ServiceNow Is A Top-Notch Play In The Cloud Software Mega Trend
Summary
On the back end, it performs automated categorization of requests, routing to the appropriate department, and assignment of work to facilitate a faster solution.It also provides a wealth of dashboard and reporting tools for high-level views of service organization performance, as well as software APIs for companies to develop their own applications off of the ServiceNow platform.A growing recurring revenue base combined with very high switching costs for existing customers makes for a fantastic business model.Its cash flows are highly predictable, allowing management to aggressively invest for growth, and protecting the firm against economic swings.As we mentioned earlier, this makes sense given the greenfield opportunity, but I believe longer term this settles into more of a 20%-25% figure (similar to someone like Cisco or Microsoft).