We all know how challenged IT organizations can be when it comes to making a case for their fair share of the corporate budget, but at least they don't have to worry about building a financial application for tracking the IT budget from scratch.
Apptio is adding a budgeting and forecasting module to its suite of IT financial and performance-management applications that it makes available as a service.
Given that most IT budgets these days are fluid due to the rolling nature of the overall corporate budget, IT leaders are being asked to forecast their IT spending on a monthly, sometimes even weekly basis. That creates a management challenge, especially when the IT department typically only used spreadsheets to create budgets when they were required only annually or bi-annually.
Apptio is trying to solve that problem by not only making it easier to set up these systems, but also to give IT organizations a framework for setting up budgets in a way that the finance department can easily understand, says Michel Feaster, vice president of products for Apptio.
The Apptio applications make it easier for IT organizations to assign specific IT costs to individual departments, thereby letting each application owner know exactly what the IT costs associated with any given business initiative are likely to be.
As internal IT organizations find themselves under more pressure than ever to justify their budgets in the face of external competition from IT service providers leveraging cloud computing platforms, the need to be able to transparently identify the real cost of delivering any IT service has become critical.
Apptio is one of a handful of companies that specialize in tools to help IT organizations make the case for the services at a time when the business' general perception is that cloud computing services can automatically do everything less expensively than the internal IT department. Of course, it might be a little ironic to have to use a cloud computing service to help defend internal IT deployments, but we take help wherever we can find it these days.