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AIOps vendor BigPanda said today it is now valued at $1.2 billion after raising $190 million.
The vendor, based in Mountain View, Calif., provides an AIOps event correlation and automation platform for IT operations teams to use for incident management automation, preventing IT outages and digitizing business processes.
BigPanda's latest funding round, its sixth, was led by private equity firms Advent International and Insight Partners.
BigPanda said it will use the funding to build out its AIOps technology by expanding its machine learning, product and R&D teams, and acquiring smaller vendors.
The impact of AI
The BigPanda funding round reflects the impact of AI on nearly every industry from cybersecurity to healthcare to financial services and even agriculture, said Ronald Schmelzer, an analyst at Cognilytica.
Ronald SchmelzerAnalyst, Cognilytica
"The use of AI to manage IT systems is incredibly important given the complexity of IT systems on premises, in the cloud, on edge devices and even the new metaverse," he continued.
AI-enabled IT service management is useful for spotting anomalies or potential cybersecurity problems. It's also helpful in providing chatbot analytics, Schmelzer noted.
"AIOps is early enough to be transformative and well-enough established to be mainstream," said Valerie O'Connell, an analyst at Enterprise Management Associates. "EMA research, field experience and common sense all point to the combination of AI, machine learning and automation as a fundamental requirement for digital service execution and excellence."
To cope with the profusion of data from different monitoring tools, many IT operations teams are deploying AIOps capabilities across their organization, she said.
The confusion of AIOps
However, Schmelzer said that while BigPanda and some of its competitors such as Moogsoft and Dynatrace operate in the AIOps market, the term AIOps can be misleading because it has little to do with managing AI or machine learning models, or any of the processes of building, managing or deploying AI models.
The term puts AI front and center, but it should really be "IT service management powered by AI" that's prominent, he said.
AI and IT
Nevertheless, Schmelzer said he expects the IT management industry to soon be based extensively on AI technology, including conversational systems, pattern and anomaly detection, and predictive analytics.
BigPanda said it also plans to use the funding to expand its sales, marketing, customer success and partnership teams.