ServiceNow's product has become ubiquitous in the world of IT service management. It’s easy to get on the platform, but very expensive to remain on it. With no real predators and no true competitors, ServiceNow is very difficult to move away from. ServiceNow very much leans on their land-and-expand sales strategy. They’ll sell you one or two of their core products and then expand their footprint into other key areas of your business, increasing your dependence on their products. Organizations must find ways to protect themselves – either at the initial purchase or when renewing – from the pitfalls that can make ServiceNow cost prohibitive down the line. There are five key challenges that customers must anticipate and negotiate against to effectively mitigate future cost increases in their ServiceNow agreements.
- Product Bundling
- License Under Utilization
- Price Escalation
- In-Term Product Price Increases
- Custom SKU Price Exceptions