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.
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