This is M&A deal Number 72 that ChannelE2E has covered in 2020. See the complete M&A deal list here. Also, this is the second AIOps-related acquisition we've seen this year. The other involved LogicMonitor buying Unomaly.
Loom Systems, founded in 2015, detects IT issues before traditional monitoring tools by ingesting, understanding, and then trending against machine data logs, the company says. Loom then delivers the knowledge the frontline needs to resolve those issues quickly, the company adds.
ServiceNow to Acquire Loom Systems: Partner Implications
Loom, which raised a $10 million venture capital round in November 2019, had the beginnings of a partner program ahead of the deal. The company sale could be a win for ServiceNow's MSP and partners that offer help desk services to end-customers. Armed with Loom Systems, the ServiceNow platform will allow partners to automate remediation tasks, reducing the number of Level 1 IT incidents, the company asserts.
This is ServiceNow's second acquisition since late 2019. The earlier deal involved Fairchild Resiliency Systems, a business continuity platform provider and MSP.
No doubt, ServiceNow has remained in aggressive growth mode under new CEO Bill McDermott, who succeeded John Donahoe in late 2019.
ServiceNow to Acquire Loom Systems: Executive Perspectives
Jeff Hausman, VP and general manager of IT Operations Management at ServiceNow, said:
“Today, IT departments struggle to meet performance expectations and keep pace with the growth in demand for new, great digital services. By bringing together Loom Systems’ ability to analyze log and metrics data with ServiceNow’s AIOps and workflow automation capabilities, IT departments will be able to proactively pin-point and resolve operational issues, enabling seamless experiences for their customers and employees.”
Added Gabby Menachem, CEO of Loom Systems:
“As a strategic partner to the world’s largest enterprises, ServiceNow is enabling digital transformation and driving customer success. By joining forces, we have the unique opportunity to bring together our AI innovations and ServiceNow’s AIOps capabilities to help customers prevent and fix IT issues before they become problems. We are excited to join the ServiceNow team to help IT organizations respond at the speed of today’s digital business."
ServiceNow expects to complete the acquisition by the end of Q1 2020.
ITSM and Help Desk Automation
While ServiceNow competes at the high-end of the market, several ITSM startups are helping midmarket and small business MSPs to further automate their service desk operations. Examples include Fully Managed in the midmarket, and Triafy in the SMB sector. Other companies to watch include ITSupportBot developer Invarosoft, and MSP automation specialist Liongard.