ProactiveNet Replaces Leading Mid-Market CRM Software with Salesforce.com for Online Customer Relationship Management

Technology leader in application performance management solutions swaps out complex client/server CRM system for salesforce.com and achieves ROI in weeks

SAN FRANCISCO, CA — October 30, 2002 — Salesforce.com, the market leader in online customer relationship management (CRM), today announced that ProactiveNet, the leading provider of end-to-end performance management solutions for online applications, has standardized on salesforce.com and achieved positive ROI within weeks of implementation. After experiencing frustration with a failed client/server CRM deployment from one of the leading mid-market vendors, and subsequently discovering the benefits of salesforce.com's easily implemented and intuitive online CRM solution, ProactiveNet decided to migrate from its traditional CRM tool to salesforce.com Professional Edition.

"I've had a lot of experience with CRM tools and nothing even comes close to salesforce.com," said Vicki Vance, inside sales manager at ProactiveNet and a 15-year veteran of high tech sales. "We abandoned the traditional CRM tool we purchased when it became clear that we would have to spend twice as much as we originally paid just to get it deployed. As an online CRM tool, Salesforce.com also eliminated the need to burden our own MIS staff with integration, maintenance and support issues."

ProactiveNet was able to get up and running on salesforce.com within days, providing the company with an integrated, 360-degree view of its customers that can be accessed from any location via the Internet.

ProactiveNet estimates that the company saw a positive ROI on salesforce.com within weeks and saved $744,000 in decreased costs and increased productivity in the first six months after switching from its client/server CRM tool to salesforce.com. The benefits that ProactiveNet has quantified include a 17 percent increase in inside sales, a 33 percent decrease in the time required to ramp up new sales reps, a 7.5 percent increase in sales productivity and a 25 percent decrease in marketing spend, due to the ability to identify the lead sources with the highest conversion rates. In addition, the company has much better insight into its customer base and is more effective at tracking and following up on marketing leads.

ProactiveNet joins a growing list of companies that have switched to salesforce.com because of frustration with high costs, complex products and lengthy or unsuccessful implementations of client/server software. According to many analyst firms, enterprise CRM software offerings fail to meet expectations over 50 percent of the time. Chuck Phillips of Morgan Stanley in Optimize Magazine (April 2002) has estimated that $130 billion worth of enterprise technologies purchased in the last two years have not been implemented and that 40 percent of all enterprise software purchased is never installed.

"We understand that companies of all sizes and from all industries need powerful CRM functionality without the headaches, hassles and costly implementation cycles of traditional enterprise software," said Marc Benioff, chairman and CEO of salesforce.com. "We're pleased to provide a technology leader such as ProactiveNet with a CRM system that can meet its critical business needs and deliver rapid ROI."

Salesforce.com has achieved more than 5,000 customers for its online CRM solution, including global leaders such as Le Meridien, Autodesk and USA Today. Salesforce.com delivers its CRM solution as an online information utility via a Web Services infrastructure. In the past year, salesforce.com has added more CRM customers than Siebel (NASDAQ: SEBL), PeopleSoft (NASDAQ:PSFT), Oracle (NASDAQ: ORCL) and SAP (NYSE: SAP) combined.

About ProactiveNet

ProactiveNet, Inc. is the technology leader in real time, end-to-end, performance management solutions for online applications and their associated infrastructures. ProactiveNet monitors, identifies, diagnoses and resolves performance problems for online applications in a minimally invasive, holistic approach using its patented Intelligent Threshold(tm) and SmartFilters(tm) technologies. Customers typically report positive ROI in less than three months, realizing significant improvements in operations productivity, dramatic reductions in mean time to application recovery (MTAR) and measurable savings through improved capacity planning. Customers include leading enterprises such as eBay, Ford, Hoover's Online, McKesson and Wal-Mart. ProactiveNet has established strategic partnerships with BEA Systems, IBM, Keynote Systems, Rational Software and Sun Microsystems. The company's technology has received U.S. Patent No. 6,327,677 for monitoring an application infrastructure environment and was named to Upside magazine's "Hot 100", Computerworld's Top 100 Emerging Companies and is a winner of The CrossRoads A-list Award. The company was founded in 1997 and is headquartered in Santa Clara, California with international offices located in India. Additional information is available at www.proactivenet.com or by phone in the U.S. at 408-935-6800.

About ProactiveNet

ProactiveNet, Inc. is the technology leader in real time, end-to-end, performance management solutions for online applications and their associated infrastructures. ProactiveNet monitors, identifies, diagnoses and resolves performance problems for online applications in a minimally invasive, holistic approach using its patented Intelligent Threshold(tm) and SmartFilters(tm) technologies. Customers typically report positive ROI in less than three months, realizing significant improvements in operations productivity, dramatic reductions in mean time to application recovery (MTAR) and measurable savings through improved capacity planning. Customers include leading enterprises such as eBay, Ford, Hoover's Online, McKesson and Wal-Mart. ProactiveNet has established strategic partnerships with BEA Systems, IBM, Keynote Systems, Rational Software and Sun Microsystems. The company's technology has received U.S. Patent No. 6,327,677 for monitoring an application infrastructure environment and was named to Upside magazine's "Hot 100", Computerworld's Top 100 Emerging Companies and is a winner of The CrossRoads A-list Award. The company was founded in 1997 and is headquartered in Santa Clara, California with international offices located in India. Additional information is available at www.proactivenet.com or by phone in the U.S. at 408-935-6800.