Apptio, a company led by co-founder Sunny Gupta, started in 2007 as an initiative to reduce tech spending. Apptio’s main objective is to streamline budget management, enabling companies to not only track their expenses but also assess the value of their tech investments. Apptio’s success is largely attributed to its inventive approach in handling tech budgets.
The company made a name for itself in 2016 when it established the new category called “Technology Business Management.” Subsequently, Apptio was purchased by Vista Equity Partners in 2019 for $2 billion, and was later sold to IBM for $4.6 billion in a commemorating milestone.
Gupta’s keen questioning and ability to understand the market’s needs has been a significant contributing factor to Apptio’s success. Early in his venture, Gupta formed a customer advisory board that has since assisted in refining Apptio’s services. The board has effectively tailored the company’s tools to address customer needs, enabling Apptio to stay competitive in the market.
Despite the hurdles in 2016’s market conditions, Apptio succeeded in raising $130 million in private funding before its IPO.
Apptio’s journey: Basement beginnings to billion-dollar sale
Gupta praises the strong corporate culture and unwavering determination as key elements of this success. The influx of capital allowed Apptio to expand its technological capabilities and outreach, further cementing the company’s growth trajectory.
What started in Gupta’s basement in Bellevue, Washington, is now a major local software corporation. Apptio boasts having over 1,300 employees and caters to about 1,800 clients. The journey signifies the company’s resilience in the face of market adversities and its commitment towards innovation.
Although Gupta has resigned as CEO, he continues supporting the tech sector as a strategic director at Madrona. In this role, he highlights the potential of Seattle, home to tech giants Amazon and Microsoft, as a nurturing landscape for budding startups. Gupta’s continuous efforts aim at advancing the region’s technological progression, further upholding its reputation as a hub for entrepreneurship.
