"ServiceNow has spent at least $12 billion on acquisitions and investments this year. The biggest deal ever was last week's $7.75 billion acquisition of cybersecurity startup Armis. Investors fear that the software company is relying too heavily on deals for growth, especially since CEO Bill McDermott built a reputation in this area during his time at SAP. In any case, the acquisition of Armis fits in with what ServiceNow offers."
"Matthew Hedberg, an analyst at RBC Capital Markets, suggests that the acquisition is being used to boost slowing revenue growth. One of the bogeymen for ServiceNow and other parties is that customers can use AI to build the functionality of enterprise applications themselves. We are very skeptical about this ourselves, but Klarna caused unrest by stating that it had already succeeded in pulling Salesforce out of its own IT stack."
ServiceNow spent at least $12 billion on acquisitions and investments this year, led by the $7.75 billion purchase of Armis and the $2.8 billion acquisition of Moveworks. Investors worry that ServiceNow is relying too heavily on deals to sustain growth, and the stock fell sharply after the Armis announcement. Analysts suggest the acquisition may be intended to boost slowing revenue. Some fear that customers could use AI to build enterprise-app functionality, threatening incumbents. Klarna claimed it removed Salesforce from its IT stack but later said other firms were unlikely to follow quickly. Migrations between enterprise vendors often take years.
Read at Techzine Global
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