IBM completes acquisition of Apptio, enhancing technology management solutions for clients

In a significant move that promises to reshape the landscape of technology management, IBM has successfully finalized its acquisition of Apptio Inc., following all necessary regulatory approvals. This strategic merger empowers clients with enhanced capabilities, harnessing the synergies between Apptio’s innovative solutions and IBM’s expansive technological prowess. Apptio is a technology business management and FinOps leader with over 1,500 clients, serving over half of the Fortune 100.

As businesses continue to vie for competitive advantages in the digital age, technology stands out as a pivotal differentiator. Modern enterprises are ramping up their investments in information technology, with workloads and applications dispersed across a spectrum of public and private clouds, often spanning multiple service providers. However, this diversification has led to escalating expenses, prompting a demand for streamlined, integrated, and automated solutions capable of optimizing IT expenditure, bolstering operational efficiency, and driving superior financial returns.

The acquisition marks the fusion of Apptio’s preeminent FinOps offerings—comprising ApptioOne, Cloudability, and Targetprocess—with IBM’s formidable automation portfolio, encompassing Turbonomic, AIOps, and Instana. The outcome? Clients gain access to a veritable “virtual command center,” enabling them to seamlessly manage, optimize, and automate decisions about technology spending.

Of particular significance in this new venture is the infusion of artificial intelligence (AI) and foundational models into the fold. IBM is poised to amplify its cutting-edge Watsonx AI and data platform with Apptio’s vast repository of anonymized IT expenditure data, unlocking a fresh wave of innovation, insights, and value for all stakeholders.

Rob Thomas, Senior Vice President of Software and Chief Commercial Officer at IBM, expressed his enthusiasm for this transformative collaboration, stating, “The combination of Apptio products and IBM’s IT automation portfolio will give businesses a 360-degree technology management platform they can use to optimize and automate decisions across their IT landscapes.”

Thomas emphasized the ambition to convert IT from a mere cost center into a formidable competitive advantage fueled by the twin forces of automation and AI.

“We are bringing together market-leading and best-in-class solutions to continue to reshape IT from a cost center to a true competitive advantage powered by automation and AI,” Thomas stated.

IBM acquires Apptio: Stage set for a new era

Effective immediately, clients can harness the fruits of early integration between Apptio and IBM, leveraging the capabilities of Cloudability and Turbonomic. This represents a pivotal initial stride as IBM embarks on a journey to unlock significant synergies across various critical growth domains, encompassing automation, Red Hat, IBM Consulting, and the broader AI portfolio.

Cloudability, a beacon for efficient cloud expenditure management, equips organizations with the insights and recommendations to eliminate wasteful cloud spending. Meanwhile, Turbonomic lends its expertise to generating sound optimization decisions, which can be automated to unlock the true elasticity of cloud resources, mitigating overprovisioning to safeguard optimal performance.

Together, these two offerings span the entirety of the “Inform,” “Optimize,” and “Operate” phases of the FinOps Framework, providing clients with comprehensive coverage to rein in cloud expenditure without impeding innovation or operational effectiveness.

The integration between Cloudability and Turbonomic is further underscored by Cloudability’s ability to ingest Turbonomic’s executed and proposed actions, affording stakeholders a consolidated view across services. This comprehensive perspective enables stakeholders to gauge the impact of these integrated IT automation offerings, both past and potential, thus enhancing decision-making processes.

As the technology landscape continues to evolve, IBM’s acquisition of Apptio sets the stage for a new era of streamlined and intelligent technology management. The synergy between these industry leaders promises to reshape the foundation of IT operations, encouraging businesses to harness the full potential of their technological investments.


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