PagerDuty just announced that they are going to acquire Rundeck for 100 million dollars. Rundeck is the maker of a widely used software that helps users troubleshoot technical issues in IT systems.
PagerDuty announced the upcoming deal when they held their virtual conference. It is a great way for Rundeck to leave the market. So far, they have only raised 3 million dollars in funding. PagerDuty is going to pay the 100 million dollars price tag in both stock and cash.
60% of the value will be in cash, and the rest will be in stocks.
The age of automation
PagerDuty is publicly traded, and they provide users with a cloud-based platform that IT teams can use to get alerts on technical issues. For instance, PagerDuty can notify users if there are problems in the MySQL clusters in a database.
They also provide tools that can help teams coordinate their response when troubleshooting or problem-solving.
Rundeck is in a similar niche. Their open-source tool enables users to create workflows for fixing IT issues automatically. Workflows can help with tasks like adding extra instances to a cloud environment or restarting a malfunctioning server.
A new revenue stream for Rundeck
Automation of this level is beneficial to enterprises. Repetitive chores can be done faster and eliminate human error from the process. Troubleshooting steps are done automatically. The workflows can be shared with users who aren’t tech-savvy to let them fix simpler issues on their own.
Because it is open-source, the Rundeck tool is easy to adopt and use. The company can use it to get things off the ground. With all this potential, PagerDuty is also getting a new revenue stream. Rundeck has a paid version of its tool offered to 150 enterprises and other mid-market firms.