IBM's Strategic Partnership with Microsoft and the Launch of Apptio portfolio on the Azure Marketplace

IBM and Microsoft have an established and successful strategic partnership, marked by significant collaborations like ARO (Azure Red Hat OpenShift). In 2021, the general availability of Red Hat OpenShift on Azure evolved into Azure Managed OpenShift on Azure. In 2023, IBM achieved Partner of the Year recognition with over 13 accreditations across the Microsoft portfolio and seven in 2024.

ARO has been a cornerstone of this partnership, offering businesses a comprehensive hybrid cloud solution that seamlessly integrates Azure services with Red Hat OpenShift. This partnership has also driven IBM’s expansion on the Azure cloud marketplace, where IBM’s technology offerings have gained substantial traction.

In a significant initiative to enhance their long-standing relationship, IBM and Microsoft are expanding the partnership by bringing additional IBM solutions to businesses through the Azure Marketplace. This strategic move aims to provide businesses with a more streamlined and integrated experience, allowing them to access a broader range of IBM software and services directly within the Azure ecosystem.

Both IBM and Microsoft stand to benefit from this partnership, as Techaisle’s research indicates a growing momentum towards Azure Marketplace. 47% of businesses consider it to be secure, 45% find it well-understood, 44% utilize it due to its extensive footprint, and 41% perceive it as a mature platform. These positive perceptions highlight Azure Marketplace’s increasing appeal to businesses seeking reliable, comprehensive cloud solutions.

Expanding IBM's Offerings on Azure Marketplace: A Strategic Partnership

There are few absolute certainties in technology – but one subject that is beyond debate is that the cloud has permanently changed how technology is deployed and consumed within businesses, and AI is the latest disruptive technology. We know that AI is everywhere, but having arrived in a hurry, the changes made in response to its adoption will not leave abruptly.

Techaisle research shows that 72% of SMBs, 97% of midmarket firms, and 100% of enterprises believe technology is critical to business success. However, IT efficiency can be challenging to achieve. As the business pressures increase, the greater is the need for automation and orchestration. Business unit leaders seek inputs from IT to help achieve business goals. In straightforward terms, in 86% of firms, IT is expected to do more and is even seen as a source of innovation. In 79% of firms, IT is expected to deliver business outcomes faster. However, 80% of IT’s time is spent on support and maintenance; in 65% of organizations, IT is left with little time for innovation.

One of the key highlights of this expanded partnership is the introduction of Apptio Technology Business Management (TBM) software to the Azure Marketplace. Apptio, an IBM company, is recognized as a market leader in TBM and FinOps. It empowers organizations to make data-driven technology investment decisions and optimize costs across cloud and on-premise environments.

The roll-out of Apptio's product suite on Azure Marketplace will occur in phases, beginning with IBM Targetprocess on October 29^th, 2024. Targetprocess is an Enterprise Agile Planning (EAP) software that integrates with Azure DevOps, facilitating better budget planning and management across diverse technology environments. IBM also plans to bring its flagship IT financial management solution, IBM Apptio Costing and Planning, to the Azure Marketplace in the first quarter of 2025. These initiatives highlight a commitment from both IBM and Microsoft to provide businesses with a comprehensive suite of solutions to manage and optimize their technology investments within the Azure cloud platform.

This expansion of collaboration signifies a new phase in their decades-long association, primarily rooted in IBM's consulting services practice. IBM is making a concerted effort to increase its presence on the Azure Marketplace as a critical component of its broader strategic partnership with Microsoft, designed to capitalize on the expanding cloud market. Building upon the historically robust relationship between IBM Consulting Services and Microsoft, this partnership focuses on three main pillars: expanding IBM's technology offerings on Azure, leveraging IBM's expertise in hybrid cloud and infrastructure modernization, and meeting the growing demand for AI solutions.

The joint value proposition of the IBM and Microsoft partnership is centered around leveraging their combined strengths, heritage, and extensive network and partner ecosystem to deliver innovative solutions that empower clients to build upon their existing infrastructure, enhance agility, and optimize technology investments within the Azure cloud ecosystem.  IBM and Microsoft boast a robust network of professionals specializing in hybrid and multi-cloud environments, AI, and security. This network is characterized as being "industry smart" and "multi-cloud adept," indicating a high level of expertise and experience.

The partnership leverages both companies' combined expertise and innovation to deliver meaningful solutions and industry firsts by aligning their technology portfolios and consulting services. This is rooted in their shared history of shaping the modern cloud. One of the core value propositions is the ability to build upon a client's existing infrastructure, optimizing it using IBM and Microsoft tools to create a faster, more agile organization with a stronger competitive edge.

The partnership also emphasizes consolidating purchasing, invoicing, and resource consumption by integrating Apptio products into the Azure Marketplace. This streamlined approach benefits clients with existing Microsoft relationships, allowing them to leverage the Microsoft Azure Consumption Commitment (MACC) program and apply 100% of IBM software costs.

Overcoming Adoption Challenges: IBM's Go-to-Market Strategy for Azure Marketplace

A significant challenge for IBM has been driving organic adoption of its products on the Azure Marketplace, historically relying on direct sales and private offers rather than self-service discovery. To address this, IBM and Microsoft are collaborating on a go-to-market strategy that includes targeting new clients who are not traditional IBM customers but could benefit from IBM's offerings on Azure. Additionally, the partnership aims to leverage the strength of existing relationships by utilizing their respective enterprise agreements and established customer bases to drive the adoption of IBM's offerings on the Azure Marketplace.

IBM and Microsoft are collaborating to target new clients and expand their joint offerings. Leveraging IBM's proven expertise in the Azure marketplace, the partnership will likely adopt best practices such as solution accelerators, developer evangelism, and account-based marketing to attract a broader customer base.

IBM recognizes the significance of offering solutions across a wide geographic range, including within sovereign data center environments. Although the launch of Apptio’s product family on Azure Marketplace initially targets US data centers, there are plans for expansion outside the US. IBM notes ongoing discussions regarding deploying technologies within sovereign data centers, driven by customer demand and changing market conditions.

Maximizing ROI with Technology: A Business Imperative

In today's rapidly evolving business landscape, businesses are increasingly focused on maximizing their technology investments' return on investment (ROI). Technology is no longer sufficient to simply exist; it must demonstrably drive business outcomes and contribute to the organization's overall success. Organizations are seeking technology solutions that can help them optimize costs, improve productivity, enhance customer experiences, and ultimately drive revenue growth. Techaisle's survey of 2450 businesses revealed that a significant challenge is measuring the ROI of current or planned technology investments. Over half of respondents (76%) reported difficulty determining ROI, while 50% could not demonstrate tangible business outcomes.

Apptio is crucial in bridging the gap between technology investments and business outcomes. The solution provides industry-leading capabilities for managing and optimizing technology spending across various environments, including public cloud, on-premises infrastructure, software licensing, and end-user devices. Apptio's Technology Business Management (TBM) and FinOps disciplines enable organizations to align their technology spending with business strategy and value. This is achieved through comprehensive cost and performance optimization and timely data-driven decision-making facilitated by collaboration between engineering, finance, and business teams.

Improving productivity, driving operational efficiency, and accelerating decision-making have also become critical business challenges. Organizations face mounting pressure to do more with less, optimize their operations, and make informed decisions swiftly to remain competitive. Businesses are actively seeking ways to streamline processes, empower their workforce, and leverage technology to enhance productivity and make faster, data-driven decisions.

Targetprocess is a robust Enterprise Agile Planning (EAP) software that empowers organizations to maximize productivity, efficiency, and decision-making. The solution provides complete visibility across all teams, allowing for the swift identification of resource needs, efficient work scheduling, effective dependency management, and an understanding of the impact of changes on the workforce. Targetprocess accelerates decision-making by enabling businesses to optimize high-returning investments through continuous review of value streams and rapid deployment of solutions via its Solution Library. This ensures agility and swift value delivery. By aligning work, products, and portfolios with business strategy through consolidated financial views, Targetprocess provides decision-makers with organization-wide visibility into strategic alignment. This alignment is further strengthened by dynamically planning and managing work, resources, agile programs, investments, and portfolios, ensuring continuous alignment with the overarching business strategy.

Final Techaisle Take

The strategic partnership between IBM and Microsoft is a significant step forward in the technology ecosystem landscape. This collaboration strengthens their relationship and positions them to compete better by offering customers more choice and flexibility. IBM is bringing Apptio and a more comprehensive range of its solutions to the Azure Marketplace, showcasing its commitment to a hybrid cloud future.

This strategy goes beyond Apptio’s portfolio. IBM is actively re-platforming existing solutions and developing new products specifically for Azure, like the AI-powered watsonx suite. These offerings highlight IBM's dedication to delivering cutting-edge technologies to Azure clients. IBM's Azure Marketplace expansion marks a significant development in its hybrid cloud strategy and partnership with Microsoft. By leveraging Apptio’s portfolio, its strengths in AI and consulting, and its strategic approach, IBM is well-positioned to capitalize on the demand for cloud-based solutions. Success hinges on IBM's execution, overcoming marketplace adoption challenges, and effective customer targeting. This strategic expansion, spearheaded by Apptio's technology, suggests IBM is approaching the Azure ecosystem with foresight, adaptability, and a deep understanding of customer needs, setting the stage for a potentially impactful journey.

Recognizing GSIs' crucial role, IBM actively supports them in deploying its technology on Azure. This includes providing access to IBM's AI expertise and facilitating the integration of IBM solutions into GSI service offerings.

In conclusion, the availability of IBM's software on the Azure Marketplace empowers businesses to address critical challenges and capitalize on significant opportunities. The Azure marketplace enables organizations to improve productivity and drive operational efficiency by providing a streamlined and integrated platform. For example, Apptio's TBM and FinOps solutions, when accessible through Azure, will help connect technology investments to business outcomes, optimizing costs and ensuring alignment with strategic objectives. Similarly, IBM Targetprocess on Azure will equip businesses to maximize productivity and accelerate decision-making through enhanced visibility, resource management, and agile planning capabilities. This collaboration between IBM and Microsoft directly addresses the pressing need for businesses to maximize ROI, streamline operations, and make informed decisions quickly in today's dynamic landscape. By leveraging these solutions within the familiar Azure environment, organizations can seamlessly integrate powerful tools into their existing workflows, ultimately fostering growth and enhancing their competitive advantage.