Why IT Cost Transparency Matters More Than Ever

Why IT Cost Transparency Matters More Than Ever %24 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. Growth in Worldwide IT Spending 4.0 3.8 3.6 3.4 3.2 3.0 '10 '11 '12 '13 60, YEAR Average IT Budget Breakdown 31% 14% External Service Employees Providers 29% 26% Software Hardware How Most Companies are Prioritizing IT Spending for 2014 Software 2 Cloud Infrastructure Virtualization Software: The Wild West of IT Spending Software asset costs represent the single greatest growth area in most IT budgets. Emerging technologies, such as virtualization and cloud-based SaaS solutions, deliver greater flexibility. However, they also generate increased complexity (e.g. managing multiple licensing requirements) as well as additional supplementary costs (e.g. increased software demand). 275 300 325 '12 $285 Billion '13 $304 Billion '14 $324 Billion 2013 Worldwide IT Forecast: Spending Growth 7% 6% 5% 4% 2% Enterprise Devices IT Services Data Center Telecom Software Systems Services IT CATEGORY Non-IT Technology Spending This trend is growing, largely due to the ease with which non-IT 15% of companies state that 41% or more departments can buy services of their total enterprise IT expenditures occur outside the corporate IT budget. straight from the cloud. Top 5 Benefits of IT Cost Transparency Optimize how business units consume IT resources. Drive down total enterprise IT costs. Focus on IT spending that delivers real business value. 31 ROI ROI ECE 4000 0012 3456 7899 Cardholder Name Enable visibility, billing, and future chargeback. #1 Understand which technologies are the best candidates for virtualization and consolidation. How Apptio Can Help IT Service Costing transforms your general ledger cost data into the true, fully-burdened costs of your services, technology towers, projects and other important dimensions of IT. Assess your business demand for IT services, translate demand into a resource plan, and develop a budget that more accurately reflects business needs. Apptio Deliver an automated monthly Bill of IT report to your business partners showing how much of each technology service they consumed and at what cost. Benchmark your IT costs and other metrics throughout the year. For more on how Apptio can help, please visit: www.apptio.com/transparency APPTIO Innovation is Your Business Sources: http://online.wsj.com/article/BT-CO-20130702-706211.html http://omtco.eu/references/sam/it-costs-the-costs-growth-and-financial-r isk-of-software-assets/ http://www.gartner.com/newsroom/id/2358015 http://www.computerworld.com/s/artic le/922142/Forecast_2013_Buildıng_a_better_IT_budget?pageNumber=1 SPENDING GROWTH % SPENDING (IN $TRILLIONS) +6.4% -------- $3.2 -------- +2.8% --..--..- ------- $3.4 ........ +2.2% ----..- -------- $3.5 -------- +2.1% %24 -------- $3.6 +0.9% $3.7 (Projected) %24