ServiceNow's CEO said that its acquisition of the Israeli startup Sweep helps it move customers from one CRM system to another in weeks instead of years. CRM stands for customer-relationship-management software.
"Instead of talking years, we're talking a month," Bill McDermott told analysts on the company's earnings call last Wednesday. "We're talking like days, 30 days, 60 days for a serious company of serious scale."
He explained the logic. "One of the big reasons why customers sometimes have a more difficult time changing from one CRM system to another is they have a long implementation cycle, and nobody wants to have a long implementation cycle, especially when it relates to taking care of their customers," he said. "So now we're able to accelerate the deployment times for CRM."
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ServiceNow headquarters.
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McDermott said the same logic applies to ServiceNow's other products. "In 24 hours, we activated that," he said of its AI governance tool, the Super Intelligence Control Tower.
CTech reported on September 3 that ServiceNow had acquired Sweep in a deal estimated at hundreds of millions of dollars. Neither company had announced it or disclosed a value. Sweep was founded in 2021 by Ido Gaver and Eran Kirshenboim, who earlier started Flok, which Wix acquired. It raised $22.5 million in a Series B led by Insight Partners in 2025 and had disclosed $46 million in total funding. Its software, which acts as an "agentic workspace" across ServiceNow, Salesforce and HubSpot, had customers including Brex, LG Electronics and NBC Sports.
On the call, McDermott called the deal "our tuck-in of Sweep" and said it "adds deep expertise in rapid agentic deployments, giving us another gear to accelerate while improving customer outcomes."
To speed up AI projects at large customers, ServiceNow now bundles its own delivery experts into select deals, and it books that value as professional services rather than subscription revenue. The shift was about 25 basis points in the third quarter and is expected to be about 50 in the fourth, Gina Mastantuono, the company's president and chief financial officer, said. The shift is part of why ServiceNow did not pass its full beat on to its annual guidance.
Asked how that spending was paying off, Mastantuono said that customers receiving the support "saw AI adoption progress twice as fast during just the first five weeks." She added: "We're reacting by building more of these deployment teams into our forecast because we're seeing such incredible results." McDermott then brought up Sweep as a second tool for the same goal.
Mastantuono said the extra services are not meant to last. "We don't expect to include this delivery expertise over the long term," she said. Amit Zavery, ServiceNow's chief product officer and chief operating officer, said the company is "using AI implementation agents" so that "a lot of the heavy lifting is done by AI."
The remarks fit a broader push into CRM, the market long dominated by Salesforce. McDermott said customers are ripping and replacing, "not just add alongside," and that "the old CRM was built for sales teams. The new one has to work across your entire business." Mastantuono said ServiceNow's AI-enabled CRM bookings tripled from both the previous quarter and a year earlier, and that CRM and industry workflows appeared in 13 of the quarter's top 20 deals.
Sweep is among at least seven Israeli or Israeli-founded acquisitions by ServiceNow worth more than $8 billion in total, including Armis for $7.75 billion, Pyramid Analytics, Traceloop and ai.work.