IBM, a global leader in hybrid cloud, AI, and consulting services, has announced its definitive agreement to acquire Apptio Inc., a renowned provider of financial and operational IT management and optimization software.
The acquisition, valued at $4.6 billion, marks a significant step forward for IBM in advancing its resource optimization, observability, and application management offerings. The integration of Apptio's expertise will enable IBM to deliver comprehensive financial and operational insights across enterprise IT, maximizing client value and driving synergies across multiple growth areas.
In today's rapidly evolving digital landscape, organizations are transforming their businesses and expanding their IT environments across public and private clouds, often with multiple service providers. Apptio's solutions provide integrated visibility into technology expenditure across hybrid and multi-cloud environments, labor, and associated resources.
By combining Apptio's capabilities with IBM's IT automation software and Watson AI platform, businesses globally will gain enhanced management and optimization of enterprise IT expenditures, leading to measurable financial value and operational improvements.
Apptio boasts an impressive track record as a leader in technology business management and FinOps, serving over 1,500 clients, including more than half of the Fortune 500 companies. The company's strong partnerships and integrations with industry leaders like Amazon Web Services, Microsoft Azure, Google Cloud Platform, Salesforce, ServiceNow, Oracle, and SAP exemplify IBM's commitment to an open partner ecosystem.
The company’s three primary offerings, namely ApptioOne, Apptio Cloudability, and Apptio Targetprocess, empower enterprise executives to effectively manage technology expenditures and direct investments toward high-value cloud innovation and digital transformation.
ApptioOne facilitates hybrid cloud spend management and optimization, providing actionable insights into cost, utilization, and benchmarking against industry counterparts. Apptio Cloudability offers visibility and optimization capabilities for public cloud spend management, integrating multi-cloud and SaaS infrastructure with cloud financial management best practices. Finally, Apptio Targetprocess supports agile investment planning by aligning development resources with business outcomes and tracking value delivery for initiatives or products.
IBM's CEO and chairman, Arvind Krishna, emphasizes the importance of optimizing technology investments to generate greater business value. The integration of Apptio's offerings with IBM's IT automation software and Watson AI platform will provide clients with the most comprehensive method for managing and optimizing technology investments.
Moreover, Apptio's performance optimization and observability capabilities, alongside IBM's IT automation software like Turbonomic, Instana, and AIOps, will create a 360-degree technology business management platform—a "virtual command center" for spend management and optimization across the entire technology landscape.
The transaction is expected to close in the latter half of 2023, subject to regulatory approvals and customary closing conditions. IBM's acquisition of Apptio underlines its commitment to helping organizations navigate the complexities of the digital world, optimize their technology investments, and achieve tangible business outcomes in the hybrid cloud era.