Reducing the cost of applications

Once they have optimised their IT infrastructure, the attention of IT management is now increasingly being drawn towards the price/performance ratio of the applications. Benchmarks offer a cast-iron way of demonstrating that efficiently-run application environments are something well worth achieving.

More and more businesses are recognising that they need to win back control of their application landscapes if costs are to be reduced and performance improved. Application environments have grown consistently over the last few years, while transparency has kept declining and the cost of management has risen in terms of both people and money. Maintenance and development make up a hefty proportion of the application budget.

The upkeep and modifications to meet new requirements are a particular drain on money. This is exacerbated by the fact that the project cost for applications rises with their age. If the budget for maintenance and development has not kept pace or, even worse, has shrunk the managers in charge will quickly find themselves in a tight corner, with freedom of manoeuvre increasingly restricted.

Objective comparisons

An objective comparison of the cost and performance of their applications give customers precise indications of where there is a need for optimisation and where measures to address issues will have a direct pay-off. This is because the benchmarking process records not only the costs and productivity, but also the various cost drivers such as complexity, quality and volume. Anyone who can collect the critical key ratios will have a better view not only of the destination, but also of how to get there.

Benefits for clients

Analysis of the TCO of a company’s application environment through a Maturity benchmark offers significant benefits for clients. For example, the direct bank ING-Direct underwent a benchmark project to compare the application portfolio of its nine international companies with themselves and the external market. “The benchmark provided us with valuable knowledge and a few major surprises”, said Kees van Rossem, Head of IT at the German ING-DiBa.

Maturity consultants have come across applications in the industry that cost between 500 and 60,000 euros a month. Given this massive bandwidth, it is vital to be able to rate the performance of each application precisely using a fair model. This is done in benchmark projects by means of a defined number of meaningful key ratios that are supplied bottom-up from base data produced in a detailed analysis. For the purposes of internal and external comparisons, various Top Level Indicators (TLIs) and Key Performance Indicators (KPIs) can be applied.

Additional information

PDF: Reduce the application TCO

PDF: Optimise maintenance and development

Project report: Application benchmark at ING Direct

 

For further information, please contact

Jeremy Smith
Maturity UK Ltd.
Fon: +44 (0) 20 / 78 68 19 01
Fax: +44 (0) 20 / 78 68 18 00
E-mail:

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