 Live from Las Vegas, Nevada, it's theCUBE, covering Knowledge 15, brought to you by ServiceNow. Okay, welcome back everyone. We are back here live in Las Vegas. This is SiliconANGLE, welcome on to theCUBE, our flagship program where we go out for the events and extract the signal from the noise. I'm John Furrier, the founder of SiliconANGLE, show my co-host Dave Vellante, co-founder of wikibon.com. Our next guest is a friend of theCUBEJ, Anderson CIO of ServiceNow. Great to see you again. Back in the action. So, CIO, we've been talking a lot of CIOs. Yeah, well we tend to attract them. You guys have a lot of great customers here. Absolutely. Really been fantastic. You're on the CIO on the side that's promoting all this action here. We talked to a lot of CIOs in the practitioner and at the market, people are happy. So, I mean, are you eating your own dog food internally? Are you happy? You bet, John. In fact, if I do my job right, I'm the chief dog food taster. And unfortunately, the lab team can build it faster than I can taste it, so I haven't used all of the Silicon, I'm sorry, of the ServiceNow products, but I'm actively trying to get as much of this going internally as I can. And when Frank hired me, that was an explicit part of my charter. Do a better job using our product to run our company and be able to showcase that for our customers. So, I spend a lot of time out talking to customers. We had Matt Schimaran said he builds his own apps. Are you personating the production? No, none of Matt's stuff goes live. Not without the... All right, so you got to tell our audience the story. So, you were hanging out skiing. You knew Frank from your previous company, right? That's right. And you weren't interested in getting back into it. Well, I needed a break. We had a great run at Data Domain EMC. I did that for six years and I was exhausted really and I just wanted a break. So, I took six months off, I guess. And at that time, ServiceNow was doing great. They needed talent. Frank was after me and I kind of told him, hey, man, leave me alone, I'm skiing. And then he sent me this note. The story is he sent me this note in April that said ski season's over, time's up, right? That was the whole email. Classic Sluteman's note. And here I am. He's a very persuasive man. Right, he's persuasive in a very direct kind of way. So, success, the build-out's been great. I mean, look at the history today we heard in the keynote, the story. I mean, it's an amazing entrepreneurial success story. Founder, CEO, gets replaced. In this case, the VCs were really great and he opted into the natural thing to say, no, no, I don't want to be CEO. I want to write code. And Frank gets recruited, world-class CEO and brings the team in. And then you guys scaled up. And I remember Frank at VMworld was a 2012 on the CUBE, said, you know, it's all about scale, scaling sales, scaling operations. So, this thing we're hearing the next 10 years. So, are you involved in that discussion? Are you building the systems internally to build that next 10-year run? And what is that plan? Yes, John, absolutely. We are growing rapidly and have put a lot of focus historically on the cloud operation side that our customers depend on. But to some extent had neglected our internal business in that rapid growth phase. And so, when I came in, it was to address that problem exactly. We needed to be able to scale the company. We can't possibly hire people at the rate that our customer base is growing. So, we have to become more efficient. And that's absolutely what I'm trying to do. And it's central to our work and we're using ServiceNow technology to do that. So, you guys have a great building, right? On, was it Montague or? Yeah, Montague and 101. But now you guys are moving into a new facility. That's right. Just down the street. Just down the street, which is a beautiful building. It is. And so, does that affect your job? And then, you know, how do you transition over? Tell us about that new building. Right, it does affect my job. My team is getting that building ready for us. They're highly, you know, we work really closely with the facilities organization because we have to put the infrastructure in place. We've got to build out the AV solutions, all of that stuff, so we're... What's the coolest thing going in that building from an IT standpoint? Video conferencing, is it the... Yeah, I think probably so. You know, the communication technology, we're big. We're a pretty distributed organization. And we collaborate a lot over Webex, over Telepresence, pretty much all in with the Cisco tool set on that. And this is kind of a chance when we're moving down the street, chance to upgrade some of that equipment, take a fresh approach, and really build out the collaboration things. You know, the coolest thing in that building right now is a beautiful gym, right? But when the people get there, we're actually going to do some work, too. And so, that's what my team is trying to do for us. Just on the gym, I would like basketball courts, street hockey. No, no, nothing quite like that. Just the good weights. Yeah, all that stuff. And you know, it was interesting because when I first saw the building, it was, it's largely unfinished, but they had finished the gym. And it was gorgeous, full of equipment, the whole nine yards. So I asked, you know, is this how you, is this how you sell a building in Silicon Valley now? You build a nice gym and that seals the deal. But that seems to be part of the strategy. Well, get the traffic, hit the gym, shower at work, boom, at your desk by 7.38. You bet. Yeah, unless you've got a nice bed. All right, so what other challenges do you have going on? Share with some insight. Just share with the audience what you're working on, some of the cool things you're deploying. Well, yeah, we're doing a lot. What we're trying to do is address unstructured workflows all around the organization. All right, not just in IT, but we've built case management for HR facilities. We've built a really nice procurement and asset management solution in finance. We actually run our sales team on ServiceNow technology. We build our own CRM internally. We don't spend a lot of time talking to customers about that. It's usually not too interesting for them, but that does keep my team really busy. So it's a clean sheet of paper on that. So you did it all on ServiceNow. That's right. That's right. So you think they have a transaction system built on ServiceNow. Exactly. We've integrated deeply with SAP. It's a pretty straightforward, simple integration, but it expands the power tremendously. And the first step was kind of how we purchase goods and of course then orders come in through the CRM and we have to get that into SAP, right? So we built that out, but now you saw our announcement of the ServiceNow store. That's a new revenue stream and there's financial transactions that have to happen there. We take the order, but we have to pay the ISV. We've got to handle taxes. Also, we're putting in place a new learning management system. Again, that's a source of revenue. People pay for training. So we've got multiple financial flows now kind of converging on this financial engine that we've built with ServiceNow and SAP tightly integrated. So SAP is the system of record. Exactly. Okay, and you guys have the front end to that system. Yeah, we call ourselves the system of engagement, right? And that's, you're right on Dave and that's one of the key concepts I try to communicate when I'm out there with folks is in IT, we are the system of record. ServiceNow is a system of record in IT, but when you move into HR, they likely have an HRS system, right? And we don't want that job. We respect that role. You move into finance, you typically have a financial engine, right? So for us, that's Workday and SAP and we've integrated with both of those. In fact, the Workday integration is out of the box in Fuji, right? That's part of the product now. So the idea is you do work in ServiceNow. You process work. It's a workflow engine. It's built around tasks. That's where the employees come to do work and you push and pull information from the systems of record to after the work is done or to allow you to do the work and then after the work is done. So case in point, we pull the org chart out of Workday. It's the source of truth for our organization. If I want to route something to your boss, it helps if I know who they are this week, right? So I get that out of Workday and now ServiceNow can navigate the org chart, process the work, and then when I'm done, maybe processing your purchase request, I push the result down into SAP, my system of record. That's where it has to end up, but the work gets done in ServiceNow. So that's this idea of system of engagement, engage the employees through this workflow tool and then put the data where it needs to be or pull the data to inform them. You validate that it got there and how it got there, so you've got a complete audit trail. Right, we've got a complete cycle. The audit trail is really important. You've got all, in the case of our purchasing activity, you've got the initial request, every approval, any data that anyone's added along the way, right there in ServiceNow, audit ready, makes it easier for the person to manage that organization, but if you ever want to go back and figure out what happened, you're not jumping around, you're not looking at emails, it's all there in that record. Wow, what a dramatically different role that you're describing now that I'm imagining what your role was at Data Domain, where your dog footing was better backup. Right. No, this is transforming your IT processes. Data domain was a great experience, but this is a lot more fun because it's just, you know, it's not an infrastructure. It's modern, it's cutting edge. Right. And it addresses the needs all across the business, right? Every business. And it's in the CIO's wheelhouse. It's all business, all functions, because everybody's got unstructured work. There's, you know, marketing's got unstructured work. Take that up from, you know, put that on the web, take that down, update this collateral. If that's happening in email, you can't capture the work. You can't characterize what's going on. You don't know where the big items are. So I got a hard question for you. So something that we think about all the time. So you got you here on the brain trust table. Unstructured data inbound, lead and chance, social media is now a big deal. Obviously we're theCUBE, we're crowd chatting. As an IT person, if you look at that data, do you have systems for that? Is there, is that's lead gen is changing? Email's going away, not only on work, but like no one wants to fill out an email form. So the young workforce wants to do things socially, Instagram. True. True. So our lead engine is Eloqua, right? It's a cloud solution. And again, we've got that integrated with ServiceNow, which is so basically, you know, those kind of prospect facing systems are best of best of breed solutions. We can choose those from the various suppliers and then we bring that information in through an integration and start working on it in ServiceNow and actually follow the activity. At some point, if we qualify it, get some meetings going, it will become an opportunity. So you plug your marketing cloud into ServiceNow. So there, so that instead of rebuilding your own system, you just plug in pre-existing, off the shelf cutting edge, marketing cloud stuff. Yeah, I have a nice slide that shows our system landscape and kind of each vertical in the company. And then ServiceNow kind of across all of that with points of integration. You have fabric across front-ending, whatever you need to. Right, so back to our prayer comment. Eloqua is a source of truth for leads for us. It's the system of record, but we bring that data in and start doing work with it. Okay, you were at CIO Decisions earlier. I was, yes. Tell us about what went on there. I presume you were speaking to that audience. Well, I was playing host. So I did have a monologue at the front, but then I was just the stooge. The rest of the time. But the central discussion of the CIO Decisions was what is the role of the CIO going forward? We're in the cloud era. The infrastructure is going away. Our traditional work was managing that infrastructure. That job's disappearing. And our lines of business can stand up cloud solutions with a phone call and a credit card. So my line is, in the cloud era, everyone in the organization can get us pregnant. But IT ends up raising all the kids, right? So I get calls like, hey, I really like my cloud solution that I stood up, but now I need an integration. So that makes it an IT project, right? Or I stood up this cloud solution and now three other functions want to use it. And it's getting complicated. So that makes it an IT project, right? So your choice as an IT leader now is, you want to be the janitor? You're trying to cobble these things together, clean up the mess that the lines of business have created? Or do you want to try to get out ahead of that and help them transform the way work's getting done and be relevant by attacking work and all those functions? But the challenge is the challenge, but first of all, it's super, you got to get strategic on that business front. But Frank was on theCUBE saying, that's quite the problem that service now is solving, which is they want to give the business units the power to be creative, but has some adaptability with IT. So explain the differences. There's a nuance right there. Because what you're saying is you want IT to be proactive and strategic, but not projecting to the, say HR person, how to, when to do reviews or, you know what I'm saying? So like, let the, do you have some autonomy? Absolutely. So explain that nuance. I will. What I want to do for my lines of business is help them structure the work that's going on in their organization so they can tell what's going on so they can apply management basics, get the data to show them what's going on, help them apply workflow to address some of their hotspots, right? I'm not telling them how to run their business. I'm helping their managers perform. And I want to partner with them when they decide they want to go after a solution, I want to be there to make sure that we understand architecturally how it's going to fit in and we don't end up with this big mess, right? So we're actively partnering and we were implementing inside sales.com. My team was there hand in hand with sales, making that selection, doing the review, implementing, ah, that's my job. I'm not building product. I'm not delivering, I'm not selling product and I'm not supporting customers, right? And if I'm not doing one of those three things, I better be supporting the people who are. Well, that's how I view my job. I'm an enabler. I don't run IT. That's not my job. The IT organization's just a means to the end which is address the needs of the broader work. But back to the unstructured work and unstructured data comment, that's now freedom because now the old database models was the structure of the database would dictate the kind of work forms and structure. So that is what ServiceNow's value proposition is, right? Yeah, we have that single source of truth now with the cloud, right? We've got all the data in one place. So we don't have to be building spreadsheets to try to figure out what's going on. And we don't have your spreadsheet and my spreadsheet disagreeing and now we're having a meeting to try to reconcile our spreadsheet. And of course you made yours a week ago and mine was yesterday, so we've got a temporal problem. 10 emails went back and forth. None of that anymore, right? That's all wasted time. So these Microsoft tools have helped us tremendously to be more productive. But in the cloud era, there's another wave of productivity and that's building these structured workflows, having a single source of truth, relieving people of all that work to try to figure out what's going on. It's in the system and each of them has their own unique view. We give them a different lens into that data but they're all looking at real time information that's accurate and we're no longer arguing about what's going on. We're just doing the job. We talk about a lot on theCUBE. We're on the cusp, we feel, of a productivity renaissance and it's just going to explode. I totally agree. And so... Well, you always talk about stove pipes. I mean, that's your favorite term. That was a gone. I mean, that's like the stove pipes of different applications and... Well, they're not gone and that's part of the problem. You're flat, I think. You're a silo buster who's kind of here internally. I like that. Silo buster. Is there a song in there? Who are you gonna call? Who are you gonna call? Call IT, it's a deep puff silo buster. So I loved the email that you sent Frank when he said, I need an iPhone 6. Right, how do I get that new iPhone, right? You sent him a link. Yeah, someone asked me if that was a CLM. You know what a CLM is? A career limiting move, right? So the CEO sends me an email and says, how do I get an iPhone, right? Now I could have just gone and taken care of that for him. That's maybe what he expected, but he runs a company that's about not using email. So I just sent him the link to the portal. And then I held my breath for about five minutes. No, just link, right? And I held my breath. I was actually at a CIO conference where I was gonna be speaking and I was kind of looking at my phone, wondering if I needed to bother to come home or not. And about five minutes later, after I sent that mail, I got a note back from Frank that said, hey, that was pretty easy, even from 41,000 feet. He was flying across the country when it happened, which I didn't realize. That's fantastic, we sort it online, he had. Right, he didn't have to call, is he? No special privileges. He did just exactly what every other employee does. Go to the portal, give us the information. Workflow kicked in. The only problem in the whole story was he picked a configuration that took a long time to be delivered. So I had to hear about that quite a while. Where's my phone? That's not my problem. I should have picked one. Classic IT, that's not my problem. That's Apple's problem. You can't do a service now in day with Apple. Yeah, he got a real kick out of that and it turns out that he likes to tell that story, too. The 64 gig one, did he get the high memory? Yeah, I think that was his problem. The gold, I don't know. I think he bought a six plus and then he decided that was too big. Frank likes to experiment with a lot of different things. What's the biggest thing you'd share with folks out there about service NASCULTURE? I mean, you're a seasoned vet, you've been there, done that. Great company, certainly the vibe here. People that aren't here at the event, watching live or on demand. What's the vibe here at Service Now and the culture and the customers and some of the profiles and developers here? Right, well, I think, you know, in terms of what our customers should know about our culture, it's that we're highly transparent. As an organization, we want to be very open to our customers and we spend a lot of time showing them how we actually do things internally to make them comfortable with how we service them but also to help them implement these things, right? And it's not just me on the business side, Dan McGee's organization, massive, high volume, very mature use of Service Now, change management, orchestration, everything they do is automated, big, highly accurate CMDB. So both sides of our company love to spend time with customers, showing them how this stuff works and showing them that it's real and giving them those real examples. So I think the most important part of our culture is and it's Frank. He runs on transparency. He runs a tight ship, both metaphorically and literally on his own ship. Exactly, right. So I think that's a really important element of our culture. We're a high performance team. We have high expectations of each other. And again, you'd expect that if you know Frank, right? That definitely permeates down through the organization. That's why I'm sure he loved your email. Yeah, he got a great kick. He's not offended, he's like, great. No, he thought that was really hilarious. It took him back and the way he tells the story is we all reflexively go to email. It's just so much part of the fabric of how work gets done that we don't even think about it. And even Frank, the guy running the company that's systematically getting email out of the system when he wanted that phone, his first instinct was to go to email, right? So when I sent him back that link, it kind of set him back and what he realized is even I reflexively reached for email and my CIO kind of put that back in my face and he loves that. He loves to tell that story. Well, because you say he's self-aware. I mean, that's why I'm critical. But that's the problem with email. You think you're checking the box as the requester and it goes and you're not really sure where it goes. I did my part, I asked for a service. Yeah, what's the first thing you do after you send an email hoping to get some service? You send another one to find out if anyone got the first one. Yeah, follow up, where's my iPhone? You already got two emails going and you haven't even done anything yet, right? Nothing's even started to happen yet. And then of course, the guy who finally figures out that he has your request. First thing he realizes is, well, you only send him half the information that he needs. So he has to send you another email back to get the rest of the information. You got to email him back to give him a full, you already got four emails and he's just getting started. It's the classic cost of ownership argument on steroids because what it is, it's just so killer on terms of productivity. It is, well, you said it, right? There's a new era coming. The cloud is fundamentally different. We've historically as humans through all of time have done work with messaging systems, verbal communication, written communication, telephones. And then we got really productive because we had email and spreadsheets, right? But now we have a cloud and that's highly disruptive. I think it's not evolution. This is revolution. You have these workflow tools, you've got a single system or record. It's a game changer. And this productivity drain study that we just released, it shows you exactly how much work is going down the toilet. It's not work. How much activity is going down the toilet by people wasting time. They're cycles. Yeah. Well, Larry Page talked about how people, he thinks people will be working less than doing more productivity in an ideal state down the road with technology. It should be that way. Absolutely. Well, that's back to your scale question, right? The only way we can scale as an organization is if the work happens much more efficiently. And that's why my job is so urgent because it's quite possible for us to be highly successful selling this stuff and be crushed by our own growth, right? There's a comment on Twitter about business doesn't close and the issue that we have, and certainly we're now in this digital age, my kids are digital natives now, is that works every day. But you can be in the side of the soccer fields for my kids and I'll send a text, but I don't want to do an email thread. I can do a link and ping someone, notify back and forth. I can be mentally present for a slice of time and have a great day. That's exactly it. It's a seven by 24 world, right? So when we built this structured system for purchasing, we took the cycle time for the average purchase request from five days down to two. 60% reduction in cycle time, right? It feels more reasonable to get something done in two days than five. Well, where did those three days, what was going on during those three days? Well, somebody emailed the first approver and then maybe they emailed back at midnight, but that person didn't come in, the buyer didn't come in until eight a.m. to see that they got an approval and figure out who to send the next one to. You're losing time, right? But with a workflow engine, if you approve it on the soccer field, or if you're up at four a.m. and approve it, it's in the next person's queue instantly, right? So that's where all of a sudden those three days of ways to work. In operations research, they study the impact of reduction in elapsed time and the impact on productivity and it's enormous. It's the best, cycle time's a great metric of what's going on in your system. The notion of presence that you guys introduced at this conference, not in unified communications, it's been around for a while, presence, information, telepresence, and real time is interesting because now you have productivity, not just from a work perspective, personal productivity. You can literally have a new way because this omnidirectional world we live in is everywhere. I could be productive on my way to the airport in an Uber and not have to go through my email and scan. I could just be dealing with what's going on in real time. So I have multiple channels of reality, personal and business. Yeah, I can't wait to be deploying the things that I saw this morning to my team, right? It's just so exciting to see the mobility and to see those notifications popping up just like I get from Facebook, of hey, something just happened, you've got a notification, that little icon, or the little number on the icon on the phone. Well, seeing it happen in real time. It's going to be amazing. Well, you got somebody talking to me. Oh yeah, that's just. I mean, you love it on text. Okay, he's there. That's about as far from sending that email into the ether as you can get, right? I'm having a real time conversation with the person who's going to help me. I'm not wondering if something might happen. I'm seeing it happen right. Well, how about this? How about when you have a near real time conversation on an email, which has got to be like one of the stupidest things that we do. You send an email and then it comes right back and you send another one, it comes right back. You use Gmail, it'll tell you, there's an email on this thread waiting for you and you go, what are we doing, right now? Can we take this to a sacredest moment? That's our world. Let's get the text. I need some Swedish service now. Can you help us deploy this through our, we're not quite big enough for express, we're getting close. We're ready, we're ready, we're ready. Awesome. Jerry, it's been great to see you on theCUBE. Thanks for coming on the program. Appreciate it. What is the coolest thing you've seen at the show here? You've been the keynote, you've been moderating, been on stage. What's the coolest moment for you personally and what's the coolest thing you've seen? Well, the coolest moment for me personally was bringing John Cleese on stage yesterday. Monty Python fame. So that was a real thrill. The hardest part was going on stage after he came off. The coolest thing I've seen was what I watched this morning in the keynote. The mobility, the presence. I just can't wait for that. You know, the private instance thing is getting a lot of great reviews as well. Were you prototyping that early on internally? Well, no. And the reason is that I get as many instances as I want free any time. So that's really not that important for me internally. That's a can of dog food that I don't open up. Behind the firewall. Right. So yeah, I don't, when I'm out there talking to customers and any commercial aspects come up kind of like, sorry, I don't know. I get it all free, right? Yeah. So, but we are really excited to enable that broader community. And the store is just going to blow this whole thing wide open. You feel good about the store? You feel good about the store? Oh yeah, this is going to be great. I was sitting with the CIO. I think it was in Minneapolis. And I was talking about our share site where people could share solutions, code requirements. And I said, now we're going to build that into a store. And he said, wait a minute, you guys are going to build a store and then the ISVs are going to be able to build stuff for me. And he kind of said, I knew I bought the right product. Right? He instantly grasped the power. Ecosystem. It's intoxicating. Of what all those developers can build for us. Niche solutions that we'll never get to, you know. It's riveting. I mean, it really is powerful. Platforms beat products. Well, the thing that you're nailing to. It's very analogous to the iPhone, right? You've got this powerful platform. Apple built some apps so that at least was a phone. But then when the app store happened and the proliferation of solutions is just unbelievable. That's exactly what's going to happen. You're building on your base and your strategy is not land grabbing, right? You're not trying to go into every adjacent market, but you can with little tentacles to apps. And then the app store, what a great story. You guys, I think, and the asynchronous, the real time is so really powerful because the web is all browser based and you got mobile and everyone wants more mobile like. Right. And it's got to be real time. Yeah, that's going to be a big, big step for us to get the mobility aspects really working well. What you saw this morning, that's going to be huge. So when are you going to take six months off and go skiing again? I don't know. You're a public company. I'm not going to say that on the air because Frank will probably be watching, right? So that's going to be a while, I think. Great. What's next for you, new building? Just give us a quick update next six months or a year. What's your roadmap look like? Well, like I said, we're systematically going around the company trying to knock stuff down. I'm really excited that our HR team is actually starting to use the service creator and build things on their own, right? Because I cannot serve the needs of the company fast enough with my resources and my peers get frustrated that we can't knock down all the issues. And oftentimes we're focused on the big stuff and we can't take care of the little stuff for them. So different parts of our organization are starting to take matters into their own hands with that service creator product. And my HR team has been working on a non-production Fuji instance, building out solutions already. So I think that's going to be great. That's going to be a big thing for us this year is enabling people to start solving their own problems and doing that in a controlled manner that doesn't break things. It's going to be fantastic. We're adopting our own portfolio management products and starting to run a titership that way. So we've got all kinds of things to do. Now moving down the street, yeah, that's a big one for us. But my team has been highly involved in our global expansion. It's not just moving down the street in Santa Clara. It's standing up offices all over the world, expanding sales offices, building new support facilities. We're very busy. The roadmap of worldwide expansion has been really surprising. In terms of my job, that's probably the thing that surprised me the most coming in. And the last time I was a CIO, it was in a rapidly shrinking company, right? So doing it in a rapidly growing company, what I didn't see coming was kind of that aspect of our global footprint makes things really complicated and it's a big job for us. Jay, thanks so much for sharing some time and insights here on theCUBE. Really appreciate it. Jay Anderson, CIO service now. We'll be right back after this short break.