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How PagerDuty Operations Cloud Delivered a 249% Return on Investment by Enhancing Operational Efficiency, Automation, and Resiliency

by Dan Anderson October 3, 2024 | 3 min read

A Forrester Consulting Total Economic Impact study, commissioned by PagerDuty, reveals that the PagerDuty Operations Cloud delivered a 249% return on investment (ROI) and a net present value of $4.01 million over three years.* The study shows that after adopting the PagerDuty Operations Cloud, organizations reported improved operational efficiency, better incident management, and significant cost savings.

A first responders manager from a software organization shared, “PagerDuty has been invaluable for us. There’s still so much more we can do and so much more value we can get out of it. We have no shortage of use cases where PagerDuty can help us be better and more mature.”

An infographic highlighting the financial benefits of PagerDuty's Operations Cloud over a three-year period. The top section of the image presents three key metrics: a return on investment (ROI) of 249%, a present value of benefits (PV) of $5.62 million, a net present value (NPV) of $4.01 million, and a payback period of less than 12 months. Below, a bar chart lists six quantified benefits. 'Fewer alerts' saved $2.4 million, 'reduced incidents' saved $325.8K, 'faster incident resolution' saved $179.7K, 'operating profit saved from avoided downtime' totaled $1.4 million, 'software consolidation cost savings' amounted to $559.5K, and 'fewer SLA penalties' resulted in $761K in savings.

PagerDuty Operations Cloud provides a resilient and automated platform

The companies interviewed noted the reliability and automation capabilities of PagerDuty. A vice president of technology at a software company noted: “The platform [we chose] needed to be very reliable. It’s the system where we put our alerts to know if our system is down, so it had to have a higher uptime than us. We were confident in PagerDuty.”

The advanced features in the PagerDuty Operations Cloud—such as AIOps, incident management, automation, and customer service ops—allow organizations to centralize and streamline operations, enabling faster response times and better business outcomes.

AI and automation embedded in PagerDuty enable teams to focus on strategic initiatives

Automation and AI are at the heart of PagerDuty’s value proposition. By automating repetitive tasks and enhancing incident detection, the platform empowers teams to prioritize strategic projects over time-consuming manual operations.

The senior service manager for a software organization noted: “Six years ago, our MTTA was 1 hour with the right team. … Now, it’s less than 5 minutes. … When trying to figure out who owns a particular service, [it went from] 2 to 3 hours to 5 minutes.” The senior service manager added, “[Our MTTR improved] from 3 hours to less than 30 minutes.” 

Similarly, the vice president of technology for a software organization said, “We have a goal to have our MTTR below 200 minutes, and we are hitting that goal more over the last six months than we did [before PagerDuty].”

Enhanced collaboration and better customer experiences through PagerDuty

A director of IT operations from a trucking company shared: “PagerDuty has been an absolutely phenomenal win for us.” 

Teams using PagerDuty benefit from improved communication and more efficient workflows. According to the study, the composite organization representing the interviewed customers that implemented PagerDuty experienced a 50% reduction in incidents and a 91% reduction in signal noise, leading to better service reliability and fewer SLA penalties.

Read the case study to learn more about what an investment in PagerDuty Operations Cloud could mean for your organization

Check out the full Forrester TEI study for insight on how PagerDuty can benefit your operations, including details on revenue uplift, cost savings from system consolidation, and improvements in employee efficiency.

* For a composite organization representative of interviewed customers.