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ServiceNow CEO: 'We Have No Real Competitors'

Tse: You recently announced your first acquisition as a public company with the acquisition of Mirror42. Do you see acquisitions becoming a regular part of your business strategy? How much in investments have you set aside for acquisitions?

Slootman: Our acquisition strategy is as follows. We want to buy talent and technology. The 'two Ts.' Talent and Technology. We do not like to buy businesses. There's a revenue associated, customers associated. I'd rather have enough to speak to the validity of the offering but not enough for you know to end up with a legacy and a responsibility to carry that forward. So I really like to buy technology. I like to re-implement them on our platform, make the user experience completely native and seamless to the platform and really walk people through the door and let them become ServiceNow people and they really become completely organic and integral to our organization. That's really what we like to do. It's very unlikely that you'll ever see any acquisitions like Salesforce just had with ExactTarget. In the stage of evolution that we're in, there's just no need for us to resort to those kind of draconian M&A deals. We really like to buy things that you know we think we can easily tuck in and really implement the right way and really make our user experience that much more compelling and therefore we can fit that model perfectly.

Tse: What are the next milestones that you expect to reach over the next year? And what should investors be expecting from you and your company?

Slootman: We're very early innings and in terms of ... opportunities, so we can expect us to continue to march down the field and take as much business down as we know how. We will continue to lean in very hard -- the arrival rate of resources will be ferocious. As you can see from our results, we're running the company in the loss position -- you know we're still a net consumer of cash and we're doing that on purpose. It's not like we can't be profitable. But we're really choosing to invest resources as fast as we can intelligently stretch because we have such a great opportunity. We're going after it as hard as we know how and can do it in a productive and intelligent way. That's for sure what you can expect from us. But the other thing, I mentioned this earlier, we're out to establish really a macro category around managing service relationships in the enterprise. And CRM -- customer relationship management -- this is sort of an analog which we call service relationship management, this is a category that's uniquely ours. It's really not that well understood yet in the marketplace but enterprises are beginning to wise up to the fact that they're implementing ERP systems, they're implementing CRM systems, and now they're like, 'Now wait a second, managing those relationships is something that we only do sort of by happenstance, you know, we really don't have a concerted software strategy or discipline around that.' That's really what we are going to bring to the world, to the marketplace, in the years to come.

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.>
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