Demandware Reports Record Growth in 2007; Continues Momentum into 2008

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Leading ecommerce platform developer enters 2008 with significant customer growth, strong partner ecosystem, and nearly 100 product enhancements

Demandware (, developer of the only enterprise-class, on-demand ecommerce platform, today announced outstanding results for 2007, including the launch of 38 new customer websites, the signing of several strategic partnerships, and the addition of close to one hundred new merchandising features to its eCommerce Platform. The company also expanded its operations with a larger U.S. headquarters in Woburn, Mass, new offices in the U.K and Germany, and a new data center in Germany.

"The market for on-demand ecommerce is exploding as retailers realize the clear advantages of our model versus packaged applications," said Stephan Schambach, chairman and founder of Demandware. "Our growth is a direct result of the value that our customers receive from running their ecommerce storefront on the Demandware Platform and our enterprise-class solutions and services. 2007 was a banner year for Demandware and we are positioned for even stronger growth in 2008."

AMR Research and RIS News surveyed the industry to assess operational and technology priorities. The study, based on a survey of more than 130 North American retail respondents across a wide-range of segments, company sizes, and business models, showed that 69% of retailers will replace their current e-commerce platform -- for order capture, catalog and content management, pricing and promotion management, and order inquiry by the end of 2008. Source: Rob Garf and Fenella Sirkisoon, AMR Research, "The State of Cross-Channel Operations," August 2007.

38 New Customer Sites Launched in 2007
Demandware and its partners launched 38 new ecommerce customer sites across the U.S. and Europe in 2007, with an average implementation cycle of four months, including leading brands such as Bare Escentuals, House of Fraser, Playmobil, Sally Beauty and Timberland.

Expanding Partner Ecosystem
Demandware expanded its partner ecosystem in 2007 through partnerships with complementary technology providers such as Allurent, Bazaarvoice, Certona, PowerReviews and RightNow Technologies. In addition, it established new strategic partner relationships with several leading end-to-end ecommerce services organizations, including:

  • Avenue A | Razorfish: one of the largest interactive marketing and technology services agencies in the world.
  • PFSweb: leading business process outsourcing firm selected Demandware in early 2008 to power its new end-to-end ecommerce solution.

Continuous Product Innovation
Demandware introduced 92 new product features to its eCommerce Platform in 2007, including updates to its promotions, catalog, pricing and site search functionality. All enhancements were delivered automatically to customers' ecommerce environments through hands-free upgrades. Significant product advancements include:

  • Advanced searchandising: ecommerce site search, tightly coupled with the product catalog, gives merchants real-time control over search relevancy rankings from within a single UI.
  • Source codes: source codes enable merchants to tie specific marketing actions to explicit merchandising tactics, thereby increasing customer conversion rates.
  • Gift registry: merchants can coordinate the registry of gifts online with physical stores and across multiple product categories, with inventory decrements appearing in real-time to ensure product availability.
  • Customer groups: dynamic and explicit customer segmentation based on specific attributes or shopping behaviors can be leveraged for more targeted merchandising and marketing.
  • Social merchandising: product-level integration with Bazaarvoice and PowerReviews, allows the display of ratings and reviews for a better shopping experience.

Enterprise-Class eCommerce Platform, Delivered On-Demand
Demandware is the only enterprise-class ecommerce platform that combines unsurpassed performance, security, integration and customization capabilities with the benefits of an on-demand delivery model, including hands-free upgrades and world-class data centers. Demandware reached the following service delivery milestones in 2007 and early 2008:

  • More than 10,000 customer days operating live ecommerce sites: the equivalent of 26 years of proven operational experience.
  • 99.97% average uptime: site availability and uptime performance exceeding the average of the Gomez Top 50 Internet Retailer Site Performance Index.
  • PCI 1.1 DSS compliance certification: the first on-demand ecommerce platform to achieve the highest level of PCI compliance.
  • Two-way SSL: for secure inter-application communication.

Committed to Client Success
In September 2007, Demandware held its first annual Client Advisory Board (CAB), a forum for senior client executives to help shape the direction of Demandware's business strategy and product roadmap. The CAB is part of a comprehensive Client Success Program, a collaborative effort between Demandware and its customers for enhancing their ecommerce initiatives, delivering leading-edge technical capabilities, and maximizing their online revenue growth.

About Demandware, Inc.
Demandware drives the success of high-growth brands with the only enterprise-class On-Demand eCommerce Platform that empowers merchandising and marketing talent with total control over the shopping experience and continuous competitive differentiation. Leading brands such as Bare Escentuals, House of Fraser, Playmobil, Sally Beauty Supply and Timberland leverage Demandware's enterprise class eCommerce functionality and automatic upgrades to help achieve higher conversion rates, increase average order size, and improve customer retention. Demandware is the only on-demand eCommerce solution that enables the rapid rollout of new sites, provides ubiquitous access to business and technical users, and is backed by a patented grid computing architecture that delivers capacity as needed for performance and reliability that exceeds industry standards. For more information about Demandware, visit, call 888-553-9216


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Debbie Hauss
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