Orphaned apps are "draining" IT budgets: Gartner

 

Lifecycle costs not considered.

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Australian organisations are "bloated" with orphaned applications that are draining IT budgets, according to Andy Kyte, vice president of Gartner research.

At the Gartner Symposium in Sydney yesterday Kyte said that dealing with orphaned applications should be on every IT manager's agenda next year.

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Andy Kyte, vice president and a member of the Gartner application strategy and governance team

Kyte said IT managers had focused on modernising technology infrastructure, reducing energy consumption in the data centre and automating routine operational activities this year.

But those activities were "politically safe" tasks, he said.

IT managers needed to refocus on bigger issues next year, including "bloated" applications portfolios which Kyte described as "the elephant in the room".

"When it comes to applications the reality is that business and technology leaders are very happy to engage in the process of acquiring new applications," Kyte said.

But the constant additions had the potential to weigh IT managers and the organisation down in maintenance and complexity issues.

He likened it to a parenthood analogy in which IT managers weren't interested in "responsible parenting" of their applications.

"We're really just interested in making babies," Kyte said.

The result was "hundreds and thousands" of orphaned applications "that wander the corridors of your enterprise going up to any adult they see and saying 'are you my daddy, are you my mummy, will you look after me'."

Can you really afford to buy?

One reason application portfolios were bloated was that vendors had learned they could sell them directly to business users, bypassing the IT department on purchase decisions.

But IT often wore the ongoing costs of running that piece of software over its lifecycle, which could be as long as 15 years.

Kyte produced Gartner research figures that showed the "go live" cost of a piece of software was just eight percent of the total cost of the software over its lifetime.

The research also showed that application portfolios had an annual compound growth rate of between four and seven percent.

"So when the business users say they can afford the application they're buying they're talking about the down payment, they're talking about that eight percent," Kyte said.

"Who's responsible for funding and making sure you get the best value from the other 92 percent? The answer is nearly always that it's somebody else."

Kyte urged attendees to revise the template they used as a business case for new investment.

"[Ensure it] shows the total lifetime cost of ownership, not just the cost of the project," he said.

"[Clients] sort of look at me strangely and say: 'Andy, if we told them what it was going to cost they wouldn't do it', he said. "And I say: 'duh'."

Budget sink

Kyte urged IT managers to decommission and retire applications that were "no longer of value" so that resources could be redeployed.

He also encouraged managers to make someone in the organisation accountable for the value of applications.


"So now you know about the problem, here is a video of Andy talking about the solution: http://www.itnews.com.au/News/16... If that link is broken, try this: http://bit.ly/6q2REY"
By mkotadia
 
 
 
Comments: 4
dimitri_b
Nov 18, 2009 12:36 PM
It sounds good for an ideal world, but can we expect an IT person (usually without good knowledge of the business that the purchased software will serve) to form a judgement on the value (vs. cost) of the software? IT will evaluate software on the "existing IT architecture fit" criteria, instead of "business fit". It is likely that either nothing will be purchased, or the purchase will fit the existing architecture well, but will be of little use to the business.
May be there should be a third party, proficient in both business aspects and IT, and unbiased, to make the recommendation?
danere
Nov 18, 2009 2:09 PM
I've found decommissioning legacy systems to be one of the most challenging things to accomplish in my IT career. It seems the benefits of doing so -- reduced complexity and operating/maintenance costs -- tend to fall on deaf ears in an environment where innovation is king.
As Gartner suggests, quantifying upfront the cost of the whole app lifecycle could be the way to go, but the real challenge is how to get rid of apps we're currently stuck with that are firmly embedded within the organisation?
anonymous
Nov 18, 2009 5:34 PM
Legacy systems are like the weather - everyone complains about them but nobody does much about it. Well, not quite, but it can be bloody difficult for techs to convince business operators that it's well worth the learning curve for them to bin their familiar old apps.

Like the old factory joke - the production manager wants to build the same widget for ten years, the sales manager wants them in seven designs and 23 funky colours and the accountant couldn't give a shit provided they cost less to build.

And IT? They're beating their heads against the wall because none of the above want to know.
mkotadia
Nov 24, 2009 3:54 PM
So now you know about the problem, here is a video of Andy talking about the solution: http://www.itnews.com.au/News/161237,how-to-kill-the-orphans-and-move-on-gartner.aspx

If that link is broken, try this: http://bit.ly/6q2REY
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