Bertelsmann Services Replaces Siebel Systems with Salesforce.com for Online Customer Relationship Management

Sales team gains full CRM functionality without high costs and complexity of client/server system

SAN FRANCISCO, CA — July 22, 2002 — Salesforce.com, the market leader in online customer relationship management (CRM), today announced that Bertelsmann Services, a leading global provider of outsourced service solutions for the healthcare, technology, broadband, publishing, automotive, and travel industries, has standardized its U.S. sales division on salesforce.com. After realizing the benefits of salesforce.com's powerful, online CRM solution, Bertelsmann Services made the decision to migrate its existing Siebel [NASDAQ: SEBL] database into salesforce.com.

Before implementing salesforce.com, Bertelsmann Services used a CRM package from Siebel Systems for more than two years. Because the division had a difficult time inputting, extracting and reporting on data within the Siebel environment, they selected salesforce.com for its easy to use, intuitive online interface. Within days, and without IT involvement, salesforce.com was up and running, providing Bertelsmann Services with an integrated 360-degree view of their customers that could be accessed from any location via the Internet. The company estimates that for approximately one-fourth of the cost of its Siebel implementation, it has been able to leverage salesforce.com to create a collaborative selling environment for its geographically dispersed sales force.

"We realized almost immediately that salesforce.com could provide the CRM functionality that the sales team needs without the excess burden of long training sessions, costly implementation cycles and IT problems associated with client server systems," said Markus Ramirez, vice president, Consumer Services of Bertelsmann Services. "Salesforce.com provides a comprehensive CRM system that is easy to use and eliminates wasted time and money trying to generate critical reports and training new people on a complex system. Salesforce.com helps make Bertelsmann Services more effective in meeting the needs of our customers."

Bertelsmann Services 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, such as offerings from Siebel, PeopleSoft [NASDAQ: PSFT], and SAP [NYSE: SAP], 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 in enterprise technologies purchased in the last two years has 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 an international leader such as Bertelsmann Services with a CRM system that can meet its critical business needs."

In the past year, salesforce.com has added more CRM customers than have Siebel, PeopleSoft, Oracle, and SAP combined. Salesforce.com currently has over 4,800 customers for its online CRM solution, including global leaders such as Le Meridien Hotels Worldwide, Autodesk, USA Today, Kikkoman, and Daiwa Securities. Salesforce.com provides companies of all sizes with an enterprise-class CRM solution at a fraction of the cost, fraction of the time, and fraction of the risk of traditional software systems. Salesforce.com delivers its CRM solution as an online information utility via a Web Services infrastructure.

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.

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/eu/, or call 00800 7253 3333.