Magma Design Automation Selects Salesforce.com for 400 Employees

Advanced customization and integration capabilities, ubiquitous on-demand access, highlight three year deal

SAN FRANCISCO, Calif. - January 12, 2004 - Salesforce.com, the world leader in delivering on-demand applications, today announced that Magma Design Automation (NASDAQ: LAVA), a provider of chip design solutions, has chosen salesforce.com for on-demand customer relationship management (CRM) service. Magma has implemented sales force automation and customer service and support for 400 employees worldwide. Magma chose salesforce.com over expensive client/server CRM software because it offers state-of-the-art functionality, immediate access to current customer information on-demand, and the ability to customize and integrate salesforce.com using the sforce on-demand application server.

"Because our business is built on ensuring the success of our customers' designs, it is critical that we closely monitor the progress of our field personnel and respond quickly to ensure that potential customers receive the highest level of support," said David Brooks, director of CRM for Magma. "We needed a new, cost-effective sales force automation system that integrated marketing and sales with customer service and support. We selected salesforce.com because it offered the functionality and integration we needed and enabled us to deploy a complete enterprise CRM system for our large company for under one million dollars."

Based in California with offices spread throughout the world, Magma needed a browser-based CRM solution that their employees could access anytime, from any location. Magma sales and support employees spend a significant amount of time on-site at their prospects' and customers' offices and need quick and easy access to the most current data and information available. Prior to implementing salesforce.com, sales reps had to access CRM software behind a firewall, necessitating the use of a VPN from the client site. However, because many companies are not comfortable with the idea of a VPN connection from behind their firewall into Magma's corporate network, Magma's CRM remained largely unused. By switching to salesforce.com's on-demand service, Magma's reps can now have direct access to the most up-to-date customer, product, and service information, from any location. As a result, they are better able to provide the most current chip design and performance information to their customers and prospects.

In addition, Magma used sforce, the salesforce.com on-demand application server, to customize and extend salesforce.com to meet their customer sales and support needs. Sforce's custom objects enabled Magma to customize the data structures to match their business, and sforce's Web Services APIs made it possible for Magma to create new forms and data entry screens for their users.

"Businesses with widely dispersed or highly mobile sales teams have traditionally gravitated to salesforce.com's software-as-service model," said Marc Benioff, chairman and CEO, salesforce.com. "In addition, enterprises like Magma with complex CRM needs are turning to salesforce.com for its state-of-the-art features, advanced customization tools, and ease of integration into legacy applications."

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 .