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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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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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In MEAN TIME TO INSIGHT Episode 24, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network observability tool sprawl ... 

In cloud-native systems, scaling is often as simple as moving a slider. For on-premise databases, the stakes are different. Over-provisioning hardware is expensive. Under-provisioning leads to performance bottlenecks that are difficult to fix once the equipment is in the rack ...

When most people think about cybersecurity, they picture firewalls, encryption, and access controls — technical tools designed to protect systems and data. But beneath the technology lies a deeper set of principles about trust, decision-making, and resilience ... The best leaders don't eliminate risk. They manage it intelligently. And in many ways, cybersecurity offers a surprisingly useful playbook for doing exactly that ...

Many organizations assumed their infrastructure strategy was settled. It had been implemented, optimized and built into long-term plans. Recent changes in technology and vendor consolidation are forcing a second look. Cloud outages and licensing changes have exposed how much dependency exists on a small number of platforms. As a result, organizations are reevaluating whether those decisions still hold up under current conditions ...

Edge AI is strategically embedded in core IT and infrastructure spending across industries, according to the 2026 Edge AI Survey from ZEDEDA. The research shows that 83% of C-suite and IT executive respondents say edge AI is important to their core business strategy ...

As AI adoption accelerates, operational complexity — not model intelligence — is becoming the primary barrier to reliable AI at scale, according to the State of AI Engineering 2026 from Datadog ... The report highlights a compounding complexity challenge as AI systems scale ... Around 5% of AI model requests fail in production, with nearly 60% of those failures caused by capacity limits ...

For years, production operations teams have treated alert fatigue as a quality-of-life problem: something that makes on-call rotations miserable but isn't considered a direct contributor to outages. That framing doesn't capture how these systems fail, and we now have data to show why. More importantly, it's now clear alert fatigue is a symptom of a deeper issue: production systems have outgrown the current operational approaches ...

I was on a customer call last fall when an enterprise architect said something I haven't been able to shake. Her team had just spent four months trying to swap one AI vendor for another. The original plan said three weeks. "We didn't switch vendors," she told me. "We rebuilt half our integrations and discovered what we'd actually been depending on." Most enterprise leaders don't expect that to be the experience ...

Ask any senior SRE or platform engineer what keeps them up at night, and the answer probably isn't the monitoring tool — it's the data feeding it. The proliferation of APM, observability, and AIOps platforms has created a telemetry sprawl problem that most teams manage reactively rather than architect proactively. Metrics are going to one platform. Traces routed somewhere else. Logs duplicated across multiple backends because nobody wants to be caught without them when something breaks. Every redundant stream costs money ...

80% of respondents agree that the IT role is shifting from operators to orchestrators, according to the 2026 IT Trends Report: The Human Side of Autonomous IT from SolarWinds ...