In a market filled with anecdotal, assumptive data, today’s report represents the future of market-level spend analysis
First-Ever Industry Wide Analysis of Actual IT Spending Highlights Variations in IT Sourcing Strategies
London, UK – June 2, 2015 – Apptio®, the leading provider of cloud-based Technology Business Management (TBM) software, today released its first IT Economic Insights report profiling enterprise IT spending patterns. The world’s leading organisations contracted with us to use Apptio’s Cost Transparency application to calculate and analyse over $150 billion in annual IT spend. For the Apptio IT Economic Insights report, the company analysed a sample of these customers’ IT investments during 2014 and found three common resourcing strategies. These patterns, or archetypes, each represent companies with atypically high investment emphasis on one of the following IT resources: People, Vendors, or Technology.
“To derive these insights, we analysed the data flowing through Apptio’s powerful in-memory cost analytics platform to discover how IT leaders are actually making investments in the people, technology, and services that make IT successful” said Apptio CEO, Sunny Gupta. “In a market filled with anecdotal, assumptive data, today’s report represents the future of market-level spend analysis that only Apptio can provide.”
Apptio was able to normalise its data and retrieve these insights due to its industry-standard cost model – the Apptio TBM Unified Model (ATUM). Because users of Apptio Cost Transparency rely on this standard model for their monthly cost analytics, Apptio compared IT spend from the sampled customers to uncover common patterns. The analysis uncovered three groups that focused more investment in specific areas:
People: This category represents companies that favor spending more on internal labor and less on contractors and software.
Vendors: Includes organizations with more reliance on outside services, such as consultants, managed service providers and cloud service providers and not as much focus on labor or technology.
Technology: In this category, we found two “sub-archetypes” of companies that favor spending on either hardware or software. Those that favor hardware tend to spend less on labor, vendors and software. Those that favor software tend to spend less on contractors and vendors.
“Never before has the industry had access to analysis based on actual IT costs, but now it’s possible because our customers calculate their costs using the industry standard model and methodology outlined in ATUM.” said Ted Kummert, Apptio EVP of Engineering and Cloud Operations. “This year, we’ll be releasing the results of our analysis on a regular basis that will provide the market with an accurate and nuanced understanding of IT investments and their impact on today’s leading organisations.“
Used by more than one-third of the Fortune 100, Apptio’s SaaS applications provide CIOs, infrastructure and operations professionals, and IT finance leaders with a business management system. The data derived from Apptio’s applications empower IT leaders to communicate the cost, quality, and value of their IT investments to their business partners.
To read the full IT Economic Insights report and learn more about Apptio, please visit: http://apptio.com/it-economics
Apptio is the leading provider of cloud-based Technology Business Management (TBM) software that helps CIOs manage the business of IT. Apptio’s suite of applications use business analytics to provide facts and insights about technology cost, value, and quality, so IT leaders can make faster, data-driven decisions. The purpose-built applications help companies align technology spend to business outcomes and automate IT processes like cost transparency, benchmarking, showback/chargeback, operational efficiency, and planning. Powering Apptio’s applications is a next generation, in-memory cost analytics platform that takes data directly from financial, operational, and billing systems to power the applications that give customers deep insight. This insight spans infrastructure, applications, and business services, both on-premises and in the cloud. Hundreds of customers, including more than one-third of the Fortune 100, choose Apptio as their business system of record for IT.
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