Andreessen Horowitz and Shasta Ventures join Greylock and Madrona to Accelerate Growth of the Leading IT Financial Management Provider
Bellevue, Wash. – August 18, 2009 – Apptio, the leading provider of on-demand IT Financial Management software, today announced a $14 million series B round of funding, adding two new major investors, the Andreessen Horowitz Fund and Shasta Ventures, to existing investors, Greylock Partners and Madrona Venture Group. Investor interest was extremely high in reaction to the tremendous market traction Apptio has demonstrated throughout the Global 2000 and across industry sectors. The additional funding will be used to accelerate Apptio’s product development, sales and marketing efforts, extending the company’s leadership in IT Financial Management and ability to realize the vision of helping CIOs everywhere more effectively Manage the Business of IT.
“Apptio has the critical application set to usher in a new era for IT management. Their solution addresses the biggest challenge for today’s CIO – establishing the financial and performance management discipline necessary to run the IT organization like a business,” said Marc Andreessen, second-time investor in Apptio and partner of the Andreessen Horowitz Fund. “Apptio has the right mix to become a major market force: a deep team with proven success in IT management, early technology leadership addressing real world problems, a $1 billion-plus market opportunity, and a winning SaaS delivery model. We’re excited to have them as one of our first investments in the new fund.”
In today’s world there are tremendous market and technology forces pressuring CIOs to transform their organizations from technology cost centers to internal service providers. The pressure to deliver the highest quality of service at the lowest possible price is critical, as business leaders now have a variety of options external to internal IT. SaaS, outsourcers and cloud computing providers offer very compelling options, forcing CIOs to understand their own cost per IT service. In addition, the adoption of game changing technologies such as virtualization are adding to the pressure for IT to adopt a shared services model, which includes taking on direct financial responsibility for a growing proportion of a company’s technology assets. With this new responsibility, CIOs must thoroughly understand the fully-loaded cost of their IT services and the key cost drivers to stay competitive, systematically lower costs, price or allocate costs fairly and assure CEOs that they are providing a positive ROI to the business.
Clearly, the role of the CIO is changing. As IT transforms into a service provider organization, the CIO will spend more time managing the financial performance of their “business” and will need to adopt the best practices and processes of leading P&L managers. With many Fortune 1000 companies spending over $1 billion on IT, often as much as any other function within the corporation, it is time that CIOs have the financial management and planning systems comparable to those used by manufacturing and supply chain executive for decades to run their business.
Apptio provides CIOs of Global 5000 IT organizations with the insight they need to manage the cost and performance of IT services, reduce costs and make better decisions, automate financial management processes, and better communicate the value of IT. Since the company’s launch in June 2008, Apptio’s customer list has grown to include Alaska Airlines, Blue Cross Blue Shield, BNP Paribas, Cisco, EMD Chemical, Motricity, NYK Business Systems, Purdue University, Saint Luke’s Health System, Starbucks, SumTotal and several other companies. Collectively, these companies are saving millions of dollars by changing the way IT manages the financial aspect of their organizations, through deep analysis of the cost drivers of IT, better decisions based on solid ROI calculations, clear cost transparency to the Lines of Business through a Bill of IT, and more accurate forecast and management of IT spend.
“The market for Financial Management for IT is exploding as every CIO is looking to gain transparency into the costs of IT in order to become a more effective service provider to the business,” said Sunny Gupta, co-founder, president and CEO of Apptio. “Securing new funding in this very tough economic climate is a great demonstration of the adoption of the Apptio on-demand solution by large numbers of customers across all verticals. This funding will allow Apptio to build the next large on-demand enterprise software company addressing the business needs of the CIO.”
Apptio is the leading independent provider of on-demand Technology Business Management (TBM) solutions for managing the business of IT. Apptio enables IT leaders to manage the cost, quality and value of IT Services by providing deep visibility into the total cost of IT services, communicating the value of IT to the business through an interactive Bill of IT™, and strategically aligning the planning, budgeting and forecasting processes. Apptio's TBM solutions play a critical role in helping companies understand and drive chargeback, virtualization, cloud and other key technology initiatives. Global enterprise customers such as Bank of America, Boeing, JPMorgan Chase, Microsoft, St. Luke's Health System, and Swiss Re rely on Apptio® products and services to reduce costs and align IT with business priorities. For more information, visit the Apptio website or the Apptio blog.
Barokas PR for Apptio