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The Finance Base
application portfolio management

Duplicate Tech: Why Overlapping Systems Deserve a Financial Review

Duplicate systems can add licensing, maintenance, integration, and data friction. Assess business fit and transition costs before deciding whether to consolidate.

By TheFinanceBase Team 4 min read
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Duplicate technology can quietly raise operating costs and make work harder, but overlapping tools are not automatically wasteful. Before consolidating, organizations should inventory what they use, compare each system with business needs, and account for both the potential savings and the cost of transition. Namratha Peddisetty’s July 1, 2024 ITPro Today article makes that case qualitatively; it reports no savings percentage, payback period, or measured company result.

What counts as duplicate technology?

Duplicate technology is the use of multiple applications or IT systems that perform the same or similar functions. The overlap may be visible in formal software portfolios, or less visible when teams adopt tools independently without a shared review.

Similar capabilities do not prove that two systems should be merged. Different departments may have distinct requirements, or separate systems may serve a legitimate business purpose. The question is whether each tool still fits current and future needs and whether its benefits justify its full operating and transition costs.

Why organizations accumulate overlapping tools

Redundancy can emerge gradually rather than from a single purchasing decision. Peddisetty identifies several common conditions:

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  • Reorganizations, organic growth, or mergers and acquisitions can leave teams with systems inherited from different structures.
  • Departmental silos and poor communication can lead separate groups to select tools for similar jobs.
  • Weak IT governance can allow new applications to be added without checking what is already available.
  • New tools and new use cases can create overlap as business requirements change.

These causes can compound: a tool selected for one team may spread, while another department continues using a system that covers much of the same work.

How overlap can affect the bottom line

Licensing and ongoing maintenance

Multiple systems with overlapping capabilities may mean multiple licensing and management obligations. Each system can also require maintenance and staff attention. The article argues that consolidation may reduce licensing and management costs, but it provides no quantified savings or evidence that every consolidation lowers total spending.

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Integration, troubleshooting, and fragmented data

Connecting systems can require custom integration work, which may consume money, staff time, and effort. More connections can also make troubleshooting harder. If records or processes do not stay aligned, data may become inconsistent or fragmented across tools.

Process consistency and security

Different systems can make it harder to standardize processes. They may also have uneven cybersecurity capabilities, leaving the organization to manage different controls and levels of protection. These are risks to assess, not proof that a particular pair of tools has caused a security incident.

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Customer records and experience

Where customer-facing systems duplicate records or identifiers, teams may lack a coherent view of a customer. Peddisetty suggests considering these systems because customer experience can affect revenue. That is a prioritization suggestion, not a proven rule that customer systems should always be consolidated first.

How to assess overlapping systems before consolidating

Start with evidence about how the organization actually uses its tools. Peddisetty’s recommended starting point is to evaluate existing technologies against current and future business needs. The following sequence reflects the article’s advice; it is not a validated scoring method.

  1. Inventory the portfolio. List applications and systems in use, including departmental and shadow tools. An application portfolio tool can help maintain the inventory and make effectiveness metrics available to governance decision-makers.
  2. Compare each tool with business needs. Assess current and expected requirements, department needs, integration and data flow, maintenance burden, licensing and operating costs, cybersecurity capabilities, customer experience, and the effort required to move. The source supplies no scoring weights, so teams must determine how to weigh these factors locally.
  3. Identify the strongest fit before selecting a replacement. Review whether an existing system can meet the need across the organization rather than assuming that a new platform is necessary. A tool with overlapping functions may still be justified if it serves distinct requirements.
  4. Involve affected stakeholders. Include relevant departments in the assessment so the choice supports organizational goals as well as team requirements.
  5. Put proposed additions and migrations through governance review. An IT governance group can assess whether a proposed tool or migration is necessary and advantageous, and whether an existing option already addresses the need.
  6. Review customer-system overlap where relevant. Check whether duplicate customer systems or identifiers prevent a coherent customer view, and weigh customer experience alongside the cost and effort of change.
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Build the financial case without assuming savings

Consolidation may bring lower licensing and management costs and more integrated processes and data. A unified platform also requires an initial transition investment. The cited article offers no net-savings estimate, payback period, comparative study, or named company outcome, so its claims should be treated as directional rather than as a forecast.

For a local decision, compare the costs and operational effects of keeping the current setup with the costs and effects of a specific proposed change. Include ongoing licensing and management, maintenance, integration and troubleshooting, and the one-time work of migration. Consider whether the change will address the organization’s actual process or data problems, rather than counting overlapping products alone. The article offers no universal formula or threshold for making that decision.

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What the evidence does—and does not—establish

Peddisetty’s July 2024 article is industry commentary, not a reported study. It describes ways duplication can strain budgets and operations and presents consolidation as a possible remedy, but it does not quantify the problem or demonstrate a measured return. Kannan Subbiah’s July 2, 2024 LinkedIn post republishes the article’s title and central passage; it is corroboration of the text, not independent research.

The practical implication is to treat overlap as a reason to investigate, not as automatic proof of waste. An inventory, a needs-based comparison, and stakeholder and governance review can help leaders decide whether to retain, rationalize, or replace systems on the merits of their own organization.

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