According to a CoreSite report, most organizations prefer hybrid IT strategies that combine private and public cloud with colocation data center deployments. The increase in hybrid adoption reflects the need to control IT spending while maintaining scalability and connectivity. CIOs are seeking optimal environments for specific workloads, with variable compute needs benefiting from public cloud provisioning and less fluctuating workloads running more efficiently on-prem. Colocation facilities offer a middle ground for high-density workloads, and many CIOs are deploying generative AI tools in off-prem data centers. Cost and cloud connectivity are driving colocation adoption, but multicloud interoperability remains a challenge. Additionally, there is a capacity crunch in major markets, leading to increased rental fees for colocation space.
Legacy tech upgrades cost the average business $2.9 million in 2023, with over two-thirds of businesses investing more than $2 million on maintaining and upgrading legacy systems. Technical debt, including outdated code, negatively impacts the data stack of over 3 in 5 IT leaders. Legacy systems also require significant time and resources for maintenance and patching, impacting productivity and the bottom line. Additionally, legacy tech poses challenges for implementing emerging technologies, with up to 25% of legacy systems unable to support AI tools and workloads.
Why do we care?
By focusing on cost-efficient, scalable solutions and addressing the pain points of multicloud interoperability and technical debt, providers can better serve their clients and position themselves as strategic partners in their clients’ digital transformation journeys.
Your major deliverable should be the comprehensive modernization roadmaps to help businesses transition from legacy systems to more agile, scalable solutions. This includes cloud migration strategies, infrastructure upgrades, and data management improvements.
Emphasize the long-term return on investment (ROI) of upgrading legacy systems. Highlight how modern systems can reduce maintenance costs, improve productivity, and enable the adoption of new technologies.
Measure it all, and then measure that impact ongoing.