How app rationalization streamlines your software ecosystem for efficiency and security

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Organizations waste $18 million annually on unused software. Only 49% of provisioned licenses see active use. On average, businesses use 371 Software as a Service (SaaS) apps.

If these figures reveal anything, it’s that application sprawl is a widespread problem. Fortunately, app rationalization addresses this issue head-on.

This IT asset management (ITAM) strategy streamlines organizations’ software apps and versions by consolidating software contracts, leveraging economies of scale, and achieving better terms and cost efficiencies from software publishers.

But app rationalization is about more than trimming costs. It’s a comprehensive approach to managing your software ecosystem that enhances security, improves efficiency, and drives innovation.

The hidden price of software sprawl

According to Zylo, the average company juggles 15 different online training apps, 11 project management tools, and 10 team collaboration platforms. But app redundancy pales in comparison to security concerns.

Zylo found nearly two-thirds (65%) of employee-expensed apps have a “Poor” or “Low” risk score. Over one-third of a company’s applications are shadow IT, with 67% of IT leaders citing rogue software purchases among their top SaaS challenges.

The cost of inaction is steep. The Flexera 2024 State of ITAM Report reveals that even advanced ITAM practitioners estimate 30% wasted spend on desktop software, 22% on data center software, 21% on Infrastructure as a Service/Platform as a Service (IaaS/PaaS), and 20% on SaaS. This waste represents lost money and lost opportunities for innovation and growth.

The multifaceted benefits of app rationalization

App rationalization addresses these challenges and delivers far-reaching benefits.

Let’s start with enhanced security. By eliminating outdated or unsupported applications, organizations can significantly reduce their attack surface.

Then, there’s cost optimization. Consolidating software licenses and eliminating redundant applications leads to substantial savings on direct software expenses and associated maintenance and support costs.

Another key advantage is improved compliance. With fewer applications to manage, organizations can more easily ensure adherence to licensing terms and regulatory requirements. This reduces the risk of costly audits and penalties, which can be substantial.

Increased operational efficiency is a less obvious but equally important benefit. Streamlining the application portfolio reduces complexity, making it easier for IT teams to manage and support the software ecosystem. A rationalized application environment also provides users with a more consistent and simplified experience. This can boost productivity and satisfaction, as employees spend less time navigating between different tools or learning new systems.

Implementation doesn’t come without roadblocks

Despite the clear benefits, implementing app rationalization can be challenging.

Many organizations lack a complete view of their software assets. Shadow IT and decentralized purchasing can obscure the true extent of application usage. Applications that are deeply integrated into business processes can be difficult to replace or remove without disrupting operations.

Additionally, resource constraints can impede progress. App rationalization requires time, effort, and expertise that may strain already-stretched IT teams. While the goal is to streamline the application portfolio, organizations must maintain the flexibility to meet diverse business needs.

Best practices for effective app rationalization

Successful app rationalization requires a structured approach that includes:

• Comprehensive software audit: Uncover every app, every license, every shadow IT tool lurking in the corners.
• Application assessment: Evaluate each application based on business value, usage patterns, total cost of ownership (TCO), and security risks.
• Prioritization: Go for the low-hanging fruit first — those obvious redundancies and unused licenses. Build momentum with quick wins, then tackle the bigger challenges.
• Phased implementation: Start with a pilot project to refine processes and demonstrate value before scaling up to the entire organization.
• Change management: Develop a robust change management strategy, including employee training, communication, and support, to help users through the transition.
• Continuous monitoring and optimization: Set up policies and procedures for evaluating new software requests, managing licenses, and regularly reviewing the application portfolio. Track key metrics such as cost savings, security improvements, user satisfaction, IT efficiency, and compliance. These indicators justify rationalization efforts and highlight areas for further optimization.

The path to a streamlined software ecosystem

App rationalization isn’t a one-and-done deal. It’s like a garden that requires ongoing attention and care.

By continuously pruning unnecessary applications, nurturing high-value tools, and strategically planting new solutions, you can cultivate a software environment that is efficient, secure, and aligned with business objectives.

But you don’t have to do it alone. Whether you’re just starting your app rationalization journey or looking to optimize an existing program, SHI can help.

SHI’s software asset management (SAM) managed services oversee more than 1,000 titles to ensure compliance and maximize IT investments. Our experts refine your software portfolio and offer on-demand advice to help you achieve tangible business outcomes.

Our SaaS cost optimization services will work with you to quickly take control of your SaaS environment, save money, simplify technology governance, and reduce security risks. By combining SaaS discovery technology with expert licensing knowledge, SHI can help you uncover the true scale of SaaS usage and costs across your organization.

SHI’s approach to app rationalization goes beyond software. Our ITAM services provide a comprehensive view of all IT assets, helping you optimize performance, reduce expenses, and ensure compliance.

In short, SHI has the expertise and experience to help you achieve a more safe and economical IT infrastructure.

Ready to optimize your software portfolio? Contact our experts to start your app rationalization journey today.