{"id":94010,"date":"2023-06-26T22:08:08","date_gmt":"2023-06-26T22:08:08","guid":{"rendered":"https:\/\/www.techrepublic.com\/?p=4124733"},"modified":"2023-06-26T22:08:08","modified_gmt":"2023-06-26T22:08:08","slug":"ibm-to-acquire-apptio-for-4-6-billion-boosting-hybrid-cloud-and-ml-services","status":"publish","type":"post","link":"https:\/\/cloudnewshub.com\/?p=94010","title":{"rendered":"IBM to Acquire Apptio for $4.6 Billion, Boosting Hybrid Cloud and ML Services"},"content":{"rendered":"<div id>\n<p> The ApptioOne, Apptio Cloudability and Apptio Targetprocess services will join the portfolio of IBM acquisitions later this year. <\/p>\n<\/div>\n<div id>\n<figure id=\"attachment_4124800\" aria-describedby=\"caption-attachment-4124800\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4124800\" src=\"http:\/\/cloudnewshub.com\/wp-content\/uploads\/2023\/06\/ibm-to-acquire-apptio-for-4-6-billion-boosting-hybrid-cloud-and-ml-services.jpg\" alt=\"Apptio provides IT management software.\" width=\"1343\" height=\"712\"><figcaption id=\"caption-attachment-4124800\" class=\"wp-caption-text\">Image: Apptio<\/figcaption><\/figure>\n<p><a href=\"https:\/\/www.reuters.com\/technology\/ibm-nears-5-billion-deal-software-provider-apptio-wsj-2023-06-24\/\" target=\"_blank\" rel=\"noopener noreferrer\">IBM will put down $4.6 billion in cash<\/a> to acquire the business management and FinOps software company Apptio from Vista Equity Partners. Assuming all regulatory processes go smoothly, IBM expects the deal to close later this year.<\/p>\n<p>Jump to:<\/p>\n<h2 id=\"integration\">Apptio will integrate with IBM IT finance operations services<\/h2>\n<p>The acquisition is part of IBM\u2019s increasing efforts to bolster its machine learning and hybrid cloud offerings. Along with Apptio\u2019s products and people, IBM will now be able to find uses for $450 billion of anonymized IT spend data from Apptio\u2019s backlog. Apptio also has relationships with 60% of the Fortune 100, according to the company\u2019s website.<\/p>\n<aside class=\"pinbox right\">\n<h3 class=\"heading\">Must-read CXO coverage<\/h3>\n<\/aside>\n<p>IBM\u2019s IT automation software, such as Turbonomic, Instana and AIOps, will be able to integrate with Apptio data and services after the acquisition. This will enable IT teams to combine services into one \u201cvirtual command center\u201d that can keep track of spending across a company\u2019s entire tech stack, IBM said in a press release.<\/p>\n<p>IBM also plans to use Apptio services and data to bolster other services Big Blue has acquired over the years, including Red Hat and IBM Consulting, and its automation and AI portfolio in general. <a href=\"https:\/\/www.techrepublic.com\/article\/ibm-watsonx-studio-generative-ai\/\">IBM\u2019s watsonx AI training model<\/a> will specifically benefit from Apptio\u2019s anonymized FinOps data. Apptio has used machine learning since 2018 when ML was added to the Apptio Technology Business Management Unified Model.<\/p>\n<p>\u201cThe acquisition of Apptio is a continuation of IBM\u2019s deep focus and investment in hybrid cloud and AI and is expected to drive significant synergies across several key growth areas for IBM, including FinOps,\u201d Kareem Yusuf, senior vice president, product management and growth, IBM Software, told TechRepublic in an email.<\/p>\n<p>\u201cApptio has transformed how leading organizations optimize their IT spend and performance for better outcomes,\u201d said Robert F. Smith, founder, chairman and CEO of Vista Equity Partners, in a press release. \u201cWe are proud of these shared accomplishments and look forward to seeing Apptio further evolve with IBM.\u201d<\/p>\n<h2 id=\"apptio\">What is Apptio?<\/h2>\n<p>Apptio makes finance operations and business management software-as-a-service applications. It gives CTOs and\/or CFOs better visibility into their spending across different parts of their work, including hybrid and multicloud environments and labor. IT budget holders can then make decisions based on the data Apptio produces in order to improve operations and budgeting.<\/p>\n<p>Apptio was founded in 2007 and acquired by Vista Equity Partners in 2018. It has more than 1,300 employees. Its three core services are:<\/p>\n<ul>\n<li><strong>ApptioOne<\/strong>, which can be used to analyze, optimize and plan IT spending.<\/li>\n<li><strong>Apptio Cloudability<\/strong>, which provides financial management best practices to multicloud and SaaS infrastructure.<\/li>\n<li><strong>Apptio Targetprocess<\/strong>, which offers investment planning.<\/li>\n<\/ul>\n<p>Apptio services already integrate with Amazon Web Services, Microsoft Azure, Google Cloud Platform, Salesforce, ServiceNow, Oracle and SAP.<\/p>\n<p>Three recent acquisitions by Apptio also add more tools to IBM\u2019s tool belt: Apptio acquired Cloudability, Cloudwiry and TargetProcess within the last five years.<\/p>\n<h2 id=\"acquisition\">What does the acquisition mean for enterprise IT?<\/h2>\n<p>IBM\u2019s acquisition of Apptio comes partially in response to a growing need for technology companies to keep tighter leashes on budgets. IBM saw an under 1% year-over-year increase in revenue in Q1, Reuters reported. Apptio\u2019s services to help IT departments optimize how they spend money could be a smart investment in a time when economic uncertainty and slowing growth are on many business decision-makers\u2019 minds.<\/p>\n<p><strong>SEE: <a href=\"https:\/\/www.techrepublic.com\/article\/ibm-snags-polar-cloud-data\/\">IBM snatched up cloud data security management firm Polar Security<\/a> in May. (TechRepublic)<\/strong><\/p>\n<p>In addition, the acquisition goes hand-in-hand with the <a href=\"https:\/\/www.techrepublic.com\/article\/gartner-predicts-robust-cloud-market\/\">increasing use of hybrid cloud environments<\/a>, for which it can be difficult to find unified data.<\/p>\n<p>\u201cOur 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,\u201d explained Sunny Gupta, Apptio co-founder and CEO, in a press release.<\/p>\n<p> <!-- default newsletter at the end --> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The ApptioOne, Apptio Cloudability and Apptio Targetprocess services will join the portfolio of IBM acquisitions later this year. Image: Apptio IBM will put down $4.6 billion in cash to acquire the business management and FinOps software company Apptio from Vista Equity Partners. Assuming all regulatory processes go smoothly, IBM expects the deal to close later [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":94011,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77,641,40,783,635,79,84,430,692,27],"tags":[],"class_list":["post-94010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-banking","category-cloud","category-cloudsync","category-google-cloud-platform","category-ibm","category-machine-learning","category-oracle","category-salesforce","category-software"],"_links":{"self":[{"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=\/wp\/v2\/posts\/94010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=94010"}],"version-history":[{"count":0,"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=\/wp\/v2\/posts\/94010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=\/wp\/v2\/media\/94011"}],"wp:attachment":[{"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=94010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=94010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cloudnewshub.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=94010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}