ServiceNow Strengths, Domain Expertise, and Key Differentiators
ServiceNow expects to have an estimated $5.5 Billion in revenues worldwide for CY2021, and an international presence that can generate new business across geographies. ServiceNow has seen significant growth in its IT Workflow products (including IT Service Management) and has made strong inroads with its Employee Workflow products (HR Service Delivery, Workplace Service Delivery, Legal Service Delivery), Customer Workflow products (Customer Service Management, Field Service Management), and Creator Workflow products.
ServiceNow has a rapid pace of innovation, adding many new products and enhancements to its IT Workflows, Customer Workfows, Employee Workflows, and Creator Workflows in its Now Platform Quebec and Rome releases in March and September 2021. It also announced significant new partnerships and integrations with Microsoft, Qualtrics, Celonis along with expanded alliances with KPMG and EY in 2021. It acquired the following companies in 2021 to accelerate innovation and enhance talent: Gekkobrain (Oct 2021), Mapwize (Aug 2021), Swarm64 (Aug 2021), Lightstep (May 2021), Intellibot (Mar 2021), ElementAI (Jan 2021).
ServiceNow Recent Developments
ServiceNow reported that its quarterly revenue had grown 31% year over year (YoY) in the third quarter of 2021 – and that it expects 30% growth for its FY 2021 annual results, as well. In 2020, ServiceNow had $4.5 Billion in annual revenue.
In June 2020, ServiceNow launched new products for for telecommunications and financial services. In the telecommunications industry, the Now Platform and 5G will intersect to fundamentally reinvent legacy experiences. ServiceNow Financial Services Operations is a product with workflows that will transform operations for financial services institutions. Earlier, In May 2020, ServiceNow launched ServiceNow Safe Workplace, a four‑app suite and dashboard designed to help companies manage the essential steps for returning employees to the workplace and support everyone’s health and safety.
ServiceNow Mergers and acquisitions (M&A) Activities
In November 2021, ServiceNow acquired DotWalk, a company that automates testing and application upgrades for the Now Platform. DotWalk uses AI regression testing for business processes and creating automated tests. With DotWalk's tools, customers can validate application changes without developers writing tests. ServiceNow said DotWalk runs natively on ServiceNow's automated test framework already. DotWalk's specialty is speeding up ServiceNow upgrades.
In October 2021, ServiceNow acquired Denmark-based Gekkobrain to help customers modernize their systems of record. With Gekkobrain, ServiceNow will extend the power of ServiceNow Creator Workflows, including App Engine, to help organizations identify and understand custom code in their ERP deployments and the business processes they support.
In 2021, ServiceNow acquired: MapWize mapping software; Swarm64 to scale digital workflows; LightStep, software that combines ITSM with application performance monitoring; and Intellibot, an RPA firm that will compete with automation firms UiPath and Automation Anywhere.
In November 2020, ServiceNow acquired Element AI, a artificial intelligence (AI) company with deep AI capabilities and some of the world’s brightest AI minds. Element AI will significantly enhance ServiceNow’s commitment to build the world’s most intelligent workflow platform, enabling employees to work smarter and faster, streamline business decisions, and unlock new levels of productivity.
In June 2020, ServiceNow acquired Sweagle, a configuration management startup based in Belgium. With this acquisition ServiceNow gets the startup’s configuration management products, which it can incorporate into its own catalog, but it also gains the machine learning and DevOps knowledge of the company’s employees.
Earlier in 2020, ServiceNow acquired and Israeli start-up that specializes in AIOps, Loom Systems. The company plans to leverage Loom Systems log analytics capabilities to help customers analyze data, automate remediation and reduce L1 incidents. Addittionaly, it acquired Passage AI, a startup that helps customers build chatbots in multiple languages, something that should come in handy as ServiceNow continues to modernize its digital service platform.
In November 2019, ServiceNow acquired Fairchild Resiliency Systems to help companies better manage risk at scale. The same year, ServiceNow acquired a 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.
ServiceNow Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks 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 Now Platform, ServiceNow IT Service Management, ServiceNow IT Business Management, ServiceNow DevOps, ServiceNow IT Asset Management, ServiceNow Security Operations, ServiceNow Governance, Risk and Compliance, ServiceNow HR Service Delivery, ServiceNow Safe Workplace Suite of applications, ServiceNow Workplace Service Delivery, ServiceNow Legal Service Delivery, ServiceNow Customer Service Management, ServiceNow Field Service Management, ServiceNow Connected Operations, ServiceNow App Engine, ServiceNow IntegrationHub customers.
Ownership: - NYSE : NOW
Number of Employees: 16000
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communications, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil, Gas and Chemicals, Professional Services, Retail, Transportation, Utilites,
ServiceNow Key Cloud and HCM Applications
ServiceNow Now Platform, ServiceNow IT Service Management, ServiceNow IT Business Management, ServiceNow DevOps, ServiceNow IT Asset Management, ServiceNow Security Operations, ServiceNow Governance, Risk and Compliance, ServiceNow HR Service Delivery, ServiceNow Safe Workplace Suite of applications, ServiceNow Workplace Service Delivery, ServiceNow Legal Service Delivery, ServiceNow Customer Service Management, ServiceNow Field Service Management, ServiceNow Connected Operations, ServiceNow App Engine, ServiceNow IntegrationHub
ServiceNow HCM and Cloud HCM Applications Revenues, $M:
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* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** 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:
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ServiceNow HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2020 HCM Revenues, By Sub-Functional Markets, $M
ServiceNow HCM Applications Revenues By Verticals, $M:
ServiceNow Total and HCM Applications Revenues by Region:
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ServiceNow Direct vs Indirect sales
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ServiceNow Customers - Breakdown by Geo, Size, Vertical and Product
No. of ServiceNow Customers: 6900
No. of ServiceNow HCM Applications Customers: x
No. of ServiceNow Cloud HCM Customers: 6900
No. of ServiceNow Cloud HCM Subscribers: 22 million
ServiceNow has approximately 6,900 customers, and nearly 1,000 of them are spending more than $1 million in annual contract.
Recent customer wins include Zoom Video Communications, 7-Eleven, Swiss Re, University of California, Berkeley, DNB ASA, Chevron, AstraZeneca, Bombardier, BP, Thomson Reuters, Visa, AbbVie, Daiwa Securities, Diageo, Elskabunk, Enbridge, General Motors, Honda of America, Forest City Enterprises, Red Hat, City of Copenhagen, Deloitte, Ricoh, 7-11 retail stores.
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, LemminkÃ¤inen 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 2020, ServiceNow made integrations with a number of enterprise application providers during the Covid-19 pandeminc. Vonage expanded its Vonage Contact Center capabilities to include seamless integration with ServiceNow. Adobe partnered with ServiceNow as integration partner, connecting data from Adobe Experience Platform and ServiceNow’s Customer Service Management workflow product to enable more seamless, connected customer experiences.
Addittionaly, ServiceNow launched new integration with Cisco DNA Spaces to enhance contact tracing with its Wi‑Fi‑enabled Proximity Reporting app. The integration with Cisco DNA Spaces will allow joint customers of ServiceNow and Cisco to seamlessly import location‑based data into the ServiceNow Contact Tracing app and identify potential interactions with an affected employee.
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.
ServiceNow Risks and Challenges
Rapid expansion of an existing company – whether organic or inorganic – can impact a company’s current infrastructure. It is important to achieve balanced growth that can be maintained by current infrastructure and personnel. It appears that ServiceNow is a well-managed business. But integration of the recently acquired business units will be key to ServiceNow’s continued growth rate of 30% YoY. Another challenge lies in the growing convergence of IT and operational technology, especially for automation of the activities like the 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
ServiceNow partnered with Deloitte to help customers accelerate their HR Service Delivery (HRSD) efforts and provide employees with exceptional digital experiences, anywhere. Together, ServiceNow and Deloitte will conduct joint go‑to‑market activities to support ServiceNow’s HRSD solution through global sales, enablement, and training activities.
ServiceNow Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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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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