Strategies For Partner Recruitment & Channel Account Management: A Customer Panel Ken Creager , Meru Networks, Inc. Ernie Megazzini , Network Physics, Inc. Marianne Carter, Phoenix Technologies Adi Kuruganti , Salesforce.com Track: Channel Executives

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“ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements the achievement of which involves 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. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

The risks and uncertainties referred to above include - but are not limited to - risks associated with the integration of Sendia Corporation’s technology, operations, infrastructure and personnel with ours; unexpected costs or delays incurred in integrating Sendia with salesforce.com, which could adversely affect our operating results and rate of growth; any unknown errors or limitations in the Sendia technology; any third party intellectual property claims arising from the Sendia technology; customer and partner acceptance and deployment of the AppExchange and AppExchange Mobile platforms; interruptions or delays in our service or our Web hosting; our new business model; breach of our security measures; possible fluctuations in our operating results and rate of growth; 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 CRM service; 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, including our Form 10-K for the fiscal year ended January 31, 2006. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor .

Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Agenda Introductions Typical Challenges Best Practices Customer Stories Meru Networks Network Physics Inc. Phoenix Technologies Salesforce PRM Solution Summary Question and Answers

Introductions

Typical Challenges

Best Practices

Customer Stories

Meru Networks

Network Physics Inc.

Phoenix Technologies

Salesforce PRM Solution Summary

Question and Answers

Introductions Ken Creager Senior Director, Strategic Markets Ernie Megazzini Senior Director Channels & Alliances Meru Networks Marianne Carter Phoenix Technologies Network Physics Director, Global Channel Marketing

What Channel Challenges Are You Facing Today? Mind share? Visibility? Scale? Adoption? Do you know who your top performing partners are? Do you know why they are your top performers? ” “

The Beginning Of Partner Lifecycle Management Achieve scale Vertical coverage Geographic coverage Specialization Manage cost of sale Recruitment, qualification, activation and on-boarding Goal: Make more of your partners sell as much as your strategic partners

Achieve scale

Vertical coverage

Geographic coverage

Specialization

Manage cost of sale

How Effective Is Your Channel Recruitment? High numbers of partner registrations? Short qualification and approval times? Great partner ramp-up programs? Quick time to volume for new partners? Metrics and dashboards in place to gauge success

High numbers of partner registrations?

Short qualification and approval times?

Great partner ramp-up programs?

Quick time to volume for new partners?

Metrics and dashboards in place to gauge success

Ken Creager Senior Director, Strategic Markets MERU NETWORKS [email_address]

Company Introduction Private company, backed by 9 global Venture Capital firms Locations: Sunnyvale, Bangalore, Tokyo, London, Stockholm, HK F500 customers in Healthcare, Education, Retail, Manufacturing and more Leading the market in solutions for wireless VoIP infrastructure Award winning wireless product family Wireless Controllers Industry leading access points and switches

Private company, backed by 9 global Venture Capital firms

Locations: Sunnyvale, Bangalore, Tokyo, London, Stockholm, HK

F500 customers in Healthcare, Education, Retail, Manufacturing and more

Leading the market in solutions for wireless VoIP infrastructure

Award winning wireless product family

Wireless Controllers

Industry leading access points and switches

Key Challenges Faced Business Challenge Build best in class channel program with global reach Program phases Development, Recruitment, Training, Productive, Engaged….. Aligned Develop automation to reduce approval and processing time Create a user friendly application and provisioning process Develop performance measurement and metrics Technology Challenge Limited process, automation or systems integration Existing Salesforce implementation poorly architected

Business Challenge

Build best in class channel program with global reach

Program phases

Development, Recruitment, Training, Productive, Engaged….. Aligned

Develop automation to reduce approval and processing time

Create a user friendly application and provisioning process

Develop performance measurement and metrics

Technology Challenge

Limited process, automation or systems integration

Existing Salesforce implementation poorly architected

How We Addressed The Challenges Defined new business goals, partner program and desired architecture Completed process review and data analysis Initial data clean up – 300 hours, new hierarchies, new work flow rules…. Developed integration process Contracted an architectural “Expert” Developed monthly update program Developed Web-to-Lead Form Defined new approval process Web To Lead form

Defined new business goals, partner program and desired architecture

Completed process review and data analysis

Initial data clean up – 300 hours, new hierarchies, new work flow rules….

Developed integration process

Contracted an architectural “Expert”

Developed monthly update program

Developed Web-to-Lead Form

Defined new approval process

Increased channel scale from 30 to 270 partners Reduced recruitment process time from 10 days to 2 hours 100% improvement in staff utilization Automation improved data accuracy Simplified growth initiatives New Strategy Translated Into Better Results

Increased channel scale from 30 to 270 partners

Reduced recruitment process time from 10 days to 2 hours

100% improvement in staff utilization

Automation improved data accuracy

Simplified growth initiatives

Ernie Megazzini Senior Director Channels & Alliances [email_address]

Company Introduction Leader in real-time application performance insights 20 sales personnel covering 15 countries 85 partners on the portal (320 users) Recent media coverage: Channel Insider: “Long-tail of the channel” NetworkWorld: “Network Physics hones Application Mgmt focus” eWeek: “Network Physics ups Apps speed” Processor.com, echannelline.com INDUSTRY: Network Management Appliance & Insights EMPLOYEES: 88 GEOGRAPHY: Global PRODUCT(S) USED: SFA, Marketing, License Management, Service & Support, 2 downloaded AppExchange applications # USERS: 452

Leader in real-time application performance insights

20 sales personnel covering 15 countries

85 partners on the portal (320 users)

Recent media coverage:

Channel Insider: “Long-tail of the channel”

NetworkWorld: “Network Physics hones Application Mgmt focus”

eWeek: “Network Physics ups Apps speed”

Processor.com, echannelline.com

A Brief Intro On Our Products….. Ending the Network versus Application Blame Game

Partners & Customers Financial Health Care Manufacturing Retail Technology Media & Internet Partners

Key Challenges Faced Business Challenge Shifted business from direct to 100% channel Limited sales visibility Lack of process and automation Weak lead generation No products/price books implemented therefore no central forecasting Sub standard asset tracking and licensing administration Technology Challenges Integration between systems Legacy architecture Data cleansing tools non existent Licensing key integration High costs Reduced revenue Inefficiency Low customer service

Business Challenge

Shifted business from direct to 100% channel

Limited sales visibility

Lack of process and automation

Weak lead generation

No products/price books implemented therefore no central forecasting

Sub standard asset tracking and licensing administration

Technology Challenges

Integration between systems

Legacy architecture

Data cleansing tools non existent

Licensing key integration

High costs

Reduced revenue

Inefficiency

Low customer service

How We Addressed The Challenges Created an automated lead process Implement GOT email campaign Implemented products and price books Integrated with Harte Hanks and SPOKE Deployed a robust set of tools including ‘Do it yourself’ guides and marketing & sales toolkits Created custom objects for license management Implemented the partner portal Unlimited Edition 408 Users Integration with Quick Books enterprise edition, Spoke, Harte Hanks, GOT, RingLead and our licensing application 4 training tracks: Sales, Marketing, Service and Partner Portal All business units have one admin and all use the system Better integration with Trackonit (system used by telemarketing firm) DEPLOYMENT DETAILS

Created an automated lead process

Implement GOT email campaign

Implemented products and price books

Integrated with Harte Hanks and SPOKE

Deployed a robust set of tools including ‘Do it yourself’ guides and marketing & sales toolkits

Created custom objects for license management

Implemented the partner portal

Unlimited Edition

408 Users

Integration with Quick Books enterprise edition, Spoke, Harte Hanks, GOT, RingLead and our licensing application

4 training tracks: Sales, Marketing, Service and Partner Portal

All business units have one admin and all use the system

Better integration with Trackonit (system used by telemarketing firm)

Key Channel Program: Momentum Demo Program ZERO INVENTORY: Free start up unit provided – sell within 60 days Zero channel conflict through use of the partner portal and deal registration Zero professional services conflict

ZERO INVENTORY: Free start up unit provided – sell within 60 days

Zero channel conflict through use of the partner portal and deal registration

Zero professional services conflict

Demo The Partner Recruitment Process

New Strategy Translated Into Better Results 214 % increase in revenue 2nd quarter 2006 over 2005 Signed 85 partners in first 6 months of 2006 Zero channel conflict due to deal registration Order to cash cycle time improvements Improved visibility to partners through the portal Improved accuracy of data Higher customer satisfaction due to support object being exposed through the partner portal

214 % increase in revenue 2nd quarter 2006 over 2005

Signed 85 partners in first 6 months of 2006

Zero channel conflict due to deal registration

Order to cash cycle time improvements

Improved visibility to partners through the portal

Improved accuracy of data

Higher customer satisfaction due to support object being exposed through the partner portal

Marianne Carter Director, Global Channel Marketing PHOENIX TECHNOLOGIES [email_address]

Company Introduction 27 years BIOS and embedded software technology leader (NASDAQ: PTEC) Worldwide offices: US, Asia, India, HK, Taiwan, Tokyo 400 employees with over 65% using salesforce.com In 2005 launched: Solutions provider channel with five aftermarket software applications Trusted Partner Network program Expanded from direct sales force to indirect sales force Winner of 7 worldwide channel awards for outstanding partner program and software

27 years BIOS and embedded software technology leader (NASDAQ: PTEC)

Worldwide offices: US, Asia, India, HK, Taiwan, Tokyo

400 employees with over 65% using salesforce.com

In 2005 launched:

Solutions provider channel with five aftermarket software applications

Trusted Partner Network program

Expanded from direct sales force to indirect sales force

Winner of 7 worldwide channel awards for outstanding partner program and software

Key Challenges Faced Business Challenge Design, develop and launch worldwide partner program Develop processes and systems to align with program entitlements, requirements and channel model Move from exclusive OEM direct model by adding indirect channel line Create tier 1 and 2 (direct and indirect) systems including opportunity management, entitlements and navigation Limited funding – no new net headcount Manage company cultural change and keep sales associates selling! Technology Challenge Automate new business processes cross eight departments (worldwide) Integrate with direct business – without disrupting legacy system Add layers – build two tiers instead of one

Business Challenge

Design, develop and launch worldwide partner program

Develop processes and systems to align with program entitlements, requirements and channel model

Move from exclusive OEM direct model by adding indirect channel line

Create tier 1 and 2 (direct and indirect) systems including opportunity management, entitlements and navigation

Limited funding – no new net headcount

Manage company cultural change and keep sales associates selling!

Technology Challenge

Automate new business processes cross eight departments (worldwide)

Integrate with direct business – without disrupting legacy system

Add layers – build two tiers instead of one

How We Addressed The Challenges Automated application process including approvals Developed partner on-board packs to improve consistency and scale Launched partner locator Developed indirect opportunities exclusive to channel partners Integrated Phoenix online training center (Abobe Breeze) Focused extensively on recruiting sales, marketing & executive management Shared our salesforce.com roadmap with partners Training, training, training on new processes

Automated application process including approvals

Developed partner on-board packs to improve consistency and scale

Launched partner locator

Developed indirect opportunities exclusive to channel partners

Integrated Phoenix online training center (Abobe Breeze)

Focused extensively on recruiting sales, marketing & executive management

Shared our salesforce.com roadmap with partners

Training, training, training on new processes

Application And Contract Approval Process Key Requirements Ease of use Legal contract compliance Automate lead to account post-approval Key Benefits Faster processing time and applicant turnaround Faster assignment of approved applicants Better tools for internal training Contract Approval request New Partner Account Convert/Reject contract

Key Requirements

Ease of use

Legal contract compliance

Automate lead to account post-approval

Key Benefits

Faster processing time and applicant turnaround

Faster assignment of approved applicants

Better tools for internal training

Partner On-Board Launch Packs Key Requirements Multiple tasks across business users Timed task completion Monitoring partner enablement during first 30 days Key Benefits Consistent partner launch experience Aging reports on tasks completed Ability to launch up to 40 partners per day Partner Task List

Key Requirements

Multiple tasks across business users

Timed task completion

Monitoring partner enablement during first 30 days

Key Benefits

Consistent partner launch experience

Aging reports on tasks completed

Ability to launch up to 40 partners per day

Direct And Indirect Opportunities Key Requirements Separate forecasting for direct vs. indirect business Ease of use should limit time to train during worldwide rollout Key Benefits Supports business model expansion On-demand pipeline visibility Future integration for partner PRM direct entry

Key Requirements

Separate forecasting for direct vs. indirect business

Ease of use should limit time to train during worldwide rollout

Key Benefits

Supports business model expansion

On-demand pipeline visibility

Future integration for partner PRM direct entry

Partner Profile Demographics & Dashboards Key Requirements Support mobile sales team Provide enhanced visibility Key Benefits Eliminated manual order processing Centralized forecasting On-demand pipeline visibility

Key Requirements

Support mobile sales team

Provide enhanced visibility

Key Benefits

Eliminated manual order processing

Centralized forecasting

On-demand pipeline visibility

Partner Locator Demonstration Key Requirements Worldwide Real-time interface with web-to-lead process Reliable and scalable Key Benefits Eliminated manual process Real-time profile launch and data management Ease of navigation

Key Requirements

Worldwide

Real-time interface with web-to-lead process

Reliable and scalable

Key Benefits

Eliminated manual process

Real-time profile launch and data management

Ease of navigation

New Strategy Translated Into Better Results Recruited 1000 new worldwide partners in 9 months Reduced processing time from 3 weeks to under 30 minutes Achieved legal contract compliance Implemented tier 2 model Revamped partner locator Increased new partner satisfaction and sales associate time Achieved consistency in individual partner launches Modeled extensive partner metrics and demographics Stayed under budget Received industry awards for partner program and software

Recruited 1000 new worldwide partners in 9 months

Reduced processing time from 3 weeks to under 30 minutes

Achieved legal contract compliance

Implemented tier 2 model

Revamped partner locator

Increased new partner satisfaction and sales associate time

Achieved consistency in individual partner launches

Modeled extensive partner metrics and demographics

Stayed under budget

Received industry awards for partner program and software

You Can Do This Today With The Tools You Have Recruit – Qualify – Convert - Measure Ramp up tasks for channel managers Success plans for partners Recruitment by segment Recruitment portals

Complete Partner Lifecycle Management Increase channel effectiveness with Salesforce PRM Automate Recruitment Market Sell Measure View Every Metric Improve Effectiveness Generate Loyalty Recruit Sales Analytics Forecasting Dashboards Data Quality Management Partner Recruitment Partner Account Management Partner Training Channel Plans Lead Management Partner Communications Funds & Budgeting Management Document Management Deal Registration Opportunity Management Activity Management Pricing Management Workflow

Sales Analytics

Forecasting

Dashboards

Data Quality Management

Partner Recruitment

Partner Account Management

Partner Training

Channel Plans

Lead Management

Partner Communications

Funds & Budgeting Management

Document Management

Deal Registration

Opportunity Management

Activity Management

Pricing Management

Workflow

Ken Creager Senior Director, Strategic Markets Ernie Megazzini Senior Director Channels & Alliances QUESTION & ANSWER SESSION Network Physics Meru Networks Marianne Carter Director, Global Channel Marketing Phoenix Technologies

More Resources: Salesforce PRM Demo: http://www.salesforce.com/products/partner-relationship-management.jsp Visit the Channel Clinic for a Channel Audit Elay Cohen: [email_address] Frank Defesche [email_address] Demo

More Resources:

Salesforce PRM Demo:

http://www.salesforce.com/products/partner-relationship-management.jsp

Visit the Channel Clinic for a Channel Audit

Elay Cohen: [email_address]

Frank Defesche [email_address]

Demo

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