ServiceNow Builds Out CRM Platform in Direct Competition With Salesforce

ServiceNow has expanded its portfolio in the customer relationship management (CRM) software market, introducing a set of AI-powered capabilities and product integrations designed to handle customer service, order fulfillment, and workflow automation on a unified architecture.

The expansion, formally announced at its Knowledge 2025 conference, builds on ServiceNow’s existing presence in customer service management and coincides with several strategic partnerships and acquisitions. Earlier this year, the company acquired AI automation platform Moveworks for $2.85 billion, its largest deal to date. It has also rolled out integrations with NICE, Zoom, and Logiciq, aimed at connecting front-, middle-, and back-office operations within a single system.

The moves place the enterprise software firm into more direct competition with Salesforce, the CRM category leader. In late 2024, Salesforce CEO Marc Benioff, appearing on CNBC’s Mad Money, compared ServiceNow to a “Wienerschnitzel” to Salesforce’s “McDonald’s.”

Bill McDermott said the company’s focus is not on replicating traditional CRM functions but rather rethinking how enterprises manage customer relationships end-to-end—from intake to resolution. “It’s a big market, but in that market, the customers have suffered a lot over the last decade,” he said. “Right now, the cost of losing a customer is higher than ever. And the loss rate of businesses is higher than ever—30% greater than it’s been. So the customers are saying, ‘Whatever you’re feeding me, it’s not working.’”