Seeking more enterprise clients, PagerDuty takes $10.7M in funding

PagerDuty, an information-technology incident-management and alerting service, has raised $10.7 million in Series A funding. Many companies use PagerDuty to tell engineers when their websites go down.

Andreessen Horowitz, LiveOps Chairman Maynard Webb and Opscode Inc. Co-Founder Jesse Robbins led the funding round, alongside contributions from seed investors.

A PagerDuty scheduling page allows users to set primary and secondary contacts.
A PagerDuty scheduling page allows users to set primary and secondary contacts.

The San Francisco company’s Software as a Service captures incident reports from multiple monitoring services — including Splunk for big data, New Relic for applications-performance management and several others — and alerts a client’s proper contacts by text message, email or phone call. Users can set schedules for contacting engineers, who can list their alerting preferences.

PagerDuty CEO Alex Solomon and the two other founders, Andrew Miklas and Baskar Puvanasathan, came up with their company’s concept in 2009, after using a IT service-desk system with a capital-intensive paging component Amazon engineers had custom-built to alert engineers when issues arose. Facebook and Google had built alerting systems, too.

“We took a shot (at building a system of their own), and it turns out a lot of different companies need it, including some very big Fortune 500 companies,” Solomon said.

Today, PagerDuty clients range from staid enterprises such as Microsoft to younger companies such as GitHub. The idea behind this funding is to add more enterprise clients, Solomon said. That’s why the company will use some of its new dollars to add single sign-on capability, on-call metrics for each employee, support for in-company teams and other features staff-rich companies want, Solomon said.

As more software moves to the cloud, managing it all becomes more complex.

“Essentially a system like ours becomes a lot more important, to allow IT operations and devops people to respond quickly,” Solomon said.