AMR Research Ranks as Market Share Leader with 44% of Hosted Customer Management Market

Leading Industry Researcher Recognizes AppExchange as "Growth Driver"

SAN FRANCISCO — August 21, 2006 — [NYSE: CRM], the market and technology leader in on-demand business services, today announced that AMR Research has ranked the company as the market share leader with 44 % of the Hosted Customer Management market. In addition, AMR reported that, "continuing its stellar growth" moved from 12th to 6th place on the list of overall Customer Management vendors. With the combination of Oracle and Siebel in 2006, ranks in the top five. The overall customer management market is expected to reach $18 billion by 2010.

AMR Research concluded that, "Boosted by the continued contribution from hosted software vendors, the (overall) customer management applications market showed substantial growth for the second straight year... Hosted revenue, primarily from the software-as-a-service (SaaS) model, continued to act as a catalyst with 60 % growth in 2005."

The report continued, "The SaaS phenomenon has also served as a significant market catalyst. Benefits such as ease of use, lower risk, shorter deployments, and lower upfront costs have helped to reinvigorate the customer management market not only in SMBs, but also within larger enterprises. SaaS is now seeing more success in larger enterprises as well, helping to drive continued growth. SaaS will continue to pull the (overall) customer management market along with a 24% compounded annual growth rate (CAGR)."

The AMR Research study, The Customer Management Applications Report, 2005-2010, also recognized AppExchange,'s on-demand platform, as a key "growth driver," stating, "New innovation will enhance the customer management market as small startup vendors are beginning to see an infusion of venture funding once again...'s AppExchange (is) providing (a) low-cost platform to help incubate innovative startup companies."

"AMR Research's report demonstrates that on-demand computing has arrived and that The Business Web is the platform of the future," said Marc Benioff, chairman and CEO of "We applaud them for their insightful analysis and visionary conclusions."

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