PagerDuty monetizes AI through a consumption-based AIOps add-on, enabling flexible scaling while preserving core functionality for all users.
- Category
IT Operations & Incident Management Tool - Employees
1,000+ - Business Model
Product-Led Growth (PLG) - Target Market
SMB, Enterprise
Pricing Model: Subscription-based with per-user pricing
Primary Value Metric: Number of users & incident management capacity
Freemium Model: Yes, with basic incident response features available for free
Trial Offering: 14-day free trial for paid plans
Discount Strategy: 16% discount on annual subscriptions to drive long-term commitment
Core Pricing Structure
AI-powered operations (AIOps) is offered as a separate add-on rather than being included in standard plans
AIOps is consumption-based and can only be purchased with a paid subscription
Organizations can scale AI usage by purchasing additional AIOps capacity as needed
By offering AIOps as a separate, consumption-based add-on for paid plans, PagerDuty ensures flexible AI adoption while driving incremental revenue from businesses that require advanced automation and intelligence in their incident management workflows.