ServiceNow, Inc (www.servicenow.com) is a provider of cloud-based IT service management platforms designed to improve delivery speed, workflow efficiency and consolidate IT management into a single platform of record.
They have found success in a crowded service management sector by aligning directly to prevailing trends in the macro IT industry. ServiceNow has rode along with the trend of moving IT away from the old-guard mentality of yesteryear (reactive & slow to change) to the new paradigm – IT as the proactive growth engine of the business. The Information Technology Infrastructure Library (ITIL) management standards focused on aligning delivery of IT services proactively to business needs and the ever accelerating maturity of the public cloud have also contributed significantly to ServiceNow’s adoption in the market.
In addition to their core competency of aligning business and tech; ServiceNow is positioned to expand beyond IT service management and into full-fledged enterprise service management. The company is expanding capabilities in order to provide for expansion into additional business line units including finance, operations, HR and marketing. This will have the potential to transform ServiceNow (market cap of $13.9 billion) from a ITSM focused provider today, to become a legitimate competitor to giants such as Salesforce.com (market cap of $51.95 billion) in the coming years.
With rapid growth in the IT service management platform and maturity into a complete enterprise service platform; Netfast IT Stock Research believes ServiceNow is an undervalued player in the market.
The company is positioned to improve to over $1 billion in annual revenue this year over 47% growth over 2014. Steadily improving margins and maturity in business partnership strategies should also contribute to further growth in 2016 and beyond.
The recent announcement of a $4.5 billion private equity sale of IT management platform – SolarWinds (SWI) is further evidence of strength in the sector and should give current and prospective investors in the sector hope of further gains in 2016.
Netfast IT Stock Research recommends ServiceNow (NYSE: NOW) as a buy.
About Netfast Technology Solutions:
Netfast (www.netfast.com) is an IT Services Company providing Cloud Managed Services to enable its customers to focus on key strategic business initiatives, create competitive advantage, drive business growth and improve the profitability of their business.
About Author:
Joe Asady is the Founder and Chief Executive Officer of New York City based Netfast Technology Solutions Inc. Joe is a successful serial entrepreneur, who has created 13 companies in Information Technology, E-commerce, Media, Real Estate, Retail and International Trade in US (Dallas, San Francisco, New York), Europe (Amsterdam) and Asia (Bangalore, Dubai).
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