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In today’s Cloud Wars Minute, we explore ServiceNow’s impressive growth in terms of the company’s recent quarterly earnings.
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00:23 — About a month ago, ServiceNow became the world’s fastest growing major cloud vendor, as measured by the Cloud Wars Top 10 growth chart. Subscription revenue growth in the third quarter was 27%, higher than the 25% growth recorded by Oracle in the same quarter.
01:03 — This last quarter marks the fifth straight quarter of acceleration in ServiceNow’s subscription revenue. At a time when most of the top 10 companies in Cloud Wars were reporting declining growth rates, ServiceNow was rising.
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02:16 — Bill McDermott said generative artificial intelligence (GenAI) is a tailwind for ServiceNow’s growth. Currently, he has over 300 customers in the pipeline from all industries, all purchasing centers, and all testing stages. We are rapidly building industry-specific stories. Its partner ecosystem is rapidly growing. Mr. McDermott spoke about the impact of the expanded partnership with Microsoft.
03:17 — McDermott is now hinting at continued expansion of the company’s portfolio. Last year, the company expanded into the enterprise resource planning (ERP) field, which was the supply chain and finance field. McDermott hinted at new areas to enter this year.
04:00 — This is a company that caught my attention. For ServiceNow to win, other big software vendors don’t have to lose, McDermott says. He said the company is looking to build partnerships with SAP, Salesforce and Oracle.
04:28 — I think the outlook for 2024 is very bright. We’ll find out how ServiceNow’s fourth quarter turned out on January 24th.