ServiceNow Licensing Optimisation for Digital Transformation & AI Adoption
Case Study
Client Profile
A European financial services organisation with ~6,500 employees, operating multiple ServiceNow workflows (ITSM, ITOM, HRSD, CSM, and ITBM). The company was preparing for a platform modernisation initiative and exploring ServiceNow’s new AI capabilities.
The Challenge
The client faced several pressures ahead of their renewal:
- Legacy ITBM modules being retired, requiring migration to new, higher-cost SKUs
- Desire to start using ServiceNow AI / GenAI features, which required an upgrade to a higher platform tiers
- Complex proposals from ServiceNow with unclear pricing and metric changes
- Lack of visibility into role assignments, unused modules, and actual consumption
- Anticipated renewal uplift far above budget, with limited internal data to challenge it
- Risk of both over-licensing and compliance exposure
Their priority:
✔ Navigate the ITBM → new SKU transition
✔ Understand the real cost of upgrading to PRO
✔ Avoid unnecessary cost increases
✔ Build a defensible negotiation position
My Approach
1. ServiceNow License Health Check
I performed a vendor-informed, end-to-end analysis:
- Full mapping of legacy ITBM entitlements to new SKU equivalent
- Side-by-side comparison of “REQUIRED vs OPTIONAL” upgrades
- Consumption analysis across ITSM, ITOM, HRSD, CSM, and ITBM
- Identification of unused/underadopted modules
- Review of PRO tier requirement for AI features
- Role and metric review (Fulfillers, Subscription Units and other usage metrics)
2. AI & PRO Tier Impact Assessment
To support their AI strategy, we:
- Highlighted which AI features required PRO vs Enterprise tiers
- Modelled cost growth across 1–3 years
- Identified optimisation opportunities to offset the cost of upgrading
- Ensured no double-counting of AI-related SKUs
3. Renewal Strategy & Negotiation Support
I provided:
- Renewal diagnostic and benchmark-backed price validation
- Full review of SKU changes, ITBM replacements, and PRO tier pricing
- Negotiation strategy, vendor BATNA, and scenario options
- Support in all ServiceNow calls and proposal iterations
Key Results
✔ €812K in avoided overspend by rationalising modules and challenging SKU migrations
✔ 28% reduction in the proposed uplift associated with PRO tier
✔ Clear roadmap for ITBM → new SKU transition
✔ Optimised module mix aligned to real usage and AI goals
✔ Full transparency into cost impacts over 3 years
✔ Audit-ready entitlement & consumption position
Deliverables Provided
- Migration roadmap (ITBM → new SKUs)
- AI/PRO tier upgrade cost impact report
- Savings & optimisation plan
- Detailed entitlement vs consumption workbook
- Benchmark-backed price validation
- Negotiation preparation brief
- Executive summary (PDF)
We wanted to modernise and start using ServiceNow’s AI, but the proposed upgrade costs were overwhelming. Licensecrafts helped us separate what we truly needed from what we were being sold — saving us hundreds of thousands and giving us confidence in our renewal strategy.
Director of Digital Platforms
Ready to optimise your ServiceNow renewal?
If you’re facing a renewal or planning platform changes, I can help you evaluate your options, identify savings, and ensure your licensing works for your organisation — not against it.