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Modernization Limited by Legacy Tech Despite Increasing Budgets

Jonathan Sullivan
NS1

The COVID-19 pandemic has compressed six years of modernization projects into 6 months. According to the recent report, Meeting Application and Access Network Modernization Challenges, IT leaders have accelerated projects aimed at increasing productivity and business agility, improving application performance and end-user experience, and driving additional revenue through existing channels.

In a study of more than 400 technology leaders from mid- to large-sized companies across the US, UK, and Germany, NS1 and IDG Research examined enterprise network and application modernization efforts. For the study, modernization was defined as the transformation of IT platforms of all types, applications, governance, and processes to achieve desired business outcomes. Results revealed that 80% of organizations are struggling to reach application delivery requirements on top of their existing infrastructure. With the pandemic placing additional burden on supporting infrastructure that was in many cases already running at redline, efforts to modernize networks and applications to meet demand are accelerating, with 83% reporting budget increases for related initiatives over the next three years.

According to the report, IT modernization initiatives that were expected to span 5 years are being rapidly condensed. Within the broad scope of IT modernization, companies are prioritizing transformation initiatives for:

■ mobility (70%)

■ remote data access (68%)

■ automation (65%)

■ security (61%)

■ IT resilience (60%)

Other areas where efforts are accelerating include public and private cloud deployments (58% and 57% respectively), improvements to scalability (58%), and deployment velocity (56%). Also interesting to note: private cloud was a greater priority in the US, cited by 65% of respondents vs. 44% in the UK and 54% in Germany.

And yet, even with the heightened sense of urgency and budget behind them, survey respondents reported facing a number of obstacles in their IT modernization projects. Although 4 out of 5 acknowledge some progress with modernization, only 8% report that they have achieved their initial objectives, and 28% report "significant progress" (75% or greater).

Challenges to modernization include a skill and talent skills gap along with competing priorities (both 37%), as well as aging networks (35%) and the outdated and rigid organizational structures that often come with them. Technical and operational debt was cited by 31% overall, although it was more of an obstacle in the US and Germany (37% and 32%, respectively) vs. the UK (19%).

These findings illustrate how it is crucial for organizations to examine the core technologies that enable them to deploy, connect, and deliver applications in order to ensure they can provide the user experiences required in today’s modern world. Static, legacy tech drags down modernization efforts because it lacks the flexibility and agility necessary to support dynamic, scalable applications and IT environments.

Successful digital transformation starts with modernizing the foundational components of enterprise networking and application infrastructure

Successful digital transformation starts with modernizing the foundational components of enterprise networking and application infrastructure — DNS, DHCP, and IP address management, known collectively as DDI. When a DDI platform is purpose-built for speed, reliability, and scalability, it can provide massive benefits that can be leveraged all the way up and down the stack, and horizontally and across complex, heterogeneous environments.

The study found that 45% of respondents are currently using DDI, and another 48% plan to adopt the technology within 12 months. Current adopters reported the two most common use cases to be accelerating service discovery in microservice environments (60%) and connecting cloud and on-premise applications and data (56%). Those with plans to implement DDI (59%) cited the ability to connect cloud and on-premise applications and data as a top benefit. Other major use cases for modern DDI adoption included accelerating application delivery (55%), automating network management tasks (54%), accelerating service discovery in microservices environments (42%), and controlling costs associated with application and network management (40%).

In addition to DDI, nearly all companies are adopting modern application stack solutions that are aimed directly at addressing network and application performance requirements. This includes network monitoring tools, where 96% of respondents were either already implementing or planning to implement within 12 months. Other top choices were public/private cloud and multi-cloud (94%), automation and orchestration solutions (93%), intelligent traffic management (87%), and multi-CDN (85%).

Jonathan Sullivan is CTO at NS1

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Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

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This year, many of the cloud infrastructure contracts signed in the early days of the AI boom will come up for renewal. As the year goes on, I anticipate we'll see a significant amount of cloud vendor swapouts and multi-cloud adoption, and the reason isn't just GPU depreciation. It's because they're tired of their current cloud providers ...

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Modernization Limited by Legacy Tech Despite Increasing Budgets

Jonathan Sullivan
NS1

The COVID-19 pandemic has compressed six years of modernization projects into 6 months. According to the recent report, Meeting Application and Access Network Modernization Challenges, IT leaders have accelerated projects aimed at increasing productivity and business agility, improving application performance and end-user experience, and driving additional revenue through existing channels.

In a study of more than 400 technology leaders from mid- to large-sized companies across the US, UK, and Germany, NS1 and IDG Research examined enterprise network and application modernization efforts. For the study, modernization was defined as the transformation of IT platforms of all types, applications, governance, and processes to achieve desired business outcomes. Results revealed that 80% of organizations are struggling to reach application delivery requirements on top of their existing infrastructure. With the pandemic placing additional burden on supporting infrastructure that was in many cases already running at redline, efforts to modernize networks and applications to meet demand are accelerating, with 83% reporting budget increases for related initiatives over the next three years.

According to the report, IT modernization initiatives that were expected to span 5 years are being rapidly condensed. Within the broad scope of IT modernization, companies are prioritizing transformation initiatives for:

■ mobility (70%)

■ remote data access (68%)

■ automation (65%)

■ security (61%)

■ IT resilience (60%)

Other areas where efforts are accelerating include public and private cloud deployments (58% and 57% respectively), improvements to scalability (58%), and deployment velocity (56%). Also interesting to note: private cloud was a greater priority in the US, cited by 65% of respondents vs. 44% in the UK and 54% in Germany.

And yet, even with the heightened sense of urgency and budget behind them, survey respondents reported facing a number of obstacles in their IT modernization projects. Although 4 out of 5 acknowledge some progress with modernization, only 8% report that they have achieved their initial objectives, and 28% report "significant progress" (75% or greater).

Challenges to modernization include a skill and talent skills gap along with competing priorities (both 37%), as well as aging networks (35%) and the outdated and rigid organizational structures that often come with them. Technical and operational debt was cited by 31% overall, although it was more of an obstacle in the US and Germany (37% and 32%, respectively) vs. the UK (19%).

These findings illustrate how it is crucial for organizations to examine the core technologies that enable them to deploy, connect, and deliver applications in order to ensure they can provide the user experiences required in today’s modern world. Static, legacy tech drags down modernization efforts because it lacks the flexibility and agility necessary to support dynamic, scalable applications and IT environments.

Successful digital transformation starts with modernizing the foundational components of enterprise networking and application infrastructure

Successful digital transformation starts with modernizing the foundational components of enterprise networking and application infrastructure — DNS, DHCP, and IP address management, known collectively as DDI. When a DDI platform is purpose-built for speed, reliability, and scalability, it can provide massive benefits that can be leveraged all the way up and down the stack, and horizontally and across complex, heterogeneous environments.

The study found that 45% of respondents are currently using DDI, and another 48% plan to adopt the technology within 12 months. Current adopters reported the two most common use cases to be accelerating service discovery in microservice environments (60%) and connecting cloud and on-premise applications and data (56%). Those with plans to implement DDI (59%) cited the ability to connect cloud and on-premise applications and data as a top benefit. Other major use cases for modern DDI adoption included accelerating application delivery (55%), automating network management tasks (54%), accelerating service discovery in microservices environments (42%), and controlling costs associated with application and network management (40%).

In addition to DDI, nearly all companies are adopting modern application stack solutions that are aimed directly at addressing network and application performance requirements. This includes network monitoring tools, where 96% of respondents were either already implementing or planning to implement within 12 months. Other top choices were public/private cloud and multi-cloud (94%), automation and orchestration solutions (93%), intelligent traffic management (87%), and multi-CDN (85%).

Jonathan Sullivan is CTO at NS1

The Latest

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ... 

Virtual Private Networks became a cornerstone of enterprise security at a time when corporate infrastructure looked very different from today ... For years, this model worked well. But the architecture behind VPNs assumed a centralized corporate environment—one where the network itself was the hub of activity. In a cloud — first world, that assumption no longer holds ...

Website outages get resolved just as fast in August as they do in November. I went looking for the opposite: the summer slowdown everyone assumes is there once the people who fix things are away. It isn't in the data we collected, covering 1.8 million confirmed outages across tens of thousands of websites ...

This year, many of the cloud infrastructure contracts signed in the early days of the AI boom will come up for renewal. As the year goes on, I anticipate we'll see a significant amount of cloud vendor swapouts and multi-cloud adoption, and the reason isn't just GPU depreciation. It's because they're tired of their current cloud providers ...

There's a moment the many observability teams have experienced days into bringing a new service into production: you realize that the vendor's claims of "intelligent" behavior included a large serving of hype. Their dashboards look nice until they don't, the failure modes are a black box, and no one on the team can confidently explain why the system did what it did at 2 am. Agentic AI is about to force every Ops team to relive that moment at web-scale until they start treating these systems as the dependencies they actually are ...