Late last week, Apptio announced that the company raised an additional $3.5 million in capital from Cisco to close our Series C round of financing. This brings the total amount raised in this latest round to $20 Million with a total of $41 million raised to date. Perhaps more significant than the capital investment itself, was the strategic agreement that was forged between Cisco and Apptio. Since making this announcement, I’ve been asked one fundamental question: why take an investment from Cisco? I thought I would answer that here.
A long time customer of Apptio, Cisco is driving major transformational change in IT by leveraging Apptio’s Technology Business Management solution. Cisco is now demonstrating how IT can be delivered as a defined “services portfolio” as opposed to offering raw infrastructure and product capabilities to each businesses. To get there, they believed they needed a “Rosetta Stone” to translate these raw capabilities to the business. By helping Cisco with this translation, we have converged cost, quality and value data into useful information that has helped them allocate $300M from “Running the Business” to “Changing the Business”. This has had a demonstrable impact in making the supply and demand of their IT services more productive and agile.
Because of this massive internal change, Cisco saw this as a strategic opportunity to invest in Apptio and enter into a commercial go-to-market relationship. And as a result of this agreement, Cisco will resell Apptio solutions through its global sales channel, providing Apptio with greater access to enterprise accounts via one of the world's largest infrastructure companies while enabling Cisco to deliver financial transparency of IT services to IT executives. In addition, Cisco will be enabled to resell Apptio’s solutions for costing IT infrastructure for Networking, Virtual Data Centers, and Collaboration.