Apptio Builds Upon Cost Transparency to Align Strategy around Key Pillars for Managing the Cost, Quality and Value of IT Services
Bellevue, Wash. - March 17, 2010 - Apptio, the leading provider of on-demand Technology Business Management (TBM) solutions, today announced the results of its annual Customer Advisory Board Summit. Fifteen marquis customers and advisors from Global 2000 enterprises gathered to provide strategic guidance and collaborate on the requirements for keeping IT aligned with the business.
The following three issues were cited most often: optimizing the cost structure of IT, measuring and delivering quality IT services, and improving communication and transparency with the business units. These issues were deemed critical to the evolving role of the CIO and the transformation of IT to a service provider. Based on this input, Apptio has intensified its commitment to providing customers with a comprehensive set of solutions to manage the cost, quality and value of IT services as defined by the emerging category of Technology Business Management.
"Every corporate function has a business management application, except for IT. Apptio has changed this imbalance by introducing a complete suite of applications for managing the business of IT," said Sunny Gupta, president, CEO and founder of Apptio. "To reduce costs and improve efficiency without impacting service levels, CIOs need a system to manage the cost, value and quality of IT services as a whole. Feedback from some of today's most progressive CIOs confirms that Apptio's approach to Technology Business Management will drive a new era in IT."
"IT needs to think about delivering IT services in the framework of a supply chain: How much does it cost to 'produce' and 'operate' our services? Are we competitive? How can we reduce cost and improve quality? And how can we ensure supply is aligned to demand?" said Rebecca Jacoby, CIO of Cisco. "Technology Business Management is a key ingredient to helping CIOs manage the business of IT and provide transparency into the cost of IT services to business leaders."
Together with its Customer Advisory Board, Apptio identified core principles which can be used by IT to align more effectively with the business. These principles include:
Achieve Visibility into the TCO of IT Services: Apptio Service Costing and IT Benchmarking provides IT leaders with deep visibility into the fully loaded costs of their IT services and their cost drivers. This comprehensive view enables organizations to quantify the financial impact of business decisions and to identify opportunities for cost optimization.
Measure quality and utilization of IT Services: Apptio's Service Quality and Utilization solution enables IT organizations to measure and track key metrics on quality of service and utilization of their IT services. This provides IT insight into capacity needs, helps identify underutilized services that are targets for consolidation, and provides actual usage data to drive true consumption based chargeback.
Communicate Value through a Bill of IT: Apptio Bill of IT enables IT leaders to communicate the value of IT services in a language the business understands. IT leaders can proactively engage in conversations with business leaders around the cost, quality, and consumption of each IT service, thereby changing the conversation from "why is IT so expensive" to "what can we do to optimize our costs and consumption."
Drive Decisions and Planning: Apptio Budgeting and Forecasting solutions enable IT leaders to leverage real-time financial, demand and consumption rates to drive decisions and planning in real time or over a period of time. As a result, IT leaders can cut costs and maximize their investment in IT services.
According to an independent report by Craig Symons, vice president and principal analyst at Forrester Research, "CIOs should embrace full cost transparency, which requires IT to operate like a service provider with a catalog of products and services aligned with its customers' needs, defined cost models for each service, an understanding of the demand drivers, and a process to track and invoice its customers based on their consumption of those services."*
Apptio's TBM solutions have been adopted by leading Global 2000 companies including Cisco, BNP Paribas, Starbucks and VW Credit. Companies that implement TBM often achieve a 10%-15% cost savings in under 12 months, greater productivity across their IT and Finance teams, and improved overall alignment of IT to business goals and priorities.
* "Best Practices In IT Financial Management," Forrester Research, Inc., November 6, 2009
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