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ServiceNow (NYSE: NOW) | Company Profile, History, Competitors

 

ServiceNow (NYSE: NOW) is a provider of cloud-based enterprise service automation tools. As of 2017, ServiceNow has over 4,000 enterprise customers globally. The company was founded in 2003 and headquartered in Santa Clara, CA.

The company was founded as Gildesoft in 2003 by Fred Luddy, the former CTO of Peregrine Systems. ServiceNow provides cloud software for companies to manage their IT services. These include services to improve automation, workflows and management physical/cloud infrastructure.

Business Overview

ServiceNow is one of the leading players in the IT service management (ITSM) market. The company provides cloud-based solutions that automates previously manual internal corporate processes in various departments such as IT, HR, Marketing, Legal and Finance.

The company operates in four segments
  • Services Management Tools to help with traditional IT service management requirements
  • IT Operations Management Tools to help link physical and cloud infrastructure
  • Business Management Tools to help enterprises manage costs, plan projects, comply with regulations and assess performance. The tools are an extension of the functions in Service Management.
  • CreateNow Tools to help users develop customized applications

Services Management Segment

Services Management provides several key functions:
  • IT Service Management Enables IT department to consolidate the distribution and management of it workflows through a single system
  • HR Service Management Provides a self-service portal to improve HR functions such as time-off requests and onboarding and handling complains.
  • Facilities Service Management Platform to manage the operation of facilities to improve occupancy
  • Field Service Management Helps assign workflows to the appropriate department through services such as geo-tracking, auto-dispatch and task mapping.

IT Operations Management Segment

IT Operations Management provides several key functions:
  • ServiceWatch Mapping Entry-level tool to help with IT visibility and service mapping
  • ServiceWatch Insight Operations management tool to help with infrastructure discovery, service mapping and event management in IT.
  • ServiceWatch Suite Solution to help with discovery, service mapping, event management and cloud management

Business Management Segment

Business Operations Management provides several key functions:
  • Financial Service Management Helps the finance department with financial reporting, procurement and payroll issues.
  • Project Portfolio Suite Helps align project resources and improve project execution
  • Governance, Risk and Compliance Automates measurement and management of compliance with ITIL frameworks.
  • Vendor Performance Management Helps organizations manage, evaluate and compare different service vendors
  • Performance Analytics Helps pinpoint areas of improvement with the IT organization

CreateNow Segment

CreateNow provides developer tools for enterprise app development on its ServiceNow platform. There is also a ServiceNow store for customers to sell custom-built enterprise applications.

Pricing

ServiceNow's products price on a per user basis. The average price is $100/per user/per month[1]. ServiceNow tends to bill customers annually in advance for subscription services and monthly in arrears for professional services work. IT Operations Management products are priced on a per node basis.

Sales & Marketing

As of 2017, the company had 2,400 salespeople targeting small business through large enterprises.

Customers

As of 2017, the company has over 4,000 enterprise customers globally. This includes 40% of the Global 2000 companies.

Competitors

Its main competitors are BMC, Computer Associates, HP and IBM.

History

The company was founded as Gildesoft in 2003 by Fred Luddy, the former CTO of Peregrine Systems, an enterprise software company. In 2006, the company was renamed Service-now.com and incorporated as ServiceNow in 2011. In 2012, the company went public.

Management

John j. Donahoe II (CEO): John Donahoe serves CEO since 2017. Prior, he was CEO of eBay and interim President at PayPal. He had also worked as President of Bain & Company, the consulting firm and Salomon Brothers.

Michael P. Scarpelli (CFO): Michael Scarpelli serves as CFO since 2011. Prior, he was VP Finance at EMC Corporation. He also served as CFO of DataDomain, CFO of Lexar Media, CFO of HPL Technologies and an Audit Partner at PricewaterhouseCoopers.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $425 
$683 
$1,006 
$1,391 
$1,933 
 Gross Profit $269 
$434 
 $676 
 $992 
 $1,433 
 Operating Profit($66)($152)($166)($423)($101)
 Net Income($74)($179)($198)($452)($149)
 EPS($0.54)
($1.23)($1.27)($2.75)($0.87)

References

ServiceNow, Inc.
 
  Type     Public
  Ticker     NYSE: NOW
  Industry Technology
  Founded 2003
  Headquarters Santa Clara, CA
  Customers 4,000 (2017)
  Revenues
$1.9bn (2017)
  Employees 7,150 (2017)
  Website servicenow.com