Apptio has made its first acquisition since its $1.9 billion private equity deal closed in January, snapping up Portland’s Cloudability, which also helps companies track their spending on cloud services, for an undisclosed amount.
Cloudability, ranked #63 on the GeekWire 200, had raised $39.8 million in funding to date, according to Crunchbase. The companies plan to integrate their products to “focus on cloud/DevOps capabilities including deeper reserved instance planning, predictive forecasting, optimizing workflow integration to CI/CD tools like Jira and Slack and rightsizing based on leading monitoring tools like DataDog,” they said in a press release.
Apptio, founded in 2007 based in Bellevue, has steadily grown since going public in September 2016. It offers companies that want to track how much money they are spending across cloud services — which is a lot harder than it sounds — tools and services that help companies analyze that spending and forecast future spending.
Cloud pricing is notoriously complicated, and spending on cloud services is managed by individual departments inside a lot of companies, Cloudability co-founder J.R. Storment said in an interview with GeekWire in April. “For most companies, cloud is still a small line item in the larger IT budget,” he said, but that is changing fast as older companies move operations into the cloud and start looking at bigger multiyear contracts to manage their spending.
Last November, after Apptio agreed to be acquired by Vista Equity Partners, CEO Sunny Gupta told GeekWire that the deal would allow Apptio “to accelerate growth in the private markets, which sometimes can be harder to do in the public markets because of the fickleness or whatever may happen in the public market.” Cloudability has around 135 employees, according to The Oregonian, which would take Apptio well over the 1,000 employee mark when the deal is completed.
Apptio has made two other acquisitions over the past year and a half, buying a cost-analysis company called FittedCloud right before the Vista Equity Partners deal was announced and acquiring Digital Fuel for $42.5 million in February 2018.