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Chairman & CEO salesforce.com Marc BenioThe Best of Both Worlds 1

Oracle OpenWorld 2010 Keynote - Marc Benioff

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Welcome to Cloud 2: The Next Generation of Enterprise CollaborationMarc Benioff, chairman and CEO of salesforce.com, delivered his vision for Cloud 2, a new generation of enterprise applications built for collaboration and inspired by consumer applications such as Facebook and Twitter. Marc shared how salesforce.com-Oracle customers are using Chatter, the world's first enterprise collaboration app and platform in the cloud, helps you glean more insights from Oracle systems and all your enterprise apps with real-time feeds and updates. Benioff and his guests also show product demos and present customer testimonials on the rapid adoption and success of Chatter today.

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Page 1: Oracle OpenWorld 2010 Keynote - Marc Benioff

Chairman & CEOsalesforce.com

Marc Benio!

The Bestof

Both Worlds

1

Page 2: Oracle OpenWorld 2010 Keynote - Marc Benioff

Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could di!er materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of intellectual property and other litigation, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could a!ect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year ended July 31, 2010. This documents and others are available on the SEC Filings section of the Investor Information section of our Web site.

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 our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

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Page 3: Oracle OpenWorld 2010 Keynote - Marc Benioff

Our Mission: Cloud Computing Driver, Catalyst & Evangelist

1960sMainframe

1980sClient/server

TodayEnterprise Cloud Computing

3

Page 4: Oracle OpenWorld 2010 Keynote - Marc Benioff

394377

354

331316

305290

276263

248

217

192177

162144

130118

10591

8372

6455

464135

Qua

rterly

Rev

enue

($M

)

Revenue through fiscal quarter ended 7/31/10

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

First Cloud Company to Exceed $1.5 Billion25% Quarterly Revenue Growth Y/Y in Q1 FY11

FY2011

Annual Revenue Run RateFastest Growing Company 2010

$1.5 Billion+ #4

4

Page 5: Oracle OpenWorld 2010 Keynote - Marc Benioff

82400

77300

72500

67900

62300

59300

55400

51800

47700

43600

41000

38100

35300

32300

29800

27100

24800

22700

20500

18700

16900

15500

13900

12500

111009800

87007700

70006300

570051004900

4300350030002500200015001125750

FY2006 FY2007 FY2008 FY2009FY2002 FY2003 FY2004 FY2005

Strong Growth In New Customers

FY2010 FY2011

Paying Customers

82,400+

5

Page 6: Oracle OpenWorld 2010 Keynote - Marc Benioff

Applications Moving to the Cloud

TodayCloud Computing Applications

apps

1960sMainframe

1980sClient/server

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Page 7: Oracle OpenWorld 2010 Keynote - Marc Benioff

1960sMainframe

Platforms Moving to the Cloud

1980sClient/server

TodayCloud Computing Platforms

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Page 8: Oracle OpenWorld 2010 Keynote - Marc Benioff

1980sWorkgroup Computing

Lotus Notes

2000sIntranet Computing

Microsoft Groove

File Sharing

TodaySocial Computing

Collaboration Moving to the Cloud

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Page 9: Oracle OpenWorld 2010 Keynote - Marc Benioff

ENTERPRISE

MID-MARKET

SMALL BUSINESS

The Cloud Serves Companies of Every Size

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Page 10: Oracle OpenWorld 2010 Keynote - Marc Benioff

Multi-tenantPay-as-you-go

ElasticReal-time

5x Faster

*IDC Report: “Force.com Cloud Platform Drives Huge Time to Market and Cost Savings”, September, 2009. Applies to development of custom applications on Force.com.

1/2 the Cost

The Cloud Computing Model

*

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Page 11: Oracle OpenWorld 2010 Keynote - Marc Benioff

Cloud Computing: 90% More E!cient

On-premise Software

1.35

0.03

CO2 Emissions (grams CO2/transaction)

Salesforce.com consumes 90% less energy than traditional software.

*”Cloud Computing Emissions Comparison,” Nucleus Research, September 2, 2010. Watt-hrs per transaction statistics converted to CO2 / transaction by salesforce.com using U.S. carbon numbers.

“ ”

0.2

13

Page 12: Oracle OpenWorld 2010 Keynote - Marc Benioff

The Cloud Computing Test

Other vendors

Hardware/Software Costs ? $0

Automatic Upgrades ? 3 per year

Scalability ? Instant

Democratic ?1/3 small business

1/3 midsize business

1/3 large business

Apps Marketplace ? 900+ apps

Energy E"ciency ? .03 grams CO2/transaction

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Page 13: Oracle OpenWorld 2010 Keynote - Marc Benioff

Beware of the False Cloud

The False Cloud:

is NOT e"cient

is NOT democratic

is NOT economical

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Page 14: Oracle OpenWorld 2010 Keynote - Marc Benioff

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Page 15: Oracle OpenWorld 2010 Keynote - Marc Benioff

"This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available upon request from salesforce.com. To access the report, please go to www.salesforce.com."

Top 100 Innovative Companies

Technology of The Year

The 100 Most Trustworthy Companies

Recognition For Innovation In The Cloud

One of 2010’s Most Ethical Companies

Think Forward Award 2010

Third Fastest Growing Hi-Tech Company 2009

Market LeaderEnterprise CRM

Top 10 Entrepreneurs & Cool Company

Best Mobile ExperienceBest Social Networking Solution

Forrester Groundswell Award

#43 Best Places to WorkEditor’s Choice 2010Professional Edition

LeaderSales Force Automation

VisionaryEnterprise Application Servers

LeaderCRM Customer Service Contact Centers

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Page 16: Oracle OpenWorld 2010 Keynote - Marc Benioff

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Page 17: Oracle OpenWorld 2010 Keynote - Marc Benioff

192,000+ hourscommunity service8,500+non-profit organizations$20 million+grants

1% TimeEquityProduct

ShareTheModel.org

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Page 18: Oracle OpenWorld 2010 Keynote - Marc Benioff

Ten-Year Computing Cycles10X the number of users per cycle

1980s Client/server Computing

1970s Mini Computing

1990s Desktop Internet Computing

2000s Mobile Internet Computing

1960s Mainframe Computing

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Page 19: Oracle OpenWorld 2010 Keynote - Marc Benioff

2009: Social Networking Surpasses Email

250

450

650

850

11/06 3/07 7/07 11/07 3/08 7/08 11/08 3/09 7/09 11/09

Email UsersSocial Networking Users

Glo

bal U

sers

(MM

)

Source: Morgan Stanley Internet Mobile Report, December 2009

Inflection Point

21

Page 20: Oracle OpenWorld 2010 Keynote - Marc Benioff

0

15.0

6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09

Broad Change in Internet UsagePe

rcen

t of O

nlin

e U

sage

Top Internet Uses

Search

Chart Source: Morgan Stanley Internet Mobile Report, December 2009

22% of internet time is social.

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Page 21: Oracle OpenWorld 2010 Keynote - Marc Benioff

Next Generation Devices Changing How We Access the Internet

Ann

ual U

nit S

hipm

ents

(MM

)

2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E

Desktop

Smartphones

Notebook PCs

0

250

500

750

1000

Source: Morgan Stanley Internet Mobile Report, December 2009

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Page 22: Oracle OpenWorld 2010 Keynote - Marc Benioff

Fundamental Shift in Cloud Computing

Real-time Cloud . Collaboration . MobileLow Cost . Fast . Easy-to-use

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Page 23: Oracle OpenWorld 2010 Keynote - Marc Benioff

Why isn’t all enterprise software like

Amazon.com?

Why isn’t all enterprise software like ?

1999 2010

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Page 24: Oracle OpenWorld 2010 Keynote - Marc Benioff

1999

“The Facebook Imperative”: The World Has Changed

2010Amazon.comTabs Pull

ClickDesktop

FixedLocation Unknown

Windows/MacSelf-integrated

FacebookFeeds Push TouchSmartphone/TabletMobile Location Aware Cocoa/HTML 5Marketplace

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Page 25: Oracle OpenWorld 2010 Keynote - Marc Benioff

Profiles Groups Feeds Content Sharing App UpdatesSecurity &

Sharing Chatter APIStatus Updates

Elastic Database & Stored Procedures

Programmable Cloud Logic

Visual Process Manager

Real-time Websites

Real-time Mobile Deployment

Integrated Content Library

Real-time Analytics

Integrated Knowledge

900+ Integrated Apps

Programmable User Interface

ISO 27001 Certified Security

Proven, Real-time Scalability

Real-time Query Optimizer

Real-time Transparent

Status5 Minute Upgrade

Proven, Real-time Integration

Real-time Sandbox

EnvironmentSalesforce to

Salesforce

3 Global Data Centers &

Disaster RecoveryProven Reliability

Multitenant Kernel

chat

ter

plat

form

deve

lopm

ent

plat

form

clou

d in

fras

truc

ture

Forc

e.co

m

JigsawData Cloud Cloud Apps

27

Page 26: Oracle OpenWorld 2010 Keynote - Marc Benioff

Cloud

28

Page 27: Oracle OpenWorld 2010 Keynote - Marc Benioff

Founder, Chairman, & CEOMichael Dell

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Page 28: Oracle OpenWorld 2010 Keynote - Marc Benioff

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Page 29: Oracle OpenWorld 2010 Keynote - Marc Benioff

SVP, Product MarketingKraig Swensrud

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Page 30: Oracle OpenWorld 2010 Keynote - Marc Benioff

Customers Succeeding with Chatter

Source: Salesforce.com Customer Relationship Survey conducted September 2010 of over 200 customers.

Average Percentage Improvements Reported by Customers

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Page 31: Oracle OpenWorld 2010 Keynote - Marc Benioff

Today, It’s Impossible To Stay On Top Of Everything

SharepointLotusNotes

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Page 32: Oracle OpenWorld 2010 Keynote - Marc Benioff

Cloud 2 Meets The Enterprise

Cloud 2:

Trusted:

Real-time Feeds:

Works like Facebook

People, documents, and app data is pushed to you

Secure, private application

Connects to Oracle

The conversation starts here.

Integrated:

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Page 33: Oracle OpenWorld 2010 Keynote - Marc Benioff

Introducing the Next Generation of Enterprise Collaboration

Chatter Central

Dozens of Major, New Capabilities

Chatter Search

Dashboard Chatter

Chatter Filters

Chatter Recommendations

Chatter Email Manager

Chatter Files

Chatter AnalyticsChatter Topics#

Activity Chatter

Chatter Digest Emails

Chatter Desktop

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Page 34: Oracle OpenWorld 2010 Keynote - Marc Benioff

Chatter for Every Major Mobile Device

Native iPhone, iPad, and BlackBerry Chatter Apps Generally Available in late 2010.

iPadiPhone Streak

37

Page 35: Oracle OpenWorld 2010 Keynote - Marc Benioff

Demonstration

38

Page 36: Oracle OpenWorld 2010 Keynote - Marc Benioff

Vice President, Business Information Organization

John Miles

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Page 37: Oracle OpenWorld 2010 Keynote - Marc Benioff

Demonstration

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