How much does ServiceNow cost?

31 October 2022| 5 min|Marcin Tyburski - CEO

The cost of ServiceNow depends on many factors

The question from the title of this article is among the most common ones that we hear during our talks with the customers. The cost of ServiceNow is the issue that arouses great interest. One of the reasons that stands behind, is that ServiceNow does not officially publish its pricing. This is because it is changeable and dependent on many factors. Therefore, when you ask how much ServiceNow costs, we answer that it depends. To know the detailed costs of ServiceNow configuration and its implementation, the best solution is to contact our consultant. However, it is worth remembering that the final price is influenced by a number of issues that you should take into consideration. Here are the most important of them.

The cost of ServiceNow depends on what it is needed for

ServiceNow is not a single, closed system – it is a service management platform with multiple applications running on it. They are grouped into suites that respond to specific challenges and needs of the organization – such as ITSM, HR, Customer Service or IT Infrastructure and Operations Management. Most companies start to use ServiceNow software first in ITSM, and after successful implementation they decide to expand the system with new suites. So the answer to how much ServiceNow costs is hidden in the different question – what do you need ServiceNow for? When we know what problems should be solved, we can recommend specific suites for your company and determine their prices.

The cost of ServiceNow depends on the version

One suite can be available in three versions – Standard, Professional, Enterprise. They differ in the number of applications, and thus also in price. Although companies usually start their adventure with ServiceNow from the simplest version, sometimes it is different. The implementation of each version requires a similar amount of work. The Standard is a good choice when the processes in the organization are functioning and defined, but not yet developed enough to introduce full automation. Professional version allows you to use more advanced elements of ServiceNow such as AI, Virtual Agent or Robotic Process Automation.

The cost of ServiceNow depends on the license model

Each suite is licensed differently, which also affects ServiceNow pricing. There are two different licensing models. The first one is based on the number of users.

They are divided into three groups depending on their role – they are:

  • requester (user who initiates the request)
  • business stakeholder (user who accepts or rejects the request)
  • fullfiller (user who executes the request).

The requester license, unlike the others, is free. The other licensing model (used, for instance, in the IT Operations Management) is based on the number of monitored devices. The crucial step is to verify the licensing method – only knowing that, the cost of ServiceNow can be determined in a given case.

The cost of ServiceNow depends on the instance

ServiceNow is a cloud solution that offers two instances – production and non-production (development). The first one is used in the organization on a daily basis, the other is a place where you can experiment, update and change the system. New and changed configurations can be uploaded to the production instance. This division protects the system from errors and interruptions. Clients who plan a lot of changes often decide to buy an additional test instance. This also affects the final costs.

It is worth emphasizing that different ServiceNow suites can run on one instance – e.g. ITSM can function together with HR Service Delivery. As there is a separate licensing system for each module, two licenses must be purchased to give the employee access to both.

The cost of ServiceNow depends on its integration with other systems

ServiceNow integrates with external systems, such as e-mail, resource information database, users data or other databases and systems to which we transfer data. This also has an impact on implementation costs. ServiceNow offers many ready-made integrations as a part of the platform – for example in Tokyo release there are as many as 173 of them. The client has access to as many of them as it is set out in their selected package. It is worth emphasizing that to adapt ServiceNow to your needs, you usually do not need customization i.e. changing the code, but just a configuration. This solution makes it easy to upgrade the system.

The cost of ServiceNow is fixed within a monthly subscription

ServiceNow pricing is set on monthly usage. The system is available only in the subscription model. Customers usually buy ServiceNow license for 3 years. During this period of the subscription, the price remain the same. The shortest contract term is 12 months. The price of the ServiceNow subscription includes a dedicated instance of their data center – all security support, servers, network switches, firewalls, email security systems, 24/7 support, data archiving and redundancy – the customer’s instance always has a backup in another data center. The centers are built in pairs, in Europe they are in Amsterdam and Frankfurt, and in London and Dublin. The pricing also includes maintenance. As soon as an upgrade occurs, customers are entitled to the latest version of the system, and thus new functionalities in the suites they chose.

The cost of ServiceNow is a part of larger business change

Thinking about costs of ServiceNow, remember that its implementation should not be a single move, but a part of your company transformation. This system is not implemented to continue on doing what it used to be done differently, but to introduce a completely new quality. ServiceNow opens up new possibilities to replace those that no longer work. It means changing the way you work, simplifying, rebuilding and automating processes. It is a part of a larger process that is business change, with ServiceNow being the change medium. We always make our customers aware of it.

In addition to the implementation of the system, many other things should happen – such as discussion in the organization, communication, preparation for the emergence of a new tool. Thanks to it, the process of adaptation is much easier and as a result, success is more certain.

The cost of ServiceNow depends on the organizational complexity

To understand how much ServiceNow costs, you need to answer a few questions. What suite do you choose? In what version? How many of them? What is the scope of implementation? How is ongoing business change going? This is a set of questions we ask the customer before preparing a personalized offer. ServiceNow includes solutions for organizations from almost every industry. The character of business does not affect the price of the license, but it determines other things – the choice of the suite, its price and the final implementation costs (e.g. it is more complicated to implement ITSM than ERM).

The organizational complexity is also an important factor. If it has multiple departments, it is important to understand the specifics of how they work and then plan a training in each of them. This takes more time and also increases prices.

The cost of ServiceNow depends on the scope of implementation 

In SPOC, we developed implementation practices for our customers who start their adventure with ServiceNow software. Identifying the scope of implementation can be challenging. At this moment, it is worth trusting your business partner who can evaluate your organizations’s needs, offers features of the most value and plan the first phase of implementation. It is frequent that the customers, who find the opportunities of ServiceNow fascinating, decide to get too many of them at once.

We recommend getting familiar with the system at first and learning how to use it; after that, it is time to think about new requirements. Based on our experience, we prepared a fast-track way to implement ITSM tool (where usually the process of implementation of the entire system begins) at a fixed time and price. This solution is the best for all the customers who are new in the world of ServiceNow.

ServiceNow is not a cost, it is an investment

When talking about ServiceNow pricing, the question should sound differently. Instead of wondering how much the system costs, think about the benefits it is going to bring. Instead of seeing ServiceNow software as a cost, perceive it as an investment that makes your work easier and leads to significant savings of time, work and money.

Do not hesitate to contact us!

If you want to know the detailed costs of ServiceNow platform configuration and implementation for your organization, just contact us – our consultants will be happy to prepare a detailed offer.