(techy music) >> Announcer: Live from Las Vegas, it's theCUBE, covering ServiceNow Knowledge 2018. Brought to you by ServiceNow. >> Welcome back, everyone, to theCUBE's live coverage of ServiceNow Knowledge 18 here in Las Vegas, Nevada. I'm your host, Rebecca Knight, along with my cohost, Dave Vellante. We're joined by CJ Desai. He is the Chief Product Officer for ServiceNow. Thanks so much for coming on theCUBE again, CJ. >> Thank you, it's great to be here. First time I came was last Knowledge, which was my first Knowledge, so I'm a lot more educated and equipped this time as compared to firing round of questions from Dave last time. >> We will pick your brain, exactly. So you were up on the stage this morning, a great keynote, and you said, "Welcome to the era of great experiences." Unpack that a little bit. What do you mean by that? >> First of all, thank you for remembering that. That was supposed to be the idea. But on a serious note, we feel, if you think about even our company name is ServiceNow, so you provide service, and when you provide service, that's not a technology you provide, you provide an experience, whether it's IT service, customer service, employee, whatever the case might be. And, if you are not delivering experiences, then you are not that relevant. So we are trying to truly, and we are in the beginning of this journey, truly internalize that, that if people are using us, they call themselves service desk, insider organization, IT service desk, customer service desk, whatever the terms you want to use, there is about experiences. Rather than focusing on bits and bytes, we want to focus on experiences, deliver those experiences via our platform. It's not software as a service, it's software as an experience. It's software as an experience, that's the idea, correct. Thank you for-- >> You also talked about the eras. You know, we went back to the industrial era and then went through the ages of computing. Yeah, I was not sure if that was going to work or not, but the point I was trying to make, Dave, was just around the quality of work and how work has evolved. That's it, that was the idea. >> But I think my takeaway was even more than that, because we are entering, in my view, anyway, a new era, and I'd love to get your comments. We're moving from what is real tailwind for you, which is the Cloud era, and obviously, Cloud is an important part of the new era where you have a remote set of services to one where you have this ubiquitous set of digital services that do things like sense, hear, read, act, respond. That's a different world, and it's all about the experience, and I don't know how to define that yet. Digital, I guess, is how we define it. But what are your thoughts? >> The one thing, even simple things, and these are not simple things to understand. When I look at things like even genomic sequencing, that's so different. They are using technology to figure out how to sequence the human genome so that it can help you with your health, live longer, even things like knowing that somebody rings a doorbell at my home and I can see on my phone. Everything is connected, humans are connected, when mobile came and computer came and internet came. But things being connected is pretty exciting for me. That just transforms our lives and how we work, and I really like that it is all about us, and other than us being focusing on the technology itself. So that's the point. It's that we're humans, and let's focus on humans and experience, rather than worry about, oh, this runs two times faster than the other thing, or this thing is smaller than other thing. That's interesting, but not that interesting. >> At this conference, this is really the message that you're getting across. It's the new tag line, we are making the world of work work better for people. How does the Now platform really deliver on that promise? How does it make the employees life easier? I would say we have a bunch of use cases, but as you know, we started out early on with IT service management, and the whole idea was can we provide, as long as computers are there, as long as software is there, password reset is going to be there for a very, very long time. So, my point is that that's when it started. Okay, I need to do password reset, I want to upgrade my laptop. Every year there is a new laptop, every year there is a new phone, and that cycle will continue, and as long as we are using technology for our knowledge workers, IT help desk will be there, right? And where we are evolving is enterprise service management, because you don't, as an employee, you may deal with IT, you may deal with HR, you may have a contractual issue with legal, you may need something related to your payroll from finance. People think payroll is HR, but payroll is finance. And as you try to go across in a day in a life of an employee, you need to make it as easy as possible. So that's what we are focused on, deliver better experiences. You know, artificial intelligence that listen today, I believe, is more about optimization, rather than intelligence. Yeah, we want to use your data to be able to predict, like if you see in Gmail, I don't know if you use Gmail, but if you have Gmail, you get an email, it'll suggest auto-responses. Those auto-responses are almost positive. Have you noticed that? They are never negative. >> Yeah. >> Oh, of course. >> They're like, no, I don't want to come to your meeting. (laughing) It's kind of like trying to predict most likely what you would want to say, and I think if we can use intelligence to make people more productive, that's what we want. >> I mean, I use that function. I actually like it. >> CJ: Yeah, exactly. >> You know, it gives you three choices, and one of 'em is pretty close to what I would normally, and if I'm busy, I'm done. >> Yeah, right, exactly. >> I like that. This is the other thing we've talked about. We've talked about this with Farrel this morning. Try to anticipate my needs, right? So that means you've got to infuse AI into the application and identify specific use cases. You guys have done some M&A there, you talked to the financial analysts meeting, obviously, not disclosing anything, but watch for us to do some more M&A. You got to believe that that machine intelligence space is really ripe for innovation. >> And what we believe is if I look at the big Cloud providers, like Google, are investing a lot in deep learning and many, many other technologies, so whenever they expose it, and some of them do a really good job, we will just leverage their libraries. But there are things specific to enterprise, because there are things specific to enterprise, like if you use the word network at a hardware company, that's always in context of compute network and storage. If you use the word network at a healthcare company, that's a network of physicians, networks of hospitals, networks of whatever. And if you use the word network at a Telco company, that is a whole different network. My point is we want to understand those pieces, and if we can make it easier based on your data, so if all your cases, which are, Oh, part of your network is down. Ah, that's what you mean from the context end point, so we want to use wherever folks like Google are investing, we will leverage that, but if we need to leverage, we'll do that too. >> It's interesting, we were talking to a customer today, it might have been Worldpay, and they took the CMDV language and transformed it into the language of the business. What a rare and powerful concept for somebody from IT to do that, because if the lingua franca is business, then the adoption's going to go through the roof. >> So does that make sense? >> Yeah, it makes a lot of sense. Well, I appreciate you talking about the value and the customer experience versus the technology. Certainly, it speeds and feeds you right. Boring. But the platform is important. Many products, one platform, that's unique for an enterprise software company, and you guys aspire to be the next great enterprise software company. Talk about how the platform enables you to get there. >> So I will tell you simple. You know our founder, Fred Luddy, started with the platform in 2004, so that was 14 years ago now, and his idea was you should be able to route work through the enterprise using our platform, and then we started with the IT service management and use case. The biggest advantage we have is that we are a very customer-driven organization. Many companies say that, but you see it here. Dave, you have been coming to Knowledge for a long time, I don't know about you. >> This is my first rodeo, but it's cool. >> It's the first thing you see. >> These are 80-plus person sessions, are customer sessions. They're not our sessions, where they are sharing best practices with them. So we get all these requests, CJ, we have built emergency response system using ServiceNow, CJ, we have built financial close using ServiceNow. Can you productize it? And we say, okay, thank you for the idea, which is great, thank you for the idea. How do I prioritize all of that? And, Dave, where platform comes in, because all the services I talked about today, service intelligence, service experience, user experience, they're all built in the platform, and I'm trying to be cautious, but if I want to create a brand new product on our platform, a brand new product on our platform, 40-use case, a 1.0 product where I feel comfortable the customers can use it, I would say 12 to 18 engineers. That's it. >> Rebecca: Wow. >> If I want to create one product, it's 12 to 18 engineers. So the R&D leverage, and that's the point I was trying to get across, that whether it's my own team creating product or whether our customer building apps on our product, because on platform, because we provide all the common services integration, the incremental cost to create something, now sales marketing, with my close friend, Dave Schneider, is much harder, because he has to scale it, build specialty in it and all that, but to create the product is not an issue for us on the platform. >> But this is where Cloud economics are so important, because at volume, your marginal costs go to practically zero. >> CJ: That's exactly right. >> But people may say, oh, 12 to 18, that sounds like a lot, but we're talking about an enterprise class software product here, and Fred Luddy, in the 2004 time frame, I mean, the state of enterprise software then, frankly, and now, was terrible. The guys at 37signals, I don't know if you know Jason, they made valid attempts, but it wasn't enterprise class software, it wasn't a platform. I've said, a number of times this week, the reference model for enterprise software is painfully mediocre, so you guys have done a great job, and now you've really got to take the next step and stay ahead on innovation. >> Correct on innovation card, that's what I said, innovation should be my top priority. You heard me at the Financial Analysts Day. Customer Service Management, brand new product, we actually launched it at Knowledge 16. Okay, that's when we launched it. It was engineers and teens who created that product, so many teens, the 1.0, now we have evolved quite a bit, 500 customers two weeks ago, 500 enterprise customers. You guys know that we don't go to the small line of the business. 500 in two years, eight quarters. >> And I found out last night, I think it was 75, or it might even be higher, reference customers. >> CJ: Yeah, already, using CSM. >> That's the difference. I do, we do, a lot of these shows. >> That's the platform impact. >> And you're talking about the customer focus. You do a lot of these shows. The customers talk about the impact on their business. They don't talk about how they installed some box, or like you say, runs faster. It's the business impact that really makes a difference, and that's why we're excited to be here. >> You saw today when I talked about Flow Designer and Integration Hub. IT wants to provide software so that business analysts can model business processes in a Cloud way with whoever you need to integrate with, so we are really keeping that as the north star for our customers, and how can we make their life easier, whatever they want to automate, some manual processes, all of manual processes. I remember speaking to Fred when I joined initially, and I said, "Fred, how did you think about TAM?" He said, "What do you mean, TAM?" You know, he's a funny guy, and he was serious. His point was there are so many manual workflows, how do you put a TAM around it? Every business is unique, their processes are complex, so don't box yourself and say, Oh, this is a $4 billion TAM and I'm going to get 20% of it. Every enterprise, as long as they exist, they will have manual workflows, you go and give it our platform so they can automate however they want. >> Well, I'm going to make you laugh about TAM. I'm a former industry analyst, so when you guys did the IPO way back when, well before your time-- >> CJ: 2012. >> when Frank was here, there was a research company saying this is small market, maybe it's a billion dollars and it's shrinking, so I, with some of my colleagues, developed a TAM analysis, and it was more than 30 billion. I published 30 billion, you can go on our old Wiki and see that, and the guy said to me, "Dave, you can't publish more than 30 billion. You'll look like a fool." The TAM is much, much bigger than 30 billion. You can't even quantify it, it's so large when you start looking at it. >> And now, because people are recognizing that we automate all the manual workflows in a enterprise on a Cloud platform, last week somebody published a report and I just saw the headlines, I didn't go through the details, 126 billion. So from in 2012 to that small number, and we don't know what the number is. >> Could it be bigger? >> I would have no idea. I would be completely disingenuous if I told you I know what my TAM is, but I don't think that way. I say what customer problems can I solve? >> Well, that's what I wanted to ask you. So you're here with so many different customers. Just on the show, we've had ones in payments, in insurance, in health care. What are you hearing from customers, and what are sort of your favorite applications of what you're doing? What makes you the proudest? >> Yeah, so I would say the proudest moments for me are when I'm like, wow, you do that with ServiceNow? I would have never thought that. So when I didn't expect, when I expect something, Oh, I had this routine email, text collaboration, and I switched it to ServiceNow, get it, like not a big aha moment. I had this one customer who said he has a big distribution network, all these partners, and those guys have ServiceNow, he has ServiceNow, and when they have problem with the product, their product, my customer's product, they all communicate via ServiceNow to each other. So they have created a whole ServiceNow network, truly a B2B kind of exchange, kind of, using ServiceNow. One of our median and entertainment customers who owns a bunch of parks, they refill the popcorn machine using ServiceNow. When the popcorn levels dip, they have those people who carry around the cart, Oh! The popcorn level dip, it marks the sensor, it routines the workflow, goes to the corporate, Ah, we need to fill up popcorn on by this particular ride. For me-- >> And even at my house, I love it. >> Yeah, so that's exciting to me. >> We talked to Siemens today. >> Yes, great customer. >> Awesome, and I want to run a line by you. We talk about AI a lot, machine intelligence. I wrote down during, you know, data is the fuel for AI. Well, you know we love data here at theCUBE, and he was describing that, he said, you know, even though CJ was not prescribing taking the data out, we could leave it in so it learns, right now, we take some of the data out. Well, you described that. Well, we put it to SAP HANA, we throw a little Watson in there, we do some Azure, machine learning, we use Tableau for visualization, he's probably got some Hadoop and Kafka in there, a very complicated, big data pipeline. And I said to him, Okay, in two years, do you want to do that inside of ServiceNow? He goes, "Absolutely. That would be my dream come true." So, I guess I'm laying down the gauntlet. Do you see that as a reality? >> So, we are talk to Siemens, great customer, they keep us honest, so I love that and I did actually meet the team who was in charge of their BI and reporting and they did share the same story a few months ago when I met them. And we are trying to figure out, Dave, if I knew the answer, I would have told you, but you know my style. I don't know the answer. We are seriously trying to figure out, Do we become an analytics hub? We are really good with ServiceNow data, we can build connectors with other data, but do I want to be in the BI and reporting market? Absolutely not. Do I want to help customers as their processes span across and provide them more visual credit tools than others, text-based searches, whatever they need, the answer is yes. Performance analytics, as you know, we have been moving along really at a good pace, and now we have what every single product, but this is something that Eric Miller, who runs that business, we talk about it all the time, because currently our analytics is building the platform, and now you know that data has a Cloud issue, so if you have data here, you have data there, you have data there, we are in our own Cloud. Can we build a connector, potentially, to OnPrem? Don't know the answer, but this is something, it's a fair gauntlet having to solve. >> Humbly, I'd like to give you my input, if I may. >> Yes. >> We see innovation, as I said before, it's data, applying machine learning to that data, and then leveraging Cloud economics. The project with big data projects, as you well know, is the complexity has killed them. Now you see the Cloud guys, whether it's Amazon or Microsoft, and that's where the data pipelines are being simplified and built. Now, I don't know if it's the right business decision for you guys, but wow, wouldn't that be powerful if you guys could do that, certainly, for your customers. >> And, truly, that is, as you heard me on Financial Analysts Day, I'm a huge fan of Geoffrey Moore's work, and he defines system of record, ERP CRM, system of action where we fall in, and then he has System of Intelligence, which is all the things around data and how do you harness the power of data. And that's something that I really, in our product teams, we talk about all the time, if I can solve Siemens problem with everything in ServiceNow, that'd be awesome, but is that something I want to prioritize right now, or is there something, we should give them the flexibility. I don't know. >> Well, you're one of the top product guys in our industry. It's why they found you. No, seriously, I put you up there with the greats. >> You're kind, thank you. >> It's true. You've got an incredible future ahead of you. But as a lead product person, you have to make those decisions, and you have to be very circumspect about where you put your resources. You can't just run to every customer requirement, right? >> And I tell, coincidentally, my wife asks me What's your job, by the way? I said, that's a good question. >> I'm married to a product officer, too, I feel the same way. What do you do all day? You do a lot of meetings. >> Yeah, exactly. So I said that I do a lot of meetings, and she said why do you do a lot of meetings? And I said I'm making a some decision or help my team make a decision because they already analyze a bunch of things. And I said, my hope is, as long as I can make more good decisions than bad decisions, specifically about product strategy, because you never know unless you make the chess pieces move and think of two or three steps ahead, and some things could be right and some things could be wrong. I have a simple framework on my whiteboard for every meeting. No jokes, right? So, my framework is very simple. Question number one, What customer problems we are trying to solve. If you cannot articulate that, for any new product idea you have, I don't go past that question, What customer problem we are trying to solve? Second is Why now? Why do we need to solve this problem now? Like you said, there are many problems, which one are you prioritize? And then, third, Why us? Why should we solve that problem? So, if you can articulate the problem, which always is a challenge because you kind of know what problems you have, but unless you really, really understand the customer pain point, you cannot articulate it. Then you say, why now? Like why is the time right now for us to invest in this, say, analytics, as a service? Why right now? And, third, why you, as in why us? Why is ServiceNow should solve it? That, at least, gives me a guiding compass to say because I have many products, as you know, I am very protective of our platform, and all these use cases come in, every product line wants to go deeper, rightfully so, because they are trying to solve for customers, and the new products want to be built on this platform. Sometimes I say maybe a partner should build it, so we made a decision, facilities product, Should our ISB partner build it? And that's the right place because we feel they are more suited, they have the skill set, all of that. But that's it, what problem, why now, why you? >> Rebecca: Really, I love it. >> Well, the Why you? it's a great framework. The why you is unclear for the Siemens problem, and I can understand that. You take the DemOps announcement that Pat stole from you today-- >> I know, that's not cool, man. >> But that's a problem that you guys solved internally, clear problem. >> He did a nice job of articulating it, very nice job. >> Yeah, definitely. >> But we feel that there always is a process when you need a workflow across, because in planning there are a bunch of companies, as the patch, or in build there are a bunch of companies in develop there are a bunch of companies. That's fine. They could be the system of records for those chevrons and we are the workflow that cuts across. So we feel loved. We showed our value to our customers by doing that. >> Rebecca: That's great. >> I know we've got to go, but lastly, it's roadmap. Last year, you talked about how you guys do releases by alphabet, twice a year. You were really transparent today, laid out the room and talked a lot about Madrid, you laid out well into the future what you guys are doing so, as an analyst, I love that. I'm sure you're customers love it, so-- >> A lot of people to picture, so that's nice. And Twitter, a lot of people posted on social media as well, so clearly there was a customer pain point, as we call it, that they needed a roadmap. In speaking to customers last one year, number one thing, if you tell us what you're building, then we don't have to build it. If you tell us when you're shipping, then we can plan around it, and then we will set aside resources to do testing. Any Cloud software company, whether it's us, CRM software or HR software, people still test, because you cannot mess up your employee experience or customer experience, and they just said give us a predictable schedule, please, so that we know. We did say two times a year, but we were not prescriptive which quarter. It could be four months and eight months, it could be six and six, it could be seven and five. I'm currently going with the quarterly-level fidelity, and eventually, I want to get to a month-level fidelity, where I say March and September, once our internal processes are organized. >> So the other subtlety there, and I know we got to go, is the ecosystem, because you're giving visibility, they have to make bets. They're making a bet on service, but then where's the white space? They're betting on white space. If you're exposing that to them, they can say, Oh, not going to solve that problem. ServiceNow's going to solve it in two quarters. >> I agree. >> Huge difference for them. >> You guys are wonderful. Thank you so much for inviting me. >> Rebecca: Thank you for coming on the show. We appreciate it. >> No, that's awesome, thank you, thank you. >> Dave: Great to have you. >> Rebecca: Great to have you. I'm Rebecca Knight, for Dave Vellante. We'll have more from ServiceNow Knowledge 18 just after this. (techy music)

live from las vegas it's the cube covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick welcome back to knowledge 16 everybody this is the cube the cube is sick silicon angles flagship product we go out to the events last year we did almost 80 events probably do 100 this year Jeff I don't know Michael Hubbard is here is the vice president of service now inspire Michael welcome to the cube inspire us thank you that that's what I get to do every day to some of our amazing amazing customers no prospects what is inspire hear a lot about it but really sure so for the last year or two we've been receiving invitations to truly step into some of our customers and prospects business transformations and we're getting inspired by what they're trying to do in changing the way they operate fundamentally as a company and when we see an opportunity for our role to inspire the rest of the market to inspire the rest of the customers we haven't touched yet and actually change the understanding of why we exist as a company I get the honor of leading a team that just focuses on those invitations and goes and does what it takes to make those customers successful mostly through strategy insights advice as well as giving them tangible sort of super bowl commercials that let them explain to their organization what they're trying to do because we're a cloud company we can simply spin that up build it and give it to them let them go shop it around so that they get momentum to achieve that outcome and there so it's essentially a consultative service that is not a for pay service it's something that you offer for your top customers is that correct correct it's an investment right and it is about finding the roughly 1 percent of customers that are really trying to do something inspiring and helping them be as successful as possible really so how do I how does one qualify to be an inspire recipient inviting that biting me on the cubes a good start so uh but but that's the right question right because we're burdened with too many the blessing of too many opportunities to many adjacencies as a platform that could do someone things in the world so how do we prioritize the first thing is about finding leaders that truly have a passion and a commitment and the authority to drive a big change because no change is easy you will have to change career paths for some of the employees processes for some of the ploys maybe governance and compliance and attestation expectations of how business gets done that's hard so we're finding looking for a person who has both the power and the vision to change the way they go to market and then secondly we want to make sure that if that change happened it would be considered meaningful if we were a part of it that's all we need so strong stomach yeah right and obviously a substantial investment in service now so they could leverage some of the changes that you want to bring forward it would be unwise for someone to gain our advice if they didn't think our platform was the right way to achieve at least a meaningful portion of it right because our expertise is rooted obviously and where we come from and where we spend a lot of our time and in the insights of where our company's going so if you think our vision as a company is relevant that we might be a good person to help you with your vision you're biased and you're not shy about saying that I would say where we are definitely aren't atheists we have religion right we have a religion and and we're going to apply that religion to what you're trying to achieve so if you think there's synergy there then maybe we're a good fit to help you with that and the big difference between worrying about whether we're biased or not is think about how accountable we are because when we give you this advice we are the ones we have to deliver on it right and that's the always been the big challenge between the the the folks whose feet don't touch the ground in terms of telling you what you should do then the folks who pick up that vision and try to execute it but they weren't there for the inception of it we want to break that cycle and bring it together so how much of the advice that you're providing your customers is specific to leveraging the platform versus sort of business process changes and other you know types of initiatives that are transformational so so we start with an outcome and we tend to start with an experience so an outcome might be faster time to equality choir knowledge reducing a reducing rate of turn in the employee base by improve Net Promoter Score of employee satisfaction might be margin expansion it might be revenue growth who knows once we know what that outcome is then let's try to think about the moments where its most tangible that that the outcome of this transformation is going to deliver a better version of that moment and that's what I talked about with those Super Bowl commercials the two minutes sort of experience that lives on your mobile device that makes you want to drink that beer or be that guy or buy that product be in that environment so we create that in that environment with our labs team we confirm that that's a line to the future state they want and then we back into all the things that's going to take people process technology architecture governance to achieve that so a lot of business strategy stuff that you're doing as well I wouldn't say we're helping customers define their business strategy but if they have a compelling before-and-after statement we want to be an enabler of fact yes that's a hard job because almost everyone we've had on at some level qualifies for what you're describing and I would also imagine you definitely wanted to be a client for chevre lydon but you know there's always that problem if people don't have skin in the game when it comes time to get hard work done usually maybe a little more motivated dead skin in the game so we're that skin comes through you know they already made a big investment in service now how do I get more out of that investment how do i leverage that investment across you know broader ecosystem or get those benefits that I realized here you know there there and there might imagine those are pretty important thing to consider it absolutely so commitment is a crucial word right and I'd say we spend half our time with customers that they're not customers to prospects that are considering going on a journey with us a journey to everything as a service enterprise service management the service revolution all the the catchphrases I'm sure you've seen throughout this week the other half our customers that have started on the journey their cio their CFO they already have this asset in their software estate and we're helping them sweat that ass that more in both cases it comes back to finding the person that I shake hands with and look in the eye and we have that social contract that frankly means more than herschel contract that if I helped you and I make you successful and I show you that I truly understand what you're trying to achieve why wouldn't you want me to help you with it so we really don't have challenges around conversion and follow through on the advice that we give in the role is the CIO is you're dealing with cio CXOs so yes prime earlier today we're dealing with CIOs and CTOs in mega organizations with you know six to ten billion dollar I teaspoons we're not we may be in a division right a divisional CIO but we're also starting to get the CRS right because what if we could take the IT practices that help an employee engage in services and apply them to the way a customer it consumes services so i SAT with a CRO shortly after the recent sales force outage talking about how he can better quantify the work of his 2000 application engineers it's a software company because when he goes to the CFO and wants to talk about needing 50 more engineers to help capture more revenue the CFO says well what are all the 2,000 doing he says I have no idea right so can we be the system a record that answers what those people are doing for their customers what does an engagement look like take us through the anatomy as it you know start to finish yeah so so obviously there's a lot of work up front to make sure we're in the right place with the right person solving a well-understood problem right so qualifying is huge for us because there's only 40 or 50 of us and we've got a blessed amount of opportunity in the market of people we could work with so qualifying is important once we get to the point that we have that social contract that handshake agreement that says I understand your outcome going to I'm going to give you a plan to achieve it than together we're gonna we're going to go we're going to go get that outcome the next step is really bringing the rest of the team that that leader depends upon right the inclusive doing it with his organization bring that team together through workshops strategy tactics operating model make sure that they understand it have a rough draft of a plan socialize that plan once it's understood among the leadership team let's help with the organizational change management by pushing that out to the to the larger audience in parallel let's prove it right where a cloud platform i should not deliver you a powerpoint presentation of your future i should give you a glimpse of it right and it should be on your mobile device and that experience is that is one of those deliverables now let's give you a business case that says we believe it's going to make money save money reduce risk in this quantity and these time frames as follows so one of the delivers actually you code some capability correct correct we tend to be a low code company all right being a pass platform as well as a SAS company but absolutely we're delivering experiences that allow that visionaries CIO to show his or her stakeholders why all this change is worth it because on the other end something Goods going to come out of it what is the typical length of an engagement I'd say on the average there about six to eight weeks it just takes that much time to manage all of the mutual understanding of us learning than us advising than them accepting in it the end it really is their plan it's not our I don't think that's much time wrote down six to eight weeks and I said that it's maybe too aggressive but you're saying on average you can complete that and say so that is that presumes that the client is putting forth you know the resources necessary to get it done the meetings etc and you're picking a time when everybody can it is yes and so these are not free they actually consume the most valuable resources these organizations have which is probably their strongest leaders and the people who understand their current state and their customers and their problems the best so it's by no means free to two of these CIOs and they understand that they're not writing a check but they're spending their time absolutely they're they're valuable you can always make more money it can't make more time from these precious resources and they get that and when did inspire when did it start so it actually started in January this year so I've been with service now about eight months recently we servicenow and our leadership team got really serious about being able to do this for customers and I was fortunate enough to join the company to help build out that program and so we're in our freshman year right we're learning a lot and we're taking those learnings and we're putting them into what we call the customer journey so if I've got these insights about what some of our most ambitious customers are doing how can I translate those insights into a scalable knowledge base by which every customer could learn these lessons the easy way versus the hard way and that's what the customer journey is which we shared a lot of here at knowledge this week how many of these have you done so we've done about 30 so far will do about another 20 this year I don't think we'll ever get to more than that a year that's a lot 30 and five months just getting started what we are a very surgical consulting team meaning that you know we want to get in do the job right and then transition to to the team that's ultimately going to do the actual implementation then we stay on just in a governance and oversight sort of capacity doing QPR's quarterly helping out if something does go awry and learning what was wrong about the assumptions we made up front so that we correct that the next 20 customers really go back and look at the business case and say okay we got it wrong as we go absolutely value oh but he ever does that I know I know like the weather man check in the paper from Moscow yeah exactly but all your realization is so important as an industry we're not good at it and the beauty of our platform is if you turn on all the functionality we could actually have that done for you real time just like because the work you're doing is captured that the value hypothesis is going to be proven out for you or refuted for you right in the platform so then we come in make sure that that's set up pull that data out and then we educate the market about roughly what percentage Michael of those 30 said okay the business case looks good we're going to move forward all of them it's a matter of how quickly they move forward and with how much urgency because if we take a three-year plan that has six or seven components in terms of work streams and outcomes they might say I'm going to do while seven eventually but I'm going to start with this one and this one is the burning bridge that I have to but every single one of them has moved forward with taking a subset of our recommendations that implementing them on our platform so obviously part of the qualification process is some kind of back a napkin business case where you have a high probability of success right absolutely because our most precious resource is the same as is our time you got it you got a rig it very nice say that I don't mean it as a pejorative but you better make sure that you're gonna have a high business absolutely so absolutely qualification super important but we're blessed with an incredible number of customers that are coming and giving us these invitations and we've gotten pretty good already at getting right to the heart of how is this team able to solve the problem they have or is are we the wrong team inside of service now the help that they really need the product team the business units do they really need our professional services to get in there and turn some of the wrenches do they just need education right do they need third-party help from a partner to scale their their staff so you coming to the cube obviously you're not trying to stay stealth but have you been presenting this week is demand now going through the roof and are you sorry that you know you know so so I get the the pleasure of spending my time in two areas one this high touch high cost of delivery motion that we've been talking about today but the other half of my time is taking those learnings that are harvested and putting that into sort of a canonical framework that we call the customer journey which is programmatically how do most people consume our platform attain value from our platform what are the major inhibitors to progress what are the accelerants that help them go faster and that's what we've been talking about this week at knowledge is helping people understand the journey we've got some self-service tools that are available through our field organization for any of our customers to sit down and rather than having to come to me and my team working with your local service now partner representative use some of these tools and say this is where I am these are the things I'm trying to achieve this is what I should do next house that compared to other people and then service now based upon your understanding of my plan what benefits to most people get as a result so some basic benchmarking and so we've got that tool and that's really what we've been talking about this week at knowledge sounds like a fantastic program really congratulations on getting it off the ground and really appreciate you coming to the cube and sharing that with I've a long time watch her first time participants no way I'm very happy to be here now a Cuba longer fantastic thank you Michael thank you all right keep right to everybody Jeff and I will be back with our next guest we're live from knowledge 16 this is the cube right back this is a tale of

live from las vegas it's the cube covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick we're back Jeff Frick and I are pleased to be wrapping up day one for us for the cube at knowledge 16s a plastic piece no service house big events been a long day okay farriers texted me from SA and looks like they had a good event down there as well but but we're here at knowledge 16 great day financial analyst meeting yesterday set up the cube had a great kick off today at the the keynotes with Frank's luqman and and company laying out their vision she said robert gates on as a rock star right i saw him at the cio event so service now has a separate cio event within the event and they bring in a lot of speakers and they share you know it's behind closed doors CIOs talking to other CIOs pretty impressive was great walking over with him ten minutes he came on now remember he replaced rumsfeld all right george w bush brought him in asking him to replace rumsfeld it was like it would be like Belichick replacing Parcells right Rumsfeld effusive outgoing controversial hey and then and then and then of course belcheck you know very straight narrow and and that's kind of way Gates is right i mean he was very measured and in yet opinionated met serving eight presidents all of all of which had great sense of humor except to he said right jimmy carter and and richard nixon yeah dark days then take take what you will from that he's head so pretty interesting but so what's your take on day one at knowledge you know kind of following up on some of the stuff that dr. gates talked about it the themes are actually really simple you know and he listed the traits of leadership you know these are not things that you never heard before carrying it with the trust humor and I think the themes here at as service now are very similar Dave and that it's it's about work it's not about records it's you know for time and time again about it's about effective response not necessarily you know building the biggest mode in the security in the security aspect and you know it's the action platformer we get work done so it just seems like this kind of methodical just boom boom boom stick another knitting moving down the road moving down the field as we like to say and continuing just to execute and as they see everything as a service that now that opens up this huge opportunity to go well beyond itsm which is you know consistent with the vision and I don't keep talking about that 2013 interview with rebels our first meeting with him you know to execute on that vision of a platform and now going into shared services which we've heard a lot about you know a little bit into HR a little bit into legal and continuing to move down that path where you know this seems like a good opportunity for a head but they're just executing just keep executing well and I Tom now is the big opportunity facing them and I think it's going to provide a Mick shift to to a new set of products for service now IT operations management they've made some acquisitions they are a service management is now it's got its tentacles everywhere and I mean essentially helping orchestrate chef and puppet if you want they could do the orchestration for you so cloud management is a new area for these guys than this whole notion of inter clouding and managing multiple disparate clouds is something that service now can help attack I mean it's pick a problem that involves a service workflow and service now is going to knock it down how many things in business involve a service workflow it's like everything everything we do everything we touch has a service workflow aspect to it so every project every new initiative every acquisition it's just you know the market opportunities enormous and what service now has done a really good job of doing is taking this little notion of a like the Big Bang IT Service Management he'll help desk changed man and problem management change management etc and exploded that in all different directions into new vectors you mentioned a little bit in hrs I think it's increasingly getting traction in HR legal logistics you're now seeing service now lay out a vision of touching and helping to essentially orchestrate request service requests around the ERP systems around the CRM systems which are systems of record and relatively rigid systems of record right and service now can help orchestrate all the activities around that it's an enormous opportunity so the TAM I pegged the tam in 2014 I wrote an article that John furrier II published on Forbes I pegged the tam at 30 billion at that time and remember when I went through the analysis David floor you help me at ease you know it just feels like it could even be higher and I remember discussing that with David said yeah but 30 billion so huge already and they get this tiny little company and you're on thin ice we better be conservative here and now it's up to 60 billion i think the 60 billion is is understated Jeff well Darryl from from H&R Block in Canada you know they do this annual thing I left I called it a merger acquisition at a divestiture to build the infrastructure to execute the annual tax process for Canada 84,000 tasks everything from painting the building to signage to computers to paper to hiring people firing people i mean how does a lot of different tasks that they now manage with service now I thought that was pretty a fascinating story you were not when we had Lawrence on from from from ey not understand young anymore ey and talked about now they can provide a level of detail in the IT FM the financial management is like what's the cost of an application that no one ever knew before because they never added in the data center cost you know this is just software and maintenance and now people can start making interesting informed decisions about end-of-life enough which has come up in a number of our conversation so that people are turning off other applications and and service now is taking that workload the other thing I wanted to talk about we talked about this at the open but when you and I walked the floor at 22 the ServiceNow 2013 it was struck us that one of the challenges they had is to evolve this ecosystem and in that but by the way they they still have that challenge but they've done a really good job and you've seen one of the things we said is where the real big guys KPMG was here but you know the the Accenture of the world the youngs at the time now they are going all-in so accenture acquires cloud sherpas CSC acquires fruition so those guys like to focus on big opportunities so the only area now the other thing we talked about when we were at the Aria was the down market opportunity you know we said boy wouldn't it be nice if they had a solution for small companies take a put in a page out of the the Salesforce playbook and they've announced offerings there you're not hearing anything about them you know because and I think the reason is at least in part there's so much opportunity in the global 2000 they're really laser focused on that piece we got to do some more digging and find out what's going on there I know initially there was some concerns about sort of the the growth path and but we haven't heard a peep unless I missed it about the down market product the entry-level product guys the guys like us right you know he'd use it I don't know if I have 84,000 tasks to put the cube production together but i could not the few that i was not to have an automated in this system absolutely yeah so and then the other thing Dave which which you know we ettore on talking about the design and and the the watch and the fact that he sits in a room he had a surf shop in the Maldives before he came to work for service now for a couple years and he sits with Fred and so again just this unique culture of having kind of the mad scientist you know elder coder with the the fellow surf shop design guy and to come together and to try things and to come up with the watch and told the story the watch and I had to build credibility over years to try new things to get to the point where you could say hey let's let's talk about the what let's do a watch and is a form factor of the wash and what are the types of notifications and work behavior that we can better represent represent in this form factor and I think it's just you just cannot underestimate the strength of having you know a driven visionary leader that pulls people to him and inspires people which he so clearly does well and he's young at heart I mean a sec i would say i think he was coding in the keynotes today i got we gotta ask him but he comes on you know but they you know you look at this company and there's some folks at this company that been around for a while you know it's not a bunch of kids you know co diem there are right but a lot of the senior leadership team and the technical team the development team have been around the block right this is not their first rodeo and yet they're able to focus on simplicity you know Fred used to talk about the Amazon experience lat you know last year I think it was the uber experience I think I know we're gonna see some more stuff on on Wednesday though the watch still as we scratching my head a little bit but look low when did the Apple watch come out right i mean window if you look at apple's kind of the people at stamp you know this is now kind of a valid new technical assed year right austrian they're already kind of thinking of new ways to use this fourth basket right well so one of the guests said today you know things change so quickly now you know we it's true we used to go to these conferences and you'd be talking about the same cloud narrative two years straight hey right now it's like every six months it's something new every three months it's something new you know whether it's you know the way i OT just exploded on the scene you know hadoop which was so hot now the dupes like passe you know everybody's talking about you know spark and you know other new real-time methods and streaming and and it's just amazing to see the pace of innovation and so servers now seems to be a company that can keep up with that the other thing is i'd look at my notes on is back to your comment about the system integrators you know we had center and see you see both talking about them getting out of the plumbing business and really moving more of their efforts with their clients to the high-value stuff and you think wow that's kind of counterproductive they've made a lot of money on I'm doing heavy lifting infrastructure implementations and integration and all that big nasty stuff even they see the writing on the wall it's better to get behind this transformation the cult of the rotation to the new and to build their practice around helping their customers execute in a cloud enable the world versus necessarily continuing to stitch together infrastructure well I mean I think that's it's important I mean the hallmark of a great company is one that can can navigate through transitions we we've covered EMC for years we've seen their their Executive Joe Tucci talk about the waves I I always believed in the DMC strategy for example was was the right one but it could not navigate those waves all right it's been a lot of great companies the digital is the primes the way thanks you know and so we'll see if well I mean guys like the service companies tend to be able to make those transitions all right because they they do you know eat from the trough so to speak right right hey they wait until there's a lot of food and then they go in and and pig out and I do a really good job of it and they're doing it now so that tells you there's food so that's a huge sign a confirmation about this ecosystem so all right anyway a big another big day tomorrow start off with the keynotes at eight a.m. pacific time and and then we start up i think at nine thirty again right correct we start at nine thirty and again we've got a great selection of service now executives of course but more importantly what we look forward to really is the customers and and again as we've said a number of times one of the reasons why this is one of our favorite shows is because we get to talk to practitioners we get to talk to people that are executing that are in the trenches that are transforming their own companies in this competitive world and they happen to be using service now as part of that strategy and there's a lot of them here so we will be extracting the signal from the noise as we do with the cube thanks for watching everybody this is a wrap day one we're here at servicenow knowledge 2016 at the mandalay bay we'll see you tomorrow service management