 Live from Las Vegas, it's theCUBE, covering Knowledge 16, brought to you by ServiceNow. Here are your hosts, Dave Vellante and Jeff Frick. We're back. Jeff Frick and I are pleased to be wrapping up day one for us for theCUBE at Knowledge 16, SAP, SAP ServiceNow is a big event. It's been a long day. Farrier's texted me from SAP Sapphire and it looks like they had a good event down there as well, but we're here at Knowledge 16, great day. Financial analysts meeting yesterday, set up theCUBE, had a great kickoff today at the keynotes with Frank Slutman and company laying out their vision. We just had Robert Gates on, he's a rock star, right? I saw him at the CIO event, so ServiceNow has a separate CIO event within the event and they bring in a lot of speakers and they share, it's behind closed doors, CIOs talking to other CIOs, pretty impressive. It was great walking over with him, 10 minutes. He came on now, remember he replaced Rumsfeld, right? George W. Bush brought him in asking him to replace Rumsfeld. It would be like Belichick replacing Parcells, right? Rumsfeld, effusive, outgoing, controversial, right? And then of course Belichick in a very straight, narrow, and that's kind of what Gates is, right? I mean, he was very measured and in yet opinionated, right, serving eight presidents, all of which had great sense of humor, except two, he said, Jimmy Carter and Richard Nixon. Yeah, dark days then. Take what you will from that, he said. So pretty interesting, but so what's your take on day one at Knowledge? Kind of following up on some of the stuff that Dr. Gates talked about, the themes are actually really simple, and he listed the traits of leadership. These are not things that you've never heard before, caring, empathy, trust, humor. And I think the themes here at Service Now are very similar, Dave, in that it's about work, it's not about records. For time and time again about it, it's about effective response, not necessarily building the biggest mode in the security aspect. And it's the action platform, we get work done. So it just seems like this kind of methodical, just boom, boom, boom, stick into their knitting, moving down the road, moving down the field, as we like to say, and continuing just to execute and as they see everything as a service, that now that opens up this huge opportunity to go well beyond ITSM, which is consistent with the vision, and I know we keep talking about that 2013 interview with Fred, but it was our first meeting with him, to execute on that vision of a platform, and now going into shared services, which we've heard a lot about a little bit into HR, a little bit into legal, and continuing to move down that path where there seems like a good opportunity ahead, but they're just executing, just keep executing. Well, and ITOM now is the big opportunity facing them, and I think it's going to provide a mix shift to a new set of products for Service Now. IT operations management, they've made some acquisitions, they are, Service Management is now, it's got its tentacles everywhere, and essentially helping orchestrate Chef and Puppet if you want, they could do the orchestration for you, so Cloud Management is a new area for these guys, and this whole notion of inter-clouding and managing multiple disparate clouds is something that Service Now can help attack. I mean, pick a problem that involves a Service Workflow, and Service Now is going to knock it down. How many things in business involve a Service Workflow? It's like everything, everything we do, everything we touch has a Service Workflow aspect to it. So every project, every new initiative, every acquisition, it's just, the market opportunity is enormous, and what Service Now has done a really good job of doing is taking this little notion of a, it's like the Big Bang, IT Service Management, now help desk, change, manage problem management, change management, et cetera, and exploded that in all different directions into new vectors. You mentioned a little bit in HR, I think it's increasingly getting traction in HR, legal, logistics, you're now seeing, Service Now layout a vision of touching and helping to essentially orchestrate requests, service requests around the ERP systems, around the CRM systems, which are systems of record and relatively rigid systems of record, and Service Now can help orchestrate all the activities around that, it's an enormous opportunity, so the TAM, I pegged the TAM in 2014, I wrote an article that John Furrier republished on Forbes, I pegged the TAM at 30 billion at that time, and I remember when I went through the analysis, David Floyer helped me, I said, it just feels like it could even be higher, and I remember discussing that with David, he said, yeah, but 30 billion's so huge already, you know, you got this tiny little company and you're on 10 hours, you better be conservative here, and now it's up to 60 billion, I think the 60 billion is understated, Jeff. Well, Daryl from H&R Block in Canada, they do this annual thing, I left how you called it, a merger acquisition and a divestiture to build the infrastructure to execute the annual tax process for Canada, 84,000 tasks, everything from painting the building to signage, to computers, to paper, to hiring people, firing people, I mean, that has a lot of different tasks that they now manage with service now, I thought that was pretty a fascinating story, you were not when we had Lawrence on from EY, not understood young anymore, EY, and talked about now they can provide a level of detail in the ITFM, the financial management, of like what's the cost of an application, that no one ever knew before, because they never added in the data center cost, you know, there's just software and maintenance, and now people can start making interesting and informed decisions about end-of-lifing stuff, which has come up in a number of our conversations, saying that people are turning off other applications and service now is taking that workload. The other thing I wanted to talk about, we talked about this at the open, but when you and I walked the floor at 20, the service now 2013, it was, struck us that one of the challenges they had is to evolve this ecosystem, and that, by the way, they still have that challenge, but they've done a really good job, and you've seen, and one of the things we said is we're the real big guys, KPMG was here, but you know, the accentures of the world, the Ernie Youngs at the time, now they're going all in, so Accenture acquires Cloud Sherpas, CSC acquires fruition, so those guys like to focus on big opportunities. So the only area, now the other thing we talked about when we were at the ARIA was the down-market opportunity. You know, we said, boy, wouldn't it be nice if they had a solution for small companies, take a page out of the Salesforce playbook, and they've announced offerings there, but you're not hearing anything about them, you know, because, and I think the reason is, at least in part, there's so much opportunity in the global 2000, they're really laser focused on that piece, we're going to do some more digging, and find out what's going on there. I know initially there was some concerns about sort of the growth path, and, but we haven't heard a peep, unless I missed it, about the down-market product, the entry-level product, guys, like us. Right, we could use it. I don't know if I have 84,000 tasks to put the cube production together, but I got a few that I would love to have automated in this system, absolutely. So, and then the other thing, Dave, which, you know, we had Troy on talking about the design and the watch and the fact that he sits in a room, he had a surf shop in the Maldives before he came to work for service now for a couple years, and he sits with Fred. And so, again, just this unique culture of having kind of the mad scientist, you know, elder coder with the fellow surf shop design guy and to come together and to try things and to come up with the watch. And he told the story of the watch and how he had to build credibility over years to try new things, to get to the point where he could say, hey, let's talk about the watch, let's do a watch. And what is the form factor of the watch? And what are the types of notifications and work behavior that we can better represent in this form factor? And I think it's just, you just cannot underestimate the strength of having a driven visionary leader that pulls people to him and inspires people, which he so clearly does. Well, and he's young at heart. I mean, it's like I was just saying, I think he was coding in the keynotes today. I gotta ask him when he comes on. You know, but they, you know, you look at this company and there's some folks at this company that have been around for a while. You know, it's not a bunch of kids, you know, Cody, there are, but a lot of the senior leadership team and the technical team and the development team have been around the block, right? This is not their first rodeo. And yet they're able to focus on simplicity. You know, Fred used to talk about the Amazon experience last year, I think it was the Uber experience. I think I know we're going to see some more stuff on Wednesday, the watch still has me scratching my head a little bit, but look cool. But when did the Apple Watch come out, right? I mean, if you look at Apple's kind of the people that stamp, you know, this is now kind of a valid new technology. So it was last year, right? Yeah, last year and they're already kind of thinking of new ways to use this form back there. Well, it's one of the guests said today, you know, things change so quickly now. You know, it's true. We used to go to these conferences and you'd be talking about the same cloud narrative two years straight, right? Right. Now it's like every six months it's something new. Every three months it's something new. You know, whether it's, you know, the way IoT just exploded on the scene. You know, Hadoop, which was so hot. Now Hadoop's like passe. You know, everybody's talking about Spark and other new real-time methods and streaming and it's just amazing to see the pace of innovation. And so ServiceNow seems to be a company that can keep up with that. The other thing is, I look at my notes, back to your comment about the system integrators. You know, we had Accenture and CSC both talking about them getting out of the plumbing business and really moving more of their efforts with their clients to the high-value stuff. And you think, wow, that's kind of counterproductive. They've made a lot of money on doing heavy lifting, infrastructure implementations and integration and all that big nasty stuff. Even they see the writing on the wall and it's better to get behind this transformation called the rotation to the new and to build their practice around helping their customers execute in a cloud-enabled world versus necessarily continuing to stitch together infrastructure. Well, I mean, I think that's important. I mean, the hallmark of a great company is one that can navigate through transitions. We've covered EMC for years. We've seen their executive, Joe Tucci, talk about the waves. I always believed in the EMC strategy, for example, was the right one, but it could not navigate those waves. There's been a lot of great companies, the Digitals, the Primes, the Wanks. And so we'll see. If, well, I mean, guys like the service companies tend to be able to make those transitions, right? Because they do eat from the trough, so to speak, right? They wait until there's a lot of food and then they go in and pick out and they do a really good job of it. And they're doing it now, so that tells you there's food. So that's a huge sign of confirmation about this ecosystem. So, all right, anyway, another big day tomorrow. Start off with the keynotes at 8 a.m. Pacific time. And then we start up, I think, at 9.30 again, right? Correct, we start at 9.30. And again, we've got a great selection of service now executives, of course. But more importantly, what we look forward to really is the customers. And again, as we've said a number of times, one of the reasons why this is one of our favorite shows is because we get to talk to practitioners. We get to talk to people that are executing, that are in the trenches, that are transforming their own companies in this competitive world. And they happen to be using service now as part of that strategy. And there's a lot of them here, so we will be extracting the signal from the noise as we do at theCUBE. Thanks for watching, everybody. This is a wrap, day one. We're here at Service Now Knowledge 2016 at the Mandalay Bay. We'll see you tomorrow. Service management.