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What is Application Portfolio Management


Wikipedia definition

IT Application Portfolio Management (APM) is a practice that has emerged in mid to large size Information Technology (IT) organizations since the mid-1990s. Application Portfolio Management attempts to use the lessons of financial portfolio management to justify and measure the financial benefits of each application in comparison to the costs of the application's maintenance and operations.


Extracted from Tech Target post

Application portfolio management (APM) is a framework for managing enterprise IT software applications and software-based services. APM provides managers with an inventory of the company's software applications and metrics to illustrate the business benefits of each application.


"[APM] is really about implementing a repeatable process to assess what we have, and, if an application is not performing or does not meet our architectural requirements, eliminating it and replacing it with a better performing application. We’re doing it to try and reduce the money we spend on maintaining existing applications (that don’t perform well) and freeing up that money to invest in new and better performing applications."


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