SuccessFactors Named a Leader in Industry Analyst Market Analysis

Leading Market Research Firm's Comprehensive Overview of Integrated Talent Management Vendors Places SuccessFactors at the Forefront

SAN MATEO, Calif.--(BUSINESS WIRE)--Jan. 8, 2009--SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions, today announced impressive results in being named a leader in Integrated Talent Management by IDC, premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.

The IDC vendor assessment for the integrated talent management market entitled IDC Marketscape: Worldwide Integrated Talent Management 2008 Vendor Analysis¹ represents IDC's opinion on which vendors are well positioned today through current capabilities and which are best positioned to gain market share over the next few years. In Integrated Talent Management - defined as functions that serve to attract, develop, reward and retain the workforce on a single platform with a common shared database and underlying architecture - IDC clearly positions SuccessFactors in the leader category, based on its capabilities, strategy, market share and growth. IDC also cites Software-as-a-service (SaaS) as the emerging delivery model for these solutions.

"Driven by a renewed war for talent, especially in the current economic realities, HR and management have stepped up their interest in attracting, developing, and retaining top performers," said Lisa Rowan, IDC's program director for HR, Learning, and Talent Strategies. "SuccessFactors' Talent management suite offers a prominent end-to-end solution leading the marketplace and illustrating the continuous circle and strategic interdependency of the various talent management functions within an organization."

In its analysis, IDC cited SuccessFactors as "one of just a few vendors...that comes to the market directly to end-to-end talent management with an initial focus on performance management... SuccessFactors' strengths include strong brand recognition and marketing messaging, innovative capabilities and user experience, formal tools for helping buyers justify investments, and a focus on internal talent."

"IDC continues to provide valuable analysis to the user community, so positive recognition for leadership status in talent management is especially gratifying," said Lars Dalgaard, founder and CEO of SuccessFactors. "As global enterprises strive to do more with less and closely align its people with corporate strategy, they can rely on SuccessFactors for real world solutions to drive business performance."

The SuccessFactors Performance and Talent Management Suite, which includes Performance Management, Goal Management, 360 Degree Reviews, Succession Management, Compensation Management, Learning and Development, Recruiting Management, Employee Profile, and Analytics and Reporting applications, creates a company-wide network of information related to employee performance, including skill-sets, interests, career aspirations, ability to relocate, experience, languages spoken and more. By providing deep, real-time, company-wide visibility into such critical performance data, companies are able to make better, more informed decisions about how to promote, recruit, compensate, reward and manage their entire employee base.

About SuccessFactors, Inc.

SuccessFactors is one of the fastest growing public software companies and the leading provider of on-demand employee performance and talent management solutions. The company enables organizations of every size, and across every industry and geography, to achieve high-performing workforces through goal alignment and execution, talent development and planning, and pay-for-performance initiatives. From 92 customers and approximately 282,000 end users in 2003 to more than 2,360 customers and 4 million end users today, SuccessFactors' solutions are widely deployed across 60 industries in over 185 countries in 31 languages. Founded in 2001 with offices around the world, the company employs passionate people focused on revolutionizing the future of work. For more information, visit: http://www.successfactors.com.

¹ IDC, IDC Marketscape: Worldwide Integrated Talent Management 2008 Vendor Analysis, Doc # 215912, December 2008

CONTACT: SuccessFactors
Dominic Paschel, 650-645-4474 (Public & Investor Relations)
dpaschel@successfactors.com

Source: SuccessFactors, Inc.