IBM’s Apptio targets ‘AI sprawl’ in latest FinOps rollout – CFO Dive
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The tool can help users evaluate whether AI initiatives are incurring costs without corresponding business value or usage, an executive said.
Apptio’s new tool, announced June 5, joins an expanding portfolio of technology business management and FinOps offerings.
In its latest rollout, the company also introduced a product designed to provide companies with a mix of both traditional on-premises and cloud-based software resources gain visibility into financial impacts of application migrations. The Hybrid IT TCO Impact tool provides a “dedicated financial view into application migrations, tracking cost shifts and ROI across the hybrid IT landscape,” according to a press release.
Global IT spending is expected to total $5.61 trillion in 2025, a 9.8% increase compared with 2024, Gartner projected in January. However, President Donald Trump’s tariff announcements have since injected uncertainty into the IT market, according to IDC analysts.
In a Boston Consulting Group survey conducted in April, 44% of IT leaders said their organization had deferred discretionary tech projects in the wake of the president’s tariff announcements, according to results released last month.
“The one bright spot in IT leaders’ plans is their ongoing commitment to AI,” BCG said in a report on the findings. “Despite the current uncertainty, fully half say that they plan to expand their supplier base for this key technology in the near term.”
While AI investment has become a strategic priority in recent years, CEOs say that only 25% of such initiatives have delivered the expected ROI, according to a May IBM report. Sixty-four percent of surveyed chief executives acknowledged that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organization.
Apptio’s AI TCO product can assist organizations with evaluating whether AI initiatives are incurring costs without corresponding business value or usage, according to Fong.
She said it can also help provide visibility into whether some business units are consuming AI resources more than others, or whether a team is paying for a new AI application that has not been reviewed by IT or one that duplicates a tool that is already being used elsewhere in the organization.
Prior to the latest rollout, Apptio customers could track technology and cloud costs at a high level, but with the recent surge in AI adoption and usage, the company saw greater need for a dedicated tool to not only track AI costs but correlate them with business outcomes, ROI and adoption, Fong said.
“It’s about addressing a pervasive and growing concern for most organizations in a simple, straightforward manner that saves the time, effort and resources it would take to build this themselves,” she said.
Get the free daily newsletter read by industry experts
State changes to licensing rules are chipping away at a decades-old system that has largely required CPA candidates to complete what effectively amounts to a fifth year of schooling.
With the Trump administration embracing digital assets, finance leaders need to get educated on the potential risk and reward of cryptocurrencies and stablecoins.
Subscribe to CFO Dive for top news, trends & analysis
Get the free daily newsletter read by industry experts
State changes to licensing rules are chipping away at a decades-old system that has largely required CPA candidates to complete what effectively amounts to a fifth year of schooling.
With the Trump administration embracing digital assets, finance leaders need to get educated on the potential risk and reward of cryptocurrencies and stablecoins.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
The tool can help users evaluate whether AI initiatives are incurring costs without corresponding business value or usage, an executive said.
Apptio’s new tool, announced June 5, joins an expanding portfolio of technology business management and FinOps offerings.
In its latest rollout, the company also introduced a product designed to provide companies with a mix of both traditional on-premises and cloud-based software resources gain visibility into financial impacts of application migrations. The Hybrid IT TCO Impact tool provides a “dedicated financial view into application migrations, tracking cost shifts and ROI across the hybrid IT landscape,” according to a press release.
Global IT spending is expected to total $5.61 trillion in 2025, a 9.8% increase compared with 2024, Gartner projected in January. However, President Donald Trump’s tariff announcements have since injected uncertainty into the IT market, according to IDC analysts.
In a Boston Consulting Group survey conducted in April, 44% of IT leaders said their organization had deferred discretionary tech projects in the wake of the president’s tariff announcements, according to results released last month.
“The one bright spot in IT leaders’ plans is their ongoing commitment to AI,” BCG said in a report on the findings. “Despite the current uncertainty, fully half say that they plan to expand their supplier base for this key technology in the near term.”
While AI investment has become a strategic priority in recent years, CEOs say that only 25% of such initiatives have delivered the expected ROI, according to a May IBM report. Sixty-four percent of surveyed chief executives acknowledged that the risk of falling behind drives investment in some technologies before they have a clear understanding of the value they bring to the organization.
Apptio’s AI TCO product can assist organizations with evaluating whether AI initiatives are incurring costs without corresponding business value or usage, according to Fong.
She said it can also help provide visibility into whether some business units are consuming AI resources more than others, or whether a team is paying for a new AI application that has not been reviewed by IT or one that duplicates a tool that is already being used elsewhere in the organization.
Prior to the latest rollout, Apptio customers could track technology and cloud costs at a high level, but with the recent surge in AI adoption and usage, the company saw greater need for a dedicated tool to not only track AI costs but correlate them with business outcomes, ROI and adoption, Fong said.
“It’s about addressing a pervasive and growing concern for most organizations in a simple, straightforward manner that saves the time, effort and resources it would take to build this themselves,” she said.
Get the free daily newsletter read by industry experts
State changes to licensing rules are chipping away at a decades-old system that has largely required CPA candidates to complete what effectively amounts to a fifth year of schooling.
With the Trump administration embracing digital assets, finance leaders need to get educated on the potential risk and reward of cryptocurrencies and stablecoins.
Subscribe to CFO Dive for top news, trends & analysis
Get the free daily newsletter read by industry experts
State changes to licensing rules are chipping away at a decades-old system that has largely required CPA candidates to complete what effectively amounts to a fifth year of schooling.
With the Trump administration embracing digital assets, finance leaders need to get educated on the potential risk and reward of cryptocurrencies and stablecoins.
The free newsletter covering the top industry headlines
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
