How system enterprise vendors are adopting AIOps through acquisitions/organic growth

It’s been two years since Gartner published the Market Guide for AIOps Platforms in April 2021. The report states, “There is no future of IT operations that does not include AIOps. It is simply impossible for humans to make sense of thousands of events per second being generated by their IT systems.”

The recent wave of acquisitions of AIOps vendors makes us reminisce about a time when AIOps was a buzzword. Gartner’s report validated that AIOps will be indispensable to enterprises in the future. But, that the future will arrive so soon wasn’t expected.

Companies could undertake digital transformation at a chosen time and pace before the pandemic. However, the pandemic turned push to shove, and digital transformation became necessary to ensure business continuity and service.

AIOps is one such integral aspect of enterprise business transformation. It’s indispensable because of the high data volume enterprises continue to generate, the deluge of IT monitoring and observability tools and the need for a more efficient IT operations process augmented by AI.

The recent acquisitions validate that AIOps is now mainstream and that enterprise digital transformation initiatives are fractured without the ability to sift through telemetry data and manage IT better, autonomously.

Let’s look at the latest enterprise vendors adopting AIOps through acquisitions and what they mean for the AIOps industry.

Hewlett-Packard Enterprise (HPE) acquires AIOps platform OpsRamp

HPE announced a definitive agreement to acquire OpsRamp, a process that would close by the Q3 of 2023, without disclosing the terms of the deal.

OpsRamp is an IT Operations Management (ITOM) provider that monitors, observes, manages and automates IT infrastructure, cloud assets, workloads, services and applications for hybrid and multi-cloud environments, including the leading hyperscalers.

HPE’s intention with OpsRamp is to advance hybrid cloud leadership and expand HPE GreenLake into IT Operations Management. HPE GreenLake is an edge-to-cloud platform that offers customers and partners a unified cloud experience and easy access to cloud services.

OpsRamp services will help HPE customers with increasingly complex multi-vendor IT environments to manage IT investments and remediate incidents quicker. OpsRamp’s technology will be integrated with the GreenLake platform and made available standalone as-a-service and integrated within HPE’s compute, storage, and networking offerings.

“We look forward to leveraging the scale and reach of HPE’s global go-to-market engine to deliver our unique offering and are excited for this journey ahead as part of HPE”, said Varma Kunaparaju, CEO of OpsRamp.

Dell Technologies acquires AIOps startup Moogsoft

Dell Technologies announced signing a definitive agreement to acquire Moogsoft, a deal that will close by the end of Q3 of 2023. Dell didn’t disclose the financial terms of the acquisition.

Moogsoft has raised $92 million from investors since it launched in 2012. In Moogsoft’s words, it is “modern ITOps enabling continuous availability with automated noise reduction, correlation, and collaboration across your incident workflow”. As per the company, its platform includes patented algorithms that cut down 99% of the noise in data collected from an organization’s systems.

Dell aims to “further enhance Dell’s AIOps capabilities as part of its longstanding approach of embedding AI functionality within its product portfolio”. The company will share more about its plans with this acquisition after the deal goes through at the end of October 2023.

Francisco Partners and TPG acquire New Relic

Francisco Partners and TPG acquired New Relic for $6.5 billion in August 2023. New Relic shareholders will gain $87 per share in cash at a 26% premium to the company’s 30-day volume weighted average.

New Relic positions itself as an all-in-one observability platform with data for engineers to monitor, debug, and improve their entire stack. It aims to be a single source of truth for engineers to make data-driven decisions during the software development lifecycle.

Given that Francisco Partners and TPG also took log analytics and monitoring platform Sumo Logic private in May 2023, experts predict that thecompany will merge the two platforms to create a wide array of products to compete with other vendors in the space.

Integrating the two offerings would allow the parent company to keep up with the trend of consolidating APM (application performance monitoring), distributed tracing, log monitoring and AIOps tools under the umbrella of Observability.

Enterprise AIOps acquisitions legitimize the need for AIOps

Large infrastructure players in the tech industry acquiring AIOps vendors suggests an urgent need for AIOps to be a part of the existing stacks and services. Enterprise vendors are ultimately paying heed to their customers who want integrated and embedded solutions for better IT visibility and management.

AI-powered IT operations management completes the picture of enterprise IT and removes obstacles to user experience, customer service, software development and innovation, all of which directly impact business outcomes.

And, it’s not too bad that AIOps acquisitions put enterprise vendors on the map of AI town- a buzzworthy location today. The goal with AIOps will always be to move away from mundane, break-fix activities toward automation that addresses frequently arising issues automatically, leaving more bandwidth for IT persons to innovate, experiment and remediate with ease.

About CloudFabrix

AIOps may be top-of-mind for you, given the prominent enterprise vendors bringing attention to this space of innovation.

CloudFabrix offers a data-centric AIOps platform powered by Robotic Data Automation Fabric (RDAF) that allows enterprises to embark on their autonomous journey. Recently, CloudFabrix was recognized as one of only two Outperformers on the GigaOm AIOps Radar for AIOps.

CloudFabrix recently announced the availability of Macaw- the generative AI assistant that uses natural language conversational queries and identifies prompt context using the low-code RDAF.

Earlier this year, Cisco announced CloudFabrix as a partner on Cisco’s Full Stack Observability (FSO) Platform. Cisco will accomplish its mission to make the FSO platform extensible with vSphere Observability and Data Modernization from CloudFabrix.

CloudFabrix also entered a partnership with IBM Consulting to help IBM’s clients implement ITOps use cases such as enterprise-wide observability, composable in-place search and asset intelligence and analytics by unifying data, AI and automation. IBM Consulting is combining its deep expertise in observability and AIOps solutions with CloudFabrix’s Robotic Data Automation Fabric, specifically architected for complex IT infrastructure.

Learn more about CloudFabrix and our various offerings in Observability, Data Modernization, AIOps and Log Intelligence here.

Shailesh Manjrekar
Shailesh Manjrekar
Shailesh Manjrekar, Chief Marketing Officer is responsible for CloudFabrix's AI and SaaS Product thought leadership, Marketing, and Go To Market strategy for Data Observability and AIOps market. Shailesh Manjrekar is a seasoned IT professional who has over two decades of experience in building and managing emerging global businesses. He brings an established background in providing effective product and solutions marketing, product management, and strategic alliances spanning AI and Deep Learning, FinTech, Lifesciences SaaS solutions. Manjrekar is an avid speaker at AI conferences like NVIDIA GTC and Storage Developer Conference and is also a Forbes Technology Council contributor since 2020, an invitation only organization of leading CxO's and Technology Executives.