New Global Rackspace Technology Survey Findings Reveal COVID-19 Pandemic Has Been the Ultimate Digital Transformation Test
29 July 2021 - 1:05AM
Rackspace Technology® (NASDAQ: RXT), a leading end-to-end
multicloud technology solutions company, today announced the
results of a global survey revealing that 2020 drove a large-scale
push for application modernization. As organizations scrambled to
support fully distributed workforces and securely integrate new
cloud-native data platforms and collaboration apps into already
complex ecosystems, many cranked their existing application
modernization efforts into overdrive.
According to the survey, The State of Application Modernization,
71% of respondents say at least one out of four applications are
undergoing active modernization, and 24% say more than half of all
their applications are underdoing modernization. Most organizations
have already paid a price for dragging their feet, over half of
respondents say delaying application modernization has resulted in
failures to meet compliance requirements (56%) and/or to scale
critical services when required (51%).
“The results paint a clear and consistent picture,” said Jeff
DeVerter, Chief Technology Evangelist at Rackspace Technology.
“Organizations of all sizes and across all industries have firmly
bought into digital transformation and are actively pursuing
strategies of continuous application modernization. In fact, many
have already experienced direct consequences from moving too slowly
– which may explain why nine out of ten organizations say their
appreciation for the business value of applications has
increased.”
The global survey included 1400+ respondents in IT and non-IT
business units, from companies with $300M annual earnings and
above, including both decision makers and application users.
The State of Digital Transformation
Most respondents described their digital transformation journey
as actively “in-progress” (65%) and “at a similar place to their
peers” (57%). Just over half said they have “a system in place to
coordinate cross-functional modernization activities,” with
“digital initiatives extending beyond a single business unit”
(53%). Public sector respondents were more likely to describe their
digital transformation as “basic” or lagging.
On average, organizations now host 38% of all workloads on
public cloud, surpassing private cloud (35%) and on-premises data
centers or colocation (27%). This breakdown was remarkably
consistent across both business size and industry vertical.
Application Modernization Priorities
Government and manufacturing organizations were more likely to
focus on modernizing enterprise software, while retail businesses
were more likely to prioritize customer-facing applications and
digital content management systems.
When asked what prompts modernizing applications, over half of
all organizations (54%) singled out improved customer satisfaction,
with nearly as many (47%) also citing increased employee efficiency
and satisfaction. Motivations for replacing legacy applications
with new solutions followed a similar pattern, with improved
customer experience (CX) leading as a common driver (58%), followed
by process optimization (52%) and cost optimization (46%).
The two key themes to application modernization success that
surfaced repeatedly were the need to navigate complexity and the
need to minimize disruptions and risk.
Consequences of Delaying Modernization
Survey results suggest that the perceived risks of lagging
behind competitors are another factor driving organizations to
transform their legacy systems. Over half said that delaying
application modernizations had resulted, at some point, in failing
to meet new regulations (56%) and/or to scale up to meet new
demands (51%).
When asked about the top barriers inhibiting technological
change at their organizations, respondents pointed to the fear of
impacting CX (28%), the entrenchment of legacy IT systems (26%),
and the need to work within budget constraints (24%). The most
frequently flagged consideration for planning an application
modernization project was security (34%).
“From an IT perspective, 2020 may be remembered as the year that
application modernization morphed from a corporate buzzword into
becoming a central element of institutional survival,” added
DeVerter.
To download the full report, please visit
www.rackspace.com/solve/application-modernization.
Survey Methodology Commissioned by Rackspace
Technology and conducted by Coleman Parkers Research between March
and May 2021, the survey is based on the responses of 1,420 IT
decision-makers across manufacturing, digital native/technology,
financial services, retail, government/public sector, and
healthcare sectors in the Americas, Europe, Asia and the Middle
East. The survey questions covered customer experience, application
modernization and future plans.
About Rackspace Technology Rackspace Technology
is a leading end-to-end multicloud technology services company. we
can design, build and operate our customers’ cloud environments
across all major technology platforms, irrespective of technology
stack or deployment model. We partner with our customers at every
stage of their cloud journey, enabling them to modernize
applications, build new products and adopt innovative
technologies.
Contact:
PR ContactNatalie SilvaRackspace Technology
Corporate Communicationspublicrelations@rackspace.com
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