Guidebook: Alfabet by Software AG

June 2, 2023 - Research X114

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Alfabet by Software AG is a popular choice for organizations facing increased complexity in their IT landscape that require Strategic Portfolio Management (SPM) and Enterprise Architecture (EA) solutions to align IT investments with business objectives, manage risks, and optimize costs. Key drivers for adopting these solutions include improving visibility and management of the IT landscape, bridging the gap between IT and business goals, enhancing security and compliance, and accelerating development while increasing productivity. Companies seek solutions that offer a centralized IT repository, comprehensive capabilities, data quality and governance facilities, strong support for architecture processes, and ease of use. Organizations chose Alfabet by Software AG due to its superior data capture, governance and migration capabilities, broad functional scope and SaaS offerings. In interviews for this report, customers reported generally positive experiences during the implementation of Alfabet. Many appreciated its ease of data import through Excel, management of a large number of applications, and flexibility of the SaaS model.

Companies deploying Alfabet experience a range of benefits, including cost savings through application rationalization, improved transparency and IT governance, alignment of IT and business goals, accelerated IT delivery, increased productivity, and more effective security and compliance. One organization reported savings of over $1,000,000 in software costs through visibility into redundant functionality across its IT landscape. For another customer, Alfabet enabled the reallocation of FTEs by eliminating manual reporting. One customer attributed $14 million in cost avoidance in the past year to Alfabet, with more projected as they increase deployment scope in the following year. Another noted that with multi-dimensional data about their IT landscape, they could accomplish much more with their existing assets. Alfabet additionally allowed one organization to build software solutions in-house that were much cheaper than purchasing third-party solutions. Organizations can maximize their return on investment for Alfabet by following best practices such as starting small and incrementally building out, engaging with stakeholders, investing in user education, appointing an executive sponsor, establishing strong data governance, building processes on the solution, and monitoring progress and benefits.

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