A new global study by research and advisory firm IDC, sponsored by Rocket Software, shows that IT modernization has become a top priority for nearly two-thirds of enterprise executives.
Over the next two years, organizations expect to dedicate between 25 percent and 30 percent of their IT budgets to modernization initiatives. The findings, published in the report IT Modernization Maturity Assessment Prepares Enterprises for AI-Fueled Digital Business Success, are based on a survey of 822 IT decision-makers across nine countries and multiple industries.
While investment momentum is strong, many enterprises are still grappling with major challenges. Cybersecurity emerges as the most significant obstacle, cited by 51 percent of respondents. Data quality and integration issues follow closely at 43 percent, with training and upskilling staff identified as a barrier by 39 percent.
The top objectives driving modernization efforts include improving operational efficiency—named by 31.5 percent of respondents—alongside accelerating innovation and enhancing customer satisfaction. Yet, only those organizations with mature, comprehensive strategies that integrate infrastructure, data, security, and workforce development are realizing meaningful gains—achieving up to twice the performance improvements of their less mature peers.
The study highlights several trends that define the modernization landscape. Forty-four percent of organizations aim to deploy AI-ready tools and platforms, while among the most advanced organizations, 82 percent are already building infrastructure to support high-performance AI models. Looking ahead to 2025, cybersecurity and resiliency are set to become the top investment priorities for 57 percent of enterprises. Meanwhile, data quality and governance continue to be foundational, with 80 percent of modernization leaders actively improving data quality and cataloging assets.
Workforce development remains a critical concern, as half of the surveyed enterprises plan to grow their IT teams—particularly in roles related to AI, cloud, and cybersecurity. Additionally, 26 percent of organizations are modernizing mainframe systems to enhance integration and optimize workloads.
Michael Curry, president of Data Modernization at Rocket Software, noted that achieving real transformation requires more than just spending—it demands a strategic roadmap that embeds security, governance, and skills development into every phase. Mary Johnston Turner, IDC Research vice president, emphasized that modernization maturity is not just about adopting the latest technology, but about the ability to adapt, scale, and consistently deliver measurable business value despite ongoing challenges.
The report underscores that while digital transformation spending is increasing, only organizations that align technology investments with strategy, governance, and talent development are positioned to unlock the full benefits of AI and next-generation infrastructure.
