When I won Wednesday with the CEO of ServiceNow, Bill McDermott, one of the first things I asked was: “Have you been Doge-Ed?”
The White House DOGE The office has made an ambitious effort to reduce federal spending. The American government buys a lot Software, and since this efficiency campaign started in January, Wall Street worried technological companies to lose precious contracts.
ServiceNow was one of those of the potential shooting line, helping to lower its stock by more than 20% this year. Before the results of the first quarter of ServiceNow, TD Cowen analysts wrote on the “current concerns of the DOGE”. The company obtains approximately 10% of its revenues from the American federal government, so “the risks are more acute,” analysts wrote in an overview.
On Wednesday afternoon, ServiceNow reported figures in the first quarter, and these concerns seem to have been unfounded, at least for the moment. The company beat Wall Street’s expectations and increased advice for subscription income.
More importantly, ServiceNow said that its American public sector company increased by more than 30% in annual shift and that it added six new government customers in the first quarter. The title jumped 11% in after-hour.
“Un-Doge-Ed,” said McDermott.
Avoid Doge Carnage
I asked him why ServiceNow managed to avoid Doge Carnage.
The CEO said that the company helped organizations save money by providing cloud software that automates many tasks, but important. The ServiceNow software can also facilitate the consolidation of several different IT tools and services under one roof, another way of saving.
With DOGE on the pace and pricing risks when closing confidence, if organizations can use software to reduce costs, be more effective and reduce duplication services, it may be less painful to continue paying serviceNow.
This last point can be particularly relevant for government agencies, which often have many older and less effective inherited software systems.
“We are working with agencies to replace expensive inherited systems,” said McDermott. “They realize that this is the moment when the industrial industrial complex must be collapsed on serviceNow. It is cultivated in cost and complexity over time due to the purchase of Maverick. We are there to help reduce and simplify this.”
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Savings in Raleigh
McDermott cited the city of Raleigh, in North Carolina, which uses ServiceNow for self-popular staff so that different teams, such as HR, IT, facilities and payroll, do not have to enter the same information more than once. This allows city employees for more than 1,302 hours a year, according to a case -based case study.
The ServiceNow software has also helped Raleigh replacing six inherited services management solutions and reducing the number of employees in the City of the City of eight to two. These six staff members are now working in other regions with the city. Raleigh estimates that he has still saved $ 315,000 per year.
It seems small, although such savings add up over time and on several customers. And when Elon Musk goes around the demanding agencies reduce expenses, each small piece helps.
“I like to say that everyone wins in this company, and I still believe it. However, the customer wants losers now and seeks to consolidate the systems and software services,” said McDermott. “In uncertain times, we help organizations consolidate their inherited technology expenses.”
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