VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Sunday, December 28, 2025
ServiceNow, Inc.
NOW · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
ServiceNow sells the Now Platform, a cloud-based enterprise workflow automation platform used across Technology, Customer/Industry, Employee, and Creator workflows. The core subscription business is dominated by digital workflow products, with a smaller ITOM product family and a minor professional services component. Its primary moats are platform/data-model lock-in, suite expansion across departments, and an extensive partner ecosystem that scales implementations and complementary solutions. Key risks include suite competition from large software vendors and easier re-platforming as integration standards and AI agents evolve.
Primary segment
Digital workflow products (subscription)
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 5 tags
Updated 2025-12-26
Segments
Digital workflow products (subscription)
Enterprise digital workflow automation and service management platform (ITSM/ESM, employee, customer, creator workflows)
Revenue
85.8%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
IT Operations Management (ITOM) products (subscription)
IT operations management (ITOM) workflow automation (discovery, service mapping, AIOps/IT ops workflows)
Revenue
11.1%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Professional services and other
ServiceNow implementation, consulting, and training services
Revenue
3.1%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Digital workflow products (subscription)
Enterprise digital workflow automation and service management platform (ITSM/ESM, employee, customer, creator workflows)
Revenue share computed from FY2024 10-K: Digital workflow products subscription revenue $9,422m out of total revenue $10,984m.
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
A single platform/data model centralizes workflows, records, automations, and integrations, making replacement a large data + process migration project.
Erosion risks
- Customers standardize on hyperscaler-native workflow tools
- Integration layers abstract away ServiceNow-specific data model
- AI agents reduce dependence on a single workflow UI
Leading indicators
- Net retention / expansion rates
- Module attach rate across multiple departments
- Customer migration wins/losses against alternative platforms
Counterarguments
- Enterprises can increasingly replace point workflows with Microsoft/Salesforce suites
- System integrators can re-platform customers if ROI is compelling
Training Org Change Costs
Demand
Training Org Change Costs
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
ServiceNow deployments embed process design, governance, and admin expertise across IT and business teams; changing platforms retrains users and retools operating models.
Erosion risks
- Increased use of standardized templates reduces unique process embedding
- Partner-led implementations reduce internal expertise concentration
Leading indicators
- Number of certified admins/developers within customer orgs
- Renewal duration trends (multi-year vs. annual)
Counterarguments
- If deployments are shallow (limited customization), switching costs fall
- Customers can consolidate around an existing ERP/CRM vendor workflow stack
Suite Bundling
Demand
Suite Bundling
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
One platform spans multiple workflow domains, enabling land-and-expand across Technology, Employee, Customer/Industry, and Creator workflows.
Erosion risks
- Best-of-breed point solutions regain share in key workflow categories
- Procurement pushes unbundling to reduce vendor concentration
Leading indicators
- Products-per-customer / multi-workflow adoption
- Average contract value (ACV) growth and large-deal counts
Counterarguments
- Large enterprises may prefer specialized tools per function (HR, CSM, ITOM)
- Competitive suites can bundle at lower incremental price
Ecosystem Complements
Network
Ecosystem Complements
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
A large partner ecosystem (global SIs, ISVs, cloud partners) expands implementation capacity, industry solutions, and complementary apps, reinforcing platform adoption.
Erosion risks
- Partners prioritize competing platforms due to incentives or strategy
- Services capacity shifts away from ServiceNow in downturns
Leading indicators
- Number of partner-delivered implementations and certifications
- App ecosystem growth (published apps, marketplace GMV if disclosed)
Counterarguments
- Major SIs are vendor-agnostic and can shift focus to rivals
- Partners can capture most implementation economics, weakening ServiceNow's control
IT Operations Management (ITOM) products (subscription)
IT operations management (ITOM) workflow automation (discovery, service mapping, AIOps/IT ops workflows)
Revenue share computed from FY2024 10-K: ITOM subscription revenue $1,224m out of total revenue $10,984m.
Design In Qualification
Demand
Design In Qualification
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
ITOM modules are embedded into enterprise IT workflows and integrated with systems of record; replacement often requires requalification of integrations and operating processes.
Erosion risks
- Observability vendors displace ITOM with unified monitoring + automation
- Cloud-native ops tooling reduces demand for platform-centric ITOM
Leading indicators
- ITOM attach rate within existing ServiceNow customers
- Competitive displacement rates vs. observability/AIOps suites
Counterarguments
- Best-of-breed observability platforms can offer faster time-to-value
- ITOM capabilities may be seen as "good enough" vs leaders, limiting pricing
Suite Bundling
Demand
Suite Bundling
Strength: 3/5 · Durability: durable · Confidence: 3/5 · 1 evidence
ITOM can be bundled with digital workflows (ITSM/ESM) to deliver end-to-end visibility-to-remediation workflows on one platform.
Erosion risks
- Customers separate ITOM from ITSM vendor selection
- Pricing pressure from hyperscalers and observability consolidation
Leading indicators
- Average deal size when ITOM included vs excluded
- Win rates in competitive ITOM evaluations
Counterarguments
- Buyers may prefer independent observability stack integrated into ITSM via APIs
- Bundling can be resisted by procurement and architecture teams
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
Operational data (configuration, discovery, service maps) tied to workflows on the Now Platform increases data portability and integration complexity for ITOM replacements.
Erosion risks
- Standardized data export/interoperability reduces lock-in
- Architectures move toward decoupled event buses and data lakes
Leading indicators
- Customer adoption of data portability/export features
- Shift toward open telemetry and vendor-neutral service maps
Counterarguments
- Data can be replicated into third-party tools, reducing dependence
- Organizations can keep ITSM while switching ITOM if integration is clean
Professional services and other
ServiceNow implementation, consulting, and training services
FY2024 professional services and other revenue was $338m (3% of total) with a -2% gross loss percentage per FY2024 10-K.
Service Field Network
Supply
Service Field Network
Strength: 2/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Delivery capacity is augmented by third-party partners; scale is less about proprietary services and more about coordinating a broad implementation network.
Erosion risks
- Systems integrators capture most services delivery and influence customer roadmap
- Customers standardize on a preferred SI, weakening ServiceNow services attach
Leading indicators
- Share of implementations delivered by partners vs in-house
- Services gross margin trend
Counterarguments
- Implementation services are highly substitutable across consultancies
- ServiceNow intentionally shifts services to partners, reducing moat relevance
Evidence
Our one platform, one architecture and one data model approach can provide a "single pane of glass" that connects people, processes, data and devices.
Integrated data model + platform architecture implies high migration and re-integration costs.
Many of our customers ... have developed multi-year digital transformation plans that expand over time the use of ServiceNow products and services.
Multi-year, expanding deployments imply organizational standardization and embedded operating processes.
The workflow applications built on the Now Platform are organized in four primary areas: Technology, Customer and Industry, Employee and Creator.
Cross-domain workflow portfolio supports bundling and expansion into adjacent departments.
We have a strong and growing ecosystem of partners that helps accelerate our customers' digital transformation initiatives and deliver customer value at scale.
Explicitly frames partners as a scaling mechanism for delivery and customer value realization.
Our remaining product offerings, primarily comprised of our IT Operations Management ("ITOM") products, are predominantly priced on a subscription unit basis.
Supports that ITOM is a distinct, monetized product family on the platform (useful for segmenting and assessing competitive dynamics).
Showing 5 of 9 sources.
Risks & Indicators
Erosion risks
- Customers standardize on hyperscaler-native workflow tools
- Integration layers abstract away ServiceNow-specific data model
- AI agents reduce dependence on a single workflow UI
- Increased use of standardized templates reduces unique process embedding
- Partner-led implementations reduce internal expertise concentration
- Best-of-breed point solutions regain share in key workflow categories
Leading indicators
- Net retention / expansion rates
- Module attach rate across multiple departments
- Customer migration wins/losses against alternative platforms
- Number of certified admins/developers within customer orgs
- Renewal duration trends (multi-year vs. annual)
- Products-per-customer / multi-workflow adoption
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.