The Business of Application Rationalization
Analyze application total cost using Apptio’s repeatable and pragmatic approach.
Address Sprawl Through Application Rationalization
You often seem to be fighting a losing battle against application sprawl. The business wants you to support more and more applications with fewer or the same resources. A big driver of the problem is that your users don't know, and aren't accountable, for how much it costs to maintain these applications.
The end result? Up to 80% of your budget is stuck keeping the lights on and supporting redundant, no-longer-used or low-value applications. Developing an application rationalization framework for determining which applications are worthy of additional investment, replacement or retirement can help you slay this monster of application sprawl.
Lack of Business Credibility Hurts Conventional Efforts
Most application rationalization efforts fail due to a lack of engagement with business partners. This is because IT lacks a credible way to understand and demonstrate application cost and value. Deep and broad cost analysis can be too slow and expensive to cover enough of the portfolio, while faster but over-simple analysis falls short of creating the trust and understanding needed for engagement and decisions.
You need a repeatable approach to application rationalization to make business sense out of disconnected financial, operational and project data about their application portfolio. Apptio TBM can help.
How Apptio TBM Can Help
Apptio’s Technology Business Management (TBM) solution enables a repeatable approach to application rationalization by automating the monthly process of transforming raw financial and IT data into analysis of application total cost, usage and value.
Apptio provides you and your analysts with self-service analytics to explore application cost, usage, and value information from different angles. Powered by in-memory calculation and query technology, you can pivot, slice, and filter to see not only new selections of data but also dynamically calculated costs and metrics.
Examples of supported analyses include total costs, application usage of resource, business usage of resource, service quality, portfolio attributes, data quality, and what-if scenarios. With Apptio TBM you can:
- Demonstrate potential and realized financial gains from application rationalization to justify additional funding for other projects.
- Drive alignment across application, PMO, I&O, IT Finance, and business partners with fact-based conversations based on the same shared data, unified from their respective sources of truth.
- Enable a repeatable, systematic approach with fresh monthly analysis that reveals trends, measures performance, and establishes a cadence for engaging stakeholders.
- Correlate total cost with factors needed for decision context including usage and business purpose.
- Help decision-makers quickly answer many of their own questions with interactive dashboards. Costs are more defensible and trusted as stakeholders explore different dimensions with self-service analytics.
- Enable analysts to quickly answer unanticipated questions and publish new interactive reports themselves, with point-and-click pivots (without requiring database administrators to restructure data and write SQL queries).
Real World Examples of Apptio TBM in Action
- After years of saying no to any application retirement, the service lines of a regional healthcare provider quickly agreed to retire 25 out of 600 applications after seeing the approximate ongoing operational expenses to keep each application.
- A real estate services firm demonstrated application TCO to application owners who agreed to retire 120 applications. In addition to reducing complexity, the company avoided $1.4M in annual server and storage expenses by repurposing assets instead of buying new ones.
- A telecommunications and Internet service provider was encountering business resistance to finishing a Siebel-to-Saleforce.com migration: a single sales team was still using the last instance for a single report. Sales leadership agreed to retire it once IT demonstrated that the report was costing the company $1 million a year.
- Case Study: Park Nicollet used Application Rationalization to create a holistic view of IT usage, produce a Bill of IT and begin to focus specifically on IT budgeting and portfolio management.
Get started now to learn more about how Apptio can help you analyze application total cost in a pragmatic and repeatable manner.
Gartner's Report Application Rationalization OverviewThis overview provides a high-level description of the Application Rationalization Key Initiative. IT leaders can use this guide to understand how to develop an application strategy that rationalizes their legacy portfolio and prepares it for fast-emerging business requirements.
Apptio's Solutions Brief on Application RationalizationRead about how Apptio TBM supports a repeatable approach to application rationalization by automating the monthly process of transforming raw financial and IT data into analysis of application total cost, usage, and more.
Gartner's Report on Application Rationalization and Getting Business EngagementGetting active leadership from the business is a difficult issue for most application leaders. There's no easy answer, but this paper outlines several strategies to encourage engagement.