Applications Services Blog
Get the latest thought leadership and information about the role of Applications Services in an increasingly interconnected world at the HP Blog Hub.

We know how much your applications cost to run. Do you? (Learn more at HP Discover in Frankfurt)

By Daniel Amor, EMEA Lead for Application Modernisation, Hewlett Packard Company EMEA


Most companies face application portfolio related challenges. They no longer match the business need and cost too much. Many organisations have been unable to transform their portfolio as the complexity has become too high.


There are many challenges in a company’s application portfolio that need to be taken care of in order to conduct a successful transformation. Unfortunately most companies only look at the technological aspects of the transformation. Best-practice transformations consider the following domains when transforming the application portfolio and considering the Total Cost of Ownership (TCO):


  • Processes – Analysis of the business processes and impact on the business
  • People – Understanding the organisational aspects because they are typically implemented in the application landscape.
  • Software – Analysis of the license fees for the OS, programming languages, DB, middleware application packages and development/support tools
  • Infrastructure – Analysis and dependency mapping of servers, storage, network and facilities

Today we have application portfolios reflecting the impact of years of budget constraints - complex inefficient environments with redundancies, incompatibilities, and aging systems.


This results in a business impact that includes:  poor business alignment, capacity constraints, long cycle times/poor throughput, long development cycles/longer time to market and the general inability to meet new business challenges brought on by tough economic times.


But just understanding the cost of an application is not enough! Cost must be put in context with the value delivered to the business today and in the future. Transforming an IT environment needs to start with the business and work through the applications to the infrastructure upon which it runs. 


It’s a journey that starts with understanding where you are today.  You can’t develop a roadmap if you don’t know your starting point. A key component to getting started is understanding is the details of your application portfolio and the value associated with each of its components.


Once the application costs (along with other data) are understood, they can be analysed to solve the application portfolio challenges. The information can be sliced and diced and put in tables and graphs but at the end of the day, it is the foundation for the transformation and modernization of the application portfolio.


After the cost of the applications portfolio is understood (together with functional and technical considerations), an overall modernization program needs to be developed that creates a roadmap to address all critical applications and infrastructures.


The roadmap must be a flexible plan that enables execution of individual projects each with their own ROI and is aligned to the overall modernization program. The business case then needs to be developed to prioritize investments.


The Modernization program needs to be managed with a governance structure to mitigate risk during execution and existing application assets should be leveraged by extracting business rules and application characteristics.


So using a mix of best-in-class tools and a well-defined methodology will enable your company to measure the cost and value of its applications and enable it to create a long-term roadmap to improve the application portfolio over time with a solidROI.


Please join me and my HP colleague Bruce Randall as we discuss this topic in greater detail at our business breakout session at HP Discover in Frankfurt on Thursday, December 6th at 10:30am.  To learn more about HP Discover, please click here:  HP Discover - Frankfurt.   We look forward to seeing you there! 


Update 15/Dec/2012. The video of this session is now available online:


About the author

Daniel Amor, Application Modernisation Lead, Hewlett Packard Company (EMEA)

danielamor2.jpgDaniel’s expertise includes Applications Modernisation (AMod), Cloud, Portals, Web Apps and SOA domain.  He has designed and led the implementation of large-scale, complex applications-related projects with clients throughout Europe. Daniel has more than 20 years of experience in the IT industry and is the author of six books and numerous articles in European and US-based publications on IT change.

Showing results for 
Search instead for 
Do you mean 
About the Author
Daniel Amor (EMEA, AMOD, Cloud, Portals, Web Apps and SOA domain expert): Daniel has designed, won, led and delivered large-scale, complex a...

Follow Us
The opinions expressed above are the personal opinions of the authors, not of HP. By using this site, you accept the Terms of Use and Rules of Participation.