Servicenow Contract Automatically Renew

ServiceNow Contract: Understanding Automatic Renewals

ServiceNow is an IT service management company that offers various cloud-based service management software. If you are a ServiceNow customer, you may have signed a contract with the company for a particular service or product.

Contracts are legally binding agreements between two parties, and they come with terms and conditions that should be read and understood carefully. One of the crucial clauses in a ServiceNow contract is the automatic renewal clause.

The automatic renewal clause is a provision in a contract that specifies that the contract will automatically renew at the end of the contract period. This means that unless you take action to cancel the contract, it will automatically renew for another term.

Why do companies include automatic renewal clauses?

Automatic renewal clauses are a common feature of service contracts. The reason why companies use these clauses is to ensure continuity of service and to reduce the administrative burden of renewal. Automatic renewals also provide a sense of security for the service provider as they can count on predictable revenue streams.

However, automatic renewals can be problematic for customers who are not aware of the renewal clause or forget to cancel the service before it renews. In some cases, customers may end up paying for services they no longer need or want.

How does an automatic renewal work in a ServiceNow contract?

If your ServiceNow contract includes an automatic renewal clause, you need to be aware of the details of the clause. Typically, the clause will specify the length of the renewal term, the notice period for cancellation, and the process for canceling the contract.

For example, your contract may automatically renew for another year unless you cancel it at least 30 days before the end of the current term. In this case, you would need to take steps to cancel the contract before the deadline, or it would renew automatically.

To avoid automatic renewals, you should keep track of the renewal date and familiarize yourself with the terms of the contract. Set a reminder to check your contract a few months before the renewal date, so you have enough time to decide whether to renew or cancel the service.


Automatic renewal clauses in ServiceNow contracts are a standard practice, but they can catch customers off guard if they are not aware of the terms and conditions. If you are a ServiceNow customer and have signed a contract with the company, make sure to read and understand the automatic renewal clause. Keep track of the renewal date and provide ample notice if you decide to cancel the contract. By doing so, you can avoid unwanted renewal charges and ensure that you are getting the services you need at the right time.