live from Las Vegas it's the cute covering knowledge 16 brought to you by service now here your host dave vellante and Jeff Frick we're back this is knowledge 16 this is the cube we go out to the events we extract the signal from the noise Matthias egg allah hafez here he's the program director at siemens AG worldwide conglomerate a US welcome to the cube thank you for inviting me star of the keynote this morning here we had that little snippet and but again you know welcome tell us what you do it siemens exactly so let me start i joined siemens in the crazy ebusiness world in two thousand but the journey i'm on currently is started in 2002 when we had the easy question of how many money is spending siemens on IT and this is an easy question but out in those days it was not to answer so we created a lot of transparency what is seaman spending in IT and we keep on driving that transparency based on the transparency we initiated different measure one was that we are focusing on service management in the infrastructure area for example in application we did a lot of consolidation and then we did several steps in the optimization based on the transparency we made we made some outsourcing deals we did a global IT organization and we managed our providers now since 12 years in service management but we thought what is the next step what is the big shot that is coming ahead of us and then we thought this is about service integration getting rid of the silos like network application data and the voice and having really an integration layer about the different topics as well as ensuring that we have end-to-end responsibility from the customer side and that was the challenge of answering that question was just so many stovepipes and so many systems and so many different systems of record and and is service now that integration layer is that exactly right so service now is our single service integration platform and it spans the word from the demand to the supply side demand of course our Siemens internal employees they were confronted in the old days with several portals my favorite example is always ordering an iPhone in Siemens was quite a difficult task you had to order in one part of the hardware in the other one the SIM card and in the third the messaging service now now we have the one-stop shop portal called my IT in Siemens and there we have a bundle where the customer has not to know which portal which provider we have our portal and the user can just concentrate what he needs and in that portal he can order and manage his IT and products as well as place incident so that's the demand side and then for the IT organization as you said we had a su of products and tools and processes and now with service management we have implemented a typical incident problem change service request config demand contract management's all the nice IT service management processes and rolled that out on a global scale so we have now one process one organization able to get the full transparency and the knowledge where is the status of IT and what is the head state is this so leading up to 2000 y2k we spend spend spend spend spend and then after y2k was a cut cut cut cut then how fast forward you've got visibility on the spend transparency what's the climate like Frank showed a chart today cost you know coming down but people are investing in IT because it's such an important part of the business are you able now to have much better line of sight on how those investments are producing for the business and has that affected your strategy totally and of course to a certain degree we have to go that path but we were able to cut the costs dramatically because we could shut down existing tool sets we could be faster in deploying new services so before we had the service now we had basically 15 tool sets that we had to an able to roll out the global service to Europe North America Latin and Asia 15 tools that now we have one that is of course dramatically faster in the deployment time in the time to customer in just enabling one tools that instead of 50 and you retired those other two sets or absolutely and people were screaming and kicking or was it absolutely they were all complaining about the tools but as soon as you tell them hey we are going shut down those tools they said hey that's the best we ever had and don't take my tool exactly but convincing them is quite easy with the ServiceNow product because it is from a usability standpoint modern integrated so you you catch that can catch them easily that they really can shut down the tools we even helped helped our providers also to shut down tools because they have basically the same environment they have not won cmdb one tool that they also have a fragmented environment and that's why we told all our providers in saying you can either work directly in our two or you have two connected to our tool but it's no longer that you have your own ecosystem so we have really generated an ecosystem from the employee that can order something in the mighty porter then it's going through our IT service management processes directly to our providers fully automated and that's where the providers also had to buy in in saying yeah we also see the benefits of consolidating our to landscape of getting better quality in our cmdb that that is the win-win situation what they don't like currently is that we have a much more transparency on how they perform now we don't have to wait until months end until we get a nice paper of green amber something we have now in our system real-time data anytime now we can really much more efficiently manage our provider can really dig into all the details that are available in our tools that and that's of course a big advantage but unfortunately provider has to get used to that that the customer is telling them how they provide it's a little bit a game changer it was that digit ID back to else la's or just new knowledge new information that you just didn't have before to help you manage that relationship now I mean of course SLA is an important topic but the SLA on a monthly basis speak one language but the experience on a daily basis tells another story so when we got the SAS on a month's end you always get an average ok level but if you then dig down into this as a in that country for this customer you saw some issues but that is now available in our ServiceNow instance and this is of course a great opportunity for us to manage the results of the providers and of course also as we have now our own tool set our own service integration architecture we can black in and out more easily the provider they don't like that as well but that is the advantage because I don't see and that is also a market trend that we get away from the 10 years 15 year outsourcing contracts this will be duration times of one year to year more cloud-based and to be really that or to support that velocity and speed that we can integrate much more easily the providers we have to have our own framework we have to have our own interfaces to the providers to really ensure we can plug in and out very easily one of the new acronyms that we are hearing at knowledge this year's asylum service integration and management it's been described as sort of son of ITIL i tilted Otto what is from your perspective matthias service i am so for me the big difference is i mean we we when we start with I to I think I too was a great achievement in defining the processes get a better maturity on incident problem and change and how this is done and also to generate the same verdict and so that you get a better understanding between the providers and the customers but what we missed in I tell is the integration so that we really if there is an incident and the we we allocate this incident to a provider and he doesn't feel responsible for it then we can transfer this incident to the next provider and hopefully he's then responsible and in charge so really the integration layer is for us very important because the market rent the competition in the different silos like end-user computing data and the application is pretty high so the value add for the customer is for me really in the integration layer getting the transparency across all your providers and of course the customers can you talk more about sort of how that is helped your your business and your providers business for example for the business I mean everybody talks about cloud services and all is fancy about cloud but to really manage cloud services is not that easy because what happened in in the in the old days the Siemens employs many they are cloud services with the credit card meaning if they wanted to have a server they look to Amazon or any other provider gave in the credit card and then this server was out of the IT well but now with the platform we have ensured that we can manage all the cloud services not only the ordering is done by our my IT porter we are getting also the reports not on a monthly basis but really on daily basis what is the usage of the cloud services and then we can either apps care downscale or even decommission those servers that are no longer needed because if they are managed by a credit card just we could to manage and that's why it was a key criteria for this platform to also managed cloud services and do you have a module for people to spin up just little dev instances of Amazon so you've actually brought shadow I tee underneath the ServiceNow platform absolutely and we have to expand that so we are at the beginning of that journey but as cloud is picking up and Siemens is also more addicted to cloud services we made sure that we have two examples of providers that are really working with that platform and that we can manage the whole life cycle of a cloud service so how would you describe sort of your strategy with respect to service now we're hearing a lot about obviously you know started in IT Service Management we're hearing a lot about other parts of the organization where are you guys in that whole journey I mean I could also start with talking about defenses staff outside of IT yeah but I think two topics are really important one is there are still a lot of IT service management processes within Siemens we have to shut down that means migration of existing tool sets is still a key activity for us because then we can fully leverage our investment we made into our ServiceNow platform in bringing in additional tools so this is one key component that we have to follow the second one is as we have a high degree of automation we really have to make sure that the system is mature for example we are exchanging data with our own application provider application for incident problem and change 13 million data sets per month that's quite a big number and if that data is not right if we have mixed up data the whole chain breaks the whole automation doesn't work so we spend also a lot of effort in hardening the system spending a lot of time in cleaning up the data that we are really sure we can also achieve the high degree of automation because it's always nice saying high degree of automation digitalization but getting there is an awful work because this is painful getting the right data cleaning the data and having the right data and as you do one then you just find your next point of failure right as you optimize the one then you move it it's a classic production line kind of band and that's why i say migration maturing the the system is one key then the third topic is of course we will bring in more providers more services more processes we we just downloaded from the ServiceNow App Store an application called Moby cod to manage our telecom expense management that we have also they are more transparency over the world and then of course we are in discussions to expand that platform also to facility management or HR but this will take some time because we still have in the HR facility area let's say Best of Breed applications and then it's hard to compete against the integration layer and saying okay but if it's integrated we have all the incidents in and all the data so that balance is not there but I heavenly believe that this will come as service now is more maturing in the HR facility area what not and then I think the the racial looks different and it's more promising also for Siemens to go beyond i TS so as you build out this integration architecture i have to ask you about security and my question is not one of a technical nature it's one of sort of a philosophical nature how is the conversation shifting right it's free decades we've spent money on the perimeter and protecting and and will keep the bad guys out now we all realize they can't keep the bad guys out it's how you respond to the bad guys and it seems as though ServiceNow could potentially is in some cases solving that problem how has the security conversation changed within your organization yeah i mean the security is high on the agenda with all the burn a little bit wilner abilities you here in the in the news and also did the day-to-day cases so security is a top agenda point and we had also some hard discussions within the siemens because the first reaction of demons was we have to have service now on premise we have to have our own nice server below the table and then we had some good discussions with herb is now we had discussions with other customers where they said no no we trust in this a solution then we did some penetration tests we did some assessment on side and that's where we said okay we will go with the SAS solution also for for semen and I'm pretty happy that we made the decision because now we don't have to focus on the operational topics we can really focus on the content bringing in new services bringing in you providers in rather discussing upgrading servers that you need to have the performance etc so that is also a next step we have on the agenda to bring in the vulnerability infosec topping also to our platform and but and is that the responsibility of sort of one group a group of gurus or is it a shared responsibility across the business or what should it be it is a shared responsibility because we are carefully watching how the ServiceNow cmdb is growing because we are collecting a lot of data we see exactly what is going on Adam and size of what are the customers ordering what in kind of incidents are they opening up we see exactly how our IT s doing and of course the provider data we have all the sea ice in our database and as we grow we grow the data that is in our system and that is of course a huge value but also security wise also a balance you have to make my last question I'll give you the last word we gotta wrap just knowledge you know your your experience here you know things you've learned anything that surprised you haha delighted you hear your you know I think the knowledge is really a great opportunity to meet at our customers to see what they have on the agenda were they working against and also it's a good opportunity to see what are the the hot topics for service now how does that match with our agenda that we have with our pipeline so we have a lot of discussions in the knowledge and that is a great value great Matthias egg will have thanks very much for coming in the cube preciate your time thank you good to have you all right keep right to everybody is the Cuba right back we're live at knowledge 16

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

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