It may be ironic, but some companies like IBM make a move to acquire other firms for billions in cash to cut costs. Yes, you read that right. IBM is looking at acquiring Apptio, a software company, for $4.5 billion, get this, in cash, to cut on its cloud costs, along with other objectives.

On Monday, IBM announced it had reached a definitive agreement with Vista Equity Partners to buy Apptio Inc. for $4.6 billion in cash, news from CNBC reported. Apptio is a global leader in providing financial and operational IT management and optimization (FinOps) software to its clients. 

Aside from minimizing cloud costs, this acquisition by IBM is also bound to accelerate the advancement of the company’s IT automation capabilities and empower enterprises to deliver improved business value across their technology investments. 

IBM’s CEO and chairman, Arvind Krishna, told news outlets that technology is changing business at a pace the world has “never seen before.” To capitalize on these changes, he said it is crucial to make investments that drive better value for the business, and its acquisition of Apptio is a prime example. 

Krishna added, “Apptio’s offerings, combined with IBM’s IT automation software and watsonx AI platform, give clients the most comprehensive approach to optimize and manage all of their technology investments.”

Based in Bellevue, Washington, Apptio is a company that develops technology business management SaaS applications. It is also an established FinOps leader with over 1,500 clients and serves over half of the Fortune 100 companies. 

Apptio partners and integrates with renowned companies like Amazon Web Services, Google Cloud Platform, Microsoft Azure, ServiceNow, Salesforce, and Oracle, among others. This software company empowers enterprise leaders to manage their spending on technology and investments through cloud innovation and digital transformation.   

Apptio will work with IBM’s performance optimization and observability capabilities to give clients a 360-degree technology business management platform, offering them a “virtual command center” to manage their spending better and optimize their entire technology landscape.

“We are so excited to be joining IBM and combining our industry-leading offerings with IBM’s global presence and strong portfolio across AIOps, automation, and hybrid cloud offerings,” stated Apptio co-founder and CEO Sunny Gupta.

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