This guest blog post is from David S. Linthicum, Enterprise Technology Analyst for SiliconANGLE and theCUBE.
In today’s enterprise IT environment, the proliferation of point solutions has resulted in widespread app sprawl. This has been due to several practices, including the practical use of applications to solve very narrow problems, such as inventory, order processing, and customer experience management. This app sprawl is leading to significant inefficiencies and increased costs.
Quickbase's comprehensive study, "Finding A Path Towards IT Consolidation," reveals proof of this. It highlights how organizations across various sectors struggle with a tangled web of disconnected tools that are driving more heterogeneity and, thus, complexity. This results in decreased productivity and elevated operational costs, a siphon of business value that most enterprises are unaware of.
This leads to negative values from IT solutions, such as those built on public clouds, or the rush to develop and deploy generative AI systems. The approach of “another problem, another application or database” is driving many enterprises to rethink this approach and look for critical enabling technology that can be leveraged to reduce the impact of this issue on the bottom line. Let’s look at what’s important here.
Key findings
The survey data reveals that over 75% of organizations use more than ten software applications, with 65% employing multiple project management tools. This app sprawl contributes to the following:
- Data silos
- Process silos
- Complicates integration of data and processes
- Increase in expenses (due to redundant functionalities)
- Heterogeneity leads to too much complexity
- Poor employee morale
The study finds that the financial burden of managing these disparate systems is one of the primary pain points driving the deficits listed above. This is compounded by the additional cost of licenses and maintenance, leading to even more expenses and reduced business value.
Integration problems, compliance risks, and enhancements in security challenges further exacerbate operational inefficiencies. Concern over these issues has prompted around 90% of respondents to prioritize software consolidation. This means recognizing it as a critical step to improving operational efficiency, enhancing data integration, and simplifying IT management. However, most of these desires never translate into real consolidation. Indeed, the approach to problems in leveraging “yet another app or database” continues and is worsening things exponentially.
Read the full report, "Finding a Path Towards IT Consolidation"
Implications for enterprise IT
The findings of this report suggest a growing urgency for large enterprises to transition from a fragmented technology stack to a more unified and strategic IT ecosystem. Consolidation addresses current inefficiencies and sets the stage for other endeavors, such as AI integration. This seeks innovative differentiation of weaponizing AI for business value such as increased operational efficiency and better customer experiences. However, many enterprises are not yet prepared to build, deploy, and operate AI systems, such as agentic AI and generative AI, until the app sprawl issue is solved.
AI is always a weapon that can streamline consideration. The study indicates that AI can play a transformative role, enhancing decision-making, streamlining processes, and identifying redundant software solutions. Enterprises that leverage AI effectively in their consolidation efforts will be better positioned to harness its predictive analytics capabilities, automate repetitive tasks, and improve overall data integration.
However, not all paths to consolidation are straightforward. The study highlights significant barriers such as data migration challenges, integration with legacy systems, and budgetary constraints. Indeed, this needs to be more of a priority than it is, moving it in importance in terms of funding. Many enterprises consider consolidation the outcome of their failure and would instead not address it directly. Indeed, nearly half of the respondents in the study express being overwhelmed by the prospect of consolidation. They fear potential adverse outcomes like employee pushback, negative views of their performance, and data loss.
Solutions to consider
The study recommends several best practices for navigating this landscape. First, enterprises should select tools with centralized workflows and robust integration capabilities. This centralization and abstraction approach removes much of the complexity of dealing with this consideration but is often overlooked, given that these systems span platforms. Many of these entities are owned by different stakeholders.
To get around this, comprehensive training, change management support, and detailed cost-benefit analyses are crucial for a smooth transition. Additionally, fostering alignment between IT and business units can significantly mitigate resistance and ensure a cohesive approach to consolidation.
Tools like Quickbase address application and data consolidation issues related to app sprawl. It does this using features designed to unify tools and streamline workflows:
- Low-Code Platform: Quickbase's low-code environment allows users to build custom applications without extensive technical knowledge.
- Cross-App Relationships: Quickbase facilitates data sharing and integration across multiple apps through cross-app relationships, which allow different apps to share system resources and connect data effortlessly.
- Pipelines: This automation tool connects different applications and automates workflows through a low-code interface.
- Quickbase Sync and Integrations: The platform offers integration tools to connect apps and third-party tools, enabling data unification from various sources.
- Centralized Workflows: Quickbase is a single source of truth, providing a centralized view and eliminating redundant functionalities.
Call to action
As uncovered in this study, some core facts to consider are system incompatibilities and maintenance issues, which increase operational inefficiencies and costs, highlighting the need for consolidation. Transitioning to platforms like Quickbase can unify data, enhance visibility, and improve productivity while reducing software costs.
Now that the negatives of app sprawl are well understood, as presented in this article, enterprises must create a strategy to deal with it. Along with the strategy, several essential tools, such as Quickbase’s technology, are offered as potential solutions to understand how the approach can be augmented to be more cost-effective and drive better outcomes.
Embracing these strategies can help enterprises reduce costs and unlock more value from their technology investments. As the digital landscape evolves, those who proactively address app sprawl and invest in robust, scalable IT ecosystems will stand out as leaders in efficiency and innovation. By setting more precise boundaries with technology and leveraging AI's potential, large enterprise IT users can transform challenges into opportunities for growth and agility in a dynamic market.
