A new global study finds that top executives are making IT modernization one of their biggest priorities. Businesses plan to spend as much as 30% of their tech budgets on upgrades over the next two years, with artificial intelligence (AI) readiness leading the way. But despite the ambition, many organizations are struggling to see real returns on these investments.
The research, conducted by IDC and sponsored by Rocket Software, surveyed more than 800 IT leaders from nine countries across different industries. It shows that while nearly two-thirds of executives put modernization at the top of their agenda, progress is being slowed by three big problems: cybersecurity risks, outdated systems (“technical debt”), and a shortage of skilled workers.
What companies want to achieve
Businesses say their top goals in modernization are making operations more efficient, driving innovation, and keeping customers happy. Those that approach modernization as a complete strategy—covering infrastructure, data, applications, people, security, and AI readiness—are seeing twice the benefits compared to others.
What’s holding them back
- Over half (51%) say cybersecurity is their biggest concern.
- 43% struggle with poor data quality and disconnected systems.
- 39% cite lack of training and skilled staff as a barrier.
Key highlights from the study
- AI takes center stage: Nearly half (44%) of companies say building AI-ready systems is their most important goal. Among the most advanced organizations, 82% are already building AI-ready infrastructure—three times more than their peers.
- Cybersecurity and resilience first: 57% of businesses say protecting their systems and bouncing back from cyberattacks will be their top investment priority in 2025.
- Data matters: Leading organizations are improving data quality and making sure information is well-managed and trusted across the company.
- Mainframes not left behind: One in four companies (26%) still plan to modernize their mainframes, improving how they connect with enterprise systems.
- Talent is key: Half of all companies plan to increase IT staff, focusing on experts in AI, cloud, and cybersecurity.
Why strategy matters
Michael Curry, Rocket Software’s President of Data Modernization, explained: “Businesses are pouring money into AI, automation, and cloud systems. But without a clear roadmap that includes security, governance, and staff training, the results often fall short.”
IDC’s Mary Johnston Turner added that success is not just about adopting new technology, but about being able to adapt and scale effectively. Companies that modernize in a holistic way are better at overcoming risks, breaking down data silos, and sustaining innovation.