IBM announces $4.6bn acquisition of Apptio to bolster IT automation capabilities
IBM today announced a definitive agreement to purchase Apptio Inc., a leading company in IT financial and operational management and optimization (FinOps) software, from Vista Equity Partners for $4.6 billion.
This move is set to fast-track IBM’s IT automation capabilities and provide enterprise leaders with increased value from their technology investments.
The acquisition comes at a time when organizations are rapidly transforming digitally, causing IT environments to expand across public and private clouds with various service providers. In response to this complexity, companies are leveraging Apptio’s solutions for integrated visibility into technology spend across hybrid and multi-cloud environments.
By merging with IBM’s IT automation software and the Watson AI platform, Apptio will assist global businesses in managing and optimizing their enterprise IT spending.
Apptio is a recognized, profitable leader in technology business management and FinOps, with a growing client base of over 1,500, including more than half of the Fortune 100. Apptio’s three core offerings, ApptioOne, Apptio Cloudability, and Apptio Targetprocess, are all delivered as SaaS and aim at managing and optimizing cloud innovation and digital transformation expenditures.
IBM acquisition of Apptio. Photo courtesy of Pete McClymont/Wikimedia Commons.
Sunny Gupta — Apptio co-founder and CEO said: “Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralized but all innovation must be aligned with clear business outcomes.
“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 acquisition will further boost the capabilities of IBM’s IT automation software, including Turbonomic, Instana, and AIOps, creating a comprehensive technology business management platform. Apptio will also contribute $450 billion of anonymized IT spend data to IBM, offering new insights for clients and partners.
Arvind Krishna — IBM CEO and chairman said: “Technology is changing business at a rate and pace we’ve never seen before. To capitalize on these changes, it is essential to optimize investments which drive better business value, and Apptio does just that.
“Apptio’s offerings combined with IBM’s IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimize and manage all of their technology investments.”
IBM’s acquisition of Apptio is a part of the company’s continued investment in hybrid cloud and AI, expected to drive synergies across key growth areas like automation, Red Hat, IBM’s broader AI portfolio, and IBM Consulting. IBM also anticipates augmenting its Watson AI platform with Apptio’s anonymized FinOps data.
The deal, subject to regulatory approvals, is expected to close in the latter half of 2023.