Welcome to the Cloud Wars Minute — your daily news and commentary show, hosted by Cloud Wars Founder Bob Evans. Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.
This episode is sponsored by Acceleration Economy’s “Cloud Wars Top 10 Course,” which explains how Bob Evans builds and updates the Cloud Wars Top 10 ranking, as well as how C-suite executives use the list to inform strategic cloud purchase decisions. The course is available today.
In this Cloud Wars Minute, I offer details on ServiceNow’s remarkable Q2 earnings, which have been supercharged by generative AI.
Highlights
00:35 — There has been an acceleration in ServiceNow’s growth rate for subscription revenue; in Q1, the growth rate was 24% and in Q2, it was 25%. ServiceNow CEO Bill McDermott claimed that ServiceNow is now “supercharged by generative AI.”
01:15 — ServiceNow has also raised guidance for the second half of fiscal 2023, which is a very encouraging sign overall. McDermott describes this as a “dramatic expansion of software economy.”
02:00 — 45 customers are now spending more than $20 million annually on ServiceNow, which is up 55% compared to last year. McDermott said on the earnings call that customers are now buying multiple ServiceNow solutions.
03:25 — There have been discussions of ServiceNow raising the prices for its products, many of them relating to generative AI. As a result of the great new value being created for customers, ServiceNow may charge a 60% premium fee for its new generative AI capabilities.
04:13 — “I think this is a fair thing to do, provided that customers agree.” More details on the latest ServiceNow customer developments will be available later today in the full-length Cloud Wars News article.
