Salesforce.com Cited as the Fastest Growing Online CRM Company by Morgan Stanley

Morgan Stanley Report Shows Salesforce.com #2 in CRM Market Share

SAN JOSE & SAN FRANCISCO, CA. — December 13, 2001 — Salesforce.com, the market leader in online customer relationship management (CRM), announced today that it added its 3,000th customer in October, 2001, making salesforce.com the fastest growing CRM company. Salesforce.com has added more customers than any other CRM solution provider over the past two years, according to Morgan Stanley. In the report "How big is CRM? Market Sizing and Forecast," September 28, 2001, Morgan Stanley also lists salesforce.com as number two in CRM market share based on number of customers. It took Siebel (NASDAQ: SEBL) over five years to sign up its 3,000 customers, according to the Morgan Stanley report. Salesforce.com achieved the same mark in less than two years. Together salesforce.com and Siebel make up 63% of overall marketshare. Other vendors including Peoplesoft (NASDAQ: PSFT), Oracle (NASDAQ: ORCL) SAP (NASDAQ: NT), Nortel (NYSE: NT), Pivotal (NASDAQ: PVTL), Onyx (NASDAQ: ONXS), Chordiant (NASDAQ: CHRD), Invensys (OTC: INVSY) and Dendrite (NASDAQ: DRTE) make up the remaining 37% of the market.

Salesforce.com's 3000-plus customers, including Adobe Systems (NASDAQ:ADBE), Autodesk (NASDAQ:ADSK) Fujitsu (OTC: FJTSY), Siemens PT&D (NYSE:SI), USA Today (NYSE: GCI) and Wachovia (NYSE: WB), have realized impressive benefit from their CRM implementations. World-leading tool steel manufacturer Bohler-Uddeholm, which passed over SAP and other traditional CRM vendors in choosing salesforce.com, has seen a 250% return on investment (ROI) in salesforce.com.

"These ROI numbers are unprecedented in the CRM market," said Marc Benioff, founder and chairman of salesforce.com. "The benefits of online services like salesforce.com go directly to the bottom line, making companies more profitable, bringing them closer to their customers faster than ever before."

"Customers are now demanding quick ROI — implementations spread out over months or years will no longer be tolerated," said Sheryl Kingstone, CRM Analyst for the Yankee Group. "The strength and flexibility of online services like salesforce.com, combined with a small price tag, provide customers with tangible and immediate value."

Using salesforce.com's complete and integrated CRM functionality, Time Warner Communications (NYSE:AOL) Road Runner Business Department in Columbus, Ohio, has reduced its average response time to customer queries by almost half. Textron Fastening Systems, a subsidiary of Textron Inc., has substantially increased its sales teams' productivity. Salesforce.com implementations are typically completed in less than one month, compared to the year or more needed for conventional enterprise applications, with many customers, such as Dow Jones Newswires, rolling out the online solution in ten days or less.

About Salesforce

Salesforce, the Customer Success Platform and world's #1 CRM, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.

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 applications should make their purchase decisions based upon features that are currently available. Salesforce 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.