CRM Trends SXPEG Breakfast Friday November 7, 2008

1. Neil Graham District Manager, Pacific Northwest salesforce.com CRM TrendsSXPEG Breakfast Friday November 7, 2008

2. CRM Trends • On Demand is here to stay • Now is the time to Double Down on your Customer Relationships • There is New Innovative Technology in the CRM Market • The “Everything Else” is Where Success Lies • People and Process and still king • Iterate rapidly with manageable, clear goals • Establish a CRM committee between execs, business and IT • CRM is a journey, not a destination

3. Agenda • On Demand is here to stay

4. Enterprises Want Innovation, Not Infrastructure Eight out of 10 dollars you spend in IT is dead because, while it is keeping the lights on, it isn't directly contributing to your business growth or to enhancing your competitive advantage. At least two-thirds of all IT spending is just to sustain the business, not to change or transform it. Some enterprises spend 90% of their IT budgets just to keep standing still. We know several Fortune 500 companies that are spending less than 2% of their total IT budgets on business change that could be called transformational. “ ” “ ” “ ” “ ” "The 2006 Gartner Symposium Keynote: IT Must Think Differently, Act Differently and Be Different to Drive Business Growth", Gartner, Inc., Oct. 19, 2006

5. By 2011, early technology adopters will forgo capital expenditures and instead purchase 40% of their IT infrastructures as a service. “ ” - Gartner Inc., 2008 Source: Gartner's Top Predictions for IT Organizations and Users, 2008 and Beyond: Going Green and Self-Healing, Jan. 8, 2008

6. Don’t Invest Another Dime in Technology InfrastructureShift Your IT Budget From Infrastructure To Innovation Software as a Service Client/Server Mainframe Mid 20thCentury Platforms Late 20thCentury Platforms 21stCentury Platforms

7. Just What is SaaS and On-Demand Computing? • Software as a Service (SaaS) is software that's owned, delivered and managed remotely by one or more providers. The provider delivers an application based on a single set of common code and data definitions, which are consumed in a one-to-many model by all contracted customers anytime on a pay-for-use basis, or as a subscription based on use metrics. • Business Applications On-Demand is the delivery of preconfigured business application software from a remote location over an IP network on a subscription-based outsourcing contract. In the on-demand model, a company signs up for a subscription that includes a preset number of user IDs with an on-demand vendor. The on-demand vendor then enables the users to access the service. Often, some configuration, security setting and integration are required of the service to personalize to a company’s needs before the formal rollout. Once the rollout is complete, users have access to the service without the need to install software or a database. - Gartner Inc., 2008 Source, Gartner, Inc., Tutorial for Understanding the Relationship Between Cloud Computing and SaaS, April 7, 2008 and

8. SaaS Model is Built on Multi-Tenancy & SubscriptionsMinimizes Cost, Complexity & Risk for You Subscription Multi-Tenancy Shared Services, Economies of Scale No Software, Hardware or Maintenance 100% Pay As You Go Vendor Accountable for Your Success

9. Success with On-Demand Solutions Causes Software as a Service (SaaS) To Explode • 51 percent of organizations are using at least one on-demand application. - Nucleus Research and KnowledgeStorm • Software as a Service market potentially exceeds 40% of the total software market - or $50 billion by 2009. - TripleTree • 63% of companies with more than 1,000 employees have adopted some on-demand technology, while 46% of those with fewer than 1,000 employees have. - Nucleus Research and KnowledgeStorm • SaaS Must Be Put on CIO Agendas. - Gartner Sources: TripleTree, SOFTWARE AS A SERVICE UPDATE, Q4 2006 and CRM Buyer Study: More Large Firms Now Deploying On-Demand Apps, By Erika Morphy, Feb. 12, 2007. Gartner, Inc., SaaS Must Be Put on CIO Agendas, April 28, 2008

10. Top Three Reasons for Using SaaS • No in-house maintenance • Faster rollout • Accessible anywhere from the Internet • Source: Burton Group, Software as a Service and Google Apps: IT Strategy Implications, September 4, 2008. A recent Burton Group and Ziff-Davis survey of 318 organizations regarding How Organizations Use or Plan to Use Vendors Software.

11. Agenda • Now is the time to Double Down on your Customer Relationships

12. During a downturn, completely turning off technology investments is an unproductive strategy “ ” - McKinsey, Nov. 2008 Source: Gartner's Top Predictions for IT Organizations and Users, 2008 and Beyond: Going Green and Self-Healing, Jan. 8, 2008

13. Agenda • There is Innovative Technology in the CRM Market

14. What’s Innovative about SaaS?Customization without Upgrades User Interface Logic Database • Build any new application • Easily customize application functionality • No Upgrades Your Clicks Your Code Each Customer’s Metadata 47,000+ Customers Single Code Base and Shared Infrastructure

15. Salesforce.com: Only Solution That Delivers On Both Trusted Multi-Tenant Platform for Continuous Success Family of Applications to Empower Your Entire Community

16. Agenda • The “Everything Else” is Where Success Lies

17. Domains of SuccessKey elements for achieving continuous value Vision and Strategy Business Measures Adoption Sponsorship & Governance Processes Roadmap Technology & Data

18. Domains of SuccessEach domain comprised of focused categories Vision and Strategy • Vision • Business Strategy and Objectives • Business and Technology Issues • Customer Experience Business Measures • Operationalize • Validation • Objectives • Key Performance Indicators • Communication Plan • Training Strategy • Support • Continuous Improvement Adoption • Organizational Readiness • Stakeholder Involvement • Measurements and Rewards Sponsorship & Governance • Executive Sponsorship • Center of Excellence (COE) • Release Management Roadmap • Deployment Roadmap • Capabilities Value Map • Product Roadmap • Global Deployment Processes • Process Effectiveness • Process Review • Process Definition • Process Ownership Technology & Data • Implementation Framework • Data Management Strategy • Platform and Integration Strategy • Security Infrastructure

19. Agenda • Extra Proof Points and Customer Examples

20. Sales Executives Have Deployed CRM With High Hopes According to a worldwide survey of 1,500+ sales executives, they are looking to make their teams… More Productive vs. Less than 37%of rep’s time spent in selling More Collaborative, Win as a Team vs. Only 52%effectively sharing best practices across the sales force More Effective vs. Fewer than 62%of reps making quota Source: CSO Insights, 2008 Sales Performance Optimization Survey & Analysis

21. Traditional CRM Software Failed to Deliver On The Promise Cost Complexity Risk Source: Gartner, Inc.

22. Salesforce.com Has Created a New Model:Pioneer, Catalyst & Evangelist for Software-as-a-Service Software as a Service Client/Server Mainframe Mid 20thCentury Platforms Late 20thCentury Platforms 21stCentury Platforms

23. SaaS Model is Built on Multi-Tenancy & SubscriptionsMinimizes Cost, Complexity & Risk for You Subscription Multi-Tenancy Shared Services, Economies of Scale No Software, Hardware or Maintenance 100% Pay As You Go Vendor Accountable for Your Success

24. As a Result, the Market is Moving to SaaS 43,600+Paying Customers 1,100,000+Paying Subscribers Billion Dollar Revenue in FY09 April 30, 2008 2001 2002 2003 2004 2005 2006 2007 2008 2009 Customers by Fiscal Year Best CRM & On-Demand Platform Leader & Visionary Market Leader Enterprise CRM Technology of the Year Top 100 Innovative Companies Top Ten Disruptors

25. Salesforce.com: Trusted Enterprise Standard for SaaS ~65,000 ~40,000 ~30,000 ~25,000 ~30,000 ~ 12,000 ~5,800 ~21,000 ~4,000 ~9,000 ~5,000 ~3,200 ~4,000 ~2,600 ~3,000 Number of Subscribers

26. Delivering Measurable CRM Success to Sales Teams More Productive More Collaborative More Effective 52% 94% Will Continue to Use Salesforce 40% 34% 94% Would Recommend to Others 25% 22% 74% Have Already Recommended Productivity Lead Volume Revenues Profit Margin Win Rate Source: Salesforce.com Customer Relationship Survey conducted Feb. 2008, by an independent third-party CustomerSat Inc.

27. Two Foundations of CRM Success for Sales Platform that delivers continuous success as your needs evolve Tools your entire communityof users will embrace Rapid deployment Unlimited scale Easy to make it your own Always on the latest technology Customizations & integrations never break Reps love it Managers get value Marketing aligns with Sales Integrate your channel Turn customers into evangelists

28. Salesforce.com: Only Solution That Delivers On Both Trusted Multi-Tenant Platform for Continuous Success Family of Applications to Empower Your Entire Community

29. Salesforce CRM: Family of Applications to Empower Your Entire Community Reps love it Managers get value Marketing aligns with Sales Integrate your channel Turn your customers into evangelists

30. Reps Love It Demonstration Easy to Use Connects the Dots Arms Reps for Success Hovers, recent items Workflow & approvals Find the right experts Integrated email and chat Shared Google apps Find related content Summary rollup fields

31. SunTrust Banks Achieves 997% ROIWith Salesforce in Just 2 Years Capital Markets Sales: ↑67% Treasury Fees: ↑29% Wealth Referrals: ↑31% Load Referrals: ↑5% Salesforce helps us ramp up staff more rapidly to improve team sales. - Senior Vice President

32. Managers Get Value Demonstration Real Time Visibility Tap into Your Team’s Ideas Change Processes on the Fly Real time dashboards Forecasts, pipeline & deal progression Sales team community Suggestions & best practices Customize sales processes AppExchange apps

33. Time Warner Cable's Managers are More Proactive Salesforce Delivers Better and Quicker Insight 20% increase in productivity over two years The company went from 7 days to complete a survey to 2 Reduced construction time from 21 days to 13.5 days

34. Marketing Aligns with Sales Demonstration Lead Source Optimize Leads Centralize Marketing Assets Measure & Improve In a Closed Loop Deal Size ($) Integrated campaigns Email, web and Google AdWords Search, tag, and preview Publish and subscribe Campaign profitability Asset usage, ratings and feedback

35. Ciena Puts the Entire Company Behind Every DealRelevant, High Quality Materials Delivered Right to Their Reps Strong adoption across multiple departments Subscriptions to keep sales tools current Feedback and usage tracking to “bring the best content to the top”

36. Integrate Your Channel Demonstration Visibility Across Direct & Indirect Channels Connect and Ramp Partners Easily Collaborate on Deals Integrated dashboards across direct and indirect channels Invitation to connect Partner portal Deal registration Lead & opportunity sharing

37. F5 Networks Helps Partners Double BusinessSalesforce Paves the Way for Channel Strategy Overhaul Closed-loop system empowers early engagement 300% increase in deal registrations Increased top 20 partner business by 50%

38. Dell Transforms Its Channel BusinessChannel Conflict Eliminated with Salesforce Partners Salesforce to Salesforce and Partner Portal give partners options 30,000 motivated partners Close to 100% adoption within partner community

39. Turn Customers into Evangelists Demonstration [98] Make Customers Happy Be Part of the Conversation Create Evangelists Integrated service & support Customer portal Online customer community Ideas and feedback Bubble the best ideas to the top

40. Salesforce.com: Delivering Sales Success On Demand Trusted Multi-Tenant Platform for Continuous Success Family of Applications to Empower Your Entire Community

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