Welcome to the Cloud Wars Minute — your daily cloud news and commentary show. Each episode provides insights and perspectives around the “reimagination machine” that is the cloud.
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In today’s Cloud Wars Minute, I go over ServiceNow’s terrific third-quarter results.
Highlights
00:20 — ServiceNow, after real blockbuster Q3 results, has moved up to number two on my list of the fastest-growing major cloud vendors. Oracle’s number one, with 30% quarterly growth; ServiceNow, number two at 27%; Microsoft, number three, with 24%.
01:10 — On the call, ServiceNow CEO Bill McDermott talked about partners. He talked about how a deep and enduring strength across ServiceNow is expanding product lines, and how many of its largest deals involved multiple products from across the ServiceNow portfolio.
01:50 — He said we’ve got great growth overall, but generative artificial intelligence (GenAI) represents a tailwind of growth. He said, we have more than 300 customers in the pipeline from every industry, buying center, and stage of testing. It’s really been part of ServiceNow’s strategy over the last several years to move the company into the world of AI.
02:47 — There are a couple of other numbers that I wanted to share. McDermott, said that in the Americas, the number of $5 million or more deals quadrupled in Q3 this year versus Q3 last year. And the number of deals of $10 million or more doubled in this year’s Q3 versus last year’s Q3.
03:25 — On top of that, ServiceNow has raised its guidance for the fiscal year, it expects growth to come in at almost 25% for the year. Across the board, I think they felt that everything’s looking up. McDermott was also describing how their federal business is stronger than it’s ever been.
04:05 — McDermott was very bullish on the notion of partners. He said, you’ve got to have an ecosystem that doesn’t just look to be a fulfillment center but is a source of not only innovation for customers but also growth for vendors like ServiceNow. McDermott paid particular attention to ServiceNow’s partnerships with Microsoft and NVIDIA.
04:53 — ServiceNow is number two on the fastest-growing list. Maybe ServiceNow has its sights on jumping to that number one spot.
