IBM to Acquire Apptio
IBM announced that it has entered into a definitive agreement with Vista
Equity Partners to purchase Apptio Inc., a 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.
Organizations are digitally transforming their businesses faster than
ever, causing IT environments to expand across public and private clouds, with
multiple service providers. To manage this dramatic increase in complexity,
clients are turning to Apptio's solutions for integrated and simplified
visibility into technology spend across hybrid and multi-cloud environments,
labor and associated resources. Apptio, together with IBM's IT automation
software and it's watsonx AI platform, will help businesses around the world
manage and optimize enterprise IT spend and derive tangible financial value and
operational improvement.
Apptio is an established, growing and profitable technology business
management and FinOps leader, with over 1,500 clients, serving more than half
of the Fortune 100. Industry recognized, Apptio 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.
Apptio empowers enterprise leaders to manage technology spend and direct
investments to high-value cloud innovation and digital transformation. 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.
"Technology is changing business at a rate and pace we've never
seen before. To capitalize on these changes, it is essential to optimize
investments which drive better business value, and Apptio does just that,"
said Arvind Krishna, CEO and chairman, IBM. "Apptio's
offerings combined with IBM's IT automation software and watsonx AI platform,
gives clients the most comprehensive approach to optimize and manage all of
their technology investments."
Apptio and the performance optimization and observability capabilities
of IBM's IT automation software like Turbonomic, Instana and AIOps, will give
clients a 360-degree 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, unlocking new insights for clients and partners.
The acquisition of Apptio is a continuation of IBM's deep focus and
investment in hybrid cloud and AI and is expected to drive significant
synergies across several key growth areas for IBM, including automation, Red
Hat, IBM's broader AI portfolio, and IBM Consulting, as well as strong
partnership with other leading systems integrators like Accenture, KPMG,
Deloitte and EY. IBM will also deliver new innovation by augmenting watsonx
with Apptio's anonymized FinOps data. Additionally, Apptio is expected to
benefit from IBM's long-established scale and reach, working with clients and
partners across more than 175 countries.
"Our customers are evolving to a complex digital-first, hybrid
world where technology investments are distributed and decentralized but all innovation must be aligned with
clear business outcomes," explained Sunny Gupta, Apptio
co-founder and CEO. "We are so excited to be joining IBM and combining our
industry leading offerings with IBM's global presence and strong portfolio
across AIOps, automation and hybrid cloud offerings."
"We are committed to building resilient enterprise software
companies, which has proven to be highly attractive to strategic and financial
buyers, as well as public markets," said Robert F. Smith,
founder, chairman and CEO of Vista Equity Partners. "Our investment
philosophy, value creation strategy, and industry expertise, enables us to identify
and partner with companies that have the potential for long-term success.
Apptio has transformed how leading organizations optimize their IT spend and
performance for better outcomes. We are proud of these shared accomplishments
and look forward to seeing Apptio further evolve with IBM."
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