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In this article, we cover findings from its Top 10 IT Service Management Software Vendors report published in December 2021, focusing on Atlassian and ServiceNow.
Jira Service Management vs ServiceNow's Customer base
Before we look at one of the most interesting findings in the report – profits, it’s important to take note of the customer base of each organisation. Overall, Atlassian has 226,000 customers, most of which are Jira Software users, with 35,000 having Jira Service Management (JSM). In Q2 of 2022, Atlassian added a further 10,000 customers. ServiceNow has just 6,900.
ITSM: The return on investment
The report published by Apps Run The World found that Atlassian’s ITSM offering, Jira Service Management, boosted its market share significantly, with 18.5% of all ITSM revenue coming from the application.
In terms of revenue from ITSM, ServiceNow made $2.5 billion, making the average ServiceNow customer spend around $362,318 – a rise from the equivalent figure of $273,000 previously calculated by Atlassian. This shows that since then, transactions with ServiceNow have increased significantly. On the contrary, when performing the same calculation for Jira Service Management customers, the spend was $33,428.
With Forrester’s latest Enterprise Service Management report placing Atlassian a ‘Leader’ with a perfect score for ‘Strategy’, ServiceNow customers should be questioning whether the 166% increase in spending compared to JSM customers is worth it in terms of adding value to their business. Furthermore, with both Gartner and UpGuard scoring JSM higher than ServiceNow, JSM customers are assured they’re getting value for their money.
While JSM’s average price is slightly higher than the previous report (up from $19,000), Forrester has since changed it from being a ‘Strong Performer’ to a ‘Leader’ based on gains made to its current offering, thus justifying the increase.
In the past, ServiceNow has been better suited to the needs of large customers, but Atlassian is supporting the SDLC and Agile user population for many of those same organisations.
In two years, the ITSM market has boomed in value from $4.1bn to $6.3bn. As organisations spend more on ITSM, they should be confident that they are getting as much value as possible out of their investment.
For the same or greater functionality, Atlassian offers a top-quality ITSM solution at a fraction of the cost.
Despite the impressive capabilities of ServiceNow, there are several reasons why Jira Service Management is a more effective ITSM solution, aside from being better value for money.
Published: Feb 22, 2022
Updated: Jun 22, 2023
