ServiceNow NOW has recently announced that the company is broadening its Lightstep portfolio with the launch of Lightstep Incident Response.
Lightstep Incident Response will enable developers and site reliability engineers (“SRE”) to monitor, alert, collaborate and respond to incidents such as software bugs, and power or network outage issues, all in one platform.
The launch of Lightstep Incident Response is expected to reduce human errors and speed up response times during the escalation of different incidents.
Developers and SREs will be provided with a single platform that will manage on-call escalation, alert respective groups, analyze the incident and provide proper remedy of the situation while seamlessly collaborating incident management tools to resolve the incidents.
ServiceNow, Inc. Price and Consensus
ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote
Expansion of Lightstep Portfolio Expected to Drive Top Line
Acquisitions have played an important part in ServiceNow’s growth trajectory over the years. ServiceNow acquired Lightstep in 2021 to strengthen the company’s expertise in cloud-native apps for developers and SREs.
ServiceNow plans to expand Lightstep’s capabilities beyond just observation and create a complete platform in its cloud solutions business. The launch of the new product will help Lightstep evolve beyond observability and transform into an end-to-end platform for app development organizations.
Lightstep Incident Response seamlessly integrates with the Now Platform, allowing users to quickly respond to escalations by connecting with all the required services on one platform and connecting incident response to core operations.
The launch of the new product is supposed to help ServiceNow expand its portfolio, which is expected to aid the company in attracting new customers. Given the company’s expanding product portfolio (including emerging products like Incident Response), its multi-product customer base is expected to broaden with a strong renewal rate.
Subscription revenues, as a result of the expanding portfolio, are expected to increase from an estimated $5.5 billion to more than $10 billion in 2024 and $15 billion by 2026. ServiceNow expects more than 2000 customers with annual contract value of more than $1 million by 2024. .
Zacks Rank and Stocks to Consider
ServiceNow currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ServiceNow shares have fallen 23.8% in the year-to-date period, underperforming the Zacks Computers – IT Services industry and the Computer and Technology sector’s decline of 22.3% and 18.9%, respectively.
Here are a few better-ranked stocks worth considering in the broader Computer and Technology Sector:
ASGN ASGN carries a Zacks Rank #2 (Buy).
ASGN shares have fallen 12.5% in the year-to-date period, outperforming the Zacks Computers – IT Services industry and the Computer and Technology sector’s declines of 22.3% and 18.9%, respectively.
CDW CDW carries a Zacks Rank #2 (Buy).
CDW shares have fallen 18.6% in the year-to-date period, outperforming the Zacks Computers – IT Services industry and the Computer and Technology sector’s declines of 22.3% and 18.9%, respectively.
Nutanix NTNX also carries a Zacks Rank #2 (Buy).
Nutanix shares have tumbled 30.5% in the year-to-date period, underperforming the Zacks Computers – IT Services industry and the Computer and Technology sector’s declines of 22.3% and 18.9%, respectively.
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