When managing software assets, portfolio rationalization is the act of reviewing what applications you own to improve cost efficiency. The result is a lower total cost of ownership and a software ecosystem that’s easier to manage.
Software and license agreements change frequently during updates and contract renewals. Due to this complexity, portfolio rationalization helps organizations stay up to date on what they’re paying for and what they’re using.
During the process, aging technology and redundancies are eliminated, and lower-cost alternatives are identified. It also helps support procurement and renewals planning as organizations review existing purchasing structures, products, agreements and transactions.