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4 IT Portfolio Management
It is essential that you have good insight into the contribution that your applications make to your business. This particularly applies if budget reductions result in the need to make choices and establish priorities. A good insight into the extent to which systems and changes contribute to keeping a business operational, or to growing or transforming a business should lead to lower costs and qualitatively better application portfolio.
Often however, Application Portfolio Management suffers from a lack of insight into the application installations and where the maintenance costs lie. This is particularly relevant if we consider that about 80% of IT expenditure goes to keeping systems operational. It is therefore imperative to gain insight into the size and cost of maintaining applications.