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Data Talks: Defining ServiceNow Platform Investment in Large and Medium Companies

ServiceNow Data Blog

Welcome back to our Data Talks series, where we spend a few minutes geeking out about interesting trends in the ServiceNow marketplace with our VP of Strategic Marketing, Meghan Lockwood, and our VP of Strategic Initiatives, myself – Juliet Acuff.

For this month’s Data Talks we’re building directly off of last month’s discussion, so if you didn’t have time to read the whole article, here is a quick summary;

  • 54% of companies are currently deploying two or more elements of the ServiceNow platform (and 27% have three or more), showcasing ServiceNow’s evolution from a ticketing tool to an enterprise platform.
  • Even in a very mature ITSM marketplace, Service is growing 33% year-over-year because of their strong offerings in CSM, HR, and others. ITSM alone purchases are no longer the norm.
  • One reason for ServiceNow’s growth is the “snowball” effect within companies where, after a single-use implementation, the platform quickly expands across the business in SecOps, ITBM, HR, CSM etc.

Today, we are diving into this platform expansion a bit deeper, by addressing where different size companies are investing.

ServiceNow’s Hold in Enterprise and Commercial Companies

Meghan Lockwood: This happens to be one of my favorite charts and one of the most interesting in all the data that we collected.

ServiceNow Data

Here we’re looking at what ServiceNow functions companies are using, cut by the actual size of the company. In this particular case, looking at the enterprise level versus the commercial level, which are both big sections of ServiceNow’s client base.

Juliet Acuff: Yes, I agree about this chart. It’s so important for companies that are scoping out ServiceNow to understand how their peers are using and making the most of the platform. It’s also interesting to note that this data from our report at the beginning of 2019, reflects what ServiceNow reported in their Q2 2019 earnings call six months later. With that in mind, we can look at this as potentially a long-term trend in platform usage.

We’re still seeing significant adoption in the IT space, and that’s what’s leading these pieces, but there’s growing adoption in the other spaces, in both medium and large companies.

While we may be seeing larger companies leading the way in terms of HR use, our research and own implementation experience tells us that the ServiceNow HRSD [Human Resource Service Delivery] capabilities are far and above their competitors from a holistic view.

I am willing to bet that those smaller and medium-sized companies, who may not be ready to pull the trigger financially yet, are actively working towards it and campaigning for it inside their companies.

The use cases for HRSD are universal, whether you are handling global employees or a single office space. If you need a new insurance card, you need to have a consistent approach in the process, balancing the backend of what the privacy needs to be. If you’re submitting services on something more private versus just getting an insurance card, sometimes that takes a different speed of adoption, but the backend workflow still needs to be consistent – and ServiceNow provides that.

Lockwood: That 30% of large enterprises that are currently using ServiceNow HRSD is interesting in that it’s reflective of that growing trend to use ServiceNow for Global Shared Services initiatives. We are seeing a lot of our clients looking to unify all employee experiences into a single-entry point with Tier 0 Self-Service. We see a lot of that with clients.

Moving away from HR – which we could talk about for days – we’re also hearing from analysts that the SecOps element of ServiceNow is starting to be purchased as a larger platform play, which it hadn’t been until these past couple of months. ServiceNow was really competing as a points system in the SecOps space, so the people that were buying it because of its capabilities vis a vis all the other point solutions in the SecOps universe. Now, because of the platform purchase, it’s being rolled into a larger enterprise play. It’s becoming easier to buy.

Acuff: SecOps is an interesting case, especially because it is such a tight marketplace. But we’re seeing, again, that snowball effect with SecOps being swept up in the adoption of the holistic platform within a company.

We’re also seeing an increased interest in the ITOM space, which is partly because some people can cross over to other products. That is to say, it’s a good entry point no matter what size company it is. In addition to expanding across the enterprise, we’re still trying to drive increased productivity, faster resolutions, and more automated services. Information gathered from ITOM contributes to help drive some of those results.

Lockwood: The one thing I don’t see in this data that we’re hearing anecdotally and in the quarterly Earnings Calls is Customer Service. Here, there’s actually a differential where medium companies had, as of last October, more CSM engagements than large companies. I think this has at least a chance to flip the next time we do the survey.

In some circles, we’re hearing that CSM are some of the biggest deals that are coming up the ServiceNow pipeline. Certainly, ServiceNow has invested significantly in that element of the platform in Madrid and more recently, New York, to the point where it’s mature to compete against other players in that universe that have giant sales teams, etc.

Speaking of New York! ITBM had major upgrades inside the release, so it’ll be interesting to see how that changes the adoption of the product six months from now.

With HR, we saw them pour a ton of investment and R&D into the product to modernize it and listen to what customers needed, and the adoption grew hand over foot. So, it’ll be interesting to see if, now that they’ve majorly evolved ITBM, whether the trajectory aligns with their investment.

Acuff: Well maybe that will be what we chat about in our Data Talks next month! We do have an upcoming webinar on New York and ServiceNow will be giving their earnings report at the end of the month, so it’ll be great to see how some of these product-specific improvements are already starting to trickle over to the business numbers.

Thanks for joining us!

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