Apptio, a Seattle-area company that helps corporate technology leaders manage their IT spending, said Wednesday that it has acquired FittedCloud, a Boston-based developer of cloud optimization software.
Apptio’s (NASDAQ: [[ticker:APTI]]) news release announcing the deal did not contain any financial terms. However, the company said its acquisition of FittedCloud “is not material from a financial reporting perspective.” Apptio said it will provide more details on the deal when it reports its third-quarter earnings later this year.
Bellevue, WA-based Apptio, which sells its software as a subscription, said that acquiring FittedCloud will broaden Apptio’s cloud analytics offerings. The Boston company has developed machine learning algorithms that can “analyze millions of lines of utilization data from public cloud services to predict and optimize utilization in real time,” Apptio co-founder and CEO Sunny Gupta said in the release.
FittedCloud’s software helps IT leaders understand how much money their organizations are spending on cloud services, wherein users store their digital files and host their computing infrastructure in offsite data centers, Apptio said. FittedCloud’s tools can help users see whether they’re using all of the cloud computing resources they’re paying for, say, which might tell leaders in IT they could save money by switching to a lighter, cheaper package of services.
“Existing cloud cost management solutions rely on humans to parse spend and utilization,” Prakash Manden, co-founder of FittedCloud, said in the release. FittedCloud’s software is designed to automate those processes, Apptio said.
Both companies are riding the wave of more corporations transitioning to cloud computing, and IT departments playing a larger role in companies’ strategic direction and business decisions.
Apptio was co-founded in 2007 by Gupta, chief technology officer Paul McLachlan, and chief financial officer Kurt Shintaffer. The company went public in 2016. In February, Apptio acquired Digital Fuel, a Los Angeles-based provider of IT and business management software, for $42.5 million in a combined cash-and-stock deal.
