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

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

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 each product family’s low and high discounts, 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

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

• 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.

Detailed Breakdown of ServiceNow Pricing

IT Service Management (ITSM)

Features Included

• Incident Management: Streamlines managing IT incidents to restore services quickly.
• Problem Management: Identifies root causes of incidents and reduces the number of future incidents.
• Change and Release Management: Manages changes and releases to minimize risks and ensure smooth deployments.
• Service Request Management: Automates handling service requests to improve efficiency and user satisfaction.
• Configuration Management: Maintains an accurate configuration management database (CMDB) to support decision-making.
• Knowledge Management: Provides a centralized knowledge base for sharing information and best practices.

Typical Pricing Range

• Pricing for ITSM modules typically starts at around $10,000 to $50,000 per year for smaller implementations. It can exceed $100,000 annually for larger enterprises, depending on the number of users and the level of customization required.

IT Operations Management (ITOM)

Features Included

• Event Management: Monitors infrastructure and applications to detect events and prevent service disruptions.
• Orchestration: Automates tasks and workflows across IT and business processes.
• Service Mapping: Creates visual maps of service dependencies to understand the impact of changes and incidents.
• Discovery: Automatically identifies and tracks IT assets in the environment.
• Operational Intelligence: Uses machine learning to predict and prevent issues before they impact services.

Typical Pricing Range

• ITOM pricing ranges from $20,000 to $100,000 per year, varying based on the complexity of the environment, the number of assets being managed, and the specific features and modules implemented.

IT Business Management (ITBM)

Features Included

• Project and Portfolio Management (PPM): Helps manage and prioritize projects, resources, and budgets.
• Application Portfolio Management (APM): Provides visibility into the application portfolio to optimize usage and costs.
• Financial Management: Tracks and manages IT financials, including budgeting, forecasting, and cost optimization.
• Agile Development: Supports agile methodologies and DevOps practices to accelerate software delivery.

Typical Pricing Range

• The cost for ITBM modules typically starts at $30,000 per year for basic implementations. Depending on the scale of the operations and the number of users, it can go up to $150,000 or more annually for comprehensive setups.

Customer Service Management (CSM)

Features Included

• Case Management: Manages customer cases and interactions to ensure timely resolution.
• Knowledge Management: Provides a self-service knowledge base for customers to resolve issues independently.
• Omni-Channel Support: Integrates various communication channels, including email, chat, phone, and social media.
• Service Level Management: Tracks and ensures service level agreements (SLAs) compliance.
• Field Service Management: Manages field service operations and optimizes technician schedules.

Typical Pricing Range

• CSM pricing usually ranges from $20,000 to $100,000 per year, influenced by the number of users, the complexity of customer interactions, and the level of integration with other systems.

Human Resources Service Delivery (HRSD)

Features Included

• Employee Service Center: Centralized portal for employees to access HR services and information.
• Case and Knowledge Management: Manages HR cases and provides a knowledge base for employees.
• Onboarding and Transitions: Automates employee onboarding and offboarding processes.
• Performance Analytics: Provides insights into HR service performance and employee satisfaction.
• Mobile Access: Allows employees to access HR services from mobile devices.

Typical Pricing Range

• The cost for HRSD modules typically starts at $15,000 per year for basic implementations. Depending on the number of employees and the range of HR services provided, it can reach $70,000 or more annually.

Security Operations (SecOps)

Features Included

• Security Incident Response: Manages and automates the response to security incidents.
• Vulnerability Response: Identifies, prioritizes, and remediates vulnerabilities across the organization.
• Threat Intelligence: Integrates threat intelligence feeds to provide context for security incidents.
• Configuration Compliance: Ensures IT systems are configured according to security policies and standards.
• Security Orchestration, Automation, and Response (SOAR): Automates security workflows and responses to improve efficiency and effectiveness.

Typical Pricing Range

• Pricing for SecOps modules ranges from $25,000 to $150,000 per year, depending on the organization’s size, the complexity of the security environment, and the specific features and integrations required.

Frequently Asked Questions