ServiceNow sets $4 billion revenue target for 2020, expansion plans

The cloud company best known for its IT services management tools is expanding into other functions such as customer service, HR and security.

ServiceNow said it expects half of its revenue to come from outside its core information technology management tools by 2020 as the company expands into everything from service management for human resources to customer service to security.

The company's goal to hit $4 billion in revenue by 2020 was outlined as its Knowledge 16 conference kicks off in Las Vegas. ServiceNow is among the more interesting cloud companies targeting the enterprise. The company is best known for its helpdesk and IT management tools, but is using its platform to bridge into other markets.

According to ServiceNow, the ITIL approach to continuous improvement can apply to every function of an enterprise. ITIL (Information Technology Infrastructure Library) is a set of best practices for IT service management that aims to align technology and business. ServiceNow launched a security operations service in February and now has 307 HR customers.

Here's a look at where ServiceNow is headed and the addressable markets.

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Market expansion is likely to be a key theme for ServiceNow at its conference this week. The company last month delivered better-than-expected first quarter results and projected 2016 revenue between $1.35 billion and $1.38 billion.

One of the key areas for ServiceNow going forward is customer service management. In the first quarter, CEO Frank Slootman said that ServiceNow's approach to new areas such as customer service is resonating.

We're seeing good traction in the tech-enabled industries, including software, telecom, managed services, financial services, government and healthcare. Customers are choosing We're seeing good traction in the tech-enabled industries, including software, telecom, managed services, financial services, government and healthcare. Customers are choosing us over CRM-based products because of the holistic service management approach, which includes incident-, problem- and change-management disciplines. This provides a better closed-loop solution, not only to improve the quality of the service, but also of the core product.