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Monty Hoeft Director, ISV Success Ian Smith CEO, Xceliant

7 Habits of Highly Successful Cloud Computing ISVs. Monty Hoeft Director, ISV Success Ian Smith CEO, Xceliant. Safe Harbor.

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Monty Hoeft Director, ISV Success Ian Smith CEO, Xceliant

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  1. 7 Habits of Highly Successful Cloud Computing ISVs Monty Hoeft Director, ISV Success Ian Smith CEO, Xceliant

  2. Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. 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 developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the fiscal year ended January 31, 2009 and our other filings. These documents are available on the SEC Filings section of the Investor Information section of our Web site. 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 the 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.

  3. Personal Introductions Monty Hoeft Director, ISV Success • Salesforce.com and Cloud Computing • On-boarding & Go to Market Planning for Force.com ISVs Ian Smith CEO, Xceliant • Integrated Sales and Software Lab • Helping ISVs Build and Sell Cloud Apps

  4. First Cloud Company to Exceed: 290 276 263 $1 Billion + 248 217 Annual Revenue 192 177 162 144 Quarterly Revenue ($M) 130 118 105 91 83 72 64 55 35 46 41 35 FY2005 FY2006 FY2007 FY2008 FY2009 Revenue through fiscal quarter ended 1/31/09

  5. Strong Growth in New Customers ~55,000 Global Paying Customers ~10,000 EMEA Paying Customers 2002 2003 2004 2005 2006 2007 2008 2009 Fiscal Year

  6. Rapid Subscriber Growth 1,500,000 1,500,000+ 1,100,000 Global Subscribers 900,000 646,000 393,000 227,000 127,000 76,000 53,000 30,000 Fiscal Year

  7. The Real-Time Cloud The world’s most complete cloud. The fast way to build in the cloud. The world’s first real-time cloud.

  8. The Real-Time Cloud ISO 27001 Certified Security Proven Reliability Proven, Real-Time Scalability Real-Time Query Optimizer Real-Time Upgrades Proven Real-Time integration Real-Time Sandbox Environments Salesforce to Salesforce 3 Global Data Centers & Disaster Recovery Real-Time Transparent System Status Multi-Tenant Kernel

  9. The Real-Time Cloud Granular Security & Sharing Unlimited Real-Time Customization Programmable Cloud Logic Real-Time Workflow & Approvals Programmable User Interface Real-Time Websites Real-Time Mobile Deployment Integrated Content Library Real-Time Analytics 750+ Integrated Applications ISO 27001 Certified Security Proven Reliability Proven, Real-Time Scalability Real-Time Query Optimizer Real-Time Upgrades Proven Real-Time integration Real-Time Sandbox Environments Salesforce to Salesforce 3 Global Data Centers & Disaster Recovery Real-Time Transparent System Status Multi-Tenant Kernel

  10. The Real-Time Cloud Granular Security & Sharing Unlimited Real-Time Customization Programmable Cloud Logic Real-Time Workflow & Approvals Programmable User Interface Real-Time Websites Real-Time Mobile Deployment Integrated Content Library Real-Time Analytics 750+ Integrated Applications ISO 27001 Certified Security Proven Reliability Proven, Real-Time Scalability Real-Time Query Optimizer Real-Time Upgrades Proven Real-Time integration Real-Time Sandbox Environments Salesforce to Salesforce 3 Global Data Centers & Disaster Recovery Real-Time Transparent System Status Multi-Tenant Kernel

  11. The Force.com Value Proposition We do Infrastructure Services We do Application Services We do Operations Services You get to focus on Innovation Network Storage Operating System Database App Server Web Server Data Center Security Sharing Integration Customisation Web Services API Multi-Language Authentication Availability Monitoring Patch Mgmt Upgrades Backup NOC Build your Data Model Build your Business Logic Build your User Interface

  12. The Cloud Crowd: 110,000 Apps & Counting IT Governance/Pr.Mgmt Billing Franchise Management Human Resources IT Governance and Change Control Built in 6 weeks Recruiting and Training Application Less than 6 months Franchise and Training Management Less than 6 months Custom Billing Application Less than 6 weeks Performance & Time Off Less than 5 weeks Quoting, Licensing & Billing Less than 10 weeks Product Management Less than 10 Weeks Franchise Management 60 days Shipping & Distribution ERP/ Accounting Commercial Accounting Application Built in 6 months Sample Management Less than 6 months Custom ERP and Shipping System Built in 7 months Distribution & Shipping Less than 3 months

  13. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently

  14. #1 Think Differently • You are selling a service, not a product. • Think in days and weeks for iterative, agile development. • Let customers drive development on one source code. • Move from hard code customisation to user configuration.

  15. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently • Build on a Robust, Trusted, and Secure Platform

  16. #2 Build on a Robust, Trusted, and Secure Platform • On-demand shifts implementation burden to you. • Select a platform partner with financial strength. • Pay attention to SLAs: uptime, security, scalability. • Big savings with PaaS: can be 80%+ v. DIY platforms.

  17. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently • Build on a Trusted, Secure Platform • Think and Act Like a B2B eTailer

  18. #3 Think and Act Like a B2B eTailer • Build a demand generation portal. • Hire a SEO expert. • Focus on user adoption to maximise renewals. • Open up new markets with inherent reach of SaaS.

  19. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently • Build on a Trusted, Secure Platform • Think and Act Like a B2B eTailer • Reward Sales People on User Adoption

  20. #4 Reward Sales People on User Adoption • SaaS value = renewals = maximum user adoption. • Closing the deal is only the start – reward for renewals. • Reduce sales costs with portal tools for communications. • Align compensation plans to customer satisfaction.

  21. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently • Build on a Trusted, Secure Platform • Think and Act Like a B2B eTailer • Reward Sales People on User Adoption • Build and Release as a Perpetual Beta

  22. Design Build Analyse Measure #5 Build and Release as a Perpetual Beta • Scrum methodology: weekly iterations and sprints. • One source code enables granular approach to release cycle. • Think more like a web designer: measure user adoption. • Apply Design, Build, Measure, Analyse approach.

  23. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently • Build on a Trusted, Secure Platform • Think and Act Like a B2B eTailer • Reward Sales People on User Adoption • Build and Release as a Perpetual Beta • Don’t Replicate - Innovate

  24. #6 Don’t Replicate - Innovate • Add value to a customer-centric core – e.g. Your Cloud plus Sales Cloud. • Don’t re-invent wheels: build the Core, partner the Context (other ISVs). • Augment or replace people-based services with platform-based services. • Think of non-IT service players as future ISV partners and customers.

  25. 7 Habits of Highly Successful Cloud Computing ISVs • Think Differently • Build on a Trusted, Secure Platform • Think and Act Like a B2B eTailer • Reward Sales People on User Adoption • Build and Release as a Perpetual Beta • Don’t Replicate - Innovate • Make It Easy to Buy

  26. #7 Make It Easy to Buy • Price clearly and simply – e.g. €100 per user per month. • Enable 30-day test drives – let the App sell itself. • Provide interactive ROI tools on your portal to justify spend. • Leverage the power of reference selling and the right early adopters.

  27. 7 Habits of Highly Successful SaaS Companies Monty Hoeft mhoeft@salesforce.com Ian Smith ian.smith@xceliant.com

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