While finalizing your strategic planning for 2022, Don’t forget your ITAM planning! Start the new year right with an optimized application portfolio management (APM) and application rationalization.
The challenge of complex application portfolios
Without the proper tools, most organizations are blindsided on the software usage, redundancy, and unused purchases that a department may have. An oil and gas company, for example, may need a tool to monitor the usage of their exploration and production (E&P) software. This could help the development team to evaluate the task load of each member and the efficiency of the usage of purchased apps.
Keeping track of application inventory
On the other hand, the IT services team may find a tool that automatically provides active heatmap reports very useful. They may also want to take advantage of the tool’s true active usage feature. This is where application rationalization takes place. Having insight on the employees’ app usage can help the stakeholders to better evaluate business processes and operating costs.
Understanding software usage to avoid application ballooning
Mergers and acquisitions (M&A) can duplicate portfolios. This could result in a merged organization that has redundant applications than it actually needs, which may lead to unnecessary costs. Poor application inventory can lead to increased costs, inefficiency, and slow return on investment (ROI).
What is application rationalization?
Considering all these scenarios, application rationalization should take place. Application rationalization is an activity that right-sizes an organization’s application portfolio to improve efficiency and reduce costs.
A rigorous rationalization approach, driven by quality data can save on significant software costs. Well-planned software cost management can help plan the total cost of ownership (TCO) associated with IT over time.
Through our webinar, we hope to help you better understand: