Each year, Salesforce revises its V2MOM, a comprehensive planning document encompassing vision, values, methods, obstacles, and measures. CEO Marc Benioff has emphasized its pivotal role, stating it has “guided every decision at Salesforce” since the company’s inception 25 years ago.
However, a challenge arose in early 2023. The surge of ChatGPT went viral, catching Salesforce’s strategy off guard.
“The V2MOM had nothing about generative AI,” Parker Harris, Salesforce’s co-founder alongside Benioff, disclosed to CNBC.
This marked a unique situation for Salesforce, unprepared for an emerging technology trend. To establish leadership in generative artificial intelligence, the company swiftly needed to amend its guiding document to align its 73,000 employees with the evolving landscape, permeating Silicon Valley and various industries from manufacturing to medicine.
Salesforce found itself in a competitive arena against tech giants like Amazon, Google, and Microsoft, alongside burgeoning startups fueled by capital and innovation. Yet, amid a restructured M&A approach and a shift from splashy acquisitions, Salesforce had to pivot towards a strategy centered on development.
This pivotal moment saw Benioff turning to his longtime ally, Harris.
While Harris remains a prominent figure within the software industry, he prefers operating behind the scenes, shunning the limelight despite his integral role in Salesforce’s fabric.
Internally, Harris spearheaded the integration of generative AI into Salesforce’s core applications following its inclusion in the revised V2MOM. This involved exploring novel techniques such as retrieval-augmented generation and augmenting AI models with external information for enhanced outcomes.
Amid debates on investing billions into proprietary large language models (LLMs), Salesforce observed clients leveraging multiple LLMs. Consequently, the company adjusted its investment focus and bolstered its research endeavors, leveraging models from AI startup Anthropic and OpenAI’s GPT-4.
In September, Benioff spotlighted OpenAI CEO Sam Altman at Salesforce’s annual Dreamforce conference, signaling the company’s commitment to AI innovation.
In contrast to past appearances at Dreamforce, where Harris entertained the audience in superhero attire, 2023 demanded a more serious tone. Harris adopted a professional demeanor, donning a checked blue suit that complemented his thin-framed glasses.
In his keynote address, Harris highlighted the significance of the Data Cloud, originally named Genie, which provides real-time data insights.
Around 2016, Harris made the strategic decision to migrate a substantial portion of Salesforce’s IT infrastructure to the public cloud, facilitating tighter integration of the company’s diverse assets acquired over the years. This move paved the way for the launch of the Data Cloud.
Harris emphasized the pivotal role of the Data Cloud, stating to CNBC, “I think we would have been in a much worse place without it.” Its importance is underscored by Benioff’s frequent mentions of it, with 58 references made during the company’s earnings call in February.
Despite his prominence as a technical leader in one of the world’s largest software firms, Harris’s academic background lies in English. He holds a bachelor’s degree from Middlebury College in Vermont.
Harris’s fascination with computers began early in his life. Recalling his childhood in North Carolina, he mentioned to Business Insider in 2015 that he started programming on an Apple II computer.
In the early 1990s, Harris relocated to the San Francisco Bay Area, where he secured a software engineering position at Metropolis Software. It was there that he met developers Frank Dominguez and Dave Moellenhoff, with whom he later co-founded Left Coast Software, a Java consulting firm.
During their time at Saba Software, an online learning company co-founded by former Oracle executive Bobby Yazdani, Benioff shared his vision for web-based sales software with Yazdani. Recognizing the potential synergy, Yazdani recommended Benioff meet Harris, Dominguez, and Moellenhoff.
Yazdani recalled Harris as an abstract thinker with a clear understanding of what was technologically achievable.
The inception of Salesforce.com occurred in the fall of 1998, catalyzed by a lunch meeting between Benioff and Harris at Kincaid’s, a restaurant in Burlingame overlooking the San Francisco Bay. Benioff, a towering figure with a penchant for lively discussions, found a complementary partner in Harris, whose quiet demeanor and aversion to conflict balanced the dynamic.
Former Salesforce executive Brett Queener likened their partnership to that of Batman and Robin, emphasizing Harris’s role in diffusing tension and drama within the organization.
Following the lunch meeting, Benioff invited Harris, Dominguez, and Moellenhoff to his home in San Francisco’s Telegraph Hill neighborhood, where the groundwork for Salesforce.com was laid.
On March 8, 1999, Salesforce.com was officially founded. Harris, then 32, celebrated the occasion with his parents, wife, and young daughter at the company’s humble beginnings—a one-bedroom apartment adjacent to Benioff’s residence. A video capturing this milestone was shared by Harris on YouTube eight years later, offering a glimpse into the early days of Salesforce.com.
While Harris shared the title of co-founder with Benioff, his partner held a significantly larger equity stake after injecting $6 million of his funds into the company during its early stages.
This financial commitment contributed to Benioff’s current net worth of approximately $11 billion, with a stake in Salesforce valued at over $7 billion, whereas Harris’s holdings are valued at nearly $600 million.
Despite his reserved nature, Harris enjoys certain luxuries. He has invested in fine red wines from France and Italy, as well as artworks by Ruth Asawa and Josef Albers. He owns properties in Nantucket and San Francisco’s Pacific Heights, where he recently renovated the family home, emphasizing a focus on natural light.
In his office, situated atop his home, Harris indulges in his love for music, often donning headphones to listen to artists like the Avett Brothers, Radiohead, and Miles Davis. Outside of work, he enjoys golfing, and surfing, and, according to a coworker, is an “enthusiastic” dancer. Additionally, he serves on Middlebury’s board of trustees.
At Salesforce, Harris spearheaded the development of the platform allowing companies to extend the functionality of its software, alongside initiatives to enhance Salesforce’s mobile compatibility. He championed the creation of the next-generation Salesforce Lightning and Chatter, an enterprise social network.
Harris demonstrated foresight regarding AI as early as Dreamforce 2009, envisioning its potential to help Chatter identify in-house experts on various topics. Despite acknowledging his limitations in understanding AI, he recognized its importance and assembled a team of experts to address it.
“I don’t understand that area,” Harris admitted to a group of journalists. “But I understand we have to solve it. I have hired some people in that area who do understand it.”
Tough time in social
During this period, social media was dominating conversations, with Facebook gaining significant traction despite being a private entity. In the corporate sphere, a startup named Yammer was heralded as the workplace equivalent of Facebook.
Within Salesforce, discussions emerged among employees about the potential for information to spread virally among sales and customer service teams. Benioff recognized the significance and made it a top priority.
Initially, Harris allocated eight engineers to the project, but Benioff urged for a larger scale. Following discussions with engineering leaders, Harris secured a headcount of 75 engineers. However, this still fell short of Benioff’s expectations.
During a briefing on the project’s progress, Benioff expressed dissatisfaction, leaving Harris visibly unsettled. Despite his initial efforts, Harris pledged to revise the plan to meet Benioff’s standards.
Ultimately, Harris managed to mobilize 80% of Salesforce’s engineers to work on Chatter. However, the product failed to gain significant traction. Meanwhile, Microsoft made a decisive move by acquiring Yammer in 2012 for $1.2 billion, positioning itself strategically in the market.
In a notable shift, Salesforce later acquired Slack in 2021 for $27.1 billion, marking its largest acquisition to date.
However, Harris’s most impactful decision during his tenure at Salesforce was the transition to the public cloud. This decision wasn’t without its challenges, as it faced opposition from within the company.
While some engineers feared it would jeopardize the company’s cost structure, others were concerned about falling behind competitors if they didn’t embrace cloud technology.
Benioff, typically vocal in decision-making, found himself at a loss amidst the internal discord.
Harris recognized the benefits that startups gained from leveraging Amazon Web Services (AWS) for their infrastructure needs. Observing Salesforce’s struggle to develop a robust platform for app development while partnering with VMware, Harris concluded that embracing public cloud services like AWS was crucial for Salesforce’s survival.
Despite facing resistance, Harris championed the move, viewing it as an essential step for the company’s future. As it became integrated into Salesforce’s planning framework, thousands within the organization followed suit.
While the transition to the cloud initially incurred significant costs, Salesforce later committed to longer-term cloud agreements, with AWS emerging as a primary beneficiary. Harris noted that Salesforce is exploring partnerships with other providers, acknowledging Oracle’s strong platform offerings.
Harris’s leadership in navigating these pivotal decisions underscores his role as a strategic visionary within Salesforce.
During the heyday of social media, with “social” being the buzzword of the time, Facebook was gaining momentum while still a private entity.
A startup named Yammer was likened to the workplace equivalent of Facebook, sparking conversations among a few Salesforce employees about the potential for information to go viral within sales and customer service teams. Intrigued by this concept, Benioff insisted that it become the company’s top priority.
Initially, Harris assigned eight engineers to the project, but Benioff urged for a more significant effort. Harris consulted with engineering leaders and secured a team of 75 engineers. However, even this was deemed insufficient.
During a briefing on the project’s progress, Benioff expressed dissatisfaction, leaving Harris visibly unsettled. Despite his initial efforts, Harris pledged to revise the plan to meet Benioff’s expectations.
Ultimately, Harris managed to mobilize 80% of Salesforce’s engineers to work on Chatter. However, despite these efforts, the product failed to gain significant traction. Meanwhile, Microsoft seized the opportunity by acquiring Yammer in 2012 for $1.2 billion, positioning itself strategically in the market.
Salesforce later made a significant move by acquiring Slack in 2021 for $27.1 billion, marking its largest acquisition to date.
However, perhaps Harris’s most impactful decision during his tenure at Salesforce was the transition to the public cloud. This decision faced opposition from within the company, with concerns about its impact on the cost structure and fears of falling behind competitors if cloud technology wasn’t embraced.
Observing the advantages gained by startups through outsourcing data center needs to Amazon Web Services (AWS), Harris recognized the existential threat of not embracing public cloud services like AWS. Despite facing resistance, Harris championed the move, viewing it as essential for Salesforce’s future.
As this decision became integrated into Salesforce’s planning framework, it influenced thousands within the organization. Despite the initial costs, Salesforce committed to longer-term cloud agreements, with AWS emerging as a primary beneficiary.
While Benioff spends a considerable amount of time at his estate in Hawaii, Harris utilizes various services to keep up with him, including mobile, text, FaceTime, and now weekly meetings on Slack and Salesforce integrations.
Harris hopes that his involvement will persuade Slack employees to remain with the company despite the recent executive exodus.
