Apptio, Inc. (APTI - Free Report) has announced the introduction of the “economic framework” for the cloud at the 2016 Technology Business Management (TBM) Conference.
How it Works?
Built into Apptio’s TBM applications, the framework will enable Chief Information Officers to take informed strategic decisions with regard to their cloud implementation. The economic framework will enable categorization and estimation of cloud costs with respect to an organization’s overall technology spending. This will enable IT leaders to have a visual perspective on their cloud spending and aid their judgment for further cloud investments.
We note that Apptio enjoys strong relationships with leading cloud Infrastructure as a service (IaaS) providers such as Amazon.com, Inc.’s (AMZN - Free Report) Amazon Web Services (AWS) that enables it to simplify the process of data acquisition and modeling.
Notably, the company also launched the SaaS Insights application that will enable it to delve deeper into enterprise applications such as Office 365 and Salesforce and come out with actionable insights on cost, adoption and usage.
What this Means for Apptio?
As per an IDC report, worldwide spending on public cloud services is estimated to reach $195 billion by 2020 growing at a CAGR of 20.4%. Given the huge scope for growth in the cloud space, the company’s initiatives to boost the platform with its applications looks aptly timed and poised to witness steady growth in the coming years.
We note that competition in the cloud applications space is intensifying with the presence of the likes of ServiceNow, Spiceworks and BMC Remedy among others. However, strong relationships with cloud leaders such as Amazon, which is the most popular cloud platform right now, will ensure that the company remains in good stead in the long term.
Zacks Rank & Key Picks
At present, Apptio has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Amber Road, Inc. (AMBR - Free Report) and Apigee Corporation , both carryinga Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Amber’s current year improved to a loss of 63 cents from a loss of 71 cents over the last seven days.
The consensus estimate for Apigee has narrowed down to a loss of $1.16 from a loss of $1.18 over the last 60 days.
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