The redesign of mainframe-based business applications to applications capable of running on smaller, less-expensive systems, often PC LANs. Client/server architecture is the model most often implemented during downsizing.
When applications are moved from large computer systems to PCs, security, integrity, and overall control may be compromised, and development and training costs can be high. However, a collection of appropriately configured PCs, networked together, can provide more than ten times the power for the same cost as a mainframe computer supporting remote terminals.
A more accurate term might be rightsizing, to match the application requirements of the corporation to the capabilities of the hardware and software systems available.
See also outsourcing.