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In the application modernization journey, the optimization cycle is a time to phase out applications that no longer deliver value. Retiring applications is a high-effort, high-value task that frees up resources and reduces maintenance overhead so you can focus on more strategic initiatives.
As with all activities in the App Modernization Guidance for Azure, we recommend a structured approach. The following sections can help you narrow the choices and make informed decisions.
How to choose which apps to retire and decommission
To quantify the business value of retiring or decommissioning an application, use a scoring system. By weighing costs, benefits, and other criteria that matter to your organization, you can estimate the relative importance of an application and choose the best course to take.
For a systematic approach, you can follow a process like this:
- Identify criteria. Determine the key factors that influence the decision to retire or decommission an application. Common criteria include operational and maintenance costs, usage frequency, technical viability, and compliance requirements. Collectively, these criteria establish an overall score that captures the business value of an application you’re considering.
- Assign weights. Using a scale of 1% to 100%, assign a relative weight to each criterion based on its importance at your organization. The total weight should equal 100%.
- Evaluate applications. Rate each application you’re considering against the criteria. On the first pass, you might use a general rating of high, medium, and low. Later, you can convert these ratings into numerical values for easier comparison.
- Calculate scores. Multiply the rating of each criterion by its weight and sum up the scores for each application.
- Analyze results. Compare the total scores to determine which applications should be retired or decommissioned. Higher scores indicate higher priority for retirement or decommissioning.
For example, the following table compares three retirement candidates—App A, App B, and App C. The three rightmost columns capture the relative scores against the specified criteria. Each relative score is then assigned a value—low is less than 30%, medium is between 40% and 60%, and high is greater than 70%.
You can then quantify the relative scores to estimate the value of each app. Here, App A with its high costs and compliance issues has a higher total score than App C with its low usage but high technical benefit. The higher the total score, the higher the priority to retire or decommission—and the lower the business value delivered by the app.
With these factors in mind, you can frame your decision-making criteria appropriately.
Decision matrix for application retirement and decommissioning
| Criteria | Weight | App A | App B | App C |
|---|---|---|---|---|
| Operational cost | 30% | High | Medium | Low |
| Maintenance cost | 25% | High | Medium | Low |
| Dormant frequency | 20% | Low | Medium | High |
| Technical benefit | 15% | Low | Medium | High |
| Noncompliance concerns | 10% | High | Medium | Low |
| Total score | 100% | 56% | 40% | 44% |
Application retirement considerations
In addition to the factors used to weigh the costs and benefits, consider the following in your decision-making:
- Data handling. Ensure that data from retired or decommissioned applications is archived or migrated according to compliance and business needs.
- Risk management. Assess the risks associated with retiring or decommissioning each application, including potential impacts on business processes and user access.
- Stakeholder involvement. Engage stakeholders in the decision-making process to ensure all perspectives are considered and to gain buy-in for the final decision. For example, encourage all stakeholders to participate in scoring the applications under consideration for retirement.
- Vendor contracts. Thoroughly review existing vendor contracts for any ongoing obligations or penalties associated with early termination.
- Phased retirement. Consider phasing out applications over time if they have multiple dependencies or complex functionalities.
Next steps
Return to your assessment and consider the next application to modernize.