What does application portfolio assessment (APA) primarily evaluate?

Application portfolio assessment (APA) primarily evaluates the performance, costs, and strategic alignment of applications within an organization's technology landscape. This involves a comprehensive analysis of how well each application supports the organization's overall business goals, its efficiency in delivering services, and the costs associated with its maintenance and operation.

By assessing performance, organizations can identify applications that may be underperforming or no longer meet the needs of users. Evaluating costs helps in understanding the financial implications of maintaining certain applications, which can inform decisions regarding whether to invest in upgrades, retire outdated solutions, or consolidate overlapping functionalities. Lastly, strategic alignment is crucial; it ensures that the applications in the portfolio are not only relevant to current business objectives but also adaptable to future needs.

In summary, the focus of APA on these three areas—performance, costs, and strategic alignment—enables businesses to make informed decisions regarding their application investments, leading to optimized resource use and improved alignment with business strategy.