Channel programs News
ServiceNow CEO Bill McDermott: ‘We’re In A Market Of One’
Joseph F. Kovar
McDermott says his company is the workflow automation market leader, one that is on its way to becoming a $15 billion SaaS powerhouse by building a “platform of platforms.”
Does ServiceNow have an acquisition strategy?
Organic growth is working here is because we’re putting so much into R&D and the expertise of our proud engineering heritage. I can’t find a company that I could buy that wouldn’t be dilutive to either my revenue or my margin story. So why would I buy any of them? That’s the real issue. [We] look for great talent in the market and a category that we care a lot about. We did buy some AI companies for the talent, not for the revenue. For instance, we felt that having a Turing Award winner, which is the Nobel Peace Prize for AI, was an important reason to acquire Element AI. And we did that. These are small tuck-ins, they’re complementary to our skills and our culture, and that’s where we’ll play.
What is the vision for ServiceNow going forward? What kinds of things are you looking at for 2022 and beyond?
First of all, the market for a cloud-type of automation platform like ServiceNow is at least $1 trillion, according to IDC and Gartner. If you want to just narrow it down to what we’re focused on right now, and just look at the properties that we have on our platform, depending on which research analysts writes the report, it’s about $175 [billion] to $200 billion in market opportunity. So we’re just getting started in terms of capitalizing on our addressable market with our sustained engineering force. So we’re going to be the workflow automation platform market leader for the global economy in all industries and geographies, and all personas across the enterprise, hard stop. This is the defining enterprise software company at the 21st century. It’s become branded within ServiceNow as DESCO21C. That’s job one.
And job two is making sure that we build the most incredible culture on the planet. We were able to hire more than 10,000 people during COVID. We’ll more than double our workforce in the next couple of years. And we have the highest retention rates of employees and customers in the information technology industry, high Net Promoter Score, loyal customers, loyal employees, all part of our hungry and humble culture of winning as a team and really wowing our customers and building something at the highest standards.