Houlihan Lokey Advises Kubecost
Houlihan Lokey is pleased to announce that Kubecost has been acquired by IBM. This acquisition accelerates IBM’s efforts to enhance hybrid cloud cost management capabilities, particularly in Kubernetes environments, and is part of IBM’s broader strategy to strengthen its FinOps portfolio following the acquisition of Apptio. The transaction closed on September 13, 2024.
Kubecost is a leading provider of Cloud Native FinOps. It helps organizations monitor, manage, and reduce costs across Kubernetes clusters in cloud, on-premises, and hybrid environments. Key features include real-time cost allocation, resource efficiency insights, cost transparency, and recommendations for cost savings. Kubecost is widely used for cloud cost optimization, financial reporting, and resource management, serving industries such as technology, finance, and healthcare. Kubecost allows for seamless integration with Kubernetes and cloud billing APIs, providing FinOps teams with comprehensive workload visibility to optimize cloud spending and prevent resource-based outages in a single solution.
IBM Automation is a division within IBM focused on developing AI-powered automation solutions to streamline business operations, optimize performance, and reduce operational complexity. This includes tools for cloud management, IT operations, and workflow automation. IBM Apptio, acquired in 2023, helps organizations manage and optimize their IT spending, providing visibility into cloud costs and financial governance. Together, IBM Automation and Apptio create a comprehensive suite for managing and optimizing cloud resources, enhancing cost efficiency, and supporting FinOps in hybrid cloud environments.
Strategic rationale for the acquisition:
- Strengthening FinOps Capabilities: The acquisition supports IBM’s broader strategy to enhance its FinOps offerings by integrating Kubecost’s Kubernetes cost monitoring tools into IBM’s existing solutions like Cloudability and Turbonomic. This allows IBM to offer comprehensive cloud cost management and optimization across diverse cloud environments, addressing the growing complexity of modern workloads.
- Complementing Hybrid Cloud Strategy: This acquisition aligns with IBM’s focus on hybrid cloud solutions, particularly as businesses continue adopting Kubernetes for containerized applications across various cloud platforms. Kubecost’s capabilities will help IBM’s customers optimize their hybrid cloud investments more efficiently, reinforcing IBM’s position in this space.
Houlihan Lokey served as a sellside advisor to Kubecost.