The News: At AWS re:Invent, ServiceNow announced a 5 year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) commencing in early 2024. The SCA will make the ServiceNow Platform and full suite of solutions available as a software as a service (SaaS) offering in the AWS Marketplace. In addition, the agreement calls for the two companies to co develop and launch industry-specific, AI-powered business applications to host on AWS and list in AWS Marketplace to add intelligence to critical business workflows. You can read the press release highlighting the announcement at ServiceNow’s website.
ServiceNow Announces Strategic Collaboration Agreement with AWS
Analyst Take: At AWS re:Invent, ServiceNow announced a 5 year SCA with AWS, commencing in early 2024. The SCA will make the ServiceNow Platform and full suite of solutions available as a SaaS offering in the AWS Marketplace. In addition, ServiceNow and AWS agreed to jointly develop and launch industry-specific, AI-powered business applications to host on AWS and list in AWS Marketplace to add intelligence to critical business workflows.
The combination of the two entities will provide significant additional reach for ServiceNow’s workflow platforms, as AWS accounts for roughly a third of the total cloud service market, according to an analysis from Tech Megalodon. The availability of AWS-specific ServiceNow solutions on the AWS marketplace should help to drive adoption of the platform.
A Focus on Deploying Generative AI to Specific Verticals
One of the key strategies being used by ServiceNow to drive adoption of its platform is by creating domain-specific solutions that use generative AI that is trained on data typically used within specific verticals. AWS and ServiceNow will also apply generative AI engineering expertise to new automation applications, focusing initially on use cases in manufacturing, supply chain, call centers, and cloud transformation.
As such, ServiceNow and AWS announced they have developed integrated solutions for customers that are native to AWS:
- AI call center solution: ServiceNow Customer Service Management (CSM) integrated with Amazon Connect allows businesses to quickly stand up advanced contact centers powered by AWS AI technology and ServiceNow workflows to streamline case management. Calls can leverage ServiceNow Now Assist and Amazon AI/machine learning (ML)-powered analytics to detect sentiment, conversation characteristics, and contact themes to provide the agent with relevant knowledge articles and contextual critical information to accelerate resolution time and improve customer satisfaction.
- Cloud transformation solution: This solution establishes a Cloud Center of Excellence (CCOE) with the ServiceNow platform to allow for comprehensive visibility of cloud workloads to drive AIOps, SecOps, and risk outcomes as well as accelerate cloud adoption within the cloud service catalog. The solution identifies workloads to move to AWS based on existing capacity and business use to streamline operations. ServiceNow’s Technology Workflows solutions allow a customer to choose where they would like to host their data and apps and then recommends data transfers and takes over operation of the workflows within the cloud.
ServiceNow and AWS are also working together with a leading automotive manufacturer to innovate using ServiceNow’s AI capabilities and AWS’ AI services to host on AWS and list in AWS Marketplace. According to the two companies, the new solutions include the following:
- Automotive manufacturing solution: This solution remediates actionable pieces of the building, maintenance, and repair data inside of vehicles from start to finish. From issue notification to mechanic instructions, to notification of completion, the application will apply ServiceNow Customer and Creator Workflows on top of AWS data lakes to remediate the actionable pieces of data that come from vehicles and the manufacturing process.
- Supply chain solution: The planned integration of AWS Supply Chain and ServiceNow represents a forward-looking solution that offers customers a streamlined approach for supply chain management. AWS Supply Chain enhances forecasting and operational efficiency with real-time data and ML, while ServiceNow’s service management tools automate tasks and improve service delivery. AWS is also working on new AWS Supply Chain capabilities designed to help customers more easily manage their upstream supply chain, more accurately forecast needed materials and inventory, communicate with suppliers to confirm supply plans and obtain commitments, and get accurate data about key environmental factors.
AWS Marketplace Availability Might Smooth the Purchase Process for AWS Customers
ServiceNow will be available on AWS and in AWS Marketplace to US-based private sector companies in early 2024, along with the new co developed solutions. ServiceNow, like many other SaaS platforms, tends to devote significant resources to marketing and selling its platform and services. By enabling the companies’ co-developed products to be listed and sold through the AWS marketplace, the path to purchase might be smoothed, thanks to the confidence that the platform is specifically designed to work within the AWS ecosystem.
Further, AWS likely has significant data and insights into the processes, data requirements, and challenges faced by its customer organizations within specific verticals. The ability of ServiceNow to utilize these insights to improve workflows and processes likely will lead to more targeted and friction-free user experiences.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Other Insights from The Futurum Group:
ServiceNow Announces Expanded GenAI Tools
ServiceNow Announces AI Lighthouse Program to Fast-Track GenAI Adoption
ServiceNow Revenue Up in Q2 2023 to $2.15 Billion, Beating Estimates
Author Information
Keith Kirkpatrick is Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
