iconica adds a cooperative flavor to the ServiceNow ecosystem

Enterprise demand for ServiceNow talent remains sky-high. As the ServiceNow ecosystem pivots to transformation, the required skill sets are no longer confined to implementing the platform. Yet, Certified Master Architects (CMA) and Certified Technical Architects (CTA) that can drive those transformational programs are a rare (and expensive) breed. Enterprises continue to rely on service providers to fulfill that demand. Painting with a broad brush, they have two choices: either partner with GSIs or work with specialized pure-play consultancies. With market maturation, pure plays tend to be absorbed by GSIs; the acquisition of Thirdera by Cognizant is a recent example. Against this trend, we see pure plays aiming to scale out. We sat down with iconica’s founders to learn about their strategy to scale a cooperative setup or, as they put it, lead an “exclusive alliance of boutiques.”

ServiceNow drives its ecosystem like a three-dimensional chess game

Before we dive into the specifics of iconica, let’s take stock of the dynamics of the ServiceNow ecosystem. To suggest there is a strong dynamic in that ecosystem appears to be an understatement. The tip of the iceberg is the majority stake by Keensight Capital in Plat4mation, a leading European pure play. The intriguing part is ServiceNow Ecosystem Ventures’ co-investment. On the same day, Genpact announced its foray into Source-to-Pay. Not long ago, Thirdera, another leading pure play, was gobbled up by Cognizant and EY when they announced a new partnership on GenAI governance. From the outside in, it feels as if ServiceNow is driving its ecosystem like a three-dimensional chess game by region, industry, and disruptive innovation. Against this background, where does iconica fit in?

iconica is pooling European ServiceNow talent

When we ask organizations why they contract with pure plays, the answer is typically “Because they are not GSIs,” usually referring to customer centricity, flexibility, outcome focus, and stable delivery teams. This buying behavior was reflected in the discussion with Michel Regueiro and Thomas Gouy, iconica’s co-founders; it summarizes their value proposition. The pair brings their experience of having led pure plays that were gobbled up by GSIs (Aspediens acquired by DXC and imaKumo by Atos); thus, they know both sides of the fence.

iconica is positioning itself between the GSIs and the plethora of smaller boutiques. It views itself as similar to larger pure plays like Plat4mation, The Cloud People, and Thirdera. With Thirdera acquired by Cognizant, we expect it to lose many pure-play characteristics, opening more opportunities for companies like iconica. Looking beyond Europe, other examples include NewRocket scaling out after PE investment and GlideFast and Cask, which continuously expand their footprints. In HFS’ view, these are the true pioneers of the ecosystem with their ServiceNow-dedicated business models.

iconica has assembled nine pure plays at the outset, including Aloha Clouds, Atomx, Convevo, Devhd, Digital Clarity, DM Technology, Exccon, Teiva Systems, and Yawize. With C1Secure, a US boutique specializing in SecOps and IRM, it added more chops and is building a bridgehead in the US market. Exhibit 1 provides an overview of the founding members and their focus markets.

Exhibit 1: iconica’s founding members and their focus markets

Source: iconica, 2024

iconica has said its goal is to expand the number of members to 25. In terms of go-to-market, the initial focus is the mid-market, with a strong emphasis on business and industry-specific solutions. This focus implies they will push industry solutions and sell more confined IP on the ServiceNow AppStore. For many other strategic issues, both founders have an open mind. Thus, they are exploring joint ventures and minority equity stakes in members or other companies. Similarly, they are toying with opening regional chapters in the US and Asia. In a nutshell, it is iconica’s mission to sell and guide customers to the right resources and services, and its model is uncharted territory in the ServiceNow ecosystem.

Quality of service delivery will be the most critical success factor

While HFS believes there is space for a new approach for pure plays, the key issue will be the quality of delivery. Where we have seen GSIs using subcontractors, typically pure plays, the quality often suffered. Thus, iconica needs to innovate its engagement. Poaching partner managers from ServiceNow might be the obvious strategic lever. Furthermore, how can iconica balance the diverse interests of its members and avoid channel conflict? Success will come down to execution excellence rather than capabilities or strategic intent.

The Bottom Line: If iconica manages to perform as one team, enterprises get more choices for European requirements.

iconica’s approach is innovative, but it has its inherent challenges. Its biggest opportunities are in its intimate ecosystem knowledge and its flexibility. HFS expects more consolidation in the market, which should open more doors for iconica. Its out-of-the-box thinking is a compelling example of the dynamism in the ServiceNow ecosystem.