Apptio Optimizes Enterprise IT Costs Utilizing Amazon Web Services Cloud Computing

Share Article

New Apptio Solution Quantifies the ROI of Cloud Computing for Enterprise IT, Provides Central Management of Ongoing Costs of Both Internal and Cloud-based IT Services

Assessing the cost benefit of moving IT services to Amazon Web Services is just another way we are helping enterprise customers reduce their IT costs by 10 percent annually.

Apptio, the leading provider of on-demand IT Cost Transparency software, today announces the availability of its Cloud Migration Cost Analysis offering to help companies analyze the cost savings and ROI from cloud computing. In today's economic environment, the pressure to reduce IT costs has never been greater and cloud computing represents a sea change in how IT is delivered with the potential for significant cost savings. Apptio's Cloud Migration Cost Analysis for Amazon Web Services (AWS) enables enterprise IT organizations to rapidly quantify the ROI of cloud computing and seamlessly track the ongoing costs of cloud-based and internal IT services from a single console, accelerating the migration of enterprise-class IT services to the cloud.

For enterprise customers that are considering the movement of their IT services to the cloud, establishing an accurate comparison to internal costs and quantifying the potential ROI is a priority. However, accurately quantifying that ROI can be a challenge, as the cost model for cloud services is not an apples-to-apples comparison to internal IT costs. Accurately determining which internal services are the best candidates involves calculating the true costs to run those services internally and then comparing only the relevant costs that would be replaced by moving to the cloud. Apptio enables customers to directly compare the two options and accurately assess the benefit of moving to AWS.

"A major potential benefit of cloud offerings is the cost savings. When evaluating cloud services, you should deeply evaluate all the costs of delivering the service internally and externally," said Donna Scott, vice president distinguished analyst, Gartner. "This will help you determine internal vs. external delivery competitiveness and should be used in sourcing decision analysis."

"Customers can often see significant savings by leveraging Amazon Web Services, but many companies want to better understand their cost savings," said Steve Rabuchin, director of developer relations and business development for Amazon Web Services. "We are excited that the offering by Apptio can offer AWS customers the ability to track the ongoing costs of their AWS-based services along with their internal IT service costs."

Only Apptio's IT Cost Transparency solution enables companies to easily integrate financial and IT operational data, calculate the fully loaded cost of an IT service and compare that cost to external cloud service offerings. The Apptio on-demand offering combines a sophisticated data management system with an easy-to-use modeling and reporting environment to calculate, track and analyze the fully-loaded, ongoing cost of an IT service, including hardware, software, labor and facilities. With increased visibility into costs, enterprise customers can leverage integrated benchmarking to compare IT costs against industry averages, identify cost reduction opportunities, perform "what if" analyses to quantify the ROI of new IT investments, and provide an accurate "Bill of IT" back to their internal business customers.

In addition, with this new offering, cost and usage data from AWS is integrated to allow customers to track the cost of both internal IT services and Amazon cloud-based IT services from a single IT cost transparency console. Customers can then better optimize ongoing IT service costs across existing cloud boundaries.     

"We are pleased to help enterprise IT customers reduce cost by leveraging cloud computing," said Stan Shull, vice president of business development for Apptio. "Assessing the cost benefit of moving IT services to Amazon Web Services is just another way we are helping enterprise customers reduce their IT costs by 10 percent annually."

Apptio currently leverages Amazon's Elastic Compute Cloud (Amazon EC2) for the Cloud Migration Cost Analysis and a portion of Apptio's regular operations.

About Apptio
Apptio is the leading provider of on-demand IT Cost Optimization solutions. Apptio's IT Cost Optimization solutions provide greater visibility into the cost, utilization and operations of IT products and services so that businesses can identify ways to reduce IT costs, make better IT decisions and provide the business with a true Bill of IT. IT organizations such as Alaska Airlines, Blue Cross Blue Shield of Kansas, HomeStreet Bank, SkyTap and SumTotal use Apptio's IT cost analysis capabilities to reduce cost and achieve greater visibility into their IT costs and cost drivers. Founded in 2007 by an executive team with over 50 years of experience in systems management software, Apptio is backed by Greylock Partners, Madrona Venture Group, Marc Andreessen, Ben Horowitz, Ignition Ventures and Shasta Ventures. For more information, please visit


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Laura Jones
Email >
Visit website