What Do Partners Really Want From Vendors? Elay Cohen, salesforce.com Michael Volk, Fishnet Mark Parrinello, Kovarus John Eaton, Xtech Sales: Channel & Partner Management

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“ 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 have an amazing conference ahead of us 10 amazing channel tracks What partners want Partner lead ROI Adoption strategies Coverage models Change management Taking PRM to next level Hands On Implementation secrets Salesforce's Partner Program Road map

10 amazing channel tracks

What partners want

Partner lead ROI

Adoption strategies

Coverage models

Change management

Taking PRM to next level

Hands On

Implementation secrets

Salesforce's Partner Program

Road map

The product management team is here for you Will Moxley Adi Kuruganti Matt Morris Find one of us Talk about your existing implementation Talk about a planned implementation Demo grounds What’s possible with PRM

Will Moxley

Adi Kuruganti

Matt Morris

Find one of us

Talk about your existing implementation

Talk about a planned implementation

We’ve built innovative tools for the channel From Tool Kit to PRM leadership in less than 24 months Idea to Release for a Top 50 Idea = 2.2 Qtrs

Our secret: Maniacal focus on user success Products in the portal Role hierarchies Accounts in the portal Partners create opportunities Campaign history Forgot password Approval workflow Approval inbox Contact level sharing for channel managers Reassign leads by a partner Joint selling Vote Over 80,000 Votes In Less than a Year!

And here is a sneak preview of the Salesforce Network Update Subscribe Bringing The Power of the Community to Enterprise Collaboration Invite Share

35,000 customers. One Network. Instant Integration.

PRM has brought tremendous ROI benefits to many

Tens of millions in new deal registrations Challenge Internal use only Solution Results The program is global and its driving net new pipeline and revenues to the bottom line. “ ” — VP Alliances, Bobby Napiltonia Exceeded deal registration program objectives No debate about partner sourced deals Improved payout accuracy 70% more authorized partners Reduce approval time weeks to minutes Reduce channel conflict Manage program levels Centralized partner authorization tools Deal registration portal Legal compliance program and integrated terms with click through terms Planned service registration program to be launched in Q1

Exceeded deal registration program objectives

No debate about partner sourced deals

Improved payout accuracy

70% more authorized partners

Reduce approval time weeks to minutes

Reduce channel conflict

Manage program levels

Centralized partner authorization tools

Deal registration portal

Legal compliance program and integrated terms with click through terms

Planned service registration program to be launched in Q1

Best practice channel adoption strategies drives channel revenues Challenge Shifted from direct to 100% indirect NO visibility to channel deals No way to track partner performance Internal use only Solution Results Salesforce PRM is the cornerstone of our entire channel model. The reps love it and our partners are using it. “ ” GM North American Operations Lead distribution Deal registration Targeted communications Training Certifications PRM partner sales have doubled Y over Y 75% adoption in July 4.2 million partner transactions

Challenge

Shifted from direct to 100% indirect

NO visibility to channel deals

No way to track partner performance

Solution

Results

Lead distribution

Deal registration

Targeted communications

Training

Certifications

PRM partner sales have doubled Y over Y

75% adoption in July

4.2 million partner transactions

Non-traditional dealer channel “energized” by PRM Challenge Dealer inventory replenishment ad hoc Inaccurate product reporting Decentralized reporting Internal use only Solution Results We now know what our dealers are doing and our dealers have better tools to do their jobs. “ ” Director, Dealer Relations Branded portal Activity tracking Product tracking at stores Product reporting Dealers are use the tool track inventories HQ has improved product reporting Improved order efficiency

Challenge

Dealer inventory replenishment ad hoc

Inaccurate product reporting

Decentralized reporting

Solution

Results

Branded portal

Activity tracking

Product tracking at stores

Product reporting

Dealers are use the tool track inventories

HQ has improved product reporting

Improved order efficiency

Channel growth Account management Partner analytics Optimize your channel partner relationships Time to value Portals in minutes Easy administration Partner success Partner self-service Deal collaboration

Channel growth

Account management

Partner analytics

And the community of channel tools and support is growing Quoting and configuration Implementation specialists Channel Apps

Quoting and configuration

500% increase in partner transactions in 6 months

PRM Adoption is unprecedented in channel history Successful companies are seeing between 70 and 80% adoption Partners are using the portals

Successful companies are seeing between 70 and 80% adoption

Partners are using the portals

Channel conflict is still top “vendor” issue 39.7% of partners said they lost a deal to a manufacturing direct sales rep 56% of partner companies said manufacturer had lower price

39.7% of partners said they lost a deal to a manufacturing direct sales rep

56% of partner companies said manufacturer had lower price

Cash flow is the number one obstacle to growth by partners

Cash flow is the number one obstacle to growth by partners

Enough from me, let’s hear what our panel has to say Michael Volk, COO Fishnet Mark Parrinello, VP Sales Kovarus John Eaton, CEO XTech

About Leading solution provider and integrator Plus 50 more vendors Works with…

What are your top 5 business challenges today? Potential competition with Vendors Vendors “services” “ Issues” with vendor sales forces Managing ever increase number of vendors & products Vendor direction vs. Solutions Provider / VAR direction “ pure play” solution provider vs. “jack of all trades” International relationships, channel strategy / ROEs Margin pressure across the board

Potential competition with Vendors

Vendors “services”

“ Issues” with vendor sales forces

Managing ever increase number of vendors & products

Vendor direction vs. Solutions Provider / VAR direction

“ pure play” solution provider vs. “jack of all trades”

International relationships, channel strategy / ROEs

Margin pressure across the board

What would you tell a vendor to change? Bring us in earlier in sales cycle Let us put the Value in VAR Have well defined and clearly understood “Deal Registration Process” Understand the VAR / Solutions providers point of view when designing your channel strategy Understand relationship & differences between adjusting VAR discounts and vendor list prices “ Spreads” values are much more important to us than “Raw” values Watch what you do in Services Many Solutions Providers / VARs live and die by services revenue Attempt to limit Price List and Programmatic changes

Bring us in earlier in sales cycle

Let us put the Value in VAR

Have well defined and clearly understood “Deal Registration Process”

Understand the VAR / Solutions providers point of view when designing your channel strategy

Understand relationship & differences between adjusting VAR discounts and vendor list prices

“ Spreads” values are much more important to us than “Raw” values

Watch what you do in Services

Many Solutions Providers / VARs live and die by services revenue

Attempt to limit Price List and Programmatic changes

About Leading technology integrator Top 5 vendors we work with

What are your top challenges today? Maintaining margins - being able to win the deals Competing with the large VARS Building a loyal customer base to support cash flow Keeping everyone happy; customers & manufacturers Efficient lead generation

Maintaining margins - being able to win the deals

Competing with the large VARS

Building a loyal customer base to support cash flow

Keeping everyone happy; customers & manufacturers

Efficient lead generation

What would you tell a vendor to change? Help fund us into new markets/geographies Ongoing training both Sales/positioning Technical Empower us to drive the sale cycles Articulate clearly their short term and long term expectations

Help fund us into new markets/geographies

Ongoing training both

Sales/positioning

Technical

Empower us to drive the sale cycles

Articulate clearly their short term and long term expectations

Xtech is a Systems Integrator focusing on Government, Education and Enterprise clients Projects Include: New de Young Museum in San Francisco 311 Call Center for the City and County of San Francisco FIDS and Visual Paging Project at SFO 700 machine rollout, server and network upgrade for K-16 School

Xtech is a Systems Integrator focusing on

Government, Education and Enterprise clients

Projects Include:

New de Young Museum in San Francisco

311 Call Center for the City and County of San Francisco

FIDS and Visual Paging Project at SFO

700 machine rollout, server and network upgrade for K-16 School

What are your top challenges today? Ensuring that services are bundled with product sales Pressure on margins on pure hardware deals Partnering not competing with manufacturers Adding value at all levels and being willing to step away when we cannot Managing growth without lowering quality

Ensuring that services are bundled with product sales

Pressure on margins on pure hardware deals

Partnering not competing with manufacturers

Adding value at all levels and being willing to step away when we cannot

Managing growth without lowering quality

What would you tell a vendor to change? Must have culture of working with resellers or expect to go it alone. Or that we will compete against you Be consistent in your policies toward us People and relationships make the difference when products are of similar quality and price Selling your product or service has to be profitable for both parties

Must have culture of working with resellers or expect to go it alone. Or that we will compete against you

Be consistent in your policies toward us

People and relationships make the difference when products are of similar quality and price

Selling your product or service has to be profitable for both parties

QUESTION & ANSWER SESSION

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