November 1, 2024

Major US Business Software Company ServiceNow Expands investment in Japan

ServiceNow, a prominent business software provider in the US, is set to increase its investments in Japan. The company intends to allocate $2 billion (around 310 billion yen) over the next few years to enhance its data centers and its Tokyo hub. There is strong demand from Japanese businesses and government agencies for its main service, which offers centralized management for various business systems, prompting the company to establish a framework to boost orders.

Founded in 2004, ServiceNow evolved from an internal application and approval system that leveraged cloud computing into a comprehensive management service for business systems. It is a key competitor alongside US firms like Salesforce and opened a subsidiary in Japan in 2013.

While it hasn’t revealed the exact amount of its previous investments in Japan, a substantial increase is anticipated. The company plans to allocate some of this funding to enhance its data centers, allowing for greater support of growing client companies and the expansion of services leveraging generative AI (artificial intelligence). Currently, the company delivers its services via major cloud provider hubs like Microsoft, but it aims to bolster its own hubs as well to better serve its clients' needs.

In the second half of 2025, the head office hub of the Japanese subsidiary in Tokyo will be expanded and relocated to make room for additional staff. The employee count at the Japanese subsidiary has doubled over the year leading to March 2024, reaching nearly 400. This figure has since risen by another 20%, with plans for ongoing recruitment in the future. Additionally, the company intends to invest in enhancing partnerships with local IT firms that assist in selling and implementing services.

Across the nation, companies have adopted cloud-based solutions for accounting, human resources, order management, and various business processes to enhance operational efficiency. However, this has resulted in several systems coexisting. Often, outdated systems are still in use, adding to the complexity of their management and usage.

ServiceNow aimed to address these issues with centralized management services and has experienced swift growth. CEO Bill McDermott stated, "We are confident this will allow us to quickly grow our business in Japan as companies and government entities recognize the unsustainability of using slow, outdated systems from the 20th century."