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Digital Transformation Projects Show Increasing Improvements

Despite the challenges of the last two years, enterprises have made significant progress with digital transformation — 79% of enterprises have made significant, transformative or even revolutionary improvements to the end user experience through digital transformation over the past year, compared to 73% in 2019 and 72% in 2020, according to Digital Transformation — Lessons Learned and Strategic Setbacks, a global survey of 650 IT leaders conducted by Couchbase.

And the outlook is optimistic — on average, enterprises plan to increase their investment in digital transformation by 46% over the next 12 months.

However, enterprises still need to be aware of digital transformation challenges — 81% of enterprises had digital transformation projects fail, suffer delays or be scaled back in the past year, at an average cost of $4.12 million.

A further 82% were prevented from pursuing digital transformation projects that they wanted to implement due to factors such as a lack of resources or funds (reported by 26%), a lack of skills to deliver the project (24%) or the complexity of implementing technologies (23%).

The consequences of these failed or missed projects can be more than wasted funds — 55% of enterprises that suffered issues with their digital transformation projects had to delay their strategic goals by three months or more, or reset them completely.

Other potential consequences of failing to keep pace identified by respondents include losing valuable staff to more innovative competitors — whether in IT (41%) or other areas of the business (40%); struggling to secure finance or undergo a successful IPO (31%); or going out of business or being absorbed by a competitor (26%).

"The progress in organizations' digital transformation ambitions over the past 12 months is clear, and there's a bright future ahead," said Ravi Mayuram, cto at Couchbase. "Ideally we'll now begin to see enterprises putting into practice projects and ideas that weren't previously considered possible. For this to become reality, organizations need to learn the lessons of the last two years and address the challenges they face, or a large proportion of that 46% increase in investment may be wasted, too. IT teams need support from across the business, together with the resources they need, and the right skills and technology to succeed. From embracing the cloud, to making the best use of data, enterprises that can make use of new technologies will be best placed to thrive."

Lessons Learned

The past two years have had a transformative impact on IT teams.

95% of respondents have implemented or investigated digital transformation opportunities that would not have been realistic at the end of 2019 — from hybrid working (nearly 47%) to moving to the cloud (46%), replacing legacy technology and processes (42%), changing the way the business operates (36%) and creating new business offerings (35%).

Other findings included:
 
■ 99% of enterprises say they learned lessons from the pandemic: including the importance of supporting remote and hybrid working (45%); the need for continuous investment and research in digital transformation technologies (41%); and how to better engage the wider business in digital transformation strategy (34%).

■ Investment priorities are shifting compared to 2019: While security is still the top priority for enterprises, and hybrid working received an understandable boost, modernizing existing technology has fallen as a priority, while adopting new technologies has grown — suggesting enterprises recognize they need completely new, modern tools in order to face the future.

■ Ways of working have changed: 88% of respondents say their digital transformation goals have fundamentally changed over the last two years; 95% have accelerated their application modernization strategies; 90% have changed the way they budget for digital transformation; and 93% say digital transformation projects over the last two years represent permanent changes to the way their business's way of operating or working.

■ End users are the focus: 88% of respondents said their digital transformation projects had been driven more by changes in user behavior than by creating new business opportunities.

Digital transformation ... needs to be the responsibility of, and driven by, the whole C-suite, rather than left solely in IT's hands

"This is an exciting time for the IT industry. We are entering a period of extreme creativity, as organizations shift from digital transformation driven by reacting to outside events, such as the pandemic or competitors' progress, to a more proactive approach driven by ideas from within the business," continued Mayuram. "For this new creativity to work, it needs to be driven from the top. Digital transformation shouldn't only be aligned to strategic goals. As a transformative business asset it needs to be the responsibility of, and driven by, the whole C-suite, rather than left solely in IT's hands. If businesses can do this and put the lessons they learned from the last two years into practice, then the future looks very bright indeed."

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Digital Transformation Projects Show Increasing Improvements

Despite the challenges of the last two years, enterprises have made significant progress with digital transformation — 79% of enterprises have made significant, transformative or even revolutionary improvements to the end user experience through digital transformation over the past year, compared to 73% in 2019 and 72% in 2020, according to Digital Transformation — Lessons Learned and Strategic Setbacks, a global survey of 650 IT leaders conducted by Couchbase.

And the outlook is optimistic — on average, enterprises plan to increase their investment in digital transformation by 46% over the next 12 months.

However, enterprises still need to be aware of digital transformation challenges — 81% of enterprises had digital transformation projects fail, suffer delays or be scaled back in the past year, at an average cost of $4.12 million.

A further 82% were prevented from pursuing digital transformation projects that they wanted to implement due to factors such as a lack of resources or funds (reported by 26%), a lack of skills to deliver the project (24%) or the complexity of implementing technologies (23%).

The consequences of these failed or missed projects can be more than wasted funds — 55% of enterprises that suffered issues with their digital transformation projects had to delay their strategic goals by three months or more, or reset them completely.

Other potential consequences of failing to keep pace identified by respondents include losing valuable staff to more innovative competitors — whether in IT (41%) or other areas of the business (40%); struggling to secure finance or undergo a successful IPO (31%); or going out of business or being absorbed by a competitor (26%).

"The progress in organizations' digital transformation ambitions over the past 12 months is clear, and there's a bright future ahead," said Ravi Mayuram, cto at Couchbase. "Ideally we'll now begin to see enterprises putting into practice projects and ideas that weren't previously considered possible. For this to become reality, organizations need to learn the lessons of the last two years and address the challenges they face, or a large proportion of that 46% increase in investment may be wasted, too. IT teams need support from across the business, together with the resources they need, and the right skills and technology to succeed. From embracing the cloud, to making the best use of data, enterprises that can make use of new technologies will be best placed to thrive."

Lessons Learned

The past two years have had a transformative impact on IT teams.

95% of respondents have implemented or investigated digital transformation opportunities that would not have been realistic at the end of 2019 — from hybrid working (nearly 47%) to moving to the cloud (46%), replacing legacy technology and processes (42%), changing the way the business operates (36%) and creating new business offerings (35%).

Other findings included:
 
■ 99% of enterprises say they learned lessons from the pandemic: including the importance of supporting remote and hybrid working (45%); the need for continuous investment and research in digital transformation technologies (41%); and how to better engage the wider business in digital transformation strategy (34%).

■ Investment priorities are shifting compared to 2019: While security is still the top priority for enterprises, and hybrid working received an understandable boost, modernizing existing technology has fallen as a priority, while adopting new technologies has grown — suggesting enterprises recognize they need completely new, modern tools in order to face the future.

■ Ways of working have changed: 88% of respondents say their digital transformation goals have fundamentally changed over the last two years; 95% have accelerated their application modernization strategies; 90% have changed the way they budget for digital transformation; and 93% say digital transformation projects over the last two years represent permanent changes to the way their business's way of operating or working.

■ End users are the focus: 88% of respondents said their digital transformation projects had been driven more by changes in user behavior than by creating new business opportunities.

Digital transformation ... needs to be the responsibility of, and driven by, the whole C-suite, rather than left solely in IT's hands

"This is an exciting time for the IT industry. We are entering a period of extreme creativity, as organizations shift from digital transformation driven by reacting to outside events, such as the pandemic or competitors' progress, to a more proactive approach driven by ideas from within the business," continued Mayuram. "For this new creativity to work, it needs to be driven from the top. Digital transformation shouldn't only be aligned to strategic goals. As a transformative business asset it needs to be the responsibility of, and driven by, the whole C-suite, rather than left solely in IT's hands. If businesses can do this and put the lessons they learned from the last two years into practice, then the future looks very bright indeed."

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Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

Image
Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

Image
Broadcom

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...

Today, organizations are generating and processing more data than ever before. From training AI models to running complex analytics, massive datasets have become the backbone of innovation. However, as businesses embrace the cloud for its scalability and flexibility, a new challenge arises: managing the soaring costs of storing and processing this data ...