When evaluating whether to migrate to HP Service Manager or a new service management tool such as Service-now.com, it is vital that the Total Cost of Ownership (TCO) of all options is fully understood.

To help you create an in-depth comparison that captures all costs involved, we have assembled a model that can help you identify and compare the total cost of ownership between HP Service Manager on premise deployment and Service-now.com modern Software-as-a-Service.

The TCO model is an objective analysis based on a 300 person IT organization with 10,000 supported employees. To provide the most accurate comparison, the analysis identifies four main TCO categories across a six-year timeframe:

• Licensing, annual software maintenance and support costs
• Consulting costs including external, contracted resources
• Internal resources to manage and administer system
• Infrastructure costs including hardware and software licenses
  
  

Service-now.com SaaS provides many financial advantages compared to an on premise deployment of HP Service Manager. In more than forty prospect studies, Service-now.com total cost of ownership resulted in a 67% reduction in total ITSM costs over a six-year period. The analysis assumed the following: Implementation of incident, problem, change, CMDB, service catalog, service request employee self-help “Upgrade” in years one, three and six Fine-tuning, maintenance in years two, four and six Hardware refresh in years one, three and six $10,000 / man week for fully burdened consultants $2,400 / man week for fully burdened internal resources

Unlike HP, the Service-now.com modern SaaS subscription license includes access and support to all Service-now.com applications; and automated, non-disruptive upgrades that deliver new functionality three times a year. We do not charge license fees for employee self-help or the right to be on the current version of the software. Our subscription model and approach to service value can result in a 55% reduction in licensing, software maintenance and support fees.


Assumptions: Flat 35% discount off HP Service Manager list price and 18% annual maintenance fees.

Service-now.com removes the dependency on high-cost consulting services for implementation and ongoing maintenance. Service-now.com deployment costs average 40% to 60% of the first year subscription fee. This is the inverse of typical client server deployments that have the tendency to cost more than twice as much as the license cost.

Service-now.com core application implementations are executed in a matter of days, a fraction of the time HP is quoting for a base upgrade. While HP is busy configuring and optimizing a base system for their customer’s infrastructure, Service-now.com customers are well into configuring and customizing business rules and UI design. The result is an average Service-now.com deployment of incident, problem, change and CMDB within twelve weeks.

Service-now.com provides an easy-to-use interface that empowers service managers and system administrators to modify business rules, personalize UI look and feel and develop custom applications without the use of high-dollar consultants. Our lightweight approach to implementation and system ease of use can lead to a 92% reduction in consulting costs.

Assumptions: HP Service Manager implementation and upgrade in years one, three and six at $10,000 per man week for fully burdened consultant. Service-now.com deployment set at 40% of year one annual subscription fee.




Service-now.com offloads application, infrastructure management and upgrade responsibilities, allowing IT resources to focus on initiatives that drive the business forward. HP Service Manager requires highly paid, skilled resources for system, application server and database administration. With Service-now.com, system administrators often allocate eight weeks per year to managing and extending the application while application server and database server administrator resources are assigned to work on strategic projects that move the business forward.


Assumptions: Service-now.com administrators dedicate an average of eight weeks to customizing and extending the application, while HP Service Manager requires forty-two man weeks for system administration and eleven weeks for application server and database server administration each.  Internal resource costs calculated at $2,400 fully burdened per week.




Service-now.com SaaS eliminates all infrastructure costs including application server, database server licenses, RDBMS licenses and hardware. We run your instance in world-class SAS 70 Type II data centers and offer complete redundancy to ensure your system is available and data is secure.   When calculating HP Service Manager infrastructure costs, be sure to consider the potential use of multiple sets of infrastructure components as not all applications leverage common technology.




Assumptions: Hardware refresh every three years at a cost of $5,000, application server costs set at $1,000, database server equaling $1,000 and RDBMS licenses at $1,000.



 
                                   

In our experience, organizations typically contain many variables that may alter TCO results. If you are interested in a customized TCO assessment, please submit a request here.