On-Demand Best Practices from the Salesforce.com CIO Trae Chancellor Track: IT Exec

Safe Harbor Statement “ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates. Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com /investor . Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

“ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.

Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com /investor . Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

We need to stop spending “Dead Money” March 2007 On average, $8 out of every $10 spent in IT is ‘dead money’ - not contributing directly to business change or growth September 2006 … infrastructure and utility applications account for 68 percent, or more than two-thirds of all IT spending; however, they make no direct business performance improvement.

Move from Infrastructure to Innovation Innovation Infrastructure Services Security Network Storage Operating System Database App Server Web Server Data Center Disaster Recovery Application Services Security Sharing Integration Customization Web Services API Multi-Language Multi-Currency Workflow Analytics Multi-Device Messaging Search Operations Services Authentication Availability Monitoring Patch Mgmt Upgrades Backup NOC CIO

How Salesforce.com IT Innovates Application and Business Process Rationalization Workflow Analytics Security Usability Data intensity and logic intensity Based on the requirements we choose Extend native functionality of existing Salesforce model Create custom app AppExchange partnership with integration

Application and Business Process Rationalization

Workflow

Analytics

Security

Usability

Data intensity and logic intensity

Based on the requirements we choose

Extend native functionality of existing Salesforce model

Create custom app

AppExchange partnership with integration

IT Solution Delivery App Portfolio management IT Project Pipeline visibility Demand management Investment evaluations Project management Status reporting Issue & risk management Release visibility Resource management Capacity planning by skill, resource type, date Demand analysis Dashboards and Reports

Portfolio management

IT Project Pipeline visibility

Demand management

Investment evaluations

Project management

Status reporting

Issue & risk management

Release visibility

Resource management

Capacity planning by skill, resource type, date

Demand analysis

Dashboards and Reports

Intranet Integration Business Problem Integrate Intranet functions with Salesforce Multiple applications and databases Business Solution Salesforce Call Center Solutions Case Management Quarterly certifications with workflow and reports

Business Problem

Integrate Intranet functions with Salesforce

Multiple applications and databases

Business Solution

Salesforce Call Center

Solutions

Case Management

Quarterly certifications with workflow and reports

Ticket Process

Quarterly Certification

Automate Paid Time Off Process Business Problem Manual processes and limited integration Process was prone to error due to manual entry Managers had poor visibility into employees availability Reporting for compliance was inefficient Business Solution Automated submissions and approval of TO requests in Custom object Eliminated manual data entry Team TO calendar and visibility Integrated with HR and Payroll systems

Business Problem

Manual processes and limited integration

Process was prone to error due to manual entry

Managers had poor visibility into employees availability

Reporting for compliance was inefficient

Business Solution

Automated submissions and approval of TO requests in Custom object

Eliminated manual data entry

Team TO calendar and visibility

Integrated with HR and Payroll systems

Time-Off Manager

Manage the Recruiting Process Business Problem Recruiting had to be managed manually by HR Spreadsheets Leads were manually entered and tracked from Internet Job profiles were managed separately from the rest of the HR information Business Solution Integration between salesforce.com recruiting application HRMS and Internet automates new hire process Once requisition changes status to Hired, new hire record is recorded in Workday Eliminated manual data entry Pipeline visibility and Dashboards

Business Problem

Recruiting had to be managed manually by HR

Spreadsheets

Leads were manually entered and tracked from Internet

Job profiles were managed separately from the rest of the HR information

Business Solution

Integration between salesforce.com recruiting application HRMS and Internet automates new hire process

Once requisition changes status to Hired, new hire record is recorded in Workday

Eliminated manual data entry

Pipeline visibility and Dashboards

Recruiting

ERP – Integration (Quote-to-Cash) Business Problem Salesforce is used for Order management and Oracle is used for Accounts Receivable Customers need access to their invoices and payment history Business Solution Automated billing and synchronization with Oracle AR Billing code has been created using APEX Draft invoices are sent to Oracle, final invoices are imported back to Salesforce for presentation Payments are imported from Oracle to Salesforce for presentation

Business Problem

Salesforce is used for Order management and Oracle is used for Accounts Receivable

Customers need access to their invoices and payment history

Business Solution

Automated billing and synchronization with Oracle AR

Billing code has been created using APEX

Draft invoices are sent to Oracle, final invoices are imported back to Salesforce for presentation

Payments are imported from Oracle to Salesforce for presentation

ERP

Sales Commissions – The Platform and Integration Business Problem Commission system performance and legacy systems Processing and reports not aligned with business growth Business Solution Commissionable events created in Salesforce using APEX Integration to Xactly for processing Roll-out of AppExchange Estimator for Sales commissions No additional hardware, database licenses, datacenter space or administration Retired legacy systems

Business Problem

Commission system performance and legacy systems

Processing and reports not aligned with business growth

Business Solution

Commissionable events created in Salesforce using APEX

Integration to Xactly for processing

Roll-out of AppExchange Estimator for Sales commissions

No additional hardware, database licenses, datacenter space or administration

Retired legacy systems

Commission Process

Change Management Process Innovation and demand will come from everywhere Development/QA/Release processes Innovate quickly Agile methods Sandbox and full user acceptance testing IT Change Control Full governance and compliance activities

Innovation and demand will come from everywhere

Development/QA/Release processes

Innovate quickly

Agile methods

Sandbox and full user acceptance testing

IT Change Control

Full governance and compliance activities

On-Demand Solutions Building and deploying solutions on the Platform Not just for CRM anymore Rationalization Innovative Application Examples Extend native functionality of existing Salesforce model Create custom app AppExchange partnership with integration Change Management and Operations

Building and deploying solutions on the Platform

Not just for CRM anymore

Rationalization

Innovative Application Examples

Extend native functionality of existing Salesforce model

Create custom app

AppExchange partnership with integration

Change Management and Operations

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Please score the session from 5 to 1 (5=excellent,1=needs improvement) in the following categories:

Overall rating of the session

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Relevance of the session to your organization

Additionally, please score each individual speaker on:

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Trae Chancellor VP, Information Technology Alex Denissov Director, IT Development Chris Tiernan Manager, Integration Development QUESTION & ANSWER SESSION Salesforce Salesforce Salesforce

: Five paths to integration success A comprehensive family of technologies built on top of the Apex Web Services API Mash-ups from AppExchange Native Desktop Connectors Integration Middleware Connectors Developer Toolkits Native ERP Connectors 2 3 4 5 1