Application portfolio optimization
Software applications form one of the major areas of corporate IT investment. Apart from the initial investment, ongoing maintenance of applications is one of the major areas of IT spends for businesses.
A variety of reasons prompt the need for application portfolio optimization. These include:
- Large number of software applications with numerous redundancies
- Difficulty in coming to grasp with the underlying basis of IT application costs
- Misalignment of application portfolio with future business needs
- Lack of consistency in the stacks used to run applications
- How to leverage cloud computing models to optimize costs
- In some cases, mergers and acquisitions could also result in initiation of a rationalization exercise.
How we can help
Our Application portfolio optimization covers three objectives:
- Architecture compliance: Complying with architectural standards and alignment with the target architecture
- Strategic enablement: Supporting the long-term business strategy
- Cost reduction: Reducing application and infrastructure costs
Rationalization programs can increase in complexity significantly as the application landscape expands.
Hence, we follow a phased approach that includes the following steps:
- Definition of business capability required in line with business strategy
- Definition of architectural standards, where necessary
- Establishment of governance and evaluation criteria
- Create application inventory
- Identify gaps and overlaps
- Develop rationalization roadmaps
- Plan for roll out of the roadmap
- The amount of data and analysis required to make application rationalization decisions can be overwhelming. We have a phased approach that limits the amount of data required to make rationalization decisions.
- We define processes and governance that are sustainable and allow clients to manage their application portfolio going forward.
- Our approach looks beyond opportunistic cost-cutting and results in rationalization decisions that support business strategy and deliver long-term benefits.