Service-Now CEO Fred Luddy Sees a Clear Path to $1 Billion in Annual Revenue

Fred Luddy has been in the technology industry since 1973, but as a longtime programmer for mainframe computers and enterprise systems, he says he was still surprised by the advent of Web-based computing.

“I didn’t see this whole notion of software over the Internet, of on-demand, software-as-a-service in the cloud,” says Luddy, who now describes software-as-a-service (SaaS) “as a thing that is just steeped in common sense.”

These days Luddy views SaaS as a major evolving trend, and—the company he founded in November 2003—as an enormous beneficiary. “I don’t think it’s known how cloud computing will be leveraged by large organizations,” Luddy says. “But it’s top of mind with almost every large organization I’ve visited in the last 20 months.”

Fred Luddy

Fred Luddy

Luddy says he founded Service-now to meet the same business needs that were once served by Peregrine Systems, the San Diego-based enterprise software provider that imploded in a financial accounting scandal in 2002. Luddy, who was Peregrine’s chief technology officer, says he left Peregrine in 2002 and began developing the software for Service-now the following year.

Like Peregrine, Service-now’s software helps big companies and other organizations manage their far-flung IT operations, including their “help desk” functions. Instead of installing its software on a customer’s intranet, however, hosts the software on its own servers, enabling customers to outsource the technology and pay a flat monthly subscription fee for the service. In the last six months, Luddy says Service-now has added 75 new customers, including such major companies as McDonalds, Pepsi, and Coca-Cola. Luddy says the economic downturn also proved to be a good thing for Service-now, because companies turned to … Next Page »

Single PageCurrently on Page: 1 2 3 4

Bruce V. Bigelow was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Follow @bvbigelow

Trending on Xconomy

By posting a comment, you agree to our terms and conditions.

4 responses to “Service-Now CEO Fred Luddy Sees a Clear Path to $1 Billion in Annual Revenue”

  1. Congratulations to for setting the trend in SaaS for ITSM tools and for the success they have had in the past few years.

    We at also look at as a trendsetter. Having recently released a beta of cloud based SaaS IT Service Desk from tingbasoft, we are definately looking forward to this ongoing trend towards SaaS.

  2. Josh Marlatt says:

    I was a big fan of service-now before they lost focus. Nowadays, they spend their time slinging mud at BMC and HP – calling them “legacy” – while at the same time basically carbon-copying all the features of Remedy. Now that Service Now is selling a shadow of Remedy, I’ll just buy Remedy and get the real thing.

    Luddy, I was with you, really thought you would innovate. With all this talk of IPO’s and being the next Qualcomm, it’s clear you just want to be another BMC or HP. And Peregrine? Really? Luddy’s proud of that?

  3. Raj says:

    Yes it is about doing, learning and getter better at what you do. I am really surprised at two things.

    First: What a vision you have Mr Luddy. No doubt you have found that niche in the market which has been missed by many of them out there. Good on you for working towards achieving it.

    Second: There are just two comments on this blog even after 2 years of publishing it. Something seriously wrong out here. I cannot believe myself. Blog has been written very well. Yes I can some people have shared it but don’t we even have few minutes to appreciate something like this.

    I would love to hear more like this. Where somebody dreams about something and then also walks to achieve it.