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PagerDuty Looks to Grow AIOps to Improve IT Automation

PagerDuty reports solid financial growth as it adds new generative AI and analytics capabilities to its IT operations cloud.

IT operations management platform vendor PagerDuty is growing its portfolio with new analytics and generative AI capabilities, as the company continues to see growing demand.

PagerDuty reported its second-quarter fiscal 2024 financial earnings on Aug. 31. Revenue for the quarter was reported at $108 million for a 19% year-over-year gain. Alongside the company's financial report PagerDuty also announced new services to help organizations improve IT automation efforts.

The new generative AI features let users create automated runbooks through natural language prompts. This provides a low-code way to build workflows that can automate repetitive tasks. PagerDuty estimates that AI-powered automation can reduce the time to develop runbooks by up to 80%. For large enterprises, automation could deliver hundreds of thousands in annual cost savings by improving productivity and efficiency.

PagerDutyAI generated runbook

Users type in plain-English prompts to generate entire low-code runbooks powered by AI.

In addition to the AI updates, PagerDuty is enhancing its analytics capabilities. New Insights Reports give teams more granular visibility into operational health, service impacts, and responder performance. For example, reports can highlight which services suffer the most incidents or track service-level agreement (SLA) achievements. According to PagerDuty, early customers improved mean time to acknowledge incidents by 28% using the new analytics.

"Despite budgets remaining under pressure, our enterprise customers demonstrated their clear priority to improve their resilience by utilizing our cloud-native platform," PagerDuty CEO Jennifer Tejada said during her company's earnings call.

PagerDuty Expands AIOps and Operation Automation Efforts

PagerDuty has been building out its Operations Cloud in recent years.

Tejada pulled quote

The cloud-native service integrates four core solutions: Incident Response, AIOps, Process Automation, and Customer Service Ops. Tejada said Operations Cloud enables organizations to meet their cost savings objective by automating traditionally manual efforts and accelerating digital transformation, leveraging AI.

"Generative AI makes the benefits of automation very tangible for companies," she said. "The time savings and cost efficiencies are immediate and concrete, and in a macro environment where CIOs are being asked to do more with less, the early wins they see with generative AI are driving leaders to ask what else across their business can be automated."

Looking beyond AI, Tejada said the new analytics capabilities provide even more insights for users. PagerDuty's Insight Reports provide teams with more granular visibility and control over operational health and maturity, specifically designed with technology executives in mind, she said.

"These reports provide leaders with real-time critical insights into the state of their operations, including which services are most impacted, achievement against SLAs, and overall team health," Tejada said.

Improving IT Automation with New Workflows

In addition to the new analytics and AI features, PagerDuty has been expanding the capabilities of its Operations Cloud over the past few months.

Tejada said that during the past quarter PagerDuty also announced the general availability of custom fields and incident workflow templates. 

"With custom fields, we are widening the aperture of use cases for the Operations Cloud to teams beyond engineering," she said.

For example, customer service teams can define an incident type in order to trigger different types of incident workflows, and now a security team can trigger an incident for a data breach, which will loop in PR and legal, Tejada explained.

"I saw over 50 customers this summer, and there's a huge appetite for not only automation, but an operations platform that helps them solve an increasingly material problem, which is reducing the cost and risk associated with material operations failures," she said.

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