Do organizations want to run IT operations from the cloud? Apparently, it's a growing trend, according to digital operations management PagerDuty.
PagerDuty reported fourth-quarter fiscal 2024 results on March 14, capping off a year of growth and operating margin expansion. The company saw fourth-quarter revenue increase 10% year-over-year to $111 million. But the real story is the increasing traction PagerDuty is seeing with its Operations Cloud platform among enterprise customers. Several multi-year, multi-product deployments were closed within the Global 2000 during the quarter as more large organizations look to consolidate sprawling digital operations.
"The Operations Cloud platform resonates with executives due to its proven ability to reduce operational expenses, protect revenue, mitigate risk, all while improving innovation velocity," Jennifer Tejada, PagerDuty's chairperson and CEO, said during her company's earnings call.
PagerDuty Is Enhancing the Operations Cloud with AIOps
The PagerDuty Operations Cloud provides a set of services designed to help IT teams manage and optimize operations and incident response.
Throughout fiscal 2024, PagerDuty invested heavily in expanding the capabilities of its Operations Cloud, which encompasses four key pillars: Automation, AIOps, Incident Management, and Customer Service Operations. The company shipped updates across all four areas during the year.
The company's AIOps solution is gaining particular traction, with more than 250 customers now using it.
"AIOps applies machine learning to reduce noise, surface real-time content, and automate a wide variety of manual activities," Tejada said. "Unlike other AIOps solutions in the market, the PagerDuty solution is integrated to automated workflows, enabling customers to auto-remediate more and more of their ecosystem, reducing reliance and the cost of manual processes and people."
Tejada noted that one of the key trends PagerDuty is seeing is the realization that insight is just insight if an organization doesn't have the ability to take action. She added that the PagerDuty AIOps solution now serves centralized teams like network operations centers (NOCs) and other IT operations as an integrated part of workflow automation.
Being able to go from insight to implementing the change the insight suggests really streamlines the process of improving resilience and helps drive more demand for the Operations Cloud, according to Tejada.
Incident Management Bolstered by Jeli Acquisition
In November 2023, PagerDuty acquired incident management vendor Jeli, which has added a series of new capabilities.
According to Tejada, thanks to Jeli's technology, organizations can transform incident learnings into timely operational improvements.
"The acquisition of Jeli further differentiates our automated Incident Management solution from low-value, price-led, on-call solutions and less scalable workflow tools," she said. "Today, our robust combined offering enables organizations to rapidly transform the learnings from incidents into a knowledge base for timely, informed operational decisions."
About the author
Sean Michael Kerner is an IT consultant, technology enthusiast and tinkerer. He consults to industry and media organizations on technology issues.
