ServiceNow welcomes former SAP CEO Bill McDermott as the new CEO. It is expected that his sales in fiscal year 2019 will exceed 3.2 billion US dollars. It is interesting to see how he will lead ServiceNow, which continues to grow rapidly in the SaaS market.
In recent years, Service Now has been changing executives. John Donahoe became CEO in April 2017. He announced on October 22 that he would retire as CEO of ServiceNow and become CEO of Nike. McDermott will succeed him. The former CEO of ServiceNow and the CEO of Snowflake, Frank Slootman, is recruiting ServiceNow executives and sales staff. For example, Mike Scarpelli, the chief financial officer of ServiceNow, left the company in August and became the chief financial officer of Snowflake. Just a few days ago, McDermott announced his departure from SAP.
Fortunately, for ServiceNow, it has established a solid position in the enterprise market and has a solid customer base. Initially, the company was mainly involved in IT service cloud platforms, but later expanded into human resources, finance, and customer service. The company’s current goal is to simplify and automate workflows that span different job functions.
The company’s sales for the third quarter of fiscal year 2019 were US$885.8 million, a year-on-year increase of 32%. The company predicts that subscription sales in 2019 will be between 3.24 billion U.S. dollars and 3.245 billion U.S. dollars.
In Gartner’s Magic Quadrant for IT Service Management, ServiceNow is classified as a “leader” with vision and execution capabilities. It is also listed as a “concept first” in the Magic Quadrant for Customer Engagement in Customer Relationship Management (CRM).
Provided by: Gartner (August 2019)
Under Donahoe’s control, ServiceNow’s stock performed strongly. However, with the appointment of McDermott, the company’s atmosphere may change. Therefore, points that may change are described below.
The product roadmap becomes more solid:McDermott may focus on customer needs and commercialize them. Patrick Walravens, analyst at JMP Securities, said:
ServiceNow’s core product line is “rock solid,” but some industry insiders are eager to “consume” the platform, which has caused customer confusion, uneasy some core partners, and the pace of growth. Someone pointed out that this is disturbing.
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