Browse Definitions :
Definition

application portfolio management (APM)

Application portfolio management (APM) is a framework for managing enterprise IT software applications and software-based services. APM provides managers with an inventory of the company's software applications and metrics to illustrate the business benefits of each application.

An APM system uses a scoring algorithm for generating reports about the value of each application and the health of the IT infrastructure as a whole. By gathering metrics like an application's age, how often it's used, the cost it takes to maintain it and its interrelationships with other applications, a manager can use more than just an educated guess to decide whether or not a particular application should be kept, updated, retired or replaced. 

According to NASA's Office of the Chief Information Officer :

"[APM] is really about implementing a repeatable process to assess what we have, and, if an application is not performing or does not meet our architectural requirements, eliminating it and replacing it with a better performing application. We’re doing it to try and reduce the money we spend on maintaining existing applications (that don’t perform well) and freeing up that money to invest in new and better performing applications."

 

See also: balanced scorecard methodology, IT MOOSE management

 

Learn more:

Wikipedia says the two main categories of Application Portfolio Management solutions are generally referred to as 'Top Down' and 'Bottom Up' approaches.

Mike Walker writes about the Integration of Enterprise Architecture and Application Portfolio Management for the Microsoft Developers Network website.

The NASA Office of the Chief Information Officer website provides more information about the importance of application portfolio management.

"[APM] is really about implementing a repeatable process to assess what we have, and, if an application is not performing or does not meet our architectural requirements, eliminating it and replacing it with a better performing application. We’re doing it to try and reduce the money we spend on maintaining existing applications (that don’t perform well) and freeing up that money to invest in new and better performing applications."

 

This was last updated in April 2011

Continue Reading About application portfolio management (APM)

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

Like the way Nasa describes what APM is for them. I don't necissarly think that the saving you find when rationalizing and optimizing your aplication portfolio - shouldgo to investin in new applications. It should be used to support business value wherever it coimes from (might be new invesmens in applications).
Cancel

SearchCompliance

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

  • cloud disaster recovery (cloud DR)

    Cloud disaster recovery (cloud DR) is a combination of strategies and services intended to back up data, applications and other ...

SearchStorage

  • RAM (Random Access Memory)

    RAM (Random Access Memory) is the hardware in a computing device where the operating system (OS), application programs and data ...

  • business impact analysis (BIA)

    Business impact analysis (BIA) is a systematic process to determine and evaluate the potential effects of an interruption to ...

  • M.2 SSD

    An M.2 SSD is a solid-state drive that is used in internally mounted storage expansion cards of a small form factor.

Close