 ServiceNow Knowledge 14 is sponsored by ServiceNow. Here are your hosts, Dave Vellante and Jeff Frick. Hi everybody, we're back. This is Dave Vellante with Jeff Frick. We're here live. This is Silicon Angles theCUBE. We go out to the events. We extract a signal from the noise. Dave Wright is here. He's the Chief Strategy Officer at ServiceNow. Cube alum, David, good to see you again. No, good to see you as well, Dave. You're rolling. We saw you yesterday, the Financial Analysts Meeting at the Industry Analysts Meeting. Let's start there. What was the reaction from those crowds? So I thought the Financial Analysts, I mean that was good feedback. People understood the story. They understood the expansion that we've got. They understood the total addressable market that we could focus on. The Industry Analysts Session was even more interesting because that was the first time people were getting exposure to some of the new ways that we've looked at working at people. That was the first time that people had got to understand that the expansion was both horizontal and vertical, so going deeper into IT, but also going out into enterprise service management and looking at things outside of the IT core discipline. Now I presume you had your hand in that TAM analysis. We don't have to go too deep in it here. I would think they'd run it by you, right? Yeah, yeah, yeah. And it's a difficult thing to do because everyone in the world is a provider of a service. If you don't provide a service, you're not in business. So technically someone needs to request that service so the TAM suddenly starts to grow out and multiplies. I was talking to a financial guy yesterday walking the exhibit or floor and he was asking me about the TAM and I said, you know, I took a stab at it but I only did a top down. I didn't do the bottom up because it was, frankly, it was too hard. I had to make the blog post out. But I came up with a $30 billion TAM and you guys, I don't think I've put a number on it yet but it's big and it's clearly a multiple of the core IT service management, but it's not necessarily a direct related multiple. It's this sort of fuzzier opportunity that could be just enormous. Yeah, because even, I mean, I always joke with people even on your day-to-day life, everything you want comes down to three things. You either want something you haven't got, you want something you've got fixed or changed, do you want to know something? And it doesn't matter if it's booking a dental appointment, if it's getting your car serviced, it's all the same process. So you can apply this in so many different areas. It just becomes an economy of scale as to where you want to go. So let's talk about the role of the CSO. It's come back. And for a while there, people sort of put strategy off and said, okay, if you had strategy in your title, you didn't want to have that. But now a lot of CSOs, people are realizing the importance of having somebody that's a visionary looking forward. So I wonder if you could summarize the Service Now strategy and how has it evolved in the last few years? So I think we were kind of initially focused on the ITSM side of the house and then we saw this evolution into what people would call an ALP for IT. The expansion beyond that into enterprise service management, that was something that customers just started to do. So I think we got to a point where we had to strategically say, well, we need to wrap our hands around this and we need to do something with it to kind of steer the direction of where we could go. Because if I don't go and see a customer quite often, I'm not aware of the apps they've written. So every time I go to an event, all of a sudden I'll see a new app and I'll go, wow, I didn't know that existed. So we need to understand what's happening. And then strategically, the ALP for IT story is pretty cool, but I think there's still some areas where we could expand that. There's still a bit more we could do and you saw in Frank's keynote today looking a lot more at the IT business management side. God, I'd love to get a system where you could funnel that information together and rather than having your standard traffic light dashboard, you could have a dashboard and it said, this is what this service not being up is costing the business right now per minute. So you could manage IT according to the business demands rather than just saying, oh, I've got three, seven ones. Which one should I welcome? It was interesting here in Frank's keynote this morning. It struck me at one point, I said, you know, Frank's almost in a way sounded like a consultant or a change agent. You know, talking about the role of the CIA, you know, but right? I mean, he's sort of an advocate for change and advocate for transformation. And there aren't a lot of companies that can actually credibly pull that off. I mean, I think, you know, a company like IBM obviously can, certainly an Accenture and Ernie Young or KPMG. I mean, they've got that capability, but you don't typically hear a software company having any credibility in that position. So I wonder if you could talk about sort of how you guys interact with the CIOs, for example, and senior IT leadership in terms of the impact that you're having on their strategies. So, I mean, the nice thing about working here as a company is, if I look at a lot of the other software companies I've worked for, this is the first one of being at where you can talk to a CIO and there's an aha moment, there's a light bulb's gone on. Okay, yeah, I can see how I could do that. And a lot of our positioning and a lot of our conversations with CIOs is, think about what you can do, what you could be the center of the hub of. You could actually say, well, I'm going to orchestrate all the service relationships in this company because I know how to do IT service management and that is way more complex than any other type of service relationship. So, if I can take some of those disciplines, I can sit at the center of the business rather than be one of the components on the outside of it. And Frank's advice was essentially, and in fact, he was drawing from one of the authors, might have been Jeffrey Moore, one of the others. But basically, the senior IT leader really needs to become more of a business leader, know more about the business or as much about the business as the business head. Is that feasible in your mind? Is the CIO able to play that role? Today's CIO. So I see two types of CIOs. I see proactive and reactive. The reactive ones are the ones where someone says, hey, we need this software to do this job and you guys need to manage it. The proactive ones are the ones where someone says, this is the business problem. How are you going to solve it? And those proactive CIOs, they're the ones who are asking the right questions. So what most CIOs don't do is they don't say, well, if you want me to do this, what's the end goal? Explain what your business challenge is so that I can help you get there. And I think the more times they ask what the business challenge is, the greater the understanding is they get of the business. So I think it can be an evolutionary process. You just have to change the way that you question why you do what you do. And maybe there's just, we're at the dawn of a sort of new era for CIO where you're actually inserting somebody with really strong business acumen into the CIO role. Hey, here's your CTO. Tap him or her for the deep technical knowledge, but go be a change agent and you're like the guy at CNBC on the profit. Fix his businesses. I mean somebody who's that sharp about business. Do you see that as a skill that will emerge or do you see the majority of CIOs still sort of growing up through the IT department? So I do see some CIOs now that are a lot more business focused, but it's this ability to understand what IT can do for the business, not just what IT can do. And it's that next step that the really good CIO has taken. You'll see what people do and the way people create things and overlay different value propositions on things. Some of these guys now are becoming go-to guys for CEOs of the company. They're being asked what they're seeing out there, what they're seeing as the challenges of the way the business links together and how it communicates. So I think it gives the chance for a CIO to get a seat at the table, a lot more than they have in the past. Because they have line of sight. Yeah, yeah, yeah. So Dave, the guys are under assault, right? With all these huge megatrends that are happening right now between cloud and everyone's got to get on the cloud and the big data. So how does service now come in in terms of working within that priority set? And what seems like a much less strategic at first glance application. And then two, you're really one of the enablers as opposed to the attacker. So how does your go-to-market blend with those other two big megatrends? So quite often you can look at those trends and use those trends as an inroad into the company. So if everyone is going cloud-based and everyone's talking about, yeah, let's go next-gen IT. The question of how you manage that and how you're going to deal with it, that requires radical change. So your CMDB is going to be dynamic. It's going to change every time a machine moves or every time you move from one cloud to the other. How are you going to actually deal with the event volume that's coming from that? Perhaps there's a different way you should look at IT operations management. So being able to speak to people about how they're going to deal with those challenges. Even the funniest example I saw is people said, we've got all these different projects going on and these different initiatives. And to say, how are you managing that demand? Just that one simple question was, yeah, okay, I'm not sure how. So, well, let's look at demand management and that's a good way to start getting into the whole process. And so are those some of the key drivers that you're finding for adoption or they're just another factor there? They're another factor, another facet. You see, you just see people struggling to know where to invest the money, what's got more priority, what's more of a risk. If I do that, when I put it into a project, what resources have I got to manage it? So it's this whole flow of people have to do more with less like they always have, but it's how do they optimize their return on that? Because people are measured, I think, a lot more finitely than they were before. There's still a huge number of organizations that are in what you call that reactive budget. The CIOs who are just focused on keeping the lights on, doing more with less. What's holding them back from transforming? I think for a lot of them it's not really having the confidence to go to the business and propose this as a solution. There's a, I think CIOs have been put in a position for so long where they've been given 18 months to prove themselves or they're going to be kicked out. And they've known that every major initiative they were going to do was going to take 18 months. So it's like a self-pilling prophecy. His career is over. But now they've got the ability to maybe look at a system where they can do things quicker, where they can get quicker wins. And the funny thing that's fired most of this stuff is when people go in and they deploy something like an employee self-service solution, it's the rest of the business that looks at it and goes, well, IT's changed the way it's managing IT. And actually what it's doing is not that much different to what I do in my business. So IT, is there any chance you could give me a system similar to what you're using? That's where we see these HR facilities, legal, marketing type deals coming up where people see what IT is doing and they want to piece themselves. Dave Blontan, I were lucky enough to be in some of the sessions before the show started and I wanted to go back to something that you brought up there, which was really about the digital native and how they're now all 28 years old. So they've been out of college for a long time and it's not only about the way the work gets done but the way that people do the work. And some of the changes you guys are making in your application and this new generation that's actually coming up behind the digital natives, which I guess we thought were the young ones, but I guess they're not the young ones anymore. So I met a sociologist from British Telecom and they were saying the term they've come up with that for this new generation is the entitlement generation. And it's not people who think they're special, it's people who just think, I just get it. I want to play a song, it's on us, I play it now, I want to watch a film, I watch it now. I don't worry about where it's stored, it's always going to be there, it's on demand IT for a media perspective. And when most people start going to work now and you see the younger generation going to work, I hate the fact I used the word younger generation. When you see the younger generation going to work. People want to work in the same way they work at home. So you watch like a 14 year old on a PC, they got multiple chat windows on the working on things at the same time rather than the way I like to work on things which is a list. So you'll see some of the new visualizations with things like virtual test boards that allow people to visualize the work and allow people to move that work around and allow people to monitor as many streams a day at the same time as they can handle. So it's not by accident, then you went with a guitar hero motif on the one visualization. I mean that does have some tie-ins to the younger generation but it just looks pretty cool. Yeah, it does look pretty cool. I want to come back to the sort of role of the CIO discussion and get your take on this. You get the big four, Cloud Mobile, Social Big Data Cloud is sort of a delivery model. So that's, I mean it's disruptive. Obviously you guys are an example of that but I think everybody sort of accepts that now and the CIO I think is learning how to deal with Cloud Mobile. They're embracing mobile because they're all mobile users. Social, they're trying to still figure out this notion of system engagement is quite interesting actually. Big Data is the other one that's actually quite disruptive. You hear Gartner come up with the stat that says the CMO is going to spend more on IT now than the CIO. Who knows if that's even true but it makes for a good fodder. But then you've got this other, the emergence of the chief data officer and a lot of people we work with MIT a lot are saying that individual shouldn't report to the CIO. It should be autonomous. And my question is you've got all these disruptive forces. Do you see the CIO adapting to those starting to, or you see sort of parallel roles emerging within organizations? So I don't think people have fully wrapped the mind around that. If I was a CIO and we had a chief data officer, I don't know, I probably agree. I wouldn't want him working for me because I'd want him to be my source of data. And if I'm honest, if I'm a CIO, I don't want to deal with all that big data. If someone else will crunch it down or compress it and actually do the correlation and allow me to just take what I need, then- But along the governance of it. Yeah, yeah, yeah. That's the piece that you really don't want. I'd rather let someone else deal with that. But I see it emerging now and I see companies, you see Splunk, you see Sumo Logic who are working different ways on how they're actually going to process this. I think there will be a more prevalent position in data. And I think the big driver for it is we used to have these systems of monitoring, I suppose, that were very focused in-house. Now everything's running externally and you've got trillions of events a day running across Amazon. How are you actually going to process that when you try and bring it into a system and manage it? Because these public cloud providers, they've got to be answerable and responsible for what they provide, so they've got to be able to clearly demonstrate you're running your app, it's in our cloud and this is the way it's performing and we want to make that as transparent as possible. So last question, really, is kind of from a strategy standpoint. I wonder if you could sort of summarize. You talked about sort of going after beyond IT service management. That's sort of the where and the what. But I'm interested in the why. You know, I'm a big fan of Simon Sinek but don't buy what you do, they buy why you do it. And if I had to summarize your why, it's like the flip answer would be you make IT people heroes. But you're really focused on transitioning, this is my comment about Frank as the consultant, it's more like transitioning IT from a cost center to a value producer. That's a strong message that's coming through today with service orientation being the tip of the spear. So what does that mean to your long-term strategy? So I think for us, it's about IT being able to just tell the business that there's a better way of doing things. And a lot of it comes out of personal frustration. When you look at the hassle that you get in the day-to-day basis, just trying to get everything done by email, just even just organizing this event, you know, I'll still go back and get something saying, hey, there's an urgent meeting you should have gone through eight hours ago. Because I don't get a chance to check my email. If I had a real way where work was just coming to me, where this was the way that people managed work on a day-to-day basis, for me, it's just a better way of running my day-to-day life. Yeah, and that's the underpinning of really your why and what you guys are trying to accomplish, fantastic. All right, David Wright, thanks very much for coming back to theCUBE. All right, thanks a lot. Good luck with everything. Great to see you. Keep it right there, everybody. We'll be right back with our next guest. This is Jeff Frick and Dave Vellante. We're live from Moscone here in San Francisco. This is Knowledge 14, right back.