Application portfolio rationalization is the act of streamlining the existing application portfolio with an explicit goal of improving efficiency, reducing complexity, and lowering total cost of ownership (TCO) through a myriad of processes. Application rationalization sets the basis for other cost-saving endeavors, including:
Software license optimization
Data storage optimization
Retiring aged and low-value applications
Standardizing common technology platforms.
Application rationalization, or active application portfolio management, is crucial to the overall health of the company, as there will always be a future event that calls for adjusting the application landscape.
For application rationalization to be successful, we must make sure to align business with IT. In this blogpost we will guide you through a framework that ensures a fluid application rationalization initiative in six steps.