Salesforce.com 2013 Annual Report Download - page 34

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion contains forward-looking statements, including, without limitation, our
expectations and statements regarding our outlook and future revenues, expenses, results of operations, liquidity,
plans, strategies and objectives of management and any assumptions underlying any of the foregoing. Our actual
results may differ significantly from those projected in the forward-looking statements. Our forward-looking
statements and factors that might cause future actual results to differ materially from our recent results or those
projected in the forward-looking statements include, but are not limited to, those discussed in the section titled
“Forward-Looking Information” and “Risk Factors” of this Annual Report on Form 10-K. Except as required by
law, we assume no obligation to update the forward-looking statements or our risk factors for any reason.
Overview
We are a provider of enterprise cloud computing solutions. We were founded on the simple concept of
delivering customer relationship management, or CRM, applications via the Internet, or “cloud.” We introduced
our first CRM solution in February 2000 and we have expanded our offerings with new editions, solutions and
enhanced features, through internal development and acquisitions. We sell to businesses of all sizes and in almost
every industry worldwide on a subscription basis.
Our mission is to help our customers transform themselves into “customer companies” by empowering them
to connect with their customers, partners, employees and products in entirely new ways. Our objective is to
deliver solutions to help companies transform the way they sell, service, market and innovate. With our four core
services—Sales Cloud, Service Cloud, Marketing Cloud and the Salesforce Platform—customers have the tools
they need to build a next generation social front office with our social and mobile cloud technologies. Key
elements of our strategy include:
• Strengthening our market-leading core solutions;
• Innovating in high-growth markets;
• Improve renewal rates;
• Deepening relationships with our existing customer base;
• Pursuing new customers aggressively;
• Building our business in top markets globally; and
• Encouraging the development of third-party applications on our cloud computing platforms.
We believe the factors that will influence our ability to achieve our objectives include: our prospective
customers’ willingness to migrate to enterprise cloud computing services; the availability, performance and
security of our service; our ability to continue to release, and gain customer acceptance of, new and improved
features; our ability to successfully integrate acquired businesses and technologies; successful customer adoption
and utilization of our service; acceptance of our service in markets where we have few customers; the emergence
of additional competitors in our market and improved product offerings by existing and new competitors; the
location of new data centers; third-party developers’ willingness to develop applications on our platforms; our
ability to attract new personnel and retain and motivate current personnel; and general economic conditions
which could affect our customers’ ability and willingness to purchase our services, delay the customers’
purchasing decision or affect renewal rates.
To address these factors, we will need to, among other things, continue to add substantial numbers of paying
subscriptions, upgrade our customers to fully featured versions such as our Unlimited Edition or arrangements
such as a Social Enterprise License Agreement, provide high quality technical support to our customers,
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