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Research: Virtualization and Business Realities

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Research: 2014 Application Consolidation Survey

Research: Virtualization and Business Realities

Research: 2014 Application Consolidation Survey 

The business case for application consolidation is easy to make given the licensing and support savings, and almost half of companies say they have redundant apps. Systems for email, billing and CRM, business analytics, HR, and inventory management rank high on the list of targets for consolidation. But executing an app consolidation strategy is hard because of employee resistance and lack of budget support. Few companies say that unique app functionality is a ­barrier to consolidating. 

Of the 169 business technology professionals responding to InformationWeek’s Application Consolidation Survey, 45% say they manage multiple pieces of software providing duplicative functionality. Other key data points: 

>> 56% report application consolidation initiatives in the last 12 months.

>> 89% report user concern over consolidation, ranging from uneasiness to open resistance.

>> 18% cite billing systems and 17% cite inventory management as the highest priority for elimination, but another seven system types are cited by 10% or more.

>> 45% say there is no process for choosing which apps to cut — someone just makes a decision about which stay and which go.

>> 37% say cost savings is the primary driver of app consolidation. 

>> 63% say one reason for duplicated apps is that specific business needs were not met.

In this report we:

>> Discuss the critical elements needed for app consolidation success, including executive leadership and ­understanding and overcoming employee resistance.

>> Examine what metrics and processes IT should use to evaluate which apps to cut and which to keep. 

>> Explore the data retention problems that arise when cutting apps and offer ways around those problems. 

>> Recommend a strategy for IT to conduct ongoing app inventories to assess unmet technology needs and avoid app sprawl. 

Respondent breakdown: 54% have 1,000 or more employees; 24% have more than 10,000 employees. Respondents come from a diverse mix of industries, and 41% are IT director/manager or IT executive management (C-level/VP) level. (R7511113)

Survey Name   InformationWeek Application Consolidation Survey

Survey Date   October 2013

Region   North America

Number of Respondents    169

Purpose   To determine the extent to which enterprises are consolidating applications and what the barriers are to doing consolidation

Methodology   InformationWeek surveyed business technology decision-makers at North American companies. The survey was conducted online, and respondents were ­recruited via an email invitation containing an embedded link to the survey. The email ­invitation was sent to qualified InformationWeek subscribers.

 

 

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