The News: ServiceNow acquired DotWalk, a company that automates testing and upgrades for the Now platform, with the hope of making it easier for ServiceNow customers to stay on top of technology maintenance. This will free up developers to work on higher value tasks. The acquisition was complete last week. Read the full press release here.
Analyst Take: ServiceNow’s acquisition of DotWalk is a move that will greatly benefit ServiceNow’s customer base. We are at a precipice in the digital transformation. Organizations are using more software applications than ever before to conduct business. However, these applications require upgrades and maintenance continuously to keep up with the agility needed to operate in today’s business world. Leading to conflicting priorities and lagging results for developers and tech talent, which are in short supply as companies in every industry are prioritizing their investments in software and digital transformation to keep up with shifting market forces and customer requirements.
That’s why I see this acquisition as a promising move for the future of ServiceNow and its growing customer base. DotWalk, which runs natively on ServiceNow’s platform, automates upgrades and testing of ServiceNow applications. DotWalk’s AI-powered regression testing determines the number of tests and steps to take for each application. And it goes beyond the detail and accuracy that humans can achieve — which is an incredible feat.
DotWalk’s integration to the ServiceNow platform will allow developers to focus on tasks that can add more value to the business rather than performing time-consuming maintenance. What’s more? DotWalk’s automation can improve overall application performance enabling the speed and agility that customers need to drive digital transformation initiatives and achieve their goals.
In our current business climate, where speed and agility can make the difference between success and failure, having the ability to continuously deliver application upgrades will ultimately drive more business value than companies likely realize. Time is money –an old saying that has never lost its meaning.
This move shouldn’t be a surprise from ServiceNow, whose mission statement starts with, “…changing the way people work.” The company has been making several strategic acquisitions in the last few years to do just that. They are also still riding high on their better-than-expected Q3 earnings report—part of what drove my assessment that ServiceNow is well on its way to mega cap status in the coming 18-24 months. Having said that, I’m sure that this acquisition is just one of likely many more strategic moves to come from ServiceNow that will build its platform, architecture, services, and workflows that are needed for the evolution of the Now Platform and enterprise IT needs to support workforce of the future.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
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