In a move to bolster its hybrid cloud capabilities, IBM has announced its acquisition of Apptio, a leading provider of hybrid cloud management and optimization solutions. The deal, valued at $4.6 billion in cash, signifies IBM’s commitment to expanding its services and systems integrations businesses in the ever-evolving cloud landscape.
As organizations increasingly adopt a hybrid approach to cloud architecture, combining private and public clouds with on-premises solutions, the need for effective management and cost optimization becomes paramount. Apptio has developed a powerful platform that enables businesses to track data across hybrid environments and gain insights into financial and resource costs associated with their IT infrastructure.
IBM plans to integrate Apptio into its existing IT automation software and AI platform, leveraging its capabilities to develop and offer comprehensive solutions to enterprises seeking to manage and optimize IT spending. By combining Apptio’s offerings with IBM’s technology stack, clients will benefit from enhanced visibility, cost optimization, and value-driven decision-making.
Arvind Krishna, CEO and chairman of IBM, highlighted the importance of optimizing technology investments in today’s rapidly changing business landscape. He stated, “Apptio’s offerings combined with IBM’s IT automation software and Watson AI platform give clients the most comprehensive approach to optimize and manage all of their technology investments.”
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Apptio’s product portfolio encompasses various areas of financial and operational IT management and optimization, commonly known as “FinOps.” ApptioOne focuses on spend management and planning within hybrid cloud environments, while Apptio Cloudability specializes in managing expenses related to public cloud deployments. Additionally, Apptio Targetprocess aids in resource allocation and project management for larger initiatives.
The acquisition brings a substantial customer base to IBM, as Apptio serves 1,500 enterprises, including over half of the Fortune 100 companies. Moreover, Apptio has established key integrations and partnerships with major players in the enterprise cloud services space, such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, Salesforce, ServiceNow, Oracle, and SAP. This extensive network aligns with IBM’s existing client list, presenting opportunities for cross-selling and expanding service offerings.
Sunny Gupta, co-founder and CEO of Apptio, expressed enthusiasm about the collaboration with IBM. Gupta stated, “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.” The combined expertise and resources of both companies are expected to provide customers with unparalleled solutions tailored to their complex hybrid cloud environments.
The acquisition, which has been rumored over the past weekend, is anticipated to be completed in the second half of 2023, pending regulatory and other necessary approvals. IBM’s strategic move to acquire Apptio underscores its commitment to addressing the challenges faced by modern enterprises in managing and optimizing their technology investments in the hybrid cloud era.
