Callidus Software Switches from SalesLogix's Client/Server Model to Salesforce.com's Online Customer Relationship Management.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 13, 2002

Leader in Incentive Management Solutions Sees Immediate Benefits

With Saleforce.com After Abandoning Client/Server CRM 

Salesforce.com, the market leader in online customer relationship management (CRM), today announced that Callidus Software, the industry expert in Enterprise Incentive Management (EIM) solutions for enterprise customers, has standardized on salesforce.com Professional Edition. After finding solutions from leading mid-market vendor SalesLogix, a subsidiary of The Sage Group plc (London:SGE.L), unable to perform as needed, Callidus selected salesforce.com's online CRM solution for its quick implementation, flexibility, robust reporting and easy synchronization.

Callidus was able to implement salesforce.com in less than two months, and began to see the benefits of the online system immediately. Callidus sales managers now quickly create reports and forecasts with a variety of attributes -- from sales closures to pipelines to loss reports -- that allow them to better manage and target their sales efforts with current and critical customer information.

In addition, since its migration from SalesLogix, Callidus has used Salesforce.com's monthly subscription service and hosted model to reduce maintenance and consultant costs related to hardware and software installation, implementation, upkeep, and upgrades of client/server systems.

"Despite our efforts and cost outlays, SalesLogix never performed as we needed it too. Salesforce.com began to satisfy our CRM needs from the word go," said Chris Cabrera, vice president of sales for Callidus. "Salesforce.com's ad hoc reporting and on-the-fly customization have revolutionized the way we conduct business. With salesforce.com, everyone -- from sales to the executive team to product management to marketing -- has better command of customer information without the headaches of traditional software."

"As the leader in the enterprise incentive management space, Callidus has seen its deal size double in the past year. The existing client/server model just became too costly and ineffective to handle Callidus' growing needs and increased customer traction led the company to rethink its CRM system," said Marc Benioff, chairman and CEO of salesforce.com. "Salesforce.com is dedicated to being the ideal solution companies can turn to for user-friendly and reasonably priced CRM and we are pleased to add Callidus to our customer roster."

Callidus joins a growing list of companies that have switched from the client/server model to salesforce.com due to its affordable pricing, easy-to-use products and quick implementation. According to analyst firms, enterprise CRM software offerings fail to meet expectations more than 50 percent of the time. Chuck Phillips of Morgan Stanley in Optimize Magazine (April 2002) has estimated that $130 billion worth of enterprise technologies purchased in the last two years have not been implemented and that 40 percent of all enterprise software purchased is never installed.

Salesforce.com has more than 5,000 customers for its online CRM solution, including global leaders such as Le Meridien, Autodesk and USA Today. Salesforce.com delivers its CRM solution as an online information utility via a Web Services infrastructure. In the past year, salesforce.com has added more CRM customers than Siebel (Nasdaq:SEBL), PeopleSoft (Nasdaq:PSFT), Oracle (Nasdaq:ORCL) and SAP (NYSE:SAP) combined.

About salesforce.com

Salesforce.com builds and delivers customer relationship management (CRM) applications as scalable online services. The salesforce.com product suite -- Team Edition, Professional Edition, Enterprise Edition, and Offline Edition -- gives companies of all sizes a complete 360-degree view of the customer. The company's award-winning CRM solutions provide integrated online sales force automation, customer service and support management, and marketing automation applications to help companies meet the complex challenges of global customer communication. Salesforce.com has received considerable recognition in the industry, including Editors' Choice and two Five-Star ratings from PC Magazine, two Deploy Awards from InfoWorld, Red Herring 100, Upside Hot 100, Investor's Choice Award from Enterprise Outlook, Editor's Choice from TMCLabs, Top 10 CRM Implementation from Aberdeen Group, and InfoWorld's 2001 CRM Technology of the Year. Founded in 1999, salesforce.com is headquartered in San Francisco, with offices in Europe and Asia. Salesforce.com customers include Autodesk, Arvato Services, Dow Jones Newswires, Ericsson Microelectronics, Fujitsu Technology Solutions, Kikkoman Corporation, Le Meridien, Paymentech, PMI Mortgage Insurance, Putnam Lovell NBF, Siemens PT&D, Suntory Foods, Textron Fastening Systems, USA Today and Wachovia.

About Callidus Software Inc.

Callidus Software (http://www.CallidusSoftware.com), the leading provider of enterprise incentive management (EIM) solutions, boosts business results through effective management of a company's total compensation -- from traditional variable compensation to base salary, stocks and MBO's -- Callidus Software's EIM software automates the entire compensation process including design, access, plan modifications, forecasting and dispute resolution. Callidus' flagship product, TrueComp, automates modeling, administration, reporting and analysis of variable compensation tied directly to sales results ranging from sales commissions to payments to dealers, distributors, and retailers. Additional products within the Callidus EIM suite include TruePerformance, TrueClaims and Callidus Portal. Callidus Software's EIM suite provides precision, trust and understanding to successfully reward revenue-boosting behavior and optimize profitability drivers, thus improving business performance.

Callidus Software, founded in 1996, is privately backed by Crescendo Ventures, Crosspoint Venture Partners, Invesco Private Capital, ONSET Ventures, Goldman Sachs Group and Transamerica Technology Finance. Customers/Partners include Airborne Express, Inc., The Alexander Group, Credit Suisse Group, DIRECTV, Dun & Bradstreet, Electronic Data Systems Corporation, Juniper Networks, Inc., PricewaterhouseCoopers, Accenture LTD., AOL Time Warner Corporation, Pennzoil-Quaker State Company, Sun Microsystems, Telstra, Towers Perrin and Veritas, Inc.

Note to Editors: Salesforce.com is a trademark of salesforce.com, Inc., San Francisco, California. Other names used may be trademarks of their respective owners.