The document discusses the benefits and growth of Salesforce.com and the SaaS model, emphasizing key metrics such as 31% CAGR growth for on-demand CRM and over 35,300 successful customers. It outlines the innovative features of its service offerings, including rapid scalability and automatic upgrades, while addressing potential risks and uncertainties associated with forward-looking statements. The integration of Salesforce with sales performance management solutions is highlighted as a means to enhance sales strategies and efficiency.

1. Reaping the Benefits of SaaS and Sales Performance Management Jim Steele President salesforce.com

2. “ 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

3. Our Inspiration: The Consumer Web

4. Salesforce.com’s Mission: On-Demand Innovation Driver, Catalyst, and Evangelist On-Demand 21 st Century Platforms Client/Server Late 20 th Century Platforms Mainframe Mid 20 th Century Platforms

5. On-Demand Model: Multi-Tenant, Subscriptions New Business Model: Pay as You Succeed Multi-Tenancy Faster Vendor Innovation Rapid Scalability Automatic Upgrades New Technology Model: Software as a Service Subscription Model Mutual Success

6. Strong Momentum for SaaS 31% Growth (CAGR) for On-Demand CRM 61% Growth In Enterprise Adoption 25% Penetration of $220 Billion Software Industry by 2011

7. Fastest Growing Software Company 35,300+ Successful Customers 900,000+ Subscribers >$730 million revenue run rate Founded 1999, Headquartered in San Francisco, CA 2,500+ Employees; 40 Offices; 20 Countries NYSE: CRM June 25, 2007 Fiscal Year 35,300 Customers Growth in Customers 2001 2008 2007 2006 2005 2004 2003 2002

8. Why are so many companies having Success with Salesforce and SaaS ?

9. A Full Suite of Award-Winning Applications Technology of the Year Top 100 Innovative Companies Top Ten Disruptors of 2006 Best CRM & On-Demand Platform Leader & Visionary Market Leader Enterprise CRM Top 10 Entrepreneurs & Cool Company CRM Leader & Visionary

10. The World’s Largest On-Demand CRM Deployments Run Salesforce.com ~5,000 ~4,200 ~2,500 ~2,600 ~2,600 ~4,000 ~20,000 ~40,000 ~30,000 ~25,000 45,000 ~5,500 ~2,000 ~1,800 ~1,500

11. SaaS and Multi-Tenancy Serve Companies of All Sizes ENTERPRISE MID-MARKET SMALL BUSINESS

12. Highest Adoption in the Industry Easy to Manage by Business Admins Easy to Use like the Consumer Web Complete Visibility for Executives Language

13. Complete Visibility for Your Business Made for Business Users Create Reports in Real-Time Design Analytics Mash-ups

14. Customize Anything in Salesforce with Force.com Add Custom Data Fields Integrate with Anything Design Your Own Interface Create Your Own Business Rules Every Customization Automatically Upgrades

15. Continuous Innovation – 23 Major Releases in 8 Years On Average Over 100 New Features Per Release All Customizations Upgraded Automatically

16. Force.com: Global, Trusted, Secure Infrastructure 100M+ Transactions Daily Average Speed 225 ms 900,000+ Users $100 Million Investment in Mirrored Data Centers 15 Languages All Major Currencies SAS 70, SysTrust Certified

17. Driving Revenue Growth & Sales Success Effective Selling Process Optimize Lead Management Complete Visibility Improve Sales Rep Productivity

18. Extend SFA with the AppExchange 700+ Apps 34,200 Apps Installed 245,000 Test Drives 355 Total ISVs 24 Japanese ISVs Pre-integrated Applications View, Try, Install Build on Force.com CRM & Non-CRM Apps

19. Our Goal: Help Companies Manage all Business Information On Demand You should not have to… Manage Hardware Upgrade Software Wait for Changes Tune Databases Manage Disaster Recovery You should be able to easily… Gain Visibility Drive Adoption Customize & Integrate Change INNOVATE!

20. Salesforce and SPM are a powerful combination

21. Success with Salesforce SFA and Callidus SPM As a customer of both Callidus Software and salesforce.com, we are pleased that the two solutions are becoming more fully integrated. With this integration, our sales representatives and sales executives will be able to view strategic sales force automation and sales performance management information together. “ ” Align Incentives Match Compensation with Corporate Objectives and Sales Methodologies Gain Visibility Compare Individual and Team Performance Improve Productivity Increase Rep Confidence with Accurate Pay for Performance PLM Software Division

22. Access Callidus SPM through Salesforce from AppExchange

23. How do we use Salesforce and SPM at salesforce.com?

24. Analytics in Decision-Making

25. Metrics Drive Action Levers Lead generation Territory & segmentation Training & methodology Competitive positioning Compensation Sales automation Goals Revenue EPS Market share Metrics Close Rate Pipeline $ Competitive Wins Lead Conversion

26. The Difficult Search for Truth Address Data Quality Challenges Too Much Data Incomplete Data Bogus Data Misinterpreted Data Make Informed Hypotheses Corroborate Results

27. Secret to Our Success: Know the Funnel “ 12 quarter year” and dedicated prospectors “ Shiny objects” and free trials “ Seed & grow” offers Rep skill match Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell CSMs

28. Part 1: The Leads are No Good Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How much pipeline do you need? How can you assess the quality of leads?

29. Target and Decide How Much You Need From Each Source Which in turn drives how much demand you need to generate $ Closed Business Target Pipeline Required from Each Source Leads Required from Each Source Close Rate Conversion Rate Telemarketing/ telesales Look at cost - effectiveness by source to determine resource allocation Marketing Alliances Sales

30. How Do You Look At Demand Generation Mix? View across channels and offers to assess where to spend efforts Lead type Lead Offer Lead source Lead Conversion: Assess lead quality and resulting “pipeline-to-spend” ratios

31. Marketing Campaigns Are Managed to Assess Pipeline Success Total Pipeline Generated by Campaigns # of Leads Generated Top Opportunities by Pipeline Value # of Opportunities Generated Leads and Opptys by Week and Month Current Lead Follow-up Status

32. Part 2: We’re Not Closing Enough Business Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How do you measure sales effectiveness ? How do you track competitors ?

33. Perhaps Our Most Important Dashboard Track Pipeline and Revenue Over Time by Region and Stage Show Colored Breakpoints to Identify Potential Problems

34. Driving Sales Effectiveness # Calls # Appointments # Opportunities Forecasting Pipeline Analysis Territory Analysis Activity Management Pipeline Dollars by Stage Market Penetration Revenue Projections Drill Down to Individual Performance

35. Managers Rank Sales Reps on Key Activities Is it execution? Is it pipeline? Is it training?

36. Track Competitive Win Rates

37. Part 3: The Territories Aren’t Right Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How do you optimize territories? How do you fit skills to territories?

38. Coverage Model Analysis Reveals Territory Issues ENTERPRISE MID-SIZED BUSINESS SMALL BUSINESS Segmented Buyer Profile Skill Set Analysis Access to Power IT Influence Complexity of Business Requirements Compelling Economic Reason Procurement Process Competitive Landscape Skill Set Mismatch Cherry Picking Conclusion Customer Size Deal Size

39. Using Propensity to Spend to Design Territories Historical Revenue Propensity to Buy Propensity to Spend Territory Score (dollars) (close rate) (ASP, TCV) 240 380 60 680

40. Section 4: Customer Loyalty Analysis Analyze Demand Generation Analyze Sales Effectiveness Analyze Territory & Fit Analyze Retention/ Upsell How do you determine which customers are about to leave? How do you determine customers likely to buy more/ upgrade?

41. Keeping and Growing Customers Analyze Subscriber Usage Analyze Product Usage Identify Cross Sell / Up Sell Opportunities Identify Customers At-risk

42. Summary Span the Entire Sales Continuum Drive consistency Focus on high impact areas Leverage predictive models Experiment (and measure) to make continuous improvements

43. Thank You Questions? Jim Steele President salesforce.com