News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
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A recent report from Ensono highlights that aging IT systems are pushing companies to modernize, as they face rising maintenance costs and challenges with interoperability. The survey, which included 500 IT decision-makers from organizations with annual revenues exceeding $500 million, found that nearly half of the respondents experienced legacy maintenance costs that exceeded their expectations in the past year. Brian Klingbeil, Chief Strategy Officer at Ensono, noted that while CIOs recognize the need for modernization, issues such as workforce availability and fluctuating budgets are hindering progress. As enterprises increasingly adopt generative and agentic artificial intelligence, the urgency to upgrade outdated systems grows. Niel Nickolaisen, an adjunct research advisor for the consulting firm IDC, emphasized that maintaining legacy infrastructure can slow down agility and create friction in operations. The survey indicates that many organizations are still operating in hybrid environments, where legacy systems continue to play a crucial role, making the evaluation of modernization efforts essential.

Why do we care?

Legacy IT is costing enterprises more than they expected — nearly half say maintenance blew past their budgets last year. And here’s the kicker: those same systems are slowing them down just as they try to adopt AI. CIOs know they need modernization, but with workforce shortages and shaky budgets, projects stall.

That’s where providers come in. Customers don’t need “rip and replace,” they need help bridging the gap — integrating legacy with modern, staging migrations, and making hybrid work. The lesson here? AI may be the flashy driver, but the real money is in helping enterprises escape the drag of legacy while still keeping the lights on.

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