Professional Documents
Culture Documents
George Mironescu
Associate Research Director,
App Development and Delivery
The Business Value of LeanIX Enterprise Architecture Management and SaaS Management Solutions
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Situation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Digital-First Business Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sheer Architectural and Operational Complexity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
In Need of Cloud-Estate Optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Iteration Key in Changing Innovation Approaches. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Mapping and Managing Value Streams. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
LeanIX Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Enterprise Architecture Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
SaaS Management Platform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Value Stream Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Challenges/Opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Appendix: Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Executive Summary
LeanIX Enterprise Architecture Management (EAM) and SaaS
Management Platform (SMP) are designed to help IT architects, IT asset
managers, business leaders, and DevOps teams achieve transparency Business Value
and control over their enterprise architectures, software-as-a-service
(SaaS) portfolio, and application landscapes. Through a series of in-
Highlights
depth interviews, IDC conducted research to explore the value and
benefits for organizations of using LeanIX EAM and/or SMP, such as an $1.1M
ability to understand the full scope of the software estate, transform the
average annual
benefits per
organization, and better serve customers. Based on this data collected
organization
from LeanIX customers and through its Business Value methodology,
IDC calculated that these customers achieve benefits worth an annual
average of $1.1 million ($2,670 per LeanIX-managed application), by: $2,670
average annual benefit
per LeanIX-managed
• Creating a comprehensive and accessible overview of the application
organization’s IT landscape, which facilitates collaboration between
IT and business teams, supports effective decision making, and aligns
business technology with strategic goals
386%
three-year ROI
• Boosting overall business performance by improving the efficiency of
various teams, including IT management, security, procurement, and Five month
compliance payback period
$56,079
one-time total SaaS
application cost
savings
51%
more productive
financial management
teams
Situation Overview
Digital-First Business Agenda
As per IDC’s 2022 worldwide CEOs survey, 95% of organizations are shifting
to digital-first agendas. Such strategies move beyond digital transformation as
the primary vehicle to drive modernization across the IT estate and operating
processes. A digital-first strategy centers on programs and efforts that bring
software and digital processes into every corner of the organization and into
every interaction with customers and in the broader ecosystem. Under this vision,
digital first becomes a critical way to engage successfully in the market and drive
business competitiveness.
However, critical technology and organizational challenges lie just beneath the
surface of such a strategy. CEOs are likely unaware of these challenges, but IT
and software/application delivery teams will need to address them.
Interest in mapping and managing the value delivered and the efforts contributed
by the various constituents along the delivery chain has been growing
noticeably. For instance, optimizing app-delivery operations emerges as a top
2 organizational priority, as indicated in IDC’s European DevOps Survey, 2023
and Modern App Delivery Survey, 2023. This only underlines the importance of
establishing value-stream capabilities across the app-delivery landscape.
LeanIX Overview
LeanIX was founded in 2012 in Bonn, Germany, to provide an enterprise
architecture platform and toolset that helps IT architects and business leaders
achieve transparency and control over their business technology landscapes. The
company has expanded strongly since it was founded. For example, from 2021
to 2023, it doubled its customer count. The company now has offices in Germany,
the U.K., the Netherlands, France, Slovenia, and the United States, and it currently
has more than 500 team members and over 1,000 customers, including large
multinational enterprises such as Volkswagen, Adidas, Bosch, DHL, and Vodafone.
As with all LeanIX’s products, LeanIX EAM focuses on ensuring that foundational
data on existing systems, applications, and capabilities is complete, consistent,
and up to date. To achieve this, EAM is built on a predefined and fully configurable
metamodel. This ensures faster time to value because organizations can avoid the
time-consuming process of defining the metamodel. By supporting widespread
collaboration and featuring a pricing model that enables unlimited users, LeanIX
makes it possible to leverage organizational knowledge to continually improve
data quality. Automated SaaS discovery, powered by integrations with a range
of key enterprise systems (Google, Microsoft, Okta, etc.) and out-of-the-box
integrations with category leaders, further ensures data accuracy. These
integrations include SAP Signavio (for business process models), ServiceNow (for
IT assets), and Collibra (for business data entities).
The core of LeanIX EAM is the Application Portfolio Management (APM) base
module. Customers can optionally license add-ons focused on Technology
Risk Management (used to identify and manage obsolescence risk of end-of-
life technologies) and Business Transformation Management (used for target
architecture modeling and advanced scenario planning to accelerate business
transformation).
• Manage the lifecycles of contracts and renewals and proactively plan for
negotiations
• Map SaaS application compliance with regulatory requirements (e.g., GDPR and
SOC2)
As is the case with EAM, SMP integrates with a multitude of third-party systems
to make it as easy as possible to create an up-to-date single source of truth about
SaaS applications and their usage. Integrations with popular single-sign-on (SSO)
systems, cloud access security brokers (CASB), and HR, finance, and expense
management systems help to discover application licenses in use. When it comes
to tracking usage, SMP integrates directly with over 130 SaaS applications out of
the box, or customers can implement their own integrations.
complex software configurations. LeanIX VSM can import SBOM definitions from
third-party tools, including Snyk, Jfrog Xray, CycloneDX, and Sonatype.
During the interviews, the companies were asked a variety of quantitative and
qualitative questions about the offering’s impact on their IT operations, core
businesses, and costs. Specifically, five interviewed organizations solely use
LeanIX EAM, three only use LeanIX SMP, and two use both LeanIX solutions. As
a result, metrics impacting ROI have been weighted based on organizational
usage, and that weight is reflected in the tables.
TABLE 1
Firmographics of Interviewed Organizations
Total number of
1,044 183 5 to 8,000
business applications
In commenting on their decision criteria, study participants noted that EAM provides
transparency and visibility into interface integrations from a global perspective, while SMP
helps them to arrive at a deeper understanding of SaaS application use. In addition, they
stated that both SMP and EAM helped them upgrade their respective application portfolio
management systems.
Table 2 shows organizational usage of LeanIX customers at the time of the interviews. The
average total number of business applications in play that are associated with LeanIX
solutions is 413. In addition, the number of business users of those applications averaged
227,316. Additional metrics are presented below.
TABLE 2
Organizational Usage of LeanIX
Figure 1 presents additional data on the IT infrastructures of study participants. This data
breakout shows that most applications (65%) are hosted in public cloud, with 17% residing on
premises.
FIGURE 1
Infrastructure of LeanIX Managed Applications
8%
Hybrid or multicloud
10%
Private cloud
65%
17% Public cloud
On premises
Specifically, IDC evaluated how EAM fosters easy collaboration between IT and
business teams on monitoring and assessing IT resources and determining how
well these resources fulfill overall business goals. IDC also examined how SMP
helps companies track and monitor the performance of SaaS applications.
Study participants that use SMP mentioned these benefits of the solution:
• Reduced shadow IT — software organization:
“A significant benefit of LeanIX is that it gives our organization the ability to identify all
the services we use throughout the company and to reduce redundancy and simplify our
environment. It also helps with shadow IT, by identifying when someone signs up for a
service themselves, rather than going through the proper channels.”
A retail organization familiar with the use of both platforms noted that, “LeanIX is the
indisputable source of the truth in our organization. It has given us the ability to defer
unnecessary investments, which has a business impact on the bottom line. In addition, when
people come to us with a business problem, we can point them to an application, which has
contributed to the business’s speed.”
IDC calculated the cumulative benefits customers achieved in adopting LeanIX. Factoring
in deployment time, average annual benefits are quantified at $1.1M per organization, or
$2,670 per application managed by LeanIX. Below, these benefits are broken down by
solution usage:
• $554,000 in benefits related specifically to the use of the LeanIX EAM, and $236,490 in
benefits related specifically to the use of LeanIX SMP
• $314,720 in benefits from the general use of the LeanIX platform and not specifically
attributed to SMP or EAM
FIGURE 2
Average Annual Benefits Per Organization
(Data reference)
$554,000
$314,720
$236,490
IDC confirmed through interview data analysis that study participants enjoy many of these
benefits. They appreciate that, with single-source aggregation, the solution offers greater
organizational transparency across their existing application portfolios. They also appreciate
that it serves as a single source of IT component relationships — one that can display and
configure relationships between IT components without relying on Visio diagrams or Excel.
In addition, they value its impact on flexibility, time, and cost and how it easily integrated into
their IT landscapes.
IDC examined EAM module usage across all organizations. As shown in Figure 4, the
greatest usage was seen with Application Portfolio Management (100%), followed by
Technology Risk Management (71%), and Business Transformation Management (29%).
FIGURE 3
LeanIX EAM Tool Usage
(Data reference)
% of EAM Users
TABLE 3
Impact on IT Cost and Risk
The interviewed organizations noted that their enterprise and/or business architects
gained new efficiencies through greater portfolio transparency, more in-depth and granular
application data, increased application rationalization, and better overall standardization.
This has enabled teams to work with greater efficiency, needing 1.8 fewer full-time
equivalents (FTEs) and avoiding hiring 1.7 FTEs who would otherwise have been needed
prior to the deployment of LeanIX EAM. As a result, these companies have experienced a
35% efficiency gain in the work performed by business-architect teams. This has translated
into an annual average efficiency-based business value of $348,823 for each organization
(Table 4).
TABLE 4
Enterprise/Business Architects Efficiency Gain
LeanIX EAM has helped the interviewed organizations better address compliance-related
concerns, especially those associated with European GDPR regulations. They have gained
the ability to tag systems that have identifying information to ensure ongoing compliance.
Table 5 illustrates these benefits. As shown, the companies interviewed have achieved a
7% productivity boost in their compliance teams. This has resulted in an average annual
productivity-based business value of $25,893 for each organization.
TABLE 5
Compliance Team Productivity Gain
LeanIX ‘s SaaS Management Platform (SMP) is designed to help companies meet these
challenges. The solution provides integration with a wide variety of leading SSO systems,
cloud access security brokers (CASB), and HR, finance, and expense management systems.
These capabilities can help IT managers easily discover applications and gain visibility
into their company’s SaaS ecosystems. The offering creates a complete SaaS inventory
using continuous automated discovery to track usage, manage licenses and contracts, and
generate actionable insights.
Study participants confirmed many of these benefits. They appreciate that the solution offers
significant savings in subscription costs and provides greater insight into contract renewals.
They also noted that it offers them a single view of application contracts, while providing the
ability to cut costs by eliminating concerns associated with shadow IT (otherwise known as
“business-led IT”). Participants noted SMP’s ability to enable strategic resource allocation
and analyze license use for renewal purposes.
To provide a full and accurate picture of post-adoption experiences with LeanIX, IDC
evaluated a variety of impacts, beginning with SaaS management. The interviewed
companies reported that LeanIX manages a significant portion of SaaS applications (85%)
and this gives them better insight into licenses, subscriptions, resource redundancies, and
issues related to business-led IT without IT department oversight.
IDC then evaluated cost impacts. As a direct result of deploying LeanIX SMP, organizations
gained vital information about SaaS application use and redundancies. They were therefore
able to reduce the number of SaaS applications and decrease costs. Table 6 quantifies
these benefits, showing total average annual cost reductions for all companies, calculated at
$149,545 per company.
TABLE 6
SaaS Application Reduction Cost Savings
Total
Number Weighted
of SaaS Total One- One-
SaaS Application Applications Cost per Time Cost Time Cost
Reduction Cost Savings Reduced Application Reduction Reduction
The adoption of LeanIX SMP has significantly reduced renewal costs for the interviewed
organizations because they have gained the ability to track renewals. This enables them
to be proactive when it comes time to renew or cancel subscriptions and actively address
redundancies. Table 7 quantifies these benefits, showing renewal cost savings of $26,879
(one time) and $133,475 (annual) per company.
TABLE 7
Impact on SaaS Renewal Negotiations
IDC then looked at impacts for various IT-related teams. The interviewed organizations
noted that IT management teams benefited from improved application discovery, application
management, and budget allocation with the use of LeanIX SMP. LeanIX SMP’s broad
functionality results in increased overall efficiency and the avoidance of additional FTEs.
Table 8 quantifies these benefits, showing a 48% adjusted FTE gain in efficiency and an
annual average business value of $53,750 per organization.
TABLE 8
IT Management Team Efficiency Gains
Companies interviewed reported that line-of-business teams also derive benefits. Financial
management departments appreciate the in-depth forecasting and analysis provided
by LeanIX SMP. These features enable them to be more productive in planning for and
purchasing SaaS applications.
Table 9 quantifies these benefits. As shown, the companies interviewed have achieved
a 51% productivity boost in the work performed by their financial management teams,
meaning this department now works at the equivalent productivity level of an additional 0.7
full-time employee. This results in an average annual productivity-based business value of
$48,813 per organization.
TABLE 9
Financial Management Team Productivity Gain
The interviewed organizations noted that procurement teams are now more prepared for
contract renewals due to LeanIX SMP notifications. This capability enables the team to
better optimize subscriptions based on organizational usage and application discovery.
Table 10 quantifies these benefits. As shown, the companies interviewed achieved a 23%
productivity boost in the work performed by their procurement departments, translating into
an annual average productivity-based business value of $28,583 per organization.
TABLE 10
Procurement Team Productivity Gain
As these comments indicate, LeanIX EAM and SMP both reduce shadow IT within
interviewed organizations. This results in less overall exposure to risk. The interviewed
organizations noted that LeanIX can serve as a single source of the truth for application
use and establish processes to ensure that application usage and data are appropriately
controlled.
Table 11 illustrates these benefits. As shown, the companies interviewed achieved a 33%
efficiency gain in the work performed by their security teams. Importantly, this efficiency
gain enabled security team members to be repurposed to other business-critical initiatives.
This has resulted in an average annual efficiency-based business value of $184,167 for each
organization.
TABLE 11
Security Team Efficiency Gain
Before Benefit
Security Team Efficiency Gain LeanIX With LeanIX Benefit Percentage
LeanIX EAM and SMP have enabled the interviewed organizations to reduce application
redundancy and eliminate applications not in use. End users now have better access to
more useful applications, which has improved the speed at which they can work and thus
productivity.
IDC quantified end-user business enablement benefits after adoption (Table 12). Factoring
in an operation margin of 15%, these calculations indicate that end-users have been able to
work with the productivity and speed of two additional FTEs. This end-user productivity gain
amounts to $160,208 in business value for each interviewed organization.
TABLE 12
Business Enablement — End-User Productivity Gains
ROI Summary
Table 13 presents IDC’s return-on-investment analysis for study participants’ use of LeanIX.
As shown, IDC projects that these companies will achieve three-year benefits (calculated
using discounted cash-flow [DCF] analysis) worth an average of $2,624,100 per organization
($6,348 per LeanIX managed application) through better application management, staff
efficiencies, and improved business performance. These benefits compare with total three-
year DCF costs of $540,100 per organization ($1,306 per LeanIX managed application).
These benefit levels and investment costs are projected to result in an average three-year
ROI of 386% and an investment break-even point in 5 months.
TABLE 13
Three-Year ROI Analysis
Payback (months) 5 5
Challenges/Opportunities
Over the last decade, most organizations have been leading their digital landscapes with
agendas dictated by velocity, agility, and tactical-win considerations. This has often led to
heuristics taking precedence over adequate architecture and planning. Furthermore, cloud
has been disrupting the traditional way of designing systems and managing portfolios, with
architectural-complexity considerations often being either an afterthought or delegated to
SaaS, PaaS, and IaaS platform vendors. Some of the biggest pain points that organizations
have been struggling to navigate on the back of cloud adoption are the rapid accumulation
of technical debt and the financial overspend caused by poor planning and resource
management. The decentralization of solution buying and the empowerment of business
stakeholders to acquire solutions add to the challenges; organizations need to contain their
cloud bills, drive transparency, and maintain alignment over buying-decision processes.
While such organizational attitudes and priorities remain visible today, many organizations
are now being more disciplined in their architecture, portfolio, and financial management —
not least because spending in today’s IT environments provides notable room for savings,
optimization, and efficiency.
Opportunistic decisions can lead to no, or poorly informed, architecture. This typically
results in long-term pain for organizations on all levels — including security, integration,
scalability, performance, and finance (e.g., technical debt management) — when it comes
to evolving the IT estate. LeanIX needs to elevate among its audiences the importance
of discipline for all the above considerations and the risks posed to organizations that
ignore such dimensions for a prolonged period. LeanIX’s forward-thinking approach to
enterprise architecture, application portfolio and technology risk management, and business
transformation places it in a good position to support customers as they reconsider their
priorities and shift behaviors.
One area that is very rapidly surging as a key organizational priority among senior business
leaders is sustainable IT, ranging from networks and racks to application operations and
software engineering. In this context, customers need discoverability, auditing, and analytics
capabilities to capture and reduce the impact their IT has on their carbon footprints. Through
its expertise in enterprise architecture management, LeanIX is positioned to support
customers with their sustainable IT programs on several fronts.
Conclusion
According to IDC research conducted in 2023, 67% of senior IT leaders and 74% of
IT architects rank the role of enterprise application portfolio management in coping
with the growing complexity and surging number of IT assets over the coming years as
very or extremely important. As per the same research, organizations are driving their
application strategies under two very clear mandates: 1) to improve business productivity
(74% of organizations) and 2) to lower the overall cost of the application estate (54% of
organizations).
With the pace of change and digital innovation in the market accelerating, it is inconceivable
that organizations will be able to compete in a digital-centric business environment without
robust enterprise architecture and high financial, operational, and regulatory compliance
discipline across the application estate — especially across the rapidly expanding
SaaS estate. The ability to cope with structural changes in the market is dependent on
organizational and technical agility, security and compliance posture, and financial control
over everything digital. All these considerations are, in turn, dependent on how competitive
an organization’s enterprise architecture and SaaS estate management capabilities are.
Appendix: Methodology
IDC’s standard ROI methodology was utilized for this project, with the foundation being data
gathered from current LeanIX users.
2. IDC created a complete investment profile (three-year total cost analysis) from interview
responses. Investments go beyond the initial and annual costs of using LeanIX and can
include additional costs related to migrations, planning, consulting, and staff or user
training.
3. IDC calculated the ROI and payback period. IDC conducted a discounted cash-flow (DCF)
analysis of the benefits and investments for the organization’s use of LeanIX over a three-
year period. ROI is the ratio of the net present value (NPV) and the DCF investment. The
payback period is the point at which cumulative benefits equal the initial investment.
• The net present value of the three-year savings is calculated by subtracting the amount
that would have been realized by investing the original sum in an instrument yielding a
12% return to allow for the missed opportunity cost. This accounts for both the assumed
cost of money and the assumed rate of return.
• Because LeanIX requires a deployment period, the full benefits of the solution are not
available during deployment. To capture this reality, IDC prorates the benefits on a
monthly basis and then subtracts the deployment time from the first-year savings.
Note: The numbers in this document may not be exact due to rounding.
Megan Szurley is a Senior Research Analyst for the Business Value Strategy Practice,
responsible for creating custom business value research that determines return-on-
investment (ROI) and cost-savings for enterprise technology products. Megan’s research
focuses on the financial and operational impact of these products for organizations once
deployed and in production.
Neil Ward-Dutton
VP, AI and Intelligent Process Automation European Practices
Neil Ward-Dutton is vice president, Automation, Analytics and AI at IDC Europe. In this role
he guides IDC’s research agendas, and helps enterprise and technology vendor clients
alike make sense of the opportunities and challenges across these very fast-moving and
complicated technology markets. In a 28-year career as a technology industry analyst, Neil
has researched a wide range of enterprise software technologies, authored hundreds of
reports and regularly appeared on TV and in print media.
George Mironescu
Associate Research Director, App Development and Delivery
George Mironescu leads the app development and delivery research across Europe,
covering areas such as modern app delivery environments, developer and DevOps
platforms, software delivery pipelines, app integration, cloud native frameworks and open
source communities.
George looks at the challenges and pain points facing end user organizations within
their software development/delivery roadmaps, taking a persona-based view on realities,
perceptions, and ambitions. He also closely follows vendor product development and areas
of investment.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services,
and events for the information technology, telecommunications, and consumer technology markets.
With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology
and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals,
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