Callidus Software Switches from SalesLogix's Client/Server Model to Salesforce.com's Online Customer Relationship Management

Leader in incentive management solutions sees immediate benefits with saleforce.com after abandoning client/server CRM

SAN FRANCISCO, Calif. — November 13, 2002 — Salesforce.com, the market leader in online customer relationship management (CRM), today announced that Callidus Software, the industry expert in Enterprise Incentive Management (EIM) solutions for enterprise customers, has standardized on salesforce.com Professional Edition. After finding solutions from leading mid-market vendor SalesLogix, a subsidiary of The Sage Group plc (London: SGE.L), unable to perform as needed, Callidus selected salesforce.com's online CRM solution for its quick implementation, flexibility, robust reporting and easy synchronization.

Callidus was able to implement salesforce.com in less than two months, and began to see the benefits of the online system immediately. Callidus sales managers now quickly create reports and forecasts with a variety of attributes - from sales closures to pipelines to loss reports - that allow them to better manage and target their sales efforts with current and critical customer information.

In addition, since its migration from SalesLogix, Callidus has used Salesforce.com's monthly subscription service and hosted model to reduce maintenance and consultant costs related to hardware and software installation, implementation, upkeep, and upgrades of client/server systems.

"Despite our efforts and cost outlays, SalesLogix never performed as we needed it too. Salesforce.com began to satisfy our CRM needs from the word go," said Chris Cabrera, vice president of sales for Callidus. "Salesforce.com's ad hoc reporting and on-the-fly customization have revolutionized the way we conduct business. With salesforce.com, everyone — from sales to the executive team to product management to marketing — has better command of customer information without the headaches of traditional software."

"As the leader in the enterprise incentive management space, Callidus has seen its deal size double in the past year. The existing client/server model just became too costly and ineffective to handle Callidus' growing needs and increased customer traction led the company to rethink its CRM system," said Marc Benioff, chairman and CEO of salesforce.com. "Salesforce.com is dedicated to being the ideal solution companies can turn to for user-friendly and reasonably priced CRM and we are pleased to add Callidus to our customer roster."

Callidus joins a growing list of companies that have switched from the client/server model to salesforce.com due to its affordable pricing, easy-to-use products and quick implementation. According to analyst firms, enterprise CRM software offerings fail to meet expectations more than 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.

Salesforce.com has 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 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/uk/, or call 0800 0921223 .