While Gartner found out that it is possible to save up to 30% on software licensing costs alone, by optimizing them.Įnterprise Architecture can provide important input on user groups and user numbers for IT use across the organization.
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Focus on divesting those while also keeping an eye on their business criticality to make sure you do not switch off applications critical to the business without a successor in place.Īccording to a case study by McKinsey, in an assessment of their application portfolio, one retail bank was able to find more than 50 unused applications to decommission, 150 redundant applications to consolidate, 800 point-to-point interfaces to put on an integration platform, and 400 applications to connect with a data integration platform.Īpplication rationalization can be the basis for other cost savings activities, such as software license optimization, application retirement, or server consolidation (see figure 2) with various levels of complexity and duration.įigure 2: IT Saving potentials from Application Rationalization (Deloitte)Ī global study of the Everest Research Institute with a focus on a company’s external IT services found out that fewer suppliers bring down the total cost of ownership (TCO) of applications annually between 22 and 28 %. It may make sense to agree on global standards across your locations and phase out non-standard applications.īy rating the technical and functional fit of your applications you will be able to identify applications that are not up to the job and do not meet technical requirements. You will be able to identify support gaps and redundancies in your application landscape. Use your Application Matrix with Business Capabilities and User Groups to look at your applications and configure it to view the functional fit.
This will not only save you license costs but also decrease costs for support and maintenance.Īnalyze your applications by Business Capability and User Groups. It is possible to reduce costs by 15% by eliminating redundant applications without affecting quality and business value. Phase-out obsolete applications and consolidate applications. We are focusing on a few quick-win activities here that will help you to realize savings as fast as possible: 1. This is no surprise because EA can help to uncover previously untapped sources of savings, some of which we have listed below. Application Modernization & Cloud MigrationĪccording to Gartner, companies with a strong EA foundation have 25% lower IT costs.LeanIX Continuous Transformation Platform®.
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