the main thing.
Bunga Sugiarto
executiveOf course. Thank you so much, Parin. That's very insightful for all of us here. And again, I would like to thank your participation in this webinar. I will move on to the question and answer. I would like to request your help to stay on the line, Parin. So if there is any question directed to you, I will ask you to answer as well.
Aris Kurniawan
attendeeSure.
Bunga Sugiarto
executiveSo thank you. So now we'll go to the Q&A questions. I have a few questions already lined up. Let me try to answer. We will try to answer all of them, but if we can't, then we will reach out to you separately. The first question is directed to Matthew. Matthew, the question is, is Hyperforce limited to AWS? Or is it open to other platform solutions?
Matthew Parin
executiveYes, Bunga that's a really valuable question to ask. And when we've made this decision to go forward with Hyperforce, we, at the beginning, had a multi-cloud strategy, right? We didn't want to be locked into any single cloud provider, public cloud provider. And so we had contractual relationships with the main public cloud providers around the world. So we had 1 with AWS. We had 1 with Google Cloud platform and we have 1 with Microsoft Azure, right? That said, at this time, all of our production Hyperforce instances are backed by AWS. And that's going to be our plan for the foreseeable future. So it's kind of yes and it's all AWS right now. But we also have relationships with other public cloud providers, and we will advise the market if we have any changes in terms of what production instances are available around the world.
Bunga Sugiarto
executiveThank you. The next question, there are some questions related to the migration that I believe Matthew have answered during our presentation, Matthew, like the steps of the -- step-by-step activities before, during and after the migration. There is additional question that you have not covered but what happened to our real-time transaction example, e-mail to case during the migration outage. Any risk, the data will not recorded in Salesforce?
Matthew Parin
executiveOkay. Well, so -- the way we like to think about this is we do a lot of checks before we do any customer migration, right? And so we are doing checks before we even start the migration work. So we are checking your org, checking your org, checking your org. Then during the migration window, when your org is in a read-only state, right? We are checking to make sure all the data is moving from Japan, if you are in Indonesia or across in Japan to Indonesia, right, for Hyperforce Indonesia. And then only if everything transfers perfectly, do we then say, yes, let's change the routing and bring the word back up in Indonesia. If anything fails during that migration process, we actually say, okay, that migration has failed, and we keep you in Japan, and we try again the next migration window. And so that's the due diligence that we do on our end to make sure that you have a great customer experience, and make sure that you don't lose anything that might happen. That said, if you do get e-mails the case, someone writes an e-mail and it's supposed to create a case in Salesforce during that 2-hour window, there are other processes that we would recommend you take in order to capture those e-mails or those cases. And so there are a bunch of patterns that other customers had utilized that if you talk to your solution engineer, you talk to your implementation partner, this is a really important thing for you to do, that you can manage that process. So we would recommend you lean on those kind of secondary processes during that 2-hour or 3-hour migration window, when you have downtime in order to make sure you don't miss any cases. And that's a standard technical architectural practice that I would assume you probably already have in place. and you would just leverage that in the case of a migration.
Bunga Sugiarto
executiveGreat. That's clear. You actually also answered a few more questions. You already answered a few more questions, which is related to the -- when the technical issue happened during the Hyperforce migration, the rollback and also the downtime. And then the next question would be, does data detect require additional license? That question, can you help me to answer that, Eric?
Eric Suwandhi
executiveYes, I can take this question. Yes, it's required additional license as part of Salesforce offering.
Bunga Sugiarto
executiveThank you, Eric.
Eric Suwandhi
executiveSo Salesforce still, we have 4 so we have Field Audit Trail, event monitoring, performance increase and data detail.
Bunga Sugiarto
executiveThank you. And then the prerequisite for migration, the process of migration, it was covered earlier in Matthew's slide, but don't worry, if you miss it, later after the session, we will send you the recording of this webinar as well, where you can watch again that steps of the migration. But if you face any challenges, you can always come back your account manager as well to help you.
Matthew Parin
executiveWe can do that. I should just remind everyone. Use Hyperforce Assistant. It's in every single Salesforce for today. It's in GA, it's behind, it's on set up. You can learn so much about Hyperforce and the migration/upgrade process, right there, on demand at your fingertips without even needing to reach out to anyone.
Bunga Sugiarto
executiveThank you. So everyone, you can find the Hyperforce Assistant in your org right now for our existing customers.
Matthew Parin
executiveYes.
Bunga Sugiarto
executiveAnd then the next question would be -- okay. So there is a question. The question is apart from regulatory and data privacy teams, which are at top of mind on this area. Some of our audience would like to understand from a cloud infrastructure cost point of view, because enterprises, which already moved never goes to public cloud, start to be very cautious about cloud costs. So I think I can answer this question and Matthew and Eric, you can add. So we know that in cloud, there are several different offerings, right? First of all, it's cloud infrastructure, which is mainly the Salesforce storage network. And then the platform-as-a-service, which you usually includes your databases, your app servers, your middleware, let's say. But then there is the higher offer, which is software-as-a-service which actually, the application is ready already on the cloud. So in terms of cost, what the cloud provider provides is actually depend on this that you select. If you select software-as-a-service, basically, everything else is already taken care for you. Like Matthew mentioned, our Hyperforce has 3 data -- data redundancy in the production. We also provide Sandbox for the development also for UAT and also full copy Sandbox, if you want to do a stress test, which is mimic exactly the same with your current production. So I think the overall cost of ownership will consist of a few things. The cost of savings, 1 is in terms of comparison of the hardware cost. Second is also the speed to make the technology or the platform live because in cloud, you can start fast because implementation usually faster compared to the on-premise. And also, if you need like a customization or if there is any further enhancement along the way, even after your live, then those changes will be faster time to market than actually reduce some costs. I think there are a few aspects of it, not only reducing cost but also increasing the business revenue opportunity. Anything that you want to add, Eric and Matthew, from the cloud cost point of view.
Matthew Parin
executiveI mean, I'll just say, cloud cost is a very important thing for us. Bunga, I think you did -- you covered it really well, like our business model will be able to deliver these capabilities to you in a way that makes sense. We have both our consumption-based cloud offerings as well as our license-based cloud offerings. And I think it's ultimately a conversation between you and your AE of what makes sense for you in your business, right? So I think you covered it really well.
Bunga Sugiarto
executiveThank you. Let's move on to the next question. The question is what happens to the API integration to the satellite systems during the migration. So Eric, could you take that? or Matthew?
Eric Suwandhi
executiveYes, I can take this question. So I think the API integration, as Matthew explained, this is a ready-only, you still can access those systems during the migration in between the migration. But if the API is writing to the system, then we may need to take [indiscernible] on secondary approach, how to capture all those data during the read-only stages before it's fully migrated to Hyperforce. So you might see case by case what type of integration. If we can defer those or we can need to create Internet areas in between to capture all this information, and then we allow that back into the Hyperforce instance once it's already up.
Matthew Parin
executiveAnd the only thing I would add is related to -- if this is actually a networking issue as well. So if you see your APIs tied to a specific network connection that is in Japan and then that network connection is tied to Indonesia instance. If by leveraging my domain, which is Salesforce My Domain, which is a requirement for good Salesforce production, we take care of all that networking change on our side. And so you as an end customer don't have to change any of our implementation. That's why making sure you check and enable My Domains in your Salesforce org. It's a critical piece, to make sure that any change of the networking in terms of the location where your org is still, that you don't have any change in terms of your actual API integration.
Bunga Sugiarto
executiveThank you, Matthew and Eric. And there's a question when we migrate the production org to Hyperforce, will migrate the Sandboxes also?
Matthew Parin
executiveThat's a super quick. So we actually have 2 ways you can go about that. If needed, we can actually have your Sandbox migrate to Hyperforce before your production org is migrated to Hyperforce. That's something you should reach out to your account executive if you want that to happen. The other way is your Hyperforce production org is migrated, and then we need to do a Sandbox refresh, it changes the host location of your Sandbox by default because your org is in a new location, the Sandbox, or your production org and your Sandbox org are like paired, if you will, and so because of that, it will just automatically move to the location of your production org. So you have 2 options actually available to you. One requires talking to your AE, if you want your sandbox moves ahead of time, and they can advise you on process to do that. The other is if you want your production org move, when you do a refresh, your sandbox will write along with it.
Bunga Sugiarto
executiveOkay. Thank you. We still have a couple of more questions. The next question would be, if I install a managed package on my Hyperforce instance, is it entirely resident in my instance?
Matthew Parin
executiveOkay. This is something -- I think there's 2 ways to -- or 2 important points to answer about this. First off is, will any of the managed packages are installed differ if I'm running on Hyperforce versus not on Hyperforce. And we have, over the years, determined that all your managed packages that you install will continue to run on Hyperforce. We have over 50,000 customers on Hyperforce today to prove that out. We have really good evidence. You can feel strong about that. Second thing is some managed packages that you download from the App Exchange are called native packages and they're meant to run inside the context of the Salesforce core application stack. And those, you could have more confidence that they run exclusively within Indonesia, if you install it in Hyperforce Indonesia into your org there. However, the contractual commitment, the legal commitment about those in terms of how they perform. That's still the third-party provider of that software, you should actually ask them to say, hey, what's going on with this package that installed in my org, can you tell me more about it, right? Because that's another software company who you're installing their software into your Salesforce org, we actually don't have control over that. You, as the end customer have that control, and so that's what we recommend.
Bunga Sugiarto
executiveOkay. So Matthew, you also covered a few information about the clouds and modules of Salesforce that are available on Hyperforce Indonesia. There's a question, there's a sub module -- the sub SKU such as Field Service, Lightning, Scheduler are available too? And the follow-up question for that is whether we can ensure that all data in transit remains within Indonesia?
Matthew Parin
executiveOkay. So these become very technical and very like legalistic questions. So I can share that Field Service for example is on Hyperforce, but there are specific parts of Field Service in terms of how it's architected that you have to do a secondary call like talk to your AE and say, like, "Hey, I'm really interested in terms of how Field Service as a specific product performs to make sure that, that fits your specific needs of a customer. So it gets like technical, very low level, kind of out of scope for a webinar, but something we can definitely answer and we answer questions all day long. And then the other question about transit, right? So Bunga, you asked the question was about, hey, can we guarantee that all transit is done in Hyperforce in Indonesia. For many products, that's true, right? But it really gets down to, okay, which products had you chosen within that. And that's another conversation. So we cover this in a lot of documentation that we have in terms of our data processing agreement and all of our master services subscription and what products are part of this Hyperforce stamp that we've built in Indonesia. So it gets a little technical, unfortunately, but it's part of us being transparent about kind of what we offer in Indonesia and what you're actually buying as an end customer. So if I were to give you a quick answer for the majority of the products that are running in Indonesia, all the communication is within the balance of the Salesforce stamp that's running there on Hyperforce. That said, because of implementation changes or choices that you can make as an end customer, it becomes really hard to actually make a bold statement like everything is done. So that's kind of how I would have that question. And ultimately, it's a conversation between yourself and your SE and your AE about which products and services make sense for your specific use case. And then how can you make sure that you are passing the right kinds of data into Salesforce in a way that respects the compliance needs or the regulatory needs of your specific use case. And again, we do this every day, really important part of what we do.
Bunga Sugiarto
executiveThank you, Matthew. Thank you for all of your interest. I think we only have time for the last 2 questions. Let me try to answer that. So the first question would be what is the required license for Hyperforce? So basically, Hyperforce because we are a software as a service company. We don't charge you for the infra. So that's why the license that you need is only the license of the module that you require for the business. For example, if you need Sales Cloud or Service Cloud, then you just need to subscribe for that license. And then Hyperforce will be available for you. Also for the existing customers that is already running on Japan data center, or other data center, if you want to migrate to Hyperforce Indonesia, there is also no additional cost because Hyperforce is part of our commitment, especially for this country for Indonesia and also for the Asia Pacific region as well. So that's my answer. I think the last question that I want to try to answer is what are the least of Indonesia loss that Salesforce or Hyperforce is fully compliant to? So a few months before we launched Hyperforce, we actually do a consultation with some regulators in Indonesia, and we ask how can we make ourselves comply to the regulation. And the feedback was that -- these regulations are actually not for technology provider like Salesforce, but it is meant for banks or financial sector or meant for particular entity -- business entity that has to comply with that regulation. But of course, from Salesforce, we want to help our customers to comply. So I'm happy to inform you that right now with the input from our regulators, we are building a white paper. So stay tuned, it will come up soon that we are trying to help our customers to get the information, how to comply with SFRA regulations. Some regulations is definitely the data protection law that was mentioned by Aris. Besides that, there is also regulation from [ OJK ], #11 about the implementation of information technology by commercial banks and then SEOJK, regarding #29, regarding cybersecurity, asset solvency for commercial banks. We are also making this white paper for regulation of Ministry of KOMINFO #4 2016 and also [indiscernible], #8 of 2020. So there are lists of regulations that we are now working on to provide you the white paper and also the important information that you need because you want to make sure that you can be in office, you can deliver your business results without worrying about the data compliance issue. I think I'll close the Q&A answer with that question. And before we end, I would like to share with you these are the resources that you can scan and then you can download to learn more about Hyperforce and also to deep dive more on the data sheet, if you want to get more information. For those questions that we could not cover, please feel free to connect with your account manager or send an e-mail to us through the registration as well, then we will try our best to answer those questions. So thank you so much, everyone, and I would like to thank, of course, to all of our speakers, Paris, Matthew and Eric. Thank you so much for joining our webinar. Thank you, bye-bye [Foreign Language]. Have a great day, and have a great evening, Matthew.
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