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Apptio
View on WikipediaApptio, Inc. is a Bellevue, Washington-based company founded in 2007 that develops technology business management (TBM) software as a service (SaaS) applications.[3][4][5] Apptio enterprise apps are designed to assess and communicate the cost of IT services for planning, budgeting and forecasting purposes;[6] Apptio's services offer tools for CIOs to manage technology departments' storage, applications, energy usage, cybersecurity, and reporting obligations;[7] manage the costs of public cloud, migration to public cloud and SaaS portfolios; and adopt and scale Agile across the enterprise.
Key Information
In 2009, the company was the first investment for Silicon Valley venture capital firm Andreessen Horowitz.[8] The company has approximately 550 customers[9] of various sizes.[10][11] The company went public in September 2016.[12]
On November 11, 2018, it was announced that Apptio would be acquired by the private equity firm Vista Equity Partners for $1.9 billion.[13] That same year, Apptio acquired Digital Fuel, a cloud computing expenditure company, for $42.5 million.[14]
In June 2023, IBM agreed to acquire Apptio from Vista for $4.6 billion.[15] The acquisition was completed on August 10, 2023.[16]
History
[edit]The company was founded in 2007 by Sunny Gupta, Kurt Shintaffer and Paul McLachlan.[17][better source needed] Prior to founding the company, Gupta and Shintaffer worked together at iConclude before it was purchased by Opsware in 2007.[8] In November 2007, the company received $7 million in funding from Madrona Venture Group and Greylock Partners while it was operating in stealth mode.[18] Apptio raised an additional $14 million in Series B funding from the newly formed Andreessen Horowitz fund in 2009.[5]
In 2010, the company raised an additional $16.5 million in Series C funding led by Shasta Ventures, with participation from previous investors.[19]
In March 2012, the company raised an additional $50 million in Series D funding to continue scaling, hiring and expanding its services.[20] In 2013, Apptio raised an additional $45 million in Series E funding, bringing its total raised to $136 million from firms including Greylock Partners, Madrona Venture Group, Janus Capital and T. Rowe Price.[3][10]
In March 2014, Apptio opened offices in Sydney and Melbourne, Australia.[21] In 2015, the company announced that it was adding an office in Denver.[22] Apptio added another international office in March 2016, when it announced it would open an office in Paris, France.[23] On September 23, 2016, Apptio raised $96 million with its IPO, opening on the NASDAQ stock exchange under the symbol APTI at $16 per share.[12]
On February 2, 2018, Apptio completed the acquisition of Digital Fuel SV, LLC, a provider of IT business management (ITBM) tools.[9] On November 11, 2018, Apptio entered into definitive agreement to be acquired by Vista Equity Partners for $1.94 billion. Apptio shareholders received $38.00 in cash per share, representing a 53% premium to the unaffected closing price as of November 9, 2018.[24]
In 2019, Apptio acquired Cloudability, a firm that manages cloud spend.[25] Apptio opened its first India office location in August 2019.[26] In May 2020, LeanIX revealed technology collaboration with Apptio to include core IT spending data analytics.[27]
In February 2021, the company acquired Targetprocess, a software platform that specializes in business investments, for agile.[28] In April 2021, Apptio launched a redesigned portfolio of products including: ApptioOne, Targetprocess, and Cloudability.[29] Apptio announced its first certified solution and integration with ServiceNow in July 2021. The following month, Apptio opened its Kraków, Poland office.[30]
In December 2021, the company announced its collaboration with Microsoft to deploy Apptio’s platform on Microsoft Cloud to help enterprises migrate and optimize workloads.[31] Apptio also partnered with IBM to accelerate enterprise transformation and improve hybrid cloud technology that same year.[32]
In June 2023, IBM agreed to acquire Apptio from Vista Equity Partners for $4.6 billion in an all-cash deal.[15] In August, the company announced the completion of the acquisition of Apptio.[16]
Technology Business Management Council
[edit]Apptio founded the Technology Business Management Council in 2012,[33] a non-profit organization that had over 2,900 CIOs[34] and other senior IT leaders by 2014.[33] It was reported by the Puget Sound Business Journal that the council "aims to help IT departments run like businesses by setting standards and best practices" .[35] The council held its first conference in November 2013.[11]
References
[edit]- ^ "Leadership". Apptio. Retrieved May 10, 2023.
- ^ a b Tony Lystra (January 26, 2021). "How Sunny Gupta led Apptio to a record-breaking end to 2020". Puget Sound Business Journal. Retrieved June 23, 2022.
- ^ a b Ovide, Shira (18 November 2013). "IPO Candidate Apptio Adds 3 Public-Company Veterans". WSJ Digits. Retrieved 20 March 2014.
- ^ King, Rachel (15 May 2013). "TBM startup Apptio raises $45M; plans to expand global footprint". ZDNet. Retrieved 20 March 2014.
- ^ a b Grant, Rebecca (15 May 2013). "Andreessen Horowitz's first investment Apptio closes $45M fifth round". VentureBeat. Retrieved 20 March 2014.
- ^ Horton, Nick (July 2012). "100 Best Companies to Work For 2012: Large Companies". Seattle Business magazine. Retrieved 20 March 2014.
- ^ Bond, Phillip J. (15 Nov 2014). "A new way to track government spending on technology". The Hill. Retrieved 7 Jan 2014.
- ^ a b Ricketts, Camille (19 August 2009). "First Andreessen Horowitz investment, Apptio, raises $14M". Venture Beat. Retrieved 20 March 2014.
- ^ a b "Apptio, Inc. Completes Acquisition of Digital Fuel From Skyview Capital". Apptio. Archived from the original on February 3, 2018. Retrieved March 12, 2018.
- ^ a b Hesseldahl, Arik (15 May 2013). "Apptio Lands $45 Million Series E From Janus Capital". All Things D. Retrieved 20 March 2014.
- ^ a b Dudley, Brier (6 November 2013). "Apptio founder Sunny Gupta on building the region's next big tech company". The Seattle Times. Archived from the original on 13 April 2014. Retrieved 20 March 2014.
- ^ a b "Apptio prices stock at $16 in IPO". 2016-09-22. Retrieved 2016-09-23.
- ^ Krazit, Tom (2018-11-11). "Vista Equity Partners to pay $1.9 billion in private-equity deal for Apptio". GeekWire. Retrieved 2018-11-12.
- ^ Tom Krazit (February 2, 2018). "Apptio acquires former VMware spinoff Digital Fuel for $42.5M". GeekWire. Retrieved April 30, 2022.
- ^ a b Malik, Yuvraj (June 26, 2023). "IBM to buy software co Apptio for $4.6 bln to bolster cloud offerings". Reuters.
- ^ a b Geraldo, Renata (2023-08-14). "Tech giant IBM finishes $4.6 billion acquisition of Bellevue firm". The Seattle Times. Retrieved 2023-08-14.
- ^ Kugiya, Hugo (December 13, 2013). "Paul McLachlan: Winner 2013 Innovator Award". Puget Sound Business Journal. Retrieved May 10, 2017.
- ^ Cook, John (November 15, 2007). "Repeat Entrepreneur Forms Apptio, Scores $7 Million". Seattle Pi. Retrieved May 10, 2017.
- ^ Wauters, Robin (August 31, 2010). "Apptio Raises $16.5 million From Andreessen Horowitz, Greylock and Others". TechCrunch. Retrieved May 10, 2017.
- ^ Coldewey, Devin (March 15, 2012). "Apptio Raises Another $50 Million in Series D Round". TechCrunch. Retrieved May 10, 2017.
- ^ Francis, Hannah (25 March 2014). "Apptio partners with UXC for Australian launch". The Australian. Retrieved 11 April 2014.
- ^ Demmitt, Jacob (December 8, 2015). "Apptio Opens its 11th Office With New Engineering Center in Denver". GeekWire. Retrieved May 10, 2017.
- ^ "Apptio Expands Global Presence with New Office in France". Prnewswire. March 24, 2016. Retrieved May 10, 2017.
- ^ "Apptio Enters into Definitive Agreement to be Acquired by Vista Equity Partners for $1.94 Billion - Apptio". Retrieved 2021-08-23.
- ^ "Apptio buys Cloudability for cloud cost optimization".
- ^ "Apptio opens first Centre of Excellence in India to help fuel digital transformation". News Minute. August 22, 2019. Retrieved May 6, 2022.
- ^ "LeanIX Announces Technology Partnership with Apptio to Deliver Key Data Analytics for IT Spending". businesswire. 5 May 2020. Archived from the original on 2020-05-27. Retrieved 15 June 2020.
- ^ Maria Deutscher (February 11, 2021). "Apptio acquires Targetprocess to help enterprises plan IT investments". Silicon Angle. Retrieved May 6, 2022.
- ^ "Apptio Unifies Product Experience to Support Digital-First Strategies". Yahoo. April 6, 2021. Retrieved May 6, 2022.
- ^ "Apptio Opens New Product Innovation Center in Poland to Attract Top Tech Talent". Markets Insider. August 10, 2021. Retrieved May 6, 2022.
- ^ "Apptio teams up with Microsoft to provide end-to-end visibility on the cloud". Back End News. December 28, 2021. Retrieved April 30, 2022.
- ^ "Apptio and IBM Announce Collaboration to Help Accelerate Enterprise Transformation". HPC. October 12, 2021. Retrieved April 30, 2022.
- ^ a b "Apptio US SEC S-1 Registration Statement". Blog post. Apptio.
- ^ "S-1". www.sec.gov. Retrieved 2016-09-30.
- ^ Parkhurst, Emily (6 June 2013). "Apptio CEO: We want to be the next Pacific NW tech icon". Puget Sound Business Journal. Retrieved 20 March 2014.
External links
[edit]- Official website
- Historical business data for Apptio Inc.:
- SEC filings
Apptio
View on GrokipediaHistory
Founding and Early Development
Apptio was founded in 2007 in Bellevue, Washington, by Sunny Gupta, who serves as CEO, along with Paul McLachlan and Kurt Shintaffer, who became the company's CFO.[8] The trio, experienced in enterprise software, aimed to address the challenges of managing escalating IT costs in large organizations by developing software that provided greater visibility and control over technology investments.[9] This founding vision was influenced by the growing complexity of IT environments, where enterprises spent over $3.1 trillion globally on technology in 2007, yet struggled to align those expenditures with business outcomes.[9] In November 2007, shortly after incorporation, Apptio secured its initial $7 million Series A funding round, led by Madrona Venture Group and Greylock Partners, with participation from Shasta Ventures.[10] This capital enabled the company to build its core technology platform during its stealth phase, focusing on cloud-based tools for Technology Business Management (TBM), a framework designed to help enterprises model, analyze, and optimize IT costs.[11] Early development emphasized creating scalable, on-demand software that integrated financial and operational data to deliver actionable insights, setting the stage for Apptio's differentiation in the IT financial management space.[9] Apptio emerged from stealth mode on June 9, 2008, launching its flagship on-demand IT Cost Transparency solution, which provided enterprises with tools for IT benchmarking, cost modeling, and service-level visibility through features like visual analytics and a "Bill of IT" reporting mechanism.[9] This product centered on TBM principles to enable better decision-making around IT spending, helping organizations track utilization and communicate technology value to business stakeholders.[9] By 2009 and 2010, Apptio experienced rapid early growth, securing its first major customers among Fortune 500 companies in the technology and finance sectors, including BNP Paribas and Blue Cross Blue Shield, as well as early adopters like Finlay Enterprises and Alaska Airlines.[12] The company's IT spend under management expanded significantly, reaching over $3 billion in 2009 and surpassing $50 billion by the end of 2010, reflecting adoption by more than 60 customers, several of which were Fortune 1000 enterprises seeking to optimize their multimillion-dollar IT budgets.[13][14][15]Public Listing and Private Equity Ownership
Apptio completed its initial public offering (IPO) on September 23, 2016, listing on the NASDAQ stock exchange under the ticker symbol APTI. The company priced the offering at $16 per share, raising approximately $96 million in net proceeds.[16][17] This marked a significant milestone for the enterprise software firm, enabling further investment in growth initiatives following years of private funding. As of June 30, 2016, Apptio had 694 full-time employees.[18] In the period following the IPO, Apptio demonstrated robust expansion. Fiscal year 2017 revenue reached $188.5 million, reflecting a 17.4% increase from the prior year, driven by strong demand for its Technology Business Management (TBM) solutions.[19] Sunny Gupta continued as CEO throughout this phase, maintaining leadership continuity from the company's founding.[4] On November 11, 2018, Apptio announced its acquisition by Vista Equity Partners for $1.94 billion, or $38 per share in cash, representing a 53% premium over the unaffected stock price.[4][20] The transaction, which delisted the company from NASDAQ, was completed on January 10, 2019, transitioning Apptio to private ownership.[21] Under Vista's ownership, Apptio emphasized product innovation, such as enhancements to its cloud-based TBM platform, and international market expansion, particularly in the Asia-Pacific region where revenue grew 45% year-over-year in 2020.[22] Revenue increased to approximately $300 million by 2020, supported by a compound annual growth rate of 11-13% from 2018 onward, with the employee base expanding to 1,200.[23] By this time, the company served around 550 customers, predominantly large enterprises across industries like finance and technology.[24]Acquisition by IBM and Recent Developments
On June 26, 2023, IBM announced its acquisition of Apptio from Vista Equity Partners for $4.6 billion in cash, aiming to bolster its capabilities in IT financial management and cloud optimization.[25][23] The deal was completed on August 10, 2023, after obtaining necessary regulatory approvals, marking Apptio's transition into IBM's portfolio as a key asset for enterprise technology management.[5] The strategic rationale behind the acquisition centered on enhancing IBM's hybrid cloud and IT management offerings by incorporating Apptio's FinOps and cost optimization tools, enabling deeper automation and actionable insights for enterprise IT operations.[25][26] This move was intended to address growing demands for multi-cloud cost governance, allowing IBM customers to optimize resource allocation across hybrid environments while integrating financial transparency into application management and observability workflows.[27] Post-acquisition, Apptio was rebranded as IBM Apptio, operating as an IBM company to align with the parent organization's branding and ecosystem.[5] It has been incorporated into IBM's broader platforms, including Cloud Pak for Data for unified data management and Watson for AI-enhanced analytics, facilitating seamless cost modeling and predictive insights in hybrid IT setups.[27][28] In recent developments, IBM Apptio expanded its ecosystem through a September 2024 partnership with EY, combining Apptio's software with EY's consulting services to provide joint solutions for enterprise technology spend visibility and management, including IT cost modeling for transactions.[29] On November 4, 2025, Apptio launched next-generation FinOps solutions integrating IBM Cloudability and IBM Kubecost, designed specifically for AI-era cloud management to offer end-to-end visibility and optimization across multi-cloud environments amid rising AI-driven costs.[7] Additionally, in 2025, Apptio released version 5.7 of its Planning application on September 8, featuring updated integrations that support code-based identifiers for dimensions like vendors, locations, and roles, alongside enhanced connectivity with IBM tools such as Turbonomic for resource optimization and Instana for observability.[30][31][32] These updates aim to streamline financial planning and IT budgeting by unifying cost data with performance metrics in dynamic cloud infrastructures.[30]Products and Services
IT Financial Management Solutions
Apptio's IT Financial Management (ITFM) solutions, primarily delivered through the IBM Apptio platform, provide organizations with tools to gain visibility into technology spending, model costs accurately, and align IT investments with business priorities.[33] The platform integrates financial and operational data from diverse sources, enabling IT leaders to make data-driven decisions that balance cost control and innovation.[3] Core to these solutions is the ability to create a unified view of on-premises, cloud, and hybrid IT expenses, supporting the Technology Business Management (TBM) framework for standardized cost transparency.[34] The IBM Apptio suite includes modular offerings such as Essentials, which delivers streamlined reports and prescriptive datasets for rapid cost allocation and insights within 30 days; Standard, featuring customizable reports, advanced planning capabilities, and access to TBM Studio for flexible modeling; and ITFM + Strategic Portfolio Management, which combines costing with portfolio optimization via integration with IBM Targetprocess.[33] Key features encompass automated data ingestion from over 350 source systems, including ERP platforms like SAP and Oracle; customizable cost allocation models that allow unrestricted hierarchies for accurate chargeback and showback; and interactive dashboards that provide real-time visualizations for IT finance teams to monitor spend and performance metrics.[33] These elements facilitate IT benchmarking against industry peers, detailed cost modeling for services and assets, and management of service catalogs to track IT offerings and their associated expenses.[35] Target use cases for these solutions focus on empowering chief information officers (CIOs) to align IT expenditures with business outcomes, such as optimizing budgets to achieve 3-5% annual savings, accelerating forecasting processes by up to 75% with less than 1% variance, and rationalizing application portfolios for over 25% reductions in redundant assets.[33] For instance, organizations use the platform to uncover hidden costs, including shadow IT expenditures, through comprehensive visibility that improves stakeholder alignment and precise cost control.[36] The solutions have evolved since Apptio's initial ITFM offerings in 2008, with significant enhancements in 2018-2020 introducing AI-driven forecasting and automation to handle complex, multi-cloud environments.[37] Adoption is widespread among Fortune 1000 enterprises, with Apptio serving over 1,800 customers globally whose collective technology spend exceeds $650 billion annually, and more than 70% utilizing the platform for core ITFM functions like costing and planning.[38][39] Examples include Liberty Mutual achieving €2.5 million in savings through agile portfolio transitions and Hyland reducing cloud costs via integrated optimization.[40][41]Cloud and FinOps Tools
Apptio's cloud and FinOps tools focus on enabling organizations to govern cloud costs through collaborative financial management practices, with significant enhancements following IBM's 2023 acquisition of Apptio. These solutions emphasize real-time visibility, cost optimization, and integration across multi-cloud environments, aligning IT operations with business outcomes in dynamic cloud landscapes.[42] A cornerstone of Apptio's offerings is IBM Cloudability, originally acquired by Apptio in 2019 and now integrated into IBM's broader FinOps portfolio. This platform delivers real-time cloud spend visibility and management across major providers including AWS, Azure, and Google Cloud, supporting FinOps practitioners with tools for budgeting, forecasting, and governance. Recognized as a Leader in the 2025 Gartner Magic Quadrant for Cloud Financial Management Tools, Cloudability helps teams achieve operational efficiency by providing customizable dashboards and allocation rules.[43][44][45] Complementing Cloudability is IBM Kubecost, an open-source tool for Kubernetes cost allocation that IBM acquired in 2024 and integrated into Apptio's FinOps suite. Kubecost enables precise cost monitoring and optimization in containerized environments, offering installation in under five minutes and bidirectional data sharing with Cloudability for a unified view of hybrid cloud expenses. This integration supports teams in allocating costs to specific namespaces, pods, and services, reducing surprises in Kubernetes workloads. In November 2025, Apptio released Kubecost 3.0 with enhanced GPU-specific metrics for AI workloads.[46][47][48] Apptio's FinOps capabilities include automated tagging via Tag Explorer, which visually maps tag usage to identify untagged resources and enforce compliance; AI-backed anomaly detection that alerts on significant spend changes; and optimization recommendations for rightsizing resources. These features typically enable 15-25% savings in cloud costs by promoting accountability and efficiency, as evidenced in deployments where organizations automated container optimization and GPU monitoring.[49][50][7] Post-2023 developments have expanded these tools for AI-driven workloads through integrations with IBM Instana for combined cost and observability metrics, and with IBM Turbonomic for automated resource optimization in multi-cloud setups. In November 2025, Apptio launched Cloudability Governance in public preview, integrating with Terraform for cost estimation, policy compliance, and automated monitoring. These enhancements allow teams to visualize application performance alongside expenses, facilitating proactive adjustments in high-demand AI environments.[32][51][48] In practice, Apptio's tools have empowered financial firms to manage multi-cloud portfolios effectively; for instance, Securian Financial accelerated its cloud transformation with Cloudability's multi-cloud support, while UBS leveraged FinOps practices for cross-departmental cloud enablement and cost transparency. Similarly, BMO used these solutions to dissect application costs and align spending with business priorities, demonstrating unified reporting for hybrid environments.[52][53][54]Planning and Analytics Applications
IBM Apptio Planning is a cloud-based platform designed for annual IT budgeting, enabling organizations to perform scenario modeling and what-if analysis to optimize technology investments.[55] It unifies financial data from various sources, automating workflows to streamline expense budgeting and forecasting processes.[55] This tool supports continuous, adaptive planning by allowing users to simulate different financial outcomes based on variables such as resource allocation and market changes.[55] The platform's analytics features include seamless integration with business intelligence tools like Tableau, facilitating advanced data visualization and reporting.[55] Predictive algorithms are incorporated to forecast demand and resource needs, enhancing decision-making accuracy.[55] Additionally, built-in ROI calculators help evaluate the return on technology investments by quantifying potential benefits against costs.[55] Key workflows in IBM Apptio Planning emphasize collaborative planning across IT, finance, and business units, with automated data ingestion to support real-time input and adjustments.[55] It enables agile budgeting cycles through repeatable processes that incorporate actual expenses into ongoing forecasts, reducing manual aggregation efforts.[55] In 2025, Release 5.7 introduced enhancements for end-to-end visibility, including code-based identifiers for vendors, locations, roles, and custom dimensions to improve data integrity and integration with tools like Apptio Costing.[56] These updates combine cloud spend data via IBM Cloudability with traditional IT expenditures, providing a unified view for comprehensive planning.[55] Improved grouping options and in-app training further support variance analysis and collaborative workflows.[56] Clients using IBM Apptio Planning have reported significant improvements, such as CoBank reducing planning time by 75% and enabling monthly forecasting, while Micron achieved a budget variance of 0.5%.[57][58] CHRISTUS Health cut its planning cycle by 90% and reduced variance by 50%, demonstrating enhanced budget accuracy and faster cycles overall.[59]Technology Business Management
TBM Framework
The Technology Business Management (TBM) framework is a methodology designed to map IT costs to business services and outcomes, facilitating value-based decision-making by providing transparency into technology investments and enabling organizations to align IT spending with strategic priorities.[60][61] Developed to address the complexities of managing IT as a business function, TBM shifts the focus from traditional cost-tracking to a holistic view that integrates financial data with operational performance, allowing leaders to optimize resources, measure ROI, and drive business agility. The framework, introduced in "Technology Business Management: The Four Value Conversations," has evolved into its second version to address contemporary challenges including cloud computing, AI, and sustainability.[34] At its core, the TBM framework rests on five foundational pillars that support the establishment and sustainability of a mature TBM practice:- Data, providing financial, operational, and contextual data for TBM models;
- Tools, offering platforms for data gathering, analysis, modeling, and reporting;
- Methods, defining standard processes and methodologies for TBM application;
- Roles, identifying people and teams, including the TBM Office, for execution;
- Change, focusing on organizational change management to embed TBM in decision-making.[61] These pillars work interdependently to create a unified approach for evaluating and communicating IT's contribution to business value.[60]
