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IT consolidation can be described as to combine similar operations, assets, facilities or other resources in order to achieve economies of scale and avoid duplication. Consolidation is also commonly used as a term to describe termination of unused, discontinued, redundant or non-strategic products, resources or services. In this paper the focus is on the consolidation of business IT applications. We describe the background and the reasons for initiating consolidation activities and present our practical experiences of how to set up a successful business-driven application consolidation program.