Are you getting the most out of your ServiceNow investment?
As more organizations rely on ServiceNow to optimize their operations, understanding its complex licensing model becomes essential. However, navigating this model can be challenging, as it requires aligning license usage with business needs while managing costs effectively. Choosing the right package and overseeing licensing requires ongoing evaluation and strategic planning.
This article breaks down key elements of ServiceNow’s licensing, identifies common pitfalls and shares expert strategies to enhance your investment value. As an authorized ServiceNow reseller, zeb offers the guidance you need to make smart, cost-effective licensing decisions that deliver measurable business benefits over time.
Key components of ServiceNow licensing
Understanding how ServiceNow structures its licenses is the first step in managing your investment effectively. Here’s what you need to know:
1. Pricing and packaging overview
- Contract Stability: Any changes in pricing and packaging do not impact existing contracts. Your current terms, SKUs, and pricing will remain valid until the contract expires.
- Regular Updates: ServiceNow typically rolls out four pricing and packaging updates each fiscal year, consisting of two-family releases and two store releases. Staying up to date with these updates is important for effective strategic planning.
2. Licensing framework
- User Types:
- Unrestricted Users: This subscription allows your organization to purchase licenses based on active users in the system.
- Per-User: Here, users are limited to specific applications as per business requirements.
- Subscription Units (SUs): Licensing is generally based on subscription units, which are calculated using factors such as the number of servers and devices.
3. Packaging options
- Standard, Professional, and Enterprise Packages: Organizations should select the package that fits their user count and needs. The Enterprise package suits long-term ServiceNow users, while companies new to ServiceNow often opt for the Standard or Professional packages based on their initial requirements.
- Add-Ons: Additional functionalities can be enabled through add-ons like Process Mining or Digital End-User Experience. These should be carefully evaluated to ensure they meet your business goals and provide meaningful value.
But, even with a well-defined structure, licensing missteps are common. A closer look at these challenges can help you stay ahead.
Common pitfalls in ServiceNow licensing
Effective management of ServiceNow licenses requires awareness of common challenges that can lead to inefficiencies and increased expenses. Below are the primary pitfalls organizations often face:
- Over-Purchasing or Under-Utilizing: Paying for more licenses than needed or not fully using existing ones causes unnecessary expenses, so regular reviews ensure you only pay for what you need.
- Choosing the Wrong Package: Selecting a package without assessing your business needs, like opting for the Enterprise plan unnecessarily, can lead to unnecessary costs for features that go unused.
Expert tips for maximizing value
Once you understand the structure and pitfalls, the next step is execution. Use these strategies to enhance your ServiceNow investment:
Assess Your Organization’s Needs
Evaluate your actual user requirements and feature priorities before choosing a licensing model. This helps avoid overspending and ensures your licensing aligns with real-world usage.
Leverage Bundled Packages
Explore bundled ServiceNow offerings that combine key modules at a discounted rate. Choosing the right bundles aligned with your goals can improve efficiency and lower overall costs.
Review Usage Regularly
Conduct regular audits to identify unused features or redundant licenses. This ensures optimal resource allocation and helps focus investments on high-impact areas.
Collaborate with Experts
Managing ServiceNow licensing often involves navigating a complex structure. Partnering with zeb, an authorized ServiceNow expert, ensures tailored guidance, environment assessment, and optimized licensing strategies aligned with your business needs.
Final thoughts
Maximizing the value of your ServiceNow investment requires thoughtful planning and a clear understanding of its licensing structure. By avoiding common challenges and applying expert strategies, your company can fully harness ServiceNow’s capabilities to improve operations and achieve meaningful cost savings.
At zeb, we are an authorized ServiceNow license reseller serving areas of North America. We specialize in guiding organizations through the complexities of ServiceNow licensing, helping you select the right package, purchase or renew licenses, and equip your team with effective training. We’re here to support your success every step of the way.
Contact zeb today to get personalized licensing advice and gain the full value of your ServiceNow investment.
+1 732 737 9188
sales@zeb.co