ServiceNow, Inc. (NOW) Earnings Call Transcript & Summary

Welcome, and thank you for joining us for today's event. [Operator Instructions] First, today's session is being recorded, thanks again for joining us. hope you enjoy today's webinar. Now let's get started.

All right. Hello, and welcome to today's presentation titled Modern Business Demands Modern ITAM, navigating trends, challenges and business impact. Today's presentation is focused all on the results of ServiceNow's annual ITAM survey that we do in collaboration with Enterprise Management Associates or EMA, if you know them. Additionally, we'll explore some practical ways that ServiceNow can help you our organization. We'll do that with some live demo content where we'll actually get to see IT asset management in action. My name is Bryan Blackburn, and I'm a 5-year veteran here at ServiceNow, working exclusively on our asset management solutions across software, hardware, cloud and enterprise. Today, I'm joined by Mike Temple, who is part of our solution consulting team. Mike, it's so great to have you on with us today.

Thanks for having me. I appreciate it.

Yes, of course. So before diving into the heart of today's presentation really quick, just wanted to mention that today's presentation is protected under ServiceNow's safe harbor statement as we may have some forward-looking statements kind of embedded throughout the presentation today. So just wanted to keep that in mind as we move forward. And here is what we've got on for the agenda today. Throughout the presentation, again, we're going to cover the results. Some of the results of our annual ITAM survey and some of those key findings about the current state and the future of IT asset management. Mike is also going to be walking us through a few live demos today where we'll get to see how ServiceNow can help address some of these challenges and opportunities the ITAM teams are facing today. And again, if you have any questions as we present, please remember to use the Q&A widgets and we'll do our best to get through all of the questions during the live Q&A portion. But again, if we're not able to get some of those questions, we'll be sure to follow up individually. All right. So we recognize that a lot has changed recently. We had an increase in remote work, especially in the past few years, where we really had to kind of adjust to those distributed workforce and even more recently now the transition back into the workplace. There's a lot of movement and traction, maybe even some tension there in that area. We also are facing unstable economic conditions that are impacting all of our business operations. We have inflation, cost of resources are going up in addition to the number of recent layoffs that we've -- that have been pretty prominent across many industries. We also have environmental concerns. How is the work we're doing impacting environment? And what can we do as an ITAM team to make things better. And we also have emerging asset management disciplines here. So software, hardware, cloud resources, even enterprise assets now being managed together which has created, again, a little bit of chaos for some ITAM teams, especially some of the smaller teams who are managing more and more assets. And of course, all of this lies kind of under the surface of digital transformation initiatives and kind of accelerating the use of new technology, shifting resources to the cloud, consolidating tools and data centers. So ITAM teams really are feeling the impact of things that are happening around us. And when we ask the survey panel about their impact of digital transformation on their organization and their teams, those responses were pretty much divided into 2 equal groups. The first group sees the heightened reliance on IT. Kind of has an opportunity to elevate ITAMs role and influence in the business. allowing them to excel and enhance their standing when crucial decisions are being made by the leadership teams. The second group, on the other hand, experiences the change is more as a source of frustration. There's a scope and the speed of the innovation that to them only introduces more complexities into their environments. And it's just an increased number and variety of tools or assets that need to be managed. So whether you're on the side of innovation or even on the side of maybe a little bit more frustration, but one thing is pretty clear that ITAM is now going through a shift. In our survey, we really wanted to explore the shift just a bit more. So we made it to the results section of the presentation. It's really quick to get here. But this year's survey report heavily focuses on the business impact of ITAM and the growing prominence of ITAM really as a strategic business partner to our leadership and to other teams across the business. Really quick. I wanted to share a quick snapshot of our survey panel, which was about 450 IT leaders and practitioners from across the globe. And our goal here really was to have a vendor-neutral audience. We focused on those who are specializing in IT and have a direct understanding of the ITAM function and/or they play a direct role in managing their organization's assets or the teams that do? So we're excited to see pretty fair representation here across industries and company sizes. And looking at those specific individuals here, and who participates so that right -- the top right corner here, we have the majority of the panel here at the management or the VP level, those who are overseeing asset management teams and processes or the assets themselves. But we also have a good representation at the practitioner level, the IT professional, the individual contributor and as well as a group at the CXO level. So again, just really wanted to showcase where our data is coming from? So you have a little bit better understanding of what these numbers mean and to who they mean it to. All right. So one of the first questions that we asked the panel was, which statement best describes IT's area of responsibility. A majority of the panels or here the line or the Wasabi Green, 64.4% said that IT is increasingly being held responsible for the business impact of its investments. And here, it really is where the ITAM inflection is happening. In the wake of all that going on around us and across the globe, kind of going back to that first slide where we discussed some of those big changes, IT teams are now expected to deliver more value across more areas of the business and they need to be able to prove that value. The next group, 30.8% said IT is only responsible for the performance and availability of the service it delivers and the smallest group here, 4.8%, says the IT works within a budget, but how they use it is up to them. But we suspect that this last group is going to continue to shrink and pretty rapidly. I think what we're all experiencing right now is kind of a more strategic approach to IT and IT investments. So it's definitely going to be harder and harder for IT teams to not report up on what they're doing. So an interesting correlation here from the responses, 76% of organizations who also reported in excess of 20% increase in IT budget kind of fall into this Wasabi green, the 64.4% category, Where they are being held more responsible for their investments. The business is holding them responsible now. So as ITAM becomes more visible across more functions and especially at the C level, more funding is going to be rewarded when IT and ITAM get more involved in business-wide initiatives and conversations and are able to showcase that business-wide value. And it makes sense, asset visibility and ITAM information, those are 2 critical components to many areas of the business. Security, HR, finance, IT services, these are all teams that depend on accurate and complete information to get their work done. So it makes sense, right? This inflection is happening and modern business is really -- just demand modern ITAM. We need to keep up with what's happening in the business world. So in that light, completeness and accuracy of asset information, that's going to be critical to cross-domain success. So we can look at this kind of through the IT services perspective. And looking at the very top right here in the corner, we first asked the panel how they rate the overall completeness and accuracy of organization's ITAM information. And what we got was 33.3%. So 1/3, I see there is a typo here, it should be 33.3% here. I believe that the quality of their asset information is outstanding. And with that in mind, we have some interesting findings here to help us better understand the relationship here between ITAM data and business. So we asked the panel again how they would -- how they would rate the overall quality of service their IT organization is able to deliver to all of its users. And what we have here is 14.7% saying that their IT organization delivers average quality of service, 51.5% here, which is the majority reported an above-average quality of service, and we have a 33.8%. That number is correct. Here said that their IT organization delivers outstanding quality of service. So the interesting correlation here between these 2 questions, and the group that answered average IT service, only 6% of those respondents reported having outstanding quality ITAM information. Whereas on the other hand, in the group that answered outstanding IT service, 70% of those respondents also reported outstanding quality of ITAM information. So what we see here is that there could be a likely difference in teams being able to deliver high-quality IT service from those delivering average service could stem from just inaccurate and incomplete asset information. So this actually leads us into our first demo. I'm going to turn it over to Mike. Mike is going to share one of the ways ServiceNow's IT asset management solution can help drive the IT function, specifically in the employee off-boarding case so Mike, I'll hand it over to you. [Presentation]

Awesome. Thank you so much. So I'm going to start by sharing my screen here. Let's do a quick share here. All right. So the way that we can help in the accuracy of IT asset management data is with different types of asset transition functions. The one we're going to explore here today is the employee off-boarding function. And in my use case here, I don't have an HR system integrated with what I'm showing you today. So I'm going to have to just go in and just use a widget on my request portal. This request portal, anybody who knows anything about ServiceNow, you know what the service portal is, you've seen it a thousand times. For those of you who are new to it, this is the way that end users interface with the solution. In my instance here, because I don't have an HR system that I'm going to integrate with and hook into the process of an off board, I'm just going to come in here and click reclaim asset. Now the reclamation of an asset, the use case we're talking about today is an employee off-boarding, but it's the same process for when I refresh a laptop. Got an old laptop. I've been in the company for 4 years. It's fully depreciated. It's not on a warranty anymore, and it's time to refresh. Same sort of process. The difference in this case is this is going to be a request by HR and I'm going to request for, let's use Jerry Butler. Okay. I'm going to say this is an employee separation. And what's interesting is because we've been able to maintain accuracy of data through the life cycle by integrating with loaners, with RMA processes, with incidents and change. I know exactly what this employee should have. As a manager or an HR representative or an asset manager, I can make decisions. So I'm looking at this Lenovo ThinkStation. I definitely want to get that one back. But I'm now looking at this Logitech desktop keyboard and optical wireless mouse. And I'm starting to wonder those are consumable assets. Do I really want them back? Maybe I do, maybe I don't. That's a business decision for your team to make. And then I'm just going to say, you know what Jerry's last day is going to be on the 17th and is he going to ship it back or is he going to drop -- pick it up or drop off. If you're a remote user, you might have a ship back. If you're in the office, you might have a pickup or a drop off. In this case here, I'm going to say he's a drop off. I've also got the ability to click this legal hold required. If this employee is engaged in any kind of litigation with the company or something that could be sensitive information, I may want to make sure that when I reclaim that asset, rather than reimaging it and putting it back on the shelf for use or putting it in the pile that's going to go to the disposal organization. I may want to just put it in my legal hold cage so that if litigation does come up or if I have to prove some sort of situation. I can go back to that asset in my warehouse or my stock room, pull it off and then be able to represent whatever it is. And also give special instructions here whatever they want to do and then I click submit. Now this can be done from a perspective of a hiring or a termination manager, HR representative, could be the manager of the user himself. I can come back here and take a look at the asset task for that. Now this is going to create some asset tasks. And you look here, we've got to drop off task for 3 different elements of that. So I'm going to actually refresh my browser to get those new asset tasks in here. And what this is going to do is if I'm an asset manager who's responsible picking up a task, what this is going to do is send me a notification. That notification could be an e-mail, could be a text, it could be a Teams, could be a Slack that says, hey, you have something to go do, click here to go do it. I'm just going to sort my list here by asset -- hardware asset task. I am missing it. Here we go hardware asset task. And then you see here that I started with 3, and now I have 6, right? I'm going to open one of my later ones here. This task should be -- I'm going to get a hardware asset task for each asset in that list. And the reason is, is because it might have different types of assets. I might have a laptop, a cell phone, I might have an enterprise asset like maybe he's responsible for something in the warehouse and he's been assigned a forklift, right? All those may be reclaimed by different people. This here, just assigns it, it was requested for Jerry Bottler. This would happen to be for the wireless mouse because I chose to reclaim it. And this asset task has been assigned. I know at this point to look for. What that also does is it's just workflow, so you can configure that to do whatever business process you want to require, including notifying the manager. What this does is says, hey, manager, we know that your employee is offboarding. This laptop is going to be dropped off. Don't just put it in a drawer give it back to IT. We know you have it. We want to reimage it and put it in the stock group so that we can issue it to another employee or maybe it's out of warranty maybe we're going to retire and dispose of it. Whatever the case may be, IT is then in control. And if we don't get responses, we can even set a service level agreement so that a nag message goes out to the employee to the manager, maybe over the course of time, we'll escalate that to a regional manager or a VP or whatever the case may be to make sure we get these assets returned to us. Because not only is there sensitive data on those assets, but that asset is depreciating. It's like pork chops, it goes bad. So we definitely want to make sure we get it back. Okay. That's my demo for the first part, Bryan, back to you.

Awesome. Thanks, Mike, again, for showing us employee off-boarding. We'll get back to the survey results here in a minute, but first wanted to take a quick poll of you, the audience that we have here with us today. So we'd like to know how you would characterize the overall maturity of the IT asset management function at your organization. We have some options here for you to read through, but I'll read them with you. Would you say your ITAM function is optimized. So costs are optimal, risk is minimal, key processes, those can be automated. Would you characterize ITAM as actively managed. So a majority of assets are officially managed throughout the life cycle. Is your ITAM standardized? So a standard approach is in place, but there still may be some areas in there that remain ad hoc or maybe some types of assets are managed better than others. Or is your ITAM function at the early stage. So fragmented approach to managing our assets and asset types where it is largely reactionary and ad hoc. Go ahead and take a couple more seconds here just to kind of see where we're at collectively as a group. On the next slide, we actually get to see how we compare to what was shared in the survey. So we have a good amount here coming in. All right. I think we're good to go. So let's take a look at what we've got. All right. So looks like with us here today, we have a lot of folks here in the early stages, which is great. I mean, we're glad you hear, hopefully, what you have today, we can share some light or some insights that can help you drive forward. Actually kind of surprised to see maybe not confident enough yet to say optimized, but that's okay. We'll -- day by day, we'll get there. But interesting to see, I think, let's just go and look at what we've got from our panel, from our survey panel. All right. So comparing results from this year's survey, we asked the panel the same question that we just asked you. We wanted to help -- needed help characterizing the overall maturity of your ITAM function. And year-over-year, there almost was no change in any of these areas. There was maybe like 0.5%, maybe 0.1% change from here and there. But basically, since last year, our group has kind of remained the same as far as where they're seeing their maturity is at. And right now, just over half of the panel fell -- kind of fell within the active management and the maturity level, 28% here, just right under that of the panel said that their ITAM maturity is at the standardized level. And going back up to the chart -- top of the chart here, we see that 26% of the panel also report optimized level ITAM maturity. And I definitely want to keep an eye at this top percent -- this 26% here at the optimized level. And while it's certainly nice to just know where organizations collectively stand in terms of ITAM maturity, I think, the more compelling finding is how organizations are achieving optimized ITAM. And so we're looking at the same question again on ITAM maturity. And again, that's 26% of the optimized level. And what we saw was that 100% of these respondents in this group here are using a platform approach to reach this level of optimization. And when you think about the benefits of operating ITAM on the same platform where IT is being managed, where the rest of the business operates, benefits like improved data quality, simplified and automated work, increased collaboration and efficiency between teams, a platform really might be a key driver leading organizations to ITAM optimization. And the data here on this next slide shows that there's still a ton of movement toward a platform approach, and we're seeing a continued breakdown of this silo mentality when it comes to managing different asset types. So we ask the panel to choose the statement that best describes their organization's approach to asset management. And here is where we've actually seen a lot of changes year-over-year. So 34% of the panels said that asset management is more strategic. So there's a drive to bring all asset types together within a single or shared platform in the hopes of promoting more costuming workflows. And this was an increase of 11% from last year. And looking at the second group now where 28% of the panel said that they are a separate teams still in tools specific to the asset types being managed. This is sort of kind of like that true representation of what that silo mentality means, right? So this was a decrease in 8% from 2022. And moving down to the third group period, 22% of the panel said that the IT hardware, software and cloud assets are being managed together, but enterprise assets, Internet of Things, OT, industry assets, those are being managed separately. And this was an increase of 3% year-over-year. And then the fourth group here at the bottom is where 15% of organizations are combining hardware and software as a discipline, but keep even their cloud teams separate. And overall here, we can see there's again, a lot of changes in terms of how teams are approaching ITAM. But what's clear is that more disciplines are being combined, more organizations are adopting the platform approach to managing their assets. This is even made clear in terms of cloud FinOps and ITAM teams, where separation currently is norm, but collaboration is still very high. At 43% of organizations ITAM teams are proactively and consistently collaborating with FinOps and Cloud Center of Excellence teams. However, the norm really is most organizations is FinOps and ITAM teams remaining separate, more specialized teams. At the bottom, you can see that there's about 5% of the panel who are currently reporting that one team is responsible for both ITAM and FinOps. But that is expected to change here, however. When we're asked what the long-term relationship of FinOps and ITAM will likely be here on the right-hand side? 55% of the panel predicted the ITAM and FinOps will eventually be brought into a larger unified organization that's going to manage all asset types, just using specialized tools on an enterprise-wide platform. So on the other hand, 11% say that the relationship between FinOps and ITAM will pretty much remain the same, separate functions when we kind of share information is needed. So it would be interesting to see how this 11%, if things remain the same, how they're going to fare in terms of ITAM maturity. So just kind of interesting to keep an eye on moving forward here. So no matter where organizations really are in terms of ITAM maturity or even how they approach asset management. Every organization experiences challenges somewhere within the asset life cycle so it really makes end-to-end asset life cycle management. I won't say problem issue, but it is a challenge for most businesses and most organizations to get right from end to end. So the asset life cycle phase identified as most challenging is the monitoring phase with 27.5% of the organizations that are taking this stance. So these organizations may have uneven asset usage or performance data. They may be more reactive when it comes to security issues. So that does indicate that maybe there's some process or information gaps between security teams and our ITAM teams. All right. So at this point, I'm going to turn it over again to Mike, who's going to walk us through our next demo on our ITAM content library life cycle data and how this can help improve risk management response. So Mike, floor is all yours. [Presentation]

Awesome. Thanks, Bryan. I'm going to go ahead and share my screen again. And let me know when you see it. All right. So what we're looking at here is we take a look at the content life cycle data. What this data will do is help an organization take a look at the life cycle of the assets they have in their environment, both from a hardware, software and even from an enterprise perspective to say, okay, maybe there's a risk dimension associated with this. And we're going to take a look at this, for example, I'm going to open up this MacBook Pro 17. Every asset, we're looking at a very specific serialized asset here from a hardware perspective. Every asset is related back to a model, whether it's a hardware model or a software model, there's a model behind it. That model describes generically all of the assets that meet that model requirements. And so we want to do a bit of normalization and add life cycles to it. So our content library is going to come along and say, here's the string of characters that you get when you import your advanced ship notification, where you rate with a reseller or a provider, there's a lot of information that you might get in the short description of an asset. What we want to do, that's really, really hard to report on. So what we're going to do is we want to normalize that. So that's what we turn into normalized manufacture of an Apple, a specific product you leave in the model with and now this is something that we can report on. We can write queries, we can write reports because it's a standard strength. But what we also do is we enrich that data. One of the examples of data enrichment and only one is this hardware model life cycle where we have the ability to grab these hardware model life cycles as advertised by the publisher as to when end of life, general availability, end of sale all start. What that allows us to do is take a look at my state according to risk dimensions of supportability as well as proactively do catalog management. So that when a user goes and wants to order a laptop, he's not ordering a laptop that in 2 months, it's going to be end of sale. And in 6 months, it's going to be something that's going to be hard to get parts for that kind of thing. So what we're able to then do is that even do a new one here, so I can do an internal one. Let's say that my organization, very large global conglomerate people all over the world. We have a hard time being able to rapidly remove technology, offboard technology. I can do an internal 1 before the publisher wants so that I can then begin a project to manage that out. Where that comes into play, not only from an individual asset perspective, but this all reports up into our strategic portfolio management set of products. In this case here, we're looking specifically at technology portfolio management. In this case, I'm looking at a business service product inventory. Your business service is made up of hardware and software models. Each 1 of those has the ability to represent a risk dimension of supportability throughout the life cycle. And you see here that I've got Microsoft SQL Server 2012 enterprise that is going to go end of life, end of support. It looks like it happened in 2022, we're already in the red here. We should probably do something about that. Looks like we've got a Dell PowerEdge T610 that's been out of support for quite a while now. So this business server, it really has a substantial risk of supportability, if this server crashes. If there's a hot fix that they don't apply. And so we had -- some vulnerability is exploited. All these sorts of things enable to then proactively take a look at from an architecture perspective as well as from an individual unit perspective. Then I'd be able to do things like -- especially end user compute environment, automate the process of a hardware refresh, notify the user, that your laptop is out of date, out of support. We can't get parts for it, out of warranty. Let's go ahead and begin the process of selecting a new laptop compared to the enterprise architecture view what we're looking at right here, where this business service is at risk. And that's how the content library can help drive out some of those risks. Bryan, I'm going to turn it back over to you.

Great. Thanks so much, Mike. I think Honestly, what you've done with here just really reinforces the importance of that complete and accurate asset information, right? And how it can really add value to other areas of the business like security. So next, we'll take a brief look at the near future of ITAM, but first, we do have one more poll question here for you. We're curious to know how ready your team -- ITAM team is to deal with organizational-wide change. Do you feel ready now, is your team equipped to embrace change and kind of work proactively to address any changes that are happening? Do you think your organization is getting there, so you can tackle most changes, but some areas certainly create more challenges than others. Do you feel less than prepared so where changes basically, we consume much of your team's time and resources, but you'd be able to manage or do you feel you're just not quite ready to tackle change efficiently? Changes would heavily disrupt your daily work. Yes, I'm just curious to see kind of where we're at in light of all the things that are happening. I think in the more recent years, we've all really had to kind of tackle change and face change kind of head to head. So just really curious to see where we lying now. So I'll give you just a few more seconds, sorry, remember to go ahead and hit submit to submit your answers so that they find its way over to us. I think it's safe to say we can go ahead and move on. So thank you all for responding. Let's take a look to see how we're doing as a group. All right, so good, about almost 20%, so a good 1 and 5 of us, right, have feel pretty prepared in bracing change. And I think, again, the past several years really maybe helped us prepare for more change to come. Good to see that there's a large group here, 51.72% that's also feeling like they're getting there, they can tackle more changes. So a good majority here is feeling at least somewhat confident in addressing change. So it's really exciting to see here. All right. So the reason we wanted to ask how you equip -- how equipped do you feel to tackle change, right, is because change is inevitable. And the near-term future of ITAM is really going to depend on our ability to keep up with organizational change. So here's a look at what our panel has ranked as the biggest changes coming to ITAM in the near future. Of course, we had asked the panel what changes to asset management requirements are you going to see within the next 6 to 18 months, so in the next 1.5 years or so. And they're asked to choose just their top 3. First, our IT leaders predict higher levels of automation will be the biggest change or expectation ITAM teams are going to face in the near future. And automation isn't just strategic anymore. It's almost now a survival essential for IT, especially when we're seeing smaller ITAM teams managing more assets. Automation is going to ease much of their day-to-day work. And automation just so happens to run on information, right? So the need for complete and accurate data here again it rears its head, but next on the list is a greater attention to ESG initiatives. And this was a new item that we added to the specific question this year as sustainability issues and environmental concerns definitely are starting to become more prominent in our environments. And especially for our European colleagues who are now kind of facing more of ESG reporting requirements and policies surrounding that. It wasn't surprising to see that ESG is actually near the top of the list this year. It even passed expansion beyond IT assets, which was the top of this list last year. In a few slides from now, I'm actually going to dive a little bit deeper into this topic of ESG, but for now, I'll move along. And under ESG or greater attention to ESG initiatives, we do still have the expansion beyond IT assets. So there will be a continued focus on building and implementing strategy around enterprise assets, IoT, OT, industry assets anything that kind of goes above and beyond just the IT or tech space, right? But we also wanted to look at this question from the CXO perspective. So these results are filtered just from those response respondents at the CXO level. So because ITAM is at this inflection point now, not only to add more value, but demonstrate more business value, right? It's going to be critical for ITAM teams to better understand the broader business goals, especially at C-level priorities. And what you'll notice right away is that at both the general level and the CXO level, higher levels of automation still ranks as the highest in terms of what's expected to change in the near future for asset management. Expansion beyond IT comes in a second for this group, and this makes sense for the CXO who's now thinking strategically about the approach to asset management, right, and how different asset types are being managed and if they need to be managed together. And then right below that, CXOs also believe that ITAM will be expected to leverage more AI and machine learning capabilities, which effectively would also drive increased levels of automation, right? So we'll certainly see AI embedded more and more into our daily work. And we're seeing AI can help ITAM teams with things like reporting on software license consumption, analyzing contracts, right, or for enterprise assets, it could eventually help in plan for predictive maintenance and making sure that our assets stay healthy. So AI certainly has created quite a buzz, as I'm sure you're all aware. You may have also heard that ServiceNow's generative AI technology called Now Assist and that's helping our customers kind of increase their productivity, transform their employee and customer experiences and of course, automate even more processes. And so while there's not a ton to consider now in terms of ServiceNow's ITAM solutions and how we're going to be able to leverage this Now Assist technology, these conversations are happening now in hopes of building upon some of the AI and machine learning capabilities that already we have in use in our products such as machine learning normalization, right? So stay tuned on this front. There's more to come. But as you continue down this list, we'll see that the responses are fairly distributed across the other areas. And in the bottom right here, we can see the top 5 responses that came from last year's results from the CXO. We see that automation here, all those top 3 last year really has taken up -- jumped 2 spots all the way to the top this year. Right. So as I mentioned, leadership buying collaboration is going to be really crucial to the future success of ITAM. So now I'm actually going to hand it back over to Mike one last time, who is going to demo the asset management executive dashboard, which helps our customers bring their leadership into the ITAM conversation. So Mike, all yours. [Presentation]

Appreciate it, Bryan. So on the last time he can do a quick share. And this is very dashboard lead to continue the conversation because when you're sitting on an integrated platform, you're really able to kind of help with the higher levels of automation. I mean, at the end of the day, your ITAM suite sits on top of a workflow platform. So it helps with automation. And then expanding beyond just IT assets in the enterprise space. There's a lot of things. I mean, even though forklift has an IT-based device on it these days. So combining those 2 and then putting in a platform and giving an executive view of that helps drive the conversation internally and answers questions like, why am I spending all this money on a solution to manage my assets, right? Well, here's why. Let's take a look at this. Let's take this first widget over here. This tells me my entire spend. Now I have a demo environment, it's much smaller than your guys' dashboard is going to look like. But I've got a $96 million spend. Where is that spend going? I can click into it, drilling into the dashboard to give an experience of, okay, across software, hardware and cloud, here's where I'm spending my money. I can take a look at my hardware device much they actually cost they can drill into it here. Going back, I have an actual savings and the potential savings widget. This savings is the ability to have cost avoidance for renewing a software license that's not being used or that type of thing right, including cloud spend. In this case, my actual savings, if I drill into it, comes from pulling back a subscription, in case you have a Slack or PagerDuty or removing of Autodesk, AutoCAD, each one of those having a distinct potential savings cost, and that has created what's called a removal candidate. What a removal candidate is talking about automation, is the ability to set a threshold saying that if a user has not used this technology in some period of time, something that you configure, then we're going to create a workflow to remove that, whether that workflow is removing something like TechSmith, snag it that's installed locally on the device or if it's workflow to remove it from the Adobe or Microsoft Office portal so that, that license is freed up. All that is going to be workflow driven. That workflow is configured by you. So if you want to be able to notify the manager or ask permission or automatically do it, all that's going to be -- you configure that workflow how you want it to roll. That's where the savings come from, and this type of thing, including cloud cost savings, being able to reduce my building, set thresholds around my ability to spin up something in Azure or AWS or Google Cloud saying hey, this is a test machine -- test instance, we do not need this to be on 24 hours a day or rightsizing it. So hey, this workload that's running over here is much bigger than it needs to be, we can reduce that cost. That's the actual savings widget. The potential saving widget is the opposite. It's not the opposite. It's the beginning part of that. So I can take a look at what I have not yet removed but I can have a potential like this top one here, removing SAP named users for application development, can save me a little over $8,000. And I've got categories, rightsizing, unused machines, reservation, business hours, all those sorts of things over my estate. I have other dashboards here who including asset fulfillment time, I can take a look at this and say, hey, there's some assets that aren't being fulfilled for 30-plus days. Well, it's not ideal in the case of really anything, but especially like in HR onboarding. Are we really taking a month to get our new associates equipment to do their jobs. Let's figure out a way to reduce that and kind of drive that down. I want to see all these numbers move to the left here a little bit. And then I'll get my success goals, hardware and software success goals. You may not be familiar with this capability. This is what's something called the success portal where we can configure what a goal is and then measure our performance against that goal and have it dashboarded for the executives. All others -- types of information here, true-up costs, missing assets, expiring contracts, all of which can be drilled into to get the data they need and so that an executive can take a look at the estate and understand how well they're doing and where they need to get some better performance. All right, Bryan, I'll kick it back over to you.

Great. Thanks so much, Mike. All right. So yes, that sounds like the asset management executive dashboard. That's going to be a really great tool to have kind of in your back pocket, if you are wanting to build the stronger bridges, right, with your leadership teams and set goals with them and track goals with them. But let's move on to the rest of the presentation. So finishing up kind of on the future of ITAM and again, making good on my problems to talk about ESG. We have a small section of the survey that was dedicated just to this topic. And what we found is that the overall awareness of ESG is very high. Yet teams kind of still experience limitation in terms of tools and expertise, which -- this is what's making it challenging for them. So 63% of the panel here said that ESG is part of their long-term vision and priority. So willingness to invest in ESG and sustainable IT is high. Yet at the same time, ESG reporting was also selected by the panel as the most difficult asset task to get right, second only to security and risk management. So that doesn't tell you that it's important, but we just don't know how to do it or it's just really difficult to do. You're not alone. There's a lot of folks kind of feeling the same way. But here on the right of the screen are the areas that are most important to the panel when it comes to ESG and sustainability. So again, the panel knows about ESG and even know where they can focus some of their efforts, right? And in terms of energy efficiency and cost reduction, carbon footprint and emissions tracking, IT sourcing and supply chain improvements, the importance of ESG is there. Just organizations face challenges in terms of funding, implementation and measurement of these initiatives? And what's clear from this is that our ITAM tools just really aren't keeping up right now with processes and things that need to happen in order to catch up with the needs of our ESG team. So this actually brings us to our last demo which was made by one of our colleagues on the ESG team here at ServiceNow. The demo is going to provide a sneak peek into the sustainable IT solution. Actually, do I have a slide. Okay, I do. So the demo reds, again, a sneak peek into sustainable IT dashboard in the solution itself. And this solution brings ServiceNow ESG management together with ServiceNow hardware asset management, and this is going to help our customers kind of streamline and automate how sustainable information is gathered and reported. So let's go ahead and take a look. [Presentation]

Hello, and welcome to your quick 2-minute look at sustainable IT. We're here on the sustainable IT dashboard. You can see it lives and it is a little spot on the ESG management work space. It comes with 2 tabs, hardware assets and data centers, and we'll take a quick look at both of them. Both tabs have expected metrics that you would be looking for like energy consumption, like emissions, each one has metrics that are unique to that asset type. So for example, on the hardware tab, we've got things like how many of our assets are considered Energy Star rated. We're also tracking things like e-waste. Were our hardware assets reused, were they recycled, were they donated landfilled, right? All of the different categories that you might use within your organization or your customers might use within their organization and broken out by different categories so that you can understand how to better mitigate landfill waste. On the data center side, we've got things like how your data centers are performing, your top data centers, data center sustainability metrics like PUE, WE and CUE and then again, the energy consumption and emissions metric data as well. So again, this is really just giving you a look at both energy consumption by source as well as by location. For really good granular understanding as you go to optimize your data centers according to sustainability data. Same thing from an emission standpoint as well as little visual indicators like how these are trending over time. Now in terms of where this information is coming from, we deliver 25 metric definitions out of the box across both automated and manual metric definitions. So if we take a look, if we drill into one of these metrics, for example, we can trace our way back to an automated metric definition that we deliver. So again, you can drill into all of these, see all of the data behind these different metrics. If we take a look at the metric definition itself. So this is aggregating across all of the different data points, all of the different hardware models. We can see that this is pointing to that table in hardware asset management for hardware. And we could take a look at the conditions of this and see that we're only looking at in use hardware assets, we can also see how we're aggregating, right? Which fields that we're looking at, the aggregation type? All of those different details that you would expect to find within a metric definition, we have delivered those out of the box for you in order to make it easy to connect ESG management and hardware asset management to deliver you this beautiful sustainable IT dashboard for your sustainability professionals and your IT professionals to drive better outcomes and better impact across the sustainability of your IT portfolio.

All right. So again, if your organization is kind of increasing its focus on sustainability, the ServiceNow is sustainable IT solution may be worth exploring and you can learn more by searching for the sustainable IT in the ServiceNow store. So hopefully, some of you can go check that out if it sounds interesting to you or sounds beneficial to your organization. So we've now reached the end of today's presentation, and we quickly wanted to end with some key takeaways before jumping into the live Q&A. So first, again, ITAM has reached an inflection point and is now expected to deliver more value to more areas of the business, and we need to be able to prove that value, right? So this makes ITAM information and completeness in accuracy, such a critical component to ITAM and the success of the business as healthy information, again, is needed to ensure efficient cross-domain collaboration, workflow automation and overall just ITAM maturity. And lastly, it's imperative now for IT team or ITAM teams and IT teams to familiarize themselves with C level and broader business objectives, meaning we need to engage with our leadership teams to kind of better understand their goals, their priorities and proactively identify ways that ITAM can help. So with that, we've hoped we provided some interesting insight into the current state and future of ITAM and its growing impact on the business. Let's go ahead now and jump into the Q&A and answer some of the questions that might have come up throughout today's presentation.

All right. So let's see what have we got in here.

I don't think there's been a lot of activity in the Q&A so far, but certainly happy to answer any questions that anybody has. If any have come up.

No. We certainly got time. So definitely, there's a Q&A widget, let us know if you have any questions. We did have some thoughts on AI in there that we already kind of touched on in the presentation. So I have a great question for you, actually, Mike. So I know just recently, you gave a good presentation on kind of engagement with other areas of the business or in leadership, specifically for ITAM teams. Are there any specific things that you can share about how to best go about getting involved with leadership or including them more in that conversation, maybe outside of just the asset management executive dashboard. But are there other ways that our IT folks can start making those things happen.

For sure. So at the end of the day, executives are focused on trying to run a business. They're focused on things like how am I going to gain more market share? How am I going to increase profitability of the business. They're not focused on the assets. The assets are just something they buy to enable the business. So they're not necessarily thinking about the same things that us as IT asset managers need to look at every day. So they often aren't aware of some of the complexities or some of the things that we can do to kind of help the business. Like, as an example, a retail organization says, I want to open 500 new stores next year. Great. Do you have the supply chain to be able to get the assets to open up a store right? So these are kind of questions that they might not be thinking about necessarily proactively. As an asset manager, I recommend the breakfast or the coffee, right? If you go walk in your organization and walk up to an executive and say, listen, I think I can help the business. Do you have time for coffee on Thursday or whatever the case may be. I don't know if many executives that we -- just do. No, they're going to want to engage, they want to say, okay, you hear somebody coming to me, in my business, trying to make my business better. Let me go ahead and do that. Let me go ahead and engage with this person and then have the conversation and say, listen, you said you wanted to open 500 new stores. I don't think our infrastructure can sustain it. Here's some ideas that I have and even kind of go on from there. Makes sense?

Yes. Thanks so much, Mike. That was, great. So we have a couple of questions kind of rolling in here now, which is great. We have a few minutes left. So definitely want to take some time to get them. We had a question on hardware demo from Mike based on HAM. Short answer, yes, there was hardware asset management that he was showcasing, you had any questions here that can stick out to you, Mike?

So yes, as to pick this one here. I saw mobile devices, software license. What about fixed IT assets like circuits. Yes, like if you talk about like virtual circuits or real circuits, there's a specific version of the HAM products. It's actually a new productization of HAM as well as some service management called TNI or telecom network inventory that kind of helps manage those circuits. So we can definitely explore that as an option for you guys. There's here's another one. How does the data get entered into the app, manually, API or other? Thanks. The answer is all of the above. So we want to do everything from pulling the contract data from your legal management system, pull in entitlements from your procurement system. Do network discoveries to make sure that what we have in the asset system is actually reflected accurately, integrate with procurement systems so that when I buy an asset, the asset exists in my system before it even ships in a lot of cases, right? So there's -- all the above is really the answer there. Question here. If you have circuits, can you map those to interfaces on a CI? The answer is yes, we can. The configuration information is -- configured item is going to have the ability to map back to different assets and create a configuration item for each one of those circuits. So definitely do that as well. Let's see here. Is there RFID functionality for HAM? Yes, in fact, there is. So we have a partnership with Zebra and we actually have several customers that are doing some really cool stuff with RFID and automating the ability to check in and check out and that kind of thing. How are consumables captured in the HAM module, what details are captured. Consumables are just nonserialized assets that are depreciated immediately on purchase, mice, keyboards, anything under a certain amount of dollar amount. Anything that could be under a certain dollar amount or in a -- have any kind of complexity like must contain IT data, right? So, I know an organization that says anything under $1,500 is a consumable. We don't want to track it unless it's an iPhone because then suddenly, there could be data on it, right? So the data that we capture on those consumable devices are usually the basic model and then a quantity because we're not actually tracking individual assets being used or deployed necessarily until they're actually deployed. And then I can say that this user got a mouse and a keyboard. But I do want to make sure that in my stock, I know that I've got 50 5-foot Cat 6 patch cables, those type of things. And then from there I can pick. For those companies who have achieved a higher level of ITAM maturity, what people are process were key parts of maturity technology ServiceNow presumably present? Great and complex question. The answer is it depends on the maturity of the organization. So it's 1 of those things that every company is different. I have to get in there and understand where you are. I've got one company, one of my customers is a 140,000 employee organization, and there's one person doing SAM. They're not responsible for SAM. They're just responsible reporting back to the product owners on SAM throughout the organization so that they're not actually being the ones doing the compliance. They're just saying, Hey, I don't know if you know this, but your 20,000 licenses is over let's go ahead and fix that and then give it back to them. Other organizations where that core team is responsible for all of it and everything. And they have to be [indiscernible] experts on everything. Here's one.

Mike, may I have a go. We just got a couple of minutes left, so we definitely want to make sure we had time to just wrap things up so yes, we still have a ton of questions in the Q&A. So I expected a response from Mike and I hear you kind of following as we get the report, and we'll go ahead and reach out with the answers to the rest of those questions. So sorry to cut you out there, Mike. Really quick before we end today, I just wanted to bring up the digital the knowledge, digital experience. So we had knowledge in Las Vegas here, almost about half a year ago at this point, but there's still a ton of great content to explore through these virtual sessions where you get to hear from customers, hear from ServiceNow on kind of all the things we're doing with our customers and with our solutions that we have here. Or if you're looking forward to next year's knowledge, it's happening in Vegas yet again. Go ahead and you can scan the QR code here to just stay kind of up to date and the latest on what's happening I know for certain, if some of you are interested in presenting at knowledge, we will have a call for content that comes out here usually at the beginning of Q1 sometimes earlier. So be on the lookout. And of course, we have a ton of on-demand webinars not just for our product, but for any product or solution that we have at ServiceNow. So definitely feel free to go check some of those out, if you are kind of eager for more information. But with that, again, I just wanted to thank you all for being here today. Mike, thank you for joining today and showing us some really great things in the product, so I can't thank you enough. And with that, I hope you all have a great rest of your day, and thanks again.