live from Las Vegas Nevada it's the kue covering knowledge 15 brought to you by service now hello and welcome back live here in Las Vegas is the cube our flagship program we go out to the events and expect to see them from the noise I'm John Ford the founder silicon atoms on my coach Dave vellante co-founder Wikibon calm and our next guest is Dave right chief strategy officer at servicenow great to see you again congratulations the keynote this morning I do you feel I'm pretty pumped it was good fun I mean I've known I've know Fred for 20 years and I've watched him do these type of things for 20 years so to be on stage with him yeah it was it was big balada a lot of people happy in the key know first of all packed house great crowd congratulations but really a lot of who odds on the UI I and the clean interface work a lot of cooler than me a lot of really big cheers on the private instances right which really sets the table for a developer run so you know I think you guys are going to see my prediction is via rocket scientists predict this but do developer it's gonna get some significant traction certainly sold out here yeah Howie your Creator con so yeah we've got like the the 1200 people are crazy going which was a sellout but I think you're right the whole the ability now to get an instance that's obviously what's going to drive the developer community in the past it was really easy to develop something if you're a customer but coming in from the outside not so easy now the fact people can get an instance by signing up to the program so amazon has been very successful we follow those guys will do all their events cuban one things that I'm really impressed with Amazon is their ability to just unleash new stuff machine learning as a service last year was canisius redshift fastest-growing piece of their business they keep on adding on to their core building blocks with raji c 2 s 3 and a variety of the stuff they are queuing messaging alaska p so all the great stuff developers have been building that integrated stackin for agility more performance i got to ask you what's your plan because you guys are really building out that platform we talk to them in our in our office when you came by there's some core building blocks right what is the new blocks that you're announcing here and what's the vision and strategy that you get to take nasi developer enablement is one one of those court building blocks day what are the new building blocks and and are you going to take that same approach like amazon and just it's a tsunami of releases and being yeah so so what we'll do is we'll we'll take the platform that we've got now and obviously we see this community now starting to build out in the platform wheels from a features perspective what we're looking to do is get anyone to build anything that's managing anything to do with what that's the that's the main driver if you're giving someone a task that they need to do this should be the place where people go to do it now the the drive around this is is to try and get people to just not waste as much time as they are wasting in the past so we'll continue to innovate in the platform you'll see there's some new products that you can see they've already been built as modules that we haven't announced at the keynotes but they're actually down at the booths so you can go down and you can see some of the analytics stuff some of the security incident management stuff but what we've I think what we've realized as a company is we can we can never build everything you know there's there's just certain areas where people come in and go I've got the expertise just give me a platform let me build on us and that's why you see people going out there into areas that we didn't expect that's why you've got people doing medical asset management while you've got people there are pharmaceutical type apps so so really for a vertical ization perspective I'm hoping that we see a lot of independent developers or partners coming up for this because when you get people coming up this is what really excites me on the platform you get people coming up saying hey we want to we want to build on your platform I'm we don't access to your Salesforce because we're going to sell to a completely different set of people we just want to be able to build in your platform have your availability levels have your recovery levels that's where the big citing side is from you guys are doing it but i think is really the holy grail unintended given we had money python on last night in john cleese but you got the disruption and you're also innovating which is a really rare thing to see in the business by friday know you guys winning in amazon has that same thing they're disrupting the market in some say raise to 0 when put the shift values shifting somewhere else but they're also innovating so at the same time you guys are a little bit different the sense that you're in the enterprise so you have enterprise-grade mindset and building a born in the cloud like platform so I want you to comment on where you see the disruption and the innovation you can share the audience that dynamic and how you guys view that a are you aware of it is it a flywheel for your grow than what your comments on this so what I think the disconnect is now is it's the fact that software that you use outside of the enterprise is better than the software that you use inside of the enterprise now that's that's created a kind of a generation gap where people just arrived and look at enterprise software and go why are you doing it this way well in a way why haven't we got the same experience we have with other applications that link requesters with providers so you'll see what you mean why haven't i got the uber experience why haven't i got the Airbnb experience that that's the same process I want something you provided give me something that connects yes okay sure is between yeah so so why couldn't we why couldn't we reinvent the way that people interact with enterprise software and why couldn't we make it a more immersive experience and that was all that was what a lot of the stuff you saw today around the mobile side of it a lot of that's trying to drive towards getting people into this type of mode of working and way of thinking but yeah we want to get to the point where you can you can join a company as a 22 year old and you log onto the system for the first time you go this is cool as opposed to like phony your dad and say and dad I'm on some system can you tell me how it works and with the innovation I'm amazon is example they say okay pay by the drink but you're up and running you're standing up stuff quick it's a cloud term what's your equivalent corollary to that innovation so actually be on the innovation type of service now what is your core innovation when you go to flow say wait what's your innovation message to the customers is it standing up stuff quick redefining processes workflows so I think I think it's I think it's actually creating processes so it's crazy sorry I'm screwing up on accents now I almost went processes processes that news been in mind what it is is about being able to the innovation is to be able to give something structure that didn't have structure so the best example I always used as you you go around different areas of business and you talk to people and you say use the 80 example you say hey you know I see spends all its money being as good as it was last year and everyone laughs at it but the US then well how how do you perform what are your guys do every day they haven't really got an answer so it's being able to take some kind of unstructured work format and being able to say well I can give you a system everyone engages in the same way where everyone gets to manage work in the same way or when you get to understand exactly what your business is doing so it's that I think the real innovation is to be able to create a true system of engagement that sits on top of a system of record that's that's what it's all about so David struck by your keynote today you and Fred were sort of taking us back in time 2004 2006 eight the downturn 2012 the IPO and you did a great job of saying okay remember what the world was like back then there was Facebook really didn't have any users at least that weren't college students right right Google had an IPO dan just sort of took us through the the litany of innovations that have occurred and everybody talked about the consumerization of IT as the chief strategy officer do you basically look at what's happening in consumer tech and say okay we can do that as well you guys used to use the Amazon example right or do you have a different methodology how do you predict sort of where things are going I think it's I think kind of like the eraser change becomes very hard to predict I talked about the razor change at the start but the his figures that we didn't use when we started to extrapolate it around adoption you just get things moving moving so quickly now I think but the challenge is to try and not necessarily emulate what everyone else is doing but you need to be able to some move ahead of us and I think the rather than rather than directly copying something is looking to the themes that you see happening at that level so you could have gone back to 2 2004 and and said well we've already got these type of social media solutions this is the way people are going to work but then it took whatever it was three and a half years for Google to get 50 million users now most companies aren't going to wait that long for an adoption curve even though that's a really fast curve so so it's been able to predict what technology exists now in the consumer world that you think is going to end up having a major lead in place going forward so how are people going to interact you see a lot of startups coming up now where people start to do work in different ways which one of those that you think is going to be successful so one of the ones we took a gamble on is the visual dashboard concept we've seen more and more people integrate in different ways I think the way you see you see companies like slack and click doing doing different work around how they get people to integrate together a lot of people have got got good ideas and it's seeing how people want to interact with those I think a big driver of big influence was looking at what developers use how what tools are developers using to develop because that kind of influence is what they develop and that kind of influence is where they'll end up being and what about your developer story obviously is a 1200 people come in a greater con the other private private instances which is great for DevOps like mindset cloud guys who love to see in boxing probably pushing code and testing and doing all that on the fly work which is the new normal um developers are worried you know that they you know for example Twitter as a problem with the developer ecosystem by putting developers out of business the balance is you guys have a roadmap yeah and you don't want to put it up with a business but up there in the in the in the lane of your swim lane is behind as you balance that to be honest if it if we build an application it does something and someone else builds an application that does the same thing I don't really care I mean I just want customers to choose which the best one is for them it really it really doesn't make that much difference to us I mean there might be a mine of financial impact on on which license it consumes but fundamentally at the end of the day it's still building that community it's still getting people on the system because the I think the great thing about service now is what once you're in the system it's the capability of whereabouts you can go from that point on so someone I mean think there's already multiple HR products out there there's already multiple products doing a mobile asset management that I'm fine some areas we don't play in some areas we do but yeah for me I don't see it as a competition I I think it's it was plenty of beach head out there so yeah you guys have been able I mean fred was on the queue earlier and one of the things I thought was really insightful that he mentioned among this whole interview was that when he asked them about the future he actually brought up Internet of sins and he said the use cases are emerging because the capabilities weren't there right in the past yeah I use the thermostat example they correlate the nest which is kind of like a mainstream but that brings up the point there are new use cases emerging that are potentially worth a lot of money maybe his lifestyle business for developer or full on venture back business by innovating a workflow that's now new and relevant yeah and you guys are on that you agree with that I mean that's how you guys see hundred percent ok so I'm a developer I'm an entrepreneur what's what's what's your message to me like how do I do that what advice would you give me and doing that so there's plenty of I mean there's plenty of material out there and I was to actually develop on the platform the first thing and I'm I'm not a developer have encoded for years the first thing the first thing i do once i had an instance is I try and start off the process of looking for a looking for something that I do on a daily basis that frustrates me so I can pull this up easy because I do this almost every other day checking into a hotel so check into a hotel I do something online I booked the room and then I get there and you get questions like well do you want a high room in my room do you want to smoke in room no smoking to embed what why can I just select it at the front when it gets there why doesn't it know of previous histories what my preference would be why do I have to still give a credit card to be swiped when you find something that you do on a daily basis or an interaction that you do or you're you're asking someone for a service my focus would be how could I find a better way of doing that because yeah because they're the things that people are going to buy so also you know Fred also mentioned the whole email thing and you know as a lot people trying to crack the email code IBM's doing some stuff around new way to work and email his business trying to crack this code for years i hate's email but we still use it certainly our kids my kids don't use email or voicemail for that matter but the new way to do this is to actually have messaging in and mobile app so i want you to comment on this as a lead-in to the question of productivity you get put on a survey how is the ServiceNow value proposition impacting the productivity piece but fred is teasing out is this is a productivity raffle right you know you're going into the email as an example but this other way other productivity opportunities you guys are eliminating or process improvement here so that i think it's i think what it's more about is it's uh it's about the delivery of information at the right time so it's kind of the the equivalence i always used to explain it is it's it's the difference between constantly going to your mailbox to see if you've got mail or a telephone ring I mean when cell phone rings yet you've got to do something but the amount of time you can spend just checking if there is something for you to do is pointless I think I think it adds it had structure around being able to prioritize things I mean that's what people that's what people can't really do at the moment you get a request yeah okay how am I going to do the request the the innovation around driving things out of out of email is one thing but I think the the process of being able to bring other systems potentially onto a single system is something else that drives a lot of benefits but i would say at the moment people use email because emails ubiquitous and that is the main focus and I I don't think to say to people who don't live an email living service now that's never going to happen that's why we needed to get that whole mobile app out in place because you you need something where you're getting work delivered like a telephone ringing why ups saying hey it's going to be there in 20 minutes that's that's what you want is your case pattern that you see from a pro to be standpoint crush your broad customer base out there is it onboarding here the kpmg a pretty solid yeah what is the consistent pattern that rears its head over and over again we say yeah we're killing it there a productivity we're so great work so it tends to go it still tends to start off in a teak and then I T we tend to see the next move through is is hey char the next moves are after that tends to be facilities and the other sides of the company other parts of the businesses legal finance marketing they have an interest in it as well but that tends to be the flow that we see people going through and it can be it can be multiple things I mean people people first of all start to look at the the onboarding situation but then they start to look at well how do we do candidate management so how we can actually handle the recruitment side and then people come in with the kind of 10 gentle things as I'm the conversation the other day about some about someone at a university but someone at a university saying well what I need to do is I need to handle student recruitment so so when when a company comes in on campus and wants to recruit people how do we communicate to people that they're on campus and then how do we actually track people coming in and applying at that level so people come up with solutions like that we get a lot of things around hospital management where there's productivity issues where people are saying well how can we actually start to manage things more effectively from a medical perspective be at Medical assets be a hospital beds any area like thats it is the problem I have and this is why the platform so good in the partner markets so good if you could sit and write down use cases all day I mean you feel the scrolling anything as a service that that's what it feels like sometimes I want to ask you about the innovation curve so you know it's interesting at the micro level we're talking about all the waste that goes on in organizations but at the macro level productivity numbers actually look pretty good productivities going up employments not following productivity which is you know a concern yeah and you guys potentially are going to add to that problem right in theory the so it seems to me that the opportunity is to replace that that that gap between things that we're doing they're wasting our time and apply that to new innovation prize will bethe bend the innovation curve that if you will so I'm wondering do you have examples of that starting to occur in your customer base or do you as a visionary do you have a vision as to how that might occur so I I think this kind of two elements to this you you look at the survey that we probably still Monday and we're saying that that other the thousand managers we surveyed in America in the US the spend around 15 hours out of a 40-hour week doing this type of administration SAS now I think there's there's two ways to look at that one is the benefit to the business of being able to drive productivity the others the fact that those 15 hours that you're wasting on admin you're probably doing it in your own time you've probably got some kind of knock on and work life balance around this but I I look at examples that I've had from a perspective of how I've worked with things before and this is uh this is another good use case example so before strategy when I was running all the engineer the pre-sales engineering team here if someone wanted a resource they come to me hey Dave we need a resource in this company at this side and it email me and i would spend ages basically re roots in emails to the manager to say hey if you got anyone in England have you got anyone the Netherlands so it took like two days and we wrote a full system where someone could just come in and request the resource it got recent to the right manager in the right region my emails probably went down around eight hundred a week where I wasn't getting requests coming into production of 800 800 emails a week because people just weren't asking me for real there's a dude up in the right place you can work work your Anakin reassign it if I if I go away for a week I can just say so my next manager down hey can you look after it this week but I'm damned if I'm gonna give my inbox Yeah right yeah i'll go through Drogo's rewrite it works faster that's the line in your inbox it's gone dropped off the end okay so example of one how did you use that time that you freed up think I might be how I ended up where I am NOT okay so but but this is a good example yeah because you look again a lot the the big thinkers worried that you know Instagram and Facebook have way more photos than right eastman kodak ever had and they employed far fewer people yet they're worth a lot more you know so so it's people like you that have the freed up time and the vision to create these new you know ideas and you get me get more time to focus on things and look at how things it done so are you seeing that within the customer base yet because a lot of what you're doing is sort of cleaning up messes alright are you seeing it's been a there's enough time now I would think you're starting to see glimpses of oh yeah sort of shifting it's not so easy to say okay I got to take somebody who's a whatever mid-level manager doing X and albums that put them on innovation so you see you see the shift now if people people started to move outside of IT into general service the interesting drive is a lot of people who are nit who would drive an IT service the company on the side okay we want to move this further we see the vision for where we could go with service management a lot of times what they do is they move that person outside of IT and they'll say okay we're going to crease global business services or global shared services and actually put you make it happen run enough division when they do happen and everyone says everyone to a letter says it's easy it's a it's easier to let the vision flow down sometimes it is to try and push it up from 80 because a lot of people I'll say let's say I t go to legal legal sitting there saying your IT what are you buddy bugging me for but if someone comes through from the toppling goes we want to redefine like how service is consumed by your group people are okay yeah that sounds interesting show me he'll show me what you've got so in our last minute here I want to get the chessboard out Dave and I always like to do the chessboard of the market you're doing strategy see you're going to run the chessboard you know okay that with the team so what's on the chest boy what moves are you making what's your key strategy right now how would you describe it to how you guys how do you describe to analysts customers and what are the key things that you're focused on in terms of the big moves you're right so so kind of think of it in three directions so think of it the first direction we're focused on is the extension of service management how does it get service management out across the enterprise the second area will focused on what can we do to complete the 80 stay so if you think of the ATT stack is a LM a Tom 80s m.a.c financial management what can we actually build out in that stack beer through building or beer through acquiring this year we spent a lot of time on item because I some hasn't changed in 25 years so probably worth changing it the third elements is is innovation so what do we focus on around how people interact with the system how they engage with the system what their experiences with the system and I think the interesting thing now is looking at how many of those elements in the in the IT staff actually expand out across the rest of the business unit so initially we came up with a concept of IT financial management's to be honest your major will scrap that it may as well it may all be dealing with service financial management because once you've got that data you can then track it across any business unit that you're doing so though kind of the three vectors we okay so let's talk about the API economy as the workdays a big system you guys have customers have work day but you guys have an HR appt is that to build connectors I mean is connectors a way for customers to deal with the data portability is the end of the day the systems of engagements interesting right so there are many systems of Records out there yeah I mean there's different approaches people take some people say well my first move is going to be sir modernized the front end bill the single friends and where everyone goes through to all these other systems and where it were a workday customer interface to work day but the a lot of the drive cases just to to be able to to just manage the work that comes into the system so we we focus on let's say the HR example we focus on knowledge case and request that that's kind of it you know you come in and you're processing one of those type of orders and then it might be that in order to complete that case that comes in the HR fulfiller is actually living the life and work day to do it and they're doing the work and work done and it gets updated and pass back so as ours is more defining how you actually engaged to generate that works estas and the customers just not a lot of heavy lifting on the customers and they don't have to rip and replace work day in this case they can come in and get a point solution with all the goodness of service now behind it and I mean as they go if they quantity family in service now we front-end rsap system with its surf you raise of a helmet request you do it now it is he confronted a lot of systems yet you know instead of having a lot of front ends but you do not many people have to use all the front ends then and no for productivity perspective you get someone in siege from one UI that's it they're done across the board so the platform goodness there is it's flexible you guys have an enablement model that developers now onboarding you got customers getting the ability to rapidly deploy stuff fast nit which is a good problem space to work right and then as you go to adjacent he not really have to do a lot of medieval activities in the platform just to grow right I mean you wouldn't believe the speed we turned around the whole security incident system that was that was amazing well this is awesome congratulations certainly we're certainly impressed with the software and we saw our up there in your keynote great you i love the real-time synchronous stuff you know and getting stuff pushed to you as a will be the future that's certainly greater coding angular you get bootstrap all the stuff going on real cutting-edge stuff that we've been playing with so we we were super impressed and congratulations on your success they've right chief strategy officer in charge of the chess board with it with the management team up at servicenow making it all happen this the cube sharing all the data with you we right back after this short thank you you