Apptio
| Company type | Public (until 2018), now private subsidiary |
|---|---|
| Industry | Software, Technology Business Management (TBM) |
| Founded | 2007 |
| Founder | Sunny Gupta, Kurt Shintaffer, Paul McLachlan |
| Headquarters | Bellevue , United States |
Key people | Sunny Gupta (Founder and CEO), Kurt Shintaffer (CFO), Jeremy Ung (CTO), Allison Breeding (CMO) |
| Products | SaaS applications for technology business management, cloud financial management suite |
Number of employees | 1200 (2020) |
| Parent | IBM (since August 2023) |
| Website | www |
Apptio, Inc. is a technology business management (TBM) software company headquartered in Bellevue, Washington, established in 2007. It specializes in SaaS applications designed to help enterprises evaluate and articulate IT service expenses for strategic planning, budgeting, and forecasting purposes. The company’s solutions assist CIOs in overseeing technology resources such as storage, applications, energy consumption, cybersecurity measures, public cloud costs, migration initiatives, and Agile implementation.
In 2009, Apptio became the inaugural investment by the Silicon Valley venture capital firm Andreessen Horowitz. Serving around 550 clients globally across diverse sectors, Apptio demonstrated significant growth leading to its public offering in September 2016.
Vista Equity Partners acquired Apptio in November 2018 for $1.9 billion. That same year, Apptio broadened its cloud financial management suite by purchasing Digital Fuel for $42.5 million.
IBM announced in June 2023 its intention to acquire Apptio from Vista for $4.6 billion to enhance its cloud portfolio; the transaction was finalized in August 2023. This acquisition strengthens IBM’s international presence and competitive position within the software and IT services markets.
Key leadership figures include founder and CEO Sunny Gupta, CFO Kurt Shintaffer, CTO Jeremy Ung, and CMO Allison Breeding. As of 2020, Apptio employed approximately 1,200 people and generated $300 million in revenue. Its business model focuses on scalable TBM solutions that improve financial outcomes and IT operational effectiveness for enterprise customers worldwide.
History
Sunny Gupta, Kurt Shintaffer, and Paul McLachlan established the company in 2007. Prior to founding Apptio, Gupta and Shintaffer worked together at iConclude before its acquisition by Opsware that same year. Operating discreetly in its early stage, the startup secured $7 million in funding from Madrona Venture Group and Greylock Partners in November 2007. In 2009, it obtained an additional $14 million through a Series B round led by Andreessen Horowitz.
In 2010, Apptio raised $16.5 million in Series C financing with Shasta Ventures leading and contributions from existing investors. By March 2012, it secured $50 million in Series D funding aimed at scaling operations and broadening service offerings. The following year saw a $45 million Series E round, bringing total capital raised to $136 million from investors such as Greylock Partners, Madrona Venture Group, Janus Capital, and T. Rowe Price.
To support global expansion, Apptio launched offices in Sydney and Melbourne during 2014, followed by Denver in 2015 and Paris in 2016. The company went public on September 23, 2016, raising $96 million through its initial public offering.
February 2018 marked the acquisition of Digital Fuel SV, LLC to enhance its IT business management capabilities. Later that year, Vista Equity Partners agreed to purchase Apptio for $1.94 billion, providing shareholders with a premium of 53%.
Apptio continued expanding through acquisitions and new markets: it acquired Cloudability in 2019 to boost cloud cost management features and inaugurated its first office in India that August. In May 2020, it formed a partnership with LeanIX to integrate analytics of IT expenditure data.
In early 2021, Apptio purchased Targetprocess to improve agile investment planning processes. Subsequently, it launched a consolidated product suite comprising ApptioOne, Targetprocess, and Cloudability. July saw the company achieve its first certified integration with ServiceNow; August brought the opening of a product innovation center in Kraków, Poland.
Strategic collaborations followed with Microsoft in December 2021 to deploy Apptio’s platform on Microsoft Cloud for workload optimization and with IBM to advance hybrid cloud transformation initiatives.
In June 2023, IBM announced an all-cash agreement to acquire Apptio from Vista Equity Partners for $4.6 billion; this deal was completed by August of the same year.
Technology Business Management Council
In 2012, Apptio established the Technology Business Management Council, a non-profit entity that expanded to encompass more than 2,900 CIOs and senior IT executives by 2014. The council's mission is to support IT organizations in functioning with a business-oriented approach through the development of standardized frameworks and best practices. Its inaugural conference took place in November 2013.