Salesforce.com 2005 Annual Report Download - page 9

Table of Contents
additional charge. We offer advanced modules for an additional subscription fee to customers that require enhanced CRM capabilities. We also
evaluate acquisition or investment opportunities in complementary companies, services and technologies in an effort to strengthen and extend our
service offering. In addition to accommodating new CRM features, we believe that our technology infrastructure is able to support entirely
different, non-CRM application capabilities.
• Pursue new customers and new territories aggressively. We believe that our on-demand CRM application service provides significant value for
businesses of any size, from small businesses to the largest Fortune 500 corporations. As a result, we will continue to aggressively target
businesses of all sizes, primarily through our direct sales force. We have steadily increased and plan to continue to increase the number of direct
sales professionals we employ, and we intend to develop additional distribution channels for our service. We have created several editions of our
service to address the distinct requirements of businesses of different sizes. We also believe that there is a substantial market opportunity for our
service outside of North America. We plan to continue to aggressively market to customers outside of North America by recruiting local sales and
support professionals, building partnerships that help us add customers in these regions and increasing the number of languages we support. As of
January 31, 2006, we offer our service in 12 languages.
• Deepen relationships with our existing customer base. We believe there is significant opportunity to leverage our relationships with existing
customers. We want to sell more subscriptions to existing customers by targeting additional functional areas and business units within the customer
organization and pursuing enterprise-wide deployments, and we want to provide professional service offerings that are complementary to our
service and enable us to sell subscriptions to larger customers who require assistance with complex integrations and customizations.
In addition, by continuously enhancing the functionality of our service, we believe that customers will find more uses for our service and therefore
purchase additional subscriptions, continue to renew their existing subscriptions and upgrade to more fully featured versions such as our Enterprise
Edition.
• Encourage the development of third-party applications on our AppExchange API platform. Our AppExchange API (previously called sforce)
platform enables existing customers and third-party developers to develop and deliver applications complementary to our core service offering. It
is a platform where applications can be built and traded. We believe the ecosystem of developers will address the business requirements of both
current and potential subscribers. The AppExchange API platform enhances the attractiveness of our service, particularly to enterprise customers,
by enabling them to accelerate the integration of our service with their existing applications. With the introduction of the AppExchange Builder,
we are able to continue to augment the tools and services we provide to developers and foster their development of new applications.
In continuing with our efforts to encourage the development of third-party applications that will benefit our customers, in September 2005 we
introduced the AppExchange directory, an online marketplace that we host for our customers, developers and partners to exchange custom
applications that are built on and can integrate with our service.
The salesforce.com Service
We provide a comprehensive array of on-demand CRM and business application services, which enable customers and subscribers to systematically
record, store, and act upon business data and to help businesses manage customer accounts, track sales leads, evaluate marketing campaigns, and provide post-
sales service. We also enable companies to generate reports and summaries of this data and share them with authorized individuals across functional areas.
Our CRM services mainly focus on the following areas:
• Sales Force Automation, which is marketed under our brand Salesforce SFA, enables salespeople to be more productive by automating manual
and repetitive tasks and by providing them with better, more organized data about current and prospective customers. Salesforce SFA helps
companies establish a
6