Service-Now CEO Fred Luddy Sees a Clear Path to $1 Billion in Annual Revenue

the San Diego company as they scrambled to lower their IT costs.

“We’re a company that’s been very fortunate,” Luddy says. “But I think a lot of it was Arnold Palmer luck. He used to say, ‘The more I practice, the luckier I get.’ “

So what does Service-now do?

For the past four or five decades, Luddy says the person responsible for overseeing a company’s information technology systems has had problems answering such questions as what do I own? How well is it operating? And is it doing what I intended it to?

Service-now’s software enables the chief information officers at big companies and other organizations to keep track of their assets, such as computers, software licenses, and other IT resources. At the same time, it generates the kind of information that business executives can use to understand, for example, how the cost of operating a sales force in the field compares with the cost of selling products through an online catalog.

Service-now’s Web-based services also enable IT groups to manage their operational chores, which Luddy categorizes as “incident, problem, change.” An incident means something stopped working and needs to be fixed immediately. It might be that an employee’s laptop won’t boot up. A problem means investigating how or why the laptop stopped working. And a change means what’s done to fix it, which might be as simple as a software upgrade.

“Our core business is managing those three core disciplines,” says Luddy, which is no small matter. A big organization can have 50 to 100,000 incidents per month and five to 10,000 changes per month.

The SaaS business model enables Service-now to

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.