ServiceNow on Monday named John Donahoe, former CEO of eBay, to lead the company as its new CEO.
Donahoe, who has been chairman of PayPal's board since July of 2015, will take the reins from current CEO Frank Slootman, who plans to step down on April 3 after six years in the role. Slootman will remain as the Santa Clara, Calif.-based company's chairman.
Donahoe spent more than seven years running online auction powerhouse eBay as its president and CEO. Before that, he spent 23 years at Bain & Company, rising to lead that global consulting firm.
Once he takes his position as CEO and president of ServiceNow, Donahoe will be charged with guiding the IT services management vendor, possibly the fastest growing enterprise software company out there, as it looks to extend its portfolio across the enterprise.
In recent years, ServiceNow has introduced applications that leverage its cloud platform to venture beyond a traditional focus on IT services.
ServiceNow is vying for market share as a customer service platform and is setting its sights on Salesforce in that arena. Last year the company released its Security Operations platform, meant to streamline incident response operations, as it is looking to parlay its position managing IT workflows to become a security player.
In an interview Monday morning on CNBC, Slootman said the hire was driven by the availability of a candidate of Donahoe's stature in the industry, and not by any business or time imperatives.
With Donahoe sitting next to him, Slootman said he wanted to "make room" for Donahoe by stepping aside as CEO, recognizing the value the former eBay leader could bring to the company.
Tom Kieffer, CEO of Virteva, a ServiceNow partner based in Minnesota, told CRN after watching the two executives on CNBC that he takes their claims that the hire was opportunistic, and didn't stem from external pressures, at face value.
Viteva's business has grown dramatically in the last 18 months, Kieffer said, directly because of its partnership with ServiceNow. The company uses ServiceNow to run operations for its MSP business, and also deploys the product for customers as a systems integrator.