servicenow

Uncovering the True Cost of ServiceNow Pricing in 2024

ServiceNow’s pricing structure typically involves:

  • Subscription-based Model: Charges are based on a subscription, usually annually.
  • Per-User Pricing: Costs often depend on the users’ number and roles.
  • Tiered Packages: Offers different tiers (e.g., Standard, Professional, Enterprise), each with varying features and capabilities.
  • Customizable Add-Ons: Additional costs for extra features or customizations beyond the standard packages.
  • Service Type Variation: Pricing varies based on the type of service (IT, HR, customer service, etc.) and the implementation complexity.
  • ServiceNow license costs range from $70 to $100 per user for an application.

Decoding ServiceNow Pricing: The Basics

servicenow license types

Service now pricing varies based on the specific product and package chosen and the required license types.

  • Product and Package Selection: ServiceNow offers a range of products, such as IT Service Management (ITSM), IT Operations Management, IT Business Management, and more. Each product comes in multiple packages, typically with a direct correlation between the extent of functionality and price.
  • License Types and Their Impact on Total Cost:
    • Requester License: Intended for users who will receive services via the ServiceNow solution. These users can create, edit, and view their requests. This type of license is generally offered at no cost.
    • Business Stakeholder License: This license is designed for users who perform the same functions as Requesters but have additional capabilities, such as approving requests and accessing detailed record views and reports.
    • Unrestricted User License: Offers a simplified model with no role assignment limitations. The number of active users is based on the number of Unrestricted User licenses procured.
    • Fulfiller License: Allocated to specialists who provide services to Requesters. Fulfillers have comprehensive administrative and development rights within the system, including complete control over record creation, editing, and deletion.

Understanding these license types and their functionalities is crucial for effectively estimating the total cost of a ServiceNow implementation.

The specific mix and number of licenses will significantly influence the overall investment in the ServiceNow platform.

ServiceNow Discounts & ServiceNow License Costs

ServiceNow Discounts

Below are some of the discounts we have seen clients receive for ServiceNow

  1. IT Service Management
    • Discount Range: 40% to 50%
  2. IT Operations Management
    • Discount Range: 35% to 55%
  3. IT Business Management
    • Discount Range: 45% to 60%
  4. Software Asset Management
    • Discount Range: 50% to 70%
  5. Governance, Risk, and Compliance (IRM)
    • Discount Range: 60% to 80%
  6. Customer Service Management
    • Discount Range: 40% to 50%
  7. HR Service Delivery
    • Discount Range: 55% to 70%

This summary clearly shows the low and high discounts for each product family, ranging from IT management to human resources. It indicates significant variability in discounting practices across different types of products.

Unrestricted User Licensing Model in ServiceNow

Overview and Strategy:

  • ServiceNow’s “Unrestricted User” pricing model, part of their Enterprise License Agreement, has gained traction in the marketplace.
  • This model typically encompasses licensing the entire organization, offering an expansive range of access across the ServiceNow platform.
  • This model tends to offer significant discounts regarding pricing strategy. This aggressive discounting often puts it on par with other options, even though it includes a broader licensing scope.

Sales Approach and Customer Benefits:

  • The sales approach for the Unrestricted User model is often proactive, and the potential for high sales commissions drives this eagerness.
  • Leveraging this deal structure against other options can lead to more favorable customer negotiation outcomes. Comparing different models often enables customers to achieve better pricing and terms.

Implications for Organizations:

  • Organizations considering the Unrestricted User model should evaluate all their organizational needs versus the scope offered by this model.
  • Businesses must weigh the comprehensive access the Unrestricted User license provides against their usage patterns and future scalability needs.

In essence, ServiceNow’s Unrestricted User licensing model is an expansive option that can offer comprehensive access to the platform’s capabilities.

It’s an attractive choice for organizations seeking wide-ranging usage rights, but it requires careful consideration of their specific needs and a strategic approach to licensing negotiations.

ServiceNow Price Implementation and total costs

ServiceNow Implementation and total costs

The cost of implementing ServiceNow can vary widely based on various factors.

Here’s a simplified breakdown:

  • Industry and Region: Costs can differ depending on the company’s industry and geographical location.
  • Company Size and Revenue: Larger companies or those with higher revenue might face higher implementation costs.
  • ServiceNow Products and Packages: The specific products and packages chosen will influence the price.
  • License Types: The number and types of licenses required are key cost factors.
  • Rough Estimate: Initial implementation costs generally start around $60,000, excluding license fees. However, this is an approximate figure, and exact pricing varies.

Frequently Asked Questions

How much does it cost for ServiceNow?

ServiceNow is an enterprise-level cloud computing and IT service management platform. Its costs start at $100 per user per month, with discounts for bulk orders.

This can range to $60,000 as a package, depending on setup cost, the specific requirements, and the industry.

What is the licensing structure of ServiceNow?

ServiceNow provides three different license types for its customers: Requester, Approver, and Fulfiler. These grant users access to the instance via an employee self-service portal. Requesters have no associated roles.

Each license type provides different levels of control over the ServiceNow platform, user interfaces, and functionality, allowing customers to tailor their usage to their specific needs.

Is the ServiceNow tool free?

No

What is so special about ServiceNow?

ServiceNow is an innovative and comprehensive platform that helps businesses save time and money with robust automation tools, intelligent IT support services, customer service management and relationship management features, and employee workflow automation.

It offers versatile solutions to modern businesses across different industries, helping them streamline their operations and become more efficient.

What is ServiceNow's pricing model in 2024?

Service now license costs are based on SN offering a subscription-based model with varying costs based on service types and additional customizations.

How are ServiceNow licenses categorized?

ServiceNow offers different license types such as Requester, Business Stakeholder, Unrestricted User, and Fulfiller.

What factors influence the overall implementation costs of ServiceNow?

The chosen products, packages, license types, and company-specific factors like size and industry influence implementation costs.

What is the Unrestricted User Licensing Model in ServiceNow?

This model provides complete access to all ServiceNow functionalities without role-based limitations.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.

    View all posts