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In 2001, Marc Benioff, the CEO of Salesforce, had the privilege of seeking advice from the legendary Steve Jobs. Salesforce was still in its early stages, and Benioff faced numerous challenges in scaling the company. Over a dinner meeting, Jobs offered three pivotal pieces of advice that would shape Salesforce's future.
Photo: Nicholas Kamm / APP/ Getty Images
The Three Key Pieces of Advice
Jobs emphasized the need for rapid growth, telling Benioff,
"You better be 10 times larger in 24 months, or it's over."
This advice underscored the importance of aggressive expansion and scalability in the tech industry. For Salesforce, this meant not just increasing their customer base but also expanding their product offerings and market reach.
Jobs advised Benioff to land a huge client, suggesting a company like Avon. Having a major client would not only provide substantial revenue but also validate Salesforce's service in the eyes of other potential customers. This strategy is still relevant today, as securing high-profile clients can significantly boost a company's reputation and credibility.
Perhaps the most cryptic piece of advice was to "build an application economy." When Benioff asked Jobs what that meant, Jobs admitted he wasn't sure but insisted it was essential. This advice puzzled Benioff for a few years until he realized that Jobs was suggesting Salesforce should evolve from being merely an application to becoming a platform.
Understanding the Application Economy
The application economy refers to an ecosystem where applications, particularly mobile and cloud-based, are developed, distributed, and monetized. It involves creating a platform that supports various applications, which can be developed by third-party developers, businesses, and users.
Examples of the Application Economy
Apple's App Store revolutionized the way software was distributed and consumed. Developers could create apps and distribute them globally through a single platform, creating a thriving ecosystem of millions of apps. Users benefited from a vast selection of applications, enhancing the functionality of their devices.
Similar to Apple's App Store, Google Play Store provides a platform for Android app developers to distribute their apps. The Play Store supports a wide range of applications, from productivity tools to games, contributing to the vibrant Android ecosystem.
Inspired by Jobs' advice, Salesforce developed AppExchange, a marketplace for business applications. AppExchange allows third-party developers to create applications that integrate with Salesforce's platform. These applications extend Salesforce's functionality and offer customized solutions for various business needs. Today, AppExchange is a crucial part of Salesforce's success, providing value to its customers and fostering innovation within its ecosystem.
The Impact of Jobs' Advice
By following Jobs' advice, Benioff transformed Salesforce from a single-application company into a robust platform supporting a diverse application economy. This shift not only spurred Salesforce's growth but also positioned it as a leader in cloud computing and enterprise solutions. The company's ability to scale rapidly, secure major clients, and foster an application ecosystem has been key to its sustained success.
Conclusion
Marc Benioff's story is a testament to the power of mentorship and visionary thinking. Steve Jobs' advice, though initially enigmatic, proved to be instrumental in shaping Salesforce's trajectory. By embracing the concept of an application economy, Salesforce was able to innovate, scale, and thrive in the competitive tech landscape. This story highlights the importance of adaptability, strategic thinking, and the willingness to explore new paradigms in business. Listen to Marc: