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About

Apptio is the leading provider of on demand IT Cost Optimization solutions.  Apptio’s IT Cost Optimization solutions provide greater visibility into the cost, utilization and operations of IT products and services so that businesses can identify ways to reduce IT costs, make better IT decisions and benefit from more proactive IT demand management.  Capabilities include: template-driven IT cost modeling to facilitate the collection and modeling of financial data, interactive reporting and analytics to help businesses organize the data to make better decisions, and a consistent and auto-updated system for IT financial data ensuring better alignment of IT and business, which maximizes IT’s value to the corporation.  IT organizations such as Alaska Airlines, Blue Cross Blue Shield of Kansas and Home Street Bank use Apptio’s IT cost analysis capabilities to achieve greater visibility and maximize the return on their IT investments as part of their IT performance management strategies.  Founded in 2007 by an executive team with over 50 years of experience in systems management software, Apptio is backed by Greylock Partners, Madrona Venture Group, Marc Andreessen, Ben Horowitz, Ignition Ventures and Shasta Ventures.

Solution

The Apptio on-demand offering encapsulates knowledge of IT to provide enterprises transparency into the cost of IT.  With the Apptio solution companies benefit from:

• Increased visibility into the costs, utilization and operations of IT products and services
• Powerful data analytics and “What If” analysis to identify cost saving opportunities and make better IT decisions
• An ability to create a “Bill of IT” to more effectively communicate the value of IT to the business and begin proactively managing demand for IT services

Partners

Technology Partners: BMC, Citrix, VMware, Microsoft, IBM

Funding

Apptio is a privately-held company backed by Greylock Partners and Madrona Venture Group.  Additional investors include Ignition Ventures, Shasta Ventures, Marc Andreessen, Ben Horowitz and Frank Artale.

Background

The executive team of Apptio has over 50 years of experience in the IT infrastructure and systems management market from Mercury, HP, Microsoft, Citrix, Opsware, Compuware, and IBM. Co-founder and CEO Sunny Gupta was the former EVP of Products at Opsware and previously co-founded and grew iConclude to become a pioneer in the IT runbook automation market and led it to its acquisition by Opsware.   Coming off of the Opsware and HP acquisitions, the founding team worked broadly with enterprise IT customers to understand deeply and begin defining a solution for one of their greatest pain points – getting better transparency into the costs of IT.  With development underway in late 2007, the team raised an initial round of funding, began product development, and has been experiencing significant traction with early customers from across the Global 5000.

Analysts

“Globalization, consumerization, new competitors and new service models are radically ‘changing the shape of IT’. IT leaders must develop greater transparency into the costs, utilization and operations of their IT services in order to optimize their IT investments and evolve from being technology managers to being stewards of business technology.”

Barbara Gomolski
Research Vice President
Gartner

“The size and strategic importance of IT today requires senior IT leaders who can effectively articulate the business value of their investments. These leaders need solutions that provide them greater visibility into the costs, utilization and service levels associated with the IT services they deliver so they can make the right investment and optimization decisions and more effectively partner with the business to maximize the value of IT.”

Donna Scott
Vice President and Distinguished Research Analyst
Gartner

“There are many advantages to considering the SaaS model for IT financial management, including financial analytics and budgeting. A few providers are focusing on improving accuracy and consistency in IT finance, assembling data models for analysis and providing collaborative models with business users to identify cost-savings initiatives.” said John E. Van Decker, Research Vice President, Gartner. “SaaS models provide quick implementation, low investment and less need for IT infrastructure, as compared with traditional on-premises applications.”

John von Decker
Research VP
Gartner

“Information Technology is a competitive lever that can drive operational efficiency, product leadership and business agility if managed effectively.” Apptio’s IT cost transparency solution is addressing a critical market need by enabling customers to increase visibility and proactively manage their technology economics to create real business value.”

Dr. Howard Rubin
Internationally Recognized Author, Researcher, Speaker, and Consultant in the Area of IT Performance Management
Rubin Worldwide

“Chargeback approaches that allocate IT costs based on some general algorithm such as revenues or headcount will remain controversial at best and dysfunctional at worst. IT chargeback must evolve from a cost recovery tool to a consumption-based decision support tool that increases IT transparency… and enables business managers to forecast demand, make linkages between IT costs and business value, and change consumption patterns.” ¹

Craig Symons
Vice President
Forrester Research

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