Service-Now CEO Fred Luddy Sees a Clear Path to $1 Billion in Annual Revenue

1/11/11Follow @bvbigelow

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the San Diego company as they scrambled to lower their IT costs.

“We’re a company that’s been very fortunate,” Luddy says. “But I think a lot of it was Arnold Palmer luck. He used to say, ‘The more I practice, the luckier I get.’ “

So what does Service-now do?

For the past four or five decades, Luddy says the person responsible for overseeing a company’s information technology systems has had problems answering such questions as what do I own? How well is it operating? And is it doing what I intended it to?

Service-now’s software enables the chief information officers at big companies and other organizations to keep track of their assets, such as computers, software licenses, and other IT resources. At the same time, it generates the kind of information that business executives can use to understand, for example, how the cost of operating a sales force in the field compares with the cost of selling products through an online catalog.

Service-now’s Web-based services also enable IT groups to manage their operational chores, which Luddy categorizes as “incident, problem, change.” An incident means something stopped working and needs to be fixed immediately. It might be that an employee’s laptop won’t boot up. A problem means investigating how or why the laptop stopped working. And a change means what’s done to fix it, which might be as simple as a software upgrade.

“Our core business is managing those three core disciplines,” says Luddy, which is no small matter. A big organization can have 50 to 100,000 incidents per month and five to 10,000 changes per month.

The SaaS business model enables Service-now to … Next Page »

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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  • http://www.tingbasoft.com sam surkhang

    Congratulations to service-now.com for setting the trend in SaaS for ITSM tools and for the success they have had in the past few years.

    We at tingbasoft.com also look at service-now.com as a trendsetter. Having recently released a beta of cloud based SaaS IT Service Desk from tingbasoft, we are definately looking forward to this ongoing trend towards SaaS.

  • Josh Marlatt

    I was a big fan of service-now before they lost focus. Nowadays, they spend their time slinging mud at BMC and HP – calling them “legacy” – while at the same time basically carbon-copying all the features of Remedy. Now that Service Now is selling a shadow of Remedy, I’ll just buy Remedy and get the real thing.

    Luddy, I was with you, really thought you would innovate. With all this talk of IPO’s and being the next Qualcomm, it’s clear you just want to be another BMC or HP. And Peregrine? Really? Luddy’s proud of that?

  • Pingback: ITSM Antipodean Podcast – Episode 26 | Macanta

  • Raj

    Yes it is about doing, learning and getter better at what you do. I am really surprised at two things.

    First: What a vision you have Mr Luddy. No doubt you have found that niche in the market which has been missed by many of them out there. Good on you for working towards achieving it.

    Second: There are just two comments on this blog even after 2 years of publishing it. Something seriously wrong out here. I cannot believe myself. Blog has been written very well. Yes I can some people have shared it but don’t we even have few minutes to appreciate something like this.

    I would love to hear more like this. Where somebody dreams about something and then also walks to achieve it.