Financial Services

Reduce Costs and Improve Productivity

In the economic maelstrom hitting Wall Street today, it is ever more important that IT departments do their part to reduce cost and provide transparency to how IT costs are allocated and spent. It’s a no holds barred environment. Financial services companies are looking to divest failing departments and services, searching for ways to cut operational costs across the board, and overall needing a clear picture on how much is spent on providing IT services. It’s in times like this when CIOs and IT managers need a clear picture of their IT costs and how shared service models are allocated to various departments, functions and IT services. It’s no surprise then that many of Apptio’s customers come from the financial services sector.

IT Cost Transparency Enables Better Decision in Managing the Business of IT

Apptio helps IT organizations model their IT costs to provide a Total Cost of Ownership (TCO) per IT Service, per Line of Business (LOB) or per data center. Apptio’s unique software automates cost modeling and allocation making it quick and easy to get an accurate picture of the IT cost structure. Once a model has been created, IT managers can use Apptio’s analytics engine and custom reporting capabilities to compare costs across services, infrastructure types, data centers or geographies in order to find areas for cost reduction.

In a divestiture or acquisition situation, it is critical to understand exactly how much cost will be saved or incurred for a given department or service. Shared service models make this particularly difficult as servers, network switches and data centers often cannot be easily divided. And license agreements, SLAs and data centers will likely change with significant impact to the total cost of IT service.

Apptio models these parameters and enables “what if” scenario planning for analyzing the impact of changes to the IT cost structure based on M&A activity.

Two Wall Street firms considering a merger are looking to Apptio to gain a better understanding of the IT costs per service. By modeling all contributing costs such as application support, data center facilities, power, cooling, software licensing, IT administrative support, storage, server and network costs, they are able to understand exactly how much they pay per IT service.

With Apptio, customers such as Home Street Bank, are able to:

• Accurately understand their cost per IT service, Line of Business or application
• Analyze cost drivers to find new areas for IT cost reduction
• Quantify ROI and justify new IT projects based actual cost data and track project success over time
• Support M&A or divestiture due diligence when it includes estimating IT service costs
• Align IT resources around highest value, lowest cost services
• Build an accurate model in a matter of days, not months, for quick decision support

Getting Started on IT Cost Transparency

Many companies in all sectors are turning to IT Cost Transparency as means to optimizing IT operational efficiency and finding new areas for cost reduction. Nowhere is this more necessary than in the financial services companies. Apptio simplifies the modeling of IT costs and provides the insight to find and successfully propose new cost reduction projects. To get started today contact us for a Free Demo and on-site Proof of Concept. Or to learn more download our solution whitepaper or the Home Street Bank customer case studies.