Application management as a practice area has evolved over the years with changing technologies and enterprise priorities. As with other segments within application services, the focus of application management has been improving productivity and reducing costs while ensuring applications are up and running. Next-generation application management is the evolution of the traditional AMS. More mature models of service delivery, newer financial constructs, and evolved governance models apart from using more advanced technologies are some of the differentiating factors of next-generation AMS vis-a-vis traditional AMS. Enterprises are increasingly demanding next-generation AMS from their service providers to cut the run spend and divert it toward modernization and creation of new assets.