target audience: TECH SUPPLIER  Publication date: Jan 2024 - Document type: Market Perspective - Doc  Document number: # US51608423

Cost May Be a Bigger Issue for AIOps than Observability

By:  Nancy Gohring Loading


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This IDC Market Perspective discusses the high cost of ownership, which is a significant barrier for organizations implementing artificial intelligence for IT operations (AIOps) with nearly 40% of large enterprises citing it as a concern. While vendors experiment with pricing and packaging, enterprises show no clear preference for AIOps packaging. Interestingly, cost is less of a concern for observability tools, but implementation and usage difficulties pose a greater challenge. The median annual spend by large enterprises (10,000+ employees) on AIOps and observability tools is $1.4 million.

"While reducing spend on observability tools has been a priority for many enterprises, recent IDC research indicates that high total cost of ownership is the top limitation for organizations adopting AIOps, with nearly 40% of large enterprises citing it as a concern," said Nancy Gohring, research director, Enterprise System Management, Observability, and AIOps at IDC. "Technology suppliers should expect 2024 to be another year of experimentation with AIOps pricing and packaging until a set of models emerges that works well for the suppliers and their customers."


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