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Dive overview:
- According to a Rackspace Technology survey released Tuesday, four in five executives say modernizing legacy apps and data is a hindrance to potential AI benefits. The company conducted a survey of 1,420 of his IT leaders.
- Limited resources, lack of culture of change, and integration challenges are the top three obstacles to modernization, according to survey respondents. Other issues include lack of a clear roadmap and communication gaps between stakeholders.
- While businesses cite cost and security as the two main obstacles to modernizing their apps and data, they also see reduced costs and increased security as two key benefits of modernization: “Many organizations are catching on. It shows that we are addicted to 22,” Chief Jeff Deverter said. Rackspace Technology technology his evangelist said in a release.
Dive Insight:
Vendors have spent months building generative AI into every part of their enterprise toolkits. However, to maximize the effectiveness of these solutions, the basic foundations of enterprise technology still need to be addressed.
The CRM category is arguably one of the most business-critical applications for enterprises and has been subject to competition from vendors with generative AI capabilities. His two leading providers in this space, Microsoft and Salesforce, have both announced that they will be adding generative AI capabilities to their products.
According to Rackspace, ERP, CRM and HR platforms are listed by survey respondents as the top apps in need of an upgrade.
According to an EY report, most employees feel the pace of AI adoption in the workplace is slowing. Part of the delay in implementation is due to the outdated computing infrastructure that underpins these critical tools.
“If you are running legacy data centers without advanced virtualization or cloud-like models, adopting new technologies such as next-generation AI and digital twins will only be slow and costly. ‘ said Matt Barrington. , EY America’s emerging technology leader, previously told CIO Dive.
But another key factor in the slow pace of modernization stems from how leadership and oversight of major IT projects is structured.
According to Rackspace, modernization is largely the responsibility of the IT department or members of the executive team. Only one in four respondents said their company relies on cross-functional teams to deliver projects.
