New Relic acquires SignifAI to bring AI to IT operations

SignifAI's open data platform integrates with popular DevOps tools to help teams understand their operational data, such as alerts and change events, regardless of the source.

The digital intelligence firm New Relic has acquired SignifAI, a three-year-old company that specializes bringing artificial intelligence to IT operations -- otherwise known as AIOps to predict and address performance issues. The terms of the deal were not disclosed.

SignifAI's open data platform integrates with popular DevOps tools to help teams understand their operational data, such as alerts and change events, regardless of the source. With modern systems that include microservice architectures, containers and serverless technologies, it can be difficult to make sense of alerts and prioritize them. SignifAI helps simplify that process, and it offers root cause analysis and automated predictive insights.

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The platform integrates with more than 60 tools and services currently. 

"To deliver reliable software at scale, DevOps teams need to leverage machine learning to help them predict and detect issues early and reduce alert fatigue," New Relic CEO and founder Lew Cirne said in a statement. "This technology aligns with our current platform offering and we believe it provides us a unique advantage to solve an important problem for our customers."

The SignifAI team will continue to work from their offices in Sunnyvale, California and Tel Aviv, Israel.

New Relic also published its third quarter FY 2019 financial results on Wednesday, beating market expectations.

Non-GAAP earnings per share came to 19 cents on revenue of $124 million. A year earlier, New Relic's non-GAAP EPS was 5 cents on revenue of $91.8 million.

Analysts were expecting earnings of 12 cents per share on revenue of $120.11 million.

By the end of the quarter, New Relic had 816 paid business accounts of $100,000 or more. By comparison, it had 629 a year earlier.

For the fourth quarter, the company expects non-GAAP earnings per share between 4 cents and 6 cents on revenue between  $126.5 million and $128.5 million.