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 SuccessFactors and Xactly Corporation Partner to Deliver On-Demand Performance, Talent Management and Sales Compensation Management Solutions Leading On-Demand Vendors to Jointly Market and Sell Complementary Solutions SAN JOSE, Calif. - February 12, 2007 - Xactly Corporation, (www.xactlycorp.com), the leader in automated on-demand sales compensation management, and SuccessFactors, Inc., the global leader in on-demand performance and talent management solutions, today announced a strategic sales and marketing partnership to deliver their respective solutions to each others prospects and customers. "Xactly Corporation and SuccessFactors are both pure on-demand solution providers and are committed to working with partners who share a common, philosophical view," said Steve DeMarco, Xactly, vice president of business development. "We're pleased to partner with SuccessFactors who is the market leader in on-demand performance talent management. Together, we'll be able to provide increased value to help customers reap the rewards of fully integrated discretionary compensation planning solutions from SuccessFactors and best-in-class non-discretionary sales compensation management offerings from Xactly, all delivered seamlessly on-demand." "There is an undeniable synergy between the offerings of our two organizations allowing for one unified compensation philosophy to be delivered quickly and seamlessly to the entire employee population, said Roger Goulart, SuccessFactors, vice president of business development and alliances. "No longer do compensation management decisions for sales need to be made in isolation from the broader employee population. Planning for employee merit increases, stock and stock option allocations, MBO bonuses, and sales commission can now be done via one holistic initiative." Recent market analyst research from Gartner highlights broad-based interest and growing market momentum for both on-demand sales compensation management and performance and talent management solutions. According to Gartner, "A sales performance management market will coalesce around best-of-breed vendors largely originating from the sales incentive compensation management (ICM) market. This is the domain that has developed into a sustainable, discrete market." (Predicts 2007: Diversity Persists in the CRM SFA Market, Michael Dunne, 10 November 2006) A separate Gartner report comments on the intersection of Software-as-a Service (SaaS) with the sales ICM category: "Significant uptake of SaaS solutions has already occurred in recruitment and employee performance management. We are seeing significant adoption of SaaS in compensation management as well." (Predicts 2007: Software as a Service Provides a Viable Delivery Model, Robert P. Desisto, 13 November 2006) Xactly is the first and only company completely focused on delivering a 100% on-demand sales compensation management solution. It is also the first and only company to deliver a true multi-tenant solution in a SAS 70 Type II certified environment. This single-minded approach enables Xactly to minimize hardware and software infrastructure costs - savings that are then passed on to customers - and accelerate the process by which it delivers new features and functionality.About SuccessFactors About Xactly Corporation # # # ©2007 Xactly Corporation. All rights reserved. Xactly, "Incent right. Sell more.," Xactly Incentive Estimator, Xactly Document Management, Xactly Analytics, Xactly Data Management and Xactly Incent are trademarks or registered trademarks of Xactly Corporation. All other trademarks are the property of their respective owners. Media Contacts: Dan Rampe Kristin Reeves
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