IBM to Acquire Apptio

IBM 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 transforming their businesses digitally faster than ever, causing IT environments to expand across public and private clouds, with multiple service providers.

To manage this increase in complexity, clients turn to Apptio’s solutions for integrated and simplified visibility into technology spending 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 manage and optimize enterprise IT spending and derive tangible financial value and operational improvement.

Apptio is an established, growing and profitable technology business management and FinOps leader, with more than 1,500 clients, serving more than half of the Fortune 100.

Recognized throughout the industry, 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 spending 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 spending management and optimization capabilities to analyze, optimize and plan IT spending 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 spending 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 360-degree technology business management platform, providing a “virtual command center” for spending management and optimization stretching across their entire technology landscape.

In addition, Apptio will bring to IBM $450 billion of anonymized IT spending data, unlocking 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 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 partnerships with other systems integrators like Accenture, KPMG, Deloitte and EY.

IBM also will deliver innovation by augmenting watsonx with Apptio’s anonymized FinOps data. Additionally, Apptio is expected to benefit from IBM’s scale and reach, working with clients and partners across more than 175 countries.

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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