Upgrading from ServiceNow Express can quickly become an expensive proposition. When a customer is required (due to functionality needs) to upgrade to the full ServiceNow suite — the license cost per user will double from ServiceNow Express to the full version and a minimum annual price of $42,000 for the ServiceNow Legacy suite will kick in. And, here comes the professional services price tag.
Professional services costs for a kickstart package for ServiceNow Enterprise starts at around $70,000 for the implementation (yes, that upgrade path to the legacy ServiceNow is not really free). This for a kickstart package that typically includes Core setup, Incident, Problem, Change, a basic CMDB data upload and configuration of Knowledge Management.
With numbers like these, it is a big leap from ServiceNow Express to Enterprise.
Why is the ServiceNow Upgrade Path So Expensive?
ServiceNow Express is an entry-level product priced at $50 per Fulfiller or Approver per month. Note that all users, even Approvers require a license. It is positioned as “no professional services required,” but these services are available if needed. When customers require additional functionality such as the discovery tool for assets and inventory, they are required to upgrade. That quickly becomes a hefty price tag to pay where you only needed a simple ticketing system. Granted that happens if/when the customer needs evolve, but customers should be aware of the future costs they may incur.
“It affects their Actual Cash Value (ACV) immediately,” said Frank Slootman, President, CEO and Director at ServiceNow during the ServiceNow Q2 2015 quarterly call. “That’s a much bigger bill. The features that make them graduate, usually it has to do with client or service-side scripting and the ability to really take advantage of the platform. As you recall, Express was very much designed as a product that can deploy in hours and days, not weeks and months. All the processes are predefined. That’s the concept behind ServiceNow Express.”
What is the Alternative to ServiceNow Express?
Samanage Service Management customers gain access to unlimited functionality included with their annual subscription. Customers have the flexibility and control to decide how quickly they adopt the system and we work together with our customers to help them improve their IT maturity. Our customer success team can devise a plan to meet individual organization needs, priorities and speeds to implement Samanage.
At Samanage, we just have one question for you: Don’t you want to work with a vendor that will help you determine how you will use the product before you purchase it?
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About Doron Gordon
Doron Gordon is a successful entrepreneur and the founder and CEO of Samanage. Prior to founding Samanage, Doron was a co-founder and VP of sales and marketing at Continuity Software, a leading provider of disaster recovery and high-availability management solutions. Earlier, Doron was a senior manager at BMC Software, a global leader in IT management software. He was also the founder and CEO at Always-On Software, an innovative application service provider.
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