ServiceNow: Customer Perspective

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Do you have a ballpark figure for what the spend was in 2016?

We did it for two different products. Envoy, a visitor management tool, was bought and deprecated, saving us $250,000. We used the WSD Workplace Service Delivery product, which includes visitor management as part of its suite, allowing us to save money there. We also deprecated Moveworks, which ServiceNow just acquired. We replaced Moveworks with ServiceNow's virtual agent because we had the ITSM Pro SKU. ServiceNow's acquisition of Moveworks changes our strategy, but initially, Moveworks wasn't as native as we wanted with ServiceNow. The Moveworks UI extension was incompatible in several ways. For instance, it couldn't handle complex forms with UI rules, like displaying specific fields based on conditions. It operated at about a 20% success rate for deflecting tickets. I believe this is due to culture. I researched Moveworks and spoke with their leadership team, including Varun Singh. They often engaged with us since we were one of their bigger customers. The success stories I heard with Moveworks were largely due to companies investing in pushing their employees through the Moveworks channel rather than having a democratized approach.

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Four years. How much did your spending decrease? I think a large part of the reduction was due to the team deciding against Discovery, which is a separate issue and unrelated to the headcount reductions. I want to isolate and understand the impact of reducing headcount on ServiceNow. If you reduce your headcount by a certain number, what is the impact on ServiceNow? On one hand, it could decrease because it's seat-based. On the other hand, fewer people might be asked to do more, so it might not decrease, or it could even increase. Do you understand? Similarly, as I asked you to exclude Discovery reductions, maybe also exclude adoptions like HRSD unless they are directly tied to headcount reductions, where you're doing more with fewer people.

Yes, I'll start with the contract negotiation, then move to service usage. In contract negotiation, they have different chargeback models per product. For IT, it's based on the headcount of fulfillers, those actioning tickets. Other products, like Integration Hub, are based on transactions and queries. The core products, WSD, HRSD, LSD, are based on the requester base. On the IT side, we had fewer fulfillers, fewer traditional service desk fulfillers.

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