In order to better understand how organizations are addressing the need for application rationalization, Futurestate IT conducted a survey of IT professionals. The objective of the study was to determine the state of application portfolios, current practices for rationalizing them and how IT professionals believe they should be managed. Key Findings: Application Portfolios are out of date and bloated Current rationalization practices are costly and labor-intensive Rationalization is critical to accelerate Windows 7 migration projects Ongoing application rationalization drives down operational costs and increases agility Organizations understand the importance of ongoing rationalization but fail to implement it as an operational practice Overall, the majority of IT professionals believe their portfolios are in moderate to poor health and that significant benefits could be attained through better portfolio rationalization.