ServiceNow's EMEA Outlook

A Closer Look at ETR's 2H22 Data on the SaaS Giant

Andrew Licini | ETR Research  

| July 15, 2022

Earlier this week on CNBC, ServiceNow's CEO Bill McDermott mentioned potential lengthening of sales cycles in Europe in addition to potential FX and macro headwinds. In timely fashion, ETR hosted its Macro View webinar earlier today which covered anticipated IT budgets by region (EMEA, N. America, APAC) and industry vertical (Retail/Consumer, Financials/Insurance, etc.) as well as some 'high level' organizational trends including vendor consolidation.

Let's take a look into ETR's 2H'22 spend data for ServiceNow to see how the data compares to management commentary. To view the full JUL22 ServiceNow report, reach out to All corresponding links below will be reserved for existing ETR customers and well as free trial users.  

[1] Within ETR's Macro Survey, EMEA IT spend for '22 began to soften back in Dec'21 but in the current survey has shown signs of stabilizing. The median response across EMEA orgs (N=166) was +6.3% growth for 2022 IT budgets vs. +6.0% back in March 

[2] When breaking out ServiceNow's survey Net Score (i.e., spend velocity) by customer subsample, EMEA is seeing an acceleration while N. America data is also improving (albeit by a smaller margin). By vertical, Financials/Insurance orgs are also strengthening spend plans, while Industrials/Mat/Manu is declining vs one year ago. View Analysis Here 

[3] ServiceNow's improving Net Score among EMEA customers (N=59) is driven by a higher portion of 'Increase' spend plans. 49.5% of this cohort plan to increase spend with ServiceNow in 2H'22 (vs 1H'22) compared to 42.5% in 2H'21 and 48.7% in 2H'20. View Analysis Here. 

[4] We've received a ton of customer commentary on ServiceNow through ETR Insight research calls. You can search the transcript library for all mentions of ServiceNow HERE.

"I'll just say ServiceNow is one of the other 800-pound gorillas. Everybody uses ServiceNow. ServiceNow can do any and everything under the sun at a price; it may not be the best at any and everything under the sun, but it's pretty good at everything that it does"

- EVP Technology Services, Large Software Enterprise, June 2022 | View Full Transcript 

[5] ETR Connect has several ServiceNow experts available for 1:1 phone consultations. Since the majority of these experts also participate in ETR surveys, we can target for those who are, for example, increasing spend on ServiceNow and simultaneously decreasing spend on SAP or IBM. If you are interested in launching a project on Connect please respond to this email or reach out to the team directly at  

To view the full JUL22 ServiceNow report, reach out to or start your own Free Trial today. 

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