Apptio: Government Agencies around the World Working with Apptio to Fuel Digital...

Apptio: Government Agencies around the World Working with Apptio to Fuel Digital Transformation

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Sunny Gupta, CEO, ApptioSunny Gupta, CEO
Today’s organisations are quickly moving towards digitalisation as technology is now powering each and every business function. Technology leaders are charged with driving innovation, expanding competitive differentiation and increasing shareholder value; yet technology remains the most complex function within the organisation. While companies have numerous technical systems to monitor automation, service management, and data management, they struggle to obtain and maintain financial transparency, decision making and planning for technology. With over two decades of experience in enterprise software, Sunny Gupta observed these challenges while he interacted with CIOs of large companies and identified that businesses were spending billions of dollars on running technology services and their supporting maintenance. Gupta recognised that it was hard for CIOs to identify where IT spend was going and how it was contributing to business value. The expense of running services was not the only concern that plagued them; they wanted to measure and manage the utilisation of the services, produce the bill of technology they were using as well as benchmark their expenditure against industry standards and peers. In a nutshell, technology is a significant cost driver for business units, and CIOs wanted to understand how the businesses consume it and what they were paying for it. In response to these challenges, Gupta founded Apptio in 2007 and pioneered a market category— Technology Business Management. Apptio’s platform enables clients to plan, analyse and optimise their technology investment, whether it is on cloud or on-premises.

With Apptio, CIOs can align their technology investments with business priorities, and engage business stakeholders to drive accountability and value. As a market and product innovator, Gupta has driven the company to become the market leader in a disruptive industry with significant scale. Apptio supports customers in every industry—from healthcare to financial services, retail to oil & gas—with more than 600 customers around the world, including 50 per cent of the Fortune 500. Apptio also works with agencies across the public sector like General Services Administration (GSA), Department of Veterans Affairs (VA), and more, and has assisted other government departments in the U.K., U.S., and across Europe.

In the following conversation with Sunny Gupta, the founder and CEO of Apptio, he shares how the company is helping organisations to manage their technology investments.

Can you shed some light on how your cloud-based platform helps optimise technology costs and highlight its capabilities?

Through our cloud-based platform, we help technology and finance leaders make smart decisions as they plan, analyse and optimise technology investments in pursuit of digital transformation. Our software uses machine learning to translate technology costs and utilisation across on-premises systems, vendors, projects, agile and cloud systems into a holistic, business-centric view.

We provide SaaS applications for CIOs, IT Finance and infrastructure and operations professionals to help increase the value of the entire IT portfolio, provide proactive insights and analysis on opportunities for cost savings across the hybrid supply chain, and achieve predictable sending with an informed cloud migration strategy. Although we provide multiple application families on this platform, customers can opt for one or two at the onset to get started with quick value.

Our platform ingests, aggregates and analyses technology costs from readily-available sources across IT, finance and vendors from structured or semi-structured formats. Machine learning capabilities automatically maps and translates these data sources to an IT view. This shows clients how much they are spending on storage servers, cloud platforms, applications and end-user computing. We create a cost model and offer predefined analytics reports and benchmarks inside the organisation. Usually, after a customer implements our offering, they see at least 3 to 5 per cent technology expense optimisation within 6 to 9 months. Customers can begin to see value with Apptio in as little as 5 hours with our cloud-specific product.

Can you highlight the uniqueness of your Apptio TBM Unified Model (ATUM)?

ATUM has been a game changer for the industry. The standard framework was developed in 2012 when we realised that companies were struggling to relate financial information to IT budget owners so they could understand the cost of services and applications, and make more informed decisions about servers, storage, networks and projects. IT and finance leaders wanted to translate the general ledger into four layers— financial (or cost pools), resources (IT towers), applications and services, and business units. Every company was reinventing definitions of even the most common processes like storage or server. Hence, we studied different translation catalogues and created a non-profit organisation called Technology Business Management Council or TBM Council to help drive the first-ever industry standardisation model called Apptio TBM Unified Model or ATUM. It provides a standard benchmark for companies to compare their costs at the different layers of the ATUM model. Apptio is the only company that incorporates this taxonomy inside its software with hundreds of predefined rules to help companies build a standard product.

Our software uses machine learning to translate technology costs and utilisation across on-premises systems, vendors, projects, agile and cloud systems into a holistic, business-centric view.

Could you share a few customer success stories?

In the public sector especially, we’ve seen some incredible traction over the last several years. We have been driving the evolution of TBM in government.

The White House approached the TBM Council a few years back under President Obama’s administration. The U.S. Federal Government’s technology expenditure was $80 to $200 Bn, and they required a common taxonomy in a framework to report their expenditure and optimise it. Hence, Apptio started working with the federal government to streamline their expenses, mostly pertaining to digitalisation and cloud. We were successful in achieving quick, positive results, and now the White House has mandated the TBM taxonomy for all U.S. federal agencies.

We work with the VA, which is one of the largest agencies in the US, with $4 bn in IT spend. We’re helping them bring accountability to shift millions of dollars into innovation initiatives like cloud.

Similarly, over 44 government agencies in the State of Washington use ATUM to map their spend through the Office of the CIO. Apptio has become the way they aggregate all the spend across agencies to deliver transparency and optimisation of resources to the citizens of the State of Washington.

In addition to public sector agencies, we work with the private sector, including customers such as Unilever, Mastercard, Cisco, FedEx, Nike, Stanley Black & Decker, AIG, and more.

How do you envision the future of Apptio?

Our focus at Apptio is always to make our customers wildly successful, so we’re focusing on three big drivers of growth to help customers realise the value of their tech investments.

First, we noticed that customers require more modules specifically designed to manage the challenges modern technology and processes are posing for their business, and for their unique use case for TBM, so we have developed a vendor-specific expenditure module for public cloud (including AWS, Azure, and Google Cloud), in our Cloud Business Management product. We are also heavily investing in Agile offerings to help IT leaders better align application, service, and business capability investments to business outcomes.

Second, we are leveraging machine learning coupled with artificial intelligence to bring more ways to automate the mapping of general ledgers into cost models and a planning model. With predictive insights, IT leaders can gain strategic and data-driven recommendations on cost optimisation and value realisation without human intervention.

Lastly, we are offering the Apptio cost model to other primary shared services like HR, legal, finance, and more.

We are innovating on all three fronts and have some exciting times ahead of us.

Our software uses machine learning to translate technology costs and utilisation across on-premises systems, vendors, projects, agile and cloud systems into a holistic, business-centric view.

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Apptio, Inc. Acquires Machine Learning Cloud Optimization Company FittedCloud

BELLEVUE, Wash -- Apptio, Inc. (NASDAQ: APTI), the business management system of record for hybrid IT, today announced it has completed the acquisition of FittedCloud, Inc., a provider of machine learning-based cloud optimization software. With this acquisition, Apptio will broaden its existing public cloud analytics with deep insights into cloud utilization, right-sizing and spending recommendations.

"Apptio is known for its unique ability to provide visibility, optimization, benchmarking and planning capabilities for corporate technology spending across multicloud and on-premises environments," said Sunny Gupta, CEO of Apptio. "FittedCloud's anomaly detection and adaptive learning algorithms analyze millions of lines of utilization data from public cloud services to predict and optimize utilization in real-time. This differentiated technology combined with Apptio's existing multicloud and hybrid business management applications will provide increased value to our customers and make it easier for them to manage the complex world of hybrid IT."

"We built FittedCloud knowing that a significant percentage of all public cloud spend is wasted because existing cloud cost management solutions rely on humans to parse spend and utilization data," said Prakash Manden, co-founder of FittedCloud. "Our patented solution was designed to solve this very hard problem through machine learning and automation. We're thrilled to apply our success to Apptio's extended suite of cloud and Hybrid business management applications."

Boston-based FittedCloud was founded in 2015 by a veteran team of engineers dedicated to solving one of the toughest problems in public cloud management. The company was recently recognized as an IDC Innovator in Data Services for Hybrid Cloud. In the future, FittedCloud's technology will be deeply integrated into Apptio's suite of SaaS applications.

Although FittedCloud is an important acquisition that strengthens Apptio's capabilities, the acquisition is not material from a financial reporting perspective. More detail on this news will be provided during Apptio's 3rd quarter earnings conference call.

Apptio, Inc. Partners With Coupa To Help Reduce Billions In Shadow IT

BELLEVUE, Wash-- Apptio, Inc. (NASDAQ: APTI), the business management system of record for hybrid IT, today announced it has partnered with Coupa Software, through the CoupaLink program, to ensure that companies have complete enterprise-wide visibility into technology spending, whether managed through central IT organization or hidden technology spend being driven by the business units. With this deep visibility, organizations can eliminate redundancies and waste, centralize technology spend management and ensure every dollar spent aligns to business value.

"Leading analyst firm IDC estimates that by 2019, technology spending outside of central IT will eclipse that of central IT. At most companies, this represents up to hundreds of millions in untracked and unaccounted spend," said Theo Beack, EVP of Products and Engineering at Apptio. "Many CIOs don't have full visibility to how much is truly being spent within their organization. This partnership is essential to providing CIOs, CFOs and CPOs with the transparency and control they need to truly maximize the value of every dollar spent on technology."

"Currently, billions of business spending is managed by Coupa. When paired with the technology spending managed by Apptio, our customers can truly have the organization-wide transparency needed to make informed decisions about future investments," said Coupa SVP of Alliances, Roger Goulart. "Together, we're able to unlock greater visibility and control of spend across an entire organization so our customers can spend smarter."

Here's how it works: Apptio will integrate through CoupaLink to tie its industry-standard IT cost model (ATUM®) into the Coupa Business Spend Management (BSM) Platform and provide a framework to better categorize and assign technology spend. When new purchase orders are entered into Coupa, they can automatically be categorized against Apptio's IT costing taxonomy (ATUM). These details, in turn, will enrich Apptio's analytics for organization-wide technology spend visibility. Further, this partnership can speed up time to value for customers to adopt Apptio's solution.