We are still in the very early days of cloud adoption in the enterprise says ServiceNow CEO, John Donahoe. Also, something that is often overlooked is that governments are finally embracing the cloud which presents a huge opportunity to all of the big cloud players.
“Governments are now aggressively embracing cloud, not just the US government, but government’s all over the world,” noted Donahoe. “Just like in our consumer lives where cloud-based applications gave us better user experiences, hid the complexity and greater efficiency, the same things now happening in the enterprise and in government.”
Still in the Early Days of Cloud Adoption in the Enterprise
We’re still in the very early days of adoption of cloud in the enterprise. You see it in companies and you see it in governments. Governments are now aggressively embracing cloud, not just the US government, but government’s all over the world. Just like in our consumer lives where cloud-based applications gave us better user experiences, hid the complexity and greater efficiency, the same things now happening in the enterprise and in government. They need to deliver better experiences for their customers and their employees and they need productivity and cloud can deliver all three. If it were a baseball game I would say we’re in the second or third inning.
What I hear from customers is that they want to adopt four to six core strategic platforms, sort of modern tech stack of the future. Typically that includes a Salesforce, a Workday, a ServiceNow, maybe an Office 365, an Adobe, and SAP. They want to put as much as they can on those core platforms and take all that data together and deliver better experiences for their customers and better experiences for their employees. What ServiceNow does, sort of unique among that, is we help build some of the connective tissue across the different platforms.
Very Large Government Entities Embracing Cloud
I see a shift with governments and the cloud. Two to three years ago government’s were suspicious of cloud, they were worried about security and that has changed and that has changed in a powerful way. Governments are under pressure to deliver better services to their citizens, whether it’s the IRS or any other sector, and drive efficiency in productivity.
You see very large government entities embracing cloud. You saw the contract yesterday with Microsoft. We’re seeing it both in the federal government in the US, federal government’s around the world, and many state and local governments, because cloud platforms like ServiceNow enable them to drive tremendous productivity and provide better experiences.
There is Enormous Growth Left with Cloud
It’s the early innings. There is enormous growth left with cloud at the infrastructure level and at the software level. At the infrastructure level where AWS and Azure and Google Cloud play you see that cloud adoption happening around the world. I think there’s going to be a lot of growth for both organizations.
If you talk to customers, customers don’t want to be sole source on this, customers want to have choice. Even in the public cloud, they’re often embracing one or two or three different public cloud providers to make sure that they’re they’re mitigating the risk and they’re getting the best of what each of those platforms has.