HPE signs on as an investor in latest round of funding
OpsRamp pulled in $37.5 million in funding from a number of investors, including Hewlett Packard Enterprise for the first time, as it looks to grow its cloud-based AIOps platform.
The Lowdown: Morgan Stanley Expansion Capital and Sapphire Ventures are also participating in the investment round. The last round of funding came in 2017 when OpsRamp raised $20 million from Sapphire.
The Details: AIOps (artificial intelligence for IT operations) is a fast-growing market segment in which IT staffs are using AI, machine learning, and analytics to drive automation into IT operations and let them more quickly analyze the massive amounts of data they’re creating.
OpsRamps’ platform is designed to give organizations visibility across hybrid cloud environments, monitoring of multicloud infrastructures, and management of services. The company has more than 1,400 customers and about four-dozen channel partners, and has partnerships with cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud.
The San Jose, California-based company plans to use the new infusion of money to grow and scale its platform.
The Impact: The company is aggressively working to grow the business, including its channel efforts. OpsRamp last summer rolled out an enhanced partner program that includes sales and technical training, demand generation, and go-to-market support. Four months later it named Brian Hartwell, a veteran of such IT tech vendors as Dell EMC, Nimble Storage, and Data Domain, as its vice president of worldwide channel sales.
Background: Enterprises are seeing data coming in not only from their own data centers but also from the cloud and the edge and are turning to AIOps platforms to ensure that their IT infrastructure can process and analyze all that data. A survey of more than 250 IT leaders in North America released by OpsRamp in October found that 64% of respondents value DevOps skills more than any other and that almost 60% have more than half of their mission-critical workloads in the cloud. Many also said budgets are limiting what they can do with IT operations.
A report this week by Adroit Market Research is forecasting that the AIOps market will grow 32% a year, reaching $237 billion by 2025.
The Buzz: “The business opportunity for OpsRamp is tremendous,” said Varma Kunaparaju, co-founder and CEO of OpsRamp. “Modernizing legacy IT operations management, technology debt, and supporting digital transformation is where our platform drives value to the enterprise. Point tools aren’t enough to support the monitoring and management of today’s hybrid, multicloud environments. This funding will drive the growth and scale we need to deliver on this vision.”
“Today, every company has a mission-critical reliance upon software” said Pete Chung, head of Morgan Stanley Expansion Capital. “We see tremendous opportunity in equipping IT operations teams with the next-generation platform they need to maintain software availability, business service performance, and to use automation and artificial intelligence to work efficiently and effectively across hybrid, multicloud environments.”
“As more of our customers transition to hybrid infrastructure, we find the OpsRamp platform to be a differentiated IT operations management offering that aligns well with the core strategies of HPE. With OpsRamp’s product vision and customer traction, we felt it was the right time to invest in the growth and scale of their business,” said Paul Glaser, vice president and head of Hewlett Packard Pathfinder.
“We’re delighted to continue our commitment to OpsRamp and their mission of transforming IT teams into the drivers of digital transformation for modern enterprises,” said Nino Marakovic, CEO and managing director of Sapphire Ventures. “The company’s growth and trajectory are impressive, and I believe that signals they’re addressing the right need at the right time.”