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How one Aussie partner is building a business on ServiceNow

James Henderson | June 27, 2017
As customer edge towards a cloud-first mentality, ARN explains why ValueFlow is aligning with a SaaS pioneer in Australia.

David Favelle (ValueFlow) and Brent Paterson (ServiceNow)

Having partnered with ServiceNow for four years, David Favelle understands its impact on the customer.

Speaking as an experienced IT veteran, and founder and CEO of ValueFlow IT, Favelle is building a business around the industry’s latest Software-as-a-Service (SaaS) star.

“We understand the value proposition that ServiceNow brings to the table,” he said. “It’s so much more comprehensive than any other competing product.”

Since starting out five years ago, Favelle spent the first 12 months carrying out exploratory work, assessing emerging technologies in the market.

“I’ve always worked at C-level which allows a better understanding of what is going on in the market,” he said. “At the time, it was clear there was value in moving off the old upgrade on-premise cycle world, a world that keeps you locked in straitjackets between releases.

“There were many things holding the customer back and it was clear that ServiceNow would become a real accelerator of capability.”

With the bulk of revenue coming through ServiceNow business, ValueFlow is an advisory led integrator of the technology, providing independent consultancy work alongside digital management.

“The customer will ultimately keep choosing ServiceNow at the renewal because we’re providing ongoing value, rather than a drop and run,” Favelle added. “Instead, we provide a roadmap for the next 2-3 years and that’s why the pure play works well for us.

“This market is growing at a rapid rate and it requires a lot of expertise and resources.”

Fresh from reporting financial results for its first quarter of 2017, ServiceNow continues to diversify its business mix to achieve ambitious growth targets, as its IT service management suite grabs the attention of boardrooms across the world.

Currently, 73 per cent of all customers licence more than one product up from 50 per cent two years ago, with the vendor well positioned to deliver on its goals through a growing partner ecosystem.

Furthermore, the business continues to expand into new markets, adding 26 Global 2000 customers during the first quarter, compared to 21 in the same period last year.

Perhaps crucially however, ServiceNow serves a core base of 370 customers, each paying more than US$1 million in annualised contract value, an increase of 51 per cent year over year.


Building a business

Since betting the business on ServiceNow, ValueFlow has expanded headcount from one to 35 within four years, with plans in place to reach 50 staff by the end of 2017.

“It’s hard to stay up with the levels of innovation coming out of ServiceNow because it’s accelerating away from the opposition,” he said.


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