US-based tech giant IBM recently announced its plans to acquire Apptio, an IT management company.
The cash deal involved $4.6 billion from Vista Equity Partners.
IBM aims to strengthen its IT automation, observation, and operations management offerings through this acquisition which is set to be finalized by the second half of 2023.
Capitalizing on the rising popularity of cloud and IT management platforms
Apptio is a Washington-based software company specializing in SaaS-based software solutions that help companies manage their IT spend and resources effectively.
With over 1400 employees, Apptio has more than 1800 clients across the globe, including 60% of Fortune 500 companies.
Apptio has three core offerings:
ApptioOne: This solution unifies financial and IT data to create insights that help organizations in planning, budgeting, and executing their IT investments.
Apptio Cloudability: This solution helps manage cloud billing, costs, and optimizations for cloud environments. It helps in rightsizing the resources for optimal allocation.
Apptio Targetprocess: This is a platform that helps organizations manage their programs, resources, and workflows to accelerate projects and innovations.
These products fit into IBM’s strategy of creating holistic solutions for enterprise IT management and hybrid cloud storage.
IBM plans to add Apptio to its existing set of enterprise management and observability solutions, such as IBM Tubronomic and IBM Instana. The long-term plan also includes integrating these solutions with IBM Watson, IBM’s AI solution.
Growing demand for cloud management services
The last few years have seen aggressive investments in digital transformation and cloud computing. But managing the cloud is turning out harder than expected as companies struggle to get a handle on multiple vendors, billing cycles, and SaaS solutions.
At the beginning of the year, we had predicted that cloud management and cloud cost management would be top priorities for companies.
This year, there seems to be a focus on optimizing cloud and IT environments as companies tighten their spending. Cloudflation, or the rising cost of cloud services, has increased the emphasis on cost management.
IBM’s acquisition of Apptio is a significant move by the tech giant to cater to this growing demand for cloud management and observability solutions. We see other companies also investing in this space.
In March 2023, Hewlett Packard Enterprises (HPE) announced its plan to acquire OpsRamp, a SaaS platform that provides enterprise IT management and cloud cost management solutions.
As the complexity of IT infrastructure grows, IT management, cloud management, and monitoring solutions will be crucial to ensure companies can control their systems and derive the best from their investments.
Learn more about FinOps tools and how they help optimize your cloud expenses.
Rachana is a Research Principal at G2 focusing on cloud. She has 11 years of experience in market research and software. Rachana is passionate about cloud, ERP, consumer goods, retail and supply chain, and has published many reports and articles in these areas. She holds an MBA from Indian Institute of Management, Bangalore, India, and a Bachelor of Engineering degree in electronics and communications. In her free time, Rachana loves traveling and exploring new places.
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