IBM is officially acquiring Apptio. IBM intends the deal to expand its offerings of automation and AI solutions for cost management.
IBM’s acquisition of Apptio went for $4.6 billion. All required regulatory approvals, are already in, according to IBM.
The deal should benefit Watsonx, an AI and data platform aimed at enterprises and introduced in May 2023. The blog does not provide many details on the specifics: “With AI and foundation models front and center for customers and partners, IBM will also extend its Watsonx AI and data platform with Apptio’s $450 billion of anonymized IT spend data, unlocking new innovation, insight and value.”
User savings in cloud costs
Of further interest to users will be the cost savings from the acquisition. According to IBM, cloud costs will drop by about 30 percent with the incorporation of Apptio’s Cloudability solution. Turbonomic will allow users to generate up to 33 percent more return on cloud investments. The solutions are immediately available to IBM customers.
The plan of acquisition was announced back in June 2023. For this, IBM negotiated with private investment firm Equity Partners Management, which had Apptio in its portfolio since 2018. The company was bought then for 1.94 billion dollars and is thus now being disposed of for 4.6 billion dollars.