Stories
AI is Killing the Per-Seat Software Model Says ServiceNow Executive
- •ServiceNow reports that 50% of its net-new revenue over the past year was non-seat-based, driven by a shift toward usage and outcome pricing.
- •Amit Zavery stated that enterprise software pricing is moving toward hybrid models that factor in consumption, data transfer, and service-level agreements.
- •ServiceNow's AI capabilities generated $600 million in value for customers last year, with projections to reach $1 billion this year.
- •Zavery argues that frontier AI models lack a distinct moat because they act as interchangeable intelligence layers supported by deep enterprise context and workflows.
- •India is currently ServiceNow's fastest-growing market in the Asia Pacific region and is poised to become one of its top three global markets.
Key Questions Answered
Artificial intelligence is driving ServiceNow's customers away from traditional per-seat licensing toward usage- and outcome-based pricing models. Amit Zavery noted that 50% of the company's net-new revenue over the past year was non-seat-based, with customers increasingly paying based on consumption, data transfer, service-level agreements, and the value delivered.
ServiceNow believes large language models serve as an interchangeable intelligence layer rather than a standalone moat because they only form a small part of the company's overall technology. ServiceNow has spent years accumulating deep domain knowledge, business context, and enterprise capabilities—such as managing 100 billion workflows and 8 trillion transactions annually—that cannot simply be replicated by a frontier model.
The AI transition is speeding up implementation work for systems integrators while shifting demand toward business re-engineering, AI deployment, and value extraction. ServiceNow views India as its fastest-growing market in Asia Pacific, expecting it to become a top-three global market soon as local teams contribute to product development.
