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Does ServiceNow count as "yet another IT operations management platform"? Do they make you groan because their IT applications business is doing so well? Or bec

• exelius 12y ago
  Yes, they do. And I groan because it's an idea I've probably heard a thousand times. Companies will have success, but there will likely be another company in 5 years that overtakes them, and another 5 years after that. It's basically a zero sum market where the entrenched vendor's scale is too big to adapt to the new use cases that pop up every 5 years or so, so a new vendor pops up, becomes the entrenched leader, and the cycle repeats. ServiceNow will likely just get acquired by someone (HP? SAP? Oracle?) and integrated as a module in a massive ERP system. I definitely don't agree with their valuation; they're trading at like a 300 forward PE which is just ridiculous for an enterprise technology vendor in a space as crowded as theirs. They're likely only trading at that level because the analysts are anticipating an acquisition and subsequent bidding war. That doesn't validate the value of their services; just that big enterprise tech vendors are willing to pay a premium to displace their competitors.