ServiceNow, Inc. — Call Transcript 2026

Thank you for everybody for joining here. It's a great pleasure to be here with Amit Zavery, President, Chief Product Officer, and Chief Operating Officer, ServiceNow. Amit, thank you for joining us. Yeah, thanks for having me. Hello, everyone. We're back here a year on after what's been a very consequential 12 months, I think, in ServiceNow's history. You guys have three highly strategic acquisitions, launched Autonomous Workforce, wholesale repackaging under a new kind of scheme with Foundation, Advanced, Prime categories. Just had your Financial Analyst Day laid out, a $30 billion subscription target by 2030. Lot to dig into, but we can start off simply. Love to hear introduction of yourself, your background, and a little about what you focus on at ServiceNow. Well, first out, it's been a busy, I'd say, 12, 18 months for sure. I've been at ServiceNow for the last 18 months. As you mentioned, I run the product engineering operations and product strategy for ServiceNow. Previously, I was at Google Cloud for six years, where I ran all the platform teams, including a lot of the strategic products and portfolio there. Previous to that, I was at 24 years at Oracle, ran various different groups. Before I left, I ran the cloud team as well as all the middleware and the platform team over there as well, which was substantial part of Oracle's revenue. Very excited to be at ServiceNow. Lot of things going on. Great portfolio, great product, plans going forward, as well as great customer base, so really good time to be at ServiceNow. Yeah. Yeah. I think we should start off with what was probably the biggest topic for me when I was talking to the partners and customers out at the Knowledge Conference, that's AI Control Tower. A lot of traction with it. Our checks suggest that customers are deeply concerned about, you know, their AI sprawl. They don't know what these agents are doing, shadow IT, not to mention the cost side of it as well. You know, they need something to bring in this all together. You can talk about, you know, what's differentiated, kill switches, all those pieces. I think one thing before we get into it that's interesting is, you know, this is a very contested space. Everybody wants that governance and control. Customers are choosing you guys to do that. Can you describe why it's so differentiated and why you guys are the right platform for customers? See, AI Control Tower, last year when people started talking about Agentic, and even when I was at Google, the amount of AI work going on, and I was building a lot of the AI technologies, it was clear that customers are going to face a lot of issues managing the AI capabilities, the usage of AI, discovering a lot of things which are going inside the enterprise, and really making sure it's secured and governed. Last year, we launched AI Control Tower. One of the reason behind that is whenever we're talking about agentic to those customers, they were really getting worried about security, governance, compliance, auditability, as well as, just visibility broadly. ServiceNow has this product called CMDB as a core foundation of our product portfolio, where we manage and monitor all the assets inside an enterprise, any IT asset, hardware, software. For us to do that and extending that to AI was very natural. AI agents are software. We are discovering a lot of other things for every IT systems out there anyway. We added the AI agents as a way for extending what we did in CMDB very quickly and easily, and then giving them so much monitoring and measurement as well as a cost management associated with that. That opened up a lot of conversation with our customers. The reason it's kind of valuable for us as well as why we are differentiated, one, as I said, we already had the foundation for managing and monitoring a lot of the systems, AI was very natural. Second is, I think, we were connected to so many different systems out there. I mean, ServiceNow is kind of enterprise OS, the way you think about it, connecting various different system, east to west across different systems already. Very heterogeneous, very open ecosystem. For us to be more of a neutral third party where we can now not just track our AI agents, but also discover things coming from any different systems out there, hyperscalers, all the large language or frontier model companies, any AI systems or system of record. Providing a full governance layer on top of that, just like we did for any asset, became much more differentiated because of that. The other part which we have been doing very well is we recently did an acquisition of a company called Veza, which has a patented technology called Access Graph. An Access Graph for non-human identity is becoming very critical element for monitoring and managing AI agents because their use cases as well as the identity changes so frequently, and you have to do that monitoring real time. They do around 30 billion different permissioning and parameters for non-human identities. We brought that into ServiceNow AI Control Tower, and that suddenly changed the game for a lot of our customers because they can feel more confident about AI systems not taking wrong actions or doing wrong things and giving them the visibility. There's tons of stuff going on in our product portfolio, and that has been really well adopted and differentiated, and we continue to invest and provide that capability with AI Control Tower now. Maybe to double-click a little bit in there, you know, you have this product that's answering a lot of customer needs. You know, customers are in different parts of their AI journeys. At what point do they kind of hit that where they're like, "Oh, we need to do something that's like AI Control Tower"? Is it a cost function? They're like, "Oh, all of a sudden we're spending more than we expect," or is security the main function where they're like, "Hey, if we wanna push this into production, we need to have a way to make sure that it doesn't go rogue"? Yeah. I think it usually starts with, when more usage of AI starts happening. Like, if they want especially. Where you have all these business processes and systems connecting various different AI agents together, and there could be a lot of shadow AI projects happening. Then you have no idea what's going on and who's spending what or who's using what. Last year, as we said, when the agentic use cases were starting to emerge, a lot of the worry customers had around was just control and visibility. What AI Control Tower conversation started was just peace of mind. Where you don't have this sprawl of AI without IT knowing what's going on, who's using what, how much they're spending. It really accelerates the AI adoption by having this as a central control plane and heterogeneous. A lot of the providers today, they do pieces of the technology for their own visibility. They might connect into a few other things. The end-to-end discovery mechanism and the whole monitoring and visibility mechanism, it doesn't exist in the market other than AI Control Tower. I think it just removes that barrier for adoption of AI, because now IT team members as well as CIOs and CISOs start feeling a little more confident they can get going with AI without just random stuff happening inside the enterprise. Yeah. With enterprise, anything I mean, you've seen a lot of examples, I mean, you saw the recent PocketOS and others, where if you don't have visibility and control, things can go completely wrong, and you need to have some guardrails, and this is what it allows them to do. Yeah. It's a gating factor so they can deploy more. If we go to something you already touched on, which is the acquisition, Moveworks, Armis, Veza. One thing that I noticed is, you know, I think investors have been kind of trying to digest, you know, what it means, why they're strategic. When I talk to the customers and partners, they seem really clear about what it brings together, why it's such a high value. You know, there's been a lot of companies that do acquisitions. This was one of the ones where they seem to be paying attention a lot and kind of see the vision that you have. What do you think that they're getting that maybe investors kind of haven't wrapped their mind around? No, I think we've been very disciplined and thoughtful about what we acquire. Over the last, as mentioned, with the AI growth, there's an opportunity to really innovate faster, get a lot more domain expertise in some of the areas. One of the biggest areas we've seen a need for is around security and governance, right? The acquisition like Veza and Armis fit into this idea of how do you really monitor and manage the proliferation of AI systems, but also devices. Armis provides the ability to do OT, IoT, as well as medical devices, vulnerability management, and exposure management. Today, our business and security space is a billion dollar-plus, which happened last quarter. Q3 of last year. That was organic business we built over a few years, and it continues to grow very, very fast. What we saw from customers was that you already manage all the IT assets. Why are you not able to now do also a security and asset and vulnerability management for non-IT assets like OT, IoT, and specifically medical devices? Armis fit in very well with that kind of mindset, right? We allows us to extend to any kind of devices out there, and also extends what we have in CMDB and augment that with millions, billions of devices into that system as well. That as the growth with physical AI and other things come up, we see a lot of value for ServiceNow to provide that exposure management and vulnerability management on top of post-breach work we were doing already. Similarly, Veza is a little much smaller than Armis is, but this idea of patented AI access graph technology, again, augments everything we do for non-human identities, just like we use for human identity. The identity governance specifically becomes very critical. Our security business and the product portfolio roadmap got accelerated by this acquisition. We're bringing a lot of good domain experts in this area who are well-versed and have been doing this for quite a few years, and made our story much more powerful to customers as they think about AI adoption as well. We continue to do the integration with third-party systems, right? This is not like it's replacing a lot of things we were not doing before. We integrate into a CrowdStrike for endpoint. We integrate with Palo Alto and network-related stuff and get a lot of signals. The whole exposure and vulnerability management with the idea of post-breach. Today, CISOs are second-largest buying center for ServiceNow already. Right? IT, CIOs were number one, and CISOs are number two. It was natural for us to keep on expanding into these new areas, not only increase our TAM, but also accelerate our roadmap and bring a lot of this expertise into our product. It has resonated very well with our customers. Our pipeline since the acquisition has grown for security portfolio very, very well, and we continue to see a lot of good traction with the product being integrated. The Moveworks acquisition was very much led with this idea of conversation first, AI native, experience layer on top of ServiceNow. We have a great set of technologies today for doing, actioning, fulfilling a task. On the requester, we wanted a very AI native experience, and Moveworks brings that. That's now integrated into our Employee Center Pro product we had, the whole employee center, and bringing this thing together as EmployeeWorks. In the first quarter, we announced, I think in the Q1 results, we did more as a combined product than what the Moveworks has done by independent last whole last year. We saw acceleration because of the roadmap being integrated, able to deliver a lot of new AI-native capabilities on our product portfolio, and it's becoming our user experience across all of the offerings we have today, right? We've been very thoughtful about how we bring all this stuff together to really differentiate, accelerate the roadmap, as well as continue to innovate in all these areas. Yeah. One of the debates out there obviously has been, you know, if AI is going to generate all this value, where is that value gonna accrue? You know, where is most likely gonna get captured? I think you guys have been pretty explicit that, you know, the moat is not necessarily the LLM. You know, you guys have the Context Engine, there's graph of graphs anchored to the CMDB, layered with Veza. Armis is included in there too. You guys have 100 billion annual workflows, 7 million, excuse me, 7 trillion transactions. You guys put it pretty simply at your Analyst Day. There's no competitor that can do that, right? Help us understand, you know, in layman's terms, what the technical reasons are that others can't do that. What do you provide through your platform that enables that differentiation? Yeah. I think you have to remember, I mean, we have been doing this work for our customers for 20+ years. The amount of data we collect, as you said, 100 billion workflows we run, plus 7 trillion transactions happen on our platform, which is growing at 20%+, 25%. So the metadata we create, the context we generate around why a decision was when made in a business process, why an exception was done, who made those exception, those are not available in any documents which our LLM can read. These are all information we're collecting as you run these transactions. That's in a Context Engine which is distributed across multiple areas. Metadata is very hard for people to understand what to do with it if it is not done by ServiceNow as a part of our workflow, right? We build that. The CMDB, as I said, is really kind of the enterprise database today, right? Used by all the Fortune 500 and pretty large number of Fortune 2000 companies. That has become the kind of the underlying ways for large enterprises to operate on ServiceNow. All the systems today, they operate the operational part of it, in terms of executing the workflows, business processes around for IT, employees, for security, what we do for customer service, FSM, and other things like that. It's pretty broad and deep for many years. That information allows us to now take some advantage of AI technologies like LLM, which is probably around 8%-10% of IP in our stack, but the rest we build and operate over this information we have collected, plus the efficiency we have gained. Everything doesn't require need to be an LLM driven, right? There's a lot of deterministic things we do which requires much more understanding of our business processes and not have to say it's land of spending money on tokens, but you can still operate that very efficiently. We bring the deterministic mindset to a very probabilistic systems like LLMs and still give you a guaranteed outcome, because you can't make mistakes in enterprise systems. If you get the wrong answer, you instead of onboarding an employee, you de-board an employee or you have the wrong financial results, it's not going to be very valuable to you as an enterprise. The context we have gotten, the way we run the systems, the 20 years of experience, plus having our stack been very AI native now, right? We're getting the same advantages as AI companies have in terms of technology, we're wrapping and providing a lot of insights into these things. We also work in a very open ecosystem, right? Customers talk in many different ways. You can't just say that there's only one way to operate today a business. Having that opportunity to integrate into lot different system providers, like system of records, integrate into any kind of hyperscaler, be able to also run or use any large language model, any data provider, any tool to build your workflows custom on top of our ServiceNow platform, and have the whole governance and security layer. One of the biggest issue you run into when you're building the systems out there or running a business application, a business process, is the security and the governance. I would say most of the time when we build our products, they have to be compliant. We spend probably 50%-60% of our cost of engineering and R&D is around that whole security compliance and things like that, which are very hard to replicate from scratch. It takes years of hardening. The lifecycle maintenance around that is pretty long. Customers need a place to call when things go wrong as well. That's all the things we provide out of the box, working together with our customers, proven and operating at scale. The partner ecosystem associated with that, right? The go-to-market muscle we have for years and years of building that relationship with our customers. Those things all add up to really be able to provide that comfort for our customers as well as differentiated and innovative products long-term. Yeah. That 50%-60% statistic's pretty interesting. Yeah, a lot of people forget. The people think build is the only thing you have to do. Yeah. Build is itself is 20%. Yeah. The rest is all around everything you have to do around it. Yeah. That's what it takes to be in the enterprise, right? Yes. Um- Very boring, but painful, but important. If we go up one level with this AI topic, Bill McDermott is in the Q1 call that the Now Assist target was being raised from, you know, $1 billion to $1.5 billion, 50%. I think in Q1 you guys were already around $750 million. You got growth in customer spending, 1 million+ on Now Assist, growing 130% year-over-year. You know, that's all real acceleration. Importantly, I think Gina kind of emphasized the methodology hasn't changed, even as if you guys kind of repackaged some of the some of the pricing. What's given you confidence in that revised figure as you move away from this kind of sidecar AI concept to help fuel that growth and, you know, maybe even kind of go beyond that? I think we've been monitoring, of course, our pipeline as well as the customer interest and adoption associated with that and the renewal as well. As Bill mentioned in Q1, we'll be going from billion-dollar ACV to a $1.5 billion target this year. Our plan was $1 billion. We feel very confident with $1.5 billion ACV on that one, is because I think 1, with the agentic use cases and some of these things going production and people using it, we're seeing the volume of usage go up very fast. We're seeing a lot of interest to do multiple use cases than what they started with as with enterprises. That gives us the ability to say, "You know what? We will end up using up whatever entitlements the customers had previously, and when they'll renew, they will renew at a higher, longer, broader entitlements, or they might buy us as packs early enough. That is one vector which we see happening. Second thing, as we think about some of the things we're adding around our product portfolio. Our product portfolio has grown drastically. We've added things like AI Control Tower, what we're doing with EmployeeWorks in terms of amount of requests coming into our system, which will land up burning down lot of the Now Assist and the request volume will continue to go up. What we're doing with security portfolio is pulling a lot of this conversation for monitoring and managing a lot of AI systems as well. Suddenly we are in more conversations about AI than maybe previously we were. Yeah. I expect our renewal sizes to be higher, as well as we're seeing expansion into a lot of new cross-sell areas which we didn't have. We simplified the packaging as well, so we're bringing AI across all of our product portfolio, and that will drive a lot more conversations with our customers going forward as well. I think in general, just the demand is there. We're seeing a lot of adoption. We're seeing a lot of interest. I think the innovation cycle continues to grow, and we see a lot more capabilities now continue to be introduced into our portfolio, which will help our customers with their AI use cases as well. Yeah. Touching on the, you know, some of the pricing and repackaging that you're doing. I know it's early days, and it's going to get phased over time. Yeah What has the customer reception been to that? Do they understand this new schema? Does it help them with that adoption friction? Yeah, for those who are not aware, what we did, we had a product we have called Pro Plus, which is the Now Assist, the premium SKU, which was AI-driven, which we've been in the market for a couple of years. That has done very well. The pricing structure we had, which was a hybrid pricing structure, licensing based, but combination of seed, but also consumption, right? That has been in the market for some time, and we've seen customers understand that hybrid pricing structure. Gives them predictability as well as flexibility. They're not gonna get sticker shock or any kind of billing shock. Also they know what they're using, and if they're using it and seeing value, they'll renew it higher. They have predictability in that regard. We also account for revenue upfront as well as we use that, just like any subscription. The model has worked very well. What we decided was, based on what we're seeing from our customers, to bring that same kind of structure to all of our SKUs, not just to the premium SKU. The idea is that every SKU will have some AI capabilities tiered by different functionality level. The top tier always remains most differentiated. The bottom tier will have some basic capabilities, but customers can start with AI as they choose to, and they can use the consumption model to see value and use it while we still have a licensing kind of mechanism. Given how successful we've been with Now Assist and the Pro Plus kind of combination, we are now introducing that across the product portfolio. Also removing this nickel-and-diming way we used to structure where you had to buy every feature separately. We're bringing it together into much more structured across ServiceNow product portfolio. Yeah. Giving them the AI Control Tower capabilities, the experience layer, the data connectivity in this kind of a tiered structure. Every customer I've spoken to so far really like it because this gives them the ability to take AI if they choose to in all the SKUs, but they do it by consumption, so they only use it if they choose to, and they will have associated entitlements. It simplifies our go-to-market. Our sales teams can really pitch this very simply and easily, and customers can move up the tiers as they choose to based on functionality they like as well as the adoption they see value from. I think it's very well-liked so far. Yeah. The hybrid model has worked already. We're not experimenting with new pricing structure. It's just now adding the same pricing structure which has worked into all of our SKUs and simplifying our go-to-market as well as customer conversation. We're very excited about how this has evolved. We announced it at Knowledge, which was just a few weeks ago, which is our large customer event. Everybody seems to be feeling comfortable with the way we are thinking about this and how we will go. There's no forced migration. They can do this at renewal. The Pro Plus and the Prime, which are the new version, the top version in this new structure, is equivalent, so there's no pricing change for those customers. Yeah. The rest will go through the license changes whenever they renew if they choose to. Customers like that message, and so far we feel good about where we are. If we touch on the less positive aspects of AI, I think it's created a lot of confusion out there. I think you guys said in your last earnings call that customers don't know what to do. They're somewhat confused. We kind of hear the same thing. I've heard more people than usual who aren't in finance talk about terminal value risk. It's getting out into the ether a little bit and probably creating a little bit of reluctance, right? When we think about that, what does that look like? How is it impacting decision-making from your perspective? Maybe the other important piece is this an issue that's gonna persist for three, four, five quarters? Is it something that'll be resolved in a few quarters? How should we frame it that way? I guess maybe if I understand your question, one, there's definitely AI there's a volume of messaging or AI in the market is large. Yeah. Customers don't know in many cases what is real, what is not real, where to go and where to do things, who to work with and how to get going, right? That's why I think our goal always has been about talking to customers about how to get started and where to get started. Yeah. Right? Some of the most of the times the conversation is the use cases, what makes sense, and we are very prescriptive now than maybe a year ago about which use cases for a particular customer makes sense. We provide them POC capabilities. We provide them the FDE help, engineering capabilities as well as needed in a short amount of time, but get them the right use cases identified so they can get going. That has removed a lot of the barriers for us at least. Having said that, I think customers also are cautious about security and risk and the whole visibility as we talked about earlier. That's why I think the investment we're making with AI Control Tower again resonates. Even if they don't might want to use anything from AI from us. Yeah they can still use AI Control Tower to have the central control plane. Suddenly we have a conversation even if they're thinking about something else from AI perspective. Similarly, the security around devices are becoming very real because there is proliferation of physical AI and other things coming up. We now suddenly have many at-bats than probably what we had before, right? If you look at where we were at two years ago and where we are now, the volume of conversations we can have with a customer, we can start from so many different angles. The EmployeeWorks is a very good example as well. Any kind of conversational interface you want to provide to customers to do things across the enterprise, find information, ask for tasks or getting work done, again, we provide you an option. Same thing with what we're doing with AI-driven omni-channel intake with CSM or FSM. I think that is really opening up a lot more senior level conversations for ServiceNow. IT always loved us. They continue to love and invest in what we're doing going beyond with autonomous AI, and other things like that. Yeah. Same thing with CISOs. Suddenly you have a lot of supporting structures inside the company for ServiceNow. AI, irrespective whether you use AI or not from us, there's always a product available to you. Yeah. Right? The AI part, I mean, again, you know, we'll see how in many years. I don't think you use large language models or frontier models for everything. Yeah Very costly over time probably, or some things you don't even make sense to use. We give you this flexibility and the ability to really do the right thing to run and operate your business. Eventually you want outcome, cost savings, and a lot more efficiency, and that's what we are driving towards. The idea of autonomous AI and AI specialists is that. Yeah. That I'm giving you an agent, the whole autonomous worker who replace a human worker at a much cheaper alternative, but guaranteed outcomes. Yeah Instead of just having this thing do something which might not be really productive and then have to redo every time. We're trying to improve that situation with outcome-driven mindset at least. Yeah. Let's follow that thought of, you know, the LLMs out there. We've seen a little bit of leapfrogging, right? One day ChatGPT is gonna take over everything, then it's Gemini, then it's Claude. Who knows what'll be next? What is your view on that? I mean, do you expect that cycle of the leapfrogging to continue? From the customer perspective, are they, you know, dedicating themselves to one or the other, or they just want whatever gets the job done the best? Yeah, no, I think it's still early days. I mean, there is huge amount of leapfrogging as well as, I would say, equivalence or commoditization. Yeah. There's a lot of between the large language models, and we work all with all of them, and we work with a lot of open source models as well. We try to be more effective about what will give us the right result, irrespective of which one is the model. I think customers, same thing, right? Underneath, as we said, we also have a large language model in our stack. Customers get to choose, but a lot of time they just take the default. Yeah. Most of them don't care, right? A lot of them wanted to get a guaranteed outcome as well as secure environment. As long as we can guarantee that, we can choose and change the models underneath the covers, they would not even know or care most of the time. There are some who will because they might have standardized on one or something like that, or they might have a license or commit agreement which they might want to burn down. They'll be trying to do large language model trying to do something similar to what Claude do, where your commit model you can burn down different of your AR usage. Over time, I think there will be a lot more commoditization going on there as well. There'll be tiering. I would expect in some of the use cases you want to use an older or cheaper or even non-differentiated model. Yeah. In some very complicated use cases, you might use the most latest one. Over time it just becomes like chips. Yeah. I mean, you don't really care what chip you are using in your application. I think it'll be same thing in this infrastructure layer. It's going to be cost driven, less differentiation. How many times you want to keep on testing them? See what happens with every version, you have to do prompt engineering again. You have to redo your work, that's the problem I think a lot of customers are realizing when they say you want to build something completely brand new on a large language model. Every time the new version comes out, you have to retest. It's not backward compatible. It's not feature is not future-proofed. A lot of those issues we have to take away. Yeah. That's what we're trying to do with our software stack, is to remove that barrier of usage without customers having to deal with it. We deal with it for them. We extract it out enough, we give you the value and outcome or a solution on top of it. I expect a lot of these things to change over time. Yeah. Many of these model companies will start having to figure out how to solve some of those problems. Yeah. Let's look out a few years. You guys laid out the $30 billion-$32 billion 2030 subscription revenue target. You know, a lot of pieces in that, but what people noticed was it's like, you know, high teens, 20%+ CAGR between now and then. You know, AI 30% of ACV at that same timeframe. This last quarter you guys You know, if you think about the CRPO kind of growth curve, you know, it's kind of in that high teens area as well. Kind of implies that, you know, you guys are gonna be able to sustain that level of growth, maybe even inch up a little bit between now and then. Help us kind of frame some of those components that are in them. You guys have talked about it and what gives you guys confidence? I mean, you know, Bill obviously sounded very confident about it, but help us maybe kind of get closer to where he is maybe. Yeah. I think at Financial Analyst Day, we wanted to lay out a plan for till 2030. Yeah. I think there are base cases, and I think there's a lot of upside cases here, right? We all see there's huge amount of headroom available for us to grow. What we already have, we want to make sure that at least there's a clarity in terms of where we will definitely be there. Yeah. The $30 billion-$32 billion is our base case, and we'll continue to focus on accelerating more of that going forward. The reason we feel very confident, one, I think our innovation cycle, the product we're building is resonating with our customers. We are still the proven and most adopted enterprise kind of workflow as well as the whole idea of bringing AI, workflow data, and security into one platform. I don't think anybody does that today end to end, right. We give you that confidence level for our enterprise customers and it also unlocking a lot of new things for us. I think if you look at the growth engines we have, security and risk growing at a very significant rate. As you said, we kind of crossed a billion dollars. We'll talk about where it's going, but it is 1 of the fast-growing areas. The roadmap has been accelerated. Second, if you look at data, platform, data analytics. The Workflow Data Fabric, we talked about RaptorDB, which is our Postgres HTAP database. $100 million ACV in less than a year. It's like a very fast acceleration path. This is just untapped market. It's all available to us. You add the Workflow Data Fabric, the connectivity with the Zero Copy Adaptors, the data analytics and the AI platform, the data platform we're building out. That's 1 of the fastest-growing areas. We talked about one potentially very fast, a billion-dollar business for us. Similarly, if you look at what CRM is. Our customer service, one of the fastest, business to billion-plus. We are on target for two, I think, what we shared at Financial Analyst Day. That is getting continued to accelerate. We've done a lot of modern work with AI, voice, and capabilities of SFM. CPQ acquisition of Logik.ai is really driving a lot more conversation with the customers like NVIDIA and others who are using that for CPQ today. We have a large growth engines, which are all substantially invested in, innovated, differentiated, while we have a very good base platform, right? It's completely AI-driven, but also it's very deterministic in terms of it can get the work done, guaranteeing an outcome. Our, the domain expertise in IT, HR, CRM security allows us to really go into a lot of those conversations and give us the confidence that we can really accelerate growth in each of these areas. All these technologies are pulling in more and more of our products. What you look at with ITOM, ITAM, ITSM, what we're doing with portfolio management, what we have capabilities in our enterprise architecture. I mean, it's just a, it's a source to pay. We have a very substantial capability, but it's on this one platform. You don't have to keep on replicating every time you want to add new features. That's why we're able to innovate faster, which is very hard for many other vendors out there, where they have to keep on rebuilding a lot of things because they're not built on the same platform. Yeah. That's why we feel very bullish, about the headroom we have in front of us, and the pipeline and the customer traction is proving it out, so far. I think our base case is laid out, which we feel very confident. I think Bill mentioned at FAD that he has a lot more expectation, and I think we all know we will be there, so. Yeah. Bill seems like he has very high expectations. Very quickly, just on CRM, you hit on it a little bit. I think the quote you guys had was you're gonna blow through $2 billion. When you're seeing success with that product, what does that look like? Are you displacing other CRM, you know, systems out there? Are you kind of coming in in areas where, you know, there's a little bit of greenfield and growing from there? What does that look like? 'Cause, you know, a lot of enterprises have pretty robust CRM solutions. Yeah. I think CRM is a broad market. I gotta be very clear. We are the space which we have been seeing a lot of the investment we've been doing and seeing growth is customer service. Yeah. Which is very logical for ServiceNow. Right. Right. Because we are doing case management, we understand incidents, we understand issues and how you resolve it. That has driven the early growth of CRM business for us. Associated with that is field service management in terms of how you operate all the people who help you. You add layer on top of that all this complex orchestration work. Like CPQ is a very complex orchestration. It's not just asking for information. You're going to do something, which is, again, very much action-oriented, like ServiceNow has been always. Same thing with some of the things we're doing around distributions, like order management. The portfolio we build is in areas where we know we have expertise, differentiation, and the credibility and the capability building the platform. That's why we feel very confident of blowing through $2 billion, as you heard at Financial. It's a pretty large number already in a very short amount of time. We are displacing people in some cases. Yeah. I think, in customer service, there are many incumbents. I think a lot of the what's happening in customer service, given that most of customer service products out there, customer has been very fragmented. Yeah Very old architecture. People are rethinking voice, for example. They're rethinking how omni-channel intake happens. People are not just calling people on the phone for support. They're doing it in multiple mediums. For us to build that in a platform, because AI platform is what is supporting our CSM product, is very quick. Yeah. Today, we have customers who now are using this multi-channel way of interacting with our systems and replacing what they had, or sometimes consolidating. The opportunity is to really modernize, make it more efficient, and get into this technology stack, which allows them to get into many more areas for customers to do much more efficiently. That's why we're displacing or interoperating in many cases. Yeah. It's just a modern stack that, and proven capability allowing a lot of people who are running CSM, we're also running the IT systems. Yeah. They're used to our platform. For them now extending that into CSM become much more natural because they're not redeploying a completely new stack. It's very easy for them to now add CSM from us or CPQ and other things like that, given it's built on the same platform. Yeah. Very insightful. Thank you for coming here and giving us your wisdom. I think we'll all be watching ServiceNow very closely. No, thank you all for your interest and support as well. Thank you.

Speaker 2: Thank you for everybody for joining here. It's a great pleasure to be here with Amit Zavery, President, Chief Product Officer, and Chief Operating Officer, ServiceNow. Amit, thank you for joining us. Thank you for everybody for joining here. thank you for everybody for joining here It's a great pleasure to be here with Amit Zavery, President, Chief Product Officer, and Chief Operating Officer, ServiceNow. it's a great pleasure to be here with amit zavery president chief product officer and chief operating officer servicenow Amit, thank you for joining us. amit thank you for joining us

Speaker 1: Yeah, thanks for having me. Hello, everyone. Yeah, thanks for having me. yeah thanks for having me Hello, everyone. hello everyone

Speaker 2: We're back here a year on after what's been a very consequential 12 months, I think, in ServiceNow's history. You guys have three highly strategic acquisitions, launched Autonomous Workforce, wholesale repackaging under a new kind of scheme with Foundation, Advanced, Prime categories. Just had your Financial Analyst Day laid out, a $30 billion subscription target by 2030. Lot to dig into, but we can start off simply. Love to hear introduction of yourself, your background, and a little about what you focus on at ServiceNow. We're back here a year on after what's been a very consequential 12 months, I think, in ServiceNow's history. we're back here a year on after what's been a very consequential 12 months i think in servicenow's history You guys have three highly strategic acquisitions, launched Autonomous Workforce, wholesale repackaging under a new kind of scheme with Foundation, Advanced, Prime categories. you guys have three highly strategic acquisitions launched autonomous workforce wholesale repackaging under a new kind of scheme with foundation advanced prime categories Just had your Financial Analyst Day laid out, a $30 billion subscription target by 2030. just had your financial analyst day laid out a $30 billion subscription target by 2030 Lot to dig into, but we can start off simply. lot to dig into but we can start off simply Love to hear introduction of yourself, your background, and a little about what you focus on at ServiceNow. love to hear introduction of yourself your background and a little about what you focus on at servicenow

Speaker 1: Well, first out, it's been a busy, I'd say, 12, 18 months for sure. I've been at ServiceNow for the last 18 months. As you mentioned, I run the product engineering operations and product strategy for ServiceNow. Previously, I was at Google Cloud for six years, where I ran all the platform teams, including a lot of the strategic products and portfolio there. Previous to that, I was at 24 years at Oracle, ran various different groups. Before I left, I ran the cloud team as well as all the middleware and the platform team over there as well, which was substantial part of Oracle's revenue. Very excited to be at ServiceNow. Lot of things going on. Great portfolio, great product, plans going forward, as well as great customer base, so really good time to be at ServiceNow. Well, first out, it's been a busy, I'd say, 12, 18 months for sure. well first out it's been a busy i'd say 12 18 months for sure I've been at ServiceNow for the last 18 months. i've been at servicenow for the last 18 months As you mentioned, I run the product engineering operations and product strategy for ServiceNow. as you mentioned i run the product engineering operations and product strategy for servicenow Previously, I was at Google Cloud for six years, where I ran all the platform teams, including a lot of the strategic products and portfolio there. previously i was at google cloud for six years where i ran all the platform teams including a lot of the strategic products and portfolio there Previous to that, I was at 24 years at Oracle, ran various different groups. previous to that i was at 24 years at oracle ran various different groups Before I left, I ran the cloud team as well as all the middleware and the platform team over there as well, which was substantial part of Oracle's revenue. before i left i ran the cloud team as well as all the middleware and the platform team over there as well which was substantial part of oracle's revenue Very excited to be at ServiceNow. very excited to be at servicenow Lot of things going on. lot of things going on Great portfolio, great product, plans going forward, as well as great customer base, so really good time to be at ServiceNow. great portfolio great product plans going forward as well as great customer base so really good time to be at servicenow

Speaker 2: Yeah. Yeah. I think we should start off with what was probably the biggest topic for me when I was talking to the partners and customers out at the Knowledge Conference, that's AI Control Tower. A lot of traction with it. Our checks suggest that customers are deeply concerned about, you know, their AI sprawl. They don't know what these agents are doing, shadow IT, not to mention the cost side of it as well. You know, they need something to bring in this all together. You can talk about, you know, what's differentiated, kill switches, all those pieces. I think one thing before we get into it that's interesting is, you know, this is a very contested space. Everybody wants that governance and control. Customers are choosing you guys to do that. Yeah. yeah Yeah. yeah I think we should start off with what was probably the biggest topic for me when I was talking to the partners and customers out at the Knowledge Conference, that's AI Control Tower. i think we should start off with what was probably the biggest topic for me when i was talking to the partners and customers out at the knowledge conference that's ai control tower A lot of traction with it. a lot of traction with it Our checks suggest that customers are deeply concerned about, you know, their AI sprawl. our checks suggest that customers are deeply concerned about you know their ai sprawl They don't know what these agents are doing, shadow IT, not to mention the cost side of it as well. they don't know what these agents are doing shadow it not to mention the cost side of it as well You know, they need something to bring in this all together. you know they need something to bring in this all together You can talk about, you know, what's differentiated, kill switches, all those pieces. you can talk about you know what's differentiated kill switches all those pieces I think one thing before we get into it that's interesting is, you know, this is a very contested space. i think one thing before we get into it that's interesting is you know this is a very contested space Everybody wants that governance and control. everybody wants that governance and control Customers are choosing you guys to do that. customers are choosing you guys to do that Can you describe why it's so differentiated and why you guys are the right platform for customers? Can you describe why it's so differentiated and why you guys are the right platform for customers? can you describe why it's so differentiated and why you guys are the right platform for customers

Speaker 1: See, AI Control Tower, last year when people started talking about Agentic, and even when I was at Google, the amount of AI work going on, and I was building a lot of the AI technologies, it was clear that customers are going to face a lot of issues managing the AI capabilities, the usage of AI, discovering a lot of things which are going inside the enterprise, and really making sure it's secured and governed. Last year, we launched AI Control Tower. One of the reason behind that is whenever we're talking about agentic to those customers, they were really getting worried about security, governance, compliance, auditability, as well as, just visibility broadly. See, AI Control Tower, last year when people started talking about Agentic, and even when I was at Google, the amount of AI work going on, and I was building a lot of the AI technologies, it was clear that customers are going to face a lot of issues managing the AI capabilities, the usage of AI, discovering a lot of things which are going inside the enterprise, and really making sure it's secured and governed. see ai control tower last year when people started talking about agentic and even when i was at google the amount of ai work going on and i was building a lot of the ai technologies it was clear that customers are going to face a lot of issues managing the ai capabilities the usage of ai discovering a lot of things which are going inside the enterprise and really making sure it's secured and governed Last year, we launched AI Control Tower. last year we launched ai control tower One of the reason behind that is whenever we're talking about agentic to those customers, they were really getting worried about security, governance, compliance, auditability, as well as, just visibility broadly. one of the reason behind that is whenever we're talking about agentic to those customers they were really getting worried about security governance compliance auditability as well as just visibility broadly ServiceNow has this product called CMDB as a core foundation of our product portfolio, where we manage and monitor all the assets inside an enterprise, any IT asset, hardware, software. For us to do that and extending that to AI was very natural. AI agents are software. We are discovering a lot of other things for every IT systems out there anyway. We added the AI agents as a way for extending what we did in CMDB very quickly and easily, and then giving them so much monitoring and measurement as well as a cost management associated with that. That opened up a lot of conversation with our customers. ServiceNow has this product called CMDB as a core foundation of our product portfolio, where we manage and monitor all the assets inside an enterprise, any IT asset, hardware, software. servicenow has this product called cmdb as a core foundation of our product portfolio where we manage and monitor all the assets inside an enterprise any it asset hardware software For us to do that and extending that to AI was very natural. for us to do that and extending that to ai was very natural AI agents are software. ai agents are software We are discovering a lot of other things for every IT systems out there anyway. we are discovering a lot of other things for every it systems out there anyway We added the AI agents as a way for extending what we did in CMDB very quickly and easily, and then giving them so much monitoring and measurement as well as a cost management associated with that. we added the ai agents as a way for extending what we did in cmdb very quickly and easily and then giving them so much monitoring and measurement as well as a cost management associated with that That opened up a lot of conversation with our customers. that opened up a lot of conversation with our customers The reason it's kind of valuable for us as well as why we are differentiated, one, as I said, we already had the foundation for managing and monitoring a lot of the systems, AI was very natural. Second is, I think, we were connected to so many different systems out there. I mean, ServiceNow is kind of enterprise OS, the way you think about it, connecting various different system, east to west across different systems already. Very heterogeneous, very open ecosystem. For us to be more of a neutral third party where we can now not just track our AI agents, but also discover things coming from any different systems out there, hyperscalers, all the large language or frontier model companies, any AI systems or system of record. The reason it's kind of valuable for us as well as why we are differentiated, one, as I said, we already had the foundation for managing and monitoring a lot of the systems, AI was very natural. the reason it's kind of valuable for us as well as why we are differentiated one as i said we already had the foundation for managing and monitoring a lot of the systems ai was very natural Second is, I think, we were connected to so many different systems out there. second is i think we were connected to so many different systems out there I mean, ServiceNow is kind of enterprise OS, the way you think about it, connecting various different system, east to west across different systems already. i mean servicenow is kind of enterprise os the way you think about it connecting various different system east to west across different systems already Very heterogeneous, very open ecosystem. very heterogeneous very open ecosystem For us to be more of a neutral third party where we can now not just track our AI agents, but also discover things coming from any different systems out there, hyperscalers, all the large language or frontier model companies, any AI systems or system of record. for us to be more of a neutral third party where we can now not just track our ai agents but also discover things coming from any different systems out there hyperscalers all the large language or frontier model companies any ai systems or system of record Providing a full governance layer on top of that, just like we did for any asset, became much more differentiated because of that. The other part which we have been doing very well is we recently did an acquisition of a company called Veza, which has a patented technology called Access Graph. An Access Graph for non-human identity is becoming very critical element for monitoring and managing AI agents because their use cases as well as the identity changes so frequently, and you have to do that monitoring real time. They do around 30 billion different permissioning and parameters for non-human identities. Providing a full governance layer on top of that, just like we did for any asset, became much more differentiated because of that. providing a full governance layer on top of that just like we did for any asset became much more differentiated because of that The other part which we have been doing very well is we recently did an acquisition of a company called Veza, which has a patented technology called Access Graph. the other part which we have been doing very well is we recently did an acquisition of a company called veza which has a patented technology called access graph An Access Graph for non-human identity is becoming very critical element for monitoring and managing AI agents because their use cases as well as the identity changes so frequently, and you have to do that monitoring real time. an access graph for non-human identity is becoming very critical element for monitoring and managing ai agents because their use cases as well as the identity changes so frequently and you have to do that monitoring real time They do around 30 billion different permissioning and parameters for non-human identities. they do around 30 billion different permissioning and parameters for non-human identities We brought that into ServiceNow AI Control Tower, and that suddenly changed the game for a lot of our customers because they can feel more confident about AI systems not taking wrong actions or doing wrong things and giving them the visibility. There's tons of stuff going on in our product portfolio, and that has been really well adopted and differentiated, and we continue to invest and provide that capability with AI Control Tower now. We brought that into ServiceNow AI Control Tower, and that suddenly changed the game for a lot of our customers because they can feel more confident about AI systems not taking wrong actions or doing wrong things and giving them the visibility. we brought that into servicenow ai control tower and that suddenly changed the game for a lot of our customers because they can feel more confident about ai systems not taking wrong actions or doing wrong things and giving them the visibility There's tons of stuff going on in our product portfolio, and that has been really well adopted and differentiated, and we continue to invest and provide that capability with AI Control Tower now. there's tons of stuff going on in our product portfolio and that has been really well adopted and differentiated and we continue to invest and provide that capability with ai control tower now

Speaker 2: Maybe to double-click a little bit in there, you know, you have this product that's answering a lot of customer needs. You know, customers are in different parts of their AI journeys. At what point do they kind of hit that where they're like, "Oh, we need to do something that's like AI Control Tower"? Is it a cost function? They're like, "Oh, all of a sudden we're spending more than we expect," or is security the main function where they're like, "Hey, if we wanna push this into production, we need to have a way to make sure that it doesn't go rogue"? Maybe to double-click a little bit in there, you know, you have this product that's answering a lot of customer needs. maybe to double-click a little bit in there you know you have this product that's answering a lot of customer needs You know, customers are in different parts of their AI journeys. you know customers are in different parts of their ai journeys At what point do they kind of hit that where they're like, "Oh, we need to do something that's like AI Control Tower"? at what point do they kind of hit that where they're like "oh we need to do something that's like ai control tower" Is it a cost function? is it a cost function They're like, "Oh, all of a sudden we're spending more than we expect," or is security the main function where they're like, "Hey, if we wanna push this into production, we need to have a way to make sure that it doesn't go rogue"? they're like "oh all of a sudden we're spending more than we expect," or is security the main function where they're like "hey if we wanna push this into production we need to have a way to make sure that it doesn't go rogue"

Speaker 1: Yeah. I think it usually starts with, when more usage of AI starts happening. Like, if they want especially. Yeah. yeah I think it usually starts with, when more usage of AI starts happening. i think it usually starts with when more usage of ai starts happening Like, if they want especially. like if they want especially Where you have all these business processes and systems connecting various different AI agents together, and there could be a lot of shadow AI projects happening. Then you have no idea what's going on and who's spending what or who's using what. Last year, as we said, when the agentic use cases were starting to emerge, a lot of the worry customers had around was just control and visibility. What AI Control Tower conversation started was just peace of mind. Where you don't have this sprawl of AI without IT knowing what's going on, who's using what, how much they're spending. It really accelerates the AI adoption by having this as a central control plane and heterogeneous. A lot of the providers today, they do pieces of the technology for their own visibility. Where you have all these business processes and systems connecting various different AI agents together, and there could be a lot of shadow AI projects happening. where you have all these business processes and systems connecting various different ai agents together and there could be a lot of shadow ai projects happening Then you have no idea what's going on and who's spending what or who's using what. then you have no idea what's going on and who's spending what or who's using what Last year, as we said, when the agentic use cases were starting to emerge, a lot of the worry customers had around was just control and visibility. last year as we said when the agentic use cases were starting to emerge a lot of the worry customers had around was just control and visibility What AI Control Tower conversation started was just peace of mind. Where you don't have this sprawl of AI without IT knowing what's going on, who's using what, how much they're spending. what ai control tower conversation started was just peace of mind. where you don't have this sprawl of ai without it knowing what's going on who's using what how much they're spending It really accelerates the AI adoption by having this as a central control plane and heterogeneous. it really accelerates the ai adoption by having this as a central control plane and heterogeneous A lot of the providers today, they do pieces of the technology for their own visibility. a lot of the providers today they do pieces of the technology for their own visibility They might connect into a few other things. The end-to-end discovery mechanism and the whole monitoring and visibility mechanism, it doesn't exist in the market other than AI Control Tower. I think it just removes that barrier for adoption of AI, because now IT team members as well as CIOs and CISOs start feeling a little more confident they can get going with AI without just random stuff happening inside the enterprise. They might connect into a few other things. they might connect into a few other things The end-to-end discovery mechanism and the whole monitoring and visibility mechanism, it doesn't exist in the market other than AI Control Tower. the end-to-end discovery mechanism and the whole monitoring and visibility mechanism it doesn't exist in the market other than ai control tower I think it just removes that barrier for adoption of AI, because now IT team members as well as CIOs and CISOs start feeling a little more confident they can get going with AI without just random stuff happening inside the enterprise. i think it just removes that barrier for adoption of ai because now it team members as well as cios and cisos start feeling a little more confident they can get going with ai without just random stuff happening inside the enterprise

Speaker 2: Yeah. Yeah. yeah

Speaker 1: With enterprise, anything I mean, you've seen a lot of examples, I mean, you saw the recent PocketOS and others, where if you don't have visibility and control, things can go completely wrong, and you need to have some guardrails, and this is what it allows them to do. With enterprise, anything I mean, you've seen a lot of examples, I mean, you saw the recent PocketOS and others, where if you don't have visibility and control, things can go completely wrong, and you need to have some guardrails, and this is what it allows them to do. with enterprise anything i mean you've seen a lot of examples i mean you saw the recent pocketos and others where if you don't have visibility and control things can go completely wrong and you need to have some guardrails and this is what it allows them to do

Speaker 2: Yeah. It's a gating factor so they can deploy more. If we go to something you already touched on, which is the acquisition, Moveworks, Armis, Veza. One thing that I noticed is, you know, I think investors have been kind of trying to digest, you know, what it means, why they're strategic. When I talk to the customers and partners, they seem really clear about what it brings together, why it's such a high value. You know, there's been a lot of companies that do acquisitions. This was one of the ones where they seem to be paying attention a lot and kind of see the vision that you have. What do you think that they're getting that maybe investors kind of haven't wrapped their mind around? Yeah. yeah It's a gating factor so they can deploy more. it's a gating factor so they can deploy more If we go to something you already touched on, which is the acquisition, Moveworks, Armis, Veza. if we go to something you already touched on which is the acquisition moveworks armis veza One thing that I noticed is, you know, I think investors have been kind of trying to digest, you know, what it means, why they're strategic. one thing that i noticed is you know i think investors have been kind of trying to digest you know what it means why they're strategic When I talk to the customers and partners, they seem really clear about what it brings together, why it's such a high value. when i talk to the customers and partners they seem really clear about what it brings together why it's such a high value You know, there's been a lot of companies that do acquisitions. you know there's been a lot of companies that do acquisitions This was one of the ones where they seem to be paying attention a lot and kind of see the vision that you have. this was one of the ones where they seem to be paying attention a lot and kind of see the vision that you have What do you think that they're getting that maybe investors kind of haven't wrapped their mind around? what do you think that they're getting that maybe investors kind of haven't wrapped their mind around

Speaker 1: No, I think we've been very disciplined and thoughtful about what we acquire. Over the last, as mentioned, with the AI growth, there's an opportunity to really innovate faster, get a lot more domain expertise in some of the areas. One of the biggest areas we've seen a need for is around security and governance, right? The acquisition like Veza and Armis fit into this idea of how do you really monitor and manage the proliferation of AI systems, but also devices. Armis provides the ability to do OT, IoT, as well as medical devices, vulnerability management, and exposure management. Today, our business and security space is a billion dollar-plus, which happened last quarter. No, I think we've been very disciplined and thoughtful about what we acquire. no i think we've been very disciplined and thoughtful about what we acquire Over the last, as mentioned, with the AI growth, there's an opportunity to really innovate faster, get a lot more domain expertise in some of the areas. over the last as mentioned with the ai growth there's an opportunity to really innovate faster get a lot more domain expertise in some of the areas One of the biggest areas we've seen a need for is around security and governance, right? one of the biggest areas we've seen a need for is around security and governance right The acquisition like Veza and Armis fit into this idea of how do you really monitor and manage the proliferation of AI systems, but also devices. the acquisition like veza and armis fit into this idea of how do you really monitor and manage the proliferation of ai systems but also devices Armis provides the ability to do OT, IoT, as well as medical devices, vulnerability management, and exposure management. armis provides the ability to do ot iot as well as medical devices vulnerability management and exposure management Today, our business and security space is a billion dollar-plus, which happened last quarter. today our business and security space is a billion dollar-plus which happened last quarter Q3 of last year. That was organic business we built over a few years, and it continues to grow very, very fast. What we saw from customers was that you already manage all the IT assets. Why are you not able to now do also a security and asset and vulnerability management for non-IT assets like OT, IoT, and specifically medical devices? Armis fit in very well with that kind of mindset, right? We allows us to extend to any kind of devices out there, and also extends what we have in CMDB and augment that with millions, billions of devices into that system as well. Q3 of last year. q3 of last year That was organic business we built over a few years, and it continues to grow very, very fast. that was organic business we built over a few years and it continues to grow very very fast What we saw from customers was that you already manage all the IT assets. what we saw from customers was that you already manage all the it assets Why are you not able to now do also a security and asset and vulnerability management for non-IT assets like OT, IoT, and specifically medical devices? why are you not able to now do also a security and asset and vulnerability management for non-it assets like ot iot and specifically medical devices Armis fit in very well with that kind of mindset, right? armis fit in very well with that kind of mindset right We allows us to extend to any kind of devices out there, and also extends what we have in CMDB and augment that with millions, billions of devices into that system as well. we allows us to extend to any kind of devices out there and also extends what we have in cmdb and augment that with millions billions of devices into that system as well That as the growth with physical AI and other things come up, we see a lot of value for ServiceNow to provide that exposure management and vulnerability management on top of post-breach work we were doing already. Similarly, Veza is a little much smaller than Armis is, but this idea of patented AI access graph technology, again, augments everything we do for non-human identities, just like we use for human identity. The identity governance specifically becomes very critical. Our security business and the product portfolio roadmap got accelerated by this acquisition. We're bringing a lot of good domain experts in this area who are well-versed and have been doing this for quite a few years, and made our story much more powerful to customers as they think about AI adoption as well. We continue to do the integration with third-party systems, right? That as the growth with physical AI and other things come up, we see a lot of value for ServiceNow to provide that exposure management and vulnerability management on top of post-breach work we were doing already. that as the growth with physical ai and other things come up we see a lot of value for servicenow to provide that exposure management and vulnerability management on top of post-breach work we were doing already Similarly, Veza is a little much smaller than Armis is, but this idea of patented AI access graph technology, again, augments everything we do for non-human identities, just like we use for human identity. similarly veza is a little much smaller than armis is but this idea of patented ai access graph technology again augments everything we do for non-human identities just like we use for human identity The identity governance specifically becomes very critical. the identity governance specifically becomes very critical Our security business and the product portfolio roadmap got accelerated by this acquisition. our security business and the product portfolio roadmap got accelerated by this acquisition We're bringing a lot of good domain experts in this area who are well-versed and have been doing this for quite a few years, and made our story much more powerful to customers as they think about AI adoption as well. we're bringing a lot of good domain experts in this area who are well-versed and have been doing this for quite a few years and made our story much more powerful to customers as they think about ai adoption as well We continue to do the integration with third-party systems, right? we continue to do the integration with third-party systems right This is not like it's replacing a lot of things we were not doing before. We integrate into a CrowdStrike for endpoint. We integrate with Palo Alto and network-related stuff and get a lot of signals. The whole exposure and vulnerability management with the idea of post-breach. Today, CISOs are second-largest buying center for ServiceNow already. This is not like it's replacing a lot of things we were not doing before. this is not like it's replacing a lot of things we were not doing before We integrate into a CrowdStrike for endpoint. we integrate into a crowdstrike for endpoint We integrate with Palo Alto and network-related stuff and get a lot of signals. we integrate with palo alto and network-related stuff and get a lot of signals The whole exposure and vulnerability management with the idea of post-breach. the whole exposure and vulnerability management with the idea of post-breach Today, CISOs are second-largest buying center for ServiceNow already. today cisos are second-largest buying center for servicenow already Right? IT, CIOs were number one, and CISOs are number two. It was natural for us to keep on expanding into these new areas, not only increase our TAM, but also accelerate our roadmap and bring a lot of this expertise into our product. It has resonated very well with our customers. Our pipeline since the acquisition has grown for security portfolio very, very well, and we continue to see a lot of good traction with the product being integrated. The Moveworks acquisition was very much led with this idea of conversation first, AI native, experience layer on top of ServiceNow. We have a great set of technologies today for doing, actioning, fulfilling a task. On the requester, we wanted a very AI native experience, and Moveworks brings that. Right? right IT, CIOs were number one, and CISOs are number two. it cios were number one and cisos are number two It was natural for us to keep on expanding into these new areas, not only increase our TAM, but also accelerate our roadmap and bring a lot of this expertise into our product. it was natural for us to keep on expanding into these new areas not only increase our tam but also accelerate our roadmap and bring a lot of this expertise into our product It has resonated very well with our customers. it has resonated very well with our customers Our pipeline since the acquisition has grown for security portfolio very, very well, and we continue to see a lot of good traction with the product being integrated. our pipeline since the acquisition has grown for security portfolio very very well and we continue to see a lot of good traction with the product being integrated The Moveworks acquisition was very much led with this idea of conversation first, AI native, experience layer on top of ServiceNow. the moveworks acquisition was very much led with this idea of conversation first ai native experience layer on top of servicenow We have a great set of technologies today for doing, actioning, fulfilling a task. we have a great set of technologies today for doing actioning fulfilling a task On the requester, we wanted a very AI native experience, and Moveworks brings that. on the requester we wanted a very ai native experience and moveworks brings that That's now integrated into our Employee Center Pro product we had, the whole employee center, and bringing this thing together as EmployeeWorks. In the first quarter, we announced, I think in the Q1 results, we did more as a combined product than what the Moveworks has done by independent last whole last year. We saw acceleration because of the roadmap being integrated, able to deliver a lot of new AI-native capabilities on our product portfolio, and it's becoming our user experience across all of the offerings we have today, right? We've been very thoughtful about how we bring all this stuff together to really differentiate, accelerate the roadmap, as well as continue to innovate in all these areas. That's now integrated into our Employee Center Pro product we had, the whole employee center, and bringing this thing together as EmployeeWorks. that's now integrated into our employee center pro product we had the whole employee center and bringing this thing together as employeeworks In the first quarter, we announced, I think in the Q1 results, we did more as a combined product than what the Moveworks has done by independent last whole last year. in the first quarter we announced i think in the q1 results we did more as a combined product than what the moveworks has done by independent last whole last year We saw acceleration because of the roadmap being integrated, able to deliver a lot of new AI-native capabilities on our product portfolio, and it's becoming our user experience across all of the offerings we have today, right? we saw acceleration because of the roadmap being integrated able to deliver a lot of new ai-native capabilities on our product portfolio and it's becoming our user experience across all of the offerings we have today right We've been very thoughtful about how we bring all this stuff together to really differentiate, accelerate the roadmap, as well as continue to innovate in all these areas. we've been very thoughtful about how we bring all this stuff together to really differentiate accelerate the roadmap as well as continue to innovate in all these areas

Speaker 2: Yeah. One of the debates out there obviously has been, you know, if AI is going to generate all this value, where is that value gonna accrue? You know, where is most likely gonna get captured? I think you guys have been pretty explicit that, you know, the moat is not necessarily the LLM. You know, you guys have the Context Engine, there's graph of graphs anchored to the CMDB, layered with Veza. Armis is included in there too. You guys have 100 billion annual workflows, 7 million, excuse me, 7 trillion transactions. You guys put it pretty simply at your Analyst Day. There's no competitor that can do that, right? Help us understand, you know, in layman's terms, what the technical reasons are that others can't do that. Yeah. yeah One of the debates out there obviously has been, you know, if AI is going to generate all this value, where is that value gonna accrue? one of the debates out there obviously has been you know if ai is going to generate all this value where is that value gonna accrue You know, where is most likely gonna get captured? you know where is most likely gonna get captured I think you guys have been pretty explicit that, you know, the moat is not necessarily the LLM. i think you guys have been pretty explicit that you know the moat is not necessarily the llm You know, you guys have the Context Engine, there's graph of graphs anchored to the CMDB, layered with Veza. you know you guys have the context engine there's graph of graphs anchored to the cmdb layered with veza Armis is included in there too. armis is included in there too You guys have 100 billion annual workflows, 7 million, excuse me, 7 trillion transactions. you guys have 100 billion annual workflows 7 million excuse me 7 trillion transactions You guys put it pretty simply at your Analyst Day. you guys put it pretty simply at your analyst day There's no competitor that can do that, right? there's no competitor that can do that right Help us understand, you know, in layman's terms, what the technical reasons are that others can't do that. help us understand you know in layman's terms what the technical reasons are that others can't do that What do you provide through your platform that enables that differentiation? What do you provide through your platform that enables that differentiation? what do you provide through your platform that enables that differentiation

Speaker 1: Yeah. I think you have to remember, I mean, we have been doing this work for our customers for 20+ years. The amount of data we collect, as you said, 100 billion workflows we run, plus 7 trillion transactions happen on our platform, which is growing at 20%+, 25%. So the metadata we create, the context we generate around why a decision was when made in a business process, why an exception was done, who made those exception, those are not available in any documents which our LLM can read. Yeah. yeah I think you have to remember, I mean, we have been doing this work for our customers for 20+ years. i think you have to remember i mean we have been doing this work for our customers for 20+ years The amount of data we collect, as you said, 100 billion workflows we run, plus 7 trillion transactions happen on our platform, which is growing at 20%+, 25%. the amount of data we collect as you said 100 billion workflows we run plus 7 trillion transactions happen on our platform which is growing at 20%+ 25% So the metadata we create, the context we generate around why a decision was when made in a business process, why an exception was done, who made those exception, those are not available in any documents which our LLM can read. so the metadata we create the context we generate around why a decision was when made in a business process why an exception was done who made those exception those are not available in any documents which our llm can read These are all information we're collecting as you run these transactions. That's in a Context Engine which is distributed across multiple areas. Metadata is very hard for people to understand what to do with it if it is not done by ServiceNow as a part of our workflow, right? We build that. The CMDB, as I said, is really kind of the enterprise database today, right? Used by all the Fortune 500 and pretty large number of Fortune 2000 companies. That has become the kind of the underlying ways for large enterprises to operate on ServiceNow. These are all information we're collecting as you run these transactions. these are all information we're collecting as you run these transactions That's in a Context Engine which is distributed across multiple areas. that's in a context engine which is distributed across multiple areas Metadata is very hard for people to understand what to do with it if it is not done by ServiceNow as a part of our workflow, right? metadata is very hard for people to understand what to do with it if it is not done by servicenow as a part of our workflow right We build that. we build that The CMDB, as I said, is really kind of the enterprise database today, right? the cmdb as i said is really kind of the enterprise database today right Used by all the Fortune 500 and pretty large number of Fortune 2000 companies. used by all the fortune 500 and pretty large number of fortune 2000 companies That has become the kind of the underlying ways for large enterprises to operate on ServiceNow. that has become the kind of the underlying ways for large enterprises to operate on servicenow All the systems today, they operate the operational part of it, in terms of executing the workflows, business processes around for IT, employees, for security, what we do for customer service, FSM, and other things like that. It's pretty broad and deep for many years. That information allows us to now take some advantage of AI technologies like LLM, which is probably around 8%-10% of IP in our stack, but the rest we build and operate over this information we have collected, plus the efficiency we have gained. Everything doesn't require need to be an LLM driven, right? There's a lot of deterministic things we do which requires much more understanding of our business processes and not have to say it's land of spending money on tokens, but you can still operate that very efficiently. All the systems today, they operate the operational part of it, in terms of executing the workflows, business processes around for IT, employees, for security, what we do for customer service, FSM, and other things like that. all the systems today they operate the operational part of it in terms of executing the workflows business processes around for it employees for security what we do for customer service fsm and other things like that It's pretty broad and deep for many years. it's pretty broad and deep for many years That information allows us to now take some advantage of AI technologies like LLM, which is probably around 8%-10% of IP in our stack, but the rest we build and operate over this information we have collected, plus the efficiency we have gained. that information allows us to now take some advantage of ai technologies like llm which is probably around 8%-10% of ip in our stack but the rest we build and operate over this information we have collected plus the efficiency we have gained Everything doesn't require need to be an LLM driven, right? everything doesn't require need to be an llm driven right There's a lot of deterministic things we do which requires much more understanding of our business processes and not have to say it's land of spending money on tokens, but you can still operate that very efficiently. there's a lot of deterministic things we do which requires much more understanding of our business processes and not have to say it's land of spending money on tokens but you can still operate that very efficiently We bring the deterministic mindset to a very probabilistic systems like LLMs and still give you a guaranteed outcome, because you can't make mistakes in enterprise systems. If you get the wrong answer, you instead of onboarding an employee, you de-board an employee or you have the wrong financial results, it's not going to be very valuable to you as an enterprise. The context we have gotten, the way we run the systems, the 20 years of experience, plus having our stack been very AI native now, right? We're getting the same advantages as AI companies have in terms of technology, we're wrapping and providing a lot of insights into these things. We also work in a very open ecosystem, right? We bring the deterministic mindset to a very probabilistic systems like LLMs and still give you a guaranteed outcome, because you can't make mistakes in enterprise systems. we bring the deterministic mindset to a very probabilistic systems like llms and still give you a guaranteed outcome because you can't make mistakes in enterprise systems If you get the wrong answer, you instead of onboarding an employee, you de-board an employee or you have the wrong financial results, it's not going to be very valuable to you as an enterprise. if you get the wrong answer you instead of onboarding an employee you de-board an employee or you have the wrong financial results it's not going to be very valuable to you as an enterprise The context we have gotten, the way we run the systems, the 20 years of experience, plus having our stack been very AI native now, right? the context we have gotten the way we run the systems the 20 years of experience plus having our stack been very ai native now right We're getting the same advantages as AI companies have in terms of technology, we're wrapping and providing a lot of insights into these things. we're getting the same advantages as ai companies have in terms of technology we're wrapping and providing a lot of insights into these things We also work in a very open ecosystem, right? we also work in a very open ecosystem right Customers talk in many different ways. You can't just say that there's only one way to operate today a business. Having that opportunity to integrate into lot different system providers, like system of records, integrate into any kind of hyperscaler, be able to also run or use any large language model, any data provider, any tool to build your workflows custom on top of our ServiceNow platform, and have the whole governance and security layer. One of the biggest issue you run into when you're building the systems out there or running a business application, a business process, is the security and the governance. I would say most of the time when we build our products, they have to be compliant. Customers talk in many different ways. customers talk in many different ways You can't just say that there's only one way to operate today a business. you can't just say that there's only one way to operate today a business Having that opportunity to integrate into lot different system providers, like system of records, integrate into any kind of hyperscaler, be able to also run or use any large language model, any data provider, any tool to build your workflows custom on top of our ServiceNow platform, and have the whole governance and security layer. having that opportunity to integrate into lot different system providers like system of records integrate into any kind of hyperscaler be able to also run or use any large language model any data provider any tool to build your workflows custom on top of our servicenow platform and have the whole governance and security layer One of the biggest issue you run into when you're building the systems out there or running a business application, a business process, is the security and the governance. one of the biggest issue you run into when you're building the systems out there or running a business application a business process is the security and the governance I would say most of the time when we build our products, they have to be compliant. i would say most of the time when we build our products they have to be compliant We spend probably 50%-60% of our cost of engineering and R&D is around that whole security compliance and things like that, which are very hard to replicate from scratch. It takes years of hardening. The lifecycle maintenance around that is pretty long. Customers need a place to call when things go wrong as well. That's all the things we provide out of the box, working together with our customers, proven and operating at scale. The partner ecosystem associated with that, right? The go-to-market muscle we have for years and years of building that relationship with our customers. Those things all add up to really be able to provide that comfort for our customers as well as differentiated and innovative products long-term. We spend probably 50%-60% of our cost of engineering and R&D is around that whole security compliance and things like that, which are very hard to replicate from scratch. we spend probably 50%-60% of our cost of engineering and r&d is around that whole security compliance and things like that which are very hard to replicate from scratch It takes years of hardening. it takes years of hardening The lifecycle maintenance around that is pretty long. the lifecycle maintenance around that is pretty long Customers need a place to call when things go wrong as well. customers need a place to call when things go wrong as well That's all the things we provide out of the box, working together with our customers, proven and operating at scale. that's all the things we provide out of the box working together with our customers proven and operating at scale The partner ecosystem associated with that, right? the partner ecosystem associated with that right The go-to-market muscle we have for years and years of building that relationship with our customers. the go-to-market muscle we have for years and years of building that relationship with our customers Those things all add up to really be able to provide that comfort for our customers as well as differentiated and innovative products long- term. those things all add up to really be able to provide that comfort for our customers as well as differentiated and innovative products long- term

Speaker 2: Yeah. That 50%-60% statistic's pretty interesting. Yeah. yeah That 50%-60% statistic's pretty interesting. that 50%-60% statistic's pretty interesting

Speaker 1: Yeah, a lot of people forget. The people think build is the only thing you have to do. Yeah, a lot of people forget. yeah a lot of people forget The people think build is the only thing you have to do. the people think build is the only thing you have to do

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Build is itself is 20%. Build is itself is 20%. build is itself is 20%

Speaker 2: Yeah. Yeah. yeah

Speaker 1: The rest is all around everything you have to do around it. The rest is all around everything you have to do around it. the rest is all around everything you have to do around it

Speaker 2: Yeah. That's what it takes to be in the enterprise, right? Yeah. yeah That's what it takes to be in the enterprise, right? that's what it takes to be in the enterprise right

Speaker 1: Yes. Yes. yes

Speaker 2: Um- Um- um-

Speaker 1: Very boring, but painful, but important. Very boring, but painful, but important. very boring but painful but important

Speaker 2: If we go up one level with this AI topic, Bill McDermott is in the Q1 call that the Now Assist target was being raised from, you know, $1 billion to $1.5 billion, 50%. I think in Q1 you guys were already around $750 million. You got growth in customer spending, 1 million+ on Now Assist, growing 130% year-over-year. You know, that's all real acceleration. Importantly, I think Gina kind of emphasized the methodology hasn't changed, even as if you guys kind of repackaged some of the some of the pricing. What's given you confidence in that revised figure as you move away from this kind of sidecar AI concept to help fuel that growth and, you know, maybe even kind of go beyond that? If we go up one level with this AI topic, Bill McDermott is in the Q1 call that the Now Assist target was being raised from, you know, $1 billion to $1.5 billion, 50%. if we go up one level with this ai topic bill mcdermott is in the q1 call that the now assist target was being raised from you know $1 billion to $1.5 billion 50% I think in Q1 you guys were already around $750 million. i think in q1 you guys were already around $750 million You got growth in customer spending, 1 million+ on Now Assist, growing 130% year-over-year. you got growth in customer spending 1 million+ on now assist growing 130% year-over-year You know, that's all real acceleration. you know that's all real acceleration Importantly, I think Gina kind of emphasized the methodology hasn't changed, even as if you guys kind of repackaged some of the some of the pricing. importantly i think gina kind of emphasized the methodology hasn't changed even as if you guys kind of repackaged some of the some of the pricing What's given you confidence in that revised figure as you move away from this kind of sidecar AI concept to help fuel that growth and, you know, maybe even kind of go beyond that? what's given you confidence in that revised figure as you move away from this kind of sidecar ai concept to help fuel that growth and you know maybe even kind of go beyond that

Speaker 1: I think we've been monitoring, of course, our pipeline as well as the customer interest and adoption associated with that and the renewal as well. As Bill mentioned in Q1, we'll be going from billion-dollar ACV to a $1.5 billion target this year. Our plan was $1 billion. We feel very confident with $1.5 billion ACV on that one, is because I think 1, with the agentic use cases and some of these things going production and people using it, we're seeing the volume of usage go up very fast. We're seeing a lot of interest to do multiple use cases than what they started with as with enterprises. That gives us the ability to say, "You know what? I think we've been monitoring, of course, our pipeline as well as the customer interest and adoption associated with that and the renewal as well. i think we've been monitoring of course our pipeline as well as the customer interest and adoption associated with that and the renewal as well As Bill mentioned in Q1, we'll be going from billion-dollar ACV to a $1.5 billion target this year. as bill mentioned in q1 we'll be going from billion-dollar acv to a $1.5 billion target this year Our plan was $1 billion. our plan was $1 billion We feel very confident with $1.5 billion ACV on that one, is because I think 1, with the agentic use cases and some of these things going production and people using it, we're seeing the volume of usage go up very fast. we feel very confident with $1.5 billion acv on that one is because i think 1 with the agentic use cases and some of these things going production and people using it we're seeing the volume of usage go up very fast We're seeing a lot of interest to do multiple use cases than what they started with as with enterprises. we're seeing a lot of interest to do multiple use cases than what they started with as with enterprises That gives us the ability to say, "You know what? that gives us the ability to say "you know what We will end up using up whatever entitlements the customers had previously, and when they'll renew, they will renew at a higher, longer, broader entitlements, or they might buy us as packs early enough. That is one vector which we see happening. Second thing, as we think about some of the things we're adding around our product portfolio. Our product portfolio has grown drastically. We've added things like AI Control Tower, what we're doing with EmployeeWorks in terms of amount of requests coming into our system, which will land up burning down lot of the Now Assist and the request volume will continue to go up. What we're doing with security portfolio is pulling a lot of this conversation for monitoring and managing a lot of AI systems as well. We will end up using up whatever entitlements the customers had previously, and when they'll renew, they will renew at a higher, longer, broader entitlements, or they might buy us as packs early enough. we will end up using up whatever entitlements the customers had previously and when they'll renew they will renew at a higher longer broader entitlements or they might buy us as packs early enough That is one vector which we see happening. that is one vector which we see happening Second thing, as we think about some of the things we're adding around our product portfolio. second thing as we think about some of the things we're adding around our product portfolio Our product portfolio has grown drastically. our product portfolio has grown drastically We've added things like AI Control Tower, what we're doing with EmployeeWorks in terms of amount of requests coming into our system, which will land up burning down lot of the Now Assist and the request volume will continue to go up. we've added things like ai control tower what we're doing with employeeworks in terms of amount of requests coming into our system which will land up burning down lot of the now assist and the request volume will continue to go up What we're doing with security portfolio is pulling a lot of this conversation for monitoring and managing a lot of AI systems as well. what we're doing with security portfolio is pulling a lot of this conversation for monitoring and managing a lot of ai systems as well Suddenly we are in more conversations about AI than maybe previously we were. Suddenly we are in more conversations about AI than maybe previously we were. suddenly we are in more conversations about ai than maybe previously we were

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I expect our renewal sizes to be higher, as well as we're seeing expansion into a lot of new cross-sell areas which we didn't have. We simplified the packaging as well, so we're bringing AI across all of our product portfolio, and that will drive a lot more conversations with our customers going forward as well. I think in general, just the demand is there. We're seeing a lot of adoption. We're seeing a lot of interest. I think the innovation cycle continues to grow, and we see a lot more capabilities now continue to be introduced into our portfolio, which will help our customers with their AI use cases as well. I expect our renewal sizes to be higher, as well as we're seeing expansion into a lot of new cross-sell areas which we didn't have. i expect our renewal sizes to be higher as well as we're seeing expansion into a lot of new cross-sell areas which we didn't have We simplified the packaging as well, so we're bringing AI across all of our product portfolio, and that will drive a lot more conversations with our customers going forward as well. we simplified the packaging as well so we're bringing ai across all of our product portfolio and that will drive a lot more conversations with our customers going forward as well I think in general, just the demand is there. i think in general just the demand is there We're seeing a lot of adoption. we're seeing a lot of adoption We're seeing a lot of interest. we're seeing a lot of interest I think the innovation cycle continues to grow, and we see a lot more capabilities now continue to be introduced into our portfolio, which will help our customers with their AI use cases as well. i think the innovation cycle continues to grow and we see a lot more capabilities now continue to be introduced into our portfolio which will help our customers with their ai use cases as well

Speaker 2: Yeah. Touching on the, you know, some of the pricing and repackaging that you're doing. I know it's early days, and it's going to get phased over time. Yeah. yeah Touching on the, you know, some of the pricing and repackaging that you're doing. touching on the you know some of the pricing and repackaging that you're doing I know it's early days, and it's going to get phased over time. i know it's early days and it's going to get phased over time

Speaker 1: Yeah Yeah yeah

Speaker 2: What has the customer reception been to that? Do they understand this new schema? Does it help them with that adoption friction? What has the customer reception been to that? what has the customer reception been to that Do they understand this new schema? do they understand this new schema Does it help them with that adoption friction? does it help them with that adoption friction

Speaker 1: Yeah, for those who are not aware, what we did, we had a product we have called Pro Plus, which is the Now Assist, the premium SKU, which was AI-driven, which we've been in the market for a couple of years. That has done very well. The pricing structure we had, which was a hybrid pricing structure, licensing based, but combination of seed, but also consumption, right? That has been in the market for some time, and we've seen customers understand that hybrid pricing structure. Gives them predictability as well as flexibility. They're not gonna get sticker shock or any kind of billing shock. Also they know what they're using, and if they're using it and seeing value, they'll renew it higher. They have predictability in that regard. Yeah, for those who are not aware, what we did, we had a product we have called Pro Plus, which is the Now Assist, the premium SKU, which was AI-driven, which we've been in the market for a couple of years. yeah for those who are not aware what we did we had a product we have called pro plus which is the now assist the premium sku which was ai-driven which we've been in the market for a couple of years That has done very well. that has done very well The pricing structure we had, which was a hybrid pricing structure, licensing based, but combination of seed, but also consumption, right? the pricing structure we had which was a hybrid pricing structure licensing based but combination of seed but also consumption right That has been in the market for some time, and we've seen customers understand that hybrid pricing structure. that has been in the market for some time and we've seen customers understand that hybrid pricing structure Gives them predictability as well as flexibility. gives them predictability as well as flexibility They're not gonna get sticker shock or any kind of billing shock. they're not gonna get sticker shock or any kind of billing shock Also they know what they're using, and if they're using it and seeing value, they'll renew it higher. also they know what they're using and if they're using it and seeing value they'll renew it higher They have predictability in that regard. they have predictability in that regard We also account for revenue upfront as well as we use that, just like any subscription. The model has worked very well. What we decided was, based on what we're seeing from our customers, to bring that same kind of structure to all of our SKUs, not just to the premium SKU. The idea is that every SKU will have some AI capabilities tiered by different functionality level. The top tier always remains most differentiated. The bottom tier will have some basic capabilities, but customers can start with AI as they choose to, and they can use the consumption model to see value and use it while we still have a licensing kind of mechanism. Given how successful we've been with Now Assist and the Pro Plus kind of combination, we are now introducing that across the product portfolio. We also account for revenue upfront as well as we use that, just like any subscription. we also account for revenue upfront as well as we use that just like any subscription The model has worked very well. the model has worked very well What we decided was, based on what we're seeing from our customers, to bring that same kind of structure to all of our SKUs, not just to the premium SKU. what we decided was based on what we're seeing from our customers to bring that same kind of structure to all of our skus not just to the premium sku The idea is that every SKU will have some AI capabilities tiered by different functionality level. the idea is that every sku will have some ai capabilities tiered by different functionality level The top tier always remains most differentiated. the top tier always remains most differentiated The bottom tier will have some basic capabilities, but customers can start with AI as they choose to, and they can use the consumption model to see value and use it while we still have a licensing kind of mechanism. the bottom tier will have some basic capabilities but customers can start with ai as they choose to and they can use the consumption model to see value and use it while we still have a licensing kind of mechanism Given how successful we've been with Now Assist and the Pro Plus kind of combination, we are now introducing that across the product portfolio. given how successful we've been with now assist and the pro plus kind of combination we are now introducing that across the product portfolio Also removing this nickel-and-diming way we used to structure where you had to buy every feature separately. We're bringing it together into much more structured across ServiceNow product portfolio. Also removing this nickel-and-diming way we used to structure where you had to buy every feature separately. also removing this nickel-and-diming way we used to structure where you had to buy every feature separately We're bringing it together into much more structured across ServiceNow product portfolio. we're bringing it together into much more structured across servicenow product portfolio

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Giving them the AI Control Tower capabilities, the experience layer, the data connectivity in this kind of a tiered structure. Every customer I've spoken to so far really like it because this gives them the ability to take AI if they choose to in all the SKUs, but they do it by consumption, so they only use it if they choose to, and they will have associated entitlements. It simplifies our go-to-market. Our sales teams can really pitch this very simply and easily, and customers can move up the tiers as they choose to based on functionality they like as well as the adoption they see value from. I think it's very well-liked so far. Giving them the AI Control Tower capabilities, the experience layer, the data connectivity in this kind of a tiered structure. giving them the ai control tower capabilities the experience layer the data connectivity in this kind of a tiered structure Every customer I've spoken to so far really like it because this gives them the ability to take AI if they choose to in all the SKUs, but they do it by consumption, so they only use it if they choose to, and they will have associated entitlements. every customer i've spoken to so far really like it because this gives them the ability to take ai if they choose to in all the skus but they do it by consumption so they only use it if they choose to and they will have associated entitlements It simplifies our go-to-market. it simplifies our go-to-market Our sales teams can really pitch this very simply and easily, and customers can move up the tiers as they choose to based on functionality they like as well as the adoption they see value from. our sales teams can really pitch this very simply and easily and customers can move up the tiers as they choose to based on functionality they like as well as the adoption they see value from I think it's very well-liked so far. i think it's very well-liked so far

Speaker 2: Yeah. Yeah. yeah

Speaker 1: The hybrid model has worked already. We're not experimenting with new pricing structure. It's just now adding the same pricing structure which has worked into all of our SKUs and simplifying our go-to-market as well as customer conversation. We're very excited about how this has evolved. We announced it at Knowledge, which was just a few weeks ago, which is our large customer event. Everybody seems to be feeling comfortable with the way we are thinking about this and how we will go. There's no forced migration. They can do this at renewal. The Pro Plus and the Prime, which are the new version, the top version in this new structure, is equivalent, so there's no pricing change for those customers. The hybrid model has worked already. the hybrid model has worked already We're not experimenting with new pricing structure. we're not experimenting with new pricing structure It's just now adding the same pricing structure which has worked into all of our SKUs and simplifying our go-to-market as well as customer conversation. it's just now adding the same pricing structure which has worked into all of our skus and simplifying our go-to-market as well as customer conversation We're very excited about how this has evolved. we're very excited about how this has evolved We announced it at Knowledge, which was just a few weeks ago, which is our large customer event. we announced it at knowledge which was just a few weeks ago which is our large customer event Everybody seems to be feeling comfortable with the way we are thinking about this and how we will go. everybody seems to be feeling comfortable with the way we are thinking about this and how we will go There's no forced migration. there's no forced migration They can do this at renewal. they can do this at renewal The Pro Plus and the Prime, which are the new version, the top version in this new structure, is equivalent, so there's no pricing change for those customers. the pro plus and the prime which are the new version the top version in this new structure is equivalent so there's no pricing change for those customers

Speaker 2: Yeah. Yeah. yeah

Speaker 1: The rest will go through the license changes whenever they renew if they choose to. Customers like that message, and so far we feel good about where we are. The rest will go through the license changes whenever they renew if they choose to. the rest will go through the license changes whenever they renew if they choose to Customers like that message, and so far we feel good about where we are. customers like that message and so far we feel good about where we are

Speaker 2: If we touch on the less positive aspects of AI, I think it's created a lot of confusion out there. I think you guys said in your last earnings call that customers don't know what to do. They're somewhat confused. We kind of hear the same thing. I've heard more people than usual who aren't in finance talk about terminal value risk. It's getting out into the ether a little bit and probably creating a little bit of reluctance, right? When we think about that, what does that look like? How is it impacting decision-making from your perspective? Maybe the other important piece is this an issue that's gonna persist for three, four, five quarters? Is it something that'll be resolved in a few quarters? If we touch on the less positive aspects of AI, I think it's created a lot of confusion out there. if we touch on the less positive aspects of ai i think it's created a lot of confusion out there I think you guys said in your last earnings call that customers don't know what to do. i think you guys said in your last earnings call that customers don't know what to do They're somewhat confused. they're somewhat confused We kind of hear the same thing. we kind of hear the same thing I've heard more people than usual who aren't in finance talk about terminal value risk. i've heard more people than usual who aren't in finance talk about terminal value risk It's getting out into the ether a little bit and probably creating a little bit of reluctance, right? it's getting out into the ether a little bit and probably creating a little bit of reluctance right When we think about that, what does that look like? when we think about that what does that look like How is it impacting decision-making from your perspective? how is it impacting decision-making from your perspective Maybe the other important piece is this an issue that's gonna persist for three, four, five quarters? maybe the other important piece is this an issue that's gonna persist for three, four, five quarters Is it something that'll be resolved in a few quarters? is it something that'll be resolved in a few quarters How should we frame it that way? How should we frame it that way? how should we frame it that way

Speaker 1: I guess maybe if I understand your question, one, there's definitely AI there's a volume of messaging or AI in the market is large. I guess maybe if I understand your question, one, there's definitely AI there's a volume of messaging or AI in the market is large. i guess maybe if i understand your question one there's definitely ai there's a volume of messaging or ai in the market is large

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Customers don't know in many cases what is real, what is not real, where to go and where to do things, who to work with and how to get going, right? That's why I think our goal always has been about talking to customers about how to get started and where to get started. Customers don't know in many cases what is real, what is not real, where to go and where to do things, who to work with and how to get going, right? customers don't know in many cases what is real what is not real where to go and where to do things who to work with and how to get going right That's why I think our goal always has been about talking to customers about how to get started and where to get started. that's why i think our goal always has been about talking to customers about how to get started and where to get started

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Right? Some of the most of the times the conversation is the use cases, what makes sense, and we are very prescriptive now than maybe a year ago about which use cases for a particular customer makes sense. We provide them POC capabilities. We provide them the FDE help, engineering capabilities as well as needed in a short amount of time, but get them the right use cases identified so they can get going. That has removed a lot of the barriers for us at least. Having said that, I think customers also are cautious about security and risk and the whole visibility as we talked about earlier. That's why I think the investment we're making with AI Control Tower again resonates. Even if they don't might want to use anything from AI from us. Right? right Some of the most of the times the conversation is the use cases, what makes sense, and we are very prescriptive now than maybe a year ago about which use cases for a particular customer makes sense. some of the most of the times the conversation is the use cases what makes sense and we are very prescriptive now than maybe a year ago about which use cases for a particular customer makes sense We provide them POC capabilities. we provide them poc capabilities We provide them the FDE help, engineering capabilities as well as needed in a short amount of time, but get them the right use cases identified so they can get going. we provide them the fde help engineering capabilities as well as needed in a short amount of time but get them the right use cases identified so they can get going That has removed a lot of the barriers for us at least. that has removed a lot of the barriers for us at least Having said that, I think customers also are cautious about security and risk and the whole visibility as we talked about earlier. having said that i think customers also are cautious about security and risk and the whole visibility as we talked about earlier That's why I think the investment we're making with AI Control Tower again resonates. that's why i think the investment we're making with ai control tower again resonates Even if they don't might want to use anything from AI from us. even if they don't might want to use anything from ai from us

Speaker 2: Yeah Yeah yeah

Speaker 1: they can still use AI Control Tower to have the central control plane. Suddenly we have a conversation even if they're thinking about something else from AI perspective. Similarly, the security around devices are becoming very real because there is proliferation of physical AI and other things coming up. We now suddenly have many at-bats than probably what we had before, right? If you look at where we were at two years ago and where we are now, the volume of conversations we can have with a customer, we can start from so many different angles. The EmployeeWorks is a very good example as well. Any kind of conversational interface you want to provide to customers to do things across the enterprise, find information, ask for tasks or getting work done, again, we provide you an option. they can still use AI Control Tower to have the central control plane. they can still use ai control tower to have the central control plane Suddenly we have a conversation even if they're thinking about something else from AI perspective. suddenly we have a conversation even if they're thinking about something else from ai perspective Similarly, the security around devices are becoming very real because there is proliferation of physical AI and other things coming up. similarly the security around devices are becoming very real because there is proliferation of physical ai and other things coming up We now suddenly have many at-bats than probably what we had before, right? we now suddenly have many at-bats than probably what we had before right If you look at where we were at two years ago and where we are now, the volume of conversations we can have with a customer, we can start from so many different angles. if you look at where we were at two years ago and where we are now the volume of conversations we can have with a customer we can start from so many different angles The EmployeeWorks is a very good example as well. the employeeworks is a very good example as well Any kind of conversational interface you want to provide to customers to do things across the enterprise, find information, ask for tasks or getting work done, again, we provide you an option. any kind of conversational interface you want to provide to customers to do things across the enterprise find information ask for tasks or getting work done again we provide you an option Same thing with what we're doing with AI-driven omni-channel intake with CSM or FSM. I think that is really opening up a lot more senior level conversations for ServiceNow. IT always loved us. They continue to love and invest in what we're doing going beyond with autonomous AI, and other things like that. Same thing with what we're doing with AI-driven omni-channel intake with CSM or FSM. same thing with what we're doing with ai-driven omni-channel intake with csm or fsm I think that is really opening up a lot more senior level conversations for ServiceNow. i think that is really opening up a lot more senior level conversations for servicenow IT always loved us. it always loved us They continue to love and invest in what we're doing going beyond with autonomous AI, and other things like that. they continue to love and invest in what we're doing going beyond with autonomous ai and other things like that

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Same thing with CISOs. Suddenly you have a lot of supporting structures inside the company for ServiceNow. AI, irrespective whether you use AI or not from us, there's always a product available to you. Same thing with CISOs. same thing with cisos Suddenly you have a lot of supporting structures inside the company for ServiceNow. suddenly you have a lot of supporting structures inside the company for servicenow AI, irrespective whether you use AI or not from us, there's always a product available to you. ai irrespective whether you use ai or not from us there's always a product available to you

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Right? The AI part, I mean, again, you know, we'll see how in many years. I don't think you use large language models or frontier models for everything. Right? right The AI part, I mean, again, you know, we'll see how in many years. the ai part i mean again you know we'll see how in many years I don't think you use large language models or frontier models for everything. i don't think you use large language models or frontier models for everything

Speaker 2: Yeah Yeah yeah

Speaker 1: Very costly over time probably, or some things you don't even make sense to use. We give you this flexibility and the ability to really do the right thing to run and operate your business. Eventually you want outcome, cost savings, and a lot more efficiency, and that's what we are driving towards. The idea of autonomous AI and AI specialists is that. Very costly over time probably, or some things you don't even make sense to use. very costly over time probably or some things you don't even make sense to use We give you this flexibility and the ability to really do the right thing to run and operate your business. we give you this flexibility and the ability to really do the right thing to run and operate your business Eventually you want outcome, cost savings, and a lot more efficiency, and that's what we are driving towards. eventually you want outcome cost savings and a lot more efficiency and that's what we are driving towards The idea of autonomous AI and AI specialists is that. the idea of autonomous ai and ai specialists is that

Speaker 2: Yeah. Yeah. yeah

Speaker 1: That I'm giving you an agent, the whole autonomous worker who replace a human worker at a much cheaper alternative, but guaranteed outcomes. That I'm giving you an agent, the whole autonomous worker who replace a human worker at a much cheaper alternative, but guaranteed outcomes. that i'm giving you an agent the whole autonomous worker who replace a human worker at a much cheaper alternative but guaranteed outcomes

Speaker 2: Yeah Yeah yeah

Speaker 1: Instead of just having this thing do something which might not be really productive and then have to redo every time. We're trying to improve that situation with outcome-driven mindset at least. Instead of just having this thing do something which might not be really productive and then have to redo every time. instead of just having this thing do something which might not be really productive and then have to redo every time We're trying to improve that situation with outcome-driven mindset at least. we're trying to improve that situation with outcome-driven mindset at least

Speaker 2: Yeah. Let's follow that thought of, you know, the LLMs out there. We've seen a little bit of leapfrogging, right? One day ChatGPT is gonna take over everything, then it's Gemini, then it's Claude. Who knows what'll be next? What is your view on that? I mean, do you expect that cycle of the leapfrogging to continue? From the customer perspective, are they, you know, dedicating themselves to one or the other, or they just want whatever gets the job done the best? Yeah. yeah Let's follow that thought of, you know, the LLMs out there. let's follow that thought of you know the llms out there We've seen a little bit of leapfrogging, right? we've seen a little bit of leapfrogging right One day ChatGPT is gonna take over everything, then it's Gemini, then it's Claude. one day chatgpt is gonna take over everything then it's gemini then it's claude Who knows what'll be next? who knows what'll be next What is your view on that? what is your view on that I mean, do you expect that cycle of the leapfrogging to continue? i mean do you expect that cycle of the leapfrogging to continue From the customer perspective, are they, you know, dedicating themselves to one or the other, or they just want whatever gets the job done the best? from the customer perspective are they you know dedicating themselves to one or the other or they just want whatever gets the job done the best

Speaker 1: Yeah, no, I think it's still early days. I mean, there is huge amount of leapfrogging as well as, I would say, equivalence or commoditization. Yeah, no, I think it's still early days. yeah no i think it's still early days I mean, there is huge amount of leapfrogging as well as, I would say, equivalence or commoditization. i mean there is huge amount of leapfrogging as well as i would say equivalence or commoditization

Speaker 2: Yeah. Yeah. yeah

Speaker 1: There's a lot of between the large language models, and we work all with all of them, and we work with a lot of open source models as well. We try to be more effective about what will give us the right result, irrespective of which one is the model. I think customers, same thing, right? Underneath, as we said, we also have a large language model in our stack. Customers get to choose, but a lot of time they just take the default. There's a lot of between the large language models, and we work all with all of them, and we work with a lot of open source models as well. there's a lot of between the large language models and we work all with all of them and we work with a lot of open source models as well We try to be more effective about what will give us the right result, irrespective of which one is the model. we try to be more effective about what will give us the right result irrespective of which one is the model I think customers, same thing, right? i think customers same thing right Underneath, as we said, we also have a large language model in our stack. underneath as we said we also have a large language model in our stack Customers get to choose, but a lot of time they just take the default. customers get to choose but a lot of time they just take the default

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Most of them don't care, right? A lot of them wanted to get a guaranteed outcome as well as secure environment. As long as we can guarantee that, we can choose and change the models underneath the covers, they would not even know or care most of the time. There are some who will because they might have standardized on one or something like that, or they might have a license or commit agreement which they might want to burn down. Most of them don't care, right? most of them don't care right A lot of them wanted to get a guaranteed outcome as well as secure environment. a lot of them wanted to get a guaranteed outcome as well as secure environment As long as we can guarantee that, we can choose and change the models underneath the covers, they would not even know or care most of the time. as long as we can guarantee that we can choose and change the models underneath the covers they would not even know or care most of the time There are some who will because they might have standardized on one or something like that, or they might have a license or commit agreement which they might want to burn down. there are some who will because they might have standardized on one or something like that or they might have a license or commit agreement which they might want to burn down They'll be trying to do large language model trying to do something similar to what Claude do, where your commit model you can burn down different of your AR usage. Over time, I think there will be a lot more commoditization going on there as well. There'll be tiering. I would expect in some of the use cases you want to use an older or cheaper or even non-differentiated model. They'll be trying to do large language model trying to do something similar to what Claude do, where your commit model you can burn down different of your AR usage. they'll be trying to do large language model trying to do something similar to what claude do where your commit model you can burn down different of your ar usage Over time, I think there will be a lot more commoditization going on there as well. over time i think there will be a lot more commoditization going on there as well There'll be tiering. there'll be tiering I would expect in some of the use cases you want to use an older or cheaper or even non-differentiated model. i would expect in some of the use cases you want to use an older or cheaper or even non-differentiated model

Speaker 2: Yeah. Yeah. yeah

Speaker 1: In some very complicated use cases, you might use the most latest one. Over time it just becomes like chips. In some very complicated use cases, you might use the most latest one. in some very complicated use cases you might use the most latest one Over time it just becomes like chips. over time it just becomes like chips

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I mean, you don't really care what chip you are using in your application. I think it'll be same thing in this infrastructure layer. It's going to be cost driven, less differentiation. How many times you want to keep on testing them? See what happens with every version, you have to do prompt engineering again. You have to redo your work, that's the problem I think a lot of customers are realizing when they say you want to build something completely brand new on a large language model. Every time the new version comes out, you have to retest. It's not backward compatible. It's not feature is not future-proofed. A lot of those issues we have to take away. I mean, you don't really care what chip you are using in your application. i mean you don't really care what chip you are using in your application I think it'll be same thing in this infrastructure layer. i think it'll be same thing in this infrastructure layer It's going to be cost driven, less differentiation. it's going to be cost driven less differentiation How many times you want to keep on testing them? how many times you want to keep on testing them See what happens with every version, you have to do prompt engineering again. see what happens with every version you have to do prompt engineering again You have to redo your work, that's the problem I think a lot of customers are realizing when they say you want to build something completely brand new on a large language model. you have to redo your work that's the problem i think a lot of customers are realizing when they say you want to build something completely brand new on a large language model Every time the new version comes out, you have to retest. every time the new version comes out you have to retest It's not backward compatible. it's not backward compatible It's not feature is not future-proofed. it's not feature is not future-proofed A lot of those issues we have to take away. a lot of those issues we have to take away

Speaker 2: Yeah. Yeah. yeah

Speaker 1: That's what we're trying to do with our software stack, is to remove that barrier of usage without customers having to deal with it. We deal with it for them. We extract it out enough, we give you the value and outcome or a solution on top of it. I expect a lot of these things to change over time. That's what we're trying to do with our software stack, is to remove that barrier of usage without customers having to deal with it. that's what we're trying to do with our software stack is to remove that barrier of usage without customers having to deal with it We deal with it for them. we deal with it for them We extract it out enough, we give you the value and outcome or a solution on top of it. we extract it out enough we give you the value and outcome or a solution on top of it I expect a lot of these things to change over time. i expect a lot of these things to change over time

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Many of these model companies will start having to figure out how to solve some of those problems. Many of these model companies will start having to figure out how to solve some of those problems. many of these model companies will start having to figure out how to solve some of those problems

Speaker 2: Yeah. Let's look out a few years. You guys laid out the $30 billion-$32 billion 2030 subscription revenue target. You know, a lot of pieces in that, but what people noticed was it's like, you know, high teens, 20%+ CAGR between now and then. You know, AI 30% of ACV at that same timeframe. This last quarter you guys You know, if you think about the CRPO kind of growth curve, you know, it's kind of in that high teens area as well. Kind of implies that, you know, you guys are gonna be able to sustain that level of growth, maybe even inch up a little bit between now and then. Help us kind of frame some of those components that are in them. You guys have talked about it and what gives you guys confidence? Yeah. yeah Let's look out a few years. let's look out a few years You guys laid out the $30 billion-$32 billion 2030 subscription revenue target. you guys laid out the $30 billion-$32 billion 2030 subscription revenue target You know, a lot of pieces in that, but what people noticed was it's like, you know, high teens, 20%+ CAGR between now and then. you know a lot of pieces in that but what people noticed was it's like you know high teens 20%+ cagr between now and then You know, AI 30% of ACV at that same timeframe. you know ai 30% of acv at that same timeframe This last quarter you guys You know, if you think about the CRPO kind of growth curve, you know, it's kind of in that high teens area as well. this last quarter you guys you know if you think about the crpo kind of growth curve you know it's kind of in that high teens area as well Kind of implies that, you know, you guys are gonna be able to sustain that level of growth, maybe even inch up a little bit between now and then. kind of implies that you know you guys are gonna be able to sustain that level of growth maybe even inch up a little bit between now and then Help us kind of frame some of those components that are in them. help us kind of frame some of those components that are in them You guys have talked about it and what gives you guys confidence? you guys have talked about it and what gives you guys confidence I mean, you know, Bill obviously sounded very confident about it, but help us maybe kind of get closer to where he is maybe. I mean, you know, Bill obviously sounded very confident about it, but help us maybe kind of get closer to where he is maybe. i mean you know bill obviously sounded very confident about it but help us maybe kind of get closer to where he is maybe

Speaker 1: Yeah. I think at Financial Analyst Day, we wanted to lay out a plan for till 2030. Yeah. yeah I think at Financial Analyst Day, we wanted to lay out a plan for till 2030. i think at financial analyst day we wanted to lay out a plan for till 2030

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I think there are base cases, and I think there's a lot of upside cases here, right? We all see there's huge amount of headroom available for us to grow. What we already have, we want to make sure that at least there's a clarity in terms of where we will definitely be there. I think there are base cases, and I think there's a lot of upside cases here, right? i think there are base cases and i think there's a lot of upside cases here right We all see there's huge amount of headroom available for us to grow. we all see there's huge amount of headroom available for us to grow What we already have, we want to make sure that at least there's a clarity in terms of where we will definitely be there. what we already have we want to make sure that at least there's a clarity in terms of where we will definitely be there

Speaker 2: Yeah. Yeah. yeah

Speaker 1: The $30 billion-$32 billion is our base case, and we'll continue to focus on accelerating more of that going forward. The reason we feel very confident, one, I think our innovation cycle, the product we're building is resonating with our customers. We are still the proven and most adopted enterprise kind of workflow as well as the whole idea of bringing AI, workflow data, and security into one platform. I don't think anybody does that today end to end, right. We give you that confidence level for our enterprise customers and it also unlocking a lot of new things for us. I think if you look at the growth engines we have, security and risk growing at a very significant rate. The $30 billion-$32 billion is our base case, and we'll continue to focus on accelerating more of that going forward. the $30 billion-$32 billion is our base case and we'll continue to focus on accelerating more of that going forward The reason we feel very confident, one, I think our innovation cycle, the product we're building is resonating with our customers. the reason we feel very confident one i think our innovation cycle the product we're building is resonating with our customers We are still the proven and most adopted enterprise kind of workflow as well as the whole idea of bringing AI, workflow data, and security into one platform. we are still the proven and most adopted enterprise kind of workflow as well as the whole idea of bringing ai workflow data and security into one platform I don't think anybody does that today end to end, right. i don't think anybody does that today end to end right We give you that confidence level for our enterprise customers and it also unlocking a lot of new things for us. we give you that confidence level for our enterprise customers and it also unlocking a lot of new things for us I think if you look at the growth engines we have, security and risk growing at a very significant rate. i think if you look at the growth engines we have security and risk growing at a very significant rate As you said, we kind of crossed a billion dollars. We'll talk about where it's going, but it is 1 of the fast-growing areas. The roadmap has been accelerated. Second, if you look at data, platform, data analytics. The Workflow Data Fabric, we talked about RaptorDB, which is our Postgres HTAP database. $100 million ACV in less than a year. It's like a very fast acceleration path. This is just untapped market. It's all available to us. You add the Workflow Data Fabric, the connectivity with the Zero Copy Adaptors, the data analytics and the AI platform, the data platform we're building out. That's 1 of the fastest-growing areas. We talked about one potentially very fast, a billion-dollar business for us. As you said, we kind of crossed a billion dollars. as you said we kind of crossed a billion dollars We'll talk about where it's going, but it is 1 of the fast-growing areas. we'll talk about where it's going but it is 1 of the fast-growing areas The roadmap has been accelerated. the roadmap has been accelerated Second, if you look at data, platform, data analytics. second if you look at data platform data analytics The Workflow Data Fabric, we talked about RaptorDB, which is our Postgres HTAP database. $100 million ACV in less than a year. the workflow data fabric we talked about raptordb which is our postgres htap database $100 million acv in less than a year It's like a very fast acceleration path. it's like a very fast acceleration path This is just untapped market. this is just untapped market It's all available to us. it's all available to us You add the Workflow Data Fabric, the connectivity with the Zero Copy Adaptors, the data analytics and the AI platform, the data platform we're building out. you add the workflow data fabric the connectivity with the zero copy adaptors the data analytics and the ai platform the data platform we're building out That's 1 of the fastest-growing areas. that's 1 of the fastest-growing areas We talked about one potentially very fast, a billion-dollar business for us. we talked about one potentially very fast a billion-dollar business for us Similarly, if you look at what CRM is. Our customer service, one of the fastest, business to billion-plus. We are on target for two, I think, what we shared at Financial Analyst Day. That is getting continued to accelerate. We've done a lot of modern work with AI, voice, and capabilities of SFM. CPQ acquisition of Logik.ai is really driving a lot more conversation with the customers like NVIDIA and others who are using that for CPQ today. We have a large growth engines, which are all substantially invested in, innovated, differentiated, while we have a very good base platform, right? It's completely AI-driven, but also it's very deterministic in terms of it can get the work done, guaranteeing an outcome. Similarly, if you look at what CRM is. Our customer service, one of the fastest, business to billion-plus. similarly if you look at what crm is. our customer service one of the fastest business to billion-plus We are on target for two, I think, what we shared at Financial Analyst Day. we are on target for two i think what we shared at financial analyst day That is getting continued to accelerate. that is getting continued to accelerate We've done a lot of modern work with AI, voice, and capabilities of SFM. we've done a lot of modern work with ai voice and capabilities of sfm CPQ acquisition of Logik.ai is really driving a lot more conversation with the customers like NVIDIA and others who are using that for CPQ today. cpq acquisition of logik.ai is really driving a lot more conversation with the customers like nvidia and others who are using that for cpq today We have a large growth engines, which are all substantially invested in, innovated, differentiated, while we have a very good base platform, right? we have a large growth engines which are all substantially invested in innovated differentiated while we have a very good base platform right It's completely AI-driven, but also it's very deterministic in terms of it can get the work done, guaranteeing an outcome. it's completely ai-driven but also it's very deterministic in terms of it can get the work done guaranteeing an outcome Our, the domain expertise in IT, HR, CRM security allows us to really go into a lot of those conversations and give us the confidence that we can really accelerate growth in each of these areas. All these technologies are pulling in more and more of our products. What you look at with ITOM, ITAM, ITSM, what we're doing with portfolio management, what we have capabilities in our enterprise architecture. I mean, it's just a, it's a source to pay. We have a very substantial capability, but it's on this one platform. You don't have to keep on replicating every time you want to add new features. Our, the domain expertise in IT, HR, CRM security allows us to really go into a lot of those conversations and give us the confidence that we can really accelerate growth in each of these areas. our the domain expertise in it hr crm security allows us to really go into a lot of those conversations and give us the confidence that we can really accelerate growth in each of these areas All these technologies are pulling in more and more of our products. all these technologies are pulling in more and more of our products What you look at with ITOM, ITAM, ITSM, what we're doing with portfolio management, what we have capabilities in our enterprise architecture. what you look at with itom itam itsm what we're doing with portfolio management what we have capabilities in our enterprise architecture I mean, it's just a, it's a source to pay. i mean it's just a it's a source to pay We have a very substantial capability, but it's on this one platform. we have a very substantial capability but it's on this one platform You don't have to keep on replicating every time you want to add new features. you don't have to keep on replicating every time you want to add new features That's why we're able to innovate faster, which is very hard for many other vendors out there, where they have to keep on rebuilding a lot of things because they're not built on the same platform. That's why we're able to innovate faster, which is very hard for many other vendors out there, where they have to keep on rebuilding a lot of things because they're not built on the same platform. that's why we're able to innovate faster which is very hard for many other vendors out there where they have to keep on rebuilding a lot of things because they're not built on the same platform

Speaker 2: Yeah. Yeah. yeah

Speaker 1: That's why we feel very bullish, about the headroom we have in front of us, and the pipeline and the customer traction is proving it out, so far. I think our base case is laid out, which we feel very confident. I think Bill mentioned at FAD that he has a lot more expectation, and I think we all know we will be there, so. That's why we feel very bullish, about the headroom we have in front of us, and the pipeline and the customer traction is proving it out, so far. that's why we feel very bullish about the headroom we have in front of us and the pipeline and the customer traction is proving it out so far I think our base case is laid out, which we feel very confident. i think our base case is laid out which we feel very confident I think Bill mentioned at FAD that he has a lot more expectation, and I think we all know we will be there, so. i think bill mentioned at fad that he has a lot more expectation and i think we all know we will be there so

Speaker 2: Yeah. Bill seems like he has very high expectations. Very quickly, just on CRM, you hit on it a little bit. I think the quote you guys had was you're gonna blow through $2 billion. When you're seeing success with that product, what does that look like? Are you displacing other CRM, you know, systems out there? Are you kind of coming in in areas where, you know, there's a little bit of greenfield and growing from there? What does that look like? 'Cause, you know, a lot of enterprises have pretty robust CRM solutions. Yeah. yeah Bill seems like he has very high expectations. bill seems like he has very high expectations Very quickly, just on CRM, you hit on it a little bit. very quickly just on crm you hit on it a little bit I think the quote you guys had was you're gonna blow through $2 billion. i think the quote you guys had was you're gonna blow through $2 billion When you're seeing success with that product, what does that look like? when you're seeing success with that product what does that look like Are you displacing other CRM, you know, systems out there? are you displacing other crm you know systems out there Are you kind of coming in in areas where, you know, there's a little bit of greenfield and growing from there? are you kind of coming in in areas where you know there's a little bit of greenfield and growing from there What does that look like? 'Cause, you know, a lot of enterprises have pretty robust CRM solutions. what does that look like 'cause you know a lot of enterprises have pretty robust crm solutions

Speaker 1: Yeah. I think CRM is a broad market. I gotta be very clear. We are the space which we have been seeing a lot of the investment we've been doing and seeing growth is customer service. Yeah. yeah I think CRM is a broad market. i think crm is a broad market I gotta be very clear. i gotta be very clear We are the space which we have been seeing a lot of the investment we've been doing and seeing growth is customer service. we are the space which we have been seeing a lot of the investment we've been doing and seeing growth is customer service

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Which is very logical for ServiceNow. Which is very logical for ServiceNow. which is very logical for servicenow

Speaker 2: Right. Right. right

Speaker 1: Right. Because we are doing case management, we understand incidents, we understand issues and how you resolve it. That has driven the early growth of CRM business for us. Associated with that is field service management in terms of how you operate all the people who help you. You add layer on top of that all this complex orchestration work. Like CPQ is a very complex orchestration. It's not just asking for information. You're going to do something, which is, again, very much action-oriented, like ServiceNow has been always. Same thing with some of the things we're doing around distributions, like order management. The portfolio we build is in areas where we know we have expertise, differentiation, and the credibility and the capability building the platform. Right. right Because we are doing case management, we understand incidents, we understand issues and how you resolve it. because we are doing case management we understand incidents we understand issues and how you resolve it That has driven the early growth of CRM business for us. that has driven the early growth of crm business for us Associated with that is field service management in terms of how you operate all the people who help you. associated with that is field service management in terms of how you operate all the people who help you You add layer on top of that all this complex orchestration work. you add layer on top of that all this complex orchestration work Like CPQ is a very complex orchestration. like cpq is a very complex orchestration It's not just asking for information. it's not just asking for information You're going to do something, which is, again, very much action-oriented, like ServiceNow has been always. you're going to do something which is again very much action-oriented like servicenow has been always Same thing with some of the things we're doing around distributions, like order management. same thing with some of the things we're doing around distributions like order management The portfolio we build is in areas where we know we have expertise, differentiation, and the credibility and the capability building the platform. the portfolio we build is in areas where we know we have expertise differentiation and the credibility and the capability building the platform That's why we feel very confident of blowing through $2 billion, as you heard at Financial. It's a pretty large number already in a very short amount of time. We are displacing people in some cases. That's why we feel very confident of blowing through $2 billion, as you heard at Financial. that's why we feel very confident of blowing through $2 billion as you heard at financial It's a pretty large number already in a very short amount of time. it's a pretty large number already in a very short amount of time We are displacing people in some cases. we are displacing people in some cases

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I think, in customer service, there are many incumbents. I think a lot of the what's happening in customer service, given that most of customer service products out there, customer has been very fragmented. I think, in customer service, there are many incumbents. i think in customer service there are many incumbents I think a lot of the what's happening in customer service, given that most of customer service products out there, customer has been very fragmented. i think a lot of the what's happening in customer service given that most of customer service products out there customer has been very fragmented

Speaker 2: Yeah Yeah yeah

Speaker 1: Very old architecture. People are rethinking voice, for example. They're rethinking how omni-channel intake happens. People are not just calling people on the phone for support. They're doing it in multiple mediums. For us to build that in a platform, because AI platform is what is supporting our CSM product, is very quick. Very old architecture. very old architecture People are rethinking voice, for example. people are rethinking voice for example They're rethinking how omni-channel intake happens. they're rethinking how omni-channel intake happens People are not just calling people on the phone for support. people are not just calling people on the phone for support They're doing it in multiple mediums. they're doing it in multiple mediums For us to build that in a platform, because AI platform is what is supporting our CSM product, is very quick. for us to build that in a platform because ai platform is what is supporting our csm product is very quick

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Today, we have customers who now are using this multi-channel way of interacting with our systems and replacing what they had, or sometimes consolidating. The opportunity is to really modernize, make it more efficient, and get into this technology stack, which allows them to get into many more areas for customers to do much more efficiently. That's why we're displacing or interoperating in many cases. Today, we have customers who now are using this multi-channel way of interacting with our systems and replacing what they had, or sometimes consolidating. today we have customers who now are using this multi-channel way of interacting with our systems and replacing what they had or sometimes consolidating The opportunity is to really modernize, make it more efficient, and get into this technology stack, which allows them to get into many more areas for customers to do much more efficiently. the opportunity is to really modernize make it more efficient and get into this technology stack which allows them to get into many more areas for customers to do much more efficiently That's why we're displacing or interoperating in many cases. that's why we're displacing or interoperating in many cases

Speaker 2: Yeah. Yeah. yeah

Speaker 1: It's just a modern stack that, and proven capability allowing a lot of people who are running CSM, we're also running the IT systems. It's just a modern stack that, and proven capability allowing a lot of people who are running CSM, we're also running the IT systems. it's just a modern stack that and proven capability allowing a lot of people who are running csm we're also running the it systems

Speaker 2: Yeah. Yeah. yeah

Speaker 1: They're used to our platform. For them now extending that into CSM become much more natural because they're not redeploying a completely new stack. It's very easy for them to now add CSM from us or CPQ and other things like that, given it's built on the same platform. They're used to our platform. they're used to our platform For them now extending that into CSM become much more natural because they're not redeploying a completely new stack. for them now extending that into csm become much more natural because they're not redeploying a completely new stack It's very easy for them to now add CSM from us or CPQ and other things like that, given it's built on the same platform. it's very easy for them to now add csm from us or cpq and other things like that given it's built on the same platform

Speaker 2: Yeah. Very insightful. Thank you for coming here and giving us your wisdom. I think we'll all be watching ServiceNow very closely. Yeah. yeah Very insightful. very insightful Thank you for coming here and giving us your wisdom. thank you for coming here and giving us your wisdom I think we'll all be watching ServiceNow very closely. i think we'll all be watching servicenow very closely

Speaker 1: No, thank you all for your interest and support as well. Thank you. No, thank you all for your interest and support as well. no thank you all for your interest and support as well Thank you. thank you