IBM to Acquire Apptio
June 26, 2023
Share this

IBM entered into a definitive agreement with Vista Equity Partners to purchase Apptio 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.

Apptio, together with IBM's IT automation software and it's watsonx AI platform, will help businesses manage and optimize enterprise IT spend and derive tangible financial value and operational improvement.

Apptio partners and integrates with 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.

"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."

Apptio will be acquired with available cash on hand. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the latter half of 2023.

Share this

The Latest

November 08, 2024

In MEAN TIME TO INSIGHT Episode 11, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Secure Access Service Edge (SASE) ...

November 07, 2024

On average, only 48% of digital initiatives enterprise-wide meet or exceed their business outcome targets according to Gartner's annual global survey of CIOs and technology executives ...

November 06, 2024

Artificial intelligence (AI) is rapidly reshaping industries around the world. From optimizing business processes to unlocking new levels of innovation, AI is a critical driver of success for modern enterprises. As a result, business leaders — from DevOps engineers to CTOs — are under pressure to incorporate AI into their workflows to stay competitive. But the question isn't whether AI should be adopted — it's how ...

November 05, 2024

The mobile app industry continues to grow in size, complexity, and competition. Also not slowing down? Consumer expectations are rising exponentially along with the use of mobile apps. To meet these expectations, mobile teams need to take a comprehensive, holistic approach to their app experience ...

November 04, 2024

Users have become digital hoarders, saving everything they handle, including outdated reports, duplicate files and irrelevant documents that make it difficult to find critical information, slowing down systems and productivity. In digital terms, they have simply shoved the mess off their desks and into the virtual storage bins ...

November 01, 2024

Today we could be witnessing the dawn of a new age in software development, transformed by Artificial Intelligence (AI). But is AI a gateway or a precipice? Is AI in software development transformative, just the latest helpful tool, or a bunch of hype? To help with this assessment, DEVOPSdigest invited experts across the industry to comment on how AI can support the SDLC. In this epic multi-part series to be posted over the next several weeks, DEVOPSdigest will explore the advantages and disadvantages; the current state of maturity and adoption; and how AI will impact the processes, the developers, and the future of software development ...

October 31, 2024

Half of all employees are using Shadow AI (i.e. non-company issued AI tools), according to a new report by Software AG ...

October 30, 2024

On their digital transformation journey, companies are migrating more workloads to the cloud, which can incur higher costs during the process due to the higher volume of cloud resources needed ... Here are four critical components of a cloud governance framework that can help keep cloud costs under control ...

October 29, 2024

Operational resilience is an organization's ability to predict, respond to, and prevent unplanned work to drive reliable customer experiences and protect revenue. This doesn't just apply to downtime; it also covers service degradation due to latency or other factors. But make no mistake — when things go sideways, the bottom line and the customer are impacted ...

October 28, 2024

Organizations continue to struggle to generate business value with AI. Despite increased investments in AI, only 34% of AI professionals feel fully equipped with the tools necessary to meet their organization's AI goals, according to The Unmet AI Needs Surveywas conducted by DataRobot ...