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Liz McMillan

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News Item

Apptio's Server Virtualization Cost Transparency Solution

New Offering Helps IT and Finance Teams Evaluate, Prioritize and Track Virtualization Initiatives

Apptio, a provider of on demand IT Cost Transparency software, today introduced a Server Virtualization Cost Transparency solution to help IT and Finance teams evaluate, assess and accelerate expansion of virtualization initiatives. The new solution provides best practices for cost allocation and chargeback of physical and virtualized infrastructure, integrated analysis of server cost and utilization to drive prioritization of virtualization targets, and ongoing ROI management of virtualization initiatives.

"Using Apptio, we achieved visibility into the cost of virtualization in our environment," said Brian Jeide, director, managed services architecture at Motricity. "It enables us to allocate the costs of IT services across both physical and virtual infrastructures, and provides us with the ROI quantification necessary to guide and accelerate broader adoption of virtualization across our data centers."

Server virtualization creates a particular challenge for tracking infrastructure costs and managing cost allocation policies. When a physical server is dedicated to a single IT service, allocating the cost of a server is a relatively simply process. However, when a physical server is virtualized and provisioned out to many services, tracking and allocating the cost of that physical server is nearly impossible. When those virtual machines are dynamically moved from server to server, costs become even more difficult to track. Apptio's Server Virtualization Cost Transparency solution applies a method of activity-based costing that works with automated data feeds from server virtualization systems to accurately allocate infrastructure costs in a virtualized world.

For example, a Fortune 100 Internet media company reduced server costs by expanding its virtualization deployment based on information from Apptio's software. Having already virtualized 30 percent of its data center, the company wanted to maximize the ROI of further server virtualization, but needed better visibility into the cost and utilization of its remaining servers. Using Apptio as a single repository to show how cost and server utilization data across all physical and virtual servers are allocated to IT services and business units, they were able to understand the best case configuration, track utilization rates of all servers over time, assess resource needs, and identify servers with low utilization as candidates for consolidation.

Running the Business of IT -- Virtualization ROI
Apptio's Server Virtualization Cost Transparency solution follows on the heels of its Cloud Cost analyzer and other templates that make it easy for IT managers to quickly realize value from Apptio's IT Financial Management systems. Apptio's software includes cost allocation modeling to assign unit costs to services, powerful analytics to provide deep understanding of fundamental cost drivers and opportunity scenarios, rich reporting to communicate among IT and across business leaders, and the workflow necessary to automate financial management processes. Together, these capabilities empower enterprises to "run IT like a business" while optimizing financial efficiency.

Apptio's IT Cost Transparency software is purpose built to help IT professionals understand the total cost of IT services they provide to the business, and drive decisions that optimize the return on investment of IT. Spend data (hardware, software, facilities, labor) can be manually entered into Apptio, imported from standard file formats, or integrated to existing sources of data such as general ledgers and third party asset databases. As data enters the system, specialized algorithms help identify patterns that represent cost allocation relationships and accelerate model creation. Weights and filters can be defined and applied to encode the logic for translation between IT invoices and general ledger entries and IT services. Once that logic is established, it can be applied in an automatic fashion to ongoing data uploads to help enterprises maintain an accurate account of the cost of IT services, drive a process of continual cost optimization, and communicate the value of IT across the organization.

"Apptio has encapsulated the best practices of tracking the cost and ROI of virtualization to help enterprises more effectively manage their physical and virtual infrastructure," said Eric Berg, vice president of product management at Apptio. "Our new Server Virtualization Cost Transparency solution helps customers get beyond the early stages of virtualization to get the most of out of their investment, accelerate the cost savings benefits of virtualization, and track the allocation of those costs across both their physical and virtual environments."

The Apptio Server Virtualization Cost Transparency solution in combination with the Apptio platform provides the following benefits:

-- Track total cost of ownership across physical and virtualized servers over time

-- Easily and accurately allocate underlying hardware costs to virtual machines

-- Provide an IT services and business unit view of virtualization cost and usage

-- Analyze cost and utilization data to direct and optimize their virtualization strategy

-- Provide a business unit "Bill of IT" that spans physical and virtual services

Apptio's Server Virtualization Cost Transparency solution is generally available for a variety of server virtualization technology including VMware vSphere(TM) 4.

Also announced today Apptio releases Server Virtualization Cost Transparency solution for VMware vSphere 4.

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