In my ServiceNow consulting practice, I frequently hear that ServiceNow is costly. But how do you know? There is at least two bases why you don’t know for certain:
- ServiceNow does not make its product pricing available to the public.
- Because using the platform can result in cost savings and a positive return on investment, it’s difficult to predict how much the platform will cost in the long run.
Given this, you won’t know how much ServiceNow will cost and save your custom software development firm unless you speak with ServiceNow directly or a ServiceNow partner like FortySeven47.
However, you may delve deeper into the ServiceNow pricing topic first – and you’ll find all of that information below, hot off the press (where ‘hot off the press’ refers to our hands-on experience offering ServiceNow services).
In this blog article, Hanna Shnaider presents a broad overview of the factors that determine ServiceNow prices and several ServiceNow cost examples.
What Factors in Your ServiceNow Total
On the internet, you could discover a lot of nonsense about ServiceNow costs. Some of the cost examples provided are outdated (for example, rates for the no longer available ServiceNow Express product), and some pricing-related theories are simply bizarre, such as “$40,000 is a minimum” or “ServiceNow offers a free trial period.”
ServiceNow’s pricing strategy incorporates a complicated matrix of factors, each factor counts in to determine your total, none of the samples you’ll discover are likely to be anywhere near your recurring subscription charge.
Your industry and geographical region
ServiceNow solutions, as you may know, may be used by businesses in practically any industry. Manufacturing, logistics, finance, IT, public services, healthcare, construction, retail, and travel & hospitality are just a few of the industries our ServiceNow professionals have worked in.
Representatives from each of those industries may have distinct custom software acquisition methods and diverse financial resources. That is why, contrary to what we at FortySeven believe, ServiceNow considers your industry when computing your licensing pricing.
Similarly, suppose two software development companies in the same industry do not differ in any of the other cost factors listed below. In that case, their ServiceNow prices will change if their offices are located in different areas, such as the United States and the Middle East.
Your company size and annual revenue
It has long been assumed that ServiceNow is only suitable for businesses with fewer than 500 people. Companies with 200-300 people, on the other hand, are starting to show interest in ServiceNow solutions, which FortySeven sees as a developing trend among the ServiceNow implementation requests we receive.
In such circumstances, I believe that the correct implementation scope, which can be determined with FortySeven’s unique ServiceNow implementation model, is the key to ServiceNow’s success.
Your size is the first factor in ServiceNow’s bespoke quotation computation, but the number of licenses you have and your estimated yearly income also factor in.
The Type of ServiceNow product and package preferences + license types
Normally, the cost of your ServiceNow licenses is determined on the package you select: IT Service Management, IT Operations Management, IT Business Management, Security Operations, Customer Service Management, HR Service Delivery, and so on are all terms used to describe the management of information technology. This basic guideline applies to at least two packages of each product: the more capability supplied, the higher the price.
Furthermore, the number and type of licenses you’ll require will affect your final cost. The ServiceNow ITSM licensing model, for example, has three types of licenses:
- Requester – they are the folks who will be receiving the services you’ll be delivering with your ServiceNow solution. This license type is free because all of your development organization’s employees can use it.
- Approver — for any ServiceNow user who will be granting approvals (average cost per user).
- Fulfiller – for the FortySeven software professional who will provide services to your customers (the costly kind of license).
FortySeven’s Examples of ServiceNow License and Implementation Costs
ServiceNow pricing for a 200-employee custom software or mobile app development firm may start at $30,000 per year for the Standard ITSM package and $55,000 per year for a company with 15,000+ workers, as shown below. However, because of the complicated ServiceNow cost structure, such sample instances can only offer you a rough indication of how much a ServiceNow subscription will cost. The only way to find out your actual pricing is to speak with a ServiceNow representative.
Let’s take into account one of our projects where we introduced ServiceNow ITSM Standard for a 50,000-employee candy factory to see how much it costs to adopt ServiceNow. They required features for Incident, Request, Change, Configuration, and Knowledge Management.
The ITIL processes of the custom software agency had to be tailored to the peculiarities of their industry, ServiceNow came out of the box with a lot of customization. The project took 1.5 years to complete and cost the software development company $350,000. The development companies cited lowered IT support expenses and enhanced employee productivity as the most important outcomes of employing ServiceNow after testing the technology ‘in battle.’
How Much Will ServiceNow Set Me Back?
As you can see, asking oneself how much ServiceNow costs is pointless; you won’t know unless you speak with a ServiceNow representative or a ServiceNow partner.
In any situation, the right question to ask is whether a ServiceNow solution is worth your time and money, not how much it costs. And, based on our experience with ServiceNow implementations in large, mid-sized, and even small businesses, the benefits of ServiceNow are always worth the effort.
ServiceNow reduces operating expenses, improves custom software development company procedures, and boosts staff productivity in whatever department you choose to use if the deployment process is painstakingly aimed at addressing your custom software development companies’ most alarming ailments.
So, if you’re considering calculating the return on investment of deploying ServiceNow in your software development organization, FortySeven IT experts of ServiceNow installation specialists are here to assist you.
Request that our ServiceNow experts examine your business case, offer an appropriate ServiceNow implementation scope, and calculate the ROI of your complete ServiceNow initiative to get to the hard facts about your ServiceNow future.
Allow our custom software developer to assess your ServiceNow pricing and ROI to ensure ServiceNow is worth your time and money.