Minding Your As & Ps
How much faith do you put in the opinions of Gartner and Forrester? For some time now they’ve been strongly advocating the radical changes of portfolio management by touting that IT-based organizations seeking to deploy effective Application Portfolio Management can expect to see incredible results and tremendous IT maintenance savings, even as high as 20 to 30 percent.
APM is different from Project Portfolio Management techniques, which focus on the control of surrounding project investment decisions so as to make certain that funding and costs are in step with both business and technological strategies--and aligning of project funding with business and IT plans and concerns. Instead, APM looks at how to manage a set of software applications as part of a portfolio, treating the products as investments of time, labor, maintenance, etc. and determining their relative value within an enterprise.
Applications then become a form of capital, since they in turn contribute to an organization’s prosperity (here are variations on the “true” meaning of APM, but the basis of it remains fundamentally the same). While these applications are assets, they also have an associated liability (i.e., cost). They may be the backbone of an operation, but the investment necessary to maintain this infrastructure commonly consumes about 70 percent of an
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