IBM has agreed to acquire financial and operational IT management and optimisation (FinOps) software developer Apptio for US$4.6 billion.
The acquisition will advance IBM’s IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
Apptio’s solutions integrate and simplify visibility into technology spend across hybrid and multi-cloud environments, labour and associated resources.
“Apptio’s offerings combined with IBM’s IT automation software and watsonx AI platform, gives clients the most comprehensive approach to optimise and manage all of their technology investments,” said Arvind Krishna, CEO and Chairman of IBM.
The acquisition of Apptio is a continuation of IBM’s focus and investment in hybrid cloud and AI and is expected to drive significant synergies across several key growth areas including automation, Red Hat, IBM’s broader AI portfolio, and IBM Consulting, as well as strong partnership with other leading systems integrators such as Accenture, KPMG, Deloitte, and EY.
IBM will also deliver new innovation by augmenting watsonx with Apptio’s anonymised FinOps data. Additionally, Apptio is expected to benefit from IBM’s long-established scale and reach, working with clients and partners across more than 175 countries.
“Our customers are evolving to a complex digital-first, hybrid world where technology investments are distributed and decentralised 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,” said Sunny Gupta, Co-founder and CEO of Apptio.
Subject to regulatory approvals and other customary closing conditions, the deal is expected to close in the latter half of 2023.
Image: Marcel Elia from Pixabay
Entelechy Asia 