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

David it's just gonna call in like basically live feel more nos Vegas Nevada execute again it's the 10 covering knowledge 15 brought to you by service now hello everyone welcome to the cube this is our flagship program we go out to the events in the correct the city okla noise I'm John furry the founder silicon they enjoy my coach Dave vellante co-founder Wikibon org and networks I to be in Las Vegas live for three days of wall-to-wall coverage of service now's no 15 knowledge 15 hashtag no 15 go to the crowd chat / no 15 join the conversation our first guest is Frank's lubin president/ceo source now great to see you again thanks for having us thanks much absolutely the keynote was great i mean in the world's changing IT cloud vmware's had an announcement about native apps on the cloud customers are changing business models are changing talk about what you get to do house that you had a big stock drop in the past week and value is that a sentiment of the of the of the Wall Street dynamic products what is it about the business right now with clouds specifically the business model for your customers it's flywheel the SAS models what's what's going on what's your take on all that flying cloud companies and obviously well I ought to got a lot of the high we're one of them you know we're priced to perfection right and that's that's not an easy place to be for for for anybody and you know we're not really focused on that it's this is a marathon every quarter is one mile marker he can't get too excited about you know one versus the other we're really pacing ourselves your building you know an enterprise that's going to be here for for a long time and our focus is not just on modernizing what what people are doing it's focusing on transforming what people are doing and the emphasis that we place on everything as a service structure workflow approaches getting away from message oriented ways of doing things like email is enormous sea change right there is there's over 100 million PDFs out their forms that people have to download and fill out what somebody else then has to scan and reenter right the world is ripe for this type of innovation the technology is here all we need to do is apply it the start okay so I said when I talked yesterday and I said any successful 12 billion dollar valuation company's going to have a day like friday but I've noticed post the financial analyst discussion yesterday things have calmed down a little bit so who knows maybe it's a buying opportunity I wanted to tie it into the TAM expansion that we've seen when you first took this company public everybody looked at it as a very small niche and it took you and Mike scarpelli and others a while to sort of educate Wall Street on the size of the potential and we're now starting to see that come to fruition you guys talk about expanding into the business side and now you're doing it you talk about going into mobile you talk about you know new innovations at the SMB why is it that you're so successful at executing at what you're doing is that the platform is that the people is that the customers I wonder if you could describe that a little bit what's the magic formula are fundamentally a platform company we that was not always well understood even before I joined the company and I talked to Fred Lunney the founder we were very well aware of the opportunity to expand just dramatically beyond the boundaries of the initial application set which was the IGM set of applications it's just how to do that right when you peel away the veneer the rhetoric the nomenclature you know what you see is a workflow an orchestration platform this is so broadly applicable right what these knowledge conferences are all about is to show people what is possible on this platform and you know all we have to do is take the horse to water soda drink and then you know they go on their own right this is a place where people come to get inspired platform and if you seen from some of the examples that we had on stage this morning and people are not tackling crm applications what service now you know why there's really nothing there's really no boundaries in terms of service management for us to tackle workflows and orchestrations like that right so the world is your oyster II and there's really no place that we we can go with this platform all we got to do is empower and energize the audience that you have here and the fact that they show up in such huge numbers as evidence that were we're succeeding at that right good all the events it's the same kind of theme Internet of Things Big Data have paced are changing clouds and innovator what is it about the cloud and your platform and your customers in terms of the business models what is it about the innovation that's going on right without business must change what specifically can you highlight and get some example because you have a lot of customers we were just talking that the cubbies are sending dozens of people here this event it's not just a boondoggle there's some real work getting done so there's a huge transformation see what is it about the business model now that's changing what are you guys doing turn on your platform this conference is called knowledge for a reason people come here to get knowledge right that's right the labs and training and all this kind of stuff but the most important thing to understand about service now what we did with the individuals really lowered the skills profile and the skill demands to be able to access this level of functional and we really did that by an order of magnitude this wasn't just a platform for programmers people that really have procedural programming skills we really took that out of the equation and people have Excel style skills people will understand the rows and columns and data types that's enough to know to be able to go up okay now what happens in that process we empower very large groups of people in our case IT people to basically take control back over this platform you know in Prior generations of this class of software they were always dependent very small we were people that weren't very accessible and very expensive to do thanks for them how they're doing that is what has unleashed explosion creativity let's talk a little bit about your keynote everything as a service was your big theme EAS sort of acronym what is everything is the service number one second question is is there an analogue to vm sprawl is there a potential for server sprawl what do you what are you telling customers about that are they asking you questions but start with what does everything is a service what does that mean everything is what service means taking work work in the sense the repeatable activities things we do over and over again digging it out of the realm of messaging email text phone and putting it into structure workflow we essentially invent that dress as once without best practices really tune and optimize that process and every single time we do that activity we do it exactly the same way and we enforce the business rules the logic upfront stupid enough to thinking like I always is the silly example an organization I lose my security badge or I mangled in the door I need a new on what do I do well you know I Massey Hill I just asked my admin you figure it out okay but everybody else starts roaming the halls like where do i go to go to the front desk maybe you know that thing employees have to have a place to go for their service needs whatever it is HR related facilities related maybe have a parking issue and you should be able to search navigate themselves to a place where they can make a request and then that request is no different than sending a package through fedex or ordering something on amazon information it's now following you you don't have to go and chase it anymore right oh there's a big inversion of how we work i mean we often target service now but we're changing how we work because we're going we're getting away from the structure messaging woman be structure workflow that's what everything is a service is about regard to aquino but so second part of I want to talk about that is my question is there a dark side to that is there a risk of just too many services service sprawl or do you have service for that is there an app for that yeah talk about that logo the obviously during our keynote we actually spoke explicitly to that point because you're concerning your race is legitimate people are saying hey you know DevOps is great you know empowering all these groups to publish their own services that's great but now I'm going to lose control I'm going to lose visibility and we'll lose accountability i'm going to have compliance security problems and so on what we do is you know we actually maintain the transparency the visibility and the control while people are doing things so it doesn't become the Wild West that we've had in Prior generations of software >> Frank talk about what you're seeing in big data honestly you know we didn't cover that space this doesn't seem to be its own little market but certainly medupe to some stuff going on but companies are looking at Big Data certainly in data as it advantaged in some of the things whether it's IT and or an apple agents what's your vision and what is what our customers doing with the day how's the NIT date is great and everyone's the service date is enabler you look at that and how do you find your customs look at it are very transactionally intense but so our systems they're not data rich in the sense that we deal with enormous volumes of data so it's a little bit of a different model and during the keynote what I talked about it's not like they what's hiding your data we can't figure out what's going on the data by structuring the data right what big data tries to do they're trying to figure out what's going on in unstructured data really really hard to do we structure the data so hence it's very very easy for us to analyze the dashboard exactly what's going on but our focus is not so much on big data it's on real time data the real time dimension is something that is going to become huge because people are demanding real-time information is just not interesting to look at data it's 12 24 hours old and because we are sitting on life data the ability to represent it so you can see your business in action right that is insanely exciting for for executives and managers network magic was hot in the old days with the network little but now the way date is got that same kind of paradigm where you have active data passive data and by melding together they can create values that mean we the CIO that we talked to they what you mean by real time today yeah I said look where I want to get you there's one my office just wall-to-wall LED panels and I want to see every every pocket of activity I want to see it executing in real time whether it's good better and different setting threshold seeing exceptions and says I want to be it's like watching the stock market I want to watch my my business that way and that is what we're going to focus on very different from data oceans and data legs and all this kind of stuff we've already structured the data we're not going to have the problem of big data the three of us started our careers without email and it was amazing productivity bump into our lives when we got email but now email is this productivity killer you talked about it in your keynote you guys did a survey is that basically forty percent of a time is spent on admin tasks and employees time I know judge doesn't manage I'll give your calculation i saw was manager with just even you know higher salaries but so how much of that can you actually reduce and what a customer is actually doing around that well it can be reduced by orders of magnitude you can't make it go away I mean people have needs but being able to make those needs fully automated very intuitive very productive it's absolutely possible right I mean 42 days a week almost half time on tasks that have nothing to do or your job is absurd I think this is almost a dirty little secret of business death we have invested in everything except our own internal workplace productivity right we're stuck in the 1980s if not the 1970s and who's going to put on that mantle write it and we're always trying to drive IT to take on that mantle because who else CEOs typically are focused about revenue right image presentation right coo CFO's those are the people that should be driving the internal productivity challenge sorry just that we just haven't made any progress there in decades and the acceleration now is a significant I start guy an email Facebook say I just finally gave my blackberry you mentioned iPhone and your kita he's still using the blackberry I was like that's actually a great scandalous blog post opportunity but are you mentioned iphone in your keynote moment of this is changing the world certainly edge of the network smartphones and we also hear from customers want to be more Apple night so what's your what were you hearing from customers and they say I don't want to be like the 80s and 90s I want to be more like Apple meaning kind of like the iPhone and the innovation that they bring what they brought to that or you guys been using uber as an example or open table as an example that's that modern vibe for the customer what are they trying to get to in an environment what's their outcome what are you hearing customers the first aspect is the series experience itself in other words what does would like to do what you want to get done essentially we're transactional platform we're not a hanging around platform like a social system we twitter has no no point no purpose it's just nice to shoot things out into the ether and help somebody sees it our systems are not like that it's about performing a unit of work something very specific about the beginning it doesn't end and there's things that happen in between the result it's very different that way uber is also a transactional app I want to hail a cab I need a ride opentable is transactional act I want a reservation there's a very specific end point to that unit of work and this is where technology can be incredibly helpful to get you there faster i use the Gulf example you know fewer strokes is better right and as people want they want have grubert a lot and I find that user experience my blowing compared to trying to call or or hail account it's cheaper and it scales incredibly well right but if wherever you are or whenever you are it seems to be there's cars around this quite impressive App Store like model the enterprise has been kicked around for a while is that service cataloging uber shows the real-time aspect of services needs you know demand in real time but in the back-end service catalog that more apples to the apple store at the back end its lights out light speed right in other words it's just like Amazon right everything is the speed of light until I got to pick something off the shelf the real world kicks in and i have to ship something the same thing same thing with fedex I mean the information processing aspect of FedEx is what makes fedex special in fact that they have planes and trucks you know it is not what your user experience focuses on yeah you got minimal exposure to that you are you're on your way to a billion dollars here shortly you've laid out a plan for four billion by the league 2020 correct with the the financial analyst a lot of people say well one of these guys going to make money you have indicated before you you're right now after scale after growth and what if you could address that um we actually were profitable are you sure I mean we were you could make a lot more money if you want to do but you're going for growth I should have clarified that question better you guys can be wildly profitable if you skip down and just reach over office we've always said and by the way you know one of the things that that our business model really focuses on is making sure that the cash equation really work so on a cash flow basis we're doing extraordinarily well because it's a subscription model you know the profitability equation is a little squishy it's more accounting them than economic which is why the focus on cash our investors focus on growth in the next thing to focus is on this cash right and after they get generally accounting representation of our at some point the law of large numbers kicks in and that's really maybe out in the business out a target model yesterday I was we put updated for the financial analyst shows you exactly where the leverage is coming from transparent supplies for peace I want to let's do a great job of that very drill into on the he said amazon amazon does a great job executing and near a great executors and certainly proven that we do successful with the company but they're constantly innovating the new product announcements debía new announcements is that the new competitive advantage scale and stickiness through rapidly iteration of new features is that this is just a one-off outlier with amazon you see no price it be more like that's one of them  you see that with Tesla they've changed the car industry there's constant updates to the cars right a changes of driving experience and that that model of rapid iteration is really the new normal you know back to the real time thing it gets really boring when you get an update every 18 months you think we don't tolerate those kind of time friends anymore and lag is not a good ending our but I you know software gotta ask you a final question I know you getting we're getting a puppy you get very busy schedule thanks to spend the time with us as well I'll see you had a your competitive sailor and following your career right outside sirs now you got a boat for the nuchal hand you mentioned data ocean data legs big big fan of data ocean I want you to share perspective from what you've learned sailing and being successful winning and sailing with how to navigate an idea this as a c-level executive or a CEO CIO or some of the trenches what lessons can sail in your experience is sailing and running service now what would you share with the folks out there as they try to look at their transitional transformation I teach transformation the others there's a lot of analogs if you will between sailing and business because it's this multi-dimensional game that we play you know in sailing it's about technology it's about how great your crew is it's I'll get your boat is it's the weather is what the competition is doing all those things you have in business so people always want to write it yourselves he's like another you know another another brutal contest township and that's that's all true it's very multi-dimensional and finding your high leverage entry point because you know it's very easy to do super business super busy and business and really not move the dial right so understanding where leverage exists what opportunities are that's really the art form I Frank great to have I know you're busy to getting them getting of the big nokia pricing the president/ceo of service now here live in Las Vegas is to Cuba railroad next guest live in three days wall-to-wall coverage here at no.15 join the conversation crowd chef net / no 15 right now

okay we're back this is Dave vellante we're here at knowledge the conference for service now users and we're at the aria hotel we're in Las Vegas earlier today we're broadcasting SI p sapphire SI p sapphires on SiliconANGLE too so you can check that coverage up but we're here with the whole team the cube team Jeff Frick is here my co-host for this week we'll be broadcasting live today tomorrow and part of thursday we got service now executives but more importantly we got tons of service now customers coming on but we've been talking about all week Jeff about the single system of record the sort of secret sauce behind a service now yes it's cloud platform yes it's ass but this notion of a single record database cmdb a configuration management database it sounds trivial it's not Chris Pope is here he's the director of product management for service now we're going to double-click on this notion of single record Chris welcome to the cube thank you very much having it's great to have you here guys so to be exciting yeah and we're thrilled to be here where Jeff and I were walking around last night talking to customers talking to prospective customers a lot of excitement I heard that figure that thirty percent of the audience is is perspective that's correct yes tomers that's a that's a nice number so hopefully your sales guys are here with you know how to go to wet yes I'm going to work right so let's talk about this notion of a cmdb we hear a lot about it it sounds pretty straightforward how come everybody doesn't have one well I think you know a lot of people try and have one and there's so many disparate data sources in IT now and you know with big data and data exploding and data centers growing worldwide it's kind of how do you wrap your arms around this stuff and you know having that single source of truth nut it's great you can collect the data and bring it together but can you truly trust it and you know if you're going to use it to drive decisions and impact analysis risk analysis and you know make changes in your business in an agile way well it can't all be in Bob's head who's been here 30 years you know Bob's going to go away at some point and you know if you're driving workflow and you're making decisions on a daily even a minute by minute basis in some occasions you know you need good trusted data in a single source of truth and then people don't worry about the data now they focus on delivering the tasks the services or whatever it is they're implementing knowing that you know they've got an accurate record they can trust and move forward with yeah so again it's it sounds so straightforward but it's not trivial to build a platform that is flexible that you can you can design pretty much any business process around it how is it that you guys have been able to successfully do what nobody else seems to have been able to do you know I think one of the big things is you know it's it's organic we have one platform one single system of record one database one data model and I think you know a lot of the legacy vendors and I'm sure others have talked about this a little bit I've blown up through M&A and there's a lot of glue I mean we have no glue right it's cool and when you know Fred who's I found that you know design the system and put it together it was with a focus not necessarily on the technology but what's the easiest way to complete the task I need to complete that's kind of core of what we do and why we do and if you can do it in three steps do it in three you don't need ten you know need 20 and I'm really focus on what you need to accomplish the task versus the nice to haves and I think you know a lot of seemly be projects fail because they're seen as a technology issue versus well you know we're running a workshop tomorrow on this what do you need to drive process or make decisions have that data available the rest of it could be useful at a point in time to make an additional decision or you know maybe you need a tiebreaker but for this task right here right now I can make a decision I can move on and we make it very easy for you to have that single system a record and you don't need to integrate with many other things it's all there it's really if you can draw it on the board you can implement it in service now but what you find with a lot of customers who are kind of less agile in nature and a little bit monolithic is they struggle to even draw it on the board right and therefore putting in a tool will only help you fail faster rights if you go back to figuring out what it is you actually want to do then use the tool to accelerate and automate you've got a much higher chance of success so that's interesting because I've been saying all week may I came in here with the premise that the real interesting business impact servicenow is that it allows me to change my business process is the way I want to run my business processes I don't have to design them around some module or so we'll lose this feature if we can't do that so so that's critical but you're saying start with the whiteboard start there and figure out your business and then we'll we'll be able to accommodate virtually anything is it really that flexible it is and you know I've been a customer three times so I've kind of got the war stories and I've worked with the dinosaurs out there and you know made the dinosaurs extinct in a lot of accounts I've worked in and I work with a lot of customers and you know it's easy to focus on the technology right it's here it's very available consumer-led and driven but it's you know if you step back and say what problem do you actually want to solve and let's draw the picture and even in the workshop I'm running tomorrow we have 30 whiteboards in the session and we're going to make the audience get up and work and design and draw and solve the problem and then we'll build it in the solution during the session live on stage and because we've taken away a lot of those things of you know the infrastructure the data center managing the tin it's just not cool anymore right nobody really wants to do it you know they can focus on solving the problem not wow it's going to take me six weeks to install servers and databases and storage all that's gone away and it's like okay if I can draw this and I can draw it in the tool and I can make it work and I can give it to my end users in a very consumer like way and off they go they can consume on an iPad a mobile device whatever it's going to be that's the natural behavior they have now of interacting with software so why should it be any different in the enterprise and clearly you know that's a big mantra for Fred and what he does and how he drives us to do things and you know and that's why we've got these phenomenal success so well so when you go into a customer for a new customer implementation they obviously been doing things away before you got there so is it greenfield let's start with the whiteboard and leave those in places how do you just place the way they've done it now you go doing so if they had integration from what they are you sitting over the top yeah so we you know we come out of the box you know align to ITIL and I TSM best practices but it's a framework it's kind of you know this is great but now where do you go with it what do you want to do and every custom is slightly different but maybe the course seventy eighty percent is pretty consistent and then it's about you know I talk a lot about being disruptive challenge the way of thinking just because you've done it that way for 20 years doesn't mean it's the right way to do it going forward and I was just meaning what a customer downstairs on exactly this and let's sit down and try and solve the problem let's figure out the what what is it you want to do and why and then the how is the technology to deliver that solution and then if the technology enables you to do those things easier even better because you can solve the next problem and you know we we make it as interactive as we can and try and learn from them what they actually want to achieve I t's very good at proposing solutions but they're not always sure what questions being asked so you know certainly what I do and you know traveling the planet as i do i always try and find out what it is you actually want to do kind of normalize of Technology if you could have anything what would you actually like to do and then here's where service now fits in and there are be pieces of the pie that we don't do it's not a core capability or our DNA and that's where we've got some amazing vendors and partners we work with who do fit in in certain places that augment what we do so on the transform it the transformative nature of what you enable I would imagine most customers are not picking up the phone to call you guys because they're all vested in IT transformation or are they usually it's a burning issue problem and the phone's ringing off the hook and I mean to get a lot of the time you know out of adversity comes try it right and they've usually had some very large outage any you know the banks and health care over there from a security breach to ATM networks being down or people not paying bills online it's typically a compelling event CIOs tend to have a fairly short life span yes what they need to do in that short lifespan is do something different or disruptive or you know they're going to be out on their ear anything right so this officer see compelling events but then when you you know technology events around upgrades and moving to new systems a lot of our competitors takes 18 to 24 months I mean even the customer I just spoke to downstairs took them a year just to upgrade the software that was our even looking a process change and doing something different so I think a lot of what we do enables that very simply and easily and they focus on the wat necessarily the hell a lot of times talk about CIO the half life of the cios you know yes tote 18-month yeah all right so but a lot of times CIOs know they want to make a mark but their risk averse because if there's a disaster under their watch the other they're cooked it seems like service now is a is a great initiative for them to transform relatively low risk but what are the risks involved you practitioner you know on one side what are the risks that need to be managed when you're when you're bringing in something like a service now plan yeah i think you know we were the first disruptive technology that started to a challenge this and and its cloud-based right you know so there mediate ones around trust security where is my data if it's not in my four walls of my data center i feel uncomfortable right and with data breaches and everything that goes on in the world people get very nervous about that stuff and I think what service knows brought to the table is look you know we do this well this is all we do and we are very very good at it and therefore you can trust is and often times you know we'll put our security up against another customer and say okay let's go toe-to-toe and let's prove how good we are and what we've done and here's our you know all our certifications and and certificates to operate and things like that and I think then it's just that little bit of mindset and I think what a lot of people forget is switching out a tool is a tool right and it could be any toy it doesn't matter there's an organizational change that comes with this and a lot of our keynotes this morning and I've worked very closely with Allison at the coca-cola company it's a mindset and if you can win the hearts and minds and then make the solution complimentary to their day-to-day tasks people are going to use it right and you know like sending an email okay that's fairly simple but now setting up a meeting or tweeting or whatever it's natural behavior it's in you're out and you're moving on to the next task whereas before you know if you were to submit a change request it was a tedious task because you have technical people doing things that's alien to them and they don't want to so the more you enable it or how they work on a daily basis the more chance of success you've got it making it you know making it successful so you miss your browser security obviously the one of the areas that everybody talks about when you go to a club do you feel like your security is better than most of your customers and prospective customers absolutely and you know I haven't been told to say that but yeah I mean I was at the new york stock exchange when we did that implementation you be asked another great customer in switzerland you know all of those things it's you know let's take the emotion out of the decision-making process yes it feels uncomfortable and it's different but that's okay so here's you know the facts the figures take the politics and the decision-making out of the process and if you look at just a features comparison and what we do yeah we absolutely stack up against everybody else and we beat them in so many cases and you know the phenomenal success you see here with the customers you know they've done the kool-aid they see what we do and you know we have everything from federal the government to the financials farmer fda-regulated they're all here you know it's clearly working and we've got more work to do as we know but you know it's a great success story and we're good at what we do let's talk a little bit about i.t governance it's just thrown around its buzzword people always trying to sort of grasp get their arms around it what do you mean by IT governance and how are people using service now is platform to affect IT government it physically you know if you mentioned word governance or order in 18 they run for the hills right there big scary words and typically you'd think people are going to get upset or fired as a result someone's getting someone's going to cap caught lift in the carpet but I think it's more around the controls and the processes and in service now we have that governance process we use our own technology to certify our own data centers and our own people for what we need to do to operate and I think it's more around looking at those operational controls and how do they roll up and there's a couple of customers here who of past HIPAA sucks audience using service now out of the box for those controls as policies and what they need to do and with a you know a single platform it's all tightly integrated the audit team the governance team whoever they may be you want always in the IT operations space who are the practitioners that can really influence this it's a single system record join together I can now know why they're asking this question or why you're my operational processes this way because it rolls up to a bigger thing that basically says if I do X I may expose customer data for the wrong reason my operational process is this way for a clear reason and I can tie the two together whereas if you put an IT guy and a government's person in the room I mean it's chalk and cheese okay they're never going to really get on so the technology really enables that it brings down the silo and the barriers and they kind of move on to solving problems the technology's not in the way I love the love the English idiom idioms bless your cotton socks no all right we have we're almost out of time Chris but I want to give you the last word you you're a practitioner of turned you know technology evangelist you've been through it now a few times on a by side what advice would you give to fellow practitioners that are trying to get their arms around IT service management they're trying to automate they've got this you know we're seeing a pattern developed that this this sort of stovepipe mess what's your main area of advice I think you know think differently and be disruptive right challenge the well the real world operational way of thinking ITIL itsm as many frameworks out there take what works for you and implement what works best for you and then find a platform that allows you to focus on solving the problem not managing the technology we do that for you we do it very well focus on solving the real problems you've got in your environment and the technology is a huge enabler for that and as I said if you can draw it you can make it work flow and then you can automate it and you only manage the failures and the exceptions if your process works ninety-eight percent of the time you have a very small amount of work to do to solve that last two percent and you're focusing on the real issues rather than you know understand the bigger picture Chris Pope you got some serious street cred so I really appreciate you come on the cube and sharing your perspectives and knowledge with our audience keep it right there everybody so first of all thank you for coming out thank you guys I really appreciate it so Fred Lunney is up next I'm gonna have a break and then Fred Lahti who developed the ServiceNow platform back in 2003 I believe started this we're going to go deep with him actually on some new announcements that service now made this week around mobile so keep it right there this is the cube I'm Dave vellante i'm here with jeff rick keep watching everybody we'll be right back after this short break