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The rise of FinOps already fueled multiple acquisitions, including IBM’s plan to acquire Apptio for a whopping $4.6 billion, but I bet there’s more to come. And there’s another trend I’m sure we’re not done hearing about: parametric insurance. — Anna
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The ongoing rise of FinOps
When cloud optimization startup ProsperOps raised a $72 million funding round last February, my colleague Kyle Wiggers argued that consolidation in this space wasn’t necessarily over.
Sure, several cloud optimization companies had been nabbed by incumbents over the years, from Cloudyn’s acquisition by Microsoft in 2017 to CloudHealth Technologies’ purchase by VMware in 2018. But more could still follow, Kyle argued, citing Intel’s 2022 $650 million purchase of Granulate as evidence.
He was right: In a busy week for M&A news, IBM announced its intent to buy Apptio from its current private equity owner for $4.6 billion in cash. In 2019, Apptio itself had acquired Cloudability, a cloud spending management vendor. Reporting on IBM’s announcement, Ingrid Lunden noted that Apptio’s activities fall into a broader category.
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The rise of FinOps in the tech industry has been nothing short of remarkable. With companies like ProsperOps raising significant funding and larger players like IBM acquiring key players in the market, it’s clear that cloud optimization and financial operations are a critical focus for businesses. But what’s next? Stay tuned to TechCrunch to find out.
In addition to FinOps, another trend on the horizon is parametric insurance. As technology continues to advance, traditional insurance models are being augmented by parametric insurance solutions that leverage real-time data and automation. This innovative approach holds exciting potential for both insurers and policyholders.
So, keep an eye out for further exciting developments in the world of FinOps and parametric insurance. The future of these industries promises to be intriguing, dynamic, and full of opportunities. Don’t miss out on the next big news — subscribe to the TechCrunch Exchange newsletter now!
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