Salesforce.com 2010 Annual Report Download - page 14

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Table of Contents
Customer Service and Support
Our global customer support group responds to both business and technical inquires from our customers relating to how to use our products and is
available to customers by the web, telephone and email.
Basic customer support during business hours is available at no charge to customers who purchase any of our paying editions. Premier customer support
includes extended availability and additional services, such as an assigned support representative and/or administrator. Premier customer support is available
for a separate fee, or is included in our Unlimited Edition. Additional support services include developer support and partner support.
Seasonality
Our fourth quarter has historically been our strongest quarter for new business. For a more detailed discussion, see the "Seasonal Nature of Deferred
Revenue and Accounts Receivable" discussion in Management's Discussion and Analysis.
Competition
The market for enterprise CRM business applications and development platforms is highly competitive, rapidly evolving and fragmented, and subject to
changing technology, shifting customer needs and frequent introductions of new products and services. Many prospective customers have invested substantial
personnel and financial resources to implement and integrate traditional enterprise software into their businesses, and therefore may be reluctant or unwilling
to migrate to an enterprise cloud computing application service. Additionally, third party developers may be reluctant to build application services on our
platform since they have invested significantly in other competing technology products.
We compete primarily with vendors of packaged CRM software and companies offering on-demand CRM applications. We also compete with
internally developed applications and face, or expect to face, competition from enterprise software vendors and online service providers who may develop
toolsets and products that allow customers to build new applications that run on the customers' current infrastructure or as hosted services. Our current
principal competitors include:
enterprise software application vendors;
on-demand CRM application service providers;
enterprise software application service providers;
traditional platform development environment companies; and
cloud computing development platform companies.
We believe that as enterprise software application and platform vendors shift more of their focus to cloud computing, they will be a greater competitive
threat.
We believe the principal competitive factors in our market include the following:
proven track record of customer success;
speed and ease of implementation;
product functionality;
financial stability and viability of the vendor;
product adoption;
ease of use and rates of user adoption;
11