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Infrastructure Slideshow:
Overcoming Application Overload

By Dennis McCafferty on 2011-03-29


Is the management of applications on your enterprise in need of rational revision? Rationalization refers to the retiring of apps that are simply no longer needed by organizations. But guess what? Far too few companies are doing this, according to a survey from Capgemini, a consulting/technology/outsourced-services company. Co-produced with HP, the Capgemini report reveals that businesses in the U.S. and Europe maintain millions of applications that are obsolete and no longer deliver full business value. Sometimes, application convergence results from a merger or acquisition. In many case, though, it's the "let’s keep it just in case" mentality that is creating a virtual landfill of apps. The majority of CIOs and other top tech execs say many of these apps are simply not serving a valuable function. In these economic times, proving the ROI of IT investments is essential. Senior execs are under the gun more than ever to increase cost efficiencies of app management. But the sheer number of apps supported -- up to 10,000 for large, global enterprises, with average data growth of 5 percent per month -- means that tech departments clearly are facing an issue of potentially critical significance. "Our research reveals that key goals for CIOs are value creation, improving efficiencies and cutting costs," says Ron Tolido, CTO at Capgemini for application services in continental Europe. "Despite the fact that data archiving and application retirement can result in significant cost savings, process efficiencies and increased agility, it still does not rank high enough on the agenda." Capgemini surveyed approximately 100 CIOs and top-level IT managers in companies of various sizes within a wide range of industries. This included 14 in-depth interviews. Thirty-seven percent of the responding companies are US based, and 63% are located in Europe (Benelux, France, Germany, Spain and the United Kingdom).

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85 percent


85 percent of respondents say their application portfolios are in need of rationalization.

60 percent


Nearly 60 percent of respondents say they currently support “more” or “far more” applications than are necessary.

4 percent


Just 4 percent of respondents say every IT system they use is business-critical.

One half


One half of respondents say up to 50 percent of their application portfolio needs to be retired.

61 percent


61 percent of respondents say they keep all data beyond its expiration date for just-in-case considerations.

56 percent


56 percent of respondents at large enterprises say that at least half of their apps are custom-built, increasing the complexity of required platforms/technologies.

13 percent


Only 13 percent of respondents at large enterprises say their application development and maintenance teams are aligned.

One half


Less than one half of respondents their maintenance teams are in sync with app development only about 50 percent of the time.

Top barriers to rationalizing/retiring redundant apps (percent respondents):


Cost of retirement services (61 percent)Missing architecture alignment (18 percent)Incomplete business cases (9 percent)

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