Salesforce.com 2005 Annual Report Download - page 17

Table of Contents
Unregistered trademarks we use include:
"Block S" logo
Success On Demand.
sforce
experience success.
AppExchange
CRMSuccess
The Business Web
We have received in the past, and may receive in the future, communications from third parties claiming that we have infringed on the intellectual
property rights of others. Any intellectual property claims, regardless of merit, may require us to seek licenses to that technology. In addition, we license third-
party technologies that are incorporated into some elements of our services. Licenses from third-party technologies may not continue to be available to us at a
reasonable cost, or at all. Additionally, the steps we have taken to protect our intellectual property rights may not be adequate. Third parties may infringe or
misappropriate our proprietary rights. Competitors may also independently develop technologies that are substantially equivalent or superior to the
technologies we employ in our services. If we fail to protect our proprietary rights adequately, our competitors could offer similar services, potentially
significantly harming our competitive position and decreasing our revenues.
Employees
As of January 31, 2006, we had 1,304 employees. We plan to hire additional personnel, particularly in customer-related areas, for the foreseeable future
as we continue to execute on our growth plan.
We believe our future success and growth will depend on our ability to attract and retain qualified employees in all areas of our business. None of our
employees is represented by a labor union. We consider our relationship with our employees to be good. However, we face competition for qualified
employees, and we expect to face continuing challenges in recruiting and retention.
Available Information
You can obtain copies of our Form 10-K, 10-Q, 8-K reports, and other filings with the SEC, and all amendments to these filings, free of charge from
our Web site at http://www.salesforce.com/company/sec-filings.jsp as soon as reasonably practicable following our filing of any of these reports with the SEC.
You can also obtain copies free of charge by contacting our Investor Relations department at the office address described above.
ITEM 1A. RISK FACTORS
RISK FACTORS WHICH MAY IMPACT FUTURE OPERATING RESULTS
Risks Related to Our Business and Industry
If our on-demand application service is not widely accepted, our operating results will be harmed.
We derive substantially all of our revenue from subscriptions to our on-demand application service, and we expect this will continue for the foreseeable
future. As a result, widespread acceptance of our service is critical to our future growth and success. Factors that may affect market acceptance of our service
include:
• reluctance by enterprises to migrate to an on-demand application service;
• a limited number of service offerings and risks associated with developing new service offerings;
• the price and performance of our service;
• the level of customization we can offer;
• the availability, performance and price of competing products and services;
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