 Okay, we're back, this is Dave Vellante. We're live day one at Knowledge. We're here at the Ariya Hotel. Jeff Frick and I are going to be going all week. This is day one, we'll be going tomorrow. All day, we've got a ton of customers coming on. Half day, Thursday. This is theCUBE, Silicon Angles flagship product where we go into the events. We bring you the best guests that we can find. We extract the signal from the noise. Jimmy Fitzgerald is here. He's the Vice President of Global Services at ServiceNow. We love those of you who watch this program regularly know we love the services angle. It's where value is created. Everybody overlooks the importance of services. Jimmy, welcome to theCUBE. Thank you, Davis. Thank you for having me. You're welcome. So services is, as I say, it's this really, it's like the secret weapon of many companies. Of course you guys are a platform that's software as a service. So you have this services layer on top of it. I'm very interested in learning more about that and you have this burgeoning ecosystem. Jeff and I were last night just walking around the partner and exhibitor pavilion talking to people and you've got this ecosystem that's exploding. So tell us about services at ServiceNow, your professional services organization and we'll get into it. Okay, perfect. Well, thank you for having me. And you must have talked to Frank because in our last company, All Hands, he actually used those words. He said that services had now become a strategic weapon for the company. And I'm fortunate enough to lead a team of about 220 people at ServiceNow. And to hear our CEO recognize services as a strategic enabler for the company is obviously a significant milestone. So we break it down into kind of two distinct areas that we focus on. And the first is as we engage with our customers and that's around time to value and amount of value. And I'll speak to those maybe a little bit deeper. And cloud is changing the fundamentals of how enterprise software is applied. So our whole value proposition is, you buy our product or solution and you should be able to get to value in a fairly accelerated fashion relative to maybe some of the legacy vendors. And I tell customers all the time, if they're not live within 90 days with some level of our functionality, they're a red account. So we have to encourage our teams as we're implementing the product, we have to push our customers to think about 90 day cycles and what they can implement in 90 days. And then they repeat. There's no end to a good implementation. A good implementation may never end because there's always new use cases that you can bring into the platform. So acceleration around time to value is a really key thing for us. The second is the amount of value. And so if you think of our platform, it's got a very wide application suite. And beyond that, you've got the platform and how the platform can be leveraged for line of business. So typically customers will start a program of work around some subset of the application suites. And we want to accelerate that time to value. But then as a SaaS company, we really want to continue to grow our footprint in that customer and make them more and more successful. So we're always looking at the amount of value. So across the application suites, are they using 40% or are they using 90% of the application suites? And then in the platform area, how do we educate and enable the customer to start thinking about use cases that they can really leverage our platform? So that's all around how we work with customers. And you know, it's very easy to get excited around the ecosystem at ServiceNow because we're very fortunate to have some great partners. And so a large part of our charter in the professional services organization is how do we bring quality partners like KPMG, like Cloud Sherpas, like fruition to the ecosystem, and get them to invest in training and certification and high quality deployments for their companies. And that's a key area of our focus. How do we enable an ecosystem to really be part of our extended family and represent us and our core values? So back to time to value and amount of value. When I talk to partners and they want to know how to be a good partner, for us it's very, very simple, right? There's some necessary training and certification, but it comes back, you need to live the values of a SaaS company and of ServiceNow. And that comes back to, again, time to value. We want to know that you're doing implementations with rapid acceleration, and then that there are high value, high impact implementations for our customers delivering value. So I want to come back to those two sort of metrics that you're driving, but before we do that, so help us understand how you manage the inherent conflict between what you do and what your partners do, or maybe it's not an inherent conflict. Where do they pick up and where do you leave off? Good question, good question. So I would like to think that there's no conflict. We deliberately want to be focused on enabling the ecosystem and being a very well-respected partner as a company. So if a partner is in a particular account or targeting a particular account, we will not touch that account other than enabling the partner and bringing a category of offerings around delivery assurance or delivery oversight to make sure the customer, the partner, and service now are working well together. Things like doing configuration reviews or performance reviews to really enable the partner to be successful. But the right of first refusal, the partner has brought that customer to us, are they the trusted provider, trusted advisor? We will not go near those customers and we're really there in a supporting mode. And then we've also looked at what we're good at and what we're not good at. If you think of a successful transformation or a successful outcome for a customer, it starts with having a great technology and that's what we bring. It also requires strategy, requires governance, it requires people, and it requires process. We refer to those collectively as the five domains of best practice. And we've worked with some of our biggest partners in really defining what is the swim lane we want to be within across those five domains of best practice and what is the swim lane and we really want our partners to bring to those areas. So I'll pick on an example, I'll pick on one domain in the area of people. So before you ask, so I missed them. Strategy, governance, people, process, which one did I miss? And technology. And technology, that's right, okay. That's wonderful. Our wonderful world-class platform. How could I forget that? Okay, sorry, you're going to give an example on people now, sorry to interrupt. So let's go deeper on people. So when we talk about people, in our swim lane, we want to provide world-class training to the technical project team, right? How to be a successful system administrator, a successful developer, a successful architect on the product. And then a second area is we want to be able to provide the necessary training to the process users and the end users of our application. So as an end user engages with the application, we want to make sure that they're properly trained on how to do incident management, problem management, change management. And that's our space. It's core to the product and it's what we're good at and what we should be really setting the gold standard around quality. And any large transformation requires a very large focus on organizational change management. So the area of OCM, it's not core to what we do, right? It's not a competence that we have in spades. So we look at our partners as this is capability that you bring, right? This is what you do. When you have organizational change, and you have possibly job changes. And in terms of people's roles changing or people's roles going away, that's not a competence that we bring to the table. And we very much rely on the partners to really work with us and bring that competence to the table. All right, so there's a little bit of overlap there, but the good news is not a wide gap between your technology implementations and best practice and what your partners are doing. Like I say, there's some overlap, but it's better to have overlap, small amounts of overlap than giant gaps, right? Okay, I want to come back to the time to value and the amount of value. Do your customers, because it's kind of... The business case is it's sort of obvious, but if I have to put it into dollars and cents, I mean, certainly I could quantify the cost savings and maybe the asset management. There was some of the reclamation of the underutilized assets and things like that. But the value that you bring is telephone numbers on the other side, some of the soft dollars. Do your customers typically go into an implementation with a really solid business case against which they can compare the results? Good question. I think we have, you know, there's no one customer, right? They come in different shapes and sizes as we all know. Some customers will go back to maybe that the partner ecosystem for a moment. So I can think of a very large pharmaceutical company where we were partnering with one of the global systems integrators and they were very much in front loaded in that process where they helped that customer put the business case together for a successful IT transformation and were about a year and a half into that program of work and it's been very, very successful. And it was really around the business case that the GSI had led the customer to upfront and we have many examples like that. And in the other cap, many, many customers come to us with a two-take, right? So they have this tooth that needs to get removed. Dock. And you know, that's a great way to get into an account because they're filling the pain of another provider of what we do, right? So in that case, it's around, I need to get off this other platform. It's a legacy application. I can't upgrade it, my users hate it. I'm not responsive to the business. I've got this instant sprawl happening across my organization where I don't have one version of this product. I have a hundred versions of this product. So, you know, in that case, the business case is very, very simple. There's a lot of pain and there's a lot of cost. And therefore, what we're doing is really taking the TCO down and it becomes much more of a, we can get a better experience, we can go faster and it costs less than the incumbent we have today. That happens a lot. And when we do that, and we really need to focus on, and when we get into the customer, we get the solution live, how do we make sure we then continue to provide more and more value going forward because customers have sharp memories. So, as much as the two ache hurts, when it comes one year, two years, three years down the road, it's not front of mind for them. So, they've kind of forgotten about that and they still want to know the receiving value from the platform. So, maybe we come in more under a TCO banner, but then we, as an account management team, as a team, we really need to focus on how do we evolve and grow that value over time. Yeah, so I mean, I see obviously, I would think time to resolution for incidents is a big metric for your customers, and it's clear that you guys can compress that. And I would also think you eliminate a lot of rework and a lot of mistakes and maybe a lot of double work. So, I think I could probably develop a business case and quantify the impact of that. Talk about how you compress that. I'd like to specifically understand how you accelerate that. I'll give you a good example around on the Frank's keynote today, we had a panel discussion at the end with eight customers and KPMG. And KPMG actually is a customer, so I guess nine customers. And one of the customers in there, as part of their transformation, and it was a multi-year transformation, they actually doubled the customer satisfaction measure of their customers. They reduced resolution time by 50% and they reduced the size of the help desk by 50%. And it really comes core to those tree value metrics that we bring to the table. Consolidation, automation, and kind of consumerization. And we really have to work with customers. We have an offering in the services organization around a health check. So we actually come into customers, whether they're going through the implementation or they're a live customer, to really understand where are you extracting the value today? Are your trends across time to resolution improving and can they get better? And as partners, what are the things that we can jointly do to further drive those trend lines in the right direction? So I think it really has to be part of our DNA and what we do is to really continue to drive further and further value into our customer base. So Jimmy, can you talk a little bit about as you're expanding the value delivery, as you said, after the toothache has gone and everything's coming along. Kind of what's the path of that? Is it taking over more and more of the kind of core processes in the IT department or we've heard you're starting to venture out into HR and some other functional areas. Kind of what can you tell us about how it's been historically and is there some changes happening underway now? Yeah, I think there's certainly going to be some changes in terms of things that we can do maybe to continue to mature in those areas. What typically happens is the automation suite has many different applications. Incident, problem change, release, asset, financial, IT costing and so on and so on. Customers typically start with a subset and we'll work with them on what that looks like. And then when they're live, they'll begin to understand that the platform is truly a very powerful platform and then they have still legacy apps or other use cases where it can be applied. So we'll start to go from phase to phase and go into other areas. Customers start in different ways with us and I'll go back to those tree value metrics at the highest level. Consolidation, consumerization and automation. Some customers will start with, I've got 10 legacy applications. I've got 50 help desks. My focus in year one needs to be on consolidation. And then we'll get them live, get them successful and then we will go back in there and go, okay, now let's talk about the automation agenda. Do you have an automation agenda or can we come in, spend some time with you? We call this a discovery. Go do a giant discovery with our champions in that account and really look at what are the top 10 things we can do from bringing an automation to the table and starting projects around that or equally consumerization. And equally if we got into the accounts, maybe in many customers they can't move the legacy applications immediately for whatever reason, political or otherwise and they want to put a better service experience in front of their customers. So let's start with the consumerization and we'll really put service catalog up to their end users and really kind of be a veneer between easy to deal with IT too and the complexity in the back end. So we'll start with consumerization but then when we get to phase two, we'll totally get across to how do we consolidate those legacy apps into our platform. So it really depends on where the customer's pain is on day one. And then it's usually one of those three and then you- It's always one of those three and then we want to cover all three in time. That's exactly it. So how do- Go ahead. And we really look at, you know, as we look at our account strategically we really need to be delivering value in all three. If we want to get to delivering the highest level of value for our customers and being successful long term we need to be delivering value across all of those three metrics. So how do you capture the knowledge, right knowledge? How do you capture the knowledge of all this experience and how do you share that with your partners internally and externally? Yeah. That's hard, right? So, you know, if you think about the last couple of years and I'll talk about my team specifically in the services practice we've gone from about 50 people to over 200 people in the space of, you know, 18 to 24 months. So that's a lot of growth. A lot of growth. And you need to get those people on board, get them trained, get them certified and put them out there working and adding value to our customers. And we're all running, running, running very fast. And so we've, I'll talk two different answers maybe to that question. One is something very simple. People want to be rewarded for when they do special work. Right? We measure our people across a number of things but we actually measure them across employee growth and innovation. So we're asking them to take the time when you do something that maybe is new and can be harnessed in other customers or other places bring that innovation back. And once a quarter, as part of an all hands that I lead we actually do service wow awards around innovation. So where have our employees driven a specific value and then we bring that back in? How can we package that up and then take that to the rest of the services practice and indeed the ecosystem? So that's something that we do. And another one is our implementation methodology is referred to as start now. And start now is actually our implementation methodology. It's actually built on our own product. PPM, SDLC and Agile Scrum. So when we actually start an implementation at our customer side on day one the customer's receiving value from our product. It's very, very, very powerful. We launched it at Knowledge 12. Every one of our projects globally and we're leading what start now. And so I'm getting some fantastic results. It accelerates time to value. We get lower variation on quality and so on. We're now taking the next step which is taking start now with the implementation methodology and taking it to the ecosystem. So we're working with our largest partners and our most strategic partners and really going, you know you've got all got your own implementation methodologies. Ours around the technology implementation is world class. We're continuing to invest more and more in it. We're asking them to adopt our implementation methodology and really put their IP around that from a people change or a process change perspective so that together we can be more successful. And that allows us as we get innovation as we get best practices it's being built into the methodology. So whatever we find it's quickly getting built into the methodology everyone gets to benefit on a global basis. Over the next 12 months it's going to be a huge area of focus is getting that out to the ecosystem. I was going to say, how's that being? How's that being accepted? It's still pretty new. You know, it's still pretty new. I went to three partners initially and had this conversation with their leadership and in every one of those meetings it's being fantastically received. It's like they're excited because they want to bring best practice to their customers. They want to reduce variation so they absolutely want to do it. And what's really good is they still can differentiate because they can still put their IP around our methodology. So we're allowing them to do that. And so far the response has been really, really, really, really good. It's terrific. Hi Jimmy, well listen, thanks very much for coming on theCUBE. We're out of time. Really appreciate the services and angle. As I said, we'd love that here on theCUBE at Silicon Angle Wikibon. So thank you very much. Thank you, David. Thank you, Jeff. Thank you. Keep it right there, everybody. We'll be right back with a practitioner and a ServiceNow customer from Lenox International. We'll hear about her story and how they're using ServiceNow. We'll dig into some of the challenges that they faced, how they're transforming their organization. This is theCUBE, Silicon Angles product where we bring you the best guests that we can find. We're here live at Las Vegas, the Knowledge Conference. ServiceNow, we'll be right back after this message.