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1 Out of 3 Companies Underprepared for Digital Transformation

Daniel Mayo

One third (33 percent) of enterprises globally are underprepared for “digital transformation” – the process of replacing legacy networks and dedicated service platforms with a coherent digital environment that is flexible, cost-effective, and capable of delivering changes rapidly and dynamically – according to Ovum's ICT Enterprise Insights report for 2017.

The research also revealed that while 60 percent believe their organization’s process of digital transformation is “well advanced” or “in progress,” only 7 percent believe it to be complete.

Respondents from the financial services sector demonstrated the most confidence in enabling digital transformation, with 60 percent of enterprise IT decision makers in this industry believing the process to be “well advanced” or “in progress.” Of these organizations, retail banks claim to be the most advanced (45 percent), followed by payments, insurance and financial markets (40 percent). By contrast, respondents from the retail sector considered their industry the least prepared for digital transformation. In the public sector, 38 percent of respondents thought their sector was experiencing some or significant disruption to services from digital technologies, only 29 percent thought their own organization was affected.

The uneven maturity of digital transformation by industry and country has created a complex landscape for sales teams to navigate, but our data plays a significant role in quantifying for our customers their target markets’ investment appetite and timescales. This enables them to quickly and confidently make decisions about where to focus their go-to-market and product investments.

In addition to this, the study indicated that while IT spend is growing globally, the top 3 regions where spend is increasing most rapidly are South Asia, Southeast Asia and Latin America, with North America, Western Europe and Australia showing the slowest increase in spend.

The new study closely examined the process of digital transformation currently taking place within enterprises today, and found many are struggling with omnichannel customer/citizen engagement, predominantly focused on online/mobile channels to date. 30 percent of enterprises are only at the early or not-started stages, while 25 percent of enterprises claim to be at least well advanced in this area.

Ovum’s ICT Enterprise Insights report provides insight for Ovum clients to help determine which industry in each market region is best prepared for digital transformation, how enterprises in their target vertical markets are prioritizing their IT and communication investment, and how much IT budgets are expected to increase or decrease for their target customers in 2017.

Methodology: Ovum’s ICT Enterprise Insights 2017 is based on the world’s largest annual IT decision-maker survey, covering 7,000+ enterprises across 62 countries, 80 technologies and 15 industries.

Daniel Mayo is Director of IT, Data & Tools at Ovum.

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

1 Out of 3 Companies Underprepared for Digital Transformation

Daniel Mayo

One third (33 percent) of enterprises globally are underprepared for “digital transformation” – the process of replacing legacy networks and dedicated service platforms with a coherent digital environment that is flexible, cost-effective, and capable of delivering changes rapidly and dynamically – according to Ovum's ICT Enterprise Insights report for 2017.

The research also revealed that while 60 percent believe their organization’s process of digital transformation is “well advanced” or “in progress,” only 7 percent believe it to be complete.

Respondents from the financial services sector demonstrated the most confidence in enabling digital transformation, with 60 percent of enterprise IT decision makers in this industry believing the process to be “well advanced” or “in progress.” Of these organizations, retail banks claim to be the most advanced (45 percent), followed by payments, insurance and financial markets (40 percent). By contrast, respondents from the retail sector considered their industry the least prepared for digital transformation. In the public sector, 38 percent of respondents thought their sector was experiencing some or significant disruption to services from digital technologies, only 29 percent thought their own organization was affected.

The uneven maturity of digital transformation by industry and country has created a complex landscape for sales teams to navigate, but our data plays a significant role in quantifying for our customers their target markets’ investment appetite and timescales. This enables them to quickly and confidently make decisions about where to focus their go-to-market and product investments.

In addition to this, the study indicated that while IT spend is growing globally, the top 3 regions where spend is increasing most rapidly are South Asia, Southeast Asia and Latin America, with North America, Western Europe and Australia showing the slowest increase in spend.

The new study closely examined the process of digital transformation currently taking place within enterprises today, and found many are struggling with omnichannel customer/citizen engagement, predominantly focused on online/mobile channels to date. 30 percent of enterprises are only at the early or not-started stages, while 25 percent of enterprises claim to be at least well advanced in this area.

Ovum’s ICT Enterprise Insights report provides insight for Ovum clients to help determine which industry in each market region is best prepared for digital transformation, how enterprises in their target vertical markets are prioritizing their IT and communication investment, and how much IT budgets are expected to increase or decrease for their target customers in 2017.

Methodology: Ovum’s ICT Enterprise Insights 2017 is based on the world’s largest annual IT decision-maker survey, covering 7,000+ enterprises across 62 countries, 80 technologies and 15 industries.

Daniel Mayo is Director of IT, Data & Tools at Ovum.

The Latest

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...