IBM announced its acquisition of finops software-as-a-service (SaaS) company Apptio for $4.6 billion in an all-cash transaction, doubling down on its hybrid cloud and artificial intelligence (AI) aspirations.

Even with a multi-billion-dollar price tag, this acquisition seems like a steal considering the $450 billion in anonymous IT spending data that IBM expects to receive from Apptio after the deal closes. IBM SVP of Product Management and Growth Kareem Yusuf told SDxCentral this data will be used in IBM's Watsonx AI platform and "help provide a deeper visibility into how our clients spend [money] on technology across both their hybrid and multi-cloud environments," Yusuf said.

In addition to the data, IBM plans to integrate Apptio's 1,500 enterprise customers and three core SaaS offerings — ApptioOne, Apptio Cloudability and Apptio Targetprocess — with IBM's automation software and Watsonx AI. Apptio's SaaS portfolio enables enterprises to manage their IT spending and prioritize investments in "high-value cloud innovation and digital transformation," which will fit nicely with the performance optimization and observability tools within IBM's existing portfolio, according to the vendor.

ApptioOne focuses on managing and optimizing hybrid cloud spend by analyzing and planning cloud budgets and expected value. The service provides "repeatable and accurate" financial planning, actionable insights that improve cost and utilization, and industry peer benchmarking.

Apptio Cloudability targets visibility into and optimization of public cloud spending by connecting cloud infrastructure with financial management best practices, and Apptio Targetprocess offers investment planning agility that aligns development resources with business goals to plan and monitor value delivery.

The integration of Apptio technology into IBM's portfolio is focused on providing an overarching IT business management platform, or "virtual command center," that covers all aspects of a company's technology ecosystem with visibility and optimization capabilities.

Across IBM, the acquisition is set to drive growth in automation, Red Hat, AI and IBM Consulting. Apptio will also bring partnership opportunities with Accenture, KPMG, Deloitte and EY, Yusuf noted.

IBM anticipates the Apptio deal will close in the second half of 2023, subject to regulatory approvals.