 Just one minute. I'm here with my co-host, Jeff Frick, who we just fresh off of the AWS Summit, the Amazon event, Jeff and I covered that. And we're here at Knowledge 13. Now this conference is all about the notion of going from IT as a service organization, changing IT's mantra from no to now. That really is the theme of this conference. And we're here with Frank Slutman, who's the president and CEO of ServiceNow. Frank, welcome back to theCUBE. Thanks, good to be here. Yeah, it's good to see you again. We had you on at VMworld, this great story. When we first introduced ServiceNow to our community, you're just fresh off the keynote. Fantastic keynote, by the way. Thank you. You had strong themes. I mentioned the from no to now. You talked about IT. You gave a little tongue-in-cheek joke about the line outside the RMV, the registry of motor vehicles. And that's sort of the idea, is you guys are transforming IT from an organization that is trying to manage demand, push off demand, saying no, we'll get it in six months. It'll cost you $5 million to one that really is redesigning IT processes around the globe. So first of all, welcome back. Congratulations. How do you feel after that keynote? Ah, terrific. A lot of energy in that room. And it was electrifying. It was awesome. Well, one of the guys in the panel, he stopped when you had asked him the question. I think it was the guy from NYSE said, he stopped, he looked at the audience and said, I love this crowd. You know, that was a great crowd. Woo, he gave a little hoop out to the audience. So talk about from no to now. How'd you come up with that theme and give us a little color behind it? You know, it's actually not easy for us to communicate about service, not just to late people. Unless you have lived inside IT, most people don't even know what IT really does on a day-to-day basis, right? So we've lived a fairly insular existence because everybody knows what sales people do and to some degree what HR does and finance people, but IT is a bit of a mystery to what most folks do, right? What most people do know, however, is that the service experience with IT has been challenging, so we say. I mean, it's been sort of a service experience where if you have to ask, the answer was going to be no, right, because IT organizations have been super preoccupied with infrastructure, rapid change in the infrastructure for the last 30, 40 years, nothing ever set still long enough for us to really master the architecture and the platforms and really stabilize and mature our systems and they have to keep moving. So you get pretty cranky as an IT organization having to live that kind of life, so their reputation for service has not been stellar. You know, they're making the joke during the keynote, they're ranking right down there with legal in the basement of the corporate enterprise, you know? So. Well, so talk a little bit about sort of how you guys go into an organization. You start with the IT organization, right? I mean, helping them sort of automate their processes, connect all these different processes, but you've been through your platform, expanding out to other parts of the organization. You know, the irony is that IT, which is the most technology savvy organization in the price, has the least management sophistication in terms of managing their own activity, which, you know, I talked to the CIO of a very large consumer goods company, and he said, where does Shoemaker Sun? It's inaccusable, right? And here we are running multi-billion dollar budgets and staffs with tens of thousands of people, and we're running it on spreadsheets, email, Excel, project management tools. This is ridiculous, right? We don't have real information in near real time in a short while that we can drive our business as opposed to being driven by it, right? IT executives have a tendency to run from one crisis to another with their hair on fire, and that's sort of the mental model. And a note of now message is about, how do we get these people out of this, you know, reactive crisis mode to where they become full-blown business partners and they start, you know, bringing value to the enterprise in a very transformative way, where they become the people that bring innovation to the enterprise. You know, here's so much, Frank, about Shadow IT. My colleague, Jeff Frick and I, were at the AWS summit a few weeks ago, and you see a lot of these cloud companies, you know, you mentioned your keynote, Salesforce and salespeople, Workday talks to HR people. They sort of in-run IT, certainly Amazon is, you know, the poster child for Shadow IT, but you know, Jeff, we have that sort of notion where IT people are not the center of the new cloud universe, but that's different for service now, isn't it? It's very different. But the other thing you brought up Amazon and your keynote and how they've kind of defined what kind of a user expectation experience is with an application on the web, a level of service, a level of delivery. And then you've got AWS, that's kind of the poster child of Shadow IT, but you guys are coming in really as the enabler to let the internal IT guys actually have the tools to compete with the guys trying to go around them and really be kind of a service delivery platform. I mean, we're trying to turn the tables here, because the entire history of IT is one big end around, right? The mini computer was an end around of the glass house. Client server was really PCs, you know, dribbling into departmental environments. Software as a service was an incredible end around. People, IT didn't realize it was seeping into the enterprise, right? Things like AWS, now infrastructure, right, is actually finding its way. So we're saying, look, you know, we're the enterprise IT cloud company, right? We are going to empower and enable IT to be driving rather than just being driven and being taken over and run over by events, because that's what's been happening. Here's the good news, IT can start withdrawing and getting out of the business of infrastructure, which is what they've been doing forever. Infrastructure is very challenging. Pretty soon, that's going to be somebody else's problem, right? Infrastructure goes behind the curtain. All you have to do is a network connection. So that means that the role of IT is moving from, you know, keeping the lights on, to, you know, we're going to be the people who are experts at defining, structuring, and automating service relationships. And service relationship management, I mean, I made the joke about, you know, your whole inbox of email, you know, is full of basically service relationships that are unstructured and unautomated and undefined, right? And there is this incredible opportunity to go at that with record keeping workflow systems. And that's what we want to enable and empower IT to do, right? When we had, I'll give you a quick example. It's actually very interesting. We talked to one of our very large retail customers and the supply chain office, unbeknownst to us, went to IT and said, hey, we want to build this app. What should we use? And IT said, no, you should try and do that on service now. Now, what's the app? The supply chain office and the retail environment, what they do is they take requests all day long, stores, distribution centers, suppliers, and they're rebalancing, you know, product, right place, right time, right product. And they were doing that, everybody running spreadsheets and emails and people constantly calling, let's see, update on my request. And they decided, no, we're going to go to a record keeping workflow system. And from the moment, you know, they started using that system, all of a sudden they had full visibility to A, what the volume was of issues that was coming in, but the nature of the volume was how well they were doing on their SLAs relative to their stores and distribution centers. And they were able to structurally go after, you know, the things that were causing them grief because they just didn't know, right? So very simply in very short period of time, you know, they transformed themselves from the supply chain office levels running around like a chicken with his head cut off to people that were actually driving the supply chain now. Now, supply chain management in their retail organization is super mission critical, right? Because their results are directly impacted by having right product, right time, right place. This is a simple example where we moving from email and Excel to a record keeping workflow system and the impact literally within 30, 40 days is enormous. Yeah, you hear that a lot of people just using Excel, using email, we talked to, we talked to some customers last night, we talked to some prospective customers that were in sort of checking it out and they were a big Lotus note shop and is describing sort of the difficulties and challenges. I mean, you will sign them up, I can almost guarantee it. But the other thing, so this notion of your customer base is very powerful. In fact, I tweeted out, I said, you know, ServiceNow has a sick logo base and somebody said, is that a typo? I said, no, sick, like that sick touchdown catch. Sick isn't good. Yeah, sick isn't good. But I mean, which we heard from Land O'Lakes, Red Hat, Metro PCS, KPM, New Orleans, I mean, just on and on and on at Facebook, Intel, Google, our customers. What are some other favorite customer stores? You hear a lot of the same themes, Frank. You know, we used to use spreadsheets, we're using email, we're reliant on all these disparate processes, bringing them all together. Give us some other, you know, favorite stories of yours from customers. Yeah, I relate a bunch of them on stage this morning, right, it's just extraordinary to me, the corporate America. I mean, you mentioned some of them, but you know, the people we had on stage, you know, AIG, you know, Coca-Cola companies, General Electric, I mentioned the United States Army, right? And they all had New York Stock Exchange, Eli Lilly, Big Pharmaceuticals, Bristol Myers, Squibb, you know, they all have the same set of issues. They have a completely fractured fragment of sprawled IT environment, right? And here's the interesting history. We have not had CIOs that long, you know, IT used to report into a division next SAG or a regional EXAC, and there really wasn't one person that was responsible for running IT throughout the global enterprise, because it was just a decentralized function, by the way. They gave the example when you were in Europe. Yeah, I ran IT, and I certainly wasn't an IT guy, you know, and by the way, it wasn't my priority either, you know, it was just, by the way, and that's where some of the history, you know, comes from. So CIO comes in, and they are now charged with you're going to run this thing. They're not running anything, they're being run by it, right? So until you get to global IT processes, I mean, Citi, another, you know, big name, they said to us, we're a global bank, but we don't have global IT, right? It is the inefficiency and the lack of ability to drive and manage is unacceptable for these very sophisticated, large institutions, right? It's embarrassing, really, you know. Yeah, I mean, you really can't go global as a company. You can't scale your business. No. Having all these different processes. So to me, it's about global scaling, and it's about the business value, both having IT be accountable, but also have the metrics and the visibility to be able to demonstrate the value to the organization. You see? I sat with our executive sponsor from Bristol Myers Quibb last night, and she said, I got data, and I got it in real time, and I know it's good. So I'm not putting my service providers on their heels, you know, before they were, you know, everything was, you know, in the realm of, you know, interpretation and- Fuzzy. Fuzzy, right? And now it's like I have data and I'm driving and I'm changing behavior, right? So the empowering effect that it has on IT organizations is just stunning, right? I thought that empowering note that came up in your keynote was interesting, how the IT organizations themselves and their presentation now to their internal customers are looking more like a company. You know, they're being cute, they're taking branding, they're not just button pushers and as you said, you know, infrastructure operators. They are trying to be contributors to the business and keeping some of this automation enables them to do that. It's even stronger than that. Yes, they want to be contributors to the business, but they want to be the playmakers. They want to be the go-to guys. Give me the ball, you know? That's where we want to, you know, take IT too. They're the people that really understand how to change how work gets done in the enterprise. Well, I thought you characterized it well in your keynote. You said IT people have been running from crisis to crisis and they need to be more proactive. So talk about how your system allows them to be more proactive. Well, it's all about going from a message-oriented environment to a system-oriented environment. The message-oriented environment is the one we all know. It's email, it's text, you know, it's voice, right? That doesn't work because, you know, we're just talking, right? Systems have the ability to drive behavior because, you know, every time you send an email, you should think to yourself, could I create a service request instead, right? Because a service request has a defined data shape. It goes into a database. It gets assigned in a workflow operation. It has metrics around it. If it doesn't get responded to in a certain amount of time, it gets escalated to the next level of management, right? So the process is defined, structured, and automated. It is going to run its course, right? Whether, you know, people are participating in it or not. We have this great example of one of our customers, Equinex, or Brian Lilly is here actually, he's the CIO. And he said, it was so funny, you know, we have a system development lifecycle application where our developers check in fixes and enhancement to a particular software release for an application. And he says, because they know the workflows is completely structured and automated, everybody knows that they don't get their fixes and enhancement in by a certain time. Poof, the dashboards pop. The higher-ups see, you know, who's behind and who's not. And the threat alone of the transparency and visibility that the process introduces, causes everybody to run harder, right? So people don't have to run around with the whip like, where are you? You know, the process is driving it. It's like a hamster on a treadmill, you know? Frank, you used Amazon as an example of a user experience that, you know, you covet as a CEO of this company and you believe your customer base desires. At the back end, also, when you talk about companies like Amazon and Facebook and Google, they are super highly automated. You also talked about lights out automation. Now, normally IT organizations are managed. You know, they're managed by humans. They're not highly automated. Are you seeing your customers able to get to that sort of vision that you're talking about that lights out automation, almost like the hyperscale guys are? You know, it's a super important concept. You know, I said during the keynote, we're overstaffed and under-automated in IT. We have reams of people on staff. I mean, large financial institutions have tens of thousands of people on staff. They're bigger than any technology company, right? Why is that? It's because things are very laborious and manual, right? The processes that they run require so many touch points. I mean, one of the things that we always tell our customers, when you can reimplement these processes, do not take your legacy forward because your legacy is very manual. I mean, remember the inbox and the outbox when we have physical inboxes and outboxes on our desk? We still have them on our desk, right? Now we have them on our laptop. Why do we have an inbox and an outbox? Why does this message really, why are you even involved in this process, right? So we have to invert the process. It's not like wouldn't it be nice for you to be involved in this process? There better be a very good reason for you to touch this process because the moment you touch it, you know, we're going from the speed of light to, you know, the speed of the dirt road. All right, Frank, so the service now is really on a rocket ship right now. You've demonstrated, you've got a track record of being able to, what we sometimes call, John Furrier, myself throwing gasoline in the fire. You're very good at that. You've got 1,600 customers. You've grown like crazy, but you're under-penetrated in your target, which is the Global 2000. You're only 14% penetrated in the Global 2000. So you've got a long way to go in this journey. We're very excited to be covering this event. Really appreciate you guys having us here. Frank Slutman, we'll give you the last word and then we'll wrap. You know, this is actually one of the great things that we are under-penetrated because our investors are like, wow, you guys got a lot of runway, you know, considering the size company that we already are. The rate of monetization of our business is extraordinarily high. In other words, the share of wallet that service now represents in the enterprise is so much larger than people had ever considered or thought because of us not an existing category that was fully metastasized and visible. It's new, it's emerging, it's really transforming how people look at technology and process automation and so on. We're going to be here all week covering knowledge. We're going to double click on, so how is it that ServiceNow is able to deliver this cloud functionality? The secret is in the single system of record, the CMDB, and that is not a trivial thing to do. We didn't talk about that with Frank, he could talk about it, but we don't want to steal, you know, the thunder from Fred Muddy is going to be on, Arne Justison, who's the CTO. We're going to go deep into sort of how ServiceNow actually accomplishes this architecturally, what their vision is. So Frank, thanks very much for spending so much time. I know you're busy and you got to run, but I appreciate you coming on. Terrific, thanks for having me. All right, thanks for watching everybody. Keep it right there. We'll be right back with more. We're live from Las Vegas. ServiceNow knowledge, we'll be right back. This is theCUBE. theCUBE baby, rock and roll.