ServiceNow Pricing Guide: Custom Quotes for Tailored IT Solutions

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ServiceNow Pricing Guide: Custom Quotes for Tailored IT Solutions
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ServiceNow doesn’t have standard pricing. It negotiates on a case-by-case basis, with an honorary NDA, not to disclose the prices. However, any business planning to use ServiceNow ITSM would be interested in at least estimating its costs. 

This post will discuss the fee structure and the factors that comprise ServiceNow pricing. This guide will help you understand the pricing structure and get an estimate based on your organizational needs.

ServiceNow Pricing: The Basics

ServiceNow pricing has three essential components: 

  1. Consultation fees: Before you implement ServiceNow, a consultant from their team will analyze your needs and send you a custom pricing quote. This lets you choose from different packages and licenses (discussed in the next section). This consultation service is chargeable and added to the implementation cost. 
  2. Installation and set-up fees: By this stage, you have decided on the packages, integrations, and add-ons, if any. ServiceNow charges implementation costs for configurations, technical support, setting admin and access rights, etc., which becomes one-third of your total cost. Also, you will be charged separately if you need additional training. This can be a deal breaker for many companies, provided ServiceNow isn’t the most intuitive tool and has a steep learning curve. 
  3. Annual maintenance fees: In addition to the subscription fee, ServiceNow charges an annual maintenance fee starting from $200. Also, they separately charge for software upgrades and support services. 

With these components combined, the most basic ServiceNow annual package will cost you $10,000. However, this number increases quickly with each additional integration, customization, training, user, and support service. 

ServiceNow Pricing: Factors Influencing the Costs

ServiceNow pricing is case-by-case, meaning a custom quote for each customer. This varies depending on—package, licensing, and other company-specific factors.  

ServiceNow Packages

ServiceNow has four packages curated for different business sizes.

ServiceNow Licensing Model

ServiceNow offers four different types of licensing based on the user role. They are the critical factor in deciding the cost, depending upon the type and number of licenses.

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Other Company-Specific Factors

In addition to the package and licenses, the following factors impact your implementation costs: 

  1. Industry: Companies in a highly regulated industry will face higher costs. Regulations demand more customization and integration to meet industry standards, significantly impacting the cost. For instance, industries such as healthcare or finance have stringent compliance requirements. In contrast, industries like retail have fewer regulatory constraints.
  2. Service type: The use case of ServiceNow, whether for human resources or IT, impacts pricing. For instance, if you use ServiceNow for incident management, it requires workflows for managing IT incidents. Conversely, implementing it for change management demands more intricate customization. Similarly, deploying it for asset management means configuring the platform to track and manage IT assets throughout their lifecycle. Each service type has unique customization and integration needs, implying varying costs.
  3. Geographical location: Global companies have better choices than ServiceNow due to varying currency rates. Deploying ServiceNow in regions with stronger currencies results in lower implementation costs when converting prices, whereas in regions with weaker currencies, exchange rate fluctuations lead to higher costs. Additionally, local taxes and regulations influence pricing across different locations. 

ServiceNow Different Pricing Models

ServiceNow offers two pricing models:

  1. Subscription-based pricing: This is the standard monthly/ annual subscription fee charged per user/ module. They also charge extra for software upgrades, maintenance, and support services. 
  2. Perpetual pricing: This is for on-premise implementations charging a one-time license fee. In addition, they charge an annual maintenance and support fee, which is a percentage of the initial licensing fee. 

ServiceNow Pricing Discounts

ServiceNow offers excellent discounts on bulk packages, up to 70%.

However, companies reported that once these initial discounts are exhausted, ServiceNow becomes extremely expensive for small or large enterprise businesses. This can be a limitation, especially for growing or agile companies, since the cost increases with each user and customization. 

ServiceNow Alternatives

ServiceNow is indeed valued for its effectiveness as an ITSM tool. However, frequent updates and complex learning curves present challenges for growing companies. Moreover, the lengthy implementation and increasing cost for each integration/ customization must align with agile methodologies. So, while ServiceNow offers various integration capabilities and other features, it comes at a cost. 

In contrast, offers a clear and scalable alternative. Pricing begins at $3 per employee per month for companies with 1500 employees, ensuring affordability. With transparent costs and free product upgrades, businesses benefit from clarity and predictability. Unlike ServiceNow's negotiable pricing, simplifies the process without complex fee structures.

Tailored for growing enterprises, features an intuitive interface with conversational AI, minimizing the learning curve for faster adoption. Overall, it is optimal for large enterprises seeking effective and economical ITSM solutions.

If you want to explore more alternatives, check out our top picks for enterprise ITSM tools


1. How much does ServiceNow automation cost?

ServiceNow automation, specifically for test automation, is priced at $1,200 per user annually and billed annually. This cost includes automated testing processes within the platform to streamline workflows.

2. Is ServiceNow an ITSM tool?

Yes, ServiceNow is an Information Technology Service Management (ITSM) tool that provides a range of functionalities such as incident management, change management, asset management, and service catalog management.

3. Is ServiceNow free or paid?

ServiceNow is a paid tool without a free trial or freemium model. Any consultation services are also subject to charges.

4. Is ServiceNow similar to Jira?

ServiceNow and Jira differ in focus and complexity. ServiceNow offers ITSM and development tools suitable for enterprise-level needs, whereas Jira is more agile and straightforward, with fewer sophisticated functionalities. ServiceNow prioritizes detail-oriented change management, while Jira Service Management offers basic functionality with agile adaptability.

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