2. “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements including but not limited to statements concerning the potential market for our existing service offerings and future offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates. Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law. Safe Harbor Statement
Part of architecting a commercial is thinking about it’s delivery. Force.com provides a distribution mechanism to launch your commercial app. This is called the Distributed Organization Model. Let’s begin by defining organization: An organization or “org” for short is an instance of the Force.com environment. Each customer has an org. Depending on their edition, certain features are available in their org.In this diagram, we are outlining the distributed organization model. This is possible because of managed pacakges. The idea is simple, over on our left, you use your free Developer Edition to create your commercial app. After it’s complete. You can package it up as a managed package. You can then distribute this Managed Package through the AppExchange or Trialforce. Customers who have their own production org, can install your managed package and instantly have your app. If they are using Trialforce, the app is automatically bundled with the Force.com Edition when they signup for your trial. This model provides you the ability to distribute your app to many customers all at once, hence the name, distributed org model. The benefit is you can use the License Management app to track your installs and provision licenses. Also Managed Pacakges allow for seamless upgrades, so when you release a bug fix or new version, your customers can upgrade with a few clicks. You customers also benefit with this model because they can customize your app after they install to fit their particular needs. Also, they can have multiple apps installed in the same org to manage all their business needs.As we discuss the path to a commercial app, we will be focusing on this org model.