to be more than 30% this year. More than 500 com-
panies spend at least $1 million annually on Ser-
vice Now’s products.
What are they getting? A simple, lexible work-
low that allows employees to easily manage their
requests from IT. Much as Salesforce enables a com-
pany to manage its external clients by keeping a re-
cord of all contacts and interactions (and, increas-
ingly, by telling sales reps what their next step
should be), Ser vice Now promises an internal sys-
tem to meet the needs of employees, beating out
legacy IT service-management sotware players like
BMC Sotware, Hewlett Packard Enterprise, Cher-
well Sotware and CA Technologies to claim half of
that market.
he special sauce—the thing that gives Service-
Now the fat “innovation premium” that drives our
ranking—comes from two product traits with the
potential to scale: simplicity and customizability.
ServiceNow’s IT tools don’t require the IT depart-
ment to set them up. Once running, they ofer a sin-
gle collection center for requests, data points and
checklists, all of which can in turn be analyzed by
algorithms to predict needs, lag concerns and mea-
sure eiciency. Even in a business where renewal
rates are commonly at least 90%, Ser vice Now stands
out at 98%. “hey have cemented themselves as the
number one IT partner for the biggest companies in
the world, and they don’t get ired,” says Alex Zukin,
an analyst at Piper Jafray. All those traits point to a
future beyond just IT services.
But Luddy’s triumph also comes from innova-
tion in management: speciically, the rare found-
er trait of knowing when it’s time to step aside and
let someone else run your baby. Luddy transitioned
from CEO to chief product oicer in 2011. “Fred
has been a wonderful counselor, coach, friend, aswell as someone who chal lenges us to constant-
ly improve our user experience, constantly make
sure our products are easier and easier to use,” says
the current CEO, John Donahoe, who previously
served as CEO of eBay.Ego restraint pays, at least on our list, as
Service Now came out ahead of Facebook, Tesla
and a slew of other founder-centric tech giants
launched in the same time period. In lieu of brash-
ness, Luddy pushes wisdom, having started Servi-
ceNow at the ripe old age (by tech standards) of 50.
Okay, 49 years and 346 days, beating his big birth-
day by two weeks. “I couldn’t wait,” he says, “be-
cause there was something psychologically that
said I couldn’t start a company at 50.” If anything,
Luddy’s saga proves that sentiment wrong, with an
innovation ingredient that’s oten undervalued in
Silicon Valley: experience.THE ROOTS OF SERVICENOW’S spectacular
rise can be found in the ashes of an IT sotware-
management company called Peregrine Systems,
which at one point was valued at more than $4 bil-
lion. Over 13 years, Luddy, the CTO, provided the
company’s engine, but it turned out that the growth
came from more specious sources. Peregrine em-
ployed several fraudulent methods to inlate its rev-
enue numbers and stock price over a two-year peri-
od. In 2002 this former high-lier suddenly iled for
bankruptcy, and several top executives, including
the CEO, went to prison. Luddy wasn’t charged with
any wrongdoing in the criminal case, and his $35
million stake vanished overnight.
“I really hated my job,” Luddy says, with the per-
spective that time and a billion dollars will give
you. “Losing that money was absolutely the best
thing that could have happened.” Rather than
mope, Luddy decided to take what he hated—IT
departments too diicult for the common work-
er to deal with—and try to make back that lost
money and then some. Soon ater Luddy’s fortune
evaporated, he hunkered down in his San Diego
home and started work on the
product that would become
ServiceNow.
Such can-do optimism was
a product of New Castle, In-
diana, a medium-size Rust
Belt town near Indianapo-
lis. His father was an accoun-
tant; his mother, a Catholic-
school teacher. he young
Luddy was, by his own ac-
count, an indiferent student, but he was fascinated
by machines and took apart everything he could
get his hands on. At 17, while working as a gofer at
American Standard, he saw an HP computer being
installed in the oice and begged to use it. WithFORBES ASIA
SERVICENOWSAUDI ARABIAN MINING SU 1373S
SAUDI BASIC INDUSTRIES SU 120T
SAUDI BRITISH BANK SU 894S
SAUDI ELECTRICITY SU 355S
SAUDI INVESTMENT BANK SU 1983T
SAUDI TELECOM SU 396T
SBA COMMUNICATIONS US 1876S
SBERBANK RU 47 S
SBI (DIVERSIFIED FINANCIALS) JA 1575S
SCENTRE AU 802T
SCHAEFFLER GE 848 T
SCHINDLER SZ 913T
SCHLUMBERGER US 520 T
SCHNEIDER ELECTRIC FR 256T
SCHRODERS UK 1034 S
SCOR FR 1035 T
SDIC ESSENCE CN 1653T
SDIC POWER CN 1353T
SEAGATE TECHNOLOGY IR 968S
SEARS US 1747T
SEB AB SW 433T
SEB SA FR 1631T
SECOM (BUSINESS SVCS) JA 902T
SECURITAS SW 1989 T
SEGRO UK 1505 O
SEI INVESTMENTS US 1996O
SEIKO EPSON JA 1887T
SEKISUI CHEMICAL JA 1397T
SEKISUI HOUSE JA 670T
SEMBCORP INDUSTRIES SI 1971O
SEMPRA ENERGY US 768T
SENSHU IKEDA JA 1772T
SERVICENOW US 1640 S
SES LU 1900 T
SEVEN & I JA 263S
SEVERSTAL RU 982 S
SGS SZ 1160 T
SHAANXI COAL INDUSTRY CN 855S
SHANDONG CHENMING PAPER CN 1775O
SHANDONG GOLD MINING CN 1898T
SHANGHAI COMM & SAV BANK TA 1525T
SHANGHAI CONSTRUCTION CN 1068S
SHANGHAI ELECTRIC CN 943S
SHANGHAI FOSUN PHARMA CN 1662S
SHANGHAI GANGLIAN E-COMM CN 1960O
SHANGHAI INTL AIRPORT CN 1471S
SHANGHAI INTL PORT CN 760S
SHANGHAI LUJIANZI CN 1931T
SHANGHAI PHARMACEUTICALS CN 896S
SHANGHAI PUDONG DEV CN 70T
SHANXI TAIGANG STAINLESS CN 1332S
SHARP JA 783 S
SHENGJING BANK CN 881T
SHENWAN HONGYUAN CN 899T
SHENZHEN INVESTMENT HK 1852O
SHENZHEN OVERSEAS CN 1002S
SHENZHOU INTL CN 1472S
SHERWIN-WILLIAMS US 498 S
SHIGA BANK JA 1727S
SHIMAO PROPERTY HK 747S
SHIMIZU JA 1008 T
SHIN KONG FINANCIAL TA 1005S
SHIN-ETSU CHEMICAL JA 434S
SHINHAN FINANCIAL KO 273T
SHINSEI BANK JA 1365T
SHIONOGI JA 1280 T
SHIRE IR 246 S
SHISEIDO JA 1225 S
SHIZUOKA BANK JA 1348S
SHOPRITE SA 1325S
SHOWA SHELL SEKIYU JA 1414S
SIAM CEMENT TH 654T
SIAM COMMERCIAL BANK TH 623T
SICHUAN CHANGHONG ELEC CN 1938O
SIEMENS GE 51 T
SIGNATURE BANK US 1710T
SIGNET JEWELERS BU 1973T
SIKA SZ 1131 S
SIME DARBY MA 1535T
SIME DARBY PLANTATION MA 1624O
SIMON PROPERTY US 597T
SINGAPORE AIRLINES SI 1119T
SINGTEL SI 354 T
SINO BIOPHARMACEUTICAL HK 1828O
SINO LAND HK 1472S
SINOHYDRO CN 381T
SINO-OCEAN LAND CN 1147S
SINOPAC FINANCIAL TA 1715T
SINOPEC CN 27 T
SINOPHARM CN 651T
SINOTRANS CN 1985O
SINOTRUK HONG KONG CN 1862O
SISTEMA RU 1482 T
SK (IT SOFTWARE) KO 281S
SK HYNIX (SEMICONDUCTORS) KO 200S
SK INNOVATION (OIL & GAS) KO 417S
SK NETWORKS (TRADING COS) KO 1802T
SK TELECOM KO 476S
SKANSKA SW 1356 T
SKF SW 1227S
SKYWORKS SOLUTIONS US 1290T
SM INVESTMENTS PH 883T
SMC (CAPITAL GOODS) JA 986S
SMITH & NEPHEW UK 1334T
SMURFIT KAPPA IR 1357S
SNAM IT 964 T
SNAP-ON US 1953 T
SOCIÉTÉ GÉNÉRALE FR 161T
SODEXO FR 699 T
SOFTBANK JA 39 T
S-OIL KO 825 S
SOJITZ JA 1086 S
SOLVAY BE 708 T
SOMPO JA 331 T
SONY JA 86 S
GLOBAL 2OOO
56 | FORBES ASIA JUNE 2018“I COULDN’T WAIT, BECAUSE
THERE WAS SOMETHING
PSYCHOLOGICALLY THAT
SAID I COULDN’T START
A COMPANY AT 50.”