 ServiceNow Knowledge 14 is sponsored by ServiceNow. Here are your hosts, Dave Vellante and Jeff Frick. Back, Dave Schneider is here as the Senior Vice President of Sales at ServiceNow. Hey, Dave, great to see you again. Thanks for coming on. Thanks for having me. So your guys are happy. We're walking around the exhibit hall, checking out the show. ServiceNow sales guys are pumped up. That's great to hear, but I really don't care about if our customers are happy. Well, that's why they're pumped up, right? Customers are happy, they're buying, they're renewing, and it's good, you can just feel the vibe, right? I mean, you know, we do a lot of these events and some of the best sources of information other than the customers are the sales guys, right? You could just tell the enthusiasm is there and it seems to be building momentum. I agree, that's, I mean, the fun part about these events for us is we get to interface with not just one customer, but a lot of customers and find similarity, common need, and common situation to cross them. And when they talk to each other about their honest experience with ServiceNow, it's viral, it's just really impressive. So you guys are obviously highly focused on the global 2000. And, you know, Frank Slutman has said that we're really going to keep our eye on that ball. We're not going to lose sight of that focus, even though, you know, there's an allure of the small, Jeff and I want, you know, we're a small company, we're like 20, 30 people, but you know, we want ServiceNow, but really, and I know there's new products coming out that might appeal to us, but you guys are like laser focused on the global 2000. So what does that mean to you from a go-to-market standpoint, from the type of guys that you got to bring on? How do you sort of tune to that? So I will say we're laser focused on the global 2000, but I would say we're almost equally as focused on organizations that have enterprise service management problems or issues, and our ability to come at them with solutions, because the product is broadening, we can get to an interesting revenue and business impact with companies of various sizes. So we are set up to go-to-market with folks focused on the global 2000. We're equally set up to market to go on the mid to large-sized company, that may be the run below that, maybe 500 employees or more, and then we have this new product that will be introduced in the near future that's going to target the lower end of the market. Right, so enterprise software sales, it's not trivial, it's not easy, right? I mean you got to build credibility, you got a well-funded competition, you got a lot of skeptics, because especially when you're selling to IT people, what's the sales motion like for you all? Is it, it feels like it's different, it feels like you've got this, you've got so many references now, you've got so much excitement, but are you still having to go in in a lot of cases and do the sort of hardcore ROI and the RFPs and all that nasty stuff, or has that flipped for you guys? So I think in enterprise software and almost any large corporate acquisition of technology or capital equipment, you have to justify why you're making an investment. That being said, we have a process that we use in sales which is we introduce our prospects to our customers and then we just get out of the way. And that seems to be the best sales strategy ever, and it's not that complicated, but we're sort of unique in that we have so many customers who have seen value that when we actually practice that, we end up having them really help reduce risk for those prospects. Well, it's amazing to me because in a lot of enterprise situations, customers won't talk, they won't be references, but we found here that's not the case. I mean, they love to talk about what they're making cakes. Yeah, I mean, I think, again, this is, the question on when they won't talk is usually when there's something specific to what they're doing to their line of business that is their IP, the differentiates them in the market. When it comes to managing the way service is provided to an enterprise, there's just a lot of knowledge and awareness that this should just get better. And most of us are tired of working so hard, with so little to show for it from a standpoint of supporting other organizations. I go into companies that have shared services organizations and the question I ask is, how are you doing? And they look at me kind of funny and they say, what do you mean? I said, well, how are you doing in providing service for your constituency? They said, oh, I think we're doing pretty well. So how do you measure that? And they kind of, that's when they get really quiet. And they say, well, what do you mean measure that? And I said, well, do you have a system of measurement that tells you as a shared service, are you delivering on the expectations that the business has of you? And that's a really empowered position to be in if you're in a large enterprise and you can now tell the CFO, CEO that, hey, HR is delivering against the SLA that they have for the business and in fact exceeding it or IT or any of the other organizations. It's interesting, you said your constituents that you're delivering service, because we've heard more and more of your customers talk about their constituents as their customers and really kind of shift that point of view. And we've asked a few too, do you have like internal SLAs as you would for an external customer for the services that you're providing inside? That's great. Yeah, sorry to interrupt, I mean the thing about IT, they're the first ones that are really held to an SLA to the business. If you think about all the other organizations inside an organization, what SLA do they have and how well is it published understood by the organization? So the frustration builds up between organizations which takes you away from getting to that authentic self of trying to be a great company. Right, and getting stuff done, right? And getting stuff done. So I have a question for you as you know, we're still kind of early days in enterprise cloud applications, but by the same token we've been doing it for a little while and I'm curious as to when you go through the list of kind of attributes and benefits of why they should go with ServiceNow, has security of cloud and enterprise readiness of cloud and uptime of cloud? I know both in the past that was probably towards the top of the attribute list they wanted to discuss, is that starting to fall down in terms of not necessarily importance but kind of relative importance based on other things? So I think that the importance of security and the importance of readiness or uptime and service levels, that is the critical thing. You want to be able to turn something on and use it. It's not really that helpful to have a service or their personal or business that's not available. In the case of IT service, it has to be highly available. We don't have the luxury of being able to close down for a weekend. There was an analogy used earlier, one of our cloud competitors automates the sales side of the house. In the joke where sales guys go out and play golf on the weekend and so if the system's not available, that's okay. When does IT do a lot of their work? It happens to be when everyone else is in there. Some days, when everyone else is doing, right? We can't take it down time on Monday either. So we have to be really creative on how we build our systems of record to be able to deal with that. So we answer that question through our design. Now security is a constant evolving war. The people that try to attack get smarter. We have to be smarter than that too and we are going to great lengths to secure our cloud. I would argue we probably do it better than most of our large enterprise customers. But every negotiation, every contract, everybody progressing through to a cloud offering, that should be and is one of their top concerns. So when I talk to sales folks, I always like to try to understand why they buy and the interesting thing about service now is that Frank Slutman has said even if you guys sold no new customers, you'd still grow at 30% a year because your existing customers are buying a lot, which is oftentimes the case. You get more business out of your existing customers than you do new customers. But nonetheless, when you have a new customer, why do they buy? And when you're doing these sort of upsells, if you will, why do they buy? Presume it's for different reasons, but take us through to the green field, the new prospect. Why are they buying? So there's still just a ton of green field opportunities. I think part of why they're buying is they're actually talking to their peers now and they're finding out that there is salvation to the problem. There's a pot of gold at the end of the rainbow that they didn't think was possible before. So I think the why they're buying is it's painful. The existing paradigm that they have is painful. There are young startup companies that offer very basic incident problem change kind of systems in there. For basic functionality, they're also a reasonable alternative. However, if you really want to go beyond, if you wanna start managing service levels across an enterprise and do IT incredibly well and get into system record and get into IT operations, if you really wanna solve the complete problem set, service now kind of establishes itself as a clear leader. As far as the upsell question which you asked, there it's really module or use case by use case or as the companies organically grow. We happen to be involved with some companies that are just growing as fast as we are. And so the number of personnel they have supporting the organization goes up. Sorry, there's a beeping thing in the back that's a little distracting. It's Moscone, you know, getaway day. Okay, and how about the roles to whom you sell? Again, take it, let's say, Greenfield. Do you start with IT service management types? Do you start with the ITIL guy? Do you start with the CIO? I mean, how does that sales process work? So I've got a lot of analogies on how sales works, but it is a bit like dating. Sometimes you have to talk to a lot of people, I'd imagine, to find the right date. I think that the key thing for us is you are trying to find the stakeholders. Usually IT infrastructure are really important for us to go talk to the CIO, the CFO. And as we continue to progress, we're getting brought in by the change agents that they're going to for consulting services. But how do we become more competitive? So we're getting brought in by the Accentures, the KPMGs, the Capgeminis. And really the other outsourcer companies who are trying to take the legacy applications that they may be managing and trying to put a new front end way to make them more interesting for their clients, or trying to figure out how to take that legacy base, shrink the amount of spend on the legacy, and then take the new space. It's like the green space, if you want to call it that, and make that exciting and do a lot with a little bit of resources. Because everyone has to keep the lights on out there, but they want to transform the enterprise at the same time. For a real quandary that companies have to solve. So the system integrators are becoming a channel for you now. System integrators are a massive opportunity for us, and we're lucky we have some great ones. And we're investing heavily in them. They're all here now, we could see them. When you see Ernie Young giving presentations and Accenture, alongside the guys like Cloud Sherpa and fruition who have been here for a while on KPMG, that's awesome. It is, and that ecosystem is constantly growing and it's giving rise to a new set of partners, which are the application development partners who are building vertical applications on top of the platform, and they're going into a line of business or into a vertical market, and they're going and say, hey, we got an oil rig drilling application, or we've got an application that informs OSHA when you have an incident on a work site. These are hugely valuable to companies as complete turnkey solutions, and our platform and product lends itself so well to that that it's just a nice extension for us, and it's an obvious sales ladder that we can take up in an account. Yeah, that's great. You answered my question before I asked, I was going to say, beyond the system integration partners, you're good. You know, what is the impact of having all these ISVs, you know, continue to add value to your platform beyond what your own internal engineering team is doing? Yeah, so there's that vertical piece and then there's the integration component, and then the world of cloud integration is critical, because no one wants to get back in the days. I worked in an integration company in the dark ages, the early 90s, and you know, there were technologies like Corba and J2E, things that we take for granted as underpinnings that we now call XML or cloud brokerage ideas, that you don't want to disintermediate that connection between companies. You want to make that easy. So we're actively participating with a group of companies, really companies our customers want us to participate with to build those integrations. Probably the most important one right now is Workday for us, that HR system of record and interfacing to it and helping them and helping our customers to deliver more value around that solution. And we're a big Workday customer, love it. Good company to run with. All right, Dave, we have to leave it there. Thanks very much for coming on theCUBE. It was great to see you again. All right, keep it right there, we're right back with our next guest. We're live from Moscone, this is theCUBE.