Territory Management Made Simple Tom Urban – Array Networks Brad Mattick and Josh Aranoff – salesforce.com

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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 Territory Management Overview Implementing Territory Management Customer Case Study TM roadmap Brad Mattick Salesforce.com Josh Aranoff Salesforce.com Tom Urban Array Networks Brad Mattick Salesforce.com

Territory Management Overview

Implementing Territory Management

Customer Case Study

TM roadmap

Brad Mattick Senior Product Line Manager Salesforce.com [email_address]

Territory Management Defined Maintain Territory goals Territory strategy Analyze data What-if scenarios Normalize potential Mass reorganizations Model hierarchy(ies) Assign accounts Assign people Add, move, delete sales reps Add, move, delete sales accounts Add, change, remove territories Support hold-outs/forecast exceptions Report on exceptions Reorganization Model & Assign Plan & Align

Maintain

Territory goals

Territory strategy

Analyze data

What-if scenarios

Normalize potential

Mass reorganizations

Model hierarchy(ies)

Assign accounts

Assign people

Add, move, delete sales reps

Add, move, delete sales accounts

Add, change, remove territories

Support hold-outs/forecast exceptions

Report on exceptions

Model

&

Assign

Plan

&

Align

Territory Management Defined Maintain Territory goals Territory strategy Analyze data What-if scenarios Normalize potential Mass reorganizations Model hierarchy(ies) Assign accounts Assign people Add, move, delete sales reps Add, move, delete sales accounts Add, change, remove territories Support hold-outs/forecast exceptions Report on exceptions Reorganization Model & Assign Plan & Align

Maintain

Territory goals

Territory strategy

Analyze data

What-if scenarios

Normalize potential

Mass reorganizations

Model hierarchy(ies)

Assign accounts

Assign people

Add, move, delete sales reps

Add, move, delete sales accounts

Add, change, remove territories

Support hold-outs/forecast exceptions

Report on exceptions

Model

&

Assign

Plan

&

Align

Key Capabilities Territory hierarchy – administrators set up a territory hierarchy for the entire sales organization Territory driven access – sales reps and overlays have access to data based on territory assignment Rules-based assignment – records are assigned to territories based on flexible rules Seamless transfers and hold-outs – transferred reps can continue to work on opportunities in their old territory for a pre-determined amount of time Forecast by territory – sales managers forecast opportunities by territory hierarchy with advanced options for overrides and customization 1 2 3 4 Generally Available 5

Territory hierarchy – administrators set up a territory hierarchy for the entire sales organization

Territory driven access – sales reps and overlays have access to data based on territory assignment

Rules-based assignment – records are assigned to territories based on flexible rules

Seamless transfers and hold-outs – transferred reps can continue to work on opportunities in their old territory for a pre-determined amount of time

Forecast by territory – sales managers forecast opportunities by territory hierarchy with advanced options for overrides and customization

Josh Aranoff Consulting Salesforce.com [email_address]

Before you begin Know your goals What are you trying to accomplish? Understand your go-to-market structure How do your people attack the map? Clean your data If the data’s not tight the rules won’t write!

Know your goals

What are you trying to accomplish?

Understand your go-to-market structure

How do your people attack the map?

Clean your data

If the data’s not tight the rules won’t write!

Understand the Capabilities Use inheriting rules whenever possible Rules should be restrictive as possible Looking at less data returns faster results If using Zip Codes define ranges (if possible) instead of lists Consider custom indexes on Account fields used in rules Rules vs. Manual Account Assignment (via API) Opportunity territory assignment is slower that account assignment Record owner vs. Territory Owners Having all records owned by an admin user and with access granted via territories Role Hierarchy vs. Territory Hierarchy This can address two way manager reporting Admins will have to support two hierarchies Single vs. Multi Branch Territory Hierarchy … Sample Task List Training Get help Successforce.com Deployment guide Salesforce.com services

Use inheriting rules whenever possible

Rules should be restrictive as possible

Looking at less data returns faster results

If using Zip Codes define ranges (if possible) instead of lists

Consider custom indexes on Account fields used in rules

Rules vs. Manual Account Assignment (via API)

Opportunity territory assignment is slower that account assignment

Record owner vs. Territory Owners

Having all records owned by an admin user and with access granted via territories

Role Hierarchy vs. Territory Hierarchy

This can address two way manager reporting

Admins will have to support two hierarchies

Single vs. Multi Branch Territory Hierarchy

…

Training

Get help

Successforce.com

Deployment guide

Salesforce.com services

While you implement What to review in salesforce.com: Reports Folders Views Queues Sharing Rules Groups Dashboards Case Visibility Lead Visibility Account Visibility Opportunity Visibility Does ‘it’ need to be: Updated? Deleted? Newly Created? Remain as is?

What to review in salesforce.com:

Reports

Folders

Views

Queues

Sharing Rules

Groups

Dashboards

Case Visibility

Lead Visibility

Account Visibility

Opportunity Visibility

Does ‘it’ need to be:

Updated?

Deleted?

Newly Created?

Remain as is?

Before You Go Live Test everything… What Should Our Analysis Cover? Mind the ‘Gaps’ What is identified the solution? What records are impacted? How are end users impacted?

Test everything…

What Should Our Analysis Cover?

Mind the ‘Gaps’

What is identified the solution?

What records are impacted?

How are end users impacted?

Tom Urban Director of Sales Operations Array Networks [email_address]

Background - Who We Are Company overview Array Networks Builds Internet Appliances That Provide Secure Remote Access (SSL-VPN) Server Load Balancers With SSL Acceleration 99% Of Worldwide Sales Are Through Distribution/Reseller Channels Small/Medium “Value-Oriented” to “Performance-Focused” Large/Enterprise Customers How we ‘roll’ SMB Deals Driven by Channel Rep & Inside Rep Enterprise Deals Driven by Regional Director & Field Engineer Fewer Layers Of Management = More People Selling

Company overview

Array Networks Builds Internet Appliances That Provide

Secure Remote Access (SSL-VPN)

Server Load Balancers With SSL Acceleration

99% Of Worldwide Sales Are Through Distribution/Reseller Channels

Small/Medium “Value-Oriented” to “Performance-Focused” Large/Enterprise Customers

How we ‘roll’

SMB Deals Driven by Channel Rep & Inside Rep

Enterprise Deals Driven by Regional Director & Field Engineer

Fewer Layers Of Management = More People Selling

Alignment Team alignment Regional Director Channel Manager Inside Sales Roving Field Engineers Territory coverage Most Territories are Geographic Named accounts transcend geographic rules Government Accounts transcend geographic rules Systems Engineers Cover the Region – not the territory

Team alignment

Regional Director

Channel Manager

Inside Sales

Roving Field Engineers

Territory coverage

Most Territories are Geographic

Named accounts transcend geographic rules

Government Accounts transcend geographic rules

Systems Engineers Cover the Region – not the territory

Key Business Issues All Accounts were ‘Owned’ by the Regional Director No way to granularly share accounts by properties Opportunities were ‘Owned’ by the “Driver” Because ownership was not always clearly defined, more emailing/ conference calls, etc. were required before the ‘big call’ Role hierarchy and sharing challenges One role per user vs. too much visibility Because there were no exact overlays, sharing rules provided more visibility than required by each role

All Accounts were ‘Owned’ by the Regional Director

No way to granularly share accounts by properties

Opportunities were ‘Owned’ by the “Driver”

Because ownership was not always clearly defined, more emailing/ conference calls, etc. were required before the ‘big call’

Role hierarchy and sharing challenges

One role per user vs. too much visibility

Because there were no exact overlays, sharing rules provided more visibility than required by each role

Key Business Issues (cont) Forecasting Challenges Couldn’t aggregate forecast by territory, had to break out quota by team member or give all quota to one member Potential for double counting or duplicate opportunities Forecast calls were driven by the Regional Director – who would point out the driver during the call Had to use Activities, etc. to see who was driving the business

Forecasting Challenges

Couldn’t aggregate forecast by territory, had to break out quota by team member or give all quota to one member

Potential for double counting or duplicate opportunities

Forecast calls were driven by the Regional Director – who would point out the driver during the call

Had to use Activities, etc. to see who was driving the business

Goals Drive Individual Accountability towards a Team Quota Field Directors Run Point on Big Deals Fulfilled via key channel partners Channel Managers Run Point on Medium Deals Inside Reps Run Small Deals/Service Renewals/ Add-ons Each Salesperson’s Efforts Count Towards a Team Goal Defined by VP of Worldwide For Executive Team/ BOD For Individual Accountability

Drive Individual Accountability towards a Team Quota

Field Directors Run Point on Big Deals

Fulfilled via key channel partners

Channel Managers Run Point on Medium Deals

Inside Reps Run Small Deals/Service Renewals/ Add-ons

Each Salesperson’s Efforts Count Towards a Team Goal

Defined by VP of Worldwide

For Executive Team/ BOD

For Individual Accountability

Implementation Elevated RD / flattened team out Used account record types and territory business rules for named accounts & government accounts Used Sandbox Went Live Kicked off with Salesforce.com Services VP Had A “Damn The Torpedoes” Attitude Sandbox Showed How Incomplete Our Data Was Forced New Behavior From Sales Team Spent A Day At salesforce.com Ongoing advisory role Subject matter expertise

Elevated RD / flattened team out

Used account record types and territory business rules for named accounts & government accounts

VP Had A “Damn The Torpedoes” Attitude

Sandbox Showed How Incomplete Our Data Was

Forced New Behavior From Sales Team

Spent A Day At salesforce.com

Ongoing advisory role

Subject matter expertise

Array Networks Territories EMEA EMEA - Northern Europe APAC APAC - Japan EMEA EMEA - Southern Europe/Africa WORLDWIDE EMEA WORLDWIDE CHNA APAC APAC - Pacific APAC APAC - Middle East APAC APAC - Asia WORLDWIDE APAC AMER AMER-Government AMER AMER - Southwest AMER AMER - Southeast AMER AMER - South Central AMER AMER - Northwest AMER AMER - Northeast AMER AMER - North Central WORLDWIDE AMER WORLDWIDE Reports To Territories

Post Go-Live Maintenance - How Maintained through Assignment Rule Changes Territories are cut by Account Record Type, Country, and State Maintenance – How Often Coffee Breaks, Boring Meetings, Airports…

Maintenance - How

Maintained through Assignment Rule Changes

Territories are cut by Account Record Type, Country, and State

Maintenance – How Often

Coffee Breaks, Boring Meetings, Airports…

Conclusions Data Needed Clean Up Web-to-lead Forms Needed Drop-Downs for States/Countries Sales Teams Needed To Enter Clean Address Information Or Manually Complete Territory Field For Something This Powerful/Flexible, Get A Sandbox Account Once Logic Is Understood, Very Impressive Accountability was Taken to a New Level Top Salespeople Embraced It! Better Collaboration Meant Better Productivity Challenges Results

Data Needed Clean Up

Web-to-lead Forms Needed Drop-Downs for States/Countries

Sales Teams Needed To Enter Clean Address Information Or Manually Complete Territory Field

For Something This Powerful/Flexible, Get A Sandbox Account

Once Logic Is Understood, Very Impressive

Accountability was Taken to a New Level

Top Salespeople Embraced It!

Better Collaboration Meant Better Productivity

Brad Mattick Senior Product Line Manager Salesforce.com [email_address]

Roadmap

Unlimited Customer Modeling Unlimited sharing Criteria based Account hierarchy Enterprise-class customer modeling and security controls Territory Management Lead assignment Mass zip code assignment Custom object assignment

Unlimited sharing

Criteria based

Account hierarchy

Territory Management

Lead assignment

Mass zip code assignment

Custom object assignment

Brad Mattick Senior Product Line Manager Josh Aranoff Consulting QUESTION & ANSWER SESSION Director of Sales Operations Tom Urban