As software plays an increasingly critical role in the business performance of corporations, IT faces considerable pressure to support new business initiatives while cutting costs. Over the last 30 years, billions of dollars have been invested in software applications, but typically these investments are poorly leveraged. Too often, a complex and poorly understood application portfolio consumes a large percentage of IT funds, leaving corporate business and IT leaders challenged to find the funds needed for business innovation.

As a partial remedy, some organizations are turning to application portfolio management (APM) to stay competitive, to trim and modernize their portfolio, and to better align application investments with business needs. The first half of this paper will explain the business case for APM, and provide a number of example scenarios illustrating how implementing APM can help organizations optimize their IT investments. The second half explores how IBM Rational® products can be used in various APM implementations, and offers key justifications for adopting APM to increase the likelihood of success.