Unlocking the Benefits of ServiceNow License Types

Imagine maximizing the value of your ServiceNow licenses while minimizing costs, all by making informed decisions based on your organization’s specific needs. Sounds like a dream, right? Well, the dream can become a reality if you learn how to unlock the benefits of ServiceNow license types and optimize your license utilization.

Short Summary

  • Understanding ServiceNow license types is essential for organizations to maximize their investment in the platform.

  • Organizations can optimize their license utilization by adjusting allocations, monitoring user activity and identifying redundant applications.

  • Partnering with a ServiceNow License Consultant provides expert advice and customized roadmaps for optimization of licenses, resulting in cost savings.

Understanding ServiceNow License Types

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ServiceNow, a leading platform for digital workflows, offers a subscription-based licensing model. There are two primary types of ServiceNow enterprise licenses available: Named User and Concurrent User. Understanding the differences between these license types is crucial for enterprises to optimize their usage and make the most of their investment in the ServiceNow platform.

Named User licenses are allocated to specific individuals and grant them access to a designated set number of features. On the other hand, Concurrent User licenses can be utilized by multiple users and permit a predetermined number of users to access the platform simultaneously. The type of license and the features included are the factors that determine the cost.

Named User License

A Named User License is an exclusive granting of rights specifically allocated to an individual software user. It allows the assigned user to utilize a resource, such as a software platform or application, and access its features. The cost of a Named User License is determined by the number of named users. This type of license is suitable for organizations that require consistent and dedicated access to specific ServiceNow features for designated individuals.

However, it’s essential to note that Named User Licenses might not be the best fit for organizations with a fluctuating number of users or users with varying access needs. In such cases, the Concurrent User License model might be a more cost-effective solution.

Concurrent User License

A Concurrent User License is a software license model that allows a specified number of users to access a program or service concurrently. This type of license is distinct from a Named User License, which enables any individual to use the application at any time. Concurrent User Licenses are ideal for organizations with a limited number of users who require access to specific applications on the ServiceNow platform.

By opting for a Concurrent User License, organizations can potentially save on license costs by allowing multiple users to share limited access to the platform. This can be particularly beneficial for companies with users who only require occasional access or have overlapping access needs.

Optimizing Your ServiceNow License Utilization

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To maximize the value of your ServiceNow licenses, monitoring user activity and adjusting license allocations accordingly is crucial. This ensures that your organization only pays for the licenses it needs and prevents unnecessary expenditure on unused or underutilized licenses. Additionally, identifying and eliminating redundant applications can help reduce costs and streamline your ServiceNow environment.

ServiceNow offers tools like the Performance Analytics module to have customers track license usage and identify optimization opportunities. By leveraging these tools, enterprises can ensure they make the most of their ServiceNow license investments and tailor their licensing strategy to their specific needs.

Monitoring User Activity

User activity monitoring is observing and recording end-users’ conduct on devices, networks, and other corporate IT resources. It allows supervisors and administrators to monitor and gather personnel’s real-time end-user actions and behavior data on corporate networks, associated devices, and supervised workstations. User activity monitoring can assist organizations in recognizing potential security risks, detecting malicious activities, and confirming adherence to industry regulations. Moreover, it can aid organizations in augmenting employee productivity, decreasing operational costs, and optimizing IT resources.

However, there are challenges associated with user activity monitoring, such as the potential for privacy violations and the need for considerable IT infrastructure. To overcome these challenges, organizations should establish a comprehensive policy for user activity monitoring that specifies the activities to be monitored, the data to be collected, and the utilization of the data. Additionally, organizations should ensure that the necessary IT infrastructure is in place to facilitate user activity monitoring.

Adjusting License Allocations

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License allocation assigns and manages user licenses in a software system, which entails tracking usage and adjusting allocations as required. Many organizations, however, lack a definitive process for revoking licenses for no longer necessary roles. This can lead to unused licenses and unnecessary costs.

To optimize license allocations, organizations should regularly review their users’ roles and access requirements and adjust license allocations accordingly. This ensures that users have access only to the features and capabilities they require to fulfill their job functions, thereby reducing costs and enhancing efficiency.

Identifying Redundant Applications

Redundant applications are software applications that fulfill the same business function as another app that is also being subscribed to, have overlapping functionality, or are no longer necessary due to changes in business processes. These applications can occupy space, consume resources, and provide little or no benefit in improving productivity in a business.

To identify redundant applications, organizations can analyze usage trends, assess the necessity of specific features and functionality, and evaluate the associated cost of each application. By decreasing the number of redundant applications, organizations can reduce their ServiceNow license costs, eliminate unnecessary licenses, and allocate resources more productively.

Leveraging Data and Analytics for License Management

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Data-driven decision-making is essential for optimizing ServiceNow license utilization. By leveraging data and analytics for license management, enterprises can identify usage trends, cost optimization strategies, and potential savings opportunities. This empowers organizations to make informed decisions about their ServiceNow license packages and ensure they get the most value for their investment.

License analytics provide valuable insights, such as the number of active users and the frequency of user logins to ServiceNow. By understanding this data, organizations can make better decisions about their license allocations and optimize their ServiceNow environment to meet their unique needs.

Usage Trends Analysis

Usage trends analysis is a technique employed to analyze and forecast fluctuations of a product or service based on present and past data. It can detect patterns in the utilization of a product or service over time, including frequency of usage, user demographics, and feature usage. This data can then inform decisions concerning product or service development, marketing, and pricing.

Organizations can better understand their users’ needs and preferences by analyzing customer usage of ServiceNow services, allowing them to make more informed decisions about their ServiceNow license packages. This, in turn, can lead to cost savings and optimized license utilization.

Cost Optimization Strategies

Cost optimization strategies may include reducing superfluous expenses, engaging in negotiations with vendors to achieve better deals, searching for more efficient methods of operation and purchasing, improving inventory and inventory management, minimizing waste, and optimizing the logistics cycle. It is essential to prioritize maximizing business value, not simply reducing costs.

Organizations can implement cost optimization strategies to create them in their ServiceNow environment, such as automating processes, leveraging technology, and optimizing resource utilization. By incorporating these strategies, organizations can reduce their ServiceNow license costs and ensure they get the most value for their investment.

Potential Savings Opportunities

Potential savings opportunities in business can be identified through categorization and benchmarking, supplier normalization, spend fragmentation, project database, purchase category management, contract analysis, purchase order compliance, and period-on-period growth. Furthermore, businesses can save money by reviewing their processes, renegotiating contracts, optimizing meetings, eliminating unnecessary items, allowing remote working, taking care of their team, outsourcing tasks, and going paperless.

By identifying potential savings opportunities and implementing specific cost- optimization strategies, organizations can significantly reduce their ServiceNow license costs and ensure they get the most value for their investment.

Choosing the Right ServiceNow License Package for Your Organization

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Selecting the right ServiceNow license package requires thoroughly understanding your organization’s specific needs and objectives. Factors to consider include industry-specific requirements, role-based license selection, and the features and functionality necessary for your users. By considering these factors, organizations can make informed decisions about their ServiceNow license packages and ensure they are getting the most value for their investment.

A ServiceNow license consultant can provide valuable assistance in determining the type of licenses required for your organization. They can help you analyze your users’ roles, understand the features included in each license type, and optimize the combination of a specific number of licenses to achieve your objectives for all roles.

Industry-Specific Considerations

When selecting a ServiceNow license package, it is crucial to consider the specific needs of your industry. For instance, healthcare organizations may require additional licenses for clinicians, while retail organizations may need additional licenses for customer service representatives. Custom application and table entitlements, which provide additional functionality and access tailored to your industry, should also be considered when choosing a license package.

By understanding the unique needs of many customers in your industry and incorporating them into your license package, you can ensure that your organization gets the most value from its ServiceNow investment.

Role-Based License Selection

Role-based license selection in ServiceNow refers to assigning licenses to users based on their respective roles within the organization. This ensures that users can access the necessary features and capabilities to fulfill their job functions.

Role-based license selection facilitates organizations to optimize their ServiceNow license utilization by guaranteeing that users can only access the required features and capabilities.

By implementing role-based license selection, organizations can reduce costs and enhance efficiency. For example, allocating a “Developer” license to users in the development team, a “Tester” license to users in the testing team, and a “Manager” license to users in the management team ensures that each user has access to the features and capabilities they require to carry out their job functions.

Required Features and Functionality

When selecting an appropriate ServiceNow license package for your organization, it is essential to consider the necessary features and functionality. By understanding your users’ specific requirements and roles, you can choose a license package that provides them with the tools they need to succeed.

Monitoring user activity, adjusting license allocations, and identifying redundant applications can help organizations optimize their ServiceNow license utilization and ensure they obtain the maximum value from their licenses.

By considering these measures when selecting a ServiceNow license package, organizations can streamline their IT environment and maximize their return on investment.

Partnering with a ServiceNow License Consultant

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Collaborating with a ServiceNow license consultant can offer numerous advantages for organizations seeking to optimize their ServiceNow license utilization.

A ServiceNow license consultant can help enterprises save money and ensure they are making the most of their ServiceNow investment by providing expert advice and guidance on customized roadmaps for service now license optimization.

Whether your organization is just starting with ServiceNow or looking to optimize its existing license usage, partnering with a ServiceNow license consultant can provide your company with valuable insights and support throughout the process.

Cost Savings and Expert Advice

Partnering with a ServiceNow license consultant can result in significant cost savings, as they can help organizations optimize their license usage and negotiate more favorable pricing from ServiceNow. Additionally, consultants can provide expert advice on maximizing your ServiceNow license usage by monitoring user activity, adjusting license allocations, and recognizing superfluous applications.

By leveraging the expertise of a ServiceNow license consultant, organizations can make more informed decisions about their license packages, leading to cost savings, operations management, and optimized license utilization.

Customized Roadmaps for License Optimization

Customized roadmaps for ServiceNow license optimization are plans or strategies specifically designed to meet an organization’s requirements and objectives for optimizing their ServiceNow license usage. ServiceNow license consultants can provide tailored roadmaps that help organizations identify and address areas for improvement in their license utilization, such as adjusting license allocations, monitoring user activity, and removing redundant applications.

By implementing these customized roadmaps, organizations can optimize their ServiceNow license usage, ensuring they are getting the most value from their investment and maximizing the benefits of the ServiceNow platform.


In conclusion, understanding the differences between Named User and Concurrent User licenses, optimizing ServiceNow license utilization, leveraging data and analytics, and partnering with a ServiceNow license consultant are all crucial steps in maximizing the value of your ServiceNow investment. By considering these factors and implementing best practices, organizations can save money, improve efficiency, and ensure they are getting the most out of their ServiceNow licenses. So, take the first step toward unlocking the full potential of your ServiceNow licenses and embark on a journey toward a more efficient and cost-effective IT environment.

Frequently Asked Questions

What are the 5 different types of software licenses?

Software licenses come in five primary forms: GNU Lesser General Public License (LGPL), public domain, permissive, copyleft, and proprietary.

What are the 2 types of software licenses?

Software licenses are broadly divided into two categories: commercial and open-source. Commercial licenses usually involve a cost for usage, whereas open-source licenses are generally free but may have certain restrictions.

Understanding these differences is key to deciding which license is best for your needs.

What is a fulfiller license in ServiceNow?

A fulfiller license in ServiceNow is an individual subscription model that grants its user access to the platform’s features. This type of license allows users to customize their experience by defining specific roles and providing additional benefits such as support services and access to certain resources.


  • Fredrik Filipsson

    Fredrik Filipsson possesses 20 years of experience in Oracle license management. Having worked at Oracle for 9 years, he gained an additional 11 years of expertise in Oracle license consulting projects. Fredrik has provided assistance to over 150 organizations worldwide, ranging in size and tackling various Oracle licensing challenges, including Licensing Assessments, Oracle audits, Oracle ULAs, and more.