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Application Portfolio Management (APM) has been getting the attention of an increasing number of enterprises over the past few years. It's no wonder, considering that enterprises typically spend more than half – and often over 70% – of application budgets on maintenance. It is critical for the enterprise to manage its application portfolio. Proper application management can result in reduced maintenance costs and increased value to the business.

What It Is and How It Works

APM in and of itself is not a technology; rather, it is a process and management function that is typically supported by technology. For instance, inventorying enterprise applications is largely a manual process, but recording and storing the inventory typically relies on a database or spreadsheet. Similarly, assessing business value, maintenance costs, functionality overlap, performance, and application age and architecture all require manual data collection which is then stored in an APM tool.

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  • Missing comment
    Dave Herrmann | 03-03-2010

    Are there any free tools you'd recommend to help with this?

    • 9eb6a2810126f534ebf65557616f34d1 comment
      Info-Tech Research Group | 10-21-2011
      “Application Inventory Tool” can be used for all apps initially then broken into domains, or used for individual domains from the start.
      “Business Function and App Assessment” tool to map business functions to apps and to assess the value and development and maintenance requirements for apps in individual domains.
      “Application Status Rationalization Tool” to help determine the status and viability of individual apps.
      “Cost/Benefit Analysis Tool” to help prioritize the financial and human resources dedicated to apps. This tool is most useful when the enterprise is challenged to reduce app development and maintenance costs and needs to make difficult choices between apps of similar value to the business.

  • Missing comment
    Christopher Blexrud | 07-20-2010

    What are the key players in this area?


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