AppStore will give customers a single source for trying, buying and deploying AppExchange applications
AppStore will provide a complete package of commercial services for developers and partners to market, sell, invoice and deliver applications to customers directly via the AppExchange
AppStore will be the catalyst to unlock the value of Apex and the AppExchange, accelerating the vision for the creation, delivery, and success of any application on demand
SAN FRANCISCO — December 12, 2006 — Salesforce.com [NYSE: CRM], the technology and market leader in on-demand business services, today announced its AppStore vision and monetization strategy for the AppExchange marketplace. Customers will be able to use AppStore as a single source for trying, buying and deploying on-demand applications on the AppExchange. AppStore will provide a complete package of commercial services and revenue-sharing programs for developers and partners, who will be able to use AppStore as a global distribution network to market, sell, invoice and deliver the applications they have built using the Apex programming language and platform and made available on the AppExchange. AppStore will be the catalyst to unlock the value of Apex and the AppExchange, accelerating the vision for the creation, delivery, and success of any application on demand.
"For customers, AppStore will make purchasing on-demand applications as easy as buying music on iTunes, and for partners, AppStore will remove the burden and expense of building out a sales and distribution channel," said Marc Benioff, chairman and CEO, salesforce.com. "From the moment we started talking about our vision of a marketplace of on-demand applications, the market has been asking 'What is salesforce.com's strategy to monetize the AppExchange?' AppStore is the answer."
AppExchange, the world's first on-demand application marketplace, has been a resounding success in its first year. More than 20,000 applications installs by over 7,400 salesforce.com customers in 57 countries have taken place, demonstrating a high degree of adoption, momentum and excitement in extending the benefits of on-demand applications beyond CRM to recruiting, IT, human resources, legal and all areas of the enterprise.
More than 430 applications from over 230 partners are available today on the AppExchange. Built using the Apex on-demand platform, these partner applications are integrated by design with salesforce.com's suite of on-demand business applications and can be deployed with a few clicks. AppStore will help partners and customers further accelerate and streamline delivery and adoption of on-demand applications for businesses of any size.
Additionally, the global AppExchange incubators will help companies develop new products on the Apex platform, and will also help accelerate the success of existing AppExchange partners. Ten companies have already signed up for the AppExchange incubator program, including: Appirio, Avankia, Centive, Convenos, DomoDomain, InsideView, InvisibleCRM, Right90, VerticalResponse and Xactly.
Monetizing the AppExchange Marketplace
AppStore will be the catalyst to unlock the value of a virtuous cycle currently at work: a growing community of customers draws more developers and partners into the ecosystem; the development capabilities enabled by the Apex platform and language expand the range of applications available on the AppExchange; the growing diversity of applications inspires existing customers to expand their deployments and helps drive more subscriber growth.
AppStore accelerates salesforce.com's strategy to unlock the value of the AppExchange. First, by offering a broad variety of on-demand applications, salesforce.com has been able to expand its subscriber base through new users and departments across the enterprise. Second, as customers deploy more on-demand applications and customizations, they are upgrading to premium salesforce.com offerings and services such as Unlimited Edition. The AppStore Referral Program and AppStore Checkout represent the next two pieces of the AppExchange monetization strategy.
AppStore — A Complete Range of Programs and Services for Partner Success
AppStore will provide a complete set of commerce, marketing and referral services that enable developers and partners to offer a seamless experience to salesforce.com customers. AppStore will help partners further scale their existing success on the AppExchange by adding a zero-touch, self-service channel model that manages billing, invoicing and renewals across multiple currencies and languages. AppStore will also introduce a complete range of services and programs to drive partner success, including different revenue sharing models aligned with partner business goals.
Salesforce.com will provide AppStore services to partners for a revenue share percentage of closed deals that will vary depending on the level of services provided. AppStore services, including the AppStore Referral Program and AppStore Checkout, are currently scheduled to be offered in a phased approach throughout 2007.
"AppStore is a startup's dream," said Narinder Singh, Founder and CEO, Appirio. "Salesforce.com has removed key critical barriers to startup success. Providing a turnkey global distribution network will allow us to focus on coming up with innovative applications."
AppStore Referral Program
The AppStore Referral Program will provide access to marketing services intended to increase demand for partners' AppExchange solutions. The Referral Program will be offered at two levels:
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