How Apptio Can Help
The Evolution of Software SpendingSoftware asset costs represent the single greatest growth area in most IT budgets. Along with this growth
in spend, the nature of software in the enterprise is changing as well. The increasing popularity of
emerging technologies, such as virtualization and cloud-based SaaS solutions, promise greater flexibility.
But this also generates increased complexity for management and governance. With this transition, the
role of the CIO is quickly changing from a provider to a strategic broker of services. This transition makes
it essential for the CIO to link business outcomes to IT spend on software and services.
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31%Employees
29%Software
26%Hardware
14%External Service
Providers
0%
2%
4%
6%
7%
5%
3%
1%
IT CATEGORY
SPEN
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OWTH
%Why IT CostTransparency MattersMore Than Ever
IT spending is continually growing, yet maintaining visibility into this spending and its
ongoing business value is increasingly challenging. This is due in large part to the
massive growth in virtualization and cloud technologies, which promise greater flexibility
– but this promise comes with a management price tag. Learn why IT cost transparency
matters and how you can regain control of your IT spending.
Average IT Budget Breakdown
$285 Billion
$304 Billion
$324 Billion
2012
2013
2014
275 300 325
2013 Worldwide IT Forecast:Spending Growth
Sources:wsj.comomtco.eugartner.comcomputerworld.com
AutomatedSpend less time manipulating data and spreadsheets, more time driving value-added analysis. Accelerate financial review processes from hours to minutes. Deliver variance reports in hours not days.
EmpoweredEmpower accountability among project and tower owners to better manage their budgets. Report variance in context of projects and towers where source and corrective measures are easier to find.
CredibleImprove credibility with the business via fact-based conversations about cost drivers and units.
ActionableSee how budgets relate to services and projects before making adjustment decisions. Course correct budgets more quickly and precisely to avoid disruptions from dramatic cuts.
EnterpriseSoftware
IT Services Data CenterSystems
Devices TelecomServices
+6.4%
+2.8%+2.2% +2.1%
+0.9%
For more on how Apptio can help, please visit:www.apptio.com/transparency
Why Cost Transparency Matters Now More Than EverMany IT organizations and CIOs are struggling to communicate the correlation between IT spend, services
delivered and business value realized from these services. Business stakeholders can’t afford to ignore IT
because business outcomes and technology are increasingly interlinked. Consequently, finding a way to
reconcile IT with business is among the most pressing priorities for forward-looking CIOs and IT Finance
professionals.
Apptio Cost Transparency Foundation is a SaaS-based analytics solution for IT Finance professionals
and IT cost center owners. Apptio’s cost transparency solution automates monthly reporting and enables
analysis of GL costs translated into IT-relevant towers and projects. With Apptio Cost Transparency
Foundation, you are:
GL views of IT expenses are not understandable or actionable to IT and your business partners.
IT can’t demonstrate which rising costs are caused by inefficiency versus rising consumption.
Typical expense reporting doesn’t have sufficient detail to identify sources of variance. You can’t identify “real” variance from variance stemming from timing or categorization errors.
Manual approaches for calculating towers are labor intensive and require lots of offline detective work to get answers.
Consulting approaches (often part of benchmarking) take months for a static snapshot.
Slower, less frequent variance reports lead to more drastic, last-minute corrective measures like delaying projects.
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Issues with Conventional Cost Transparency Methods:
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Apptio
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