 Live from Las Vegas, Nevada, it's theCUBE. Covering Knowledge 15, brought to you by ServiceNow. SiliconANGLE, Wikibon, we'll be out for the events and starting soon, so otherwise I'm John Furrier. And that goes Dave Vellante and our next guest is Davis Stevens, VP and general manager of service management. ServiceNow, welcome to theCUBE. Thank you, it's great to be here. Great to see you. So you have on the stage on the keynote, give us the update about service management across the universe. What's changed? What's hot? What's trending? What's the conversation? Well, like I covered this morning, IT just continues to crush it in service management. It's just amazing what they've been able to do. They've changed the way they interact with the rest of the organization. And what else is happening is, the rest of the enterprise wants in. They're seeing what's happening. They want all these efficiencies. They're starting to look at themselves not just as record keepers. Talking about the operations groups HR facilities, legal marketing, finance, all these areas. They're putting in these systems. They're beginning to automate the structure of their work, lift it up out of email. It's really great. What are the top conversations? You can stack right the top three conversations you're hearing from customers and within the industry from thought leaders around the service management piece. Is it technologies and this is law? What are the top three conversations? I mean, I'd have to go with just one. I'd say that when they start thinking about themselves differently, when they want to interact with the enterprise in a different way, they're having to go out and just sort of change the way they work. They're saying, what is work life like in the future? What if my enterprise is just a collection of services? What does that mean? How can I take all these different business services, apply service management, and maybe I'll manage my business like a Series A investor, okay? I'm going to scale up the services, scale down the services. I'm going to switch out providers if I need to. So it's really that trend where the enterprise begins to look at itself differently and say, well, you know, in the future, let's move Jack to 2020. What are things going to be like, okay? It's so funny. We live in Silicon Valley. There's a lot of things that's useful. But he's implugged into all the Q, early adopter conversations. So two things. Agile has been around for a while. People are agile. You don't want to be like this cloud. We're like Amazon. But a new one that's hot right now is micro services, which really speaks to the apps now. So what does that mean to the enterprise? Does that mean there's now a new service? There's now a micro service? A service of a service? If everything's as a service, what does this all mean? What does it expand on? Help read the teas leaves on this micro service? Is that more apps? Well, I mean, a lot of people heard Frank this morning talking about what it's like when work happens through email and how e-business is really sometimes printing out a form, filling it out, and then scanning it back in. That's a great example of a micro service. Or mailing it. That's even worse. Mail mailing it. If people still have those services. If you still have those Manila envelopes out there that interoffice mail, it's time to get rid of that, okay? So each of one of those things becomes a service. I don't care if you're joining a company for the first time, you're filling out a confidentiality agreement, you're filling out all these forms. When you bring that online and you apply service management, things get complicated pretty fast. There was a McKinsey study that said an average enterprise is comprised of more than 800 of these services. And you need tools like ServiceNow in order to manage that. So the old days, services were bound to the applications or and or model the consistence. And what you're saying, if I hear you right, is that a service, a micro service could be part of a service that talks to another service. Is that what just did the confidentiality? Yeah, you have a fabric of all of these services, a mesh if you will. And they're just driving tremendous efficiency gains. So I want to ask you, you showed a diagram yesterday at the analyst meeting, it's a set of concentric circles, which I think really well describes ServiceNow's evolution. So in the center, you had IT service management. And then I help people understand, if you're not in IT, like you hear about service now, you go, what do they do again? And I really get it. And then, but the outest parts of the circle were self-service and catalog and request and social and there's asset. And then the outer part was facilities, IT, legal, finance. What's happening there? Describe that dynamic in that concentric circle and relate it to your business. Well, first off, ServiceNow's blue collar, okay? So we're all about automating and structuring work or where work happens. That's what people use ServiceNow for. So we started in IT service management, those concentric circles, they were representing kind of the service management movement. And it's great that people are using the service now for this, but service management itself is automating and structuring work. And that's going from just an IT thing to being used in all these other corporate departments, legal, marketing, finance, HR facilities and so on. And we think it'll extend much further even beyond the enterprise's four walls. And the same service management concept, automating and structuring work has applied to customers and partners and suppliers and more. So you gave three examples. You talked about project management, governance risk and compliance and financial management. I wonder if we could, because everybody understands project management. Everybody's been involved in a project. They might use a tool, project management tool. Everybody uses base camp, small businesses. Okay, so how is service management different? And why is it better? So service management is the work request process. And then what we've done at ServiceNow is we've added these other tools that enable you to manage your service a lot better. And project portfolio, GRC and financial management are three of the most important. So for project portfolio, what's happening in the enterprise is work needs to be done faster than ever before. And the old ways of working in project management where you have a thousand task Gantt chart with all these dependencies. Microsoft project is an example or maybe not even. Maybe other more robust project management tools. People have these heavyweight tools and all of a sudden now instead of getting one project done every year, they've got one project to get done every day. So they need a whole new approach. So we've really focused in project portfolio and making it work for the project teams, not just the project manager. Okay, so let's unpack that a little bit more because we do a lot of project management. And like I said, we reference Basecamp, which is great software. It's modern software, it's lightweight. You can't do a lot of sophisticated stuff with it. But what's different about, I said service management, I meant what's different about ServiceNow. And that specific example. Good software, but is it because you said something yesterday, we're trying to make project management software about the team, not just about the project manager. And in my experience with project management, it's the project manager who uses the damn thing and it's nag wear. It's nag wear. It's not team oriented. So what's different? I'm going to keep asking that question until I get it. You have to understand, so tools like Basecamp, they're awesome. They're focused around team productivity. They're used by a lot of independent businesses. It's smaller businesses too, that's why it works for us. That's good stuff. When you look inside the enterprise, you don't see Basecamp, okay? You see tools that are very heavy weight and they're used by kind of command and control PMOs. It's like Soviet Union era software, okay? The Politburo. Yes, so these guys go in and they spend their day in this project management system. I'm talking about project managers now. And the project team members, they're nowhere to be found. Oh, they hate it. They've never even logged in sometimes. And so the project manager goes around chasing project statuses, right? They think that's their job. You called it nag wear. I couldn't call it anything better than that. Uh-oh, yellow. Yeah. Red. Red. Well, that's the story of every project, isn't it? Green, green, green, green, green, yellow, red. You can call that. What about the competition? I mean, I'll see you guys are highly competitive Markers, but the cloud is creating a lot of advantages for folks who are working hard and adding new features, very cloud-like. So rewards time to value, right? That's one of the big things we've heard from Frank. What's your view in the competitive landscape? You don't have to throw the competition in the bus, but what are you guys doing differently than the competition? Well, we just make it really easy to use the software right away. You know, make it so you can step in incrementally. You don't necessarily have to implement the whole thing. You just get in and get started. You know, and there's lots of tools out there that we use as individuals. And I'll stick with, we talk about project management. We'll get to GRC and financial management, but just sticking with project management, there's a tool called Smartsheets. It takes about 30 seconds and you're typing in your first project. That's the design goal for the tools that we introduce. You want to be productive right away. People don't have time for, you know, a month or a year-long implementation to get up and running. So everything's a service and you've got the service piece of it. What are some of the stats? Cause you have a lot of things going on, right? A lot of things flowing through the system. Some facts and figures. Yeah, just, I mean, can you give us an order of magnitude of the kind of scale a large customer have and then down market what a use case would look like, you know, by the numbers, you know, both the ESPN, I would love that slide, by the numbers. Yeah, so, you know, step you through some of the facts and figures from this morning. You're looking at over 450 pretty large enterprises went live with ServiceNow for IT Service Management for the first time in 2014. And, you know, when they went live, they drove just massive adoption of these systems. So at this point, you know, we get about 11 million users interacting with ServiceNow on an annual basis. And we cited some workload statistics and it's close to 200 million incidents that are created in closer to this platform every year. So it's kind of off the charts. I mean, it really is. It's a real time, talk about real time. Because Frank brought this up in his keynote. Real time is a big part of the future. How does that all play into that? Cause you know about a lot of notifications, a lot of stuff happening. New things are being created. Apps are going to apps. So, you know, how many directional interactions? It's kind of crazy how not real time businesses are. You know, and you think about it. You go into the enterprise and all the stuff, it's a, you know, the land that time forgot or something. So you're looking at data. It's a week old. It's two weeks old. Meanwhile, maybe you've got, you know, CNN up. Okay, so the goal is really simple, which is you want CNN for your enterprise. You want to get all this data in in real time. And that enables you to make different decisions about how you run your business. And that's really if you- That's critical for you guys. Cause you guys are all about, you know, in the moment, right? You have a lot of transactions going on. So if you're not built for real time, there's tons of transactions happening. No, absolutely. I mean, real time is important for an enterprise. It's important for managers at an enterprise. You know, if you're looking at a report that's a week old, what the heck are you going to do with that? You know? I want to talk about, so when you talk about project management, let's talk about GRC because GRC I think is more complicated because GRC is how- We made an acquisition in this space. Everywhere, right. In Treyas. In Treyas. I can never say that. In Treyas, right. Okay, so, which is another interesting discussion. So talk about how service now is different for GRC. Give it, maybe give us an example to help us rock it. Sure, GRC, governance, risk and compliance. What could possibly be more interesting than that. Boring but important. Yeah, it's so important in the enterprise. And, you know, up till now, I like to say when you look at most GRC offerings, they're standalone and they're sort of a bunch of promises and word documents. So what people have traditionally done is they have to participate in these audits. The audits take a long time. You know, I go into the system and say, I promise not to be a bad boy. I'm going to follow this rule and that rule and the other rule and you attest to things. It's very expensive to, you know, to complete these audits. And I'm just not sure that you're really governing your enterprise if, you know, what you're doing is standalone. If it's not tied into the actual work processes. So, you know, our thesis for acquiring in Treyas and the way we look at GRC is differently. We think that, you know, a good approach to compliance and, you know, risk and the other elements of GRC is to actually do that in the work process itself. We call it integrated GRC. You take performance-based controls and you put them into the actual work product, the incident problem change and so forth. I give an example, which is Sarbanes-Oxley and Sox, you know, these Sox rules. I didn't know this, you know, Intel maybe a year ago, but there's a Sox rule that says that for certain types of changes in your enterprise, you need to complete a server backup. Makes sense. Now, how are you going to build the evidence that you actually did that? In ServiceNow, using our GRC product, we can automatically add a task to the changes where that applies and collect that evidence. There's nothing else to do. You know, you got all the data you need for your audit right there. If it wasn't backed up, you see it wasn't backed up. Yeah. If it was, you can see that it was. So how would it work? And it's real. And how would it work without ServiceNow is, Joe, did you back it up? Yeah, Joe. Do you attest that? Oh yeah, no, let me do it right now. In 2014 and blah, blah, blah, that you always, you know, work for. There's a log somewhere that proves you backed it up. Yeah. Yeah. Absolutely. So do you just take all of that out and you integrate GRC straight into the work management process? It's a brand new approach and we think it's really good. When you, so here's the interesting part about ServiceNow's acquisitions, because you have this architecture with a single CMDB, you can't just acquire any company and stuff it in there and say, oh, that's part of, we can't do the CA. We wouldn't, yeah. And CA acquisition strategy. So how did that integration work? So, talk about that. Well, Intraeus was one of the top GRC implementers that we had in the ServiceNow community. ServiceNow, so it was already integrated. It was. And in fact, they had worked with over 60 of our customers. They were joint customers and they had taken what we had built in the platform for GRC and extended it much further. They had developed a lot of domain expertise in GRC and joining forces with Intraeus, bringing them into ServiceNow, really accelerated our investment in GRC. So your value prop in GRC is you actually get it done and you can prove you got it done. You can interact with the auditors with confidence and is there a cost element as well? There must be. Yeah, oh, it's huge. I mean, examples are maybe an audit before ServiceNow takes eight months and after ServiceNow takes two weeks. Oh, there you go. What's an audit cost? 50 grand? Well, eight months of the team working on that attestation and all these Word documents, that's expensive. You know, it's opportunity cost too. It's not just outright money. You got to be working on other things. What about financial management? That's another example. Yeah. Maybe describe sort of the state of financial management. I love that. How do you guys fit in? Yeah, no, so financial management, you know, the challenges there are just so simple. You start with IT, okay? They, the CIO of most organizations, they have no idea how their money is exactly being spent. They're kind of flying their business in dark, flying it blind. They got a capital budget. They got an operating budget. They got a lot of labor costs. Where's that labor being applied? And so, you know, what they want is they want insight into their spending. They want to be able to, oftentimes they're under a lot of budget pressure and they need to bring their costs down and they need to be able to defend their budget to the CEO. And there just weren't any tools out there that did that. In fact, we surveyed our customers and what we found was less than 10% were happy with the approaches that they had, with the tools that they had available for financial management. So we stepped in and took a shot at it and I think we came up with something pretty cool. So what'd you come up with? So what we did is we're a single system of records. So we built financial management right into service now. So the way it starts is, well, I need to explain a concept. First, there's financial accounting. That's what you do in your ERP. You decide, like, you go ahead and close your books. You get all your numbers together. You talk to Wall Street, see how things are going. That's one type of accounting. There's another type which is management accounting. This is to get insight into what's going on in your business. We work on that management accounting thing. So we'd start by taking your actuals from your ERP and then you build a cost model in ServiceNow. And previously, a lot of organizations, they have something called the arbitrary IT tax. They say, hey, you're the sales organization. You seem pretty big. Maybe you're gonna foot 40% of my bill. And sales is like, what? How does that work? I don't quite understand this. So with ServiceNow, you have all this data on activity, on the project work you've done, the incidents, problems, changes, the server data, the CMDB. So you write these rules that allocate costs based on usage. It's true activity-based costing. And then you use the reporting to track your cost outliers. This reminds me of network management back in the old days. Remember when devices on Ethernet were connected and they grew, they'd have probes, you'd have active data, you'd have passive monitoring, auto discovery capabilities. This sounds like, with data and services, that concept is now going mainstream for services. I mean, it sounds like you're describing a management system. Yeah, it's something like that. And it's really amazing. You know, when you have the data in ServiceNow already, and you can run that allocation engine, it just takes, it's effortless to begin to get insight into what the source is spending on. Share some customer stories. So we'd love to get the customer perspective because you're out in front of customers all the time. You have new requirements, ship in new features, being nimble, agile, all that good stuff. Share where customers have been winning with you guys. Give some examples where they've moved in either. I'll give you kind of one that you may not hear at the rest of the conference. So one of my favorite customers is Invesco. And when I meet with them, it's usually in Hyderabad. I'm in India. Go to their offices there. They have a big bet on ServiceNow. They're using ServiceNow for IT service management. They're using it also project portfolio, some of the other modules. And they've got some really great initiatives at Invesco. One of them is called Good to Great. I just love the name of that thing. So they said, you know, this is all good today, all right? But that's not the bar for us anymore. We want to make all of this stuff great. And under that one initiative and one banner, they have a whole series of programs that they're driving with service management and project portfolio to improve the way they work. Well, they really appreciate coming on theCUBE and sharing the information and spending some time with us. And great data, got tons of stats and sharing some insights. We appreciate it, enjoying the conversation. We're here inside theCUBE Dave Stevens, VP General Manager of Service Management at ServiceNow. This is theCUBE. We'll be right back here live in Las Vegas for no 15, ServiceNow, we'll be right back.