Application portfolio management (APM) is a framework for managing enterprise IT software applications and software-based services. APM provides managers with an inventory of an organization's software applications and metrics to illustrate the business benefits of each application.
APM uses a scoring algorithm to generate reports about the value of each application and the overall health of the IT infrastructure. By gathering metrics such as an application's age, how often it's used, its maintenance costs and its interrelationships with other applications, a manager can use accurate, informative data to decide whether a particular application should be kept, updated, retired or replaced. Thus, the goal of application portfolio management is to monitor and track portfolio elements, keep what works well and replace what is underperforming or too expensive.
The benefits of application portfolio management are as follows:
All in all, APM provides important insights into what applications are in use, how well they're working, frequency of use, how much they cost and the interdependencies with other applications. This data is essential to manage an application portfolio and continuously improve its content and capabilities.
Application portfolio management frameworks provide the infrastructure to support ongoing APM. This includes undertaking a complete inventory of applications and services in use. Each value needs to be measured and assessed according to metrics that include cost, frequency of use, perceived value to users and stakeholders, capabilities and unmet needs or desired -- but missing -- features and functions. Only applications that score well on all metrics and are perceived as best in class should remain; others should be altered, updated or replaced to improve ROI, productivity and perceived value. This involves removing or retiring applications that no longer meet user needs.
In other words, an APM framework provides the basis for inventory and evaluation of the current portfolio, along with mechanisms for improving or replacing its constituent components to meet current and planned business needs better.
Organizations without established APM can't jump right into a full scale deployment; they have to follow specific steps and a process.
While several APM platforms are available, some of the most well-known include Datadog, Loupe, AppDynamics, Stagemonitor and Pinpoint. Regardless of platform, an APM tool should include the following key elements:
21 Apr 2022