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ServiceNow are pushing customers off SaaS – are other industries doing similar?

1 points by rorychatt ↗ HN
I'm hearing that ServiceNow are pushing enterprise towards self-hosted for their next renewals.

I get the impression that the main driver is an inability to service the necessary compute to deal with the avalanche of agents hitting their APIs.

Kind of an interesting turn given that the main driver for many large enterprise to get off Remedy was the promise of removing multi-million dollar upgrade cycles because "dw it's saas, you cant customise and screw it up".

Are other's seeing similar swings in enterprise software renegotiations?

5 comments

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nicholasking
Big move to GLPI happening because of this.
rorychatt
Maybe.

GLPI wouldn't get through commercial governance for most of the orgs I've worked, let alone floating the re-engineering business case to replace all the integrations that tend to amass over a decade.

SME market might thin out a bit, but I reakon we're a long way from their major customers moving

Luucas40
We've seen a switch from subscriptions to results-based pricing as AI usage would be eating all of the margin (intercom has been one of the first widely successful examples).

This is another possibility, but the amount of complexity induced for customers + staffing costs (comps for ServiceNow specialists are already extremely high) will probably push people to just buy AI access on top of the subscription instead.