Insights for IT Negotiations

ServiceNow’s FY22 is off to a strong start, with a Q1 subscription revenue of $1.63B representing 26% growth year-over-year. ServiceNow closed 52 transactions in the quarter with over $1M in new annual contract value, an increase of 41%. ServiceNow has over 1,400 customers paying them over $1M per year, with the average annual spend among that group coming in at $3.9M. ServiceNow continues to leverage the “stickiness” of their customer base to expand their portfolios to include more products across their various workflows - Creator, Customer, Employee and Technology (formerly IT). In this podcast, ServiceNow Practice Leader, Adam Mansfield, discusses what customers should expect from ServiceNow over the course of the upcoming year as ServiceNow works towards their goal of becoming a $15B plus company by 2026. He also shares how customers can leverage ServiceNow’s clear goals during their upcoming ServiceNow negotiations and renewals. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt

Microsoft beat expectations on the top and bottom lines, posting FY22 Q3 total revenue of $49.4B. It is clear that the continued success is directly tied to Microsoft Cloud, which includes Azure, Office365, LinkedIn, Dynamics 365, Power Apps, and other cloud solutions. Microsoft Cloud eclipsed $23B in the quarter, representing a 32% increase year-over-year. In this podcast, Microsoft Practice Leader, Adam Mansfield, discusses how Microsoft needs to move more customers to their most robust “E5” offering and, in particular, the all-in-cloud bundle Microsoft 365 E5. This is especially important given the fact that Microsoft has not yet moved as many customers as they would have expected onto the bundle. In light of this, he also covers what enterprise customers should expect as they approach their upcoming renewals as well as how to prepare for Microsoft’s plan of attack. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

Salesforce reported FY22 Q4 earnings, and once again posted strong revenue growth of 26%. They also posted 25% revenue growth for the full year while raising FY23 revenue guidance by $300M. It was very clear that Slack will be a focus for Salesforce moving forward as they expect turn it into a $1.5B business by the end of FY23. In this podcast, Salesforce Practice Leader, Adam Mansfield, discusses what to expect from Salesforce as they lean on their customer base to reach their FY23 revenue target of $32B. He also shares his thoughts on what customers should do to appropriately prepare for Salesforce’s tactics to achieve their goals. Host: Adam Mansfield: https://bit.ly/3rPGp8r SalesForce Commercial Advisory Services: https://bit.ly/2V78ADX

ServiceNow had another strong quarter and year, with subscription revenue of $1.52B in Q4 and $5.57B for the full year, representing 29% and 30% growth respectively. ServiceNow also now has 1,359 customers that pay over $1M per year, with the average annual spend being $3.8M. ServiceNow is able to do this through organic growth and executing to a strategy that has resulted in successfully getting more of their Workflow (IT, Customer, Employee, and Creator) products adopted as part of net-new deals and renewals. In this podcast, ServiceNow Practice Leader, Adam Mansfield, discusses where ServiceNow will focus to accomplish their goal of growing from a $5.57B company to a $15B company and what customers should expect from ServiceNow over the course of the upcoming year. He also shares how customers can leverage ServiceNow’s clear goals during their upcoming ServiceNow negotiations and renewals. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt

Microsoft once again beat analyst expectations, posting FY22 Q2 total revenue of $51.7B. Their success is being driven by the Microsoft Cloud (which includes Azure, O365, LinkedIn, Dynamics 365, Power Apps, and other cloud solutions). When selling their cloud solutions to enterprise customers, Microsoft will continue to pitch a “One Microsoft’ approach with the ultimate goal of getting them to use as many pieces of the Microsoft Cloud as possible. It is also clear that Microsoft will remain focused on leveraging their premium security, compliance, voice, and analytics solutions to get enterprise customers to move to the more robust (and costly) M365 E5. In this podcast, Microsoft Practice Leader, Adam Mansfield, discusses how Microsoft’s focus on selling as many pieces of the Microsoft Cloud as possible will provide an opportunity for customers to optimize their go-forward commercial relationship and overcome Microsoft price increases coming in March 2022. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

There is a direct correlation between SAP system implementation failures and how companies approach the SI selection process. The traditional procurement approach is flawed and fails to account for the complexities of an enterprise SAP SI selection today. The demand for SI services in strategic industries is accelerating as companies come out of the pandemic and shift from a “preserve and protect” mindset to an “expand and grow” mindset. In this podcast, Director of IT Services, Greg Hall, discusses what new challenges companies face when selecting an SI for their SAP project and shares four critical success factors for making SI evaluations in today’s competitive and evolving environment. Host: Greg Hall: https://bit.ly/3CcaELp IT Services: https://bit.ly/3A5Hcov Related Blog: https://bit.ly/3rHgGkc

Salesforce reported FY22 Q3 earnings this week and, once again, Salesforce posted a strong revenue growth of 27% while also raising full year guidance. Additionally, Salesforce now has two (2) business units or “clouds,” that being Service Cloud and Sales Cloud, that have an annual run rate of $6B. It was also announced that Bret Taylor will work with Marc Benioff as the co-CEO of Salesforce. Salesforce Practice Leader, Adam Mansfield, discusses where Salesforce will focus and what tactics they will deploy to reach their FY22 revenue target of $26.4B, as well as their FY23 revenue target of $31B. He also shares his thoughts on Bret Taylor’s promotion to the co-CEO role and what it could mean for Salesforce customers moving forward. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX

This is the third podcast in our three-part series covering SAP Support Model Case Studies. Listen to part one on SAP RISE here bit.ly/3k0SGEe and part two on the “Do It for Me” model here https://bit.ly/3mMGFnB SAP customers migrating their SAP workload to the cloud have four primary support models to choose from. These include the “Do It Yourself” model, the “Do It for Me” model, the professional model, and SAP RISE. In this case study, a client chose the “Do It Yourself” model to move their SAP hosting services, infrastructure services, and infrastructure to the cloud leveraging their own internal resources. This was an existing ECC customer who had some hyperscaler relationships within pockets of their organization. In their situation, it was appropriate, manageable, and scalable to select this support model because they had the in-house expertise to successfully do so. They chose to lift and shift their SAP on-premise relationship and existing cloud relationships into a single instance on the hyperscaler. There was a focus on hyperscaler optimization and the hyperscaler strategy drove a lot of their decision making. In this podcast, IT Sourcing & Commercial Advisory Practice Director, Chip Hanna, discusses the benefits of the DIY model as well as some key considerations for anyone interested in this option. For more details on all four models and client examples for each, download our on-demand webcast, Defining Your SAP Cloud Strategy: Azure, AWS, GCP and RISE Compared bit.ly/3pQp40a Host: Chip Hanna: bit.ly/37gknCk SAP Commercial Advisory Services: bit.ly/3yjImwb

This is the second podcast in our three-part series covering SAP Support Model Case Studies. Listen to part one on SAP RISE here https://bit.ly/3k0SGEe SAP customers migrating their SAP workload to the cloud have four primary support models to choose from. These include the “Do It Yourself” model, the “Do It for Me” model, the professional model, and SAP RISE. In this case study, a client who was focused on their existing on-premise SAP ECC migration to S/4HANA chose the “Do It for Me” model, where they leveraged a 3rd party who takes care of the SAP hosting services and infrastructure services specific to SAP and sits on top of a hyperscaler of their choice. This particular customer managed their applications themselves and had a highly customized environment with many 3rd party integrations. They wanted to move to S/4HANA in the cloud but since the RISE application stack excludes customizations, extensions, and 3rd party applications, RISE would have created challenges and was not the best support model for their ECC to S/4 transformation. In this podcast, IT Sourcing & Commercial Advisory Practice Director, Chip Hanna, discusses why this client chose to leverage a hyperscaler and the “Do It for Me” model and the benefits of doing so in their situation. For more details on all four models and client examples for each, download our on-demand webcast, Defining Your SAP Cloud Strategy: Azure, AWS, GCP and RISE Compared https://bit.ly/3pQp40a Host: Chip Hanna: https://bit.ly/37gknCk SAP Commercial Advisory Services: https://bit.ly/3yjImwb

ServiceNow once again posted subscription revenue growth of 31%, beat previous guidance, and raised full-year guidance. ServiceNow also now has 1,266 customers paying over $1M per year with an average annual spend of $3.6M. ServiceNow is so confident in their ability to execute to their land and expand strategy that they continued to reinforce the fact that they are on a clear path to achieve $15B by 2026. In this podcast, ServiceNow Practice Leader, Adam Mansfield, discusses where ServiceNow will focus to accomplish their goal of growing from a $5B company to a $15B company. This includes a sales pitch tied to selling as many products within each of their workflows (e.g., IT workflows, customer workflows, employee workflows, and creator workflows) as possible. He also shares how customers could potentially take advantage of some of these key insights in their upcoming ServiceNow negotiations and renewals. Host: Adam Mansfield: https://bit.ly/3rPGp8r ServiceNow Commercial Advisory Services: https://bit.ly/3ls6VDt