ANALYST ALERT: Gartner Magic Quadrant and Critical Capabilities for ITSSM 2014



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ANALYST ALERT: Gartner Magic Quadrant and Critical Capabilities for ITSSM 2014 Gartner recently published two reports that complement each other. The Gartner Magic Quadrant for IT Service Support Management Tools and the Gartner Critical Capabilities for IT Service Support Management Tools. For both these reports, ServiceNow IT Service Automation Suite (Dublin release) was evaluated. The analysis for a Magic Quadrant is based on a broad set of criteria that includes corporate viability, vision, marketing and geographic focus. The analysis for a Critical Capabilities report focuses on use cases for product capability. Key Points: ServiceNow is the LEADER with the highest position in ability to execute and furthest to the right in completeness of vision in the Gartner Magic Quadrant for ITSSM. ServiceNow received the HIGHEST SCORE in the Gartner Critical Capabilities for ITSSM report. ServiceNow ranked 1 st place in overall product scores for the Total ITSSM Use Case. Report Graph: Gartner Magic Quadrant for ITSSM

Report Graph: Gartner Critical Capabilities for ITSSM The full reports are available in the Sales Enablement Info Center and are for internal use only. Please note: ServiceNow is not purchasing reprint rights to these reports. Because of this, please note some limitations: You may not provide a copy to a customer or prospect - Gartner is closely tracking report usage. You may not post a copy of the Magic Quadrant or Critical Capabilities report graphs externally. (ex - Email, LinkedIn, Facebook, Twitter). You can use this approved for Twitter statement with your personal twitter accounts - ServiceNow Positioned as a Leader in Gartner Magic Quadrant for ITSSM You can tell your customer or prospect that ServiceNow is the leader in the Gartner Magic Quadrant for ITSSM and that the full report is available to Gartner clients at Gartner.com You can tell your customer or prospect that ServiceNow received the highest score in the Critical Capabilities for ITSSM report and that we ranked 1 st place in product scores for the Total ITSSM Use Case. The full report is available to Gartner clients at Gartner.com. If you have any additional questions or feedback please contact Dawn Giusti, Sr. Mgr., Analyst Relations.

Additional Information regarding the Gartner ITSSM reports: Gartner Magic Quadrant for ITSSM BMC has also moved into the Leaders quadrant, but is behind ServiceNow in terms of ability to execute and completeness of vision. Cherwell and CA have moved up into the Challengers quadrant. Axios and Landesk moved across to the Visionaries quadrant. According to Gartner they have yet to gain significant market or mind share. EasyVista, HP, Hornbill, IBM, FrontRange, ManageEngine, SysAid and TOPdesk are positioned in the Niche quadrant. According to Gartner, vendors in this quadrant focus on a small segment, or are in the process of ramping up go- to- market efforts and have yet to develop the vision to break out. Gartner Magic Quadrant for ITSSM Report Excerpt: ServiceNow Offering Evaluated: ServiceNow IT Service Automation Suite ServiceNow is a publicly traded company headquartered in Santa Clara, California. Its SaaS products primarily target large enterprises. ServiceNow's suite can be hosted on- premises in exceptional circumstances. ServiceNow has invested in regional data centers to address local data and performance requirements to drive the majority of its business through SaaS. The company has looked for revenue beyond the ITSSM market for customers in what it calls "enterprise service management," and refers to its product as a cloud- based platform with a single system of record. At present, most customers license ServiceNow IT Service Automation Suite with the intention of building on the development platform to extend into other areas of the business. (For further information on ServiceNow, see "SWOT: ServiceNow, IT Operations Management Software, Worldwide." ) Strengths ServiceNow's high- availability SaaS architecture provides customers with stable, low- latency instances. ServiceNow has a strong, highly effective sales and marketing capability that has attracted many customers and driven its product into most of the ITSSM RFP shortlists that Gartner sees. ServiceNow's rapidly expanding partner network helps organizations around the globe with not only implementing the product, but also developing simple request- and- fulfill applications on the ServiceNow development platform. Cautions IT operations management offerings licensed with IT Service Automation Suite (configuration management database [CMDB], IT Service Catalog and IT Asset Management) may require licensing additional ServiceNow products when a more detailed set of requirements is presented with regard to these functionalities. Changes to pricing models have confused prospects and some customers. On- premises customers pay the same as SaaS customers, even though they cover the hosting directly and do not benefit from automatic upgrades.

Note regarding Cautions: The cautions listed in the report can be easily countered. While they are all related to pricing, the first one cautions prospects that additional functionality may cost extra (which is by our design); the second caution reflects confusion that Gartner has heard from their clients around our changing pricing model that we have been proactively addressing with our recent product updates; and the third caution considers the incremental infrastructure costs of hosting a customer instance without taking into account the incremental support expense of self- hosted instances. Gartner Critical Capabilities for ITSSM Gartner evaluated the vendors around five use cases including Low- to- Medium Maturity Use Case, Medium- to- High Maturity Use Case, High- Maturity Use Case, Digital Workplace Use Case and Total ITSSM Use Case. Overall, ServiceNow scored very well in the five use cases: 1 st place for Total ITSSM Use Case o ServiceNow is the best all- around ITSSM solution available. 1 st place for Medium- to- High- Maturity Use Case o ServiceNow is the clear leader where most organizations classify themselves. Tied for 1 st place with BMC Remedy ITSM for Digital Workplace Use Case o Remedy ITSM now ships with MyIT, but remember that MyIT still has additional infrastructure, configuration, and system administration overhead. o ServiceNow mobile and social are native parts of the platform that work with any application, including custom applications with no additional overhead. 2 nd place for High- Maturity Use Case o Remedy ITSM scored higher due to Atrium CMDB. The report does note BMC products come with a high total cost of ownership due to complex and interdependent modules. o ServiceNow CMDB and Discovery enhancements in Eureka - plus ServiceWatch - put ServiceNow way ahead of BMC. Tied for 5 th place for Low- to- Medium- Maturity Use Case o ServiceNow is only.08 points away from 1 st place Cherwell proving ServiceNow is still suitable for smaller IT shops looking to improve process maturity and scale. o ServiceNow Business Edition will target this market more specifically (See Critical Capabilities report for the 5 Use Case Graphs) Gartner Critical Capabilities for ITSSM Report Excerpt: ServiceNow IT Service Automation Suite, Dublin Release ServiceNow is a publicly traded company headquartered in Santa Clara, California. ServiceNow's IT Service Automation Suite (ITSA), Dublin Release has been evaluated for this research. This product is available as SaaS, but it can be licensed on- premises in exceptional circumstances. ServiceNow ITSA is effective at autorouting of incidents and tasks, and will cross- reference additional information from related records when required. ServiceNow ITSA has outstanding social collaboration capabilities. Users and IT staff can create chat rooms for swarm support that transfer and retain all information within an associated incident or problem record. It makes good use of survey engines for risk and impact analysis to better govern the change

management process. Automation activities (such as routing and notification) within the ServiceNow platform have been well- received by customers. However, Orchestration licensing is required for automation activities outside ServiceNow (such as VMware or Amazon EC2 provisioning). Standard reporting and dashboards are good enough for most basic needs, but richer capabilities require Performance Analytics licensing. Of a total possible critical capability score of 45, ServiceNow ITSA, Dublin Release received a score of 31.8. ITSA is ideal for large IT organizations that have deeper ITSSM requirements, but also want to build custom request- and- fulfill applications on the ServiceNow CreateNow Development Suite (which also requires separate licensing). Additional Resources: A Heat Map of the use case scores in the Critical Capabilities report for ITSSM is available in the Sales Enablement Info Center. For more details please contact Brian Hollandsworth. Note: The current attached Critical Capabilities report for ITSSM has the wrong scores for ServiceNow in Figure 3 on page 28. Gartner will publish the correct version of the report over the next couple of days. This report will be posted to the Sales Enablement Info Center.