ServiceNow Launches App Store

ServiceNow launched its ServiceNow Store for paid and free applications and integrations developed on the ServiceNow platform, a configurable, extensible solution built on an enterprise-grade cloud infrastructure, the company said. At launch, there are more than 80 certified applications and integrations available to download.

Delivering an additional revenue stream for channel partners, the store features value-added business apps created by technology partners, solution providers, systems integrators and service providers. The apps are sold at a price determined by the app developer, and ServiceNow receives a 20 percent commission for each sale. All apps and integrations are certified by ServiceNow for performance, security and compatibility on the ServiceNow platform. Customers can buy the apps with credit cards. All sales are in U.S. dollars.

Partners are looking to drive revenue from the apps to balance out their services portfolio, said Pat Casey, vice president and general manager, ServiceNow Platform Business Unit. “If you look at most of our partners today, they make most of their money on implementation services with ServiceNow.”

The store launch also is about getting more enterprises to buy and use the ServiceNow IT services management platform. Most of ServiceNow’s revenues from the new launch will come from selling the software instances and platform licenses. “For us, the store isn’t about a revenue stream. We’ll make money from it, but it’s really about enabling the vendor community because that is where the lion’s share of the revenue for the store transactions end up. We want to use it as a mechanism to expand platform usage across enterprises that already use us and expand into new enterprises,” said Casey.

The new apps also help enterprise IT customers provide applications to meet new business requirements and automate more of their enterprise services. The apps deliver a faster time-to-value from applications that they can buy instead of developing a custom app on their own, particularly if they don’t have the time or expertise to create their own apps, said Casey.

To help ServiceNow’s implementation and technology partners train their staff to work with the platform or develop apps on the platform, the company offers a developer program that gives partners access to the technology, documentation and learning paths.

However, anyone—a customer or college student—can use the developer program, but to use the store, you must join the technology partner program, said Casey. Offered at two levels, basic and select, the annual fees are $5,000 and $20,000, respectively. To obtain the select level, partners have to demonstrate a certain level of experience on the platform and have executed a number of deals in the previous year.

There are approximately 100 companies in the partner program, ranging from big global system integrators like Accenture and KPMG to a more traditional partner base, including Cloud Sherpa, Fruition Partners and MobiChord, said Casey. “These are companies that have transitioned from our implementation partner program into the technology partner program in order to write apps.”

Partners also include new integrated software vendors that “are doing net new development on our platform,” he added.

Initially, Casey thought most of the new products would be utility apps that improve the IT services management application, but there are a surprising number of greenfield applications, including apps for mobile management, asset management for oil and gas drilling, legal workflow, and clinical trials management.

ServiceNow partners, including Cloud Sherpas, Fruition Partners, and MobiChord, have developed some of the initial applications. A few examples include Cloud Sherpas’ Legal Services App to supplement ServiceNow’s Legal Service Management Solution with advanced functionality to address unique legal workflows, and the Security Incident Response App that monitors and detects security events and routes execution of proper responses.

Fruition Partners also developed two apps for the launch: LIFT Intake (which provides a single place for all an organization’s calls, emails and self-service submissions) and the Telebridge IT Alert Management app (which generates voice call alerts for an organization’s IT team via Twilio software). MobiChord’s Mobility Management Solution app automates mobile device and wireless expense management.

Gina Roos, a Channel Insider contributor, focuses on technology and the channel.