Application Landscape Report 2011 Edition

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Building the new city in the old city.

Applications have fueled business growth and supported its key processes in the past. However, over time, many companies’ IT landscapes have become cluttered with obsolete IT systems and applications that no longer deliver full value to the business. In our survey of IT executives, 85% of respondents state that their application portfolios are in need of rationalization.

As budgets become more constricted, the focus of application strategy shifts from innovation to cost cutting, and application rationalization is not an easy task. Cost is a key barrier to all modernization initiatives, and it is often difficult to demonstrate fast Return on Investment (ROI) to get the business buy-in.

Despite these challenges, the CIO’s outlook on the application lifecycle is beginning to change. Instead of simply building custom IT solutions to solve today’s specific problems, IT management is committed to bringing in more standardized, scalable and maintainable offerings. A growing number of IT executives are treating application retirement as an essential step in the lifecycle, and they are adopting new practices for reviewing and modernizing their application landscapes.