Gartner Research

Eight Steps to Revitalize Your IT Cost Optimization Initiative With Application Rationalization

Published: 20 July 2015

ID: G00277893

Analyst(s): Stefan Van Der Zijden, John P. Roberts, Matthew Hotle

Summary

IT cost optimization initiatives can decelerate after opportunities to save money in IT infrastructure, software platforms and IT services have been exhausted. IT leaders often turn to application rationalization for potential new cost savings, but this requires a radical change in approach.

Table Of Contents
  • Key Challenges

Introduction

  • IT Cost Optimization
    • Application Support Costs

Analysis

  • Obey the Key Rule for Success in Application Rationalization
  • Reorganize, Refocus and Involve All Application Stakeholders
  • The Eight Steps to Application Rationalization
    • Step 1 — Select the Target Domains
    • Step 2 — Create an Application Governance Team for Each Selected Domain
    • Step 3 — Assess Application Portfolios With Fitness and Value Reviews
    • Step 4 — Get Detailed Data on Application Running Costs
    • Step 5 — Identify Opportunities for Cost Savings
    • Step 6 — Set Targets, Measure Results and Celebrate Success
    • Step 7 — Initiate Application Migration or Consolidation Projects
    • Step 8 — Decommission Applications
  • Be Prepared for the Long Haul and Ready to Invest
  • Case Study

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