ServiceNow-Evolve from ITSM to platform provider

Further expansion in Germany ServiceNow-Evolve from ITSM to platform provider

The former cloud ITSM expert ServiceNow has now become a platform provider, fiercely competing with large enterprise business service providers from the cloud. Now the Munich branch is relocating to a fashionable place.

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In Stachus, Munich city centre can be reached in less than five minutes on foot. The neighbourhood features a variety of bars and shops and is only minutes away from the train station. Mindspace, a co-working space provider, knows what makes an office particularly fashionable.

This applies not only to the location, but also to the internal environment: on the old wooden table in the meeting room, books (whether read or not) piled up on the windowsill, caring about the common areas for relaxation or casual conversation, comfortable sofas, coffee Pavilion bar. All of this is combined with the latest technology and security: no chip card, no one can enter the studio, and the reception desk at the entrance watches people coming and going.

The Munich ServiceNow team, now moving to Mindspace, had previously lived with Regus in a modern office building above the old exhibition grounds above Theresienwiese (the site of the Oktoberfest) with only three underground stations. For the labor required by ServiceNow, this is obviously too much. Newly appointed German regional vice president Detlef Krause: “Our employees want urbanization and an environment conducive to innovation.” That’s why you are here-you can easily make interesting connections.

Rapid growth

About half of Mindspace’s customers are large companies. When you must implement new cloud-based solutions for cumbersome business processes, you will increasingly use ServiceNow. The service provider provides cloud services for more than 5,000 giants among them for IT service management, personnel management, security and customer service.

But big companies are not everything. Klaus: “In Germany, in addition to large companies, medium-sized companies are also very important.” This is why Klaus set up a sales department specifically for this customer. It serves customers with up to 20,000 employees.

Klaus: “These customers, usually hidden advocates, are under tremendous pressure for change.” World market leaders who are little-known outside the industry must ensure that their business models are not suddenly caught by competitors in other industries Disrupted, and take particularly flexible action.

SMB customers only under special circumstances

There are no products or sales activities for SMEs. However, the restraint of SMB is not without exception. For example, if a startup company works closely with ServiceNow customers, you can imagine that you can find a suitable model here.

Detlef Krause, who has served as the Vice President of ServiceNow Germany since November 2018, explained the global and local goals and strategies and the roadmap for 2019.

Otherwise, Krause, who has been in the office since November, has transformed his experience from Salesforce, SAP, and Microsoft to a sales reorganization. ServiceNow’s sales department now has five departments: First, life sciences, professional business services, and healthcare, which cooperate with each other due to the extensive business network. The second is finance, public services and energy as regulated markets; the third is the manufacturing and automation industries; the fourth is CPG (consumer packaging), that is, retail and related fields. Fifth, the new sales area for medium-sized customers already mentioned.

Munich’s growth is particularly strong

Klaus emphasized: “We hope to maintain growth for a period of time.” Service subscription revenue in the third quarter of 2018 was $673 million, a year-on-year increase of 27%. Its market value in January was $34.7 billion.

In addition to the United States, Germany and Japan are the most important markets. Klaus: “This is due to population and other market demands.” At present, Japan and Germany are particularly vulnerable to demographic changes. The number of qualified workers is declining and the population is aging. In order to keep up, automation is more necessary than anywhere else. In addition, the two countries have a deep-rooted focus on optimal work processes and process management.

ServiceNow currently has approximately 30 employees in Munich (which is the fastest growing location in Germany). Overall, the company has hundreds of employees in this country, and this trend is growing rapidly. Other locations in Germany are in Frankfurt am Main and Hamburg. Currently, there are approximately 7,800 people working at ServiceNow worldwide.

Regular release, new data center

Krause saw one of the reasons for the success of ServiceNow in the pure cloud direction. “We benefit from the general trend of cloud computing. As the work of employees and managers is changing, the cloud trend has now come to Germany. The quality of the solution is correct.” So far, users seem to believe that 97 of them are % Of users are extending their contracts.

ServiceNow currently provides updated versions of its services approximately every six months, more or less simultaneously in all data center pairs. Thorsten Fuchs is the senior director of the German National Marketing Department: “The classic solutions we have are usually released every few years. Therefore, you can hardly keep up with technological developments.”

ServiceNow operates ten pairs of redundant data centers around the world, including the United Kingdom, the Netherlands, Germany and Switzerland. As part of the uninterrupted uninterrupted cloud infrastructure, two new hosting locations are currently being constructed in Frankfurt/Main and Dusseldorf. In addition to the software layer, ServiceNow will also take over the infrastructure layer itself to ensure the required availability.

Channels are expanding

In order to consolidate its position, ServiceNow is currently establishing new sales channels. Compared with traditional large consulting companies or smaller professional consulting companies, these companies are not like traditional software companies, they can make customers excited about their tools.

ServiceNow will also contact large telecommunications providers, who can also provide services to their customers. ServiceNow is currently working on a joint strategy with traditional knowledge players.

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