Lesser-Known Tech Stocks to Buy: Apptio (APTI)
Market Cap: ~$650 million
While many companies spend millions of dollars on information technology infrastructure, many tasks still are done the old-fashioned way. A prime example is benchmarking (for things such as overall performance and costs). In many cases, this still is done using basic spreadsheets!
There’s a much better way, of course, and the solution comes from Apptio Inc (NASDAQ:APTI).
Apptio has pioneered a new category called Technology Business Management (TBM), in which it provides customers with best practices to optimize their IT assets, whether that’s for the cloud, hybrid cloud or on-premises installations.
There’s still the challenge of developing a new category, which takes time because it involves educating customers. Thus, Apptio has invested heavily in conferences, roadshows and committees, such as the TBM Council — a group of 3,500-plus business leaders “dedicated to advancing the discipline of technology business management.”
These efforts are helping Apptio gain traction with, among other things, U.S. federal agencies. That’s a lucrative market opportunity of roughly $90 billion in IT spend per year.