The AIOps industry is steadily growing and making inroads in the mainstream IT market, as evidenced by two recent IPOs from AIOps companies. And while the industry is still maturing and finding its foothold, that hasn’t slowed down global adoption, according to Forrester Research.
A recent Forrester survey found that more than half of global infrastructure decision makers have either already adopted, or are in the process of implementing AI and machine learning-enabled systems. An additional 21 percent of decision makers plan to adopt those technologies within the next year, which certainly bodes well for the industry. 451 Research has a more conservative outlook on the AIOps market, noting that companies need to get past the initial and somewhat chaotic stage of DevOps adoption before they can move on to AIOps automation.
That didn’t stop Waltham, MA-based Dynatrace, an AIOps pioneer, from forging ahead with its IPO this summer after five years of private sector ownership. The company specializes in software intelligence for application performance management as well as AI for operations, cloud infrastructure monitoring and digital experience management. Dynatrace shares reached $23.85, up 49 percent, as the result of its IPO, driving the company’s valuation to $6.7 billion.
And Datadog, which provides monitoring services for cloud-scale applications, reached a market valuation of at least $10 billion after its IPO last week. The company specializes in monitoring servers, databases, tools and services through its SaaS-based data analytics platform.
San Francisco-based AppDynamics, which specializes in application performance management and IT operations analytics, went in a different direction, and was acquired by Cisco in 2017 for $3.7 billion, just days before its planned IPO. The move has seemingly paid off, with the company generating an estimated $350 million in annual revenues.
AIOps company New Relic, which delivers software analytics and application performance management through its SaaS platform, made its IPO in 2014 with its stock priced at $23 per share. The company currently enjoys revenues of more than $479 million annually and a stock price of $63.
DevOps may have more ground to make up before AIOps enters the mainstream, but the market is certainly off to a strong start. With a core group of pioneering companies offering valuable, well developed services, AIOps adoption will continue to grow in pace with innovation and development of AI and automation technologies.
Edited by Maurice Nagle