Outmoded applications and data explosion hamper enterprises in innovation, move to cloud computing

Updated: April 06, 2011

The first annual Application Landscape report found that millions of applications are obsolete and no longer deliver full business value. The result, says Capgemini, is a need to rationalize and retire applications, freeing up valuable resources to drive innovation and future growth, rather than maintain outdated systems.

The sheer number of applications supported - up to 10,000 for global enterprises - combined with an estimated average data growth of five percent per month means applications management is on track to quickly become an issue of real significance. Moreover, as companies move toward the transfer of applications to the cloud, the need for systematic and well-managed application retirement will accelerate.

Outmoded applications

In in-depth interviews with CIOs and IT leaders in the US and Europe, Capgemini found that:

  • Some 85 percent say their application portfolios are in need of rationalization
  • Almost 60 percent of enterprise companies say they currently support "more" or "far more" applications than are necessary to run their business
  • Only 4 percent say that every IT system they use is considered to be business critical
  • Half agree that up to 50 percent of their application portfolio needs to be retired
  • Another 61 percent say they keep all data beyond its expiration date "just in case"
  • Also, 56 percent of large companies and enterprises say that half or more of their applications are custom-built, increasing the technical complexity of required platforms and technologies
  • Only 13 percent say their application development and maintenance teams are aligned. And half (48 percent) say their teams are only in synch for 50 percent of the time or even less.

    Successful application management - achieved through a true lifecycle approach of 'build, deploy, maintain and retire' - can deliver tangible business benefits in tough economic times.

Ron Tolido, CTO at Capgemini for Application Services Continental Europe, said: "Our research reveals that key goals for CIOs are value creation, improving efficiencies and cutting costs. Despite the fact that data archiving and application retirement can result in significant cost savings, process efficiencies and increased agility, it still does not rank high enough on the agenda. This report shows that successful application management - achieved through a true lifecycle approach of 'build, deploy, maintain and retire' - can deliver tangible business benefits in tough economic times."

Featured Research
  • The New 2017 Contact Center Comparison Guide

    We’ve put together a comparison guide that covers over 40 of the top call center software options, providing details on pricing, features, support, and integrations. If you want to save time and still make a great investment, this guide is a must read. more

  • Phone Systems Comparison Guide: VoIP for Small to Midsize Businesses

    It was a painstaking process, but to help B2B companies start 2017 off on the right foot, we recently compiled a comparative list of the top 43 small to midsize business phone vendors. more

  • 16 Mistakes to Avoid When Buying a Phone System

    Purchasing a phone system for your business is a major investment. With the average business changing phone systems only once every seven years, it’s important to make the right decision. more

  • 2017 Video Conferencing Trends

    New advancements are also making video more beneficial to a greater range of business areas including marketing, HR, and internal operations. Many solutions are economical, easy to use, and very effective at making communication more personal. more

  • [Infographic] Top 11 VoIP Vendors

    A good VoIP provider will offer additional benefits as well, but many first-time buyers find assessing each option to be difficult. Nevertheless, this is an important step in the buying process because a substandard provider can easily waste both your time and money. more