You might frequently hear that ServiceNow is costly. But how do you know? There are at least two reasons why we don’t know for sure:
- ServiceNow does not make their product pricing available to the public.
- Using the platform results in conceivable cost savings and a good ROI, so it’s difficult to predict whether the platform will cost that much in the long run.
Given all of this, you won’t know how much ServiceNow implementation will cost and how much it will save your organization until you speak with ServiceNow or a ServiceNow partner like us – LivYoung Realtech. However, you can dig deeper into the ServiceNow pricing topic first – and you’ll find all of that information in this blog.
What factors contribute to your ServiceNow total?
You can find a lot of gibberish about ServiceNow prices on the internet. Some cost examples provided are out of date , and some pricing-related hypotheses are simply bizarre, such as “$40,000 is a minimum” or “ServiceNow has a free trial period.” The truth is that none of the examples you’ll find are likely to come close to your recurring subscription fee because ServiceNow’s pricing model employs a complex matrix of factors, each of which influences your overall total.
- Geographical Location of your organization
As you may already know, ServiceNow solutions can be tailored to virtually any industry. Logistics, banking, information technology, and public services are just a few of the industries that our experts have worked in while providing ServiceNow services. And representatives from each of those industries may approach software procurement differently, as well as have different financial capabilities. That is why, as we at ScienceSoftLivYoung Realtech believe, ServiceNow considers your industry when calculating your license prices.
Similarly, if two companies are in the same industry and do not differ in any other cost factor listed below, their ServiceNow prices will differ if their offices are located in different regions, say, the United States and the Middle East.
- The size of your company and its annual revenue
It has long been assumed that ServiceNow is only suitable for businesses with less than 500 employees. However, companies with 200-300 employees are becoming more interested in ServiceNow products, which we at LivYoung Realtech see as a growing trend among the ServiceNow implementation requests we receive. In such cases, I believe that the right implementation scope, which can be defined using our proprietary ServiceNow implementation model, is the key to ServiceNow success.
Your size is the first step in ServiceNow’s custom quote calculation, but your number of licenses and estimated annual revenue also have an impact on the total price.
Your ServiceNow product and package preferences & license types
Naturally, the cost of your ServiceNow licenses is determined by the product you select: IT Service Management, IT Operations Management, IT Business Management, Security Operations, Customer Service Management, HR Service Delivery, etc. Each product has at least two packages available, and the general rule is that the more functionality available, the higher the price.
Furthermore, the number and type of licenses required will influence your total cost. The ServiceNow licensing model for the ITSM product, for example, has four license types:
- Requester – for the people who are going to receive services that you’re going to deliver using your ServiceNow solution.Requesters have the ability to create, edit, and view their own requests. This license type is completely free.
- Business Stakeholders – for the people who are going to perform everything a Requester does as well as approve requests, view any record, view and drill down reports.
- Unrestricted User – a simplified user licensing model that has no restrictions on role assignment. The number of users allowed to be designated as “active” is determined by the number of Unrestricted User licenses purchased.
- Fulfillers – for the specialists who are going to deliver services to your requesters and have full admin, developer, or usage rights within a purchased offering, including creating, editing, or deleting any record in the system.
Ask the right question: How much will ServiceNow cost me?
As you can see, asking how much ServiceNow costs is pointless unless you speak with a ServiceNow representative or a ServiceNow partner.
In any case, the right question to ask yourself is not how much ServiceNow costs: it is whether a ServiceNow solution is worth your time and money. And, based on our experience with ServiceNow implementation cases in large, mid-sized, and even relatively small organizations, the benefits of ServiceNow are always worthwhile. ServiceNow reduces operational costs, streamlines business processes, and boosts employee productivity in whatever department you choose to use it in if the implementation process is meticulously targeted at curing your organization’s most alarming pains.
So, if you’ve begun to consider calculating the ROI of implementing ServiceNow in your organization, LivYoung Realtech’s team of ServiceNow implementation consultants is here to assist you. Request that our ServiceNow experts analyze your specific business case, propose a relevant ServiceNow implementation scope, and calculate the ROI of your entire ServiceNow initiative to get to the hard facts about your ServiceNow future.