On-Demand Best Practices from the Salesforce.com CIO

Trae Chancellor

Track: IT Exec

Safe Harbor Statement

“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.

We need to stop spending “Dead Money”

March 2007

On average, $8 out of every $10 spent in IT is ‘dead money’ - not contributing directly to business change or growth

September 2006

…infrastructure and utility applications account for 68 percent, or more than two-thirds of all IT spending; however, they make no direct business performance improvement.

InnovationInfrastructureServices

Security

Network

Storage

Operating System

Database

App Server

Web Server

Data Center

Disaster Recovery

ApplicationServices

Security

Sharing

Integration

Customization

Web Services

API

Multi-Language

Multi-Currency

Workflow

Analytics

Multi-Device

Messaging

Search

OperationsServices

Authentication

Availability

Monitoring

Patch Mgmt

Upgrades

Backup

NOC

CIO

Move from Infrastructure to Innovation

How Salesforce.com IT Innovates

Application and Business Process Rationalization

Workflow

Analytics

Security

Usability

Data intensity and logic intensity

Based on the requirements we choose

1. Extend native functionality of existing Salesforce model

2. Create custom app

3. AppExchange partnership with integration

IT Solution Delivery App Portfolio management

IT Project Pipeline visibility Demand management Investment evaluations

Project management Status reporting Issue & risk management Release visibility

Resource management Capacity planning by skill, resource

type, date Demand analysis

Dashboards and Reports

Intranet Integration

Business Problem

Integrate Intranet functions with Salesforce

Multiple applications and databases

Business Solution

• Salesforce Call Center • Solutions

• Case Management

• Quarterly certifications with workflow and reports

Ticket Process

Quarterly Certification

Automate Paid Time Off Process

Business Problem Manual processes and limited integration

• Process was prone to error due to manual entry

• Managers had poor visibility into employees availability

• Reporting for compliance was inefficient

Business Solution• Automated submissions and approval of TO requests in

Custom object

• Eliminated manual data entry

• Team TO calendar and visibility

• Integrated with HR and Payroll systems

Time-Off Manager

Manage the Recruiting Process

Business Problem Recruiting had to be managed manually by HR

• Spreadsheets• Leads were manually entered and tracked from Internet

Job profiles were managed separately from the rest of the HR information

Business Solution• Integration between salesforce.com recruiting application HRMS and

Internet automates new hire process

• Once requisition changes status to Hired, new hire record is recorded in Workday

• Eliminated manual data entry

• Pipeline visibility and Dashboards

Recruiting

ERP – Integration (Quote-to-Cash)

Business Problem Salesforce is used for Order management and Oracle is used

for Accounts Receivable

Customers need access to their invoices and payment history

Business Solution• Automated billing and synchronization with Oracle AR

• Billing code has been created using APEX

• Draft invoices are sent to Oracle, final invoices are imported back to Salesforce for presentation

• Payments are imported from Oracle to Salesforce for presentation

ERP

Sales Commissions – The Platform and Integration

Business Problem

Commission system performance and legacy systems

Processing and reports not aligned with business growth

Business Solution

• Commissionable events created in Salesforce using APEX

• Integration to Xactly for processing

• Roll-out of AppExchange Estimator for Sales commissions

• No additional hardware, database licenses, datacenter space

or administration

• Retired legacy systems

Commission Process

Change Management Process

Innovation and demand will come from everywhere

Development/QA/Release processes

Innovate quickly

Agile methods

Sandbox and full user acceptance testing

IT Change Control

Full governance and compliance activities

On-Demand Solutions

Building and deploying solutions on the Platform

Not just for CRM anymore

Rationalization

Innovative Application Examples

1. Extend native functionality of existing Salesforce model

2. Create custom app

3. AppExchange partnership with integration

Change Management and Operations

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Trae Chancellor

VP, Information Technology

Alex Denissov

Director, IT Development

Chris Tiernan

Manager, Integration Development

QUESTION & ANSWER SESSION

Salesforce

Salesforce

Salesforce

: Five paths to integration

successA comprehensive family of technologies built on top of the Apex Web Services API

Mash-ups from AppExchange

Native Desktop

Connectors

Integration Middleware Connectors

Developer Toolkits

Native ERP Connectors

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