Twilio is not in competition with Skype or Google Voice; rather it offers an API so that you can incorporate voice calls and SMS messaging into web or mobile applications. The REST API lets you provision numbers with various options for what happens to incoming calls (conferencing, forwarding to another number or voice over IP, recording, transcriptions), as well as notifications so that you can get email or SMS alerts.

CEO and co-founder Jeff Lawson came from Amazon Web Services (AWS), and has a similar business model in that twilio targets developers and offers infrastructure as a service, rather than selling complete applications to its customers. Twilio does not own any datacenters, but uses mainly AWS and some RackSpace virtual servers to provide a resilient and scalable service.

The launch partner for the UK is Zendesk, a cloud-based helpdesk provider, which is using twilio to add voice to what was previously an email-based product. Zendesk forms an excellent case study. Using the service, you can provision a support number and have calls redirected to agents, or have a voicemail recorded, using a simple setup procedure. Calls can be recorded and you can have alerts sent when they are received.

What this means is that even the smallest businesses can offer helpdesk support using a pay-as-you-go model.

Lawson observes that twilio is the 6th and 13th most popular API on ProgrammableWeb (he says it is 5th if you combine voice and SMS) and claims very rapid growth in traffic using the API, though he will not talk about revenue. The company has around 60 employees in San Francisco and just one in the UK initially.

The service is also launching in beta for 5 other European countries: Poland, France, Portugal, Austria and Denmark. 11 other countries will be added by the end of 2011, though there are prominent omissions – no Germany or Spain, for example.

I was impressed by the demo and presentation at the press launch. Lawson provisioned a conferencing number and had us dial in during the briefing. He says twilio is engaged in disrupting on-premise telephony applications with a cloud service, in the same way Salesforce.com has done for CRM (Customer Relationship Management). The service is inexpensive to set up; Lawson said that this commodity pay-as-you-go pricing is essential for disruptive technology to succeed, another strategy borrowed from AWS.

There are server libraries for web platforms including Ruby, PHP, Java and C#, and client SDKs for JavaScript, Android and iOS.

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• Chatter, the Salesforce.com social networking platform for enterprises, is being extended with presence status, screen sharing, approval actions, and the ability to create groups with customers as well as with internal users. Salesforce.com calls this the Social Enterprise.
• Heroku, a service for hosting Ruby applications which Salesforce.com acquired in 2010, will now also support Java.
• Salesforce.com is baking mobile support into its applications via HTML 5. The new mobile, touch-friendly user interface is called Touch.salesforce.com.

Other announcements include the general availability of database.com, a cloud database service announced at last year’s Dreamforce, and a new service called Data.com which provides company information though a combination of Dun and Bradstreet’s data along with information from Jigsaw.

I spoke to EMEA VP Tim Barker about the announcements. Does Java on Heroku replace the VMForce platform, which lets you run Java applications on VMWare using the Spring framework plus access to Salesforce.com APIs? Barker is diplomatic and says it is a developer choice, but adds that VMForce “was an inspiration for us, to see that we needed Java language on Heroku as well.”

My observation is that since the introduction of VMForce, VMWare has come up with other cloud-based initiatives, and the Salesforce.com no longer seems to be a key platform. These two companies have grown apart.

For more information on Java on Heroku, see the official announcement. Heroku was formed in part to promote hosted Ruby as an alternative to Java, so this is a bittersweet moment for the platform, and the announcement has an entertaining analysis of Java’s strengths and weaknesses, including the topic “How J2EE detailed Java”:

J2EE was built for a world of application distribution — that is, software packaged to be run by others, such as licensed software. But it was put to use in a world of application development and deployment — that is, software-as-a-service. This created a perpetual impedance mismatch between technology and use case. Java applications in the modern era suffer greatly under the burden of this mismatch.

Naturally the announcement goes on to explain how Heroku has solved this mismatch. Note that Heroku also supports Clojure and Node.js.

What about Database.com, why is it more expensive than other cloud database services? “It is a trusted platform that we operate, and not a race to the bottom in terms of the cheapest possible way to build an application,” says Barker.

That said, note that you can get a free account, which includes 100,000 records, 50,000 transactions per month and support for three enterprise users.

What are the implications of the HTML5-based Touch.salesforce.com for existing Salesforce.com mobile apps, or the Flex SDK and Adobe AIR support in the platform? “We do have an existing set of apps,” says Barker. “We have Salesforce mobile which supports Blackberry, iOS and Android. We also have an application for Chatter. Native apps are an important part of our strategy. But what we’ve found is that for customer apps and for broad applications, to be able to deliver all the functionality, we’re finding the best approach is using HTML 5.”

The advantage of the HTML5 approach for customers is that it comes for free with the platform.

As for Adobe AIR, it is still being used and is a good choice if you need a desktop application. That said, I got the impression that Salesforce.com sees HTML5 as the best solution to the problem of supporting a range of mobile operating systems.

I have been following Salesforce.com closely for several years, during which time the platform has grown steadily and shown impressive consistency. “We grew 38% year on year in Q2,” says Barker. This year’s Dreamforce apparently has nearly 45,000 registered attendees, which is 50% up on last year, though I suspect this may include free registrations for the keynotes and exhibition. Nevertheless, the company claims “the world’s largest enterprise software conference”. Oracle OpenWorld 2010 reported around 41,000 attendees.

Related posts:

1. Salesforce.com acquires Heroku, wants your Enterprise apps
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3. The Salesforce.com platform play

Prospective Search API for Python – this lets you register a large set of queries which are executed against a flow of data so you can create notifications or other actions whenever a match is found.

Testbed Unit Test Framework for Python – this lets you create stubs for Google services for lightweight unit tests.

Concurrent requests for Java – a single application instance can now serve multiple requests provided it is marked threadsafe. An important feature.

Java Remote API – the remote API lets you access an App Engine datastore from your local machine.

I have had the sense that Google App Engine is more attractive to start-ups and small organisations than to enterprise customers. It is interesting to see Google working on bringing the Java and Python runtimes closer to parity, as Java is more widely used for enterprise development.

Another initiative aimed at enterprise customers is App Engine for Business, currently in preview. What you get is:

An Enterprise Administration Console console for managing all apps built by your company, with access control lists.

99.9% service level agreement

Hosted SQL:

While many applications can be built on the App Engine Datastore (which uses Google’s BigTable database system), we know SQL is the industry standard for the enterprise, so we’ve got you covered. SQL database support on App Engine gives enterprise developers access to the full capabilities of a dedicated relational database, without the headache of managing it.

SSL to an URL that uses your domain, such as https://myapp.apps.example.com.

Pricing – $8 per user up to a maximum of $1000 per month. In other words, if you have more than 125 users the cost per user starts coming down; if you have 1000 users it is a bargain.

Has Google done enough to make App Engine attractive to enterprise customers? This post from a frustrated developer back in November 2010 complained about stability issues and other annoyances that do not really exist on Amazon or Microsoft Azure; the Salesforce.com platform does have some throttling limitations. But it does seem that Google is determined to address the issues and App Engine for Business looks promising.

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One thing I’ve found interesting is that Salesforce.com sees Microsoft Azure as its main competition in the cloud platform space – even though alternatives such as Google and Amazon are better known in this context. The reason is that Azure is perceived as an enterprise platform whereas Google and Amazon are seen more as commodity platforms. I’m not convinced that there is any technical justification for this view, but I can see that Salesforce.com is reassuringly corporate in its approach, and that customers seem generally satisfied with the support they receive, whereas this is often an issue with other cloud platforms. Salesforce.com is also more expensive of course.

The interesting twist here is that Heroku, which hosts Ruby applications, is more aligned with the Google/Amazon/open source community than with the Salesforce.com corporate culture, and this divide has been a topic of much debate here. Salesforce.com says it wants Heroku to continue running just as it has done, and that it will not interfere with its approach to pricing or the fact that it hosts on Amazon’s servers – though it may add other options. While I am sure this is the intention, the Heroku team is tiny compared to that of its acquirer, and some degree of change is inevitable.

The key thing from the point of view of Salesforce.com is that Heroku remains equally attractive to developers, small or large. While Force.com has not failed exactly, it has not succeeded in attracting the diversity of developers that the company must have hoped for. Note that the revenue of Salesforce.com remains 75%-80% from the CRM application, according to a briefing I had yesterday.

What is the benefit to Salesforce.com of hosting thousands of Ruby developers? If they remain on Heroku as it is at the moment, probably not that much – other than the kudos of supporting a cool development platform. But I’m guessing the company anticipates that a proportion of those developers will want to move to the next level, using database.com and taking advantage of its built-in security features which require user accounts on Force.com. Note that features such as row-level security only work if you use the Force.com user directory. Once customers take that step, they have a significant commitment to the platform and integrating with other Salesforce.com services such as Chatter for collaboration becomes easy.

The other angle on this is that the arrival of Heroku and VMForce gives existing Salesforce.com customers the ability to write applications in full Java or Ruby rather than being restricted to tools like Visualforce and the Apex language. Of course they could do this before by using the web services API and hosting applications elsewhere, but now they will be able to do this entirely on the Salesforce.com cloud platform.

That’s how the strategy looks to me; and it will fascinating to look back a year from now and see how it has played out. While it makes some sense, I am not sure how readily typical Heroku customers will transition to database.com or the Force.com identity platform.

There is another way in which Salesforce.com could win. Heroku knows how to appeal to developers, and in theory has a lot to teach the company about evangelising its platform to a new community.

Related posts:

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Why is Salesforce.com acquiring Heroku? Well, for some years an interesting question about Salesforce.com has been how it can escape its cloud CRM niche. The obvious approach is to add further applications, which it has done to some extent with FinancialForce, but it seems the strategy now is to become a platform for custom business applications. We already knew about VMForce, a partnership with VMWare currently in beta that lets you host Java applications that are integrated with Force.com, but it is with the announcements here at Dreamforce that the pieces are falling into place. Database.com for data access and storage; now Heroku for Ruby applications.

These services join several others which Salesforce.com is branding at Force.com 2:

Appforce – in effect the old Force.com, build departmental apps with visual tools and declarative code.

Siteforce – again an existing capability, build web sites on Force.com.

ISVForce – build your own multi-tenant application and sign up customers.

Salesforce.com is thoroughly corporate in its approach and its obvious competition is not so much Google AppEngine or Amazon EC2, but Microsoft Azure: too expensive for casual developers, but with strong Enterprise features.

Identity management is key to this battle. Microsoft’s identity system is Active Directory, with federation between local and cloud directories enabling single sign-on. Salesforce.com has its own user directory and developing on its platform will push you towards using it.

Today’s announcement makes sense of something that puzzled me: why we got a session on node.js at Monday’s Cloudstock event. It was a great session and I wrote it up here. Heroku has been experimenting with node.js support, with considerable success, and says it will introduce a new version next year.

Finally, the Heroku acquisition is great news for Enterprise use of Ruby. Today many potential new developers will be looking at it with interest.

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The Database.com console is a web application that has a console giving access to your databases and showing useful statistics and system information.

You can also create new databases, specifying the schema and relationships.

The details presented in the keynote today were sketchy – we saw applications that honestly could have been built just as easily with MySQL – but there is more information in the FAQ. The Database.com API is through SOAP or REST web services, not SQL. Third parties can create drivers so you can you use it with SQL APIs such as ODBC or JDBC. There is row level security, and built-in full text search.

According to the FAQ, Database.com “includes a native trigger and stored procedure language”.

Pricing starts from free – for up to 100,000 records, 50,000 transactions and 3 users per month. After than it is $10.00 per month per additional 100,000 records, $10.00 per month per additional 150,000 transactions, and $10.00 per user if you need the built-in authentication and security system – which as you would expect is based on the native force.com identity system.

As far as I can tell one of the goals of Database.com – and also the forthcoming chatter.com free public collaboration service – is to draw users towards the force.com platform.

Roger Jennings has analysed the pricing and reckons that Database.com is much more expensive than Microsoft’s SQL Azure – for 500 users and a 50GB database $15,000 per month for Database.com vs a little over $500 for the same thing on SQL Azure, though the two are difficult to compare directly and he has had to make a number of assumptions. Responding to a question at the press and analyst Q&A today, Benioff seemed to accept that the pricing is relatively high, but justified in his view by the range of services on offer. Of course the pricing could change if it proves uncompetitive.

Unlike SQL Azure, Database.com starts from free, which is a great attraction for developers interested in giving it a try. Trying out Azure is risky because if you leave a service running inadvertently you may run up a big bill.

In practice SQL Azure is likely to be more attractive than Database.com for its core market, existing Microsoft-platform developers. Microsoft experimented with a web services API for SQL Server Data Services in Azure, but ended up offering full SQL, enabling developers to continue working in familiar ways.

Equally, Force.com developers will like Database.com and its integration with the force.com platform.

Some of what Database.com can do is already available through force.com and I am not sure how the pricing looks for organizations that are already big salesforce.com users; I hope to find out more soon.

What is interesting here is the way salesforce.com is making its platform more generic. There will be more force.com announcements tomorrow and I expect to to see further efforts to broaden the platform then.

Update – I had a chat with Database.com General Manager Igor Tsyganskiy. He says Microsoft’s SQL Azure is the closest competitor to Database.com but argues that because Salesforce.com is extending its platform in an organic way it will do a better job than Microsoft which has built a cloud platform from scratch. We did not address the pricing comparison directly, but Tsyganskiy says that existing Force.com customers always have the option to “talk to their Account Executive” so there could be flexibility.

Since Database.com is in one sense the same as Force.com, the API is similar. The underlying query language is SOQL – the Salesforce Object Query Language which is based on SQL SELECT though with limitations. The language for stored procedures and triggers is Apex. SQL drivers from Progress Software are intended to address the demand for SQL access.

I mentioned that Microsoft came under pressure to replace its web services API for SQL Server Data Services with full SQL – might Database.com face similar pressure? We’ll see, said Tsyganskiy. The case is not entirely parallel. SQL Server is a cloud implementation of an existing SQL database with which developers are familiar. Database.com on the other hand abstracts the underlying data store – although Salesforce.com is an Oracle customer, Tsyganskiy said that the platform stores data in a variety of ways so should not be thought of as a wrapper for an Oracle database server.

Although Database.com is designed to be used from anywhere, I’d guess that Java running on VMForce with JPA, and following today’s announcement Heroku apps also hosted by Salesforce.com, will be the most common scenarios for complex applications.

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Why Cloudstock? The parallels with Woodstock’s peace love and music are obscure, but I think the idea is revolution of cloud vs revolution of free love, or something. Presumably nothing to do with mud, getting high or sneaking in without paying.

I’m guessing that the PR goal is to position Salesforce.com at the heart of cloud computing. Good PR, but there are many other ways to do cloud.

I’m in a session on Google App Engine and new Google platform technologies – an introductory talk by Christian Schalk. More on that in this separate post.

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He said it was old, not fault tolerant, not elastic, and built on a bad security model since all customers share the same application. “Elastic” in this context means able to scale on demand.

Ellison was introducing Oracle’s new cloud-in-a-box, the Exalogic Elastic Cloud. This features 30 servers and 360 cores packaged in a single cabinet. It is both a hardware and software product, using Oracle’s infiniband networking internally for fast communication and the Oracle VM for hosting virtual machines running either Oracle Linux or Solaris. Oracle is positioning Exalogic as the ideal machine for Java applications, especially if they use the Oracle WebLogic application server, and as a natural partner for the Exadata Database Machine.

Perhaps the most interesting aspect of Exalogic is that it uses the Amazon EC2 (Elastic Compute Cloud) API. This is also used by Eucalyptus, the open source cloud infrastructure adopted by Canonical for its Ubuntu Enterprise Cloud. With these major players adopting the Amazon API, you could almost call it as standard.

Ellison’s Exalogic cloud is a private cloud, of course, and although he described it as low maintenance it is nevertheless the customer’s responsibility to provide the site, the physical security and to take responsibility for keeping it up and running. Its elasticity is also open to question. It is elastic from the perspective of an application running on the system, presuming that there is spare capacity to run up some more VMs as needed. It is not elastic if you think of it as a single powerful server that will be eye-wateringly expensive; you pay for all of it even though you might not need all of it, and if your needs grow to exceed its capacity you have to buy another one – though Ellison claimed you could run the entire Facebook web layer on just a couple of Exalogics.

In terms of elasticity, there is actually an advantage in the Salesforce.com approach. If you share a single multi-tenanted application with others, then elasticity is measured by the ability of that application to scale on demand. Behind the scenes, new servers or virtual servers may come into play, but that is not something that need concern you. The Amazon approach is more hands-on, in that you have to work out how to spin up (or down) VMs as needed. In addition, running separate application instances for each customer means a larger burden of maintenance falling on the customer – which with a private cloud might mean an internal customer – rather than on the cloud provider.

In the end it is not a matter of right and wrong, more that the question of what is the best kind of cloud is multi-faceted. Do not believe all that you hear, whether the speaker is Oracle’s Ellison or Marc Benioff from Salesforce.com.

Incidentally, Salesforce.com runs on Oracle and Benioff is a former Oracle VP.

Postscript: as Dennis Howlett observes, the high capacity of Exalogic is actually a problem – he estimates that only 5% at most of Oracle’s customers could make use of such an expensive box. Oracle will address this by offering public cloud services, presumably sharing some of the same technology.

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Chatter is reducing email usage for adopters, apparently; Benioff says by 40% in his own company. Another of its advantages (aside from general social media goodness) is that users cannot attach documents directly, but only links to documents – pass by reference not by value – which is a better approach to collaboration. Of course you can do this in emails as well, but people habitually do not. It makes you think – maybe the likes of Outlook should do this by default, saving no end of space in corporate mailboxes. Or perhaps we should just use Chatter instead.

But what about the developer angle, the Force.com platform that lets you build custom applications? I attended a session on the subject. There was a comment from partner Nimbus which caught my ear – the speaker said that they avoid writing custom Apex code wherever possible, and generally find ways to use the platform’s built-in features instead. His rationale: “You will have to live with that code for ever”. It is another angle on declarative programming, in which you declare your intentions and let some underlying engine transform them into actual code. The advantage is not only ease of development, but also that improvements in the engine can enhance the application without any need to rewrite code.

I asked what is new and what is coming in the Force.com platform. Chatter is one element; one of its key features is that applications can “chat” as well as individuals. Another theme is workflow tools, and integrating the technology acquired with Informavores, which is being rebuilt on the Salesforce.com platform as Visual Process Manager. In tune with the remarks from Nimbus, there is also an effort to reduce the need for Apex code and to offer guided steps that business users can apply without the need of a development specialist. Another focus is scalability – “people are starting to use the platform in ways that we didn’t think of” – which mean back end work to handle their demands. Finally, there is the joint development with VMWare called VMForce that lets you run Java with full access to the Force.com API.

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The Register has posted more details. The filing[pdf] lists nine counts of alleged infringement:

1. Method for mapping between logical data and physical data

2. System and method for providing and displaying a web page having an embedded menu

3. Method and system for stacking toolbars in a computer display

4. Automated web site creation using template driven generation of active server page applications

5. Aggregation of system settings into objects

6. Timing and velocity control for displaying graphical information (2 counts)

7. Method and system for identifying and obtaining computer software from a remote computer

8. System and method for controlling access to data entities in a computer network

I make no comment on the legal validity of these claims. On the broader issue though, Microsoft says this:

Microsoft has been a leader and innovator in the software industry for decades and continues to invest billions of dollars each year in bringing great software products and services to market. We have a responsibility to our customers, partners, and shareholders to safeguard that investment, and therefore cannot stand idly by when others infringe our IP rights

My observation is that I have seen Salesforce.com shake up the industry by making its multi-tenant online application and platform work for its customers. Although there are some parallels, the Salesforce.com platform is more radical than Microsoft Azure and has more potential to reduce costs, because it is based on a single shared application, rather than being a hosted platform for custom applications. The differences are not absolute, because the Force.com platform also supports custom applications, and Microsoft also offers multi-tenanted applications, but if you look at the core propositions the distinction is valid.

Again, I have no idea what the legal outcome will be, but from a public relations perspective this does not look good for Microsoft. It raises the question: is Microsoft litigating because it cannot succeed in the market?

Small companies and patent trolls sue large companies because they have little to lose, and potentially a lot to gain. Large companies show more restraint. I have always assumed that there are thousands of plausible patent infringements among the largest technology companies, and that the industry would descend into a kind of litigation meltdown if all of them were pursued, to nobody’s benefit other than lawyers.

The question then: why is Microsoft going after Salesforce.com now?

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