 This is Dave Vellante of Wikibon.org and I'm here with Jeff Frick. This is Silicon Angles, the Cube. We're here at Knowledge. ServiceNow's big customer event, about 4,000 people. We've been going wall-to-wall all day today. We had about 14 or 15 interviews today. We're at it again tomorrow. Tomorrow's a big customer day. We heard from some customers today. We heard from Lennox and a couple of others. But tomorrow is really the big customer day. We had Eli Lillian today. But tomorrow we've probably got six or seven customers coming on. Very excited about that. And then Thursday, a couple more. So, Jeff, I feel like by the end of this week we are going to sound like broken records. I mean, the pattern is very clear here. IT is being managed today with a collection of spreadsheets, legacy tools, gut feels, very inefficiently, and ServiceNow, drop it in, and things change. We're hearing that consistently. It's the cobbler's children's syndrome. IT is not being managed like a business. When you drop ServiceNow in it is, good things start to happen. The perception of IT changes. Companies spend so much on IT, it seems like sort of a no-brainer that if you can improve the efficiency by which you manage IT, it's going to drive efficiencies in your business. Sounds good. It's really an exciting time, I think, because what we're finding is that in the past maybe the cobbler's kid had no shoes and didn't get the time. And then we had this whole rise of the shadow IT movement because people just put their head in the sand, and IT no longer had a captive audience within their own organizations to deliver infrastructure. But it sounds like with ServiceNow and some of the more progressive CIOs are really saying, hey, this is a new world. We've got to live in this world. We've got to embrace the cloud. We've got to embrace services. We've got to embrace delivering IT really to customers in our organizations because we have to compete with Amazon in a credit card. And now we've got the tools to really take a transformative position and take advantage of the best of what we've seen kind of in these last couple waves of technology in the hyperscale, in the cloud, in the integration, in the rise of the developer. We've barely talked about the community of people building third-party apps on top of this stuff and they've rolled out their new app development tool. So it does sound like there is a path for progressive CIOs to kind of get on the program if they so choose. So this is the segment. When we do our intro and our summary of the day, we try to sort of go through, okay, what do we hear? How did the messaging from the company who's hosting the show match with what the customers are telling us? I think service now gets very high marks, but we also like to use this segment to say, look, these are some concerns we have about the company and it's hard to come up with a list of those concerns. My biggest concern is can they keep growing as fast as they're growing with Frank Slutman at the top? I have no doubt that they can. I mean, this company doesn't make money and Frank's philosophy is to put the money into growth of the organization. There's so much upside. They're under-penetrated in the global 2000. They're under-penetrated overseas. He's going to keep throwing gasoline in the fire and really try to take this thing to the moon. I guess if I had to look at some concerns, I think in a way there's another opportunity which is the whole value equation. I think that the value that their customers are getting out of this is so blocking and tackling. It's so basic. I think there's a much greater. So maybe when they hit a billion, that's the next wave. It's how to really affect value throughout the organization, not just value within IT. I think indirectly service now is affecting business value outside of IT, but the real nut is within IT. But I think there's so much more upside there, especially as they start to expand their platform into new areas. And I just think this notion of the value that IT brings to the business is so much greater than a couple of points on TCO. And as you said, there's still so much turf out there that you have to be conquered. They definitely had some very large customers on the panel earlier today, but when we were out last night, we were talking to a lot of retailers and companies that you wouldn't think of as having a really large IT organization that are here kicking the tires and deciding whether to move forward with this, which I thought was pretty interesting. So it's a huge opportunity. On the financials, we're going to have the CFO on later this week, and maybe the net net at the bottom line has brackets on it, but if you look at the top line growth on the revenue side and you look at the top line gross margins and it's a public company, so you guys can all jump out and check the 10Q and the 10K. It's phenomenal numbers. And of course the other one that you brought up earlier tonight, the low weather numbers, what's the customer retention? Because if you've got a land and expand strategy, the only way you can successfully execute that is to really deliver a happy customer. And I think it sounds like they're doing that well and it sounds like they've got a great team put together, the fact that down from Sequoia stayed on board, didn't leave post-IPO. Doug Leone, he wants to stay in the ride, it's a good signal. I guess the other concern would be competition. ServiceNow has laid out the playbook so you're going to get people mimicking them and then we heard from Fred Lutty, great, I hope that happens. That'll make us better because new people will come in with new innovative ideas and that'll make us run faster and let's see, maybe they can beat us. Our challenge is to stay ahead of those guys so they welcome the competition. It's a great story. I think they're in a tremendous position right now. As you say, I think the other challenge that always occurs with a fast growing company is can they maintain the culture? Frank is a pretty unique guy and there's definitely a spirit here. There's a consistency in the culture that you see but as more and more and more employees come in that weren't part of the founding team and they continue to expand their base. Can they really keep that kind of solid pursuit of customer satisfaction? ServiceNow had some slight reorganization of its Salesforce to focus on new logos versus existing accounts and I think they did that to sharpen focus and I think they're trying to be pre-emptive to try to be able to maintain that growth. They're guiding I think it's 60% growth in the coming quarter, off a quarter where they did 80% growth so I think the other concern I guess that would have is that they lay down some quarters that are going to be very tough compares so they have to keep penetrating into that global 2000, they have to keep expanding the platform horizontally, they have to expand overseas but that's all execution and Frank has consistently demonstrated as a business leader, Frank Slutman that is, that his organizations can execute and they seem to have the resources they've got the cash, it's not unlimited again, a big whale comes in they could somewhat disrupt the market but I don't see that I think that these guys can move faster and maybe there's some startups popping up every now and then but these guys are getting embedded and I think events like this are just going to continue to expand the brand. It's funny all the events we've been in we've still got a lot of our summer tour still to go but kind of core IT folks they're not viewed as sexy in terms of new market opportunities and underserved class there's a lot of talk about big data and big data scientists and cloud infrastructure but really in terms of working with the folks on the ground that are making things happen and getting stuff done it's kind of interesting that that was the underserved market that they decided to build an application to deliver this platform I think again the other kind of potential threat is as all these different SaaS applications are delivered into the enterprise and they all come in on a different entry point on a different beach as their expansion start to bump into one another and that's something that time will tell but I think there's clearly enough opportunity today that they got a lot of a lot of great revenue opportunity in front of them Yeah and I think we didn't get into this today but we will tomorrow the whole is service now a platform as a service is it a software as a service how does it relate to other platforms as services particularly Salesforce I sensed from one of the guests actually it was Marina it wasn't Marina it was the woman from Lenox we'll talk about Salesforce so maybe there's Carolyn maybe there's a collision course there coming down the road but there's such different animals right now but as these worlds grow as these companies grow and get bigger and bigger naturally they're going to be running into adjacent marketplaces so that's something that's going to be very interesting to see but I think what's unique about service now is they're solving the problems that they got a toothache they come to me they got a toothache ah doc I need some help and IT has a toothache and that toothache is everybody's pointing fingers at IT what am I getting from my money you're not responding to my requests fast enough you always say I can't do it so I'm going to end run you with shadow IT this whole notion of making IT heroes and going from no to now it's great messaging but the fact that it's so many customers well yeah that's how it works is I think a great testimony to what service now is doing so we're excited to be here Jeff any closing thoughts back to Frank's keynote trying to take and enabling the CIO to be no longer an infrastructure operator but really a business partner to the rest of the business and all departments want to be partners with the business but it's kind of business 101 outsource to best of breed providers for those things that aren't your core business and put your time and assets into things where you can make a difference so why are you managing data centers if that's not your core business why are you doing bits and pieces that aren't let's enable you to really focus on delivering business value to your customer and push off some of these non-core activities it's a good story yeah and I think we are Jeff entering the age sort of the modern sass Salesforce to their credit popularized it but it's taken a long time for other really prominent high growth companies to emerge there are examples but you were involved in the early days of the application service provider and what the application service provider was doing was cobbling together a bunch of legacy systems and renting them and that's not transformational what is the reason why Salesforce transformed is because it took a whole new built for the web built for the cloud approach that's why work days doing so well that's why service now is doing so well and that is transformational and clearly those apps have been around long enough now where people are comfortable with the infrastructure they're comfortable with uptime they're comfortable with security and some of those kind of core inhibitors to adoption back in the days 98, 99 those are now gone and the technology has progressed enough skills have progressed enough and let's face it the infrastructure computational horsepower with really fast internet really great browsers really terrific CPUs big memory devices we're all carrying around these unbelievable devices in our pocket which again that infrastructure really wasn't there 12 years ago so it's all seems to really be coming together right about now and that's why it is a very exciting time to be in this business because we are really at an age of transformation so tomorrow we kick off again our colleagues are going to be at Sapphire now John Furrier, Jeff Kelly and David Fleuer are down there with our team we've got a big team down there as well in the morning we'll be broadcasting on the main Silicon Angle channel Sapphire now, we've got a bunch of great guests coming on so definitely check that out you tweet John Furrier at Furrier and he'll get your questions on there and then we'll be picking up the coverage here we start tomorrow at 9.30 Pacific time, Jeff Frick and I will be here he's at Jeff Frick, I'm at D. Volante we'll be kicking off with our introductory analysis and then we get right into it let's see so we've got a number of really great guests tomorrow, so let's see let me just go to Wednesday here, sorry I wasn't on the wrong day so we start at 9.30 and then Fred Luddy is coming back and we're going to talk to Fred about the journey that is service now we're going to go back to the beginning days Fred is really humble he's like super smart alpha geek and somebody who can see the future of the competition which we found out today but he's going to tell us the story of service now it's really an amazing story and then we've got a number of folks from service now coming in, some folks that do some of the operations and some of the architecture stuff and then it's back to customers we've got Maritz, we've got CareWorks we've got FICO coming on tomorrow we've got Yale University coming on tomorrow and just numerous customers that will be on the event we've got Beth White who's the CMO of service now she helped build up Data Domain which is a blockbuster acquisition by EMC so we're dying to see hear from her and see what's happening with this conference so big, big day tomorrow Mike Scarpelli is also coming on he's the CFO of service now we're going to ask him all the questions take the financial angle so great day tomorrow, Jeff really looking forward to it should be great thanks for joining us keep an eye on this channel Go to the SiliconANGLE.com for coverage of Sapphire tomorrow check out Wikibon.org for all the research and SiliconANGLE.com the blog and check out the widget on the right-hand side and that is the action for this week for all the live video shows that we're doing we will have a presence at Google I.O so check out that as well so keep watching everybody really appreciate it, this is Dave Vellante with Jeff Frick and we'll see you tomorrow