Pega’s AI Innovation And AWS Partnership Roar As Total Contract Value Hits $1.56B

Pega’s John Higgins talks to CRN about its AI innovation via Pega Blueprint, doubling down on AWS and how Pega is helping customers eliminate ‘mountains’ of technical debt.

https://www.youtube.com/watch?v=1rcmVIirq5E

Pega’s AI innovation engine and AWS partnership have been roaring throughout 2025 as the company signed a collaboration agreement with AWS, hired a former AWS executive to drive expansion and launched a slew of new features for Pega Blueprint.

The Waltham, Mass.-based AI-powered platform provider is generating $1.56 billion in total contract value with its sights set on eliminating enterprise technical debt and driving IT transformation so customers can unlock the true value of artificial intelligence with Pega Blueprint as the tip of the spear.

“[Pega Blueprint] shows how enterprise-grade workflow automation can be easy,” said John Higgins, chief of client and partner success at Pega.

Pega Blueprint is a cloud-based application that leverages AI agents to accelerate the design and development of workflow applications.

“We’re seeing clients use our AI Blueprint to very quickly understand what their portfolio of applications are, get them down into a standard core workflow and then allow that standard core workflow to be adaptable by product or market,” said Higgins. “So large- scale rationalization.”

Pega Blueprint uses agentic AI reasoning at design time to transform a customer’s legacy apps as modern AI workflows—all with governance and agentic automation built in. Enterprises are currently leveraging Pega Blueprint to extract processes, data and logic from legacy assets with AI agents, as well as for rapid cloud and data migration.

“The thing that’s actually most powerful is our clients are now in a situation when they need to do a design of a new workflow they don’t need six to 10 people to help them to do that anymore,” said Higgins. “So the days of having a product owner or a business analyst, technical discovery people and functional discovery people doing all of that heavy lifting ... we’ve automated that.”

Pega Signs AWS Collaboration Agreement To Drive Blueprint; Reports $381M In Q3 Sales

Pega generated revenue of $381 million in the third quarter of 2025, an increase of 17 percent year over year.

The company reported net income of $43 million, up significantly year over year compared with a net loss of $14 million in the third quarter of 2024.

Pega reported total contract value of $1.56 billion at the end of the third quarter of 2025, up 14 percent year over year.

This growth has been in part fueled by Pega’s growing relationship with AWS, the world's largest cloud computing company.

Pega signed a five-year Strategic Collaboration Agreement with AWS this year to drive joint AI customer sales.

This included the ability for customers to buy Pega Blueprint with Amazon Bedrock and AWS Transform with the goal of driving customers’ AI journey by replacing legacy systems and rapidly deploying AI agents and automation.

“Blueprint is fully certified on Bedrock. We have native integrations between AWS Transform and Blueprint,” Higgins said. “So the connections that we’re putting between our respective technology is really coming to bear in how we’re going to market and enabling [customers] to use our products.”

The AWS collaboration agreement also enables Pega to offer migration services and tools that guide on-premises clients through a transition to Pega-as-a-Service.

“I couldn’t be more excited by our partnership with AWS, especially over the last year,” said Higgins.

Blueprint Innovation And Eliminating ‘Mountains Of Debt’

Pega recently launched new agentic innovation inside Pega Blueprint to make it easy for customers to transform their legacy tech debt into automated cloud-based applications.

“Everybody’s talking about GenAI and how it can speed up innovation and can accelerate time to value. But if you look at our industry, we are dealing with mountains and mountains of debt,” said Higgins.

Higgins said technical debt and over-reliance on outdated legacy systems and applications are blocking enterprise adoption of AI. He said Pega Blueprint lets customers enact fast, efficient legacy transformation and free themselves from the cycle of technical debt.

“You can use AI to really go after reducing tech debt at the enterprise levels so you can also take advantage of AI in order to speed up innovation and time to value,” said Higgins.

Pega Blueprint customers can now leverage up-front agentic AI analysis of broad legacy inputs such as uploading assets from different sources and file types into Pega Blueprint for analysis—including documents, source code, demo videos and images, along with outputs from source code tools such as AWS Q Developer.

“Blueprint isn’t an environment that is just made for one persona type. It’s an environment for anybody who’s involved in designing or building new applications,” Higgins said.

In addition, Blueprint can now extract and synthesize information from uploaded sources to give users insight into legacy system processes, which fuels Blueprint to generate a starting point application workflow for reimagining and retiring old, inefficient systems.

Pega Hires AWS Sales Leader And Former Microsoft Veteran

To drive Blueprint and its AWS business even further, Pega recently hired former AWS and Microsoft veteran Daniel Kasun as head of global partner ecosystem.

At AWS, Kasun helped build and lead partner organizations that delivered high-growth co-sales in the public sector and financial services industries for over a decade. His last role at AWS was ISV partner sales leader of global financial services, with a focus on helping ISVs work effectively with the AWS sales organizations.

Prior to AWS, he spent 11 years at Microsoft in various top roles, including senior director of developer and platform evangelism for Microsoft’s U.S. Public Sector and Education organization.

Kasun will now lead the evolution of Pega’s partner ecosystem by strengthening alliances with global systems integrators and hyperscalers; accelerating adoption of Pega solutions and Pega Blueprint through partners; and expanding partner-influenced revenue across global markets.

More Pega Innovation

Another big launch this year for Pega was creating Pega Infinity ’25, which enables customers to reimagine legacy systems, automate work with reliable AI agents and boost productivity.

Dubbing Pega Infinity ’25 as the first agentic enterprise transformation platform to deliver trustworthy, predictable AI agents at scale, Infinity includes Pega Blueprint and the Pega Agentic Process Fabric that orchestrates AI agents and systems to work together.

Pega this year also launched a Pega Self-Service Agent to quickly resolve customer queries, as well as making Pega Cloud available as a service hosted on Google Cloud in the Kingdom of Saudi Arabia.

“Pega has always been an AI company,” said Higgins. “What we’re seeing is the people who are engaging with the Pega platform is massively increasing. … We’re very excited about our future and what our AI [solutions] can do for customers.”