Case Study: Freddie Mac improves IT cost transparency and business decision-making with Apptio

Freddie Mac cuts IT cost reporting to 1-2% of actual annual costs with Apptio

Freddie Mac faced a challenge where its business units viewed IT as a costly black box, with costs allocated via complex and opaque fixed percentages. To bring transparency, Freddie Mac partnered with Apptio to implement Technology Business Management (TBM), aiming to translate IT infrastructure costs into understandable business services.

Using Apptio's TBM solution, Freddie Mac built a consumption-based showback and then chargeback model, linking IT costs directly to business service usage. This data-driven approach improved IT-business communication, enabled cost-saving decisions by business units, and shifted the conversation to value. Remarkably, the business units themselves championed the move to the new transparent model, with one leader stating Apptio had taken them "from darkness and into the light."

Freddie Mac