Apptio

Market position

Apptio described itself as the company that established the TBM category and, as of 2013, the only provider focused solely on it. By 2023 it was characterized as a fast-growing FinOps/SaaS vendor with roughly 1,500 clients, including more than half of the Fortune 100; earlier Wikipedia figures cite approximately 550 customers. IBM cited Apptio's ability to offer multi-cloud integration as strategically attractive.

Apptio framed itself as the creator and sole dedicated provider of the TBM category, offering a purpose-built management system for the CIO analogous to systems used by other enterprise executives, combined with a defined methodology and the TBM Council practitioner community. Its software applies machine learning to unify cost and utilization data across on-premises, vendor, project, agile and cloud sources.

Technology

SaaS applications for technology business management that model and allocate IT costs across on-premises systems, vendors, projects, agile teams and cloud environments. The platform uses machine learning to translate technology costs and utilization into a business-centric view, supports cloud financial management and investment planning, and integrates with major cloud and enterprise systems including AWS, Microsoft Azure, Google Cloud Platform, Salesforce, ServiceNow, Oracle and SAP. Earlier product concepts included an interactive "Bill of IT" for communicating IT value to the business.

Go-to-market

Direct enterprise sales supported by category creation and community building through the TBM Council, a non-profit group of senior IT executives that Apptio helped found in 2012. The company also expanded through partnerships and integrations, including a technology collaboration with LeanIX (2020), a certified ServiceNow solution and integration (July 2021), a Microsoft collaboration to deploy its platform on Microsoft Cloud (December 2021) and a partnership with IBM around hybrid cloud.

Large enterprises and Global 2000 organizations, specifically CIOs, IT leaders and finance leaders responsible for technology spend; over time the company also described serving companies of all sizes. Named customers have included Bank of America, Boeing, JPMorgan Chase, Microsoft, Royal Bank of Scotland, Safeway, St. Luke's Health System, Swiss Re, Target and Xerox.

Geography

Headquartered in Bellevue, Washington, with worldwide operations and regional offices across the US, EMEA and APAC. Documented office openings include Sydney and Melbourne (March 2014), Denver (2015), Paris (March 2016), India (August 2019) and Kraków, Poland (August 2021). Western Europe was named as an early international expansion priority in 2013.

History

After stealth-mode seed funding in 2007, Apptio raised $14 million in Series B in 2009 from the newly formed Andreessen Horowitz fund — the firm's first investment — followed by a $16.5 million Series C led by Shasta Ventures in 2010, a $50 million Series D in March 2012, and a $45 million Series E in May 2013 that brought total capital raised to $136 million. The company founded the Technology Business Management Council in 2012, which held its first conference in November 2013 and grew to more than 2,900 CIOs and senior IT leaders by 2014. International and domestic expansion followed: Sydney and Melbourne offices in March 2014, Denver in 2015, Paris in March 2016, an India office in August 2019 and Kraków, Poland in August 2021. Apptio raised $96 million in a September 23, 2016 IPO on NASDAQ at $16 per share. It completed the acquisition of Digital Fuel SV, LLC in February 2018, agreed on November 11, 2018 to be acquired by Vista Equity Partners for $1.94 billion ($38.00 per share in cash), and closed that transaction on January 10, 2019, delisting from NASDAQ while remaining headquartered in Bellevue with Gupta as CEO. Under Vista it acquired Cloudability (2019) and Targetprocess (February 2021). IBM agreed to acquire Apptio in June 2023 for $4.6 billion in an all-cash deal, completed August 10, 2023.