[Music] hi I'm Peter Burroughs welcome to another cube conversation from our beautiful Palo Alto studios today we're talking with Dan Rogers who's the chief marketing officer of ServiceNow good to say pietà Dan thanks very much for being here so Dan you as a CMO we're gonna spend some time talking about what the CMO does with the CMO doz now at ServiceNow and but give us a little bit of your background who are you where'd you came from how'd you get to where you are sometimes I joke that I was born in the clouds I come from the north of England it does rain there a lot but professionally I spent all my time in cloud companies so Salesforce Amazon Web Services and now of course so is now and what is ServiceNow do give us a little bit of background how is ServiceNow doing where is it going how our customers working with you well I think the way to answer that is by saying every company is undergoing a digital transformation and as they undergo digital transformation they realize that all the great stuff that they have in people's personal lives great user experiences great service experiences they want that at work as well so ServiceNow really brings those great experiences to work we have a platform which is called the now platform now platform basically is a set of services that deliver great user experiences the ability to request things easily help me fix my X helped me get a common answer to a question around say an employee question and then great service experiences so we create great workflow underneath so that all of those activities orchestrated across the organization and then great service intelligence so that over time were predicting things and recommending things just like you have with your consumer services today bringing all of that to the enterprise so let's talk a little bit about the CMO role because ultimately the there's you mention digital transformation and there's been for quite some time predictions made by various folks that you know the CMO is going to spend more money on technology than the IT manager well that clearly hasn't happened but that does not mean that the CMOS role and the marketing function hasn't changed as a consequence of technology how has technology how has a data orientation how has speed and alignment with data and how the organization operates it serves now on others change the CMO job changed marking I think in both a b2c context it's a very rich data environment a lot of that's happening through the web so you have instant data data you can make you know changes on the fly do a/b testing dialing your forms improve your completion rates dialing your conversions the same is also true in B to B and B to B a lot of what marketers are doing is providing the pipeline to the sales team and that has a funnel mindset a discipline around how much is converting at each stage why is it converting what's not converting row the leads going which leads are the most effective and where should we ultimately spend differently to help get those leads into meetings and on to our sales teams so they can execute against the opportunities now it used to be the b2b he was characterized by what Peter Drucker would have called value in exchange that you would sell a product and the product imbued the value of the company and that was up to the customer to figure out how to get value out of it we now seem to be moving to a value in utility model where instead of selling products were increasingly selling outcomes or increasingly it's actually taking the form of services serves now is at the vanguard of that change tell us a little bit about how that notion of value in exchange to value in utility is changing your job in quite frankly changing service now so yeah I'll actually take us right back to the founding of our company in 2004 our company was founded by Fred ludie and it was founded on a simple idea that we were going to make work better for people and what we would do therefore is listen to our customers about the problems that they had and design solutions with them for the to get them to answers so in my world that means that I'm not just going to describe the speeds and feeds of the products in fact I'm going to dial in to the solutions that our customers want to talk to us about and the business outcomes that they need there are seven solutions that we go to market where they'll just briefly tell you a little bit about those the first one is modernize IT Service Management customers are asking us we have a legacy IT service management infrastructure how get help desk from IT help us to modernize that we know we can do better than our antiquated process that's what you started that's where we started thank you and then you know we've migrated in IT to a much richer conversation around help you eliminate service outages how can we predict anomalies before they happen in your IT environment and then I want to run IT like a business I know you're gonna be talking to our CIO later in the series a lot of what modern CIOs are thinking about is looking at all the projects across the companies how can I support those with IT to transform the organization those are our IT conversations we have conversations happening in HR and they want to consumer eyes the employee experience and then customer service how can I improve customer satisfaction by resolving those underlying issues faster in security operations how can I resolve vulnerabilities and incidents faster and finally we open up our our whole platform to allow anyone to build applications that are intelligent and smart take advantage of all those platform capabilities around great user experience those are the seven solutions that would go to market with and our customers care about those outcomes against those seven solutions so increasingly the marketing organization is talking in the language of business value to what extent are our customers doing those seven things what business value of they had have they increased IT productivity by 20% have they resolved those security incidents 45% faster and we're talking in that language and we're helping customers accelerate their time to get to those outcomes increasingly the modern marketer I think is stepping into that role not just get the leads get them to our sales team but really thinking about the whole way through getting those customers to this end outcomes yeah I want to talk to you about that a little bit but let me take a quick Waypoint here that you mentioned earlier the biggest sea world the market has always been familiar with the role the data could play within our organization simply because in most b2c circumstances you have a lot of customers that are doing that value in exchange you know I'm buying dumb a lot of people are buying go but one of the things that's interesting about the b2b world especially as we move to this notion of value in utility this solution the ongoing service provisioning is we don't have a lot of customers with limited engagement we have perhaps fewer customers but with a lot of engagement because now it's at a service level and that creates new forms of data new types of data a much richer set of insights and what customers are doing how are you using that to inform marketing do a better job of serving customers do a better job of service sales do a better job of serving Cheryl yeah and it's a question I love and you know I'll interpret the questions how do we get customer insight how do we make sure that our marketing is customer centric and not generic we have a few feelers for that you talk about a data obviously from a web perspective we have really good fidelity on where customers are going what they're interacting with what demos they're doing what the conversion rates of those are we also have a lot of physical world interactions so my organization runs the EBC it's policy yeah executive briefing center drive so it's probably the executive briefing center we have hundreds of customers joining us we actually survey them and ask them what's top of mind we begin every one of our ABCs for the section called voice of customer where we hear from them what's most important for them as our product teams come and have those discussions they're gleaning from those customers what are they most want to talk about what are they most want to hear about and because all of that data is captured on a platform that she becomes rich and actionable for the rest of my product marketing organization that's a set of customer insights our knowledge event so we have an annual user conference called knowledge this year knowledge 18 will actually have around 18,000 registrants so you know these are become small little intimate a huge huge event but what's very unique about our event is 95% of the sessions are designed by and delivered by customers this isn't a marketing event this is a peer group event of customers teaching customers telling customers what they've learned sharing their experiences so when we do a we do a call for content for knowledge we're really building our agenda based on exactly what the data is telling us what our customers want to hear about what do they want to say again that's really from marketing perspective just such rich ground for us to learn exactly what they care about we have customer feelers of course you know through all of our our activities that we're doing in the field in fact not a single field activity that my team does is without a customer so every time we're getting that rich insight you know to the point which I'd say we are a customer centric marketing organization is there any other way well some would say that there there might be but they're probably gonna get eaten by ServiceNow over the course of the next few years but let me really tie this back because again historically marketers have been asked to get engaged customers generate leads that funnel you know get us that original group that's going to want to talk to us and marketers have sometimes taken some very annoying approaches to make this happen one of the things that our research shows is that increasingly the sustained engagement requires that marketing also has to be a source of value to customers you mentioned the community approach at your big conference and the fact that you're providing content providing information that the customers will find valuable do you subscribe to that notion that marketing should be a source of value to customers in addition to others what do you think yeah absolutely I think if you have this limited mindset that somehow you're getting a lead and leaders victory I think it's game over you talked about community I'll just build on that real quick ServiceNow as a very active community itself online with 150,000 community members my team run the community we literally provide advice to the community that's one of the most joyful things that we can do similarly my relationship with sales isn't you know her over the lead we're working with the sales team to understand how they want to develop those accounts what are the accounts need from them and that really influences my marketing plan so I see us definitely as part of value exchange with customers so we believe pretty strongly also that the marketing function because of this orientation towards outcome because of the you know a services increasingly a services approach an ongoing sense of value and the fact that you have this rich opportunity to capture data has to take a more broader whole lifecycle role in customer engagement that doesn't mean that sales is less important which is I think a mistake that many of maids at OU fewer sales people and I think that sales gets more focused that much more important more of a problem-solving function for customers but talk to me a little bit about this idea of marketing becoming more a part of the entire customer journey and not just that discover and evaluate phase first of all do you agree with me and second of all how's it playing out for your team well I'd say you know one of the amazing things about a subscription business and you know we're in a subscription businesses customers get to vote with their feet every month Venus is a subscription the great news is service now our neural rates are over 97 percent which is you know yeah well in a lot of other businesses they talk about 85 and b2b they talk about 85% being good but 97% is almost be to see like churn numbers there is only one way to get that and that is the entire company needs to be focused on customer success the way we think about how we develop products through our sales team is engaged in their marketing teams engage is around customer success so I think it's almost like if you don't have that hat on and the executive seat you never get to get those numbers so my role half three quarters is customer success ultimately that's what I'm doing and you may start to see a lot more of how we go to market you know really having a lot more of that success mindset I'm looking forward to knowledge 18 I think you'll see a very different orientation from us at that conference you'll see things like success clinics things like office hours and a whole bunch of other best practices that we're going to be sharing with our customers and that helping customers get to value quicker is very much something I care deeply about and that's really a big orientation for my team so you mentioned if they don't have the hat on then it's not going to work that says something about culture and says something about the type of people that you hire and bring in service now is growing very very rapidly give us a couple of key things if we had a group of marketers here and you said the one thing you need in the culture beyond just customer centric but the one thing you need is this and then one thing you need about when you look for people what's the one thing you need in the marketing culture you know it's such a fast-moving space I'd actually say me this combination of innovation and execution execution is clear that means you do have a relationship with a product team your relationship the sales team your relationship with your customers and they have needs and those things need executing on but also because it's such a fast moving environment the nature of the job is changing the nature of the toolset is changing what our customers need which is ultimately driving it is changing very fast you have to have this sense of innovation this idea you know Jeff Bezos of Amazon talks about it this idea of day one so it's really day one for how you do those traditional things in marketing because they're not being done in the same way everyone needs to come with that day one mindset you learn you go and we can execute that so a culture performance and nonetheless is porous and open to change people what kind of people what kind of things are you looking for when when you sit down an interview potential service now marketing employee and of course we have those different functions so there's functional skills sort of harder skills but again I'd probably say the same thing it's that ability to innovate because a lot of what we're doing hasn't been done before or it's not done well and we want to do it better we want to reimagine and reinvent so that idea of dynamism and flexibility and then this underlying execution is can you get it done we want to be an organization that commits to things and gets them done so in the thing that's the combination of those two things and then those functional disciplines of course we've got product marketing we have digital marketers we have some of the you know folks we're qualifying the leads we call those ad hours they'll have a very different functional disciplines and then some of those underlying values I think so you and I are having the same conversation in twenty eight twenty three what is the one thing that you're doing more of in 2023 than you're doing today what is the one thing you're doing less of in 2023 than you're doing today you know I'm going to use the customers the North Star on that as well I think will be even more intimate with our customers in 2023 that's how I'm grounded some organizations grounded that's how my company's grounded I don't think we can go far enough on that they're spending more time with them looking at the data more engaging with sales more to understand what's working what's not working ensuring they get to value that's really as possible being so speed the value time to value and increase the level of value that serves and I was able to provide yeah okay what's one thing you're doing loss of talking to me that's great this is a great question I want to give it to giver the right you know the right mindset you know I think so much is going to change I think the way we go about what we do is going to change fundamentally I think the way we think about events is going to be different I think away we think about meetings is going to be different the way we engage is going to be different it's going to be all driven by that North Star of the customer so I can't even imagine what it's going to look like and that's why it's such an exciting profession it really is more or less how about outbound more or less outbound I think that will look just different I think we'll be doing outbound I think I'll have a different flavor and that's one of the things I love about my job that's why I get up every day because it's all going to be different what we're doing now is entirely different than it was two years ago but it's super exciting so reflecting what you said about the culture that you want the people that you hire you yourself are performing great growth in service now while at the same time being very porous very flexible to change and anticipating expecting it that's it paid off all right Dan Rogers thank you very much for come on on in Dan Rogers service now and his great cube conversation Dan again thanks very much for coming here and we look forward to I'm Peter burns from our Palo Alto studios and we look forward to having another cube conversation with you [Music] you

live from Las Vegas it's the cute covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick I very welcome to service now knowledge this is knowledge 16 know hashtag no 16 we're here in Las Vegas the Mandalay Bay Hotel Jeff feels like our second home with his cube season and conference season this is day one actually of our coverage really day two of the conference it kicked off yesterday with a lot of the technical sessions but the keynotes started today in the General Sessions we heard Frank's luqman laying out the vision of service now yesterday I happen to sit in the financial analyst meeting this is a billion dollar company baster passed a billion dollars last year grew in excess of sixty percent they're on track in my view to do a billion and a half this year service now is laid out of vision by 2020 of it being a four billion dollar company so Jeff we've been covering service now since the early days when they're a relatively small company with large ambitions and they've been executing nearly flawlessly on the vision that they set out and they continue to expand that vision expand the total available market bring out new products bring on acquisitions but the real story of service now is around the customers the core customers would sleep and calls our peeps the the IT folks within the you know the heart of IT bringing service management discipline not only 2i t but throughout the organization the other big vector of of stories at any knowledge conference of course is the founder Fred ludie and his core team the team of innovators we're in Iquitos today I swear Fred ludie was coding on his laptop he loves to code the guy's a programmer by heart but you're seeing things like elegant design we saw the announcement of a of a service now SmartWatch today a wearable device basically an enterprise you know system to predict to be informed to take your favorite KPIs and bring them right to your wrist so Jeff it's kind of more the same just bigger and badder this year they just keep clipping along right just like he said it's an execution game I talked to Chris Pope a little bit in the hallways this morning during breakfast and he said kind of what's the magic and it did it just get stuff done right people can just get their job done using service now and and as you said Frank loves to talk about the IT pros as their peeps but he made an interesting comment in the keynote that there's a lot more IT functioned discipline execution outside of the core I team structure so that obviously both really well for for service now but again we've like I said they've this our fourth year here run into the same customers every year the passion keeps growing and then you know the other thing I think it's interesting looking at the little service providers that are no longer little service providers Cloud Sherpas and fruition partners both now part of accenture and CSC so when you see the big Ian wise here service integrators they don't make a play unless they see a really big opportunity yeah they like to eat from the trough as it was as it were and so the trough is getting larger but I remember Jeff the first service now knowledge we went to knowledge 13 which was here in Vegas the smaller hotels any rate the area and we walked the floor that time and we were sort of asking ourselves well where is Accenture you know where are the big sis and we saw a cloud Sherpa syrup risen from companies like fruition who had a big presence there both of those companies were required Accenture acquired cloud sherpas of CSC acquired fruition the other thing I want to point out for those unit may not be is familiar with service now the company started with this sort of help desk you know mentality really try to automate and improve on help desk Frank's lubin said years ago he said at one of these conferences desk is a four-letter word and he got some booze because people hanging on to their help desk but it started with a relatively sort of legacy attacking a legacy business you know back then Gartner group was talking about how this is you know the the end of that business it's kind of going to go away and you know sloop Minh came in and really was the right guy for the job helped energize you know the vision that was set forth in the early days by Fred ludie but what you've seen consistently is the company has expanded its total available market going from you no problem man management change management help desk etc expanding that out into IT Service Management IT operations management now bringing service management across other parts of the enterprise what service now laid out today in the general session was essentially you had the the first software estate was ERP and that was brought to fore by the likes of Oracle and and of course s AP and then the next greatest state were skipping over some estates were sort of fast forwarding to you know the open systems world but the second greatest date was really that brought on by CRM and and one by Salesforce and what you're seeing service now is positioning is service management across the enterprise for everything in between back office operations and the sales and customer engagement like facilities HR but touching upon sales and marketing and some of the back office stuff so they are laying out a vision of the third greatest state which is service now everything is a service enterprise services service management where I t is the backbone of all of those operations in Jeff we're seeing that I mean I T we've talked for years IT touches every part of the organization but increasingly companies are becoming cloud ified and sassa fide across the enterprise and that's really a tailwind for service now it's the theme we talked about over and over every company has to be an IT company just what services or products to they wrap their IT around so important for a competitive advantage if i go back to abe to the our day at the Aria a couple days with Aria and I rewatched our interview with with Fred our day to interview we did a couple with them and he talks about the story of this platform vision that he had from day one and talking about the to the initial investors they said well was it do well does everything what do you want to do and really you know kind of a classic platform application play were then he you know built the application around a very specific use case and go to market and now you're seeing that vision that he had back then as the platform capabilities expand to do so much more and the other thing I remember from that that interview with him was talking about the copy room all the papers the different color papers in the copy room I need a vacation I need a new laptop I need to do this thing and really enabling everyone to build those little processes that were all encumbered by over and over again using this platform yeah so I remember again going back to the early days we had walked the floor in the early knowledge 13 days and said wow look at all these companies in the ecosystem watch that's the key to this is watching the ecosystem grow and specifically trying to understand which those companies in the ecosystem service now is going to require remember we had asked Fred about acquisitions and do they have to fit in do they have to be already running on the ServiceNow platform and he said well that's kind of interesting and what we've seen now is Andy related answer the question back then but what we seen because you didn't want to show his cards what we've seen is when service now makes an acquisition like they did with with with I tap and some others they brought in service watch with another company they purchased the GRC capability they completely replat form the company the software into service now same UX using the CMDB the the the CMDB using the same user interface everything is the same experience that's it that's huge now I want to dig into that a little bit and see how much how the service now do that so quickly I mean because basically it's taken out a year to replat form these maybe nine months 12 months 14 months but it's not the the nine years that we see with for instance oracle fusion which is sort of everything rewritten in java so it's gonna be really interesting to see that what else Jeff should we be looking for the other piece of that I picked up from Frank in the keynote was really kind of the different engagement models he specifically contrasted CRM versus the service management approach and you know you take care of the problem he keeps going back to the I fallen and I can't get up use case over and over so I'm not that it's kind of funny but but he takes it to the next level within a service management which is to do the analysis and to do the root cause analysis so that you don't have this thing's repeating over and over so it's a very different way to kind of approach customer engagement i look forward to kind of digging a little bit deeper with Frank on that great all right keep right there everybody we got wall-to-wall coverage three days of coverage from knowledge 16 check out well the hashtag is no 16 check out crowd chat / no 16 we've got burnt Lattimore documenting the cube interviews in there keep right the everybody will be right back after this brief word it's always fun to come back to the cube because

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

hi everybody we're back after that break and we're here at the ServiceNow knowledge conference in Las Vegas with the aria hotel i'm here with my co-host and colleague Jeff Frick as you know we've been broadcasting also live from sa p sapphire now in orlando we're also out of google i/o today markers and Hopkins and Kenny Bowen are out there so we get it all covered for you check out SiliconANGLE calm for all the blogs and all the news check out Wikibon org for all the research youtube.com SiliconANGLE youtube.com slash SiliconANGLE for all the videos that we're doing here and we are going to continue to unpack the ServiceNow messaging the marketing messaging and test the alignment with the customers Craig Wishart is here he's the CIO of service stream an Australian company and customer of service now Greg welcome to the cube thank you very much mortals yeah so we've been talking to a number of practitioners this morning about the show about sort of how they're using service now but before we get into that tell us more about service stream and tell us about your role there is a CI L show so service stream is a Australian listed business and we really have three unique business divisions so we have a telecommunications business which specializes in rolling out and managing fiber across the country nationally we have a mobile communications business which specializes in building mobile communications towers in fact this year we'll do around about fifteen hundred of those towers and upgrading to the new LTE standards and we have an energy and water business which in itself is quite diverse but everything from in-home services from solar installations on roofs and hot water service through to read or out 40 million meter reads a year initiator coming with over 400,000 smart meter replacements we have a field force of about 4,000 plus people which makes us one of the largest in the country for field force and of course you know service stream by nature graph through acquisition and one of the challenges that we found well when I first joined 12 months ago was it by default you end up with very different cultures very different platforms very bespoke architectures and that sort of led us down the path in many ways to looking for a platform that could start to consolidate business but start to give us some leverage through commonality of process and also some synergies through the way in which the businesses work together bespoke is a good description of the way that a lot of IT operations their own so you guys are seriously into infrastructure obviously well that's true you know in terms of what we do as a technology team we saw our our objectives is being very closely aligned with the business unit in terms of being able to build commonality and drive costs out you know one of the one of the key premises that we offer to our clients is that we manage your customers customer and we do it very well and we do it on the basis of delivering to the expectations of our clients and you know to do that you really need a platform that can get you from the back of house if you like from the data center right out to parts of Australia which is still going through connectivity issues with telecommunications so we have a very mobile workforce you know if people working from right up the north end to write down into the metros so you were at the the CIO decisions conference that was taking place here i guess the i call it conference but it's like a sub advantage yeah sort of a breakout if you will at this event before we get into sort of your implementation of service now talk a little bit about what was shared at that little side event what kind of themes were struck and you know what was on the minds of the cios that were in that yeah look that's a good question and it was it was firstly it was a terrific event to be a part of and around people who are like-minded in a sense of you know one thing you find when you start talking to people regardless of where you work you've faced the same challenges you know you're under increase in cost pressures to not only take cost out but to deliver value the other challenges you're facing too often are how do you compete very quickly you know the market is moving so quickly and your competitors are moving quickly that often what you're trying to do is not only keep pace but innovate at the same time so innovation was a key theme I think the other thing that came out is you know how do we start to leverage what each of us are doing and how do we start to learn more from one another and I found that quite refreshing because in most instances when you're ten these sorts of conferences people are very guarded and one thing I've really taken out of this one in particular is that people are very open and want to share so you know the three key themes i took out here is you know how to CIOs lead and how do you get business connectiveness second piece is around how do you drive innovation often when you're competing against taking cost out and I think the third thing that you know became quite obvious to is how can we start to work together to leverage the capabilities of this platform which seemed to be developing you know week by week so let's talk about some of those themes I want to start with good leadership yeah what has changed in the last 10 years as far as CIO leadership look that's you know that's something to that is being discussed quite openly in Australia to the role of the CIO and in many ways I think the title itself will change over time but you know I think if we go back 15 20 years you know cos typically evolved from being infrastructure applications people and they grew up with specific knowledge around how to build stuff and you know over the last five years I think what we've seen is a transition of you know the CIA role being very much the person in the business who has accountability for information systems and technologies but really they're there to provide coaching and leadership to our business units on how they can best leverage new technologies you know to increase their profitability drive revenue take costs out but also increasingly how do you manage your workforce it's a very diverse role and I think one of the challenges and I'm talking about this later today my presentation the CI roll roll by default can also lock you into a paradigm that restricts you from being innovative and you know one of the things I'm talking about today is that you know be careful in a sense if you define yourself as a cell role in fact you may define yourself as being out of the business I see the role of the CIO now really being another business executive at the table who really just has accountability for systems and process so that leads me to the next you know piece that you mentioned which is innovation I want to talk about the role of the CIO at innovation jeff's from from Silicon Valley where there's a lot of innovation going on and one of the one of the montreux Silicon Valley right right Jeff is if you're going to fail fail fast you know failure is oftentimes not something that's part of the cios DNA in fact oftentimes they're trying to avoid failure yeah so talk about that dissonance how in your view can the CIO both lead and drive innovation in a climate that is frequently thought of as you know de-risking themselves yeah what you know when we talk about the themes and what's what's obvious and I put into this context you know there's there's three things that have really come up over the last six months which continue to resonate no matter where you are and they are you know how do we solve for mobility how do we solve for you know what is effectively going to be big data and how effectively you know do we solve for what is going to become predominantly these cloud-based services so if I talk about de-risking you know I think I think one of the challenges here is where we run at either end at times we run from right at legislation end which is what can you do and of course in Australia we often face into the context of you know data sovereignty it's always a big issue in terms of when you speak to you know the legal team wears it hosted who's got the data how can we protect the data in the IP right through to I think the role that Sarah plays in terms of you know taking investments and turning them into things that you know make sense for the business I think the challenge around de-risking is often about relationships and you know I think there's a lot of things that you can read about it but at the end of the day the position you take as a chief information officer as a big you know business executive how do we take an investment strategy and how do we translate into something it's going to mean something for the business either in adding value to the share price or taking costs out of the business so that we can do more with the money that we save you know I think by many default you know we are constrained sometimes what legislation but I think often it's just the questions we ask that helps us solve for those problems now of course we the third area want to talk is the collaboration we do a lot of these events and a lot of them are you know at a big boom vendor shops like IBM or HP or EMC and by the very nature of this their heft they're running into partners and there you know the whole cooperation yeah what's the cios attitude on collaboration in terms of I mean though the peer-to-peer thing is very strong you guys culturally very strong with your peers but how do you collaborate with competitors as that hole co-op titian thing hit your your world and talked about it specifically in terms of collaboration within the service now can yeah I think I think we're very much on the start of our service now journey we've we've been going now really for about six months and like most we started with the night esm instance from what I've been able to see we're very well progressed on what we do and obviously we'll talk about that as well but you know we I don't think there's anything that we're doing that hasn't been done elsewhere and I think the challenge is how do you apply that in your own context we've been very open with a lot of our people in terms of you know even some of our competitors are watching what we do and of course we watch what they do at the end of the day I think the measures of success are very simple for our clients and that is deliver the services that we ask you to do deliver them very well the technologies that you use regardless well you know what that's up to you so Craig talk a little bit about mobile and you know you mentioned that you've got 4,000 field guys out there and Australia for those who don't know still doesn't have a road that goes all the way across right i mean there so there's some desolate areas is a bumpy one at one point is there a bumpy one if you have a if you have a range rover hope it's about anyway so talk about you know one the challenges of having this field force and then to how the current trends and mobility are impacting your ability to know that help them do their jobs perhaps a couple things on this one that you know and I'll start at the telecommunications in the public internet level you know we we do run into challenges around the breadth of and the size of our country and we do run into coverage issues but you know if you put that aside where that seems to be growing and some people may be familiar with what the federal government's doing around their national broadband network program which is in our 36 billion dollar program to provide connectiveness around the country that aside you know from our perspective we want to have people in the field we want them working and the way to do that is to provide them with infield devices a lot of our people for so long have been working off paper they literally print paper out they'll take it with them they'll fill it out in some cases they'll roll it over the bonnet of a four-wheel drive in Western Australia they'll mark it up with a texture I'll probably spill some toffee on it at the same time that will then be post packed back into the main office where will render that back into autocad and then we'll figure out six weeks later that actually we really don't understand what you've done and we'll send them back out again it's probably not the best way to do things so you know if I think about what we're doing there very shortly our people will take out a tablet they'll mark it up on the fly will be using surface now to drive the service autumn side of that and as mediately as they submit that will render that in autocad in have an infield collaboration which is just going to take out six weeks of a cycle time just at the front end and you know to reduce 0 error rate by at least eighty percent the second piece which i think is really interested in terms of how we're using the product within the next six months will have nearly 250 million dollars of revenue flowing through service now whilst it's being used for itsm we're standing it up as a business platform with 250 million million dollars in revenue I'd say within a month the target will be half a billion so our revenue base will be flowing through the platform now to give you an example of what we're doing there we will do in home services for one of the utilities companies in Australian will drive about 70 to 80 million dollars worth of revenue through it this year and we are putting all of our service orders in there we're running asset management through the platform serialization of stock integrated into Division Microsoft's and vision persol are set we then take that information and we push that out to a tablet for our Enfield people who accept or reject the job now one great example of where service now so given us power that we didn't have is if you think for every hundred jobs that we do our technicians have to fill out 2,000 pages of a 4 it's a compliance issue that we've had to face into we service now we're driving it from form-based they mark it up on the tablet they then asked the custom to sign it they physically draw the house and mark up where the panels will go on the roof and they submit it for every job we do we take 20 pages of a 4 out and we take out back a house after you had to read that it's a remarkable thing to be able to do I think this year will take out 40,000 pages of a for that need review wow that is amazing i'm having saying all week that to me service now is about scaling your business and it's about delivering business value i try no you just gave two examples for its enabling you to reach means the scale and this i really like this value discussion is that is the value discussion in your mind something that its service now isn't is enabling additional value or is it just enabling you to actually see the value flow or a combination you know one of the things that i really liked about service now when i first saw it meant it's resonated with me since we started the journey is the simplicity of the interface and you know i was just talking to one of one of the service providers downstairs about some reporting and analytics software and i said what do you want to use for as it actually I don't want to use it I want my business execs to use it right because I don't want to be sitting there writing reports i think you know i need to be able to empower my people and my colleagues at the table as well as my board to be able to construct reports with information that makes sense to the problems they're trying to solve for you know and i think when we look at servicenow in terms of the value it derives its the simplicity of the way in which the information could be presented back and you know the information is then providing a framework for taking decisions and more importantly I want a framework from which our clients can see the value that we're pushing out to them we were talking earlier this morning to Fred ludie after his keynote and the internet of things came up he indicated that is one of the interesting trends yes he's tracking and then he sort of tied it back into service now as part of the vision they basically he wants to touch virtually you know everybody out there and you know presumably potentially every device out there yeah you guys are in this sort of Internet of Things business of instrumenting you know the the infrastructure energy infrastructure can you talk about that a little bit and talk about the whole you know this big data theme what this all means to your company I think you know the big big diet is interesting because I don't think it's really been defined I think it's still it very much at a concept stage so people talk about it in terms of what do we know about what we know they talk very broadly about social networks and interactions and information you can extract but perhaps I can give you a really good example of where we're going to take the platform next that will play into the big data piece you know over the next six months we will stand up a self-management workforce interface for our people so if you can imagine this which doesn't exist today I think we're really going to be first in the southern hemisphere to stand this up people will be able to register with our business putting in place in fact their skills their capabilities the insurances they hold the compliance as they hold the type of work that they want to do so for example I only want to work on a thursday sat down sunday and by the way I only work on single story houses I don't do doubles by the way here's my contracting model and the subset of contractors that I have and this is the rate that I'll work for now today we have a very heavy process-driven hey char you know I've got to talk to everyone and then I'll employ you and that process just takes too long we'll get to self managing of not only the registration cycle but also how I self-managed my profile now once i get to there think our workforce reach will move from 4,000 to 20,000 or 30,000 people will register with our business to do work for us that we can then go out and capture so you'll be able to essentially funnel down those candidates right so you didn't add so then you talk about Big Data right and you say so now that I know who you are what else do I know about you in the public internet world and I can start to look at what people say about you on facebook so i can say ok you're a plumber terrific we need that sort of skill and capability what else do you know out there and how do you represent yourself out there because if i'm going to put you out there with one of our clients customers i need to know that you're going to represent us the way that i want you to be represented how about all this how about all the data that's going to come up with smart meters how do you envision using that that's the bets a great question when you're going to this year do somewhere around about 400,000 smart meter replacements and you know those sorts of jobs funny enough they take about twenty eight minutes each they're a very quick job the data that comes back off the smart meter obviously goes back into the utility providers but one thing that the utility providers in Australia doing very now is that they have what's called an in-home display device you put that device on your wall I don't know if you've got it in the US but you put it on your wall and you can look at it you know every minute and tells you how much energy you're consuming in your house and you can start to take decisions around the way in which you use your appliances but you know if you look at us we are very much the intermediary there to get that data to the house and back to the utility company and and for us of course service now will then form the backbone of the asset management cycle so we now know where that asset is we know when that s it needs to be treated and then we can proactively go back and help these people manage their devices both at a consumer and at the business end ya think you're a little bit of head up from New England we just finally get rid of our windmills yeah I know Austin you know the folks down at austin energy of doing some cool stuff like that yeah i think you know generally you're a little bit ahead of the companies now you're actually implementing those today is absolutely so we are doing the ship packing dispatch of the in-home devices today in australia and then we're also been doing the smart meter replacement for two or three years now we've got a large cycle to come so it appears that service now has great potential of the i likened to a tick it's not the best analogy sort of embedded into the organization yeah and then you know it's like a ticket of virus but but not really I mean you know it's funny because you talk about you know Salesforce and that's kind of how Salesforce happens right here by two licenses and then three seasons and five seats and then you got a million seats it seems like service now actually doesn't take that that sort of approach but nonetheless this whole not idea of a platform of the ability to develop other applications seems to be something that your organization could take advantage of our time where do you see that going I think from my perspective is and other things that we need to get right you know the first thing is we've got to be able to capture a workforce so you know really we need a workforce of people with skills and capabilities that we can leverage back into the market we want our clients to see the value in which we hole I think the second thing for us very much is that we have to be able to move information around very quickly and we need to capture the information in terms of the work that we perform push that information out get the information back and then pass that back to our clients and of course like any business we need to be run a very effective billing cycle so to give an example again how service now is helping us we've built in what's called an RCT I process which effectively is just a taxi invoicing so when I go out and do a job once I close that job in service now that kicks a process that starts the billing cycle so I will immediately know that I've just been paid for that job you know and we run some assumptions around the quality and the work that you've done so that part is also next steps for us in terms of just maturing it I think the third piece which is probably one of the challenges of I think we're all going to face in tosa 6 to 12 months is so we've got all this data now what do we do with it you know do we do we understand the information that we've got and you know one of the things that I really like about the platform that will start to work on more is how can you extract the data and such you know such a format if you like for our business leaders they can start to take decisions I really think that the growth of the platform is not going to come from my team I think I'm going to be surpassed by my business leaders and executives are going to ask me to do more and I think they're going to ask me to do more in the field and the space of mobility and they're going to ask me to do more and how can they start to interpret the data they've got to drive business performance yeah in the example you gave it so this is a great example of instrumenting your business and that seems to be where it's headed yeah taking out costs in efficiencies and dry new revenue opportunities yeah I'll go everything alright great so Craig thanks very much for for coming to thank you thank you John says we talked a little bit about Big Data go to Wikibon 02 / big data you'll get all the free research that we've done we've got a new infographic out just today that actually Forbes did on our data so that's kind of cool check out the blog of Craig Bashar thanks very much for coming on this is the cube right back after this work

okay we're back this is Dave vellante Wikibon organ this is the cube where we go out to the events we extract the signal from the noise we bring you the best guests that we can find we like to call them Tech athletes I'm here with my co-host Jeff Frick Doug Leone is here he's a partner at Sequoia Capital very well-known VC on the board of service now Doug welcome to the cube >> thank you so today here >> here you know a lot of times venture >> it's great to have you capitalists they'll get in they'll help see the company's help grow the company's go to go to an IPO successful IPO and kind of go on to the next one so you're here and you're seeing the growth of this company the meteoric rise and your see this user conference you must be delighted to see the the degree the enthusiasm of the user base it's very exciting >> it's very exciting to be here and see close to 4,000 people being here and hearing some other feedback from the customers terrific >> so how is it that that they've been able to keep you interested in in this journey and you know you're still here you're helping you know grow the company >> the short answer is that the job is not well I think done yet we we are in the early innings if one thinks about IT service management we're well on our way but one thing we learned from the conference is that customers are finding many use cases for the software and the software is spreading in IT, in HR in many other areas so I actually think we're in the early innings and so I think there's a great deal of opportunities for the company and I would like to very much try to help in garner as much market share in that opportunity as we can >> been around the technology industry for >> yeah you've a while why is it if you feel that I t is now ready to change >> well i think it's-- ready to change for the simple reason that the world has changed if you think of IT maybe four or five years ago essentially what the role of IT was a defensive role to protect the enterprise and the employees and the technology were enclosed in  four walls and a little bit on the tax side where no was the first answer and yes was the other answer and they work mainly in infrastructure I think our that is the plumbing well suddenly the the role of the CIO is completely changed the defensive part of the house has become much more challenging that technology is out of the building and the employees are out of the building so that requires a lot more skill set and it's way more exciting and the plumbing side of the house is completely change where the CIO is no longer the plumber is a business partner so his role has been elevated within the corporation and I think it's the most exciting time to be a CIO in a history of CEOs so I think that the future is very bright for this market segment lastly for the very first time the IT function touches every employee in a company and so that there's a lot to be done for every employee >> we talk a lot on the cube about the whole hyperscale trend and people I colleague John first is if you want to know what's going to happen in the enterprise five years from now go look at what's happening at you know Google and Facebook and Amazon and you remember after the calm crash and Nick Carr wrote his famous book does IT matter everybody just pulled back like you said got defensive but the hyperscale crowd showed us that technology actually can be used to create competitive advantage nonetheless a lot of traditional IT has continued to be defensive do you think that platforms like ServiceNow can actually change that mindset and bring IT back to being a competitive advantage and also importantly catalyze increased spending within IT >> would take it one step further I think  well I actually that companies like service now offer a product that are extremely necessary for IT to change I don't think it can be done with our ServiceNow for the very first time we have employees that can create applications on the fly that can create application many applications that talk to one another in a single type of a data model therefore the ERP for IT and instead of the end uses having to wait weeks months for any changes that can be done very quickly very overnight by a user so I think having learned a little bit from amazon and from Google in the expectations of the end user within a corporation's a company like ServiceNow now offers a solution where companies can make those kinds of changes and build those kinds of systems very very quickly >> so Doug I wonder if you could talk from step back from kind of a VC perspective where we saw a few years back you know tremendous investment and valuation creation in Facebook's and and Google of course and a lot of consumer facing buzz Zynga and this and that and now you know it seems to kind of shift it back to the enterprise side but I think what's what's interesting is how the consumerization and those applications both in infrastructure as well as user experience seem to really now be influencing where the enterprise side of the house is going you speak this >> sure please keep in mind that the business of investing in these small companies is a business of latency if you invest in one year products on the market for two years later and consumer adoption is three or four years later and unfortunately the venture industry tends to run with momentum investing so 50,000 venture guys do consumer 50,000 venture guys do infrastructure and IT I think the good investors have seen some of these trends just begin to evolve four or five years ago and we you have to be quite consistent and be true to your vision if you start coming in to companies in infrastructure right now one could argue that you're investing at a local maximum maybe four or five years ago but unfortunately in the investment industry is momentum driven industry for most investors and you know the thing that happens with momentum you're always a little late i'm paying the highest price and then the moment that you get there that you see a peak so i think the trick is to have careful market maps have a clear vision and then have dumbo like ears available to listen to guys like Fred Luddy so when you run across them and they have a crystal-clear vision of the future you're ready to jump on him for the simple reason you've thought I had and maybe it was one of your veins of your market maps >> What was it  when you first talked to Fred that really struck to you what was the vision that resonated >> I think two or three things one he was crystal clear in what he wanted to do and the great founders are crystal clear because they are great thinkers they spend all the time thinking and therefore when you spend a lot of time thinking then what you can do is articulate in very few words second Fred knew exactly as the founder in very few words of the company what is strengths were and what his strengths were not or his weaknesses were and he asked some of his trusted friends investors and colleague to help them find people to shore up the other side and third he just told it like it is no surprises as a matter of fact for every board meeting we went to  for the first year and a half the only surprises we got was surprised on the upside and I will tell you that never happens >> Doug  you have said that the the the next big thing in enterprise IT really doesn't exist you're telling us now your philosophy is somewhat non contrarian most VCS like you said are out chasing a trend they're trying to focus on momentum so so talk about that a little bit if there is no next big thing in IT well how do you decide what to invest in you said you have these market maps talk a little bit about that philosophy so I I think what I really said is that there's no way we know what the next big thing is as a matter of fact if I could articulate what the next big thing is i'll tell you it is not the next big thing as i said earlier in a presentation the day before we met Fred ludie if you had asked me that question I would not have told you IT Service Management is the next big thing it took Fred to come in and explain to us why that was going to be a market opportunity and we jumped on it so if we make ten investments four or five fits some kind of market map it's an extension of the world we know mobile is going to penetrate I can tell you the real exciting investments are the ones where no one's paying attention and someone like Fred lady can see the future so there is no so yes there's going to be next big thing is going to be wearable computing is going to be Google glass who the heck knows but there's going to be a founder an entrepreneur that's going to explain to us here's an application for google so you haven't thought of that's going to make it very clear why we want to chase that and not just wearing a pair of glasses marc andreessen was on CNBC yesterday talking about the perils of public companies and and and basically well it was somewhat self-serving I tended to agree with a lot of what are you saying i mean the barriers for a public company are now so high but now here you are with with service now what's that experience been like taking the company public i guess if you're always beating on the upside that helps but you know there's eventually going to be some bumps in the road so what's your you know opinion on the whole public market you know so what's your stance on that well the position i have is that it's better to stay private because that you can do a lot more so there's only two or three reasons to go public one is a branding event your competitors will say oh it's a small private company they're running out of cash and so on sensing your financials are not public some customers may tend to believe it second is to finance a company although one thing I'd argue is that if you've got a great investment with lots of money whether your private or public and third is to provide some liquidity for employees unfortunately the liquidity for them is not something that happens overnight you know one day you go public the next day is not the david you sell all your shares and so it really comes down to a branding event and our position is keep companies private until they get very strong practice for a year or so done to what it's like to be public have your financial house in order then go public and always start with an o first and move the way towards a yes because the IPO is simply a day in the life of the company as you're trying to build a great business it's not the other way where you go public let's all go public for the heck of it so start with an old justified chuoi yes your life was change and you better have control over your forecast your financial systems and so on prior to being published yeah so service now obviously New York Stock Exchange selling to the global 2000 the biggest companies that had to help from a branding standpoint it helped a lot because old the fight in the business or in the market that was spread by our competitors we're not financially viable well I think the whole world sees that we are way more than financially viable all that junk that a local salesman is going to say against another local salesman in the heat of sale situations is completely out of the market because now what you're dealing was with facts and we knew that our fax way better than our competitors facts well there's so many insularity benefits to it wasn't the motivation for going public but you've you know prior to going public cash flow was king and you had to you know invoice a certain way and now you've got you know hundreds of millions of dollars in the balance sheet and and so you're able to it gives you greater financial flexibility as well yeah we have cash flows as a private company and you know and as a public company it's not that if you have a lot of cash that you can spend it for the heck of it you have to justify model why doing so is the the right thing cash cash is always available if you have a terrific company there's people that are willing to throw cash in bucketfuls of you so it's not cash um we talked it was interesting to hear Frank today talking about Facebook he was my second topic just definitely the first major IPO and technology right after Facebook he called it the face plant IPO tongue-in-cheek but then of course you had work day as well and you guys seem to be more work day like you know kind of similar transformation even though you're going to IT is that a fair comparison yes I I think it's a fair comparison is that it's too fabulous SAS companies you know about six months ago if I act if I'd ask someone what's the grade the second greatest company in the SAS marketplace nobody could name it Salesforce nobody new number two now people know its sales force its work day and it's service now it's a fair comparison I think that both companies have a very long term market opportunities and I think both companies have standalone possibility have the possibilities of being large and standalone companies for many years to come so Sequoia obviously great firm you know one of the leading venture capital firms in the in the west coast in the win the world what's that what sets Sequoia apart we've been in business for 40 years and we've been on top of our game for 40 years or on top of the business I hate calling it a game we tend to hot sports analogies here that's okay no there's dangerous with sports analogies because the moment I mentioned team and a sports team there's only room for five people and a basketball team was starts and that's the koya if you've got ten people were skillful we have room for all 10 of them so I'm always a bit leery of the sports analogy but but it's the culture it the culture of people that came from humble beginnings who have a deep-rooted need to win we have good business instincts who are willing to learn and we're willing to be business partners and that's a key set of words business partners to founders to help them build a great business over the very long term you've spent some time in business development and sales over the years how has sales or has sales changed over that time frame some things have some things haven't I remember 15 years ago 20 years ago wait you could not get to what we call the SMB the small businesses because the cost of sales was too expensive now due to telesales and the internet that you can get there but there are some things that have not changed if you've got a sales force you they should be very well paid they should not have a high base they should be able to make a ton of money sales leadership you come from a former salesperson so some things have change and some things are deeply rooted in the DNA of a salesperson and may never change I took the only we're out of time but I want one last question is we're observers of service now outside observers what should we be watching for what are the things that you would ask us to pay attention to what watch how deeply ingrained throughout the many departments of a company the ServiceNow software becomes not just for IT Service Management but for a variety of applications written by employees of that company for the benefit of that company all right Chuck thank you very much really exciting to have you on the cube great job congratulations let you said you're not done yet so good luck when you're your future journey is really a thank-you a measure thank you thank you very much all righty buddy I'll be right there we will be back with our next guest this is service nows knowledge conference i'm dave vellante with Jeff Rick this is the cube we'll be right back after this short break

[Music] [Music] okay we're back after that nice break here from knowledge we're here in Las Vegas at the Aria hotel this is service now's big customer conference about 4,000 folks here mostly customers most of the content at this event comes from customers its practitioners talking to practitioners which is quite rare actually at these conferences I'm Dave Volante everybody thanks for watching with wiki Bond org I'm here with my co-host Jeff Frick this is Silicon angles the cube we go to these events we extract the signal from the noise we love to bring you tech athletes and Fred ludie is here he is a tech athlete he's the founder of ServiceNow he started this platform around 2003 Fred welcome to the cube thank you very much so we really want to hear the story you know but we've been asked to sort of hold that off because we got another segment with you tomorrow but I just I have to ask you I mean seeing how this conference and ServiceNow as an organization has grown you just must be so thrilled in particular with the customer enthusiasm <Fred>  you know fundamentally I've got a personality flaw and I call it a kindergarten mentality I want to see my art on their refrigerator and the only way you can do that is by making somebody happy and so to see these people here with the excitement the enthusiasm and the smiles on their faces really is satisfying that kindergarten mentality cakes oh good stuff we were talking about that earlier Jeff had not seen the cakes before and was was quite amazed today no I think that's an industry-first actually good well be yeah announcements today you know that's if so you guys had some you're gonna transform an organization you got to have mobile I mean the whole world to go on mobile five billion devices and and growing what you guys announced today <Fred> well we announced the ability to run all of our applications on the iPad and you know I think people's reasonable expectations these days are that they should be able to manage anything anywhere anytime using the device that they currently have now I I like to think of an iPad as something that you use when you're pretending to be attending a meeting or when you're pretending to be watching TV with your family and when you are pretending to do that it'd be nice if very efficiently and very effectively you could manage whatever you needed to manage to get your job done and so today what we've announced is the ability to run everything that ServiceNow has on that iPad  <Dave> yeah I mean it seems to mobile is basically a fundamental delivery model and maybe even the main delivery model going forward wouldn't it be I <Fred> I think it will be a main delivery model and it's a it's a user interface that that requires complete rethinking about how you're going to do things you know for the longest time we we looked at screens with 24 by 80s you know these character screens and then we got big pixel monitors and then we got bigger pixeled monitors and we got very accurate Mouse's and everything got small and got hovers you've got you know this massive amount of data and now the form factor is completely shrunk and you're looking at this as my major input device so how am I going to get you know everything I used to do with a mouse where I'm hovering over things to see what they do or I'm touching you know 16 by 16 pixels which you by the way you can't hit with your fingernail how am I going to get all of that stuff how am I gonna be able to work with all that stuff using only my thumb or thumbs so how are you specifically taking advantage of that smaller form factor and you know the feature sets that you see in things like iPad <Fred> well I think it's a matter of rethinking so we're trying to get the user to be to be able to accomplish their task by doing considerably less work and one of the things that our system is actually very comprehensive it's very big and we create in the browser and our first user interface it was really created in 2005 we treat all the elements of the system equally so now what we've done in the in the mobile which I think is very unique it does MySpace I mean Facebook doesn't have this Lincoln doesn't have this we know exactly what you do as a user and we remember those things that you do edit of Li and so we're able to create shortcuts or we're able to remember the system is able to remember what you do and then very quickly present you back with those tasks which are repetitive so we're trying to simultaneously compress the information and reduce the interactions yeah so that doesn't sound trivial it sounds like there's some secret sauce behind that talk about that a little bit <Fred> well it's not trivial and it's a there there is secret sauce but it does it just requires you to rethink and for me you know if you if you read the jobs biography there were a couple of interesting things in their number one when he met dr. land they had both agreed that everything that had been invented was going to be invented had already been invented right the other thing that they that they pretty much agreed on are what job said and a quote that I've used for years is that great artists copy good artists copy and great artists steal and I've been a thief all my life I just I'm gonna admit it right here it's not on camera live and so what we do is we go ahead and take a look at who's doing this great Amazon is doing it great Zappos is doing it great asan is doing it great you know we and we capture those ideas and then what they meant by great artists steal is that you take them and you reformulate them for the task that you're trying to solve for the problem that you're trying to solve and the rich the artist won't they probably the original artist probably won't even recognize that as their work but yet they're they're deeply inspirational to us an artist so do you fancy yourself as a bit of  <Fred> well I think it's interesting  down down the road and you know to I was watching the Bellagio fountains create something like that if you think about the physics and the art that had to go into that to create that beautiful masterpiece you know it's not just a painting right think about the physics that goes on to shoot something seven its water seven hundred feet in the air and then cut it off instantly and have that all choreographed I mean it's phenomenal amount of engineering but it took also a phenomenal amount of art just to make that interesting so that we were we actually stood there in rapt amazement of you know look how all this is choreographed so yes I do in fact I don't think I take exception to the term engineering software engineering I don't think we haven't progressed to the point where this is an engineering this is this is an art this is a craft you know it's something that people practice and we try to get better at it and better at it and better at it but I don't think it's anywhere near an engineering discipline <Jeff> yeah the other interesting from the jobs book that I never really got until I read the book was like the iPod shuffle because when I first saw the iPod shuffle and you can't do anything you can't manage your playlists on it you all you can do is change songs I don't get it and then in reading the book as you just said you know what is what is it you're trying to accomplish with that form factor right and don't just automatically try to replicate what you can do a one form factor to another form factor but really rethink what's that application and it sounds like you're kind of taking advantage of that opportunity as you take the app to the mobile space into the iPad specifically to rethink what is the best use case for that platform you'll see tomorrow the iPad was really  <Fred> that's right and as as the inspirational first step that we're taking toward a totally mobile app and just like the Apple evolution of building all of this note wonderful new capabilities into iOS and then bringing them back into OS X we're going to be doing the same thing so you'll see tomorrow on stage not only in an iPad app but you will see a native iOS app running and you'll see that it does even more things than the iPad app does and much faster it's a wonderful user experience and those those notions will be also coming back into the browser etc the same way that apples been bringing a lot of the capabilities of iOS back onto OS X <Dave> I was talking to an IT practitioner last month at a large grocer and I asked him what's your what's your biggest challenge what excites you the most and he said the same thing he said both of X what's my biggest challenge is embracing all this pressure from my users for mobile and that's what excites me the most because I have a mobile addict I got in it pulls out all those devices so how do you see this announcement within your user base changing you know the lives of IT  prose.    <Fred> well it'll you know technology since the dawn of time has been used really for two things it's been it's been used to streamline make make tasks more efficient and more streamlined and it's been used to create business differentiators and so our our product really is about process and moving process through an organization and so we want to streamline that as much as possible so if I can we do things like change management change management has multiple levels of approval if I can get it to the point where a manager can pull his phone out of his pocket and do five approvals between meetings he's become significantly more efficient right the changes are going to be done in a more timely fashion and the bottom line improves it's as simple as that <Dave> yeah it's interesting we were those of you watching no we were earlier the today broadcasting from sa P sapphire event and if you go to sapphire are you here to to get huge doses of two things one is Hana of course which is there in memory database but the other is mobile he's all you hear and it's interesting to hear you guys talk about the ERP of IT and your si PE they know the poster child for ERP and all their customers are going to mobile whether it's retail manufacturing you know across the supply chain and so it sounds like you've got sort of similar mentality but more focused obviously with it within IT but of course now you're also reaching beyond IT do you see you're a mobile app a push going beyond the IT community <Fred> yeah absolutely you know our underlying all of our applications we have a platform that say it's a forms based workflow platform that's really purpose-built for something that we would characterize as a service service relationship management so pretty much any request response fulfillment type workflow can be handled by our platform and what our customers have done over the years is create different applications that help them streamline that workflow typically that workflow is handled by by people creating a spreadsheet emailing it to somebody else having a TA back perhaps they built a Lotus Notes app but yes everything that that that or I will say that our platform usage has been expanded by our customers sometimes beyond our wildest dreams and and we love it so you talked about you know some of the greatest artists we stole rights of and so now you guys put up this platform I've said a number of times today it's not trivial to it to actually get a CMDB working in the way that you wanted to get it to work so now you've had this platform out for quite some time your successes started to you know you get a lot of press people are starting to see it do you worry sometimes that people gonna say okay I can do that too I'm gonna I'm gonna you know rip it off what gives you confidence that you can stay ahead of those those thieves out there <Fred> well I have great confidence in that you know we have a very broad base of applications that are very deep in functionality but if that's really something that you want to happen yeah because you want some young people with fresh new ideas to try to unseat you because they will come at the come at this from a completely different perspective and a completely different angle and they will do things that you never thought of and so the race is then on are they going to become more relevant than me or am I going to be inspired by their ideas incorporate them into our platform and stay ahead of them see welcome that all right absolutely welcome back yeah we we wouldn't be where we are today if Edison and Bell weren't weren't the jobs and gates of their time I mean they had just and I think jobs and gates as well right they had this great rivalry that really caused technology to move ahead a lot faster than when it was just I be am selling mainframes and so you need those rivalries you need that you need that competition you know I'm I'm watching these young guys from asana it's a great little platform for for tasking and you know they came out of Facebook they have a very Facebook mentality and they have phenomenal ideas and believe me guys from asana I'm watching you those are just that's where great ideas come from >> <Dave> Wow we always like to say we love sports analogies here in the cube and Jeff your kids are into sports well as our mind you always want to see and play that more competitive you know environment it sounds like Fred you have the same philosophy yes very much so yeah excellent all right Fred well listen we really appreciate you coming by now you come back Fred's gonna be back again tomorrow we're gonna go through the story of service now that's why we really didn't touch up on it and in any kind of detail today but to it but but but Fred actually started the company we give him a little preview Fred so you started the company really not to go solve an IT service management problem right you came up with this sort of idea this platform and and then you you that was really the first application that you developed right up a step in for that oh great you see give us a little tidbit we're gonna back >> every day I wake up that's all I really >><Fred> I've been a programmer now for 40 years want to do why do I program because I want somebody to take a look at the technology that I build and say hey that's pretty helpful I like that I can use they're gonna put that in my fridge fridge so the real strategy behind the company was to build some software that somebody wanted that hopefully they would pay me so I could build more software that was the entire strategy and so you know on one hand I love technology and on the other hand it really irritates me when it makes me feel stupid or it makes other people feel stupid so what I wanted to do was to create an enterprise platform that people could use and they would feel empowered they could walk up and use it like they'd walk up and use an ATM like they'd walk up and buy something from Amazon etc so a completely you know consumer eyes thought process and then that was the thought process really in O 3 and no 4 and then what we do really figured out was that a platform is a very hard sale you know it's tough to convince somebody that they should take this it'd be like selling you an Intel processor and telling you can do anything you want right I want to solve a business problem and so we decided to go after the ITSM space first it was a space that was very underserved very lucrative and and growing significantly <Dave> amazing so so join us tomorrow we're gonna Fred back on and we're going to here this story the founding story of ServiceNow and how we got to where we are today so Fred thanks very much for coming on and sharing the news and I'm gonna change it all by tomorrow good all right so so keep it right there I will be up next we've got Douglas Leone coming on which is a partner at Sequoia Capital and and and one of the better-known DC's out in the valley so so keep it right there will be back with Doug just in a minute this is ServiceNow this is the cube this is 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