Race to the Top: New Study Reveals Majority of Business Leaders Looking to App Modernization in 2023 to Drive Transformation Efforts

Rhea-AI Summary

An overwhelming majority of business leaders are focusing on application modernization to enhance competitive advantage, according to a new survey commissioned by Insight Enterprises (NASDAQ:NSIT). The survey indicates that 87% of respondents see modernizing critical applications as crucial. Major challenges include reliance on multiple public cloud providers (91%) and the impacts of technical debt (86%). Despite these hurdles, organizations report significant progress in digital transformation, with 85% using AI to drive insights. The findings point to a critical need for companies to adapt their strategies in maintaining competitive advantage in a volatile market.

Positive

• 87% of business leaders prioritize application modernization for competitive advantage.
• 35% of organizations' data is now driven by edge workloads, showing a shift towards data decentralization.
• 85% of organizations utilize AI for business insights, indicating a strong trend toward digital integration.

Negative

• 91% of respondents face challenges with multicloud strategy.
• 86% of organizations report being impacted by technical debt, affecting innovation and service levels.
• 51% experienced cybersecurity breaches, with many taking over a week to recover.

Insight-commissioned survey documents the current state of digital-first initiatives.

CHANDLER, Ariz.--(BUSINESS WIRE)-- An overwhelming majority of business leaders are shifting focus to application modernization to gain an edge in their markets, according to a new survey by IDG company Foundry that was commissioned by Insight Enterprises (NASDAQ:NSIT), a Fortune 500 solutions integrator helping clients accelerate their digital journey.

87% of respondents to the new survey cited modernizing critical applications as a key success driver — with driving competitive advantage as the number one reason for app modernization.

The survey, “The Path to Digital Transformation: Where Leaders Stand in 2023,” comes at a time where both optimization and transformation are the strongest undercurrents at companies across every industry. The study examined the digital transformation goals, challenges and achievements of large U.S. enterprises over the last year. Respondents included 400 senior IT and business decision makers employed at companies with 1,500 or more employees across a wide range of industries.

The survey also revealed major challenges encountered by organizations at this juncture in their digital transformation journey — underscoring the renewed focus on building a stronger groundwork application environments. Among the findings:

• 91% rely on multiple public cloud providers for different workloads, but respondents continue to grapple with multicloud strategy. In fact, 20% also plan to repatriate select public cloud workloads to an on-premises model over the next 12 months. In a related finding, 54% of data at respondents’ organizations, on average, now resides in a public or hybrid cloud.
• 86% report their organization has been impacted by technical debt over the past 12 months; the top areas affected are the ability to innovate (43%), meet SLAs (41%) and avoid downtime (37%).
• 72% state that data volumes are growing faster than their ability to manage them, leading 64% to rank implementation of a data governance program to improve data management as their top data-related objective this year. This links directly to respondents’ view that data governance is the #1 barrier to achieving business value from data.
• 51% report having been impacted by a cybersecurity breach over the past 12 months, with 49% requiring one week or more to recover. Just 20% resolved the issue in one day and 31% in multiple days but less than a week.

Nevertheless, respondents indicated significant digital transformation progress in several areas — signaling an opportunity for stragglers to shift their strategies in the coming year. For example:

• 35% of the average organization’s data estate is now driven by edge workloads, with 29% of respondents reporting that at least 50% of data volumes now reside on the edge. 64% expect that to increase in the next 12 months.
• 85% indicate their organization is using Artificial Intelligence (AI) to some degree to drive business insights and/or efficiencies, although only 36% report having optimized their use of AI and Machine Learning (ML) enterprisewide with mature processes and capabilities in place.

“Digital transformation is vital for optimizing business operations, advancing initiatives, driving opportunity and combating competitive threats, but it is a massive undertaking that challenges the skills and resources of even the largest organizations,” said Stan Lequin, president, Solutions, Insight North America. “As a solutions integrator that deals with these projects on a daily basis, our team of 8,000+ sales and service delivery professionals and 5,000 engineers, architects and consultants has helped hundreds of enterprises overcome the hurdles and lay the groundwork for achieving the competitive advantage that is critical in today’s volatile market environment.”

Complete survey results are at solutions.insight.com/StateofInnovation. For more information on Insight, visit solutions.insight.com or insight.com, or call 1.800.INSIGHT.

About Insight

Insight Enterprises, Inc. is a Fortune 500 solutions integrator with 13,000+ teammates worldwide helping organizations accelerate their digital journey to modernize their business and maximize the value of technology. We enable secure, end-to-end transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 33+ years of broad IT expertise. Rated as a Forbes World’s Best Employer and a Great Place to Work, we amplify our solutions and services with global scale, local expertise and a world-class ecommerce experience, realizing the digital ambitions of our clients at every opportunity. Discover more at insight.com. NSIT-M

View source version on businesswire.com: https://www.businesswire.com/news/home/20230216005081/en/

Heather Wagner

Insight Enterprises

Tel. 480.333.3000

Email: heather.wagner@insight.com

Jim Capalbo

Jill Schmidt PR

Tel. 847.946.2991

Email: jim@jillschmidtpr.com

Source: Insight Enterprises Inc.

FAQ

What does the recent survey by Insight Enterprises reveal about application modernization?

The survey shows that 87% of business leaders consider application modernization essential for competitive advantage.

How many organizations are facing challenges with multicloud strategies according to Insight Enterprises?

91% of respondents rely on multiple public cloud providers, facing challenges in their multicloud strategies.

What percentage of organizations reported being affected by technical debt?

86% of organizations reported impacts from technical debt over the past year.

How is artificial intelligence being utilized according to the survey?

85% of organizations are using AI to derive business insights, although only 36% have optimized its use.

What cybersecurity concerns were highlighted in the survey by Insight Enterprises?

51% of respondents experienced cybersecurity breaches in the past year, with recovery times often exceeding a week.