Apptio Reins In Public Cloud Costs With Free Tool

A relatively new player in a relatively small market segment it calls technology business management (TBM), Apptio is rolling out a free service, Apptio Cloud Express (ACE), that will enable organizations to track the usage and costs of public cloud services, including Amazon Web Services, Windows Azure, and Rackspace, and recommend ways to optimize usage and reduce costs. The company said it has captured best practices for analyzing costs and performance across different types of cloud scenarios, so that IT has more complete information to better determine which products and services should be kept in-house or moved to the cloud, along with which cloud model is right for each initiative.

“Our goal is two fold: we believe that technology business management needs to be professional management … for the CIO,” said CMO Chris Pick. “ACE allows us to provide the complete picture… a comprehensive data set to how you modernize the organization… (and) helps to accelerate adoption of public cloud.” In addition to cost, the decision-making involves aspects such as warranty, privacy, and resiliency. “You have to look at the total cost of the service, as opposed to the line item.”

IT is changing, said Pick, and increasingly must operate like a business. Rather than focusing on feeds and speeds, IT needs to address business issues, and talk in a language, i.e. finance, that business understands. “Business is always going to have infinite demand against IT’s very limited resources.” C-level executives are looking for complete visibility in TCO, unit rates, IT services, and transparency to the business/bill, planning/aligning demand, he said.

ACE helps provide better understanding of public cloud costs, and opens up a new market opportunity for Apptio, the developer on the leading, bleeding edge of creating new apps for organization, said Pick. “DevOps is not a traditional Apptio customer. We believe there is value in… enabling them to make smarter decisions.”

A privately held company that doesn’t disclose revenues, Apptio said it more than doubled its revenue in 2011 and doubled the number of Fortune 100 companies using its offerings, to 80. Pick said the five-year-old company now has well over 100 F500 customers, 350 staff, and manages more than $101 billion of IT spend in its enterprise SaaS platform.

At the end of 2011 451 Research predicted that this space would grow to nearly $200 million in 2012, from $129 million in 2011, and called Apptio as the ‘bellwether’ company of the IT financial management industry. “Apptio uses various modeling and analytics tools to help enterprises get a better handle on how much they’re spending on IT, and how much they’re getting for their buck in terms of return on investment and business performance,” said 451’s Dennis Callaghan, senior analyst, enterprise software. “That’s crucial as the CIO role starts looking more like that of the CFO.”

The picture looks even rosier for next year, said Apptio. Forrester claims Technology Business Management will be an $800 million software market by 2013.

Based on technology from recently acquired Raveld, ACE enables users to view their cloud costs in an itemized bill format, identify and aggregate spending outside of IT’s approval, and perform “what-if” analyses to quantify potential savings of shifting to private or hybrid cloud strategies. For more information, CLICK HERE

Author: Steve Wexler

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