The Ultimate Guide to IT Modernization in 2025

How can businesses remain relevant and modern going into 2025? What IT modernization trends are emerging and on the rise? A recent TierPoint survey asked 400 IT leaders about their IT complexities, challenges, and goals for IT modernization for the next 12-24  months.

What we found was clear: 99% of leaders acknowledge the importance of emerging technologies and strategies associated with IT modernization and have plans to implement one or more of them in the next year or two. We’ve provided a summary of the Technology and IT Modernization report below.

What Is IT Modernization?

IT modernization involves upgrading IT infrastructure to improve business capabilities, enhance services, and address evolving end-user demands. The respondents we surveyed associate words like “innovate,” “enable,” “improve,” and “more” with IT modernization projects. Upgrades often include three key components: prioritization, motivation, and improvement. For example, businesses may be motivated to improve their security based on breaches reported in the news, which means they prioritize improvements to cybersecurity tools.

Top IT Modernization Priorities Among Technology Leaders

Among technology leaders surveyed, some IT modernization priorities are more prominent than others, including implementing enhanced cybersecurity measures, improving data management practices, upgrading hardware and infrastructure, and migrating to cloud services.

Enhanced Cybersecurity Measures

Topping the list, 53% of organizations surveyed are prioritizing enhanced cybersecurity measures to build resilience against evolving threats. Cybersecurity vulnerabilities can stem from a few sources, including outdated systems and software, team members who have not been trained on the latest cybersecurity threats, software supply chain vulnerabilities, and more. 

Improved Data Management Practices

Coming in second, 48% of organizations are looking to improve their data management practices. Data is being produced and retained at ever-growing rates, coming from both internal and external data sources. The need to organize and manage these complex data ecosystems effectively has now become a critical priority. Modern data management requires storage that not only handles vast amounts of data efficiently, but also supports quick access, data protection, and scalability to adapt to future growth.

Upgraded Hardware and Infrastructure

The third-biggest priority for organizations is upgrading hardware and infrastructure, with 45% of respondents listing it as one of their top IT modernization priorities for 2024. Making these upgrades can better support the first two goals, making it easier to improve cybersecurity tools and effectively manage data. Upgraded systems can also provide greater performance and resiliency to an organization looking to innovate beyond their current capabilities.

Migration to Cloud Services

In fourth place, 44% of respondents are prioritizing a migration to cloud-based services. This corresponds with a broader trend of cloud adoption. According to Colorlib’s Cloud Computing Statistics, 94% of companies globally use cloud software. Building on the cloud gives businesses more leverage to grow and modernize.

9 Strategies that Accelerate IT Modernization

Emerging technologies and strategies are not just of interest to a few niche companies. Our survey found that 99% of IT decision-makers plan to adopt or invest in emerging technologies or strategies over the next 12-24 months. Here are nine of the most popular digital transformation and IT modernization strategies they are planning on implementing.

Artificial Intelligence (AI) & Machine Learning (ML)

Artificial intelligence and machine learning (AI/ML) are more than trendy terms: these technologies continue to play an important role in digital transformation strategies for key decision-makers. AI/ML resources can help businesses automate processes, including cybersecurity measures such as threat detection and monitoring. They can also support Internet of Things (IoT) devices, help businesses form more precise insights, and reduce the amount of manual work required of team members.

Out of those surveyed, 63% of respondents say they plan to adopt AI/ML technologies and strategies in the next year or two. For these organizations to maintain trust, comply with regulatory requirements, and ensure responsible use of data, incorporating data privacy and governance into AI/ML strategies is crucial.

Cloud Computing

Cloud computing is another major focus for organizations, with 49% of respondents saying it’s a top strategy they want to adopt. Moving from a legacy on-premises data center to a modernized data center or to Azure, AWS, or Google Cloud can make business processes more flexible and scalable. Shifting from a capital expenditure (CapEx) to an operating expenses (OpEx) model can often be more cost-effective, allowing businesses to only pay for the resources they use. Cloud-based services and tools also provide more opportunities for greater innovation.

High-Performance Computing

41% of respondents are setting their sights on high-performance computing, which is necessary to process large datasets and perform complex calculations—requirements often associated with AI/ML resources. Businesses may consider the switch from using CPUs to GPUs, which can handle more complex computational tasks more easily. In these cases, modern high-density colocation with advanced power and cooling optimizes high-performance computing, enabling businesses to scale efficiently and sustainably for AI/ML workloads.

Hybrid Cloud

Hybrid cloud combines private cloud environments with public cloud resources so organizations can enjoy the best of both worlds: specified security and configuration settings found in private cloud and flexibility afforded by public cloud. 38% of respondents are focused on hybrid cloud as an upcoming strategy in their IT modernization journey.

DevOps

DevOps units are formed by combining software development and operations teams together. This can speed up the software delivery process and improve code quality. While forming this streamlined team can take some upfront investment, the iterative development process and automation enabled by DevOps teams can significantly save on resources and reduce errors. Building a DevOps culture is a major focus for 37% of our respondents.

DevSecOps

DevSecOps teams build on DevOps teams and go one step further, adding security specialists into the mix. These teams integrate security at the core of the development process and automate testing to catch security vulnerabilities early. DevSecOps teams are a priority for 36% of respondents.

Edge Computing

With edge computing, data is processed closer to the source of the data. This results in better performance and lower latency. Edge computing can be especially beneficial for IoT devices that require real-time feedback, such as smart sensors and autonomous vehicles. 33% of respondents have cited edge computing as an adoption priority.

Internet of Things (IoT)

Internet of Things (IoT) devices work in tandem with edge computing to collect and analyze data almost instantly. This can look like smart cities connecting devices and systems in intelligent urban environments, sensors in factories collecting instantaneous information about key parts of equipment, or connected devices in healthcare settings that monitor patients’ vital signs in real time. IoT devices are a major focus for 31% of our respondents.

Containers

Containers can support many IT modernization projects and are an essential part of managing applications in the cloud. Applications and dependencies can be packaged into a container for easy portability, deployment, and management. Applications can also be broken down into smaller services using a microservices architecture. Orchestration tools like Kubernetes manage and deploy containers at scale in a cloud environment. About 21% of respondents say containers are a top technology they want to adopt in the next 12-24 months.

Benefits of IT Modernization

Businesses are focused on these technologies and strategies because IT modernization comes with many different benefits, including increased productivity, cost savings, better scalability and security, and improved business continuity.

Improved Efficiency & Productivity

Modernization often involves adding new tools that can help with automation and integration, streamlining workflows and removing inefficiencies. This means teams can operate with greater productivity and will have time for more strategic work. Automated systems are also less prone to human error.

Cost Savings

While there are initial costs associated with modernization projects, businesses can enjoy lower operational costs overall and cost savings from optimized IT resources. Newer systems are also generally less expensive to maintain, from both a time and resource standpoint.

Better Scalability

Modern infrastructure is much more scalable and flexible compared to legacy systems. It can scale up or down based on demand, adapt more easily to changing business needs, and enhance overall performance. Additionally, this infrastructure allows for faster speed to market, enabling businesses to respond quickly to new opportunities without being tied to fixed on-premises setups.

Enhanced Security

IT systems that are modernized can have built-in security features, as well as greater redundancies, that can protect against cyber threats better than on-premises infrastructure. These systems can incorporate threat intelligence and real-time response and recovery capabilities, allowing businesses to proactively address vulnerabilities. Some industries and business types may require modernized projects as part of their regulatory standards because modernizing can reduce the risk of data breaches and other security incidents related to outdated systems.

Business Continuity

Enhanced security contributes to better business continuity, the assurance that the business will continue to operate during disasters or other disruptions. Modernized systems are more well-equipped to handle disasters and can ensure business continuity with disaster recovery tools, redundancies, and failover to backup systems in case of failure.

Legacy System Integration

Legacy systems and modern technologies don’t have to be separate. In fact, modernization can help integrate legacy systems with newer technologies or migrate data from legacy systems to newer platforms.

Challenges in IT Modernization

If IT modernization projects were beneficial with no pitfalls, every business would take them on. Some challenges organizations should keep in mind while pursuing IT modernization include integrating legacy systems, contending with budget constraints, overcoming and established organizational culture, and handling cybersecurity threats.

Legacy Systems and Integration

Depending on how long your legacy systems have been in place, modernizing and integrating with new technologies can be time-consuming and expensive. To navigate this complexity, a thorough understanding of all interdependencies is crucial for effective data migration—as well as for addressing the challenges with ongoing management. Initial migration, data migration, and management efforts can all be challenging.

Budgetary Constraints

Modernization projects are not just costly due to integrations, but also because of upfront investments in things like hardware, software, networking, and personnel. Even if businesses move from a CapEx to an OpEx model, those ongoing costs need to be justified and worth the regular expense.

Change Management & Organizational Culture

Change of any kind in an organization can be tough for some team members to handle, but this can get even more complicated when employees worry that technological changes will result in job loss or major disruptions to their routines. Making employees part of the modernization process, training where possible, and finding some early adopters to be cheerleaders of the new initiatives can all help ease the transition.

Cybersecurity Threats

If not done properly, modernizing systems can leave businesses open to vulnerabilities. Organizations should have solid security practices in place to decrease the risk of data breaches and ensure regulatory compliance is maintained.

Best Practices for Supporting New Technologies

Strong support infrastructure is important for any business looking to incorporate new technologies as part of their IT modernization projects. Here are a few best practices to keep in mind.

Upgrade Software & Hardware Systems

It’s hard to support new technologies on old systems. Consider making upgrades to hardware and software so you can meet new performance requirements and protect new technologies from vulnerabilities. During the upgrade process, it’s also important to confirm that the existing software and hardware systems will be compatible with new technologies. Testing new technologies is essential to ensure that they work seamlessly within the upgraded environment and to identify and address any potential issues before full implementation.

Invest in Skills Training for Current Employees

When employees feel comfortable with new technologies, they’re more likely to adopt and embrace them as a new part of their business processes. Training programs can help employees acquire necessary skills for new technologies, and reskilling can help team members transition to new roles or responsibilities.

Choose a Managed Service Provider to Support In-House Teams

Two-thirds of our respondents reported significant challenges related to IT staffing. This means that even if businesses have the resources to invest in skills training, they may not have enough staff to train. In these cases, augmenting an in-house team with a managed service provider (MSP) can be the perfect fit. An MSP not only helps businesses address IT challenges, but also brings in industry experts who share best practices tailored to the organization’s unique environment. This expertise and strategic support enable businesses to effectively reach their modernization objectives.

Plan Your IT Modernization Strategy for 2025

It’s not too late to plan for next year. Discover best practices and top trends for how to modernize your IT infrastructure and drive business growth in 2025 and beyond with the new TierPoint industry report.