Salesforce.com Dominates Australia’s Software as a Service Market

Accelerates past 1,000 customers in Australia & New Zealand winning customers like Amcor, CGU, Challenger Financial Services, Fairfax Media, Flight Centre, Lend Lease and Smorgon Steel Frost & Sullivan confirms that salesforce.com holds approximately 50 percent share of Australia’s on-demand application market in 2006

MELBOURNE - salesforce.com Summer '07 Launch Event - July 17, 2007 - Salesforce.com [NYSE: CRM], the market and technology leader in on-demand business services, today announced that more than 1,000 companies in Australia are now using its on-demand CRM application suite and platform.

Growing demand for Software-as-a-Service (SaaS) - especially among the nation’s enterprises - is providing salesforce.com’s Australian operations with tremendous customer and subscriber growth. In addition to continued adoption among small-to-medium sized businesses, salesforce.com signed its first 1,000 subscriber customer in the region and has secured major local enterprises including Amcor Limited, BlueScope Buildings, Challenger Financial Services, CGU, Fairfax Media, Flight Centre, IDP Education, Lend Lease, SKILLED Group Limited, and Smorgon Steel in the last twelve months.

“Momentum and adoption of salesforce.com’s on-demand model is reaching new heights in Australia as our customers realise the success that is possible through our vision of ‘No Software’, ” said Marc Benioff, chairman and CEO of salesforce.com.

Salesforce.com was founded in San Francisco in 1999 and established its Australian operations in June 2003. The company has pioneered the SaaS phenomenon which allows organisations to abandon traditional software delivery models and embrace enterprise class software as a service
via a web browser and subscription payment model – with no software to license, install and upgrade.

Demand for SaaS solutions by Australian companies of all sizes is forecasted to increase significantly. Frost & Sullivan predicts that the Australian SaaS market will experience a 40 percent compound annual growth rate (CAGR) through 2009. The company has only been in Australia for three years but according to Andrew Milroy, consulting director at Frost & Sullivan, “ controlled approximately 50 percent of the market in 2006.”

According to ACA research, a leading market research firm and authors of The Australian SaaS Market Index[1], up to 85 percent of Australian companies are likely to consider SaaS over onpremise solutions.

“One of the most compelling findings is that as users switch to an on-demand or SaaS model, they experience measurable business benefits. Fifty eight percent of respondents using SaaS recorded significant gains in operational efficiency. Forty percent have experienced increases in revenue,” said Dr. Catriona Wallace, Director, ACA Research.
 
In contrast, respondents reported they are struggling with on-premise software maintenance. More than 40 percent of respondents spent over a quarter of their IT budget on in-house software maintenance [excluding staff costs]. Respondents also indicated they were struggling with
software upgrades and staff shortages.

According to Bruce Kaider, general manager, Business Development and Strategy for Western Bulldogs, “Salesforce.com requires low up-front costs and minimal new infrastructure. It can quickly and easily scale as our business grows and integrates seamlessly with our existing applications.”

Grant Waldeck, Marketing Manager of Flight Centre Australia's corporate arm FCm Travel Solutions, adds that the SaaS model eliminates the upgrade issues that plague traditional clientserver software.

“Whenever there were upgrades to our old CRM system in New Zealand, there were always issues with the data either being lost or offline for inconvenient periods of time. Now there is no need to worry about lost data, it is all automatically upgraded with salesforce.com. We know it’s in
safe hands and that we’re getting the very latest tools,” he said.

Salesforce Platform and The AppExchange
Salesforce Platform is the on-demand platform for the next generation of business applications. Salesforce Platform reinvents traditional customisation and integration and enables a new generation of on-demand applications that go beyond client/server computing. The Salesforce
Platform allows applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange directory, enabling all the innovation that the Salesforce Platform unleashes to benefit the entire on-demand community.

More than 600 applications are now available on salesforce.com's AppExchange, the world's first on-demand application directory, found at http://www.salesforce.com/appexchange.

About salesforce.com
Salesforce.com is the market and technology leader in on-demand business services. The company’s Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. The Salesforce
Platform, the world’s first on-demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise. The Salesforce Platform allows
applications to be easily shared, exchanged and installed with a few simple clicks via salesforce.com's AppExchange directory, available at http://www.salesforce.com/appexchange. Customers can also take advantage of Successforce, salesforce.com’s world-class training, support, consulting and best practices offerings.

As of April 30, 2007, salesforce.com manages customer information for approximately 32,300 customers including ABN AMRO, Dow Jones Newswires, Japan Post, Kaiser Permanente, KONE, Sprint Nextel, Staples and SunTrust Banks. 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 salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol "CRM". For more information please visit http://www.salesforce.com, or call 1-800-NO-SOFTWARE.

About Salesforce.com

Salesforce.com is the world’s largest provider of customer relationship management (CRM) software. For more information about salesforce.com (NYSE: CRM), visit: www.salesforce.com/au/.

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 salesforce.com applications should make their purchase decisions based upon features that are currently available. Salesforce.com has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol “CRM.” For more information please visit http://salesforce.com/au/, or call 1800 667 638 (Australia) or 0800 450 064 (New Zealand).