Aligning security improvements with system upgrades remains difficult. Close to seven in ten technology leaders rank data protection as their biggest modernization hurdle. Many rely on AI-based monitoring, stricter access controls, and stronger data governance frameworks to manage risk. However, confidence in these safeguards is limited. Fewer than one-third feel highly certain about passing upcoming regulatory audits. While 78 percent believe they can detect insider threats, only about a quarter express complete confidence in doing so.
Hybrid IT environments add further strain. Just over half of respondents report difficulty integrating cloud platforms with on-premises infrastructure. Poor data quality emerges as the biggest obstacle to managing workloads effectively across these mixed systems. Secure data movement challenges affect half of those surveyed, while 52 percent cite access control issues and 46 percent point to inconsistent governance. Rising storage costs also weigh on 45 percent, slowing modernization and increasing operational risk.
Workforce shortages compound these challenges. Nearly 48 percent of organizations continue to depend on legacy systems for critical operations, yet only 35 percent of IT leaders believe their teams have the necessary expertise to manage them effectively. Additionally, 52 percent struggle to recruit professionals skilled in older technologies, underscoring the need for reskilling to prevent operational vulnerabilities.
AI remains a strategic priority, particularly in areas such as fraud detection, process optimization, and customer experience. Still, infrastructure readiness lags behind ambition. Only one-quarter of leaders feel fully confident their systems can support AI workloads. Meanwhile, 66 percent identify data accessibility as the most significant factor shaping future modernization plans.
Looking ahead, organizations are prioritizing stronger data protection, closing infrastructure gaps to support AI, and improving data availability. Progress increasingly depends on integrated systems that securely connect applications and databases across hybrid environments. The findings are based on a survey conducted with 276 IT directors and vice presidents from companies with more than 1,000 employees across the United States, the United Kingdom, France, and Germany during October 2025.
