Digital transformation of enterprises
ServiceNow (NOW) aims to be a strategic partner in the digital transformation of global enterprises. Over the last few years, ServiceNow has managed to successfully leverage its expertise in IT and HR (human resources) service delivery products to drive this digital transformation and enhance enterprise experiences. The company is also looking to improve the operational efficiency and productivity of enterprise customers by offering a robust portfolio of products and services.
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ServiceNow part of high growth SaaS segment
ServiceNow operates in the high growth SaaS (software as a service) business vertical in cloud computing. Last year, the global SaaS market was estimated at $74.8 billion with cloud SaaS accounting for 67.0% of total sales. In 2019, this market is expected to be over $94 billion. The global SaaS market is estimated to grow at a CAGR of 21.4% until 2024.
Expected revenue growth drivers
ServiceNow started out as a company providing solutions to automate IT tickets for enterprises. It viewed these tasks as repetitive and mundane and managed to monetize services in this segment.
In the company’s last annual report, management stated that it’s targeting annual revenue of $15 billion within a few years. ServiceNow is estimated to post sales of $5.50 billion by 2021, and the company may be able to triple annual sales to $15 billion well before 2026, assuming the company can increase revenue at 25% YoY.