A few months ago, our small IT team drowned in a sea of spreadsheets, Slack pings, and email threads every time an employee logged a support ticket. It wasn’t just inefficient—it was soul-crushing. One late afternoon, I stumbled upon ServiceNow while researching automation solutions. Within a single afternoon, I had a working incident-management workflow, real-time dashboards, and AI-driven “Next Best Action” recommendations. What started as desperation turned into exhilaration: ServiceNow promises to “digitise workflows so work happens fast, simple, and secure,” and it delivers.
What Is ServiceNow?
ServiceNow is a comprehensive cloud-native platform that automates, orchestrates, and tracks digital workflows across IT, HR, customer service, security, and beyond. Rather than siloed point tools, it provides a unified architecture where data flows seamlessly between modules.
At its heart, ServiceNow offers:
- IT Service Management (ITSM): Automates incident, problem, change, and request workflows.
- IT Operations Management (ITOM): Detects infrastructure issues, maps dependencies, and proactively prevents outages.
- HR Service Delivery (HRSD): Streamlines onboarding, offboarding, and employee inquiries.
- Customer Service Management (CSM): Connects support teams with operations to resolve customer issues end-to-end.
- SecOps (Security Operations): Centralises vulnerability response and threat intelligence.
- Now Platform & App Engine: Low-code/no-code tools for building custom apps and portals.
- AI & Analytics: Powered by Now Assist and Performance Analytics for predictive insights and real-time dashboards.
Whether you’re an IT manager routing server-down alerts or an HR leader handling thousands of onboarding requests, ServiceNow centralizes data, automates approvals, and delivers visibility in a single pane of glass.
History Behind ServiceNow
The story begins in 2004, when Fred Luddy—former CTO of Peregrine Systems and Remedy—decided legacy on-premise ticketing tools were ripe for disruption. Two weeks before his 50th birthday, Luddy founded ServiceNow in Santa Clara, California, fueled by a simple vision: bring IT workflows to the cloud with a user-friendly, modular design.
- 2006: First commercial release of ServiceNow platform.
- 2008–2010: Rapid growth—customers flocked to the platform for its ease of configuration and SaaS advantages.
- 2011: IPO on the New York Stock Exchange under the ticker NOW; one of the fastest software IPOs to exceed $1 billion in revenue.
- 2016–2020: Expansion beyond ITSM into HR, customer service, security, and custom app development.
- 2023–2025: AI era with Now Assist reaching $1 billion in projected ACV by 2026—cementing ServiceNow as a leader in enterprise AI workflows.
Who Are ServiceNow’s Founders?
Fred Luddy is the visionary founder and original CEO. With decades of experience in enterprise software, he bootstrapped early development, focusing on code quality, security, and user experience. Under his leadership, ServiceNow’s culture emphasized “people, platform, and performance,” attracting top engineering talent and pioneering the SaaS model for IT workflows.
After stepping down as CEO in 2011, Luddy continued as Chief Product Officer, guiding platform architecture and API strategy until 2016, when he transitioned to an advisory role. His relentless focus on modular design and platform extensibility still underpins ServiceNow’s DNA today.
Are ServiceNow Models Open Source?
Contrary to many open-source AI frameworks, ServiceNow’s AI capabilities—including the Apriel Nemotron large language models—are proprietary. Built in collaboration with NVIDIA and optimized for enterprise inference, these models run exclusively within ServiceNow’s secure cloud environment.
- Why proprietary? Enterprise customers demand stringent security, governance, and version control—areas where open-source models can introduce compliance risks.
- Developer access: While you can call AI actions via ServiceNow’s Flow Designer or Scripted REST APIs, the underlying model weights and training data remain closed.
How Does ServiceNow Make Money?
ServiceNow’s business model is rooted in subscription revenues. Customers pay annual fees based on licensed modules and user counts, plus optional add-ons and professional services. Key revenue streams include:
- Software subscriptions: Recurring fees for access to ITSM, HRSD, SecOps, and other modules.
- Platform credits: For custom app development and integration usage.
- AI add-ons: Now Assist seats or consumption-based billing for generative AI actions.
- Professional services: Implementation consulting, training, and managed services.
Financial highlights (FY2024 & Q1 2025)
- FY2024 subscription revenue: $10.9 billion.
- Q1 2025 subscription revenue: $3.005 billion (19% YoY growth).
- ACV for Now Assist: Projected to jump from $250 million to $1 billion by 2026.
What Partnerships Has ServiceNow Closed?
No enterprise-scale platform thrives alone. ServiceNow has forged strategic alliances across the tech ecosystem:
- Hyperscalers: AWS, Microsoft Azure, Google Cloud—enabling multi-region hosting, scalable data pipelines, and native integrations.
- AI & hardware: NVIDIA partnership for Apriel Nemotron model development and optimized GPU inference.
- Consulting & SI partners: Deloitte, Accenture, EY, IBM, KPMG—joint delivery of industry-specific solutions and large implementations.
- ISVs & data platforms: Adobe (Marketing workflows), Snowflake (data lakes), Splunk (log analytics), UiPath (RPA integrations).
These partnerships accelerate feature releases, extend ServiceNow into new domains, and create bundled offerings—making it easier for customers to adopt and scale.
How Much Funding Has ServiceNow Raised to Date?
Although ServiceNow is best known for its blockbuster IPO, its early funding rounds set the stage:
- Series A (Jul 2005): $2.5 million led by JMI Equity
- Series B (Dec 2006): $5 million led by JMI Equity
- Series C (Apr 2009): $6 million
- Series D (Nov 2009): $41.4 million led by Sequoia Capital
- Series E (Feb 2012): $17.9 million
Total private funding before IPO: ~$72 million. In June 2012, ServiceNow raised $209 million in its IPO by selling 11.65 million shares at $18 each. Since then, all growth has been fueled by operating cash flow, acquisitions, and R&D reinvestment.
Challenges with Controversies of ServiceNow AI
No tech giant is immune to criticism. ServiceNow has faced:
- Security vulnerabilities: In early 2025, several CVEs (e.g., CVE-2024-4879, CVE-2024-5178) allowed privilege escalation, prompting emergency patches.
- Cost concerns: Smaller businesses sometimes struggle with high total cost of ownership and specialized consultant fees for complex implementations.
- Learning curve: Power users laud its configurability—but non-technical teams can find the platform daunting without proper training.
ServiceNow has aggressively patched issues and expanded its customer success programs to address these challenges head-on.
How to use ServiceNow AI, Step-by-Step Guide?
Step 1: Initial Setup
- Signed up for a 30-day free trial.
- Configured single sign-on via Azure AD; imported 200 users in under 15 minutes.
- Outcome: Instant access for my entire team—no manual account creation required.
Step 2: Building a Basic Incident Workflow
- Used Flow Designer’s drag-and-drop interface to model the incident lifecycle: New → In Progress → Resolved → Closed.
- Configured Service Level Agreements (SLAs) for 4-hour response and 24-hour resolution.
- Integrated email notifications and Slack alerts for new incidents.
- Outcome: A live, enforceable process with real-time notifications—no spreadsheets needed.
Step 3: Deploying Now Assist
- Enabled the AI add-on and assigned seats to my support team.
- Now Assist analyzed historical tickets and suggested resolution steps for incoming incidents.
- “Aha” moment: AI recommended checking disk-space logs for a “Disk Full” alert—exactly what our level-1 team needed.
Step 4: Custom Service Portal
- Launched a self-service portal using Out-of-the-Box (OOTB) widgets.
- Added a knowledge article carousel and chatbot powered by Virtual Agent.
- Outcome: 60% reduction in email inquiries within two weeks.
Step 5: Real-Time Dashboards
- Set up Performance Analytics: KPIs for Mean Time to Resolve (MTTR), ticket backlog, and SLA compliance.
- Created a live dashboard embedded in our team’s Confluence page via API call.
- Outcome: Executive stakeholders now get automated weekly reports—no manual slide deck prep.
Top Features & How They Work
| Feature | What It Does | How I Used It | Real-World Impact |
| Now Assist | AI-driven suggestions for triage, resolutions, and knowledge | Generated automated resolution steps for incidents | 30% faster ticket resolution; fewer escalations |
| Flow Designer | Low-code workflow orchestration | Built multi-stage approval process for hardware req | Eliminated 200+ emails per month |
| Virtual Agent | Conversational chatbot for self-service | Deployed a 24×7 support bot for password resets | 40% of password reset tickets deflected |
| IntegrationHub | Prebuilt connectors (Spokes) for Slack, Jira, GitHub, etc. | Connected to GitHub to auto-tag incidents on commits | Developers instantly alerted on code-related bugs |
| Performance Analytics | Real-time dashboards with historical trending | Created SLA compliance dashboard for exec reviews | Data-driven decision making; 15% SLA improvement |
Ideal Use Cases
ServiceNow shines in environments where cross-team collaboration, auditability, and speed matter. Examples:
- IT Operations Teams: Proactive incident detection, automated change approvals, CMDB-driven root cause analysis.
- HR Service Delivery: Streamlined new-hire onboarding, policy acknowledgments, and case management.
- Customer Support Centers: Unified case routing, AI-driven next best action, and field-service dispatch.
- Security Operations: Centralized vulnerability scanning, playbook-driven incident response, and threat intelligence integration.
- Legal & Compliance: Contract lifecycle automation, audit trails, and policy enforcement workflows.
Pricing, Plans & Trials
ServiceNow offers tiered plans plus modular add-ons:
| Plan | Includes | Starting Price |
| Standard | Core ITSM modules, basic workflows | $100/user/month |
| Professional | Standard + Flow Designer, Performance Analytics | $150/user/month |
| Enterprise | All ITSM + ITOM, HRSD, CSM, SecOps | Custom pricing |
| AI Add-On | Now Assist seats (generative AI actions) | $25/user/month |
- Free Trial: 30 days for core modules; AI trial credits included.
- Volume Discounts: Available at 500+ users, multi-year contracts.
- Academic Pricing: Deep discounts for universities and research institutions.
- Money-Back Guarantee: 30 days on annual contracts if unsatisfied.
Pros & Cons
| Pros | Cons |
| Intuitive low-code/no-code workflow builder | High total cost for smaller organizations |
| Powerful AI-driven recommendations (Now Assist) | Proprietary AI; no open-source option |
| Vast partner ecosystem and marketplace | Customization at scale can become complex |
| Real-time analytics and reporting | Steep learning curve for non-technical teams |
| Modular architecture for phased rollouts | Add-on modules can quickly increase license fees |
Jira Service Vs ServiceNow AI Vs Freshservice: Comparison to Alternatives
| Feature | ServiceNow | Jira Service Management | Freshservice |
| AI Capabilities | Now Assist with generative prompts | Basic automation rules | Limited AI, primarily ticket deflection |
| Custom Workflows | Flow Designer, scoped apps | Jira Automation, marketplace apps | Simple workflow builder |
| ITOM & SecOps | Comprehensive ITOM & SecOps modules | Separate Atlassian tools required | No native ITOM; limited security ops |
| Analytics | Performance Analytics, Executive dashboards | Basic SLAs and reports | Standard reporting; no historical trends |
| Price | Premium enterprise pricing | Mid-range for agile teams | Competitive for SMBs |
ServiceNow stands out for large enterprises needing deep AI, cross-module integration, and real-time analytics. Mid-market teams focused on agile software delivery may find Jira SVC more budget-friendly. SMBs can start with Freshservice but will eventually outgrow its simpler toolset.
Lessons from ServiceNow’s $1 Billion AI Journey
Before we wrap up, remember how ServiceNow announced that its generative AI product Now Assist is projected to hit $1 billion in annual contract value by 2026, up from $250 million today? That milestone isn’t just a revenue headline—it’s a masterclass in turning AI from hype into hard dollars.
1. Embed AI into Core Processes
ServiceNow didn’t treat AI as a bolt-on. It integrated Now Assist across ITSM, HR, and customer workflows—making each user interaction smarter. Indian IT firms should follow suit by weaving AI into their essential services.
2. Be Transparent About AI Revenue
ServiceNow publicly shared Now Assist’s ACV numbers. This level of transparency builds trust with investors and clients. Indian IT majors—TCS, Infosys, Wipro—should adopt clear metrics for AI-driven revenue.
3. Forge Strategic Partnerships
The $1B AI story was co‑written with NVIDIA and hosted on AWS/Azure. Indian players can accelerate innovation by teaming up with cloud and AI leaders like Google Cloud, Microsoft, and NVIDIA.
4. Maintain an Innovation Pipeline
Hitting $1B ACV isn’t the finish line—ServiceNow continuously rolls out new AI models and features. Indian firms must reinvest subscription and services revenue into next‑gen R&D.
By incorporating these four lessons into your AI roadmap, you’ll blend visionary technology with pragmatic business rigor—just as ServiceNow did on its path to a $1B AI milestone.
Conclusion
ServiceNow is a powerhouse for organizations ready to invest in future-proofing workflows with AI, automation, and unified data. It’s ideal for teams that require:
- Enterprise-grade scalability
- Real-time visibility and analytics
- AI-driven productivity boosts