Friday, May 8, 2020

Is AIOps a Capability or a Product?

Some markets are hard to estimate because the definitions matter so much. Consider AIOps. A new research report predicts the global AIOps platform market will reach US $11.1 billion in sales by 2025, growing at about a 34 percent compound annual growth rate. 


Aside from the typical issues--how do we define platform; what is AIOps--we face some additional questions. Is artificial intelligence a capability of existing products or a new product category? If the former, then AIOps is a capability, not a product category. If the latter, is it only new products which count? 


source: Techtarget


“Major growth factors” include the growing demand for AI-based value in  IT operations, Cole Reports says. But how do we separate AI features that are embedded in existing platforms and software? Is it the full value of the retail product, or only the incremental value added by AI? 


To use one example, AIOps is not about automation in a direct sense, some would argue, but is a tool to achieve automation. AIOps essentially requires analytics conducted on big data sets, but is not directly big data. AIOps is normally part of some analytics solution for some IT operations function. 


source: dzone


The Cole Reports study suggests properly that AI will be used in information technology operations, which illustrates the definitional issue. If AI improves operations processes, can we cleanly separate AI from the value AI providers for existing operations management products, both embedded into other software and provided as stand-alone solutions?


It is not an unusual task. When estimating 5G revenue, a proper understanding of incremental revenue growth would also subtract the value of replaced 4G connections. Growing streaming revenue also has to be balanced against lower linear subscription revenue to evaluate actual net market changes. 


AIOps presents some similar issues. Definitions matter. If every analytics platform or operations system includes AIOps features, then AIOps becomes almost a meaningless term.


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