IBM (NYSE: IBM) entered into a definitive agreement with Vista Equity Partners to purchase Apptio Inc., a Bellevue, WA-based leader in financial and operational IT management and optimization (FinOps) software, for $4.6 billion.
The acquisition of Apptio will accelerate the advancement of IBM’s IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the latter half of 2023.
Led by Sunny Gupta, CEO, Apptio is a profitable technology business management and FinOps leader, with over 1,500 clients, serving more than half of the Fortune 100. The company partners and integrates with leading companies such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, Salesforce, ServiceNow, Oracle and SAP, consistent with IBM’s commitment to an open partner ecosystem.
The company has three core offerings, all delivered as software as a service (SaaS) – ApptioOne, Apptio Cloudability, and Apptio Targetprocess:
- ApptioOne: Hybrid cloud spend management and optimization capabilities to analyze, optimize and plan IT spend and value. ApptioOne is used to establish repeatable and accurate planning and financial management processes, delivering actionable insights around cost and utilization, while benchmarking against industry peers for continuous optimization.
- Apptio Cloudability: Public cloud spend management visibility and optimization capabilities, connecting multi-cloud and SaaS infrastructure with cloud financial management best practices to maximize the value of clients’ cloud strategy.
- Apptio Targetprocess: Agile investment planning capabilities to align development resources to business outcomes, plan and track value delivery for projects or products.
Apptio and the performance optimization and observability capabilities of IBM’s IT automation software like Turbonomic, Instana and AIOps, will give clients a technology business management platform, providing a “virtual command center” for spend management and optimization stretching across their entire technology landscape. In addition, Apptio will bring to IBM $450 billion of anonymized IT spend data, giving access to new insights for clients and partners.
The acquisition of Apptio is a continuation of IBM’s focus and investment in hybrid cloud and AI and is expected to drive synergies across several key growth areas for IBM, including automation, Red Hat, IBM’s broader AI portfolio, and IBM Consulting, as well as partnership with other systems integrators like Accenture, KPMG, Deloitte and EY. IBM will also deliver new innovation by augmenting watsonx with Apptio’s anonymized FinOps data.
FinSMEs
26/06/2023