Gartner FreshService

Gartner has retired the legacy ITSM Magic Quadrant and now evaluates only AI applications in IT Service Management, forcing buyers to judge platforms on AI readiness, time-to-value, and user experience instead of size alone. In this new 2025 quadrant, Freshservice (via Freddy AI) is recognized as a Niche Player for AI applications in ITSM, validating its growing AI-native approach for mid‑market and enterprise teams.​

This change means you now compare Freshservice, ServiceNow, HaloITSM, HaloPSA, and ManageEngine less on checklists and more on how fast they deliver automation, self-service, and analytics outcomes. Mid-market AI-forward tools are gaining ground, making room for partners like DataLunix to guide pragmatic, value-focused migrations instead of “brand-only” decisions.​​

Why is Gartner’s new focus important for ITSM buyers in 2025?

Gartner’s new Magic Quadrant for AI Applications in ITSM explicitly measures how well vendors embed AI into workflows, from virtual agents to predictive analytics, rather than just listing generic ITSM feature breadth. This puts pressure on buyers to ask, “Which platform actually uses AI to remove tickets, reduce MTTR, and improve employee experience?” instead of “Who is the biggest vendor?”​

For you, this means selection criteria now prioritize:

• AI agents and copilots baked into incidents, changes, and requests

• Time-to-value measured in weeks, not multi-quarter programs

• OpEx-friendly pricing and admin workload versus “consultant-heavy” models

• Integration depth with ITAM, security, Microsoft 365, and collaboration tools​

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How is Gartner Freshservice positioned in the 2025 AI ITSM Magic Quadrant?

Freshservice is listed as a Niche Player in the 2025 Magic Quadrant for AI Applications in ITSM, with its AI capabilities delivered through Freddy AI across agent, insights, and copilot experiences. Gartner notes that Freddy AI is designed to work natively with Freshservice, forming a tightly integrated AI layer rather than a bolt‑on tool.​

Freshservice’s differentiator is its focus on uncomplicated, fast-to-implement AI for ITSM and ESM, aimed at organizations that want enterprise-grade outcomes without ServiceNow’s cost and complexity. Customers typically report deployment timelines in weeks and value from AI-driven self-service and triage without requiring specialist admin teams.

What makes Freddy AI in Freshservice different in 2025?

Freddy AI has evolved into a multi-layered capability: Freddy AI Agent (virtual agent and self-service), Freddy AI Insights (predictive analytics and anomaly detection), and Freddy AI Copilot (assistive tooling for agents creating and resolving content). Together, they transform Freshservice from a ticketing system into an AI-augmented service fabric that proactively detects issues, recommends actions, and auto-generates knowledge.​

Key 2025 capabilities include:

• Virtual support agent that resolves employee issues through chat, portal, and collaboration tools, tapping into internal and external content sources

• Unified search across the Freshservice knowledge base and repositories like SharePoint, improving first-contact resolution without escalating to IT staff

• AI-generated help articles from ticket context and public sources, allowing teams to rapidly expand and refresh knowledge bases​

  
  

How does Freshservice’s Device42 integration change ITAM and hybrid visibility?

Freshworks acquired Device42 to power Advanced ITAM in Freshservice, delivering deep discovery and dependency mapping across hybrid infrastructure. Device42 adds agent-based and agentless discovery of servers, applications, containers, network devices, and cloud environments, continuously feeding an accurate CMDB.​

For you, the combined Freshservice + Device42 stack means:

• Full-stack visibility across on-prem, virtual, and cloud components, tied back to business services

• Faster incident resolution and change risk assessment, as teams can see upstream/downstream dependencies before executing changes

• Better AI outcomes, because Freddy AI works on richer asset and relationship data, enabling predictive insights and automated remediation.​

  
  

How does Freshservice compare to ServiceNow, HaloITSM, HaloPSA, and ManageEngine in 2025?

The table below summarizes 2025 positioning across the key criteria that matter in the new AI ITSM era.

AI-first ITSM platforms in 2025

Dimension	Freshservice (Freshworks)	ServiceNow	HaloITSM / HaloPSA	ManageEngine ServiceDesk Plus
Gartner AI ITSM context	Niche Player in 2025 Magic Quadrant for AI Applications in ITSM, powered by Freddy AI.​	Long-standing leader in multiple ITSM/ESM-related quadrants, now judged on breadth and depth of AI plus ecosystem.​	Frequently cited as a top alternative with strong automation and workflows but more limited native AI vs peers.​	Recognized across ITOM/DEM and endpoint/ITAM spaces, providing broad IT operations and asset coverage.​​
AI capabilities	Native virtual agent, insights, and copilot for ITSM; anomaly detection, clustering, predictive trends, and guided root-cause analysis.​	Advanced AI and automation, including virtual agents, process mining, and predictive analytics, but often requires more configuration and specialist skills.​	Strong workflow automation and scheduling; AI typically lighter and often complemented with external analytics or BI tools.​	Embedded AI improving incident routing and analytics; strongest when combined with its unified endpoint and monitoring stack.​
ITAM / hybrid discovery	Advanced ITAM powered by Device42 for discovery, dependency mapping, and hybrid CMDB enrichment.​	Native, mature ITAM and ITOM discovery, deeply integrated into the Now Platform.​	Basic asset tracking, often extended via integrations; not a full ITAM suite.​​	Comprehensive ITAM and UEM; strong device and software tracking across networks and endpoints.​
Cost & licensing	Cloud-only, flexible licensing, often 40–60% less TCO than ServiceNow over three years in mid-market use cases.​​	Premium pricing, with minimum license volumes and sizable implementation/administration costs.​​	Tiered per-user pricing, no standard implementation fees, appealing for budget-conscious organizations.​	Flexible bundles and perpetual/SaaS options, cost-effective for ITSM+ITAM in SMB and mid-market.​
Implementation effort	Weeks to go live, typically configurable by internal IT teams; quick to adapt as needs evolve.​	Often 3–6 months with certified consultants for full ITSM/ESM rollouts.​​	Fast deployment, praised for ease of configuration and support; particularly attractive for MSPs and Microsoft-centered environments.​	Moderate complexity: faster than large enterprise suites, but more moving parts if broad ManageEngine portfolio is adopted.​
Ideal customer profile	Mid-market and growth enterprises seeking AI-native ITSM/ESM, strong self-service, and hybrid ITAM without big-enterprise overhead.​	Digitally mature enterprises needing extensive platform extensibility, governance, and multi-domain workflows.​​	IT teams and MSPs needing cost-effective, automation-centric ITSM with flexible deployment (cloud/on-prem) and Microsoft-native alignment.​	Organizations favoring an integrated IT operations stack with strong network, endpoint, and ITAM capabilities at competitive cost.​​

Which use cases are best suited for Freshservice in 2025?

Freshservice excels where you want to combine AI-native ITSM, modern ESM, and advanced ITAM without heavyweight administration. Customer stories and vendor data show rapid deployments delivering time-to-value in weeks and measurable improvements in ticket resolution and self-service adoption.​

Best-fit scenarios include:

• Mid-market enterprises modernizing from email/legacy tools wanting structured ITSM and ESM with powerful self-service

• Organizations leaving ServiceNow due to high cost/complexity, but still needing ITIL-aligned processes and AI-driven automation

• Hybrid/cloud-heavy environments where Freshservice + Device42 offers deep service mapping and risk-aware change management.​

  
  

When does HaloITSM or HaloPSA make more sense than Freshservice?

HaloITSM and HaloPSA stand out when your priority is flexible automation and Microsoft-centric integration more than AI depth. They provide highly configurable workflows, strong ticketing, and good value, especially for MSPs and IT teams deeply tied to Microsoft 365 and Azure environments.​

You might prioritize HaloITSM/HaloPSA if:

• You want tight alignment with PSA, billing, and broader business processes in one suite

• You prefer on-prem or hybrid deployment options rather than SaaS-only

• Your team values low-code/no-code workflow configuration and cost-efficient scaling over native AI depth.​

  
  

Where does ManageEngine win against Freshservice in 2025?

ManageEngine’s strength is breadth: ITSM, network/server monitoring, DEM, endpoint management, and ITAM all under a single vendor umbrella. In 2025, analysts highlight its strong showing in digital experience and endpoint management reports, reinforcing its appeal where operations visibility and device control are non-negotiable.​​

Choose ManageEngine over Freshservice when:

• You need deep, integrated monitoring and UEM along with ITSM in one toolset

• Asset and endpoint governance outweigh AI-native workflows as your primary driver

• You prefer modular adoption with the option for on-prem deployments across security and operations.​​

  
  

How are ServiceNow and big-brand ITSM platforms being challenged?

ServiceNow remains the benchmark for large-scale digital workflows, but many organizations now seek lower TCO, faster implementation, and less dependence on external consultants. Studies on alternatives show that platforms like Freshservice, HaloITSM, and others can cut three-year total cost by 40–60% while compressing implementation to 4–12 weeks.​​

This has led to a pivot where:

• Enterprises segment workloads: keeping complex, regulated processes on ServiceNow and offloading departmental ITSM/ESM to lighter platforms

• Mid-market organizations skip “big brand” tools altogether, going directly to AI-forward solutions that are easier to run in-house.​

  
  

How can DataLunix guide your move from ServiceNow or ManageEngine to Freshservice or HaloITSM?

DataLunix specializes in ITSM, ITOM, ITAM, ESM, and HRSD consulting across ServiceNow, Freshservice, HaloITSM, and ManageEngine, enabling a vendor-neutral, value-focused selection journey. With delivery centers in India and a nearshore/offshore model, DataLunix offers strategic pricing while providing end‑to‑end services from roadmap and business case creation through implementation and managed services.​

In migration scenarios, DataLunix typically helps you:

• Build a quantified business case comparing TCO, time-to-value, and AI-readiness across candidate platforms

• Design phased migrations (e.g., ITSM first, then ITAM/ESM) to reduce operational risk

• Leverage partnerships with Freshworks and HaloITSM to access best-practice configurations, accelerators, and certified expertise.​​

  
  

How does Gartner’s shift change your ITSM selection checklist?

Instead of starting with “which vendor is the biggest,” your 2025 checklist should begin with “which platform delivers the most AI-driven outcomes for our constraints.” This includes evaluating virtual agents, AI copilots, predictive insights, and how well AI leverages your CMDB and monitoring data.​

Key buyer priorities now include:

• AI maturity: Depth of use cases, not just marketing slogans

• Time-to-value: Weeks vs quarters for first use cases in production

• Admin simplicity: Can your internal IT team own configuration and change?

• Unified ITSM+ITAM+ESM: Especially important for organizations with hybrid estates and multi-department workflows.​

  
  

Where does Gartner Freshservice fit into a pragmatic 2025 tool strategy?

Gartner Freshservice recognition signals that Freddy AI is no longer “nice to have” but a core differentiator in Service Management. For many buyers, this positions Freshservice as the “sweet spot” between big-platform complexity and basic ticketing tools, especially when paired with Device42 for hybrid ITAM.​

A pragmatic 2025 strategy often looks like:

• Freshservice (with Device42) as the AI-first ITSM/ESM core

• HaloITSM/HaloPSA for MSP and Microsoft-heavy workloads

• ManageEngine where deep monitoring and endpoint control are primary drivers

• Selective use of ServiceNow for large, high-governance domains.​​

  
  

How can DataLunix structure your evaluation and rollout?

DataLunix typically adopts an outcome-first, vendor-agnostic approach aligned to Gartner’s AI ITSM lens:

• Discovery & assessment: Map current tickets, SLAs, assets, and employee experience pain points, then align them to AI-amenable use cases (virtual agent, auto-triage, predictive analytics).

• Shortlist & PoC: Run targeted proof-of-concept scenarios across Freshservice, HaloITSM, and/or ManageEngine, including Freddy AI and Advanced ITAM where relevant.

• Phased rollout: Prioritize high-impact workflows (e.g., incident, request, self-service), followed by ITAM and ESM expansions, using DataLunix implementation accelerators.​​

  
  

This architecture gives you a clear, quantifiable roadmap from legacy ITSM to AI-powered, outcome-centric operations with reduced risk and optimized spend.

FAQ

1. What does Gartner Freshservice Niche Player status really mean for buyers?

It confirms that Freshservice’s Freddy AI stack is mature enough to be evaluated among leading AI ITSM applications, with strengths around ease of use and AI-native workflows. For buyers, it reduces perceived risk and validates Freshservice as a serious alternative to legacy platforms in AI-driven service operations.​

2. Is Freshservice a good replacement for ServiceNow in 2025?

Freshservice is a strong choice if you want lighter administration, lower TCO, and faster implementation while still maintaining ITIL-aligned processes and modern AI capabilities. However, very large, highly regulated enterprises may still retain ServiceNow for complex, cross-enterprise programs, sometimes alongside Freshservice.​

3. How does Freshservice compare to HaloITSM for mid-market teams?

Freshservice leads on native AI (Freddy AI), self-service, and now advanced ITAM via Device42, ideal for AI-centric ITSM and ESM rollouts. HaloITSM offers powerful, configurable workflows and strong Microsoft alignment at attractive price points, making it excellent for MSPs and IT teams prioritizing flexible automation over AI depth.​

4. Why involve DataLunix instead of buying directly from a vendor?

DataLunix works across ServiceNow, Freshservice, HaloITSM, and ManageEngine, helping you avoid tool bias and focus on business outcomes, TCO, and AI readiness. As a consultancy and implementation partner, DataLunix can accelerate selection, migration, and optimization while providing ongoing managed services tuned to your context.​

5. How quickly can you go live on Freshservice with DataLunix support?

Most organizations can move core ITSM (incidents, requests, self-service) to Freshservice in 4–12 weeks when following an outcome-focused, phased approach. DataLunix’s accelerators and offshore delivery can compress this further, especially for greenfield deployments or migrations from email/spreadsheet-based processes.​​

Ready to make Gartner Freshservice work for you?

If you are rethinking ITSM after Gartner’s new AI Applications quadrant, you don’t need to navigate Freshservice, HaloITSM, ServiceNow, or ManageEngine alone. DataLunix combines deep multi-platform expertise, AI-focused consulting, and cost-effective delivery centers to design the right mix of tools and roadmaps for your context.​​

Visit DataLunix to schedule an AI-ITSM readiness workshop, compare Gartner Freshservice against your current stack, and get a tailored migration and optimization blueprint that balances automation, cost, and time-to-value for 2025 and beyond.