Bellevue-based Apptio's headcount up 43% since its sale to IBM last year

Bellevue-based business software company Apptio has expanded its staffing significantly since it was acquired by IBM for $4.6 billion in August of last year.

According to Apptio General Manager Ajay Patel, the company now has about 2,000 employees, up from about 1,400 a year ago. Patel said IBM and Apptio have added roles in sales, marketing and customer success, among others, and that investment has translated to a growth in Apptio's business.

"As our business grows, our investment will continue to grow," Patel said. "Will we do another big injection of investment? Probably not. We need to observe the team and get them productive, and then continue growing in strategic areas."

Patel added that Apptio is also eyeing growth through mergers and acquisitions. Although he didn't name specific companies, Patel said companies in cost management and artificial intelligence are appealing.

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Apptio, founded in 2007, helps clients monitor the return they're getting on their tech spending. Its clients include Nike, FedEx and MetLife. Apptio went public in 2016 but was acquired in 2019 by Austin-based private equity firm Vista Equity Partners for $1.94 billion. Vista Equity in turn sold Apptio to IBM.

In February, co-founder and former CEO Sunny Gupta announced he was stepping down. Patel and Apptio President Larry Blasko took leadership of the company after. Gupta is now the chairman emeritus at Apptio and an adviser to IBM. Apptio co-founder Kurt Shintaffer, previously the company's chief financial officer, has also stepped out of his position since the IBM acquisition.

Patel said Apptio is keeping its Bellevue office space at Plaza East. He estimated about 30% of the company's employees are based in the Seattle area. He added that the investment and reach gained with IBM has boosted Apptio, particularly in gaining traction in overseas markets.

IBM generated $15.8 billion in revenue during the second quarter, up 2% year over year. Its software business, which houses Apptio, generated $6.7 billion in revenue during the quarter, up 7.1% year over year.

Patel said Apptio will remain an intact operating business within IBM, and he is part of the IBM software leadership team. As for the future of the Apptio brand, according to Patel, there is some debate. Patel said many view Apptio as a brand only for large, elite companies, but the goal is for the technology to be ubiquitous regardless of client size.

Patel added that, as hard as it was to lose Gupta, the former CEO is still available as an adviser. As for new services Apptio is considering, according to Patel, businesses with shared services are a natural next step, for example a hospital that wants help managing economics around hospital beds.

"You'll see us do a lot more in the areas of facilities and real estate because that's really an easier starting point," Patel said. "It's natural for us to bring cost and value into our asset management capability there."

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