Lowering IT Costs & Modernizing Effectively with Software Rationalization

Is your business in the same situation as this fast-growing enterprise?

In their quest to scale and support the organization's digital growth and transformation, the business adopted over 200 different tools. But as these tools were implemented, the IT team found itself managing a complex and expensive landscape.

While the software was initially beneficial, it started draining resources over time. Simultaneously, updates and licensing fees made maintenance costs unsustainable, putting IT under pressure to not only ensure the software was functioning properly but also fit in the team's budget.

It's a scenario you're probably familiar with: Digital growth had unintentionally created a costly and complex software behemoth – and the only way to tame it was to make hard decisions about which tools added value to the business and which ones needed to go.

And so began our client's software rationalization journey with the CPT Global team.

What is Software Rationalization?

Software rationalization is the process of evaluating and streamlining your organization's software portfolio to reduce costs, complexity, and redundancy while maximizing value.

Rationalizing your business software means taking a hard look at all the tools your business uses (and sometimes doesn't use) to ensure it meets specific business criteria. That way, your organization can determine which tools should stay, and which ones should go.

The process is often complex and involves:

• Evaluating each tool's value, cost, usage, and alignment with your business goals
• Identifying redundant, outdated, or unnecessary software
• Streamlining processes by consolidating, updating, or retiring tools
• Making strategic decisions to optimize their efficiency and cost-effectiveness

But all this effort results in a big payoff. By eliminating duplicate or underutilized tools, your business can reap substantial benefits, while helping you gain a clear understanding of your business needs and goals - along with the software required to support them.

Software Rationalization Benefits: A Case Study

Let's take a look at how software rationalization helped the digital enterprise we mentioned earlier.

After a thorough review, our team identified multiple pieces of software serving the same purpose, with several that were no longer in use. By consolidating and cutting tools, the business was able to significantly reduce its software footprint and maintenance costs.

But it wasn't just about cost savings – the organization also gained better visibility and control over their software landscape, allowing them to make more strategic decisions when it came time to select and implement new software.

Additional benefits the organization achieved include:

• Reducing the burden on IT resources by simplifying and streamlining their software portfolio
• Improving user experience for employees by standardizing tools and processes
• Enabling better data management and analysis by consolidating data from multiple applications
• Enhancing security by reducing the number of applications needing to be monitored, updated, and patched regularly

By the end of the project, our team delivered exactly what the business needed: A stronger foundation for digital growth and transformation.

How Software Rationalization Works at a High Level

Imagine if your business could achieve similar results – a streamlined, cost-effective, and efficient software ecosystem. Rationalizing your portfolio can help, but where should you start?

Whether you're in charge of an extensive network of tools or you're just starting to feel the pinch of the software sprawl, here are five steps to consider as you embark on your journey.

Mainframe Software Rationalization in Practice

• Software Inventory: Start by cataloguing all the software running on your z/OS system. This may include using z/OS SMF records and other tools to identify all the programs, utilities, and system software currently installed. Having a clear and comprehensive view of your tool landscape helps set the stage for the next part of the process.
• Software Evaluation: After the inventory is complete, evaluate each tool on the basis of cost, usage, operational value, and alignment with your business's overarching goals. Make sure to identify obsolete, underutilized, out of date, or redundant software – which are all prime candidates for review.
• Strategic Planning: Drawing from your evaluation, design a strategy specific to your z/OS environment to streamline, retire, or replace software components. Your plan should aim to enhance the efficiency and cost-effectiveness of your software ecosystem, with a specific focus on your business needs and goals.
• Plan Execution: Now it's time to put our strategy into action. This step might involve retiring old software, introducing new programs, updating to the latest supported version, or migrating from one tool to another. For a smooth transition, ensure effective communication with all relevant stakeholders about the changes and their implications.
• Continuous Monitoring and Optimization: Given the dynamic nature of the mainframe environment, especially with evolving business needs and technological advancements, software rationalization should not be seen as a one-and-done affair. Regular reviews and adjustments are necessary to keep your portfolio lean, efficient, and aligned with business objectives.

The Value of a Partner in Software Rationalization

Undertaking a software rationalization project can be challenging. This is where the value of a trusted partner comes in.

Engaging with a software rationalization partner provides the expertise, knowledge, and resources to support your team throughout the process by delivering:

• Proven Skills and Past Experience: A partner brings extensive experience and a deep understanding of the process. They can guide you through each step, helping you avoid common challenges and make informed decisions.
• Efficiency and Speed: Given their experience, a partner can help expedite the process, enabling you to realize cost savings and efficiency gains sooner.
• Objective Perspective: An external partner can provide an unbiased perspective, helping you make tough but necessary decisions about your software portfolio.
• Continuous Support: A partner can offer ongoing support after the rationalization process, helping you continually optimize your landscape to adapt to changing business needs.
• Cost Savings: Partnering with an external expert can help you avoid the costs associated with hiring or allocating internal staff solely for software rationalization. This can result in significant cost savings for your business.

For the business above, the transformative power of software rationalization is clear. If you're grappling with your own software abyss, or find your operations hamstrung by outdated or underutilized applications, consider embarking on your own rationalization journey.

Remember, you're not alone in this. With the right partner at your side, your business can make its digital journey with clarity and confidence.