Modernizing applications on hybrid cloud

The technologies that will underpin the business models of tomorrow are coming of age today.

AI is transforming how companies operate, as well as the experiences they can provide. The Internet of Things is delivering real-time insights that let massive enterprises pivot on a dime. And cloud computing is enabling cutting-edge innovations that are helping companies stay ahead of the curve.

But organizations can’t make the most of these rapidly maturing technologies unless they establish the right IT foundation. And the reality is, many carry massive technical debt. They’re struggling to integrate next-gen tech into traditional systems that just can’t carry the load—or can’t support the experiences end users expect.

Application modernization isn’t just another IT buzzword. It’s a business imperative.

As enterprises evolve to navigate disruption and accelerate innovation, their technology architecture needs to mature, as well. Modernization, which involves updating traditional applications, software systems, and infrastructure to meet current tech standards, drives this evolution.

Overcoming the barriers to modernization

While application modernization may sound like an IT buzzword, it’s not just a technology priority. It’s a business imperative. It helps enterprises transform their products, services, and operations; build resilience; and respond faster to change while also generating revenue, boosting efficiency, and reducing costs across the entire company.

However, many organizations are still at the start of their modernization journey. To better understand where companies are in this process—and what’s holding them back—the IBM Institute for Business Value (IBV), in collaboration with Oxford Economics, surveyed more than 400 top IT executives across industries in North America.

Modernization is moving slowly: Few organizations have made enough progress to unleash its full potential.

We found that most executives know where their modernization programs need to go and are charting a course to get there—but only a few have really put the wheels in motion. Only 27% say their organization has modernized many of the necessary workflows, including the related applications, data, and systems.

Part of the problem is that leaders aren’t thinking holistically enough. They’re focused on operational objectives and incremental improvements, rather than the strategic outcomes that will allow them to thrive in the business landscape of tomorrow.

What will help enterprises make meaningful progress? Answering this question starts with understanding the common set of obstacles they face. Overcoming financial, technical, cultural, and expertise obstacles can make application modernization easier—and propel them forward on their enterprise transformation journey.

Download the report to learn how your organization can hurdle the barriers to modernization and make the most of cloud-enabled transformation.