IBM's Rob Thomas on the Acquisition of Apptio and the Future of Technology

TLDRIBM's Rob Thomas discusses the reasons behind the acquisition of Apptio and how it aligns with IBM's strategy around automation and hybrid cloud. He explains that technology is more important than ever, and Apptio provides a virtual command center for managing technology spend. The acquisition also drives sales of Red Hat and helps clients make decisions about deploying technology. Apptio's profitability and data collection capabilities are highlighted as game-changers in the industry. Thomas also touches on the potential of generative AI and WatsonX in transforming business processes.

Key insights

⚙️Technology is more important than ever, and companies need to manage the complexity of technology and their spend.

🔍Apptio provides a virtual command center for managing technology spend, including cloud and labor spend.

🌐The acquisition of Apptio aligns with IBM's strategy around automation and recurring revenue businesses.

💰Apptio's capabilities help clients optimize their financials and reduce complexity, making it a game-changer.

🤝The acquisition of Apptio drives sales of Red Hat and complements IBM's portfolio of services.

Q&A

Why did IBM acquire Apptio?

—IBM acquired Apptio because technology is more important than ever, and companies need to manage the complexity of technology and their spend. Apptio provides a virtual command center for managing technology spend, including cloud and labor spend.

How does the acquisition of Apptio align with IBM's strategy?

—The acquisition of Apptio aligns with IBM's strategy around automation and recurring revenue businesses. It complements IBM's portfolio of services and drives sales of Red Hat.

What are the benefits of Apptio's capabilities?

—Apptio's capabilities help clients optimize their financials and reduce complexity. It allows them to automate their business processes and make data-driven decisions about technology deployment.

Does the acquisition of Apptio impact Red Hat?

—Yes, the acquisition of Apptio drives sales of Red Hat. It provides clients with options for running on hybrid cloud and helps them make economical decisions about deploying technology.

How does Apptio's data collection capabilities contribute to the industry?

—Apptio has collected $450 billion worth of IT spend data, which allows them to benchmark and provide insights to clients. This data set is a game-changer in understanding and optimizing IT investments.

Timestamped Summary

00:03IBM acquires Apptio, marking the third largest deal in the company's history.

00:08Technology is more important than ever, and companies need to manage the complexity of technology and their spend.

00:20Apptio provides a virtual command center for managing technology spend, including cloud and labor spend.

00:38The acquisition of Apptio aligns with IBM's strategy around automation and recurring revenue businesses.

01:19Apptio's capabilities help clients optimize their financials and reduce complexity, making it a game-changer.

01:31The acquisition of Apptio drives sales of Red Hat and complements IBM's portfolio of services.

02:00Apptio is profitable and has collected $450 billion worth of IT spend data.

03:26Generative AI and WatsonX have the potential to transform business processes.

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