REDUCING COSTS

Cut IT Costs and Complexity

You can’t control what you don’t know.
See clearly, simplify purposefully, and spend wisely. 

simon-hughes EA strategic advisor at Ardoq

Where To Start Reducing Costs

Consolidate and Rationalize Applications

  • Build a single, living view of applications, owners and costs to spot redundancies.
  • Use process mapping to link applications to the business capabilities they support, enriching understanding of their actual value to the business.
  • Target rationalization opportunities with the highest cost-saving impact first.

Reduce IT Complexity to Drive Change

  • EAs should partner with the CIO and decision-makers to secure a mandate for smarter IT cost control.
  • Use IT cost optimization as the foundation for proving EA’s strategic value to the business.
  • Identify where money can be reallocated from run cost to strategic change,

Govern and Drive Responsible AI Spend

  • Map where AI initiatives are deployed, who owns them, and their compliance status.
  • Track cost, ROI and impact of AI pilots to avoid wasted investment.
  • Use EA dashboards to give leadership a clear view of innovation spend vs. benefit.

Success Stories

Proven Savings,
Real Outcomes.

Read About Real Success
We went from 260 applications to identifying 30 we could rationalize in the first year with Ardoq, saving over $800,000 annually - Heidi Mattison - CTO - Cabinetworks Group
We've seen clients go from having zero architecture to standing up a functioning EA capability in under six months. It's all about starting lean and showing impact early. - Ariel Morgan - Technology Strategist - Slalom Consulting
In under two years, we were able to get to 5 million in cost savings, and there's more to come. - Josef Vargas - VP at Serta Simmons
We've identified $600,000 in savings potential by rationalizing applications. - Fred Hennige - Director - Jack in the Box

Resources for Reducing Costs

On-demand webinars, solutions, downloadable guides, and more.

EBOOK

Five Steps to Optimizing Your IT Estate and Accelerating Modernization

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ON-DEMAND WEBINAR

Find Budget for AI Initiatives with Application Portfolio Management

20 Jan 2025

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Common Questions for Reducing IT Costs and Complexity

Enterprise Architecture (EA) provides a clear, data-driven map of the entire IT landscape. This visibility is key. It helps pinpoint exactly where money is being spent on technology, identifying redundant applications, underused software licenses, and outdated systems.

By understanding these connections, organizations can make informed decisions to eliminate waste, consolidate resources, and optimize spending—turning EA into a direct contributor to the bottom line.

While Enterprise Architecture delivers long-term strategic value, it can also provide quick wins. With a platform like Ardoq, it’s possible to rapidly identify overlapping software or applications that aren't delivering business value.

Application Portfolio Management or Application Rationalization often reveals immediate opportunities to decommission systems and reduce license fees, delivering a return on investment in months, not years. Read our customer success stories to see how modern brands are saving millions with the help of the Ardoq platform. 

The key is to connect EA to business outcomes. Instead of focusing on technical diagrams, present the enterprise architecture as a source of business intelligence. Use it to answer critical questions like:

  • Which applications support our most critical business capabilities?

  • What is the total cost of ownership for our key services?

  • Where are the redundancies in our software portfolio?

By framing the insights in terms of cost, risk, and efficiency, the value of Enterprise Architecture becomes clear to business leaders. It’s not about drawing diagrams; it’s about making smarter, data-driven decisions.

 

IT cost reduction is a short-term tactic, often focused on immediate budget cuts like slashing spending on a high-cost system. While sometimes necessary, this can accidentally harm business capabilities.

IT cost optimization, on the other hand, is a continuous strategy. It’s about re-evaluating spending to ensure every dollar is aligned with long-term business goals. It focuses on increasing efficiency and eliminating waste to free up funds for innovation and growth, ensuring the organization runs as effectively as possible.

Technical debt, or the implied cost of rework caused by choosing an easy solution now instead of using a better approach that would take longer, drains resources. Outdated systems are often expensive to maintain, difficult to secure, and hold back innovation. A clear view of the enterprise architecture helps to:

  • Identify and prioritize the most critical technical debt

  • Create a roadmap for modernizing or retiring legacy systems

  • Free up the budget and resources spent on maintaining outdated technology

Tackling technical debt isn't just a technical exercise; it's a direct investment in future efficiency and cost savings.

Learn more about Ardoq's solution for Technical Debt Management.

For most organizations, Application Rationalization is the best starting point. It’s the process of evaluating the entire application portfolio to decide which applications to keep, replace, retire, or consolidate. This initiative is highly effective because most companies have significant overlap in their software. It’s a practical, high-impact way to achieve significant savings quickly while simplifying the IT landscape for the long term. 

Ardoq offers an out-of-the-box best practice solution for Application Rationalization to speed up the process and time to savings. 

Keeping data current is a common challenge, but it doesn't have to be a manual effort. Modern EA platforms like Ardoq solve this with automation and crowdsourcing. By integrating with existing IT and business systems, data can be pulled in and updated automatically.

In addition, Ardoq's collaboration and data collection like Surveys features allow application owners across the organization to contribute and verify information. This ensures that the data is not only current but also accurate, providing a reliable foundation for decision-making.