ServiceNow poised for growth but execution is key
The Interview first considered how ServiceNow’s offering has evolved from purely IT service management (ITSM) to also include governance, risk and compliance (GRC), among other services.
The pivot “speaks to… the main advantage that ServiceNow has had [which] is the power of the platform and their ability to extend it”. Rather than competing head-on with the likes of Workday and Salesforce, the company has targeted customers based on its own areas of expertise, which the expert described as primarily “driving the workflow and connecting those business functions into IT”.
The specialist was also asked to give their thoughts on ServiceNow’s annual contract values across its main pillars of ITSM, IT operations management (ITOM), GRC, and the employee, customer and creator segments. ITSM and creator were placed at the highest and lowest ends of the scale respectively.
“I would say that everything that’s encapsulated in IT is probably about 70%, so traditional ITSM, the ITOM, security and risk, and then the other 30% would be the customer workflows, the employee workflows and creator, with customer being the biggest and creator being sub-5%,” the specialist said.
However, in terms of opportunities outside of IT workflows, “the biggest TAM is customer”, the Interview revealed, followed by employee workflows. In addition, “GRC is a really strong market and opportunity.” The expert also explained why they believe verticalisation is a “great opportunity” for ServiceNow to continue segmenting markets.
The Interview also covered ServiceNow’s international and other business opportunities, the strength of its management team, and the company’s 1-3 year outlook.
To access all the human insights in Third Bridge Forum’s ServiceNow – IT everything solutions, new growth drivers & acquisition strategy Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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