Deals may also help ‘non-government’ firms
He added that ServiceNow also serves about 85% of the Fortune 500, but would not confirm whether enterprise customers get the same levels of discount. “We work individually with each new customer, as well as our existing customers at the time of renewal, on the most effective pricing structure for their needs,” he said.
Adam Mansfield, who leads Microsoft and ServiceNow advisory practices at consulting firm UpperEdge, said both organizations are “using aggressive discounts to remove friction in sales cycles, win government market share, and accelerate AI adoption in a highly visible sector. For non-government organizations, this signals that both vendors are willing to trade margin for strategic positioning, and buyers can use that as leverage in negotiations.”
But especially with ServiceNow, he said, “the consumption-based licensing tied to AI poses hidden risks for customers. Once use commences, usage often exceeds thresholds and limits, driving spend higher than expected. Enterprises must properly negotiate strong guardrails up front to avoid the cost overruns that these vendors are banking on.”
