The simple answer involves three items: Growth, automation and customer experiences. ServiceNow develops a cloud-based IT service management (ITSM) platform that's increasingly popular with corporate help desks, DevOps teams, security professionals and even managed services providers (MSPs).
While legacy help desks often rely on siloed information and manual tasks, ServiceNow automates many functions across departments -- ensuring communicates between help desks, DevOps, security teams and more. The end result, in theory, enhances end-customer experiences.
ServiceNow Attracts MSPs, IT Consulting Firms
Customers have embraced the company's platform and ITSM strategy. ServicesNow's revenues were $385.7 million for Q4 2016, up 35 percent from Q4 2015. The IT channel has taken notice of the company's rapid growth. Large MSPs and global IT systems integrations have embraced ServiceNow in recent months, CEO Frank Slootman told Wall Street back in October 2015.
Eager for a piece of the action, large systems integrators have been buying up ServiceNow consulting firms -- which typically assist customer deployments of the platform. In some scenarios, the consulting firms also consume ServiceNow to help support their end customers.
Among the M&A deals we've tracked:
Accenture Acquires Solid Servision
Accenture confirmed the Solid Servision deal this week. Solid Servision, based in Germany, is one of the largest independent ServiceNow pure play companies in Europe, Accenture claims.
Solid Servision is now part of Accenture’s global ServiceNow practice, adding approximately 100 professionals with more than 130 ServiceNow certifications to Accenture.
It's a safe bet more M&A across the ServiceNow partner ecosystem will emerge. Among the destinations to watch for M&A negotiations: A major ServiceNow customer and partner conference, dubbed Knowledge17, is set for Orlando, Fla., in May.
Complete M&A Coverage: Track all VAR, MSP and CSP mergers and acquisitions by visiting the ChannelE2E Milestones section daily.