A recent report published by MarketsandMarkets expects the IT Service Management (ITSM) market to grow from $4.41 billion in 2016 to $8.78 billion by 2021, which translates to an annualized growth rate of nearly 15% over the next five years. The growth in the industry is driven by the continuing adoption of mobile and Bring Your Own Device (BYOD) policies across organizations. But that is not the only cloud-based enterprise service that is expanding. Another report by by Gartner estimates the global Public Cloud Services market to grow from $209 billion last year to $383.5 billion by the year 2020 with enterprise offerings of human capital management (NASDAQ:HCM), customer relationship management (NYSE:CRM) and the financial application services becoming the second largest line of business. Gartner expects these services to grow from $38.6 billion last year to $75.7 billion by 2020.
ServiceNow's Financials
ITSM provider ServiceNow (NYSE:NOW) recently announced impressive second quarter results. Revenues for the second quarter grew an impressive 40% over the year to $478.5 million, ahead of the market's expectations of $463 million. Loss per share of $0.25 was significantly higher than the Street's forecast loss of $0.18 for the quarter. Adjusted earnings of $0.22 per share were better than the market's projected EPS of $0.20.
