This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ServiceNow CEO: 'We Have No Real Competitors'

Stocks in this article: NOW AMZN GOOG CRM MKTO

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.>

5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs