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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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An overwhelming majority of IT leaders (95%) believe the upcoming wave of AI-powered digital transformation is set to be the most impactful and intensive seen thus far, according to The Science of Productivity: AI, Adoption, And Employee Experience, a new report from Nexthink ...

Overall outage frequency and the general level of reported severity continue to decline, according to the Outage Analysis 2025 from Uptime Institute. However, cyber security incidents are on the rise and often have severe, lasting impacts ...

In March, New Relic published the State of Observability for Media and Entertainment Report to share insights, data, and analysis into the adoption and business value of observability across the media and entertainment industry. Here are six key takeaways from the report ...

Regardless of their scale, business decisions often take time, effort, and a lot of back-and-forth discussion to reach any sort of actionable conclusion ... Any means of streamlining this process and getting from complex problems to optimal solutions more efficiently and reliably is key. How can organizations optimize their decision-making to save time and reduce excess effort from those involved? ...

As enterprises accelerate their cloud adoption strategies, CIOs are routinely exceeding their cloud budgets — a concern that's about to face additional pressure from an unexpected direction: uncertainty over semiconductor tariffs. The CIO Cloud Trends Survey & Report from Azul reveals the extent continued cloud investment despite cost overruns, and how organizations are attempting to bring spending under control ...

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According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...

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 ...

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