Saba Software (SABA)

Sales and Marketing

We license our products and sell our OnDemand services to organizations through a worldwide direct sales force and global network of alliance partners. Our direct sales efforts target large enterprises, including Global 2000 businesses, mid-size organizations and government entities. As of May 31, 2008, we had 73 sales and marketing professionals. Our channel sales efforts involve value-added resellers around the globe, as well as systems-integrator relationships.

We focus our marketing efforts on extending our market leadership, establishing market positioning, generating sales leads, supporting sales efforts, creating awareness of our solutions in the market and establishing strong brand awareness. Our marketing activities include public relations, analyst relations, direct marketing, advertising, industry trade shows, online marketing, seminar programs, and customer community building.

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Table of Contents

Sales and Marketing

We license our products and sell our OnDemand services to organizations through a worldwide direct sales force and global network of alliance partners. Our direct sales efforts target large enterprises, including Global 2000 businesses, mid-size organizations and government entities. As of May 31, 2007, we had 103 sales and marketing professionals. Our channel sales efforts involve value-added resellers around the globe, as well as systems-integrator relationships.

We focus our marketing efforts on extending our market leadership, establishing market positioning, generating sales leads, supporting sales efforts, creating awareness of our solutions in the market and establishing strong brand awareness. Our marketing activities include public relations, analyst relations, direct marketing, advertising, industry trade shows, online marketing, seminar programs, and customer community building.

Sales and Marketing

We license our products and sell our OnDemand services to organizations through a worldwide direct sales force and global network of alliance partners. Our direct sales efforts target large enterprises, including Global 2000 businesses, mid-size organizations and government entities. As of May 31, 2006, we had 121 sales and marketing professionals. Our channel sales efforts involve value-added resellers around the globe, as well as systems-integrator relationships.

We focus our marketing efforts on extending our market leadership, establishing market positioning, generating sales leads, supporting proposals and sales efforts, creating market awareness of our solutions and establishing strategic relationships. Our marketing activities include public relations, analyst relations, direct marketing (email, tele-contact and direct mail campaigns), industry trade shows, web and in-person seminar programs, speaking engagements and web presence.

Sales and marketing.

Sales and marketing expense decreased $427,000, or 2%, during fiscal 2005 compared to fiscal 2004 due primarily to a decrease in travel and entertainment and other personnel-related costs of approximately $160,000 and a decrease in facilities related costs of approximately $460,000. These costs were partially offset by an increase in marketing related programs and services of approximately $240,000.

Sales and marketing expense decreased $8.1 million, or 31%, during fiscal 2004 compared to fiscal 2003 as a result of a reduction in salary and employee benefits expense of $3.0 million, due to fewer sales and marketing personnel, a decrease in severance payments of $605,000, reduced commissions of $1.6 million due to lower revenues and a decrease of $965,000 as a result of lower marketing expenditures.