ServiceNow Strengths, Domain Expertise, and Key Differentiators
ServiceNow is the fastest-growing enterprise software company with more than $1 billion in annual revenues. ServiceNow delivers digital workflows that create great experiences and unlock productivity. It has seen significant growth in its IT Service Management business and has made strong inroads with its HR Service Delivery, Customer Service Management, and Security Operations products. In May 2018 it was named Forbes' #1 world's most innovative company for 2018.
ServiceNow Recent Developments
In October 2019, ServiceNow has appointed Bill McDermott as president and CEO, and a member of the Board of Directors. In October 2018, ServiceNow sets plans for big expansion of its headquarters in Santa Clara. The cloud-based provider of software and services for information technology, human resources, customer relations, and security operations has leased from The Sobrato Organization a yet-to-be-constructed office building that would be big enough to accommodate well over 1,000 employees.
ServiceNow Mergers and Acquisitions (M&A) Activities
In November 2019, ServiceNow acquired Fairchild Resiliency Systems to help companies better manage risk at scale In May 2019 ServiceNow acquired the in‑app mobile analytics platform and R&D talent of Appsee, an Israel‑based application analytics platform company. With the acquisition of Appsee’s intellectual property and key Appsee talent, ServiceNow will further its mobile application and web browser strategy by adding deep user analytics to the Now Platform. This deal is expected to further enable the company to deliver out‑of‑the‑box, consumer‑grade mobile experiences at scale to enterprises. Appsee will provide ServiceNow, and ServiceNow customers, with insights into user behavior when interacting with the Now Platform. With this added level of analytics, ServiceNow plans to provide more intuitive user experiences and further improve digital workflows to reduce routine work and free workers up to do more strategic work. Recent ServiceNow acquisitions include FriendlyData (October 2018), Parlo (May 2018), VendorHawk (April 2018), SkyGiraffe (October 2017), Qlue (May 2017), DXContinuum (January 2017).
ServiceNow Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD ask the simple question: Who’s buying ServiceNow applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of ServiceNow and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified ServiceNow, customers.
Ownership: - NOW : NYSE
Number of Employees: 8154
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil and Gas, Professional Services, Retail, Transportation, Utility,
ServiceNow Key Enterprise and Cloud Applications
ServiceNow Revenues, $M:
|Type/Year||2017||2018||YoY Growth, %|
|Total Revenues, $M||Subscribe||Subscribe||Subscribe|
|Enterprise Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
|Cloud Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
ServiceNow Revenue Breakdown By Type, $M:
|Type||License||Services||Hardware||Support & Maintenance||SaaS|
|% of Total Revenues||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe|
ServiceNow Enterprise Applications Revenues By Functional Markets, $M:
ServiceNow Enterprise Applications Revenues By Verticals, $M:
ServiceNow Revenues By Region, $M
|Region||% of Total Revenues||2018 Total Revenues, $M||2018 Enterprise Applications Revenues, $M||2018 Cloud Applications Revenues, $M|
ServiceNow Direct vs Indirect sales
|Region||Direct Sales||Indirect Sales||Total|
ServiceNow Customers - Breakdown by Geo, Size, Vertical and Product
No. of ServiceNow Customers: 5400
No. of ServiceNow Enterprise Applications Customers: 5400
No. of ServiceNow Cloud Customers: 5400
No. of ServiceNow Cloud Subscribers: 18 million
ServiceNow has approximately 5400 customers, including 75% of the Fortune 500. Recent customer wins included AstraZeneca, Bombardier, BP, Société Générale, Thomson Reuters, Visa, AbbVie, Daiwa Securities, Diageo, Elskabunk, Enbridge, General Motors, Honda of America, Forest City Enterprises, Red Hat, and others. The installed base also covers Acciona, Addleshaw Goddard, AGL, Bosch Siemens, Bournemouth University, Brit Insurance, Broward Health, Carlson, Centrica, CERN, Discount Tire, Echo Entertainment, Emory University, Energias de Portugal, Enterprise Rent-A-Car, Equinix, FermiLabs, FirstCare, Guardian Life, Harrods, informa Plc., Jefferson County, JMC Steel Group, , Juniper Networks, Kimberly-Clark Corportion, L.L. Bean, Land O'Lakes, Lawrence Berkeley National Laboratory, Lemminkäinen Oyj, Liberty University, Loyola Marymount University, Morrison&Foerster LLP, NetHope, NHS - London Programme for IT, Norwegian Geotechnical Institute, Norwegian Olympic and Paralympics Committee and Confederation of Sports (NIF), OhioHealth, Omnicare, Orrick, Herrington&Sutcliffe, Pacific Life, Perrigo, PostMedia Network, Progress Energy, Publicis Groupe, REI, Santander Consumer Media, Sephora, Severn Trent Water Ltd., SkyIQ, Sony Pictures Entertainment, Staples, Synaptics, , The University of Chicago, University of Minnesota, University of San Francisco, Wellcome Trust, World Wide Technology, Inc., Yale University and others.
ServiceNow Market Opportunities, M&A and Geo Expansions
In July 2019 Microsoft and ServiceNow formed a broader strategic partnership intended to significantly enhance the integration and optimization of the companies’ products, platform, and cloud capabilities. Through this expanded partnership, the companies will enable enterprise customers in certain highly regulated industries, as well as government customers, to accelerate their digital transformation and drive new levels of insights and innovation. And, for the first time, ServiceNow will house its full SaaS experience on Azure in addition to its own private cloud. The expanded partnership will elevate ServiceNow to one of Microsoft’s strategic partners in its Global ISV Strategic Alliance Portfolio. As leading enterprise technology platforms, Microsoft and ServiceNow make it easier for customers to integrate and optimize across the two companies’ products and platforms. By collaborating on next‑generation experiences, Microsoft and ServiceNow will leverage technology to bring further cognitive services and intelligence to products across the Now Platform® with Microsoft 365 and Azure. ServiceNow established a focus on the following priorities in 2018: Keep building great products, continue outstanding go-to-market execution, build customer success, grow talent, and establish the company brand. ServiceNow also announced several strategic partnerships in 2018 as well as investments in several markets, including Germany and Japan. Riding one of the hottest growth markets the tech business has ever seen, SaaS high-flyer ServiceNow says CEOs' insatiable demand for digital transformation is not only driving upward revenue guidance for 2018 but also causing the company to begin planning what it must do to reach $10 billion in annual revenue.
ServiceNow Risks and Challenges
With a stated goal of reaching $4 billion in annualized revenues by 2020, ServiceNow aims to sign at least 1,000 key accounts spending at least $2 million a year with the vendor, up from the current base of 790 major customers with each accounting for $1.15 million in annual contract value. One way to achieve that is through cross-selling and upselling of its growing portfolio of products. Already some of its recent wins cover customers picking up three or more apps. The question is not whether ServiceNow can sign 210 additional key accounts, but rather its wallet share among its customers. Growth is likely to moderate because of the laws of the big numbers. The biggest challenge lies in the growing convergence of IT and operational technology, especially for automation of the activities like Internet of Things at the edge of the Cloud. Its acquisitions of Qlue and others appeared to be headed in that direction. There’s a limit to how much a company can consume when it comes to Cloud apps – similar to the decelerating trend of mobile apps consumption. The real test is whether ServiceNow is up for delivery service automation at the edge and that may entail creating new apps that involve different functions such as supply chain, manufacturing execution, asset management, field service as well as devices and sensors currently not being touched by the vendor.
ServiceNow Ecosystem, Partners, Resellers and SI
In July 2019 Microsoft and ServiceNow formed a broader strategic partnership intended to significantly enhance the integration and optimization of the companies’ products, platform, and cloud capabilities. Through this expanded partnership, the companies will enable enterprise customers in certain highly regulated industries, as well as government customers, to accelerate their digital transformation and drive new levels of insights and innovation. And, for the first time, ServiceNow will house its full SaaS experience on Azure in addition to its own private cloud. The expanded partnership will elevate ServiceNow to one of Microsoft’s strategic partners in its Global ISV Strategic Alliance Portfolio. As leading enterprise technology platforms, Microsoft and ServiceNow make it easier for customers to integrate and optimize across the two companies’ products and platforms. By collaborating on next‑generation experiences, Microsoft and ServiceNow will leverage technology to bring further cognitive services and intelligence to products across the Now Platform with Microsoft 365 and Azure.
ServiceNow Cloud Infrastructure Insights
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- ServiceNow Public Cloud and Infrastructure (IaaS)
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- ServiceNow Private Cloud and Data Centers
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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