On January 18, ServiceNow announced it has agreed to acquire DxContinuum in an all-cash transaction. ServiceNow’s current market cap is over $13 billion. DxContinuum raised $1.63 million in a single funding round in August 2015. By combining DxContinuum’s machine learning capabilities with ServiceNow’s IT asset management and service support, as well as ServiceNow Ventures’ previous investments in mobility and expense management players like MobiChord, ServiceNow will be better positioned to pursue customer opportunities in the Internet of Things (IoT) and cloud-based environments of the future with a solution that supports proactive service through machine learning and predictive analytics.
ServiceNow is an enterprise solutions management company that provides cloud-based service, operations, and business management solutions across organizational domains including IT, field service, human resources, facilities, and finance. ServiceNow’s solution is aimed at better managing “everything as a service” – the new, highly complex business models that have arisen from the subscription economy. The platform is offered as a single portal for service requests to reduce the back and forth email and spreadsheet communication typical in organizational IT, HR, and service departments. The ServiceNow portal provides an integrated location for users to make all IT requests including asset ordering, helpdesk, and support services, and is scalable due to ServiceNow’s cloud deployment model.
DxContinuum provides cloud-based predictive analytics software that embeds within enterprise CRM and marketing automation environments, utilizing machine learning and natural language processing to analyze sales and marketing data, detect patterns in the data, and generate predictive forecasting models.
The acquisition of DxContinuum will allow ServiceNow to integrate DxContinuum’s machine learning algorithms into its platform, enabling automated and predictive models for processing enterprise service request data, IT asset data, and sales and marketing data. The partnership is especially important as organizations that utilize ServiceNow for automated service management begin to fulfill more complex IT and service requests, including those for IoT connected devices and networks.
Connected devices associated with the Internet of Things generate significant volumes of data and requests independently. With ServiceNow’s acquisition of DxContinuum, machine and manual work requests can now be automatically categorized and routed within ServiceNow’s portal, enabling users to automate the process of prioritizing and resolving requests.
ServiceNow’s platform is based on a customizable, cloud-deployment model, and with the acquisition of DxContinuum, the platform will be better equipped to scale, compute, and store departmental data and service requests generated in IoT environments. The addition of machine learning and predictive capabilities will allow ServiceNow customers to predict and plan for service requests, enabling them to better contextualize and support data generated by IT assets and departmental groups. The combined platform will support proactive service through machine learning and predictive technologies to anticipate requests and identify data relationships more quickly, creating a single, self-learning data environment across marketing, sales, and service data.
The announcement also has implications for the Technology Expense Management (TEM) industry, in particular for players like MobiChord that are built on, and differentiate through, an integration with the ServiceNow platform.
In November 2016, ServiceNow Ventures invested seed funding in MobiChord, a Telecom Service Management company whose subscription-based software offering manages organizations’ telecom and cloud subscription services, assets, and expenses. MobiChord’s solution is highly integrated with ServiceNow for asset, expense, and service management, including real-time management of IoT assets. As TEM vendors are increasingly asked to support IT assets beyond mobile devices and wired networks, including IoT and cloud, ServiceNow’s expanded capabilities in IoT through its acquisition of DxContinuum may allow MobiChord to offer additional machine learning and predictive functionality to its customers, creating a solution that spans from device to cloud.
By broadening its portfolio to include asset management, machine learning, and mobility support, ServiceNow contextualizes marketing, sales, and service data for IoT solutions through a self-learning data environment that utilizes predictive and machine learning technologies.