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Understanding When Retirement Is the Best Option for Portfolio Management

Mon., 27. October 2025 | 5 min read

Businesses on average use 130 SaaS applications, which makes it difficult to effectively manage an application portfolio. This is called application sprawl and it leads to underutilized and redundant applications as well as high subscription costs. Application retirement, an application rationalization strategy, solves these issues. Application rationalization involves reviewing a business’ application portfolio to determine which applications should be retired, retained, rehosted, re-platformed, refactored, or re-architected. Application rationalization leads to a healthier, more manageable application portfolio and it is the first step towards application modernization. Application retirement is suitable for underutilized and redundant applications. CIOs and IT leaders should undertake application retirement to optimize their application portfolio leading to cost savings, increased efficiency, and improved security.

Understanding Application Rationalization

Application rationalization is useful for all types of application environments: hybrid, cloud, and on-premise. This process allows businesses to make key decisions on the next …

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