Pagerduty

Hybrid

IT operations

Last Updated: 20/04/2025

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

    Core Pricing Structure

  • 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

    Monetization Strategy

  • 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.

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