live from Las Vegas it's the cube covering service now knowledge 2018 brought to you by service now welcome back to the cubes live coverage of service now knowledge 18 we are here in Las Vegas Nevada I'm your host Rebecca Knight along with my co-host Dave allanté we are joined by John Donahoe who is the president and CEO of ServiceNow thanks so much for coming on the cube it's great to be here Rebecca so I want to talk with you a little bit about what you said on the main stage this morning you said this is your first year your anniversary of joining ServiceNow you said when you got here you could barely spell IT but when you reflect back on this year what has been sort of the biggest surprise challenges and surprises about about leading this company well I would say a couple things one I've sort of fallen in love with our customers and the challenges and opportunities they have and what I spoke about this morning this digital transformation thing even a year ago is a bit of a buzzword it's a reality for CEOs for companies and therefore for CIOs and then the second thing that is as I talked about it something very exciting is the role of the CIO the role of IT is transforming before our very eyes out of necessity because technology is here to stay technology's driving strategic change at every company can call it a digital transformation called a tech transformation and CEOs need the most technically savvy leader in the c-suite to help with that and that's often the CIO and so I think that's an enormous ly exciting opportunity for the people that are our traditional customer base and then the last thing I just I'm thrilled about is how many companies are saying that ServiceNow is a strategic platform of choice going forward far beyond just IT and so that's something to roll build upon I was struck yesterday in the Financial Analysts session you shared with us your meeting with the board yeah and you said to them look if you want to clean this thing up flip it whatever that don't hire me I'm here to build a sustainable company during company I think is what you said and the attributes of an enduring companies that are Purpose Driven they both innovate and execute they invest in talent and they have a will to win they got a fight in them a lot of good sports analogies there yeah so okay so you've set that framework where do you see this thing going in the next near term mid term and long term well we've said I think it's really important to set the aspiration of what it is you're shooting toward I've been surprised how many customers have responded well to the statement that we aspire to create a built to last company it starts with the purpose I defined our purpose and that purpose is a long term investment and our employees are already deeply resonating with the purpose and then comes the hard work the hard work of how you bring the purpose to life and our purpose and our product and the work we do with our customers all fit together you talked about automation and in many executives that we talked to kind of run away from that we don't want to talk about automation because it implies we're gonna replace humans you said hey we're at the center of automation we have to take that issue head-on what's the conversation like with the executives and customers that you talk to well the first thing is I have to think yet to look at the data which is what I've spent time doing and two things jump out one if you look at where automation is really gonna have the biggest impact it's not in any given job it's actually the third of all of our jobs that are repetitive administrative redundant right that's so we need to automate the low value-added parts of all of our jobs and then that will free our time up to be due to leverage our more creative capabilities to add more value and so if you look at it both at a micro and macro standpoint where automation is going to impact jobs it's not a given category it's more of a horizontal cut of all jobs and then secondly looking at aggregate job creation I've done a fair amount of work with James mineka the McKinsey Institute is to blow up a suit who's got to think the best objective macro study about job creation and there going to be some jobs they'll be fewer of and other jobs they'll be more of and how do we migrate the skills migration so that people have the skills for the jobs of the future one of which by the ways things like being a ServiceNow administrator you do not have to be a computer science major or an engineer to be a ServiceNow administrator you have to like technology you have to embrace technology but you can do it as a mere mortal and so we're looking at ways of how do we help retrain people to have the skills to create one of the jobs that we're creating through ServiceNow administrators John you talk to a lot of people I think five or six hundred customers know and they'll have since I met you a year ago it ServiceNow headquarters we obviously talked to a lot of people on the cube and no question every CEO the ax talked it was trying to get digital right yep they understand it but there's somewhat of a dissonance and I wonder if you sense it in and I wonder if you could talk about how ServiceNow can help wear this the c-suite gets it and they're driving for that but when you go below the line there's a lot of sometimes complacency not in our industry not in my lifetime I'll be retired by then do you hear a lot of that and how can ServiceNow help increase the urgency well I'd say I take a couple things Dave one is the c-suite gets it by not every c-suites role-modeling what's necessary without the cross-functional leadership the partnership of ITN HR and the business units then what happens by tama goes to three levels down people have functional identities and so people role model are behaving the way they see their leadership team role modeling and so if that if that c suite is embracing technology and understanding technology demands cross-functional engagement to deliver great customer experiences and employee experiences then it makes it a lot easier two three steps down the second thing I think c-suite people need to do is be able to say we take if off the table we said I talked about top-down goals most people are scared of a top-down goal the problem is if there's a not a top-down goal then people can debate if we need to make this change and how but if the CEO the c-suite says we are going to improve the employee experience and I'm setting this goal then it's when you go a level two levels down it's not if no no they said if now our job is how and so I think leadership has to do its role and I think I think the c-suite and leadership's learning how you lead and a technology enabled environment so leadership is the key and and the CEO is really leading a little suite I think the whole the whole C suite set of leaders and partnering and reaching out to one another so we I mean as you said on the main stage in many ways the technology is the easy part but what you're talking about is the hard stuff because this is the real change management and and it's human lead so what are you hearing what are you seeing and do you have any ideas for best practices I mean as you said that the the C suite needs to embrace it yes and then push that down but how do you do it what are some what are some of the things you've seen that work well here's some of the things that we're trying to do to contribute toward that because obviously we're a software platform but one is to do what I did this morning which is be more articulate about what best practice looks like what is best in class so that anyone in any organization can can go to their boss and say oh this is best practice this is best-in-class we need to emulate this and here are the returns we can get if we emulate it so one is just hold out the successes successful examples and illustrate what's required that's why I kept saying over and over this morning employee experience is not just an HR issue employee experience is not just an IT issue you need a powerful team of CIO C HR o other functional leaders and then the second thing I think is getting people on i.t to see themselves a little bit differently we have a CIO track going on upstairs with a hundred top CIOs and the whole day is around driving culture change and CIO is leader and I think good leaders they don't just allow a label to be attached to them they invest in themselves they build their skills they build change management skills communication skills and I think whether it's a CIO or IT if they're going to have the kind of transformative impact they can across the company they need to build their technical expertise along with other skill sets you heard Andrew Wilson talk about that and they need to learn to speak business and not just IT John I want to push on something that I'm discerning from you guys and get your reaction so obviously cloud you guys are born in the cloud cloud is a tailwind for you we've seen this Asif occation of business but we seem to be entering a new era moving from a cloud of remote services to one of us fabric Ubiquiti is fabric of digital services so my question is around innovation you talked about that as one of the key attributes of an enduring company what's the innovation equation going forward yeah it's not Moore's law anymore it's not cloud mobile social Big Data at least it doesn't feel that way anymore is it machine intelligence combined with cloud what do you see I think it gets down actually to what I talked about this morning user experience I think machine learning I think AI is going to be a commodity functionality we're gonna get it from AWS or Azure or Google the cloud infrastructure providers whether it's natural language processing whether it's the kind of machine learning capabilities that's that's gonna be sort of available widely then it's our job as a software platform to build that into our platform so we built machine learning capability into our platform we built chat bot functionality into our platform we built leading-edge mobile capability into our platform and again I'll call that I don't know it's the easy part but that's our job in this equation the hard job then is how you apply that to real-world use cases whether you're applying using real-world datasets specific customer data sets and real-world workflows and use cases so let me give you a small example we bought a machine learning company a year ago called DX continuum great machine learning team great machine learning technology we rebuilt it inside the ServiceNow platform okay and I don't believe a AI is a horizontal platform is I don't you know we didn't call it a name it after a a dead scientist that's out what we're gonna do and I'm not casting judgment on it but it's not a solution looking for a problem we built machine learning into our platform and then so we want to be the first user we want to use it on a specific challenge so the case we used it on our own inbound customer support we have about 800 customer support agents that serve our customers about 11 percent of their time is spent on something we call incident categorization and incident routing sounds kind of grunty terms but when summer calls with a problem we have to be able to identify what that problem is and then route it to the right person to fix the problem so 11% of our peoples time was doing that that's not a fun task so we turned on machine learning and within two weeks the machine was categorizing the issue and routing it more accurately than a human can so now what happens is our customers problems are getting solve faster and the 11% of those resources those customer support resources who are engineers in our case are focused on solving customer problems not doing what felt like an administrative task to them and so I think the actual application of machine learning the actual application in many of these these technologies it's the application that's going to matter not the invention so a lot of what you said makes it makes sense to me because you're saying that your customers are gonna be buying essentially that machine learning capability in relative and applying it in very narrow use cases to solve their business problems rather than trying to build it right and you do see some companies trying to maybe get over out over their skis and over-rotate to try to build some of that stuff that's gonna come from the technology suppliers what yours if we're doing our job the infrastructure providers the software platforms like us we're doing our job we're making it easy another small example will be mobile I talked this morning about companies everywhere need to build mobile experiences and so there one do I need to build a mobile design team a mobile coding team if you're up if you're a bank or utility or an oil and gas company or a retailer or well platforms like ours make building mobile experiences really easy for them so we're trying to build that mobile capability that design capability that Design Thinking the mobile capability into the platform so they can just get out-of-the-box functionality and they don't have to have their own mobile designers they don't have their own mobile engineers they can just be saying how do I want to use mobile inside my company and then there they're taking our mobile platform if you will and and creating mobile applications and mobile experiences that are relevant for them so your brand identity is now making work work better for people yes when you are doing your blue sky thinking about the pain points that employees feel and that job candidates feel because that's their another important part of of companies trying to keep their people happy yes what what are what do you see I mean as you said the next three to five years are going to be this the revolution is going to be in the workplace yes what do you see as sort of the biggest challenges that you want to help solve well let me just take a simple use case that that comes to mind as you mention that let's take from the time you start being recruited for a company through that let's say you get hired and get started so the recruiting process you're sending a resume and you don't know if I got in didn't get in if anyone someone may or may not contact you you may get an interview you got to find out where you're going if you're going did you get called back maybe you get an offer letter it comes you get it all set all kind of I would call an unstructured workflow let's say you get hired then the onboarding process onboarding is a classic unstructured workflow you got to go to this security to get your badge you got to go to facilities to get your desk you got to go to it2 get your laptop or mobile phone you got to get to another part of IT to get your email credentials put on you've got to enter your information into the payroll system you got to reenter your same information and pick a health care provider you got a range of the same information and and and get a in the tini system you got to do all this compliance training painting an accurate ownerís picture this is your first impression of the company you're joining now there is no reason they took my mobile phone away from me so I'm twitching there's no reason why there shouldn't be an app that says a recruit says I want to interview if the company they download the app they submit their resume based on the app we give a response in the app they say oh might my resume was accepted and I they want me to do an interview and they want me to be in Santa Clara next once at 8:00 and here's who I'm going to be meeting with and here's their background in the app then they do the interview let's say they get invited back who they're interviewing with we're inside the app okay let's say then they get an offer well then the app has more permission in the offer comes through the app you can print it or you can read it then onboarding starts onboarding can be a seamless experience it still can connect but you enter your data in once it pre fills all those systems and then in one mobile experience you're picking what's your laptop what's your healthcare system what's the bank you want your payroll in teeny to go into and all the complexity is hidden underneath it that's what we have in the consumer world our lives at home when you buy something on eBay all the complexities hidden when you pay with PayPal all the complexities hidden there's no reason why all the complexity can't be hidden in the recruiting and onboarding process and and so the technology's there to do it but it's managing all the workflows managing all the processes underneath so you can pull that together into a seamless experience and that's the kind of experience it's funny I have four grown kids my daughter she started working I won't say where but a major technology company and she's like dad what's up with this onboarding process why isn't it in a mobile app and the Millennials will start demanding this and so I I just think there's so much opportunity to make our lives at work feel more like our lives at home and you just described the capability that allow you to reach your aspirations of the next great enterprise software company when we think of great enterprise software companies we think of Oracle and si P you're nothing like Oracle and si P in my opinion and then of course you think of Salesforce different you know you're not a an SMB how should we be thinking about the next great enterprise software company so this I think this is a really important question Dave and I'd look at it through the eyes that what I heard from the 500 customers and here's what I heard they're embracing digital transformation they're embracing cloud they're embracing cloud at the infrastructure level figuring out their data center strategy and how much they embrace public cloud and then at the software platform level they're saying we want to have four to six strategic platforms and often it's the born in the cloud platforms often its sales force and workday and service now and maybe office 365 or Google for email or communications maybe if they have a supply chain ASAP and they're saying I want those platforms to work well together so no one platform should be claiming they can do everything each of us needs to figure out what's our role and how do we work with one another and our role ServiceNow I'm proud to say is one of those strategic platforms as I said earlier people see our capabilities as being connective tissues helping to pull those platforms together you know in the onboarding example we pull all the data sets and platforms together by the way we don't slap our brand on top because actually employees want to see their own brands they want to see their own company's brand they don't want to know what the enterprise software brand underneath it is they just wanna have a great experience and so I I don't view it I think the winning enterprise software I see a chance for Salesforce and workday and ServiceNow and Microsoft to all be winners and delivering this future for companies where you are the platform of platforms though correct but that's not and I'm being very careful the way I say it I'm not saying we're the top dog sure I'm saying what we're good at is cross-functional workflow actually it's probably the grunt 'ya stuff all those things and you're the best at it and we're the best at you are and our brand we're not we're not forcing our brand everywhere that we're doing it in service to our customers and so I just want to always be listening to what our customers want that's gonna be our North Star they're gonna guide us it always has been I know you know Fred Letty started that from the beginning and that's what we're gonna continue to do well John it's always a pleasure having you on the cube so thanks so much for coming on our show thank you very much Becky thank you Dave great to be happy John I'm Rebecca night for Dave Allante we will have more from ServiceNow knowledge 18 in just a little bit [Music]

live from Las Vegas Nevada it's the cute covering knowledge 15 brought to you by service now okay hello everyone we are live for day two of coverage this is the cube our flagship program we go out to the events and extract the signal noise we go over here live in service now's knowledge 15 hashtag no 15 you want to join the conversation we have a back channel live chat on crowd chat new application which I'm excited Dave to show the guys from Sarah's neck as they love good software so but a crowd shot net / no 15 and see the conversation ask questions join our virtual social experience and we'll be happy to address that with your day to coverage live in Las Vegas out of three full days yesterday was a great day we had Frank sloop enough CEO opening up the day really laying down and and in clarifying the future of service now certainly they took a bath on the the stock last week on their earnings still in throwing off a lot of lot of cash great platform business great buying opportunity as Dave and I were speculating and ended the day with John Cleese famous actor writer comedian who we had some fun we try to bring a little bit of Jon Stewart a little bit of Jimmy Fallon I'm jump Road Dave vellante Dave what you think about yes that your laptop working parts of my lap water here I've lost my return key in my M so what you think John Cleese k the holy grail of our of our of our program yesterday he was great I mean we had a nice little bit going on there all ad lib just for the record folks he was not pissed he was totally happy at a great time but was all ad-lib he challenged us on the cube and it was great seeing after we were nervous and he's a pro we couldn't even hold a candle to his performance David it was great seeing him afterwards he came up to us yellow hey mr. classy came up and high-five and a smiling laughing it was great smart guy what you think of the inter very opinionated I thought the interview was great I mean it was weird but it was great I top guest top test of six years he's on a great show we had about you know 50 people behind that's all watching so it was really a lot of fun again but let's get back to the event here day two well you know another top guest coming up today is Fred ludie I think you're really going to enjoy interviewing and you heard him on the keynote John he was talking about the new development platform the new UI the new mobile app all that he was geeking out on all the technologies a lot of things that you're very familiar with borrowing from you know real-time geolocation leveraging the camera in the mobile app a lot of technologies borrow from Facebook and Twitter and a whole that whole real-time crowd a lot of stuff that that that crowd chat uses I know you talk about it all the time angularjs and all these kind of things that people don't understand our new crowd chat application go to crouch at that poke around look at the live one but what you'll notice on that app is one hundred percent as synchronous we use cutting-edge technologies like bootstrap we use angularjs and our new crowd pages coming out we have knowed Java on the backend for analytics really a cross-section of all the different language but node bootstrap angular these are the technologies that truly make it a singer's Facebook by the way is not a synchronous you've got to load the page having a synchronous communications loose from WebSockets days of web browser to fully available data real-time so near real-time is the holy grail today and basically instant is going to be defensive state-of-the-art today in software development that's what service now is showing on the stage and again a lot of it resonated because I hear you talking about all the time and I see it I see the green dot I see the presence I see the real-time nature and that's really what today's modern apps are all about and we'll talk about that today in detail what's under the hood for service now and again I can reiterate what a great software platform service now has I am super impressed the people here a passion about what they do Dave and I say you know we're going to get with Fred and here the founder story the prot chief product officer and all his folks because what they're building is the future generation Frank's Ludeman is a world-class CEO we heard the story of how he was hired you know Fred Letty said his keynote I wake up every day and I want to write code I don't want to be the CEO they hired Frank's luqman built a great business but not only do they have great business fundamentals and how they're executing their business plan Dave they have a great product leadership team the founder stays around every successful company that I talked to and i can highlight you look at them you name them all the ones that are the really sustainable companies Dave the founder stays around this is a lesson that the top VCS and Silicon Valley and around the world are now paying attention to is do not boot the founders out of the company marc andreessen with injuries Horowitz absolutely adamant founder friendly means growth and sustainability the old days of kick the founder out don't work ServiceNow is a great case study of a company that has grown from a seed idea go to market one booth at a show get some customers get some funding have a grade VC build a great product and continually to go to the next level and I think that's the story for us today what's the next level for service now what is that and you're going to see two major themes cloud born in the cloud capabilities asynchronous real-time presidents to enterprise grade enterprise-grade means you can't you can be born in the cloud and enterprise grade that's the Holy Grail Dave that is the key question people ask can you be enterprise-grade can you be agile can you have integrated stacks can you do stuff in real time and do it at a speed and at a scale that's the premise of the cloud and service now is delivering that so even my take on that so I mean you're talking about a cool tech behind it and there's a whole nother story here and Fred muddy and Dave right took us down memory lane today you know sort of the history of the company and going back to the original first knowledge and San Diego showed some pictures that was all fine and well and good but the fact is the piece that I want to add to what you just said is the customer angle I treated out yesterday Frank's lubin has made a career and identifying pain points and resolving those pain points essentially selling aspirin is what I call it and so that's what service now is doing there resolving the pain points within organizations it was interesting to note Dave right and Fred Lunney talked about how in 2008 when the economy was collapsing and Sequoia Capital you remember John put out that famous memo you better you hunker down conserve cash and Fred ludie showed the audience his counterpoint and basically it makes sense to me because what happened in 2008-2009 is people said let's let's start moving to the cloud more aggressively let's ship shift capex to op X and let's try to save money and service now is one of those technologies that really you know is all about saving money we kind of lived through that John right we were the open source version of information and so we have tons of demand around that time for our content service now in a whole different world saw uptick in demand and so they are really out solving customer problems dealing with process problems we're now seeing sort of the next wave the next evolution of that around email and how email is used as a workflow management system and is ineffective at that the hole forms business going to mobile and you saw today in the mobile apps it wasn't forms oriented it wasn't forms front and center forms is still there but it wasn't all about the forms it was all about the mobile experience so they're transitioning from this sort of forms based automation to one that's more mobile optimized that's something to talk to Fred yeah I think I think which day was your pointing out is is that the highlight of during a crisis at Fred Letty pointed out in OA at a critical inflection point of the company Sequoia Capital issued out a memo to all their portfolio come a little bit inside baseball but important to note that they said bunker down hunker down filled a bunker hoard your cash service now and this is where I love this company right they wrote a counter memo to their customers and the venture has a no no this is the winds are shifting we see an opportunity because their customers were going under or having financial problems they shifted their product value proposition to saving cash consolidation and creating an opportunity out of the crisis and I think this is the opportunity with cloud as you pointed out you seeing a transformation in workflows you're seeing a transformation in business process that is changing the game in terms of you know time to value cost structures and then the economics that's the promise of the cloud so again the companies that can take advantage of the times of the shifts and the inflection point because what's happening is the shift is happening and as an inflection point so yeah I think everybody talks about and it's so overused now seventy percent of the money that I t spends is on on keeping the lights on and and only thirty percent is on innovation I like to look it a little differently I like to break it down when i had my cio consultancy with floyer we used to consult and try to get the others to think about putting their portfolio into three categories their application portfolio in the project portfolio running the business growing the business in transforming the business and i think if you think about those things i think servicenow is very transformative and our helping companies run the business differently and grow the business as well so they're sort of fit into all three but they start with transformation and then change the way that people are running the business I think that's a much more effective way to look at that hole 7030 mix and I think service now is changing the way companies work what do you think about service now see earnings are we're out last week EMC report a little bit down VMware blew it away covering for emc you're seeing the big enterprise players service now take a big knife cut on Friday but that's Frank's lubin pointed out there in the long game and they have a platform play and they're throwing up a lot of cash so their cash flow is amazing Wall Street Journal has some articles about this kind of shift that we in a bubble is service now built for the long haul I want your opinion on this Frank subin weighed in on his and I think the software's phenomenal but let's talk about that yeah let's really his wall street not understanding about service so let's recap what happened on Friday service now announced earnings the stock had hit about a 12 billion dollar valuation which is you know sort of the highest valuation roughly that it had hit and people were getting used to service now continuingly continuously beating expectations well they met expectations actually beat by a little they had but they guided lower because of currency headwinds everybody's facing headwinds you saw EMC missed by about fifteen percent and it's you know this week and so all the companies and earnings releases are saying all right we're being more cautious because of currency fluctuations right the dollars getting stronger as a result you're translating international currency back into fewer dollars means less earnings so on an apples-to-apples basis servers now continued to blow it away they grew fifty percent plus but they guided lower they're a little bit more conservative so with the street did is they took about a billion dollars out of the valuation now since then it's come back a little bit it's not not come back to ten points to the loss but i see this john is a very very positive opportunity you said that you call it a buying opportunity i think it probably is you know who knows the markets choppy and maybe maybe you companies like service now that are high flyers you might see them you know up and down evan flow but here's the point and I think you've made this as well they are built for the long term and here's why they they started out in what everybody thought was a very small they've got a 40 to 50 billion dollar total available market that they're going after they're just scratching the surface right now they've got leading-edge technology they're killing the competition and they're growing into new places where typically these types of companies don't go the traditional IT service management folks where are they going they're automating service management not only with an IT but also within HR within finance within legal anything that's service oriented and their billet going after email if it's maybe it's be even bigger than a 40 or 50 billion dollar market so they got a big market they got great tech they got great management so I think there's a lot of room for this company to grow can they go to the collaboration space that's gonna be the question means all about email how much collaborative even ibn about competing with with this with companies like work they went all out HRM well well a CRM a Salesforce i think is a potential big competitor down the road i think they're on a collision course with force calm and Heroku and you know all those app development you know activities that those guys are doing but that's it's early there but I see that yeah damn your point about sales force this is why I think its dangers for sales forces why I think you know maybe we're kind of opening up the kimono here on service now because we're reading the tea leaves but what em what Amazon is done for the cloud and what we're doing with crouched at servicenow is doing for iit meaning they're building integrated technologies for a variety of different use cases that quite frankly it's it's enabling so sales forces cobbling together a bunch of stuff they got chatter I got this and when you put monolithic systems together and try to match them together into quote a you know fake stack that's really not going to work so I think the challenge for the incumbent companies like Salesforce and others is if you cobble together technologies and don't integrate them in there for this new real-time clouded native born in the cloud mentality and have the enterprise grade you will lose some territory so service now is doing both of those and they could take territory very quickly so they're humble saying no no we're not competing I know we got to go but last thing I'll say this frank says ITR our homies that's the Franks lupins you know so it talks about IT and the reason why I see that as a big advantages i T is the one part of the organization that has purview over the entire organization so a single cmdb with nit is very and whoever controls the data will be very interesting so real time having the data having the platform will give you a lot better horizontal platform I love what service now is doing again we're going to go this is our pep in by the way and this is not their messaging but we will probe all the guests Dave we're going to kick off date you this is our intro for day two wall-to-wall coverage when we hear all day here at in Las Vegas with service now nawlins 15 this is the cube I'm John for Dave vellante thanks for watching stay tuned and all day today thats is the cube we'll be right back after this short break

live from Las Vegas Nevada it's the kue covering knowledge 15 brought to you by service now okay welcome back everyone we are live in Las Vegas a circus mountain on 16 hashtag no 15 this is a cube our flagship program you go out to the events are strictly simply noise i'm john furrier with my co-host cable on things chasing the weight on President assertion house business unit for cloud sherpas a business partner top of the heap for these guys congratulations thank you appreciate it oh you're sorry how about cloud shivers and what you guys do house of the integrations use what key areas sure so at Cloud Sherpas is a cloud services brokerage as a gardener term we provide cloud advisory and technology services for three key platforms where a partner with Salesforce platinum on three continents with the top three in the world we're also a have a line of business supporting the Google for work or Google's partner of the year 2012 2013 2014 largest Google partner in the world of course I'm responsible for our service now practice we were none of the first partners in the ecosystem one of the few partners that are global platinum excuse me master services partner in the in the ServiceNow space and very large presence not only in the training practices we had over 28 the trainers here helping to do the pre-conference training on behalf of service now and you know over 3,000 clients today on the ServiceNow platform so you're in the middle of the digital transformation we certainly aren't there you got senseless Google servers three really top products what's your take on the cloud I mean what else or the challenge me hace cloud is whatever we're seeing where are we in the cloud evolution are people so president we in the third inning first inning why would you pay go back in terms of going into this modern era I say you know I have my take on the clot is it's the only take right now there are very few things that you can do in technology that it gives you the extensibility of the scalability of a cloud platform really reduce that time to value once you get those clouds in place what we find is is very few customers we talked to you today that don't have some sort of cloud application in fact Dave I think last year we talked a bit about you know that the proliferation and cloud being a bit of a challenge in some cases you can see custom customers with you know 30 to 35 different cloud applications and of course then clearly if you've gone that deep in cloud there's some overlap you're going to start sub optimizing we're focused on three core platforms iono sleaze most concerned with the ServiceNow platform what we're finding is you know we're really just in the honeymoon of extending the platform past IT I think our consumers that we see there they're well beyond to understanding that you know service now is an extremely capable IT service management tool and now we're in the space of exploring you know those adjacent spaces and and and looking at the power of the single source of record in the work for an automation engine of service now talk about the convergence of the consumer consumerization trend with the reconstruction of the back ends of IT and businesses which is computer systems as you got the converge is all coming in user and user experiences iphone app store meets plumbing all that stuff it's an integration potentially nightmare it's a challenge but the opportunity if you crack the code it's pretty significant but share your thoughts and observations on on that dynamic what are you seeing a success formulas for folks that want to integrate fast modernized to have that you know it feel of a consumer company but yet still scale and have all the requirements yeah we see very few companies that aren't interested in some level of a case of integration in their operation we're well past this notion of you know you go to product expert for one activity product Y for another activity our consumer behaviors if you look at that bridge between hardware and the service experience or the user experience you know apples so famous for many others you know those bridges have been crossed from a consumer perspective and what we're seeing is tools like service now being that chasm or being that bridge really in the corporate you know back office we spend a good deal of our time working with IT departments because it's not uncommon and fastest most common for service now to be implemented as an IT tool first and so there's this education process you have to go through that that starts to reveal what the opportunities are to expand the platform the best way to always do that is through case examples other users experiences we've got a lot of really interesting you know use cases over seen today I mean last year we spoke about Einstein know a hundred and thirty-seven percent increase in food borne illness and stores right not because they changed their the way they did business because they automated that workflow on service now we're working with a large Brewer and looking to modernize some of their brewery systems and those forward-looking maintenance task and you know it goes on and on and on folks an IT don't tend to understand or don't tend to think of what they're doing is some kind of chasm you know crossing you know major issue in strategy they're just trying to solve a problem and now they've got a tool that really enables them to do that quickly so Jason we've talked before about you guys made some early bets with with Salesforce but really Google and service now you know it wasn't clear several years ago that this was going to be the type of business that it's become so talk about the momentum in that business what's driving that and then I want to talk about the extension into the business side beyond IT so the momentum is is the market the market was really ready for something else particularly in that IT space right in it once you get IT and you know necessity is the mother of invention you've got this wonderful cloud platform you know that you can extend and use for other things and and you know your IT your IT folks tend to be pretty crafty right so they're going to they're going to find those opportunities they're going to look for solutions they're trying to delight their clients and the way they're going to do that is through the cloud platform you know the market was just ready for something different service now is that that that thing that was different you can certainly see the the way they've gobbled up the market in the ITSM space I Tom's next management also you know getting very significant at this point so you know if you really look at modernizing that IT the Department of IT and and the users that the touch IT across the corporation there's there's no better place to be than right where we are with service now and then two years ago at knowledge 13 it was sort of Fred ludie so it gave us a glimpse of you know creating apps on the platform big announcements now this week you guys are part of that contributing to that why don't you talk about the store what you guys are doing there yeah so just today in fact service now released the service now store we have been fortunate to be part of the the initial pilot group of partners out there we have two apps that we released on the store today we have a legal application we can talk about what that is and what that does and we also have a security incident management application and you know that's just really going to be our start there we have plans you know through the rest of the year to add additional applications into that store service now from a platform perspective is caught up to the point where you can now abusive by your IP so you can protect your own capital from you know coding perspective and it's it's enabling that to really propel us into a space where we can make those applications that were today we're building one off for clients we can make them you know something that is built once and repeated many times so let's let's unpack those let's start with the legal app what is it what does it do with problems is assault yeah so we've we've implemented a legal application that was the foundation of this at six different legal organizations you know since we've been part of service now and we're really addressing three different aspects of what's important in illegal operation first and foremost there's a workflow between lawyers and document processors people that do research requests and things of that nature and they needed a way to track that very often it's done by email and you know there are no kpi's or service level commitments or ability to really report around that or understand who's being responsive and who's not being responsive and what information is needed in a transparent way so we've addressed that workflow that that lawyer to research request or document processor that the second piece of the application is legal firms have very vast digital libraries now and they have to manage their subscriptions to those digital libraries they also have to manage information requests for those digital libraries and so we've got those built in as well and then last for all legal firms it's extremely important that they have good understanding of billable time and so many organizations are using tools like Kronos or others and we've been able to actually integrate service now with those tools to not only ensure that you've got a good understanding of the billable hours for the lawyers but more importantly that as you go into those shared services and legal organizations we've got a good bility to abstract what their billable hours are and get those back to the appropriate project out of for instance Kronos exact okay so where does Kronos leave off and we're to serve us now pick up and we request into that system or can you describe that a little bit more d yeah so it's a it's usually used in this applications used in a way to kind of give the legal departments transparency and where those billable hours are coming from you know anybody can log into a prono system and pull a record but it's not often associated to a task we're not often associated to the specific activity you might have an hour of billable time but that our billable time may be made up of four or five unique tasks and some legal organizations customers want to get a little bit more transparency this is the way they can do that you're actually associated down to a task level I know we want transparency John when we got our bill from lawyers no way okay and then you know the workflow between lawyers and document processors what people might say well can I just use a ticketing system to do that what's different here you could use a ticketing system to do it in fact you know incident management is a foundation of any good transaction of work between groups you know so that sounds a lot like a ticketing type of application that the benefit would service now is that of course it has that but in addition to that you have the ability to get reporting you have the ability to automate the workflow you can add raw security and draw roles and and groups a little differently and so you have the ability to target those things are really useful for those individuals and not distract them with everything else and you've got integration potentially if you have a single system of record with other processes within your organization got it we all right what about the security app let's unpack that a little bit you know your service now talking about security and what's your security so it's I really look at as a precursor of a really dis notion of how are you going to really comprehensively manage security incidents if you think about what securities teams do today particularly with threats new virus new code those types of things there are a lot of different channels where they could pick up that information in fact many security organizations follow certain handles on Twitter because they might get the information first their email is coming from vendors there emailed coming from other organizations there are websites that get updated in other types of places where you've got to be able to integrate with these many different sources of records parse that information down to what's relevant for you and then you have to structure some work flow around that so you can manage it so what our application does is it creates the ability for you to create unique streams and query those different repositories of information looking for those unique strings right threat virus a for example and it will then create automatically those tickets so you don't have to have a person parsing out emails parsing out websites parsing out Twitter information things of that nature the system is going to do it automatically for you going to create that in a service now record going to give you the taxonomy of where that threat information came from and give you the ability to tie that back into your IT operation ok so now talk about the business model for these apps how you charge for them is it a subscription what you go to market on them so if your app services around them yeah so it's different by application you know this is obviously a very early market for us so we're still kind of fine-tuning our approach but service now has given us a lot of flexibility there so we have the ability to offer app by app pricing we have the ability to offer subscription pricing we also have the ability to kind of a freemium model if you will where you get a lighter version for one cost you can elevate privileges for another and of course we always have the ability to turn that into a services engagement and charge nothing for the application so you know we're still working through that as we speak to the store was announced today so we're going to have a lot to learn there but we've also been piloting kind of how consumers share and use service management information through service now share site so for the last few years service now is how to share up and running developers and people on the ServiceNow platform can go download bits of codes and things like that and make that useful for them we've got over 2,000 download on the share site so we think we have a good understanding of what the consumers would buy in a marketplace and of course that's why we've positioned legal and security incident is our first applications you mentioned the quote here your customers want to automate more across their enterprises with innovative business applications that's kind of the sound bite you mentioned some of the workflow stuff with your clients what innovative applications are you seeing give some other examples of applications that are innovative that you guys have worked on that service now is but be part of well and I could give you a long list but i'll give you some that i just think our think you're interesting the brewery application i think is quite interesting so we've got a number of retail franchise types of restaurant organizations that we work with my PA and it's important for them I'm not going to tell you it's important for them to be able to request beverages and types of beverages and get them to the appropriate place at appropriate time so we actually have a request catalog that fulfills that a lot in the facility space right now this notion of you know what you need to change a light bulb or what you need to shovel snow in the parking lot or what you might need to do some different types of things get a bid for example for services to be provided very similar to the types of workflows and I teaser working those that if you go back a decade ago would cost what to automate I mean in terms of costs order magnitude yeah definitely larger would you it's an apples to oranges comparison I mean I can't even you know this would be a unique application and in you know years ago you would start that conversation by saying okay we're gonna need a server and where you need to put that at a data center and we're gonna need to make sure it's secure and then we're gonna need to build it on some sort of database and build something onto all that higher and you know you know exactly so and then if you have any money left over he could actually I mean you could actually we don't have in start there right because as customers of implement service now we're down to okay what is it did uni really neat what do you want the application to do security requirements are met you know roles and privileges already established your architectural your eye functional real need of the conversation exactly exactly so your start you're not starting from a technology discussion you're starting from you know a business reason somebody needs some nology which is just foundationally different and what's the big big AHA at the store announcements of our what's uh what's the big the top line news on that you know what I'm excited about is uh I think and and it's what makes knowledge conference such a great event is you end up talking to clients and you end up hearing so many different ways that they're using service now and so I think what will find the store really becomes an amalgamation of that you see many different types of technologies and course will have the ability to see well what's really important what's really moving in the ecosystem what matters to clients and they'll have a way to do it that doesn't necessarily always sound like a services engagement which I think will be empowering for them so I want to talk about this sort of the role of a company like yours as an application developer and you know service provider relative to what service now is going to be doing obviously you know Fred Letty wrote the first application yeah service now they've introduced the store so what's your take on that and that mix do you I mean servers now talks that they're going to really open up the ecosystem and and what gives you confidence that that's going to be the case that there's gonna be plenty of white space what are you what's your take is well there's there's no question there's white space I mean we've been in this ecosystem since 2007 and it's been nothing but white space right so you know there's there's not a single anyone that I think could fill the void of what the cut clients are looking to do in the platform out there and I'd like to think of you know Fred Letty built a really capable IT service management solution and people kind of forgot that he actually also built the canvas that that solution is drawn on and you know the canvas is blank at this point now we were able to just you know kind of put the technology aside and say what matters what's important how do you want to address that and you know there are a lot of businesses and a lot of customers and a lot of work flows within those businesses and customers so it's a great opportunity for us to get in those days and you guys are remain a high-touch service provider we're not becoming a software company overnight but you're increasing the software content as a means of driving efficiency value add for your customers it's it's a good question so are we turning into a nap shop right and the answer is no but we are building some apps well why are we doing that you know foundationally I believe that you know we could go out there and I could speculate on what the next best app is and go try to partner with somebody if it's got domain experience and X Y or Z how to build a bread bread basket whatever it is and then try to turn that into an application and hope somebody buys it we've actually gone the other way we're actually listening to customer needs and looking at those services engagements to say okay where's the content that really needs to be repeatable and that repeatable content is a good base or foundation for you not to defer venture development opportunity on a first service delivery as exact which then turns it into potentially of portfolios efficiency customer satisfaction stickiness also you believe that situation so your believer SAS churn turns everything upside down it really doesn't okay great so the cloud mobile social revolutions upon if you guys are in the thick of the digital transformation so what about those companies that were the apples and oranges examples from 10 years ago the big sex accounting firms which are now our big consulting firms they're out there you know they said they're stuck in their ways what's their challenges and how do you guys extend your distance and expertise lead against them so I look at a big part of how we've added value in the ecosystem because we're relative to a KPMG or in accenture we're relatively small firm in thousand people globally so why why are we so good at this right why are we competitive why the wood Forrester put us in the leaders quadrant in this space or leaders wave in this space why would they do that it's because we're able to get to a customer and meet them where they are you know we're going to be very agile we're not trying to roll into some you know business transformation we're actually transforming business one workflow at a time you know in the trenches where it really gets done and that leads us to the next opportunity the next opportunity to track record some trust you get a cute well or if you should you taking the time stopping by and Neville see you tomorrow yeah as well on the cube getting all the action here live nonstop fireworks of action here in the cube all day three days wall-to-wall coverage I'm John for David eyes will be right back into the short break with the segment from Cloud Sherpas great great insight thanks so much just for coming on the cube we right back into this short break you