Organizations often accumulate a patchwork of business applications to optimize operations and reduce costs. Although each tool may serve its purpose, over time this results in an overcomplicated tech stack with overlapping features, siloed data and rising costs.
That’s where business application consolidation comes in.
By streamlining your software ecosystem, you can improve efficiency, reduce IT costs and enable better decision-making across the company.
Read: Are Your Business Apps Costing You More Than They’re Worth?
What Is Business Application Consolidation?
Business application consolidation is the process of evaluating, streamlining and reducing the number of software applications across an organization. The goal is to eliminate redundant tools, integrate systems and standardize on platforms that support multiple business functions.
Instead of juggling dozens of applications for communication, project management, data storage, reporting and more, companies consolidate into a few robust, unified platforms that can do it all, efficiently and affordably. It’s not only about tidying up your tech stack; it’s a powerful lever for significant IT cost reduction.
The Hidden Costs of Application Sprawl
You may not realize how much your sprawling tech stack is costing. Here’s where those hidden expenses often lurk:
- Licensing and subscription fees: Paying for multiple tools, especially those with overlapping features, adds up quickly.
- Training and onboarding: Each new application and system requires time and resources to train staff.
- IT support and maintenance: More tools mean more time spent troubleshooting, updating and maintaining systems.
- Security risks: More applications create a broader attack surface and more potential vulnerabilities.
- Data silos: Disconnected systems make it difficult to access and share information, leading to inefficiencies and poor decision-making.
- Complex infrastructure: More applications often mean more servers, databases, storage and network resources to run them.
Benefits of Consolidating Business Applications
Consolidation isn’t only about money – it’s about creating a more agile and effective business environment.
- Cost savings: By eliminating redundant applications, you can reduce subscription, maintenance and support costs, leading to immediate savings.
- Improved productivity: Teams waste less time switching between tools and can collaborate more easily within unified systems.
- Better security: Fewer applications mean fewer entry points for cyber threats, simplifying security management and making it easier to enforce security policies.
- Streamlined IT management: Your IT team can focus on optimizing and supporting a smaller set of platforms.
- Data insights: Consolidated systems allow for better data integration and more powerful analytics, leading to better reporting and insights.
- Better user experience: Consistent interfaces and reduced context-switching improve employee satisfaction.
How to Consolidate Your Business Applications
Consolidation isn’t an overnight fix but a strategic project that takes time and work:
- Audit your current technology stack: Start by listing all applications currently in use. Understand what they do, what departments use them and their costs. This is also a good time to identify duplicates, underused tools and overlapping features so you can pinpoint areas where consolidation makes sense.
- Choose a platform: Select core platforms that will replace single-function tools and form your consolidated environment. Consider scalability, integration capabilities and total cost of ownership. Choose platforms that work well together to reduce manual workarounds.
- Plan the transition: Develop a phased migration plan, including training and data migration, to ensure a smooth shift with minimal disruption. Prioritize based on cost savings and business impact. Ensure strong communication and user support throughout the process.
- Monitor and adjust: After consolidation, regularly review usage and performance to ensure the new setup continues to meet your business needs.
Consolidate Business Apps with Thriveon
Business application consolidation is one of the most effective ways to reduce IT costs while improving performance and security. It allows your business to focus less on managing tools and more on driving results. If you’re not sure where to start, partnering with an award-winning managed service provider (MSP) like Thriveon can help.
Our Fractional CIO will help you assess your IT environment, select the right tools and guide you through a smooth consolidation process so you don’t experience any disruptions.
If you’re ready to simplify your tech stack, schedule a meeting with us today.