Integration of Comprehensive Benchmarks Extends Existing Solution to Enable IT Organizations to Pinpoint Cost Reduction Opportunities
Bellevue, Wash. – March 31, 2009 – Apptio, the market-leading provider of on-demand IT Cost Optimization software, today announced a new product capability that integrates multi-industry, in-depth IT benchmarks to help enterprise IT departments gauge their current performance and accurately target their cost optimization initiatives. Apptio’s current on-demand software provides companies visibility into the total cost of IT services, a platform for tracking and managing costs, service levels and operational metrics, and the ability to quantify the ROI of new IT investments or alternative delivery models. The new benchmarking functionality announced today complements this internal cost transparency with an automated way to easily compare those costs to high level and detailed IT service benchmarks representing a broad set of companies and industries.
Enterprises of all sizes and within all industries are routinely looking for ways to reduce IT costs. However, without comparing their costs to industry benchmarks, companies are unable to determine whether IT costs are high or low. Historically, benchmarking has been a more manual, point-in-time effort and customers have struggled to compare their internal calculations of IT service costs to those of industry benchmarks. Now, Apptio’s solution automates the ongoing calculation of internal IT service costs, and offers an easy apples to apples comparison with broadly representative industry benchmarks at summary and unit cost levels. Customers can then easily track their ongoing IT performance against a set of up-to-date benchmarks. This new capability truly brings an unprecedented level of ease-of-use, automation and accuracy to benchmarking that is a welcome complement to existing methodologies.
Howard Rubin, CEO of Rubin Worldwide, Professor Emeritus of Computer Science at Hunter College, and an MIT CISR Research Affiliate and Gartner Senior Advisor, agrees that integrated benchmarking offers substantial benefits to enterprises.
“Companies can become more efficient in IT operations and continually optimize their costs by benchmarking against best in class organizations and monitoring the success of cost reduction initiatives over time,” said Dr. Howard Rubin. “By integrating benchmarking into their IT cost transparency software, Apptio is addressing a critical need in IT performance financial management. This will enable enterprises to make better decisions, and achieve higher ROI from their IT investments both immediately and longer-term.”
Apptio’s solution is a great complement to consulting-led benchmarking engagements and helps provide deep insight into the current performance of an IT organization, identifying where cost optimization opportunities lie. The Apptio software provides an easy-to-use, scalable and cost-effective solution for accurately analyzing costs, assessing value and optimizing technology spend. With the new integrated benchmarking capability, enterprises can track performance against macro-level spending, operational and unit cost metrics, including benchmarks such as cost-per-server, cost-per-network port, or cost-per-tier 1 gigabyte of storage. Internal data is collected on an ongoing basis to monitor trend differences, track progress against cost reduction initiatives, and be available for additional ad-hoc analysis after initial projects are completed. The benchmark data is regularly updated so Apptio customers always have the most recent data at hand to help make better business decisions.
“In this economy, companies worldwide are looking for opportunities to cut costs and improve efficiency,” said Sunny Gupta, CEO and co-founder of Apptio. “Benchmarking IT’s performance against the industry is a critical component of a good cost optimization strategy, but to date has been a labor intensive, point-in- time activity. Apptio’s new integrated benchmarking automates a customer’s ability to make actionable comparisons to broadly representative industry cost and performance metrics and confidently target their cost reduction efforts in the areas with the highest potential return.”
Apptio’s benchmark data is compiled from its global survey work, including clients which span companies across all industry segments. Companies range in size from lower mid-market to enterprise, with approximately half with revenues of $1 billion or more. Data includes high level IT performance metrics, operations metrics and unit cost driver metrics along virtually all IT products and services.
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.