 ServiceNow Knowledge 4T is sponsored by ServiceNow. Here are your hosts, Dave Vellante and Jeff Frick. Act well, Jeff, you know, it's been a great day. We started off with Fred Luddy. Of course, yesterday we had the warmup band. We're joking, of course, Frank Slutman Rockstar. And then Fred was on today. Give a great keynote, you know, you nailed it, you said, all right, tomorrow's going to be the big day where the audience gets engaged and they were clapping at innovations that Fred was showing them. Showing Eureka, showing a little leg on a new platform that's unannounced. And, you know, when we ask customers on theCUBE today, you know, what do you want to see? They all, it's amazing to me. Remember last year, what they all want to see? They want to see mobile. Then boom, there's the mobile announcement. Now it's like, we want to see advancements in the UI and what's, ServiceNow seems to have the pulse of the customer. They're right there, you know? And so that's impressive to see that. You know, you don't see a big gap between what customers want and what ServiceNow is delivering. They seem to be in sync, in lockstep with their customer requirements. Now, maybe that's because a lot of their customers are in IT and they got this, you know, in legacy infrastructure they got to deal with. But nonetheless, it seems like there's good alignment there. I keep thinking, you know, we keep talking about Salesforce and Workday and other, you know, big SaaS application companies, even though they're different. I just remember the Salesforce button, right? With the no software. And I'm thinking for this show, it should be no IT, because it's IT services management, but everyone's talking about just services management and not IT services management. And that, every customer that we had on today seems to be consistently talking about the fact that they're using this for a broad range of services management issues. Sounds like HR is kind of the next Lego to fall, if you will, to use this application instead of just IT services management. So it's strange to me that only a year away from where we were last year and that was the primary focus, even though we knew Fred said it's a platform, we're going to go other places with it, that the customers are already embracing it for these other things beyond just simply IT services management. Yeah, you know, a couple of things that was, I guess a little bit concerned with last year, we talked about mobile, service now filled that gap with the native HTML5 approach. So that's, check. The sort of vision that Frank put forth in Mike Scarpelli last year in theCUBE of the total available market, beyond sort of the hardcore change management, problem management, that kind of stuff. When you talk to the customers, they were still there. So it's like, okay, there's still a little, you know, Jeffrey Moore theme, it's still got to cross the chasm. Now we're here, you're hearing virtually all the customers we talked to. Oh yeah, we are now driving a service orientation throughout our organization. It's consistent with what Slutman was saying about we're driving it through IT. So that's very positive. One of the other things that we talked about last year was the mid-market, you know, the SMB, you know, the Salesforce version of ServiceNow. Now there, ServiceNow is talking about, you know, a product that's a shrink wrap version. They're not really pushing it hard because Frank Slutman has said, we are focused on the global 2000. We're going hard after the global 2000. There's a huge business there. Even if we don't do any new business, we can grow at 30% a year with just upsell. So we are insanely focused on that. So that's a few years off, but that's another huge potential opportunity for these guys and we know from some of the competitors that there is a market there, but Slutman's not going to take the pedal off the global 2000 metal. The UI piece, again, a little bit of a concern last year and now you're seeing ServiceNow attacking that problem. Interesting part of that is Microsoft, you know, basically pulling the plug on XP support and having a ripple effect into IE. Right? So again, just looking at the cadence of ServiceNow delivery, very much in lockstep with the customers, I'm squinting through to find, you know, some real negatives. I mean, maybe the company, you know, its valuation got ahead of its skis earlier this year. It's pulled back, which I think is a really healthy sign. Provides a little breathing room. Means the bubble is not going to, you know, just all of a sudden explode overnight. We're not good on that. But to me, again, very healthy pullback. You've seen the same thing with Workday, Splunk, Tableau, different businesses, but somehow they all seem to trade together. So, what did you take? Yeah, I just like, I mean, I like Fred a lot. And in the keynote this morning, you know, it's fun to hear him talk about things that he, and he's self-effacing, right? They just added tabs. And what he, he's like, ah, it's 2007, but we added tabs. We listened to our customers, they wanted tabs. We added tabs. The fact that they, you know, he told the story about a customer that had an issue with Boolean Search. And rather than say, listen, you should know what that's all about, he listened. And they're taking the input. And the other thing that we had a number of the customers on who had their folks sitting with their users, their customers inside their organizations, watching the way they use applications. So just this continuous focus on customers, the way people use the product. And again, the other thing, I just keep seeing kind of the development. I mean, they talk about citizen development or citizen developers in assembly, but it seems like they're really kind of bringing that type of a mind flow in a way you spend your day on your machine into the services folks as a way to get their work done and become the primary screen that's up on people's screens with the activity feeds and assigning things. It's very innovative. And again, thinking about kids coming up now that are graduating from college that are not email focused and thinking about how you engage those people as a workforce to get things done. I think it's pretty innovative, pretty interesting. Well, a lot of passion at the show and at this event. Again, I'm always quoting Simon Sinek. People don't buy what you do, they buy why you do it. And service now, they lead with that why. They're trying to make the world better. They're trying to make IT simpler and service simpler. It shouldn't be so hard. It shouldn't be so complicated. And there's a real passion around that. Mark Hopkins was telling me a story that he was riding the elevator with somebody, one of those service now customers said, that's so much fun that people are having. I want to come to work for service now. And you're seeing that a lot, a lot. There's a lot of that, right? The ecosystem is coming in. And of course, I'm always interested in the business side of things. This company, from a financial standpoint, pressure's on, right? I mean, this company's been consistently performing, growing at 60% a year. They nail their quarter, they guide higher, and of course, the stock drops pretty precipitously, dropped about 15% when they announced and then came back. Again, I don't worry about that. I think it's actually really healthy. What the key is, can they keep consistently executing? That's why Frank Slutman's in charge. And secondly, the thing to watch at a company like ServiceNow, and the same thing with Workday, is these companies are spending like crazy on growth. Look at ServiceNow's spending on SG&A. It's way out of line from the average benchmarks. It's R&D is 17% of revenue, which is a ticker two higher than where they want it. Maybe a ticker three or four higher than where they want it. But if you look at long term, what's going to happen at this company, I would predict, is those ratios are going to start to come into line. This company is going to get huge operating leverage. It's going to be like an ATM printing money. And so I think Slutman has it right. He's going for the big prize. If he weren't doing that, I'd be just so disappointed because it would be incremental thinking. This company wants to change the world. They want to be a force in the technology marketplace. So that's what they're betting on. This is why guys like us follow this business. Incremental 4% a year growing at the rate of the market. Boring, right? This is the exciting stuff. And I think we're watching history be made. Like I say, it's Frank called it the cloudification. So clearly we're seeing it with Amazon, $3 billion growing at 70% a year. Workday, you're seeing it with, you saw it with Salesforce, really, really impressive. You're seeing it with ServiceNow. Tableau and Splunk are different. They're kind of a dig big data play, but it fits in. I always say, big data gives cloud something to do. And so they're all sort of connected these disruptions. They look like they're separate distinct markets, but they really are all connected. And I think there's a data play here. The other really interesting thing I learned today was the data quality piece and how important that is. It's still a garbage in, garbage out model. And so customers need to pay attention to that. You need to pay attention to data quality. The notion of a chief data officer or a data czar is important. Somebody who owns the data taxonomy understands the data sources and is going to enforce that and provide value throughout the organization from a data standpoint independent of the IT organization. That's not a CIO function in my view. That is a separate function that reports to senior management. So that's my take. I'll give you last word. I think my two takes, one is just from last night at the cocktail event, running into some of your old friends, some of the wildly old industry veterans who have recently joined the company had a sparkle in their eyes if they just woke up Christmas morning as a seven year old about the excitement of the opportunity that was in front of them. With this company that's not encumbered by a bunch of legacy products, legacy customers or legacy infrastructure. I thought that was pretty fun. Those guys were excited down there. I thought that was great. I guess the last piece that I was very impressed with some of the folks that we had on today and yesterday, really from the practitioner point of view, is we're having this conversation about whether CIO should be business focused or technology focused. And at least the group of people that we had on are really doing a good job of straddling that and really taking a very serious approach on both sides. I think Bart's a great poster child for this. He's running his internal IT department for one side of the house and he's actually running a separate IT delivery company on the other side of the house. So I mean, you can't pick a guy that's more embracing both sides of it. So the evidence is good that people are being able to do this and transform their departments from just order takers and really a cost layer to really trying to deliver that business value. So it's great. I'm looking forward to day three. Yeah, I love the format that we have here. So we had Frank Slubin who was a keynote speaker day one, he came on theCUBE day one for us. Fred Luddy today was the keynote speaker. He came on theCUBE day two and then we got Dan McGee who's the keynote speaker tomorrow. He's going to come on early guest tomorrow. We're going half day tomorrow but still half day at service now knowledge is like a full day at another event. We'll get a lot of knowledge. All right, everybody. We'll see you tomorrow. Thanks everyone for watching. You can tweet him at Jeff Frick. I'm at Devalante at theCUBE. Check out crowdchat.net slash no 14. We got a crowd chat going on. And this is theCUBE. Thanks for watching. We'll see you tomorrow.